 ·to _,  the delhi co-operative soci~ties bill, 1970 no be/as 1ntroduced'iri,lok sabh~_71 page (iv), 11ne 7,~  , for "penalities" read "penalties" --2 page 6, line 28,-after "until" omit " " , , -3 page ~,-in the marginal heading -to c1~use 20~-for itmetrbert• ~ "me'llrbers" 4 page 9, line 19,-m ",proft tit ~ "profi'ts lt 5 page 15, line 2,-for "socities" read "societies" 6 page 16, line 10,-for it thereon" re ad ii thereinll -7 page 16, line 19,-for "himblt  !:!!2 "him" 8 page 16, line 31,-!!?! fsociety' ~ '''society'',' 9 page 18, line 8,· omit· "and" -10 page 21, line 6,-for "vochers" -read itvouchers" ,  11 page 21, line 14,-~ "require" 12 page 21, line 37, -" ill it persons ii read "person" -13 page 21, line 41,-after "shal 1" omit -" " , 14 page 21, line 43,-!e! "person" ~ "parsons" ~5 page 22, in the marginal heading to clause 57,-for 11 coe t" r(? ad "c os ts" -16 page 22, line 40,-after "heard" insert " ,it , 17 page 23, line 45,-"6 ')" !2!: "69" read -18 page 25, line 11,-after "ins urance" insert "corpor a tion" 19 page 26, line 14,-after "of" insert" a" --20 page 29, in the m<trginal he'adtng to clause 77,-ill "for" recld "or" 21 page 29, line 39,-for "of the" ~ "of thisl\ ?2 page 30, line 36,-!it er ii as" insert ii to"  , 23 page 3'), line 43,-after "of" omit " "i , 24 pas;e 30, line 46,-for liof" re9d "or" --25 page 32, ,line 19,-ii " , after "order" omit -26 page 32, lin~ 39, for the marginal citation 117 of 1925" re ad "boj'1 7 of 1925" 27 page 33, line 37,-for "proceedings" read "proceedingl1 -' -28 page 34,- , for the existihg marginal heading to clause 97,-read "rules!' 29 correct line numberg on pagee 21and 24 new delhi; march 20, 1970 phalguna 29, 1891 (sak!3')  arrangement of clauses clauses chapl'er i preliminary1 short title, extent and commencement 2 definitions  chapter ii rzgistration of co-opbrativr socd:tms3 registrar 4 societies which may be registered 5 restrictions on registration 6 restrictions on holding of shares 7 applicati<m for registration 8 power of the registrar to decide certain questions 9 registration 10 registration certificate 11 amendment of bye-laws of a co-operative society 12 when amendments of bye-laws come into force 13 change of name 14 change of liability   15 amalgamation, transfer of assets and uabilities and division of co-operative societies 16 power to direct amalgamation, division and reor,anisation in public interest, etc 17 registrar to prepare scheme of amalgamation of co-operative bank in certain cases 18 liability of a co-ctperative bank to the deposit insurance corporation 19 cancellation of registration certiftcates of co-operatlve societies in certain cases  chapter iii members 01' co-oplrative 80cietiis and their illgh'i'b aim lia8nrrds20 persons who may become members 21 nominal or assaciate members 22 member not to exercise rights till due payment made 23 votes of members  clausbs24 manner of exercising vote 25 restriction on transfer of shares or interest :26  transfer of interest on death of members 27 liability of 'past member and estate of deceased member  chapter iv management of co-operative societies28 final authotity in a co-operative society 29 annual general meeting 30 special general meeting 31 election and nomination of members of committees 32 supersession of committee 33 securing possession of recor'ds, etc 34 acts 01 co-operative societies not to -be invalidated by certain defects  chapter v privileges or co-operative socie'l'les35 co-operative societies to be bodies corporate 36 first charge of co-operative society on certain assets 37 charge on immovable property of members borrowing loans from certain societies 38 charge and set-off in respect of share or contribution or iriterest of members 39 share or contribution or interest not liable to attachment 40 register of members 41 admissibility of copy of entry as evidence 42 exemption from compulsory registration of instruments 43 exemption from certain taxes, fees and duties 44 deduction from salary to meet co-operati've society's claim in certain eases 45 other forms of state aid to co'-operative societies  chapl'er vi properties and funds or co-operative societies46 funds not to be divided by way of profit ", 47 contribution to charitable purpose :48 contribution to co-operative education fund 49 investment <:if funds so restrictions on loans 51 restrictions on borrowings 52 restrictions on other transactions with non-memben  chapter vii audit, inquiby, inspection and surcharge, " 53 audit 54 55 inspection of societies inquiry by registrar 56 inspection of books of indebted societies 57 costs of inquiry 58 recovery of costs 59 surcharge  chapter viii se'l"l'lement of displ1tj!360 disputes which may be referred to arbitration 61 reference of disputes to arbitration 62 power of financing bank to proceed  chapter ix winding up of co-opdlative societies63 winding up of c<t-operative societies 64 winding up of co-operative banks at the direction ot'the reserve bank 65 reimbursement to the deposit insurance corporation by the liquidators 66 uquidator 67 powers of liquidator 68 priority of contributions assessed by liquidator, 69 power of registrar to cancel registration of a co-operative society  chaprer x execution of awards, decrees, orders and decisions70 enforcement of charge 71 execution of orders, etc 72 execution of orders <if liquidator 73 attachment before award 74 registrar or person empowered by him to be civil court for certain purposes 75 recovery of sums due to government  chapter xi76 appeals 77 no appeal or revision in certain casee·  clauus78 delhi co-operative tribunal 79 review of orders of tribunal 80 revision 81 interlocutory orders  chapter xii offences and penalities82 offences 83 cognizance of offence 84 address of societies 85 copy of act, rules and bye-laws, etc, to be open to inspection 86 prohibition against the use of the word "co-operative" 87 power to exempt societies from conditions as to registration 88 power to exempt ca-operative societies from provisions of the act 89 liquidator to be public servant 90 notice necessary in suits 91 companies act not to apply 92 saving of existing societies 93 bar of jurisdiction of courts 94 powers of civil court 95 indemnity 96 qualifications, remunerations and other conditions of service of employees of c~operative societies 97 rules 98 repeal and savings  billto c07l80zidate and amend the law relating to co-oper~tive societies in the union f4e'mitory of delhi bill it enacted by parliament in the twenty-first year of the republic of india as follows:- chapter i preliminary5 1 (1) this act may be called the delhi co-operative societies act, short 1970 ut~, (2) it extends to the whole of the union territory of delhi extent and commencement (3) it shall come into force on such date as the lleutenant-governor may, by notification in the delhi gazette, appoint z in this aft, unless the context otherwise requires,-10 deftnitiona (a) '''bye-laws'' means the registered bye-laws for the tbne being in force, and includes registered amendments of such bye-laws; (b) "committee" means the governing body of a co-operative society, by whatever name called, to which the management of the i, a1fa1~ of the society is entrusted; (c) "co-operative bank" shall have the same meaning as is assigned to it in the deposit insurance corporation act, 1961; 47 of 1961 (d) "co-operative society" means a society registered or deemed to be registered under this act; (e) "oo-operative society with limited liability" means a co- s operative society the liability of wlwse members is limited by its bye-laws to the amount, if any, unpaid on the shares individually held by them or to such amount as they may individually undertake to contribute to the assets of the society, in the event of its being wound up; 10 (f) "co-operative society with unlimited liability" means a cooperative society the liability of whose members is unlimited for the purpose of contributing jointly and severally to any deficiency in the assets of the society in the event of its being wound up; (g) "deposit insurance corpo'l'ation" means the deposit insur- is ance corporation established under section 3 of the deposit insurance corporation act, 1961; 47 of 1961 (h) "federal society" means a society-(a) not less than five members of which are themselves societies; and 20 (b) in which the voting rights are sa regulated that the members which are societies have not less than four-fifth of the total number of votes in the general meeting of such society; (i) "financing bank" means a co-operative society, the objects of which include the creation of funds to' be lent to other co-operative 25 societies; (;) "lieutenant-governor" means the administrator of the union territory of delhi appointed by the president under article 239 of the constitution; (k) "member" means a person joining in the application for the 30 registration of a co-operative society and a person admitted to mem-  bership after such registration in accordance with this act, the rules and the bye-laws, and includes a nominal and an associate member and the central government when it subscribes to the share capital of a society; 35 (1) lcofficer" means the president, vice-president, chairman, vicechairman, managing director, secretary, manager, member of committee, treasurer, liquidator, administrator and includes any other person empowered under the rules or the bye-laws to give directions in regard to the business of a co-operative society; 40 (m) "prescribed" means prescribed by rules; (71) "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 exettising all or any of the powers of the registrar; 4s (0) "reserve bank" means the reserve bank of india constituted under the reserve bank of india act, 1934 ~ ot 1934 (p) "rules" me8ds the rules made ~der this act; '(q) "tribunal" means the delhi co-operative tribunal constituted under section 78  chapter ii registration of co-operative societies3 (1) the lieutenant-governor may appoint a penon to be tile be-regia gistrar of co-operative societies for the union territory of delhi and may trar ,appoint other persolll to assist him (2) the lieutenant-governor may, by general or special order, confer 10 on any person appointed to assist the registrar all or any of the powers of the registrar under this act (3) every person appointed to assist the registrar shall exercise the powers canferred on him under sub-section (2) subject to the general guidance, superintendence and control of the registrar is (4) the lieutenant-governor may, by notification in the delhi gaze,te and subject to such conditions as he may think fit to impose, confer all  or any of the powers of the registrar under this act on any federal  ~iety, or an officer of such federal society; and every such federal society or officer on whom the powers of the registrar are so conferred ~o shall exercise such powers under the general guidance, superintendence and control of the registrar societies which may be registered 4 (1) subject to the provisions hereinafter contained, a society which has as its object the promotion of the economic interests of its members in accordance with c<1-operative principles, or a society established with 2s 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 is likely to be econo-'mically unsound or the registration of which may have an adverse effect on development of co-operative movement: 30 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 (2) 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 3s with limited liability 1iedrie tioftll on real-trauon 5 no society other than a federal society shall be registered under this act unless it consists of at least ten persons (each of such pel1jons being a member of different family), who are quali1ied to be members under this act and who reside in the area of operation of the society ezplanation-for the purposes of this section the expression "mem-40 ber of a family" means wife, husband, father, mother, grand-father, grand-mother  step-father, step-mother, son, un-married daughter, un·married step-daughter, step-son, grand-son, un-married grand-daughter, unmarried sister, un-married half-sister, brother, half-brother and wife of 4sbrother or half-brother restrjctions on hold ing of shares 6 no member other than the central government or a co-operative society shall hold more than such portion of the share-capital ot a c0-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 5 7 (1) for the purposes of registration, an application shall be made to the registrar (2) the application shall be signed,-appli cation for registration (a) in the case of a society of which no'member is a eo-operative society, by at least ten persons qualified in accordance with the re- 10 quirements of section 5; and (b) in the case of a society of which a member is a eo-operative society, by a duly authorised person on behalf'o'f every such society and where all the members of the society are not co-operative societies, by ten other members, or when there are less than ten other 1$ members, by all of them 8 where any question arises whether for the purpose 'o'f this act a person resides in the area of operation of a society or not, or whether a society is of same type as another society or '0'1 different type, the question shall be decided by the registrar whose decision shall be final 3q 9 (1) if the registrar is satisfied-power o'i the registrar to decide certain questions re,is tration (a) that the application complies with the provisions of this act and the rules; (b) that the objects of the proposed ljo'ciety are in accordance with section 4; 2s (c) that the proposed bye-laws are not contrary to the provisions of this act and the rules; and (d) that the proposed society has reasonable chances of success, the registrar may register the society and its bye-laws (2) when the registrar refuses to register a society, he shall com- 30 municate the order of refusal, together with the reasons therefor, to such of the applicants as may be prescribed (3) the application for registration shall be disposed of by the registrar within a period of two months from the date of receipt thereof by him 35 regis tration oertific'ate 10 where a society is registered under this act, the registrar shall issue a certificate of registration signed by him, which shall be codclusive evidence that the co-operative society therein mentioned if duly registered under this act 11 (1) no amendment of any bye-laws of a co-operative society sha1140 be valid unless such amendment has been registered under this act (2) every proposal for such amendment shall be forwarded to the registrar and if the registrar is satisfied that the proposed amendment-amendment ot by-laws ot a co_ operative aoc1etl" (a) is not contrary to the provisions of this act and the rules; (b) does not con1lict with co-operative principles; and (c) will promote the economic interests of the members of the society, he may register the amendment s (3) 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 , (4) where the registrar refuses to register an amendment of the bye- ' 10 laws of a co-operative society, he shall communicate the order of refusal together with the reasons therefor, to the society in the manner prescribed when amend· 12 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 15 force on the day on which it is registered men~ of bye-law come into force chanae of name 13 (1) a co-operative society may, by 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 legaj proceedings pending may be continued by or against the society under 20 its new n a m e  ·   "~ (2) where 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  , chan, of uabilfty 25 14 (1) subject to the provisions of this act and the rules, a co-operativesociety may, by an amendment of its bye-laws, change the form or extent of its liability (2) 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 30 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 (s) any member or creditor who does not exercise his option within 35 the period specified in sub-section (2) shall be deemed to have assented to the change (4) an amendment of a bye-law of a co-operative society changing the form or extent of its lfabtlity shall not be registered or take effect until either-40 (a) the assent thereto of all members and creditors has been obtained; or (b) all claims of members and creditors who exercise the option referred to in sub-s~lon (1) wtthi!l the period specified therein have been met in full 15 (1) a co·operative society may, with the previous approval of the registrar and 'by a resolution passed by a two-thirds majqj;'i~y of the members present and voting at a general meeting of the society,,",,":,, (4) transfer its assets and 1iabiuti~s in ~bo~e or in pvt 19 '-!11 other co-operative society; s (b) divide itself into two or more c{)oooperative sqcieti,cr~· amalgamation, transfer of useta and lla· biutjea and division of co-operative locietie • (2) any two or more co-operative societies may, with the previous approval of the registrar and by a resolution passed by a two-thirda iji\~orit}' of the m~mbers p~~sent and vc;>ting at a '~e~~~aj~~, of ~~ch '$~h soci,ety, amalgamate themselves and fon:n a new coo:o~fra~ve i~ ~~~ty' (3) the resolution of a co-operative society under sub-section (l) or sub-section (2) shall contain all particulars of the transfer, division or • ~ , r , !     i ,1'  amalgamation, as the case may be: ,"  ( ','''''''' provided that in the case of a co·operatlve bank the registrar shall i, not accord approval to any such resolution without the previous sanction in writing of the reserve bank (4) when a co-operative society has passed any such resolution it shall give notice thereof in writing to all its members and cre<iito" add notwithstanding any bye-laws or conttact to the contrary, any member 20 or creditor shall, during the period of one month of the date of servt~ of the notice upon him, have the opti<m of withdrawing hit· shares, de-p,osus or loan,s, as the case m"ly be (s) any member or creditor who does not exercise hjs opijnll witnjl the pe,riod specified in sub-section (4) shall be d~etqe4 to have ~~ 2s to the proposals contained in the resolution (6) a resolution passed by a co-operative society under this section shall not take effect until, either-  , ,  , '' " ' , (a) the assent thereto of all the members a~cr,~ as ~ obtained; or ,- " 30 (b) all claims of memb~rs and creditors; wh9,e'f~rc~,~~ ~~ op~<?~ referred to in 5ub-sectiqn (4) within the p~rir~, sp~~ill~~,t~~r,t:jp l)avj! heen met in full  (7) where a re!lolution passed by a co-operative society under this section involves the transfer of any assets and habi1fti~ the resohdkm 3s sball notwlt~statlding anything ('ont~ip~$i inapy iflw f91' th~ ~~ ~nlf in rpl:'ce, be a sufflci~l'\t convevancp tp v~st th~, as~~t$ iidsi, hab~m1~ ijl, the transferee without any further assurance  1~ (1) wh~r~ the re~strar is satf~fled t'bat it is e~~!'!ntiilj fn tp'e p'~b--1~ it)ter~8~ or in the in~er~st of the cq:-pp'err~ive tnpv~n'i~nt or fqt, tn  40 nurposl" of securing thp proner matln~ement nf anv co-operat1y~i 1l!9,c1~n­that two or mnte co·i'i'opr::ttivp foci  tipo; sh011lrl he amalf:!"imated or anv co-operative sncfptv  :\0\01110 h" dh7idp~ t" fonn two 1'1'1" mote ro-(itle'rative !'ine;etip"l i'it ~j,nuld he renrl1a'i'1;secl thpn !'\ntwithstanr'litl <f l:ntvth!,,~ conbl~npd in !i;ectfon 15 but subiect to thf! nrovi!;fnns of th;~ y'et:ion the'" power to direct amalpmation, cuv1alon and reo orpni-ation in public intend, ete 'retrlstt~, mav bv order drl'lvjrtp 10  n,, nmalmlmll~ot'l d,yisfrm oli teort;!8nisation of thes  co-onprativf' ~i'l('ieti('<; into ii !!inlfl, spcle~ or, into ikicif'tips with cinch' ci'ln!!t'tuti"" pro!",,tv tights itlt  r-stl'l and ruthartties and such liabilities, duties and obligations as may be specified in the order: ";0 :  : l--j  provided that no such order of amalgamation, division or reorganisation in respect of a co-operatlve bank shall be made without the previoui 5 sanction in writing of tile reserve bank (2) no order shall be made under this section, unless-(a) a copy of the proposed order has been sent in draft to the co-operative society or each of the co-operative societies concerned; and 10 is (b) the registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestion and objections which may be received by him within such period (not being less than two months from the date on which a copy of the order aforesaid is received by the society or societies, aa the case may be), as the registrar may fix in that behalf, either from tlle'sqciety or from any of the societies concerhed 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 inc!-20 dental, consequential and supplemental provlsions as may, in the opidion of the reptrar, be necessary to give effect to the amalgamation, division or reorganisation, as the case may be (~ evely ntember or creditor of each of the co-operative societies to be amalgamated, divided or reorganised, who has objected to the scheme 2~cjl' amalgmlation, division or reorganisation, within the period specified, shin be entitled to receive, on the issue of the order of amalgamation, dlvilidn or reorganisation, his share or interest, if he be a member, arid the amount in satisfaction of his dues, if he be a creditor (:6) on the iuue of an order uhder sub-section (1), the provisions of 3o,a'qb4iectiods (2), (3) and (4) of section 19 shall apply to the eo-operative ~tetles so amalgamated, divided or reorganised as· if the amalgamation, dtv1t6oddr reorganisation had been made under section 15 \ ,'j • 17 when an or<ier of moratorium has been made by the central g:ovcnment uncler sub-section (2) of section 45 of the banking reeuiation 10 ol 1he 3s act, 1949, in respect of a co-operative bank, the registrar, with the previous approval of the reserve bank in writing, may, during the period of moratorium, prepare a scheme-(a) for the reorganisation of the co-operative bank; or rqiltrat to prepare eheme ofamal,-mation of co-ope rative bank in (b) for the amalgamation ctf the co-operative bank with any 40 oiher co-operative bank eer~ c  - , of 1181 18 notwtthatanding anything contained in sections 15 and 16 or any other provision of this act, where a co-operative bank, being an insured bank within the meaning of the deposi~ insurance corporation act, 1961, is amalgamated or reorganised arid' tli~ ~postt insurance corporation 45 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 such insured liabuiti or' a co-operatiw bank to the depolit idiui4ance corporation l;a1fi1e~'atttalnih«t~d, or the new co-qpm-aflve bank formed' after such amalgajiiation;-or as" the cui;' may be, the lriihred brnk or ttarilferee bank shall be under an obligation to repay to 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 (1) where the whole of the assets and liabilities of a co-operative society are transferred to another co-operative society in accordance with s the provisions of section 15 or section 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 a corporate body cancellation ot re,istration certificate of co-ope rative socm!ties in certain cae • (2) where two or more co-operative societies are amalgamated into 10 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 is (3) where a co-operative society divides itself into two or more c0-operative societies 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 20 dissolved and shall cease to exist as a corporate body (4) the amalgamation and splitting of co-operative societies shall not in any manner whatsoever affect any right or obligation of the resulting co-operative society or societies or render defective any legal proceedings by or against the co-operative society or societies, and any legal pro- 25 ceedings that might have been continued or commenced by or against the co-operative society or societies, as the case may be, before the anlalgamation or splitting, may be continued or commenced by or against the resulting co-operative society or societies (5) where a co-operative society has not commenced business within 30 a reasonable time of its regilltration 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 objects one or more of the objeetl specified in section 4 and that its registration ought in the interests of the general public be cancelled, he shall make an order cancewng the regis- 3s tration of a co-operative society a co-operative society shall, from the date of such order of cancellation, be deemed to be dissolved and shall cease to exist as a corporate body  chapter iiimembers of co-operative societies and their rights and liabijitii:s 40 20 (1) no person shall be admitted as member of a co-operative s0-ciety except the following, namely:-persons who may become member (4) an individual competent to contract under seetion 11 of the indian contract act, 1872; (b) any other co-operative society; (c) the central government; and (d) such class or classes of persons or association of pel'lons u may be notified by the lieutenant-governor in this behalf: provided that the provisions of clause (a) shall not apply to an individual seeking admission to a society exclusively formed for the benefit of students of a school or college (2) notwithstanding anything contained in sub-section (1), the lieu-5 tenant-governor may, having regard to the fact that the interest of any pe1'ioj1 or class of persons conflicts or is likely to conflict with the objects of any society or class of societies, by general or special order, published in the delhi gazette, declare that any person or class of persons engaged in or carrying on any profession, business or employment shall be disqua-10 lliled from being admitted, or for continuing, as members or shall be eligible for membership only to a limited extent of any specified society or class of societies, so long as such person is or such persons are engaged in or carrying on that profession, business or employment, as the case may be is 21 (1) notwithstanding anything contained in clause (d) of section 20, a co-operative society m'ay admit any person as a nominal or associate member in accordance with its bye-laws nominal or ulociate members (2) a nominal or associate member shall not be entitled to any share in any form whatsoever, in the assets or profit of the co-operative 20 society (3) save as provided in this section, a nominal or associate member shall have such privileges and rights of a member and be subject to such liabilities of a member, as may be specified in the bye-laws of the society z2 no member of a co-operative society shall exercise the rights of a 2s member unless he has made such payments to the society in respect of membership or has acquired such interest in the society as may be specified in the bye-laws member not to exercae rlghta till due payment made ii every member of a co-operative society shall have one vote in the vot of aftairs of the society: memberl 30 provided that-(4) in the case of an equality of votes, the chairman shall have a second or casting vote; (b) a nominal or associate member shall not have the right of vote; 35 (c) where the central government is a member of the co-operative society, each person nominated by the central government on the committee shall have one vote m (1) every member of a co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy manner of exerelida, vote 40 (2) notwithstanding anything contained in sub-section (1), a cooperative jociety which is a member of another co-operative society, may, subject to the rules, appoint one of its members to vote on its behalf in the affairs of that other society ii the transfer of the share dr interest of a member in the capitli of  eo-operauve society shall be subject to such conditidds as to madtil1im holding as are specified in section 6 berrietion on trlldlfer of ahare or interest it (1) on the death of a member a co-operative ~ty may t~ the share dr interest of the deceased member to the person nonrlnat~ 'in s reeordance with the rules made in this behalf, or, if there is no perigh '&0 transfer otinterelt on death of member • ~inated, to such person as may appear to the committee to 1h! th& nett or legal representative of the deceased member, or pay to ·rich 'fioiiiidee, heir or legal representative, as the case may be, a suril ~ seming the value of such member's share or interest as ascertained m 10 eoordanee with the rules or bye-laws: provided tbat-(i) in the case of a co-operative society with unlimited liability, such nominee~ heir or legal representative, as the cue may be, may require payment by the society of the value of the share or id'terelt is of the deceased member ascertained as aforesaid; (ii) in the case of a co-operative society wi'th limited uabutty, the society shall transfer the share or interest of the deceased :inemf>et to such nominee, heir or legal representative, as the case may be, b'emg qualified in accordance with the rules and bye-laws for membership 20 of the society, or on his application within one month of the death of the deceased member to any person specified in the ilpplication who is so qualified; -(iii) no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as th~ cast)' rilay 2$ be (2) a co-operative society shall, subject to the provisions of section 36 and unless within six months of the death of member prevented by an order of a competent court, pay to such nominee, heir or legal representitive, as the case may be, all other moneys due to th'e deel!8ad'ftleij\\ber 30 from the society (3) all transfers and payments made by a co-operative societyia ac, cordance with the provisions of this section shall be valid· and effectual a~ any de1hartd made upon the society by any' other peisbn 21 (1) subject to the provisions of sub-section (2), the liability of a 3' put' 'm~rriber or of the estate of a deceased member of a c!cjioperattv8 society for the debts of the society as they existed,-(a) in the case of a past member, on the date on which he ceased to be a member; liability of lout member and estate of decea- member (b) in the case of a deceased member, on the date of his death, 40 shall continue for a period of two years from such date (2)- where a co-operative society is ordered to be wound up uilder aectiott·88, the liability of a· past mem~r or of theest&te of a deceased member who ceased to be a member or died within two years immediately pteceding the date of the aider of witidttig up, shl1l eontbtue'tfnt1!' the  , erttlre liquidatibh proceedin~ are corilplerted, butsueli liabllity stutlt  tetid onl~ to the debts of the society as they existed oh the· ctm ot btl ceasing to be a member or death, as the c8l!li· m,· be; management of co-opera'11ve societies  (1) ~he final authority in a co-operative society shall vest in the ~ body of members: final authority in a cooperative society s ~videdtbsj where the bye-laws of a co-operative society provide for  ~tiiution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such bye-laws the "ijl811er body shall exercise such powers of the general body as may be ~ or as may be specified in the bye-laws of the society 10 (3) notwithstanding anything contained in 8ub-section (2) of aeotion u -each dele;ate shall have one' vote in the affairs of the society annual ,eneral meetln  zt (1) every co-operative society shall, within a period of six months next after the date fixed for making-up its accounts for the year under the rules for the time being in force, call a general meeting of its mem-[5 hera for the purpose of-(4) apptqval of the programme of the activities of the ioclety prepared by the committee for the ensuing year; (b) election, if any, of the members of the committee other than nominated members subject to the provisions of section 31; 20 (e) consideration of the audit report and the annual report; (d) disposal of the net proflts; and (e) con,sideration of any other matter which may be brought forward in accordance, with the bye-laws: pro~id~ that the registrar may, by genera] or special order, extend 2, ~f ~~' for hold~g such meeting for a further period not exceeding th ' _,,+1_;   , , ,'- ' , t~~~ provided further that, if in the opinion of the rpm!lltrrt' no such emn-!ioats necessary, or such meetin~ is not called by the society within the extended period, if any, granted by him, the registrar or any pereon 30 authorised by him i may call such meetin~ in the manner pt'escllibelol, and that meetin~ shall be deemed to be a genera] meeting duly cajjed bv the  society; and the registrar may order that the expenditure fncurred td eal-- lin~ rueh a meeting shall be paid out of the funds of the iioclety or bv ~ ~ or persona who in the opinion of the reltistt'ar were respon-35 sible for the refusal or failure to convene the general meeting (2) at every annual general meeting (1f 8 co-operative soc'ietv, the' eommittee shall lay before the society a statement showin~ the detaf1s ,  ijle ~oajul if any, given to any of the members of the commlttt"e during tq precedlng year 40  (i) "'e committee of a co-operative society mav, at any time, call a speclaj general meetln~ of the society and shall call such meetinjl with· h' one month after the reeeipt of a requtsit'on in writing from tj,e reclj-trar or from such number of mlemberl or a proportion of thf' total number of members, as may be' prnvfded tn the bye-iawa  (2) if a special general meeting of a co-operative society is not called in accordance with the requisition referred to in sub-section (1), the registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the committee, and the registrar may order that expenditure s incurred in calling such a meeting shall be paid out of the funds of the society or by any such person or persons who, in the opinion of the registrar, were responsible for the refusal or failure to convene the special ~eneral meeting election and nomi_ nation of members of committee • 31 (1) the superintendence, direction and control of the prepllratioa 10 of the electoral rolls for, and the conduct of, elections of the members of the committees of such co· operative societies or class of eo-operative societies as the lieutenantgovernor may, by general or special order, notify, shall be vested in such returning offi-cers as may be appointed by him in this behalf is (2) the vote at such elections shall be by secret ballot (3) the term of office of the elected members of the committee shan be such, not exceeding three co-operative years including the co-operative year of their election, as may be specified in the bye-laws of the society: provided that the elected members shall continue to hold offtce till 20 their successors are elected or nominated under the provisions of the act or the rules or bye-laws (4) no person shall be eligible to be elected as a member of the committee of a co-operative society unless he is a shareholder of that co-operative society, or after he has held such office in the society during two con- 25 secutive terms, whether full or part explanation-(i) where any person holding office of a member of the committee at the time of commencement of this act is again elected to that office after such commencement, he shall for the purpose of this subsection be deemed to have held office for one term before such election 30 (ii) a member who has ceased to hold any office on the committee continuously for three co-operative years, shall again be eligible for eleetion as a member of that committee (5) notwithstanding anything contained in this act, a person shall be disqualified for appointment as, or for being, a member of a committee,- 3s (a) if he is a member of a committee of an·other society of the same type; or (b) if he is a member of thf' committee" of three or more societies of a different type or different types: provided that nothing contained in this 1mb-section shall be deemed 40 to disqualify a person for election as, or for being, a delegate of a society (6) on the committee of such co-operative societies or class of co-operative societies as may be prescribed, two seats shah be reserved, one for the members who belot'g to the scheduled castes and one for economical-iv weaker sections of the members who as land-owners or tenants or as 45 both do not hold more than the prescribed area of agricultural land or fulfil the prescribed conditions, and if no such persons are elected the committee shall co-opt the required number of members from am~t the persons entitled to such representation explan"~ion-r~or the purpose of this sub-section "scheduled castes" 5 meall any of the scheduled castes specified in part i of the schedule to tne constitution (scheduled castes) (umon territories) order, 1951 (7) notwithstanding anything contained in this act, any dispute relating to election of members of any committees of a co-operative society notihed under sub-section (1) shall be referred to the lieutenant-gover-10 nol" whose decision thereon shall be final (8) the lieutenant-governor may make rules generally to provide ior or to regulate matters in respect of elections of members of the cominittees (9) notwithstanding anything contained in sub-sections (1) to (8),-is (4) where the central government has subscribed to the share capitaj of a co-operative society, the central government or any person auti1~rised by it in this behalf shall have the right to nominate en the committee such number of persons not exceeding three or onethird of the total number of members thereof, whichever is lesa, u the central government may determine; 20 2s (b) where the industrial finance corporation, the state finance corporation or any other financing institution notified in this behalf by the central government has provided finance to a co-operative society, the industrial finance corporation, state finance corporation or other financing institution, as the case may be, shall have the right to nominate one person on the committee (10) a person nominated under sub-section (9) shall hold oftice during the pleasure of the central government or the corporation or other anancing institution, as the case may be 30 3z (1) if, in the opinion of the registrar, the committee of any c:<)-~ operative society persistently makes default or is negligent in the per- formance of the duties imposed on it by this act or the rulel or the byei";' laws, or commdts any act which is prejudicial to the interest of the society, or its members, the registrar may, after giving the committee an oppor-3s tunity to state its objections, if any, by order in writing, remove the committee; and (11) order fresh election of the committee, or (b) appoint one or more adminijtrato~s who need not be member of the society, to manage the affairs of the society for a period not exceeding one year 40 specified in the order, which period may, at the discretion of the registrar be extended from time to time, so, however, that the aggregate period does not exceed three years (2) 'i'be registrar may fix any remuneration for the administrator, as 45 he may think fit such remuneration shall be paid out of the funds of the loclety • (3) the' 'admililstrator shall,subject to the control of the registrar and to such instructions as he may from time to time give, have power to exercise all ql' any of the functions of the committee or of any officer of the society and take all such actions as may be required in the interest of the society '' s (4) the administtator shall, at the expiry of his term of office,arrange for the conetitutioft~of a new committee in accordance with the bye-laws of the society (5) before taking any action under sub-section (1) in respect of a cooperative bciciety, the registrar shall consult the financing institution to 10 which it is indebted (6) notwithstanding anything oo'iltained in this act, the registrar shall in the case 'of a co-operativebank, if so required in writirigby the 'reserve' bank in the public interest or for preventing the affairs oube co,operative bank being ~onducted in a manner detrimental to the interests of the, is depositors or for securing the proper management of a co-operative bank pass an order for the supersession of the committee of that co-operative bank and appointment ·of an administrator therefor for such period or periods not exceeding five years in the aggregate, as may from time to time be specified by the reserve bank 20 securing :>ossession )':f -ecorda, 33 (1) (a) if the record, registers or the books of accounts of a co-opel1ative society are likely to be tampered with or destroyed and the fund and property of a society are likely to be misappropriated or misapplied; or ~tc (b) if the committee of a co-operative society is reconstituted at a 2s general meeting of the society or the committee of a society is removed by the registrar under section 32 or if the society is ol:'dered to be wound up under section 63 and the outgoing members of the committee refuse to hand over charge of tha records and property of the so-ciety to those having or entitled to receive such charge, 30 the registrar may apply to the magistrate, within whose jurisdiction ,the society functions, for securing the records and property of the societyj (2) on receipt' of an application under sub-section (i) , the ma" gistrate may, by a warrant, authorise any police officer, not below the rank of sub-inspector to enter and search any place where the re- 35 cords and the property are kept or are believed to be kept and to seize such records and property; arid the records and property 80 seized shall be handed over to the new committee or administrator of the society or the liquidator, as the case maybe m no act of a co-operative society or of any committee or of any 40 otbcer shall be deemed to be'invalid by reason only of the ex1stenee of any defect in procedure or in the constitution of the society or  of the committee or in the appointment or election of an officer or on the ground that such oftlcer was disqualified for his appointment cts of i-operave socie-:es not be in-ilidatecl rtain fecta  chapter v privileges of co-operative socitiisco-ope rative societies to be bodies corporate 35 the registration of a co-operative society shall render it a body corporate by the name under which it is registered having perpetual 5 ijuccession and a c'c1mmon seal, and with power to hold property, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted first char,e of co-opera tive society on certain asset • • (1) notwithstanding anything contained in any law for the time bein~ in force, but subject to any prior claim of the government 10 in respect of land revenue or any money recoverable as land revenue, any debt or outstandlng demand owing to a co-operative society by any member or past member or deceased member shall be a first charlle upon the crops and other amcultural ofodlll"p ('attle form,1' fo'!' cattle, ajtrlcult1l1'81 or fndu!iitrh,' imoleme"bf nr ma('hh,,t'v nlw m9tp,",rlc; for 15 manufacture and anv ftnished orndllct!ll manufaf"ttl'!'m from rueh raw materials, belonllinl! to such member llbst memher n, ~ormfng part of the estate of the deceased member, as the case may be (2) no person shall transfer any oroperty which is subject to a  charge under sub-section (1) except with the previous permission in 20 writing of the co-operative society which holds the charge (") notwithstanding anything contained in any law for the time beinr in force, any transfer of property made in contraventipn of the provisions of sub-flection (2) shall be void (4) the charge created under sub-section (1) shall be availahle as 18 of 1883 as a~ainst any claim of the government amsinl! from a loan i!fanted under 12 of 1884 the land improvement loans act 1883 or the acmculturtsts' loans act, 1884, after the grant of the loan by the soc:lety  37 notwithrbmdinj:(' anything contained in this act or in any other ;:a~o_ law for the time being in force,-vable 30 3s property of member borrowing loan from certain locietlel, (i) any person who makes an apolication to a rocfetv of whfch he is a member for a loan shall, if he owns any land or ha" interest in anv land as ii tenant make a declaratfon in the p1'elcrfbm fonn which shan state that the almlfcant therebv creates a cha1'lle on such land or interest snecifierl in the declaration for the payment of the amonnt of the loan whfch the society may make to the member in purruanee of the application and for an future advances, if any, required by him which the society may make to him as such member sub1ect to such maximum as may be determined by the society together with intere!lt on such amount of the loan and advances; 45 (ii) any per9o'l1 who ha!ll borrowed a loan from a rodety of which he is a member before the date of the' comfn~ into force of this act and who owns any land or has anv interest-tn land as a tenant shall, as soon 8$ possible, make a  dec1aration in the form and to the efl'ect referred to in clause (i); (iii) a declaratfon made under clause (i) or clatue (tf) may be varied at any time by a member with the conrent of the society in favour of which such charge is created; , (w) no member shall alienate the whole or any part of the land or interest therein specified in the declaration made under clause (i) or clause (ii) until the whole amountboitowed by the member together with interest thereon is paid in full: provided that for the purpose of paying in full to the society 5 the whole amount borrowed 'by the member together with interest thereon, the member may, with the previous permission in writing of the society and subject to such conditions as the society may impose, alienate the whole or any part of such land or interest 10 thereon: provided further that standing crops on any such land may be ali~nated with the previous permission of the society: (v) any alienation made in contravention of the provisions of clause (iv) shall be void; (vi) subject to the prior claims of the government in respect is of land revenue or any money recoverable as land revenue, there shall be a first charge in favour of the society on the land or interest specified in the declaration made under clause (i) or clause (ii) for and to the extent of the dues owing by himb on account of the loans and advances; 30 (vii) the record of rights shall also include the particulars of every charge on land or interest created under a declaration under clause (i) or clause (iil notwithstanding anything contained in any law relating to land revenue for the time being in force; (viii) any sum due to a societv in consequence of char~e creat- 25 ed undel' a declaration under clause (i) or clause (ii) shall, on application for its recoverv bein~ made by such society accompanied by a certiflcate signed by the rej!istrar be recoverable by the collector at-cording to the law and under the rules for the time being in force for the recovery of land revenue 30 explanation-for the purposes of this section society shall mean any co~operative society or c1as~ of co-operative societies specifled in this behalf by the lieutenant-governor by a general or special order char •• and set ott in respect di share or contribution or interest of members 38 a co-operative trocietv i'lhall have 11 chrrge upon the share or contribution or interest in the capital and on the deposits of a member 3s or past member ot deceased- member and u",,-)n anv dividend bonus or proftts payable to a member or nast membpr or the estate of a decl'ased member in respect of any deht due from such member or past member or the estate of such deceased member to the society and may i'let-oft anv sum credited or payable to a member or pmt mf'mber or the 40 estate of deceased member in or towards payment of any such debt share or contribu· tion or interelt not liable to attachment 39 subject to the provisions of section 38, the share or contribution or interest of a member or past member or deceased member in the capital of a co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt or lia- 45 bilitv ineurred bv- such member, and a receiver under the provincial insolvency act 1920 shall not be entitled to or have any claim on such ii of 1920 share or 'contribution or interest  40 any register or list of members or shares kept by any eo-ope-jlqiater or rative society shall be prima facie evidence of any of the following memben particulars entered therein:-(a) the date on which any person entered in such register or 5 list became a member; (b) the date on which any such person ceased to be a member admiuibllityof copy of entry al evidence 41 (1) a copy of any entry in a book of a co-operative society regularly kept in the course of its business shall, if certified in uch manner as may be prescribed, be received in any suit or legal pro-ia ceedings as ptima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is admissible (2) no officer of a co-operative society and no officer in whose office 15 the books of a co-operative so'ciety are deposited after uquidation shall, in any legal prqceedings to which the society or the liquidator 111 not a party, be compelled to produce any of the society's books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and account :lo therein recorded, except under order of the court or the arbitrator made for special cause exemption 42 nothing in clauses (b) and (e) of sub-section (1) of section 17 of from 18 of 1908 the indian registration act, 1908 shall apply tocompul-(1) any instrument relating to shares in a co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or 1or,y reg!ftration of instru_ ments 30 (2) any de,benture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far 88 it entitles the holder thereof to the security afforded by a registered instrument whereby the society has mortgaged, conveyed, or otherwise transferred the whole, or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or 35 (3) an endorsement upon or transfer of any debenture ilsued by any such society 43 (1) the central government  y, by notification in the oftlc:iaj gazette, remit the income-tax payable in respect of the profit of an), dass of co-operative societies or the dividends or otber pajllltlllh reeeiv 40 ed by members of any cia of such societies on aceount of pro8ta exemption from certain taxes, tees and duties (2) the ceatral government may, by notift~tion in die 0ildai gat:-ette, remit in reepect of any class of co-operative lodeti __ (a) the stamp duty ehargeable under any law for the time beiq in force in respect of any instrument ex8c1ded by or on bebaif of a 45 eo-operative sodety or by an eiieer or idmilber dlenol aad reiatiac to the business of such society or any dasa of aueb idttnll'jts or in respeet of any award or order made 1ldder thb ad, in c:uea, where, but for such remission the co-operative society, officer or member, 1"""'" uthe euelllily be, would' be liiable to pay'sueh stamp duty; (b) any fee payable under any law for the time being in force relating to the registration of documents or court-fee (3) the central government may, by notifieation, exempt any c1asfi 5 of c:o-operative societies from-(a) land revedur, (b) taxes on agricultural income; and i (e) taxes on sale or purchase of goods; and (d) taxes on profeuiolls, trades, callings and employments 10 deduction 44 (1) notwithstanding anything contained in any law for the time trom l , !iialary to  be ing in force, a member of a co·operative society may execute an agreemept co  men't in favour of the society providing that his emlployer shall be eomoperatwe  :petmt to deduct from the salary or wages payable to him by the employer, 8ociety~!~1  such:iamount as may be specifledin the agreement and to pay the amount is claim m certain so 'deducted to the society in satisfaction of any debt or other demand easel i), tywfng by the member to the 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 society does not intimate that the whole of such debt or demand 20 has been paid, make the deduction in accordance with the agreement and , pay the amount so deducted to the society as if it were a nart of the t~ salary or wajl'es payable on thf> nay as required under the pnyment of wager act 1936 such nayment shall be valid d;sch~t1!e of thp employer _ 40'f 1938 for his liability to pay the amount deducted 25 (3) where a requisition in writinlt from rny societv rel!ic;tered or deemed to be m!jlistered in any recinrocatin't state in resnect of a mf'mber ("if that sociptv, who has executed any such r~reemf>'nt a!! is referred to in !luh-section (1) and who for the time bpi"!! is employed in the uni"n tpr-titorv of delhi is r~~eived bv h;s pmnlover the requisition  hall be ac'tpd 30 upon as if it had been made bv a society in delhi and the nrovlsions of th'r section shall have effect accordinl!ly f::mlanahon-for the purnorf> of thi!! suh-!;ection "recinroeatin(! state" 'mel1ti!l flny- sbte or uninn territory whirh thf> lieutenant-governor may, bv notiflcation in thp delhi gazette deelar  to be a recinrocatinlt state 35 (4) if after the receint of r relluisition mrdp under rub-section (2) ill" liiuh-section (3) the employer i'lt any time fail!! to deduct the amount snecifted in the requisition from the' rl\lllrv or wrl!eo: navablf' ttt the membf>r concerned or maker default i11 remittlnl! the amount denucted to the sortetv the liocietv shall bf> pntitled to recover anv such ammmt from the 40 emnlover 11"1 atteariof land re'\fe'nue and the rmount so due from the emnlover !!hall rank in nnnrttv in re!med of the lilibility of thepmplover  'eona' td that {if the wa~ in arrears '(5) nothinjt contained tn this spetlon shall ilpplv to establishment ~nfferranwav'8dmtntstration ol)f>~"tfnrr any railway ""defined in clause 45 (!o)  'of ~rtt<:le ~ of the constitution   ,11'1-~,' ~! 45 notwithstanding anything contained in any law for the time beina oliter in force, the central government mayforma  ' ,  " ot state (a) subscribe to the share capital of 8 co-operative l8eiety; aid to (b) give l~ 01' make advances to ~o~«ve  8od,u~ eo-opcra_  'tlve /iu 5 (c) guarantee tlte repaymeat of pridoipal and· payment of interest cieties on debentures issued by a co-operative society; - ' •• ~ ,j  (d) guarantee the repayment of share capital of a co-operatlve society and dividends thereon at such rates as may be speei8ed by the central government; 10 (e) i1jiu"8i1tee the repayment of principal and payment of illterest on loans and advances to a co-operative society; aad (f) give financial assistance in any other form, inducltag aubsidies, to any co-operative society  chapter vi properties and funds of co-operativm societibsis 46 no part of the funds of a co-operative society shall be divided by funds y;ay of bonus or <;lividend or otherwise among its members: not to be 'cfivlded provided that after at least one-fourth of the netproftta· in any year,  -y " has been carried to the reserve fund, payments trodlthe remaiddelllof wy,ot 20 such profits and from any profits of past years available for distribution proftt may be m~de to the members to such extent and under such conditions as may be prescribed by the rules or bye-laws 1890 47 any co--opel'ative society may, with the sanction of the\relibtilar,contribu~ after one-fourth of the net profits in any year has been carrledtotbe ,uoq"to 25 reserve fund, contribute an amount not exceecung flve per cent of the  charitable remaining net profits to any purpose, connected with the development of pilrpoh co-operative movejxlent or charitable purpose as defined in section 20 of the charitable endowments act~ 1890 48 a c6-operat1ve society shall out of its net profita in any year -credit  contribu-30 such portion of the profits not exceeding five per cent as mat'be'~ tuln to cribed to the co-operative education fund constituted under the rulei co~oper· tive ~u~ catiod !'und 49 (1) a co-operative society may invest or deposit its fund-investment of fundi (a) in the post office savings ~; ()r ", (b) in any of the securities specified in section 20 of the indian ot 1882 3s trusts act, 1882; or '- _ , i ; '( : (c) in the shares or securities of any other co-operauve 1odety; or (d) with any bank carrying on the business of bankinf approved for this purpose by the r,eg1strar; or 40 (e) :in any other mode permitted by the rulel (2) ~ ¥;1,vestmen~ or deposits d18d~ before the commencern~t ot: this act which would have been valid if this act had been in force arf hereby ratified and confirmed  so (1) a co-operative society shall not make a loan to any person other than a member: retrlction on loam provided that with the general or special sanction of the registrar a ·co-operative societ)' ma)' make loan to another co-operative societ)' (2) notwithstanding anything contained in sub-section (1), a co-opera- 5 tive society ida)' make a loan to a depositor within his deposit on its security l  _  4  ", ,~ __ 1& 5l a c~operative society shall receive deposits and loans only to such extent and under such conditions as may be prescnbed or as may be specifted in the bye-laws 10 retriction on borrowin, 52 save as provided in sections 50 and 51, the transactions of a c~ operative society with any person other than a member shall be· subject to such prohibitions and restrictions, if any, as may be prescribed  chapter viirestric_ tion on other tradi&etiodi with non· member   audit inquiry, inspection and surchallgeis audlt i3 (1) the registrar shall audit or cause to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every co-operative society at least once in each year (2) the audit under sub-section (1) shall include an examination of overdue debts, 1f any, the verification of the cash balance and securities, 20 and a valuation of the assets and liabilities of the society (3) the pel'8on auditing the accounts of a co-operative society shall have free access to the books, accounts, papers, vouchers, stock and other property of such society and shall be allowed to verify its cash balance and securities  2s (4) the directors, managers, administrators and other officers of the tociety shall furnish to the person auditing the accounts pf a co-operative liociety all such informattpn as to its transactions and working as such person may require (5) the registrar or the person authorised by him under sub-section 30 (1)  to audit the accounts of a co-operative society shall have power where neceu&ry-_  ",1  _  'l"'~~ «(i) to summon at the time of his audit any officer, agent, servant or member of the society, past or present, who he has reason to believe can live valuable information in regard to transactions of the society 35 or the management of itsaftairs; and (b) to require the production of any book or document relating to the affairs of, or any cash or securities belonging to, the society by illy officer, agent, servant, or member in possession of such books, documents, cash or securities and in the event of serious irregulari-14cl tiel discovered during audit, to take them into custody (6) u at the time of audit the accounts of a society are not complete, the registrar or the person authorised by him under sub-section (1) to audit, ma, cause the accounts to be written up at the expense of the lociet" (naudit fee if any, due from any co-operative society shall be recoverable in the same manner as is provided in section 75 inspection 01 societies nt illl~~&kar 9f any person autborised by ge,ner~l or spedalor:cier in this behalf by him, may inspect a co-operative society for the pur-5 pose of inspection, the registrar or the person so authorised by him shall at all times have access to au books, accounts, papers vochers, securities, stock and other property of the society and may in the event of"wwu$ irreg\llarities di&covered during inspection take them into custody and shall have power to verify the cash balance of the society 10 and subject to the general or special order of the registrar to call a com-~~ ol~ting, ~d a general meeting every officer or member of the s~~\~, f~sh; such intormauon with rea-rd to the w('rking of the seet,u,the registrar, {lr the person making such inapection may require raqijire, inquiry by registrar 5$ (1) the registrar may of his own motion or on the application of is a majority of the committee or of not le:;s than one-third of the members, hold an inquiry or direct some person authorised by him by order in wr:ting in this behalf to hold an inquiry into the constitution, working and financial condition of a co-operative society (i) the registrar or the person authorised by him under sub-section 20 (1) shall have the following powers, namely:-(a) he shall at all times have, for purpose of examination, free access to the books, accounts, cash and other properties belonging to or,in, the custody, of the society and may summoa any person in pos-_aim or responsible for the custody of any such books, accounts, 25 goc\lmejlta seoudt;ies cash or other properti~s to produce the same, at any plac:e specified by him; (b) he may, notwithstanding any rule or bye-law specifying the perjod 01 notice for a general meeting of the society, reqjlire the oftlcers of the society to call a general meeting at such time and place at 30 the headquarters of the society to consider such matter, as may be directed by hijn; and where the oftlcers of the society refuse or fail to call such a meeting he shall have power to call it himself;  (c), he may swrunan any person who i te8lonably believed by" lum-;to,aaveladyknowledge of, the atlqirs·of the society to appear·be 35 fare ,him at any place at the headquariers of the society or any branch thereof,and·may examine such persons on oath (3) any meeting called under clause (b) of sub-section (2) shall have all the powers of a general meeting called under the bye-laws of the society and its proceedings shall be regulated by such bye-laws 40 (~~ ~;baii"'ar shall, communicate a ,brief aunmary of,the repwtpf t~,ijlq\wy to the society, tbe flnancing institution, if any, to which ~ society is aftuiated, and to the person or authority, if any, at whose instanqe ·t~ ~ry is made ii; (l~ the registrar shall, on the application of a creditor of a co-45 opel'fttive4ociety, inspect or direct some person authorliled by him by order in welting in this behalf to inspect the boob of the society: inspection of book, of indebted locletiel, 3698 ('j) ls-" provided that no stich inspection shall be made unless the appuca1lt-(a) satisfies the registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfac- tion within a reasonable time; and (b) deposits with the registrar such sum as security for the costs s· of proposed inspection as the registrar may require (2) the registrar shall communicate the result of any such inspection to the creditor colt of inquiry 57: where an inquiry is held und'er section 55, or an inspection is made' under section 56, the registrar may apportion the costs,' or such part of 10 the costs, as he may think fit, between the society, the members or creditor demanding an inquiry or inspection, and the officers or former officers and the members or past members of the society: provided that-(a) no order of the apportionment of the costs shall be made is under this section unless the society or the person liable to pay the costs thereunder has had a reasonable opportunity of being heard; (b) the registrar shall state 'in writing under his own ha'nd the ,rounds on which the costs are appottioned recovery of costl 58 any sum awarded by way of costs under section 57 may be re- 20 covered,on application to a magistrate having jurisdiction in the place where the person from whom the money is claimable, actually and voluntarily resides or carries on business, and such, magistrate shall recover the same as if it were a fine imposed by himself burcharle 't (1) if in the course of an audit, inquiry, inspection or the winding 2 up of a co-operative so~iety, i~ is found, that any person, who is ,or was s en~rusted with, th~ organisation or map"agement of such i ~ociety, qr "(ho is or has at any, time '~en an ,?~cer ?r an employee of t,h~ s?,c~etx', ,has made any payment contrary to this act, the rules or the bye-laws or has caused any deficiency in the aaseta of the society by breach' of trust or 3 w1lfulnegligence' or has, misappropriated or fraudulently retained any 0 money or other property belonging to such' society, the registrar may, of his own motion or on the application of the, committee, liquidator or ~y creditor, inquire h:nself or direct any person authorised by him, by an order in writing ill this behalf, to inquire into the conduct of suc~ ,35 person: f " provided that no such inquiry shall be held after the expiry of six years ftom the date of any act or o:nission referred to 'in thi$ sub-sectkm ; ~ (2) where an inquiry is made under sub-section 1(1), the registrar' r' ii' ~y after giving the ~~ concerned an opportunity of ~,helf'd 40 make an order, llequi~ing him to repay or restore the money or properl)r or any part thereof, wit~;inter~t at such ra~'jor to pay contribution and costs or compensation to such extent, as the registrar may consider just and equitable ' '  -  chapter viii settlement of disputes60 (1) notwithstanding anything contained in any law for the time being in force, if any dispute touching the constitution, management or s the business of a co-op ~rative society other than a dispute regarding disciplinary action taken by the 5'ociety or its committee against a paid employee of the society arises-disputes which may be referred to vbi tration, (a) among members, past members and persons claiming through members, past members and deceased members, or 10 (b) between a member, past member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society or liquidator, past or present, or is (c) between the society or its committee and any past committee, any officer agent o'f employee, of any past officer, past agent or past employee or the nominee, hlj!irs or legal repro!sentatives of any dec~ased officer, deceased agent, or deceased employee of the society, or (d) between the society and any other co-operative society, 20 between a society and liquidator of another society or between the ·liquidator of one· society and the liquidator of another society, such disputes shall be referred to the registrar for decision and no court shall have jurisdiction to entertain any suit or other proceedings in respect of such dispute 2s (2) for the purposes of sub-section (1) the following shall be deemed to be disputes touching the constitution, management or the business of a co-operative society, namely:-(a) a claim by the society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a 30 deceased member, whether such debt or demand be admitted or not; (b) a claim by a surety against the principal debtor where the society has recovered from the surety any amount in respect ctf any debt or demand due to it from the principal debtor as a result of the default of the principal debtor whether such debt or demand is ad-3s mitted or not; (c) any dispute arising in connect50n with the election ctf any officer of a society other than a society notified under sub-section (1) of section 31 (3) if any question arises whether a dispute referred to the registrar 40 under this section is or is not a dispute touching the constitution, management or the business of a co-operative society, the decision thereon of the registrar shall be final and shall not be called in question in any court, 61, (1) the registrar may, on receipt of the reference of dispute 4s under section 69,-(a) decide the dispute himself, of ret\erence of diaputes to arbitra tion, (b) transfer it for disposal to any person who has been invested by the lieutenant-governor with powers in that behalf, or (c) refer it for disposal to one arbitrator (2) the registrar may withdraw any reference transferred under clause '(b) of bub-bection (1) or referred under cjause (e) otthat 'sub-,section and deddeit himself or refer the same te another arbitrator for decision (3) the registrar ar any othrr p!rson to whom a dispute is referred for decision under this section may, pending the decision of the dispute, make such interlocutory orders as he may deem necessary in lthe interest of justice power of financing bank to proceed 6z ,(1) if a co~perative society is unable to pay its  deb~to,~ ftnanc- 10 ing bank by reason of its members committing default in the payment of the moneys due by them, the financing bank may direct the committee of such a society to proceed against such members under section 60 and if the committee fails to do so within a period of ninety days from the date of receipt of such direction, the financing bank itself may proceed is against such members in which case the provisions of this act, the rules or the bye-laws shall apply as if all references to the society or its committee in the said provisions were references to the financing bank (2) where a financing bank has obtained a decree or awud against a soetety in respect of moneys due to it fmm the society, the ftnanclng '20 bank may proceed to recover such moneys firstly from the assets df the ~ty and secondly fromthe members;to ·the extent of· uleir bts~dme to the society  chaprer ix winding up of co-operative societieswinding up of cooperative societies 63 (1) if the registrar, after an inquiry has been held under section -55,  or an inspection has been made under section 56, or on rl'eeipt of an application made by not less than three-fourths of the members of a cooperative society, is of opinion that the society ought to be wound up, he may iasue an order directing it to be wound up_ 30 (2) the registrar may of his own motion tnake an order directing 'the winding up of a co-operative society-(a) where it is a condition of the registration of the society that the satiety shall consist of at least ten members and the number of members has been reduced to less than ten or , 35 (b) where the co-operative sodety has not colddlemed·,'wwking or has ceased to function in accordance with coqperative prindples (3)' the registrar may cancel an order for the winding up of a cooperative society at any time, in any case where, in his opinion, the society should continue to exist 40 (4) a copy of such or<,ier shall be communic$ted ,by registered post to the society and to the financing institutions, if any, of which the society is a member (5) notwithstanding anything contained in this section no co-operative bank sballbe wo~nd up except with the prerious sanction in writing of the reserve bank  45 iii n<1twlthstanding anything' to'the contrary contained in this act, !the begi8trar  hallrnake an order for winding up of a co-operative bank, if so required by the reserve bank in the circumstanees mentioned in 47 oll961 section l3d of the deposit insurance corporation act, 1961 5 "j·where a ~ative ·bank being an insured bank withid the mean-47011861 irg w the depoaitldauraaee corporation ad, 1161, ·is 'wouad up, or taken into liquidation, and the deposit insurance corporation hubeeomeliable to the depo'sitors of the insured bank under sub-aection (1) of section f}6 'df'tnat a"t, 'the deposit insurance corporation shu be reimburaed 10 by the liquidator or such other person in the cireumtanees to the extent and·ill the -manner provided in section 21 of the depoait insurance act, 1961 winding up ot co· operative bank at the direction of the relerve bank reimbursement to the deposit insurance corpora tion by the liquida tors  \"l~  -&he 8awwrar ·iau naa4e  'or_ wader "en 83 for uqui-die -  « a c-epentive iodety, the beaistrlu'  y appoint a dator 15 liquidator for the purpole an4 fix his remuneration '{j:)  ·a tiq1li4atorshall, ·on appointment, take into hii custody or under his control all the -property, e1fecti add actionable claims towbioh the society is or appears to be entitled and shall take such steps as he may deem necessary or expedient, to prevent loss or deterioration of, or 2q 'damage to, such property, effects and claims fie may carry c1n the bwdneu of the society so far as may be necessary with the previous allfllll8v111flbt:the "~ (3) where an appeal is preferrc'd under section 76, an order of winding up of a co-operative society made under section 63 shall not operate 21'hlc  kr 'untt1 the ·order is conftnned in appeal: provided that the l:quidator ,hall continue to have custody or control of the property, effect, and actionable claims mentloned in sub-section ~) '  hii'ft! autbol'tty to 1ake the  refer!led to ift that wb-aection (4) where an order of winding up of a co-operattve iocfety is set 30 aside in appeal, the property, effects and actionable claims <1f the society han revest in the society power of liquidator tn (1) subject to any·ruiei tnade if! this behalf, the ",hole of the  ets 'f1l a eo-operative aoctety, in respeet of whida an onier for winding up· has ben made, shau wit in the liquidator appotrted under section 66 35 from the date em which the order takes elfeetnd the uquiciatol' shan have power to realise such assets by sale or otherwise (2) 1haclb liquidator shall also haw power, subjlttt to the ton'll'o{ of the registl'ar,-(a) to wthute and defend suits and other legal proceedings on behall of the coogpei'ative society by the name of his office; <b> to detennfne from time to tltne tim! contribuuod (illelodfng debts due and costs ot liquidation) to be 1iiilde or~mamtdgto be made by the membel1l or past members or by the estates or nominees, heirs or legal representatives of deceased members or by any oftlcers or former officers, to the assets of the society; 4s (c) to investigate all claims against the co-operative society and subject to the provisions of this act, to decide questions qf priority arming between claimants; (d) to pay claims against the co-operative society including interest up to the date of winding up according to their respective 5 priorities, if any, in full or rateably, as the assets of the society may permit; the surplus, if any, remaining after payment of the claims being applied in payment of interest from the date of sueh order of ' winding up at a rate fixe; by him but not exceeding the contract rate in any case; 10 (e) to determine by what persons and in what proportions the costs of the liquidation are to be borne; <f) to determine whether any person is a member, past member or nominee of deceased member; (g) to give such directions in regard to the'oollection8ncldistri- 15 bution of the assets of the society as may appear to him to be necessary for winding up the affairs of the society; '! (h) to -carryon the business of the 'society' so far ~,may be necessary for the beneficial winding up of the same; (i) to make any compromise or arrangement' with creditors or 20 persons clajming to be creditors or having or alleging to have any claim, present or future, whereby th,e society, may b~ rendered ua~lel (j) to make any compromise or arrange~nt with any person between whom and the society _ there exists any dispute and to refer any such dispute to arbitration; 25 (k) after consulting the members of the society, to dispose of the surplus, if any, remaining after paying the claiins against the society in, such manner as may be prescribed; and  , (l) to compromise all calls or liabilities to calls -and debts and liabilities capable, of resulting in debts, and all claims, presen~ or 30 future, certain or contingent, subsisting or supposed to subsist between the society and a contributory or alleged contributory' or other' debtor or person apprehending liability to the co-operative society and all questions in any way relating to or affecting the assets or the winding up of the society on such terms as may be agreed and 35 take any security for the discharge of any such call, liability, debt or claim and give a complete discharge in respect thereof (3) when the affairs of a co-operative society have been wound up,  the liquidator shall make a report to the registrar and deposit the records of the society in such place as the registrar may direct 40 5 of 1920 88, notwithstanding anything contained in the provincial insolvency act, 1920, the contribution assessed by a liquidator shall rank next to debts due to the government or to any local authority in order of priority iil insolvency proceedings priority of contributions assessed by liquidator ! :19 (1)! the registrar may'after considering the teport~-ot'tl1e liqut- j datormade to- him underaub-section (3) 'ofaectit)d 67 'ofder'the reps: tration of the co-operative society to be caneelled - (2) an order passed under sub-section (1) shall be communicated by s registered post to the president of the society and· to the financing institutions, if any, of which the society was a member  powerot registrar to cancel registra· tion of a co-operativc society  chapter x execution of awards, decrees, orders anddecrsrons,~ 70 notwithstanding anything contained in chapter v1u or any other enforce-10 law for; the tune being in force, but without prejudice to any other mode mentot of recovery provided in this act, the registrar or'any persoil jlubetdidate char •• · to him empowered by the registrar in this behalf may, on the applica· tion of a co-operati-vesociety, make an oi'der directing the payment oflby debt or outstanding demand due to the society by any member or past is 'or deceased member, by sale of' the property or any interest tjlereld,' which is subject to a ch81'ge under section 36: provided thqt no order shall be made under this section unless' the member, past member or the nominee" heir or legal representative of the deceasee member, has been served with a notice in the manner pres-20 cribed execution of order, etc 7l~ every decision, award 'or order duly passed by the registrar or arbitrator or tribunal under sections 29, 30, 59,61, 70, 76, 78 and· 79 res-  pectively, shall, if not carried out,-(4) on a certificate signed by the registrar or any person 8,)ltho-2s  rised bv him in this behalf, be d~ed to be a decree of a civil court and sh~ll be executed in the same manner as decree of such court; or (b) be executed accorldin,,to the provisiol'ls of the land revenue code and the rules thereunder for the time being in force for the recovery of arrears of 'land revenue; 30 ( c) be executed by the rfi\l~trar or anyj o~~ejl, person  lu~rdj­nate to him empowered by the registrar in this behalf, by attachment and sale or by sale without attachment of any property of the ) person ot a co-operative ~ocietyagainst whom the order, deeislon or award has been obtained or passed execution ot cll'ders ot iiqul - dator 35 "12 th~ orde~s· of tlje liquidator under i section· 67 shall be execl,lted a&orditlg to the act and under the rules for the time being in force for  thereeovery of arrears of land revenue ' 1 73 where the registrar is satisfied that a party to ally refjrerl~ made to him under section 60 with intent to defeat or delay the -exeaation of 4~ e(n~' a~i02l lhatmay: be passed theteon is' about to-' attach· ment before award i' (4) dispose of the whole or any part of the property; or (b) remove the whole or any part of tlle property from the local limits of the jurisdiction of the registrar, thelj regfstt-af nfay, 'wiless ad~uate ·sectitity is' furn1ilhed,: direct the 45 conditional attachment ot the'baid' property or' suc!hpjrt thereof m he tbinka neqeuai\y sueh attachment shall be exec:u~by a civu· ceurt huiai j~ic:uon in ,the aame :way as an auacbjmntoij<ier ~·lii'· itself and shall have the·ujne e4evt  s\lch:an, om8j:i: provided that the powers of t·!1e registrar under this -seetion shad not be  delegated to any officer below such rank as my be ptescribed s 38 of 1983 re  orpetlon empowered by him to be civil court for certain purp()lel 74 the registrar or any person empowered by him in this behalf shall be deemed, when exercising any powers under this act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application· i18de to him for mell recovery or for taking a atap,m-aidtof jlqch ie fectov8ry to be civil court for the pw-poses of artutle 136 of the, kbaduje tgthewmitation act 1963 recovery of1jums due to govemment fl (1) all: ~ due from a oo-openative society all fnqn  anl~q8d qi;aembe£ ·'or pllaat!ldber of a co-operative soaiety  to gcwulh-t jiiiiiiitt iaeluding an, costs awarqed, to government under any pmvillonl ,i s: of thia act, may 011 a certifioateiaaued by the regilltml' inliltia • behall,1hl recovere4the ~ lpu1iler as arrears of land revenue (2) swoa due froma co-aperative aociety to gov",t aru:lraeo  ,  llndez' lub-section (1) may be recovered lratly, hom the proped¥; ot  socielyie!condly in the case of a society the liabtlity of the mem  ~rj hera 0( which ta limited, from the members, plst members or the estates of· d  ~ rnembefa, aubjectto the limit of their liability ana tbilldly, inl tile e  of other liocieties, frorn· the· members put membel'l ortbe estate of ~e dec~d members: previded that the liability of past members and the (""tates ·of deceas- 25 ed members sball in au cases be sub~ \'0 the provisjrms of section 27  ch:ltpter xl appiia1& 4p-:~appeals ft (1) subject to the provisions of section '1f; an appeal· shall ue under this section against-30 (1, •• 1ko  ·qc ~ ~  oe, ~~q8d~ of section 9 refusing to register i· -iety; (b) an order of the registrar ~de under lu~ion (41, til_-tlqn h re~us1ng to register an amendment q{ the bye-lawlloc,,, cooperative society; 35 (c) an order of the registrar made under bubo-section (l) of ~-,}q; (d~ a decision of a co-operative socioty refuaing to  i ""y pei'rqh as a mea)ber· of the lociiety who is o~ duq  ,a,ct, ' tor merj;lbership qp4er the bye-laws of, the &ociet~; i ";' "! ~o   (~) a decillion of ~ ~rative society ex~lling an)" ofjtii men· bers;   {~ a~  order, of the ~t~ar reqlqvin,a ~ ~it;w ~/ ~ op6uuye society nude uml~ section 3~ (g) an order made by the registrar under section 57 apportioning the costs of an enquiry held under hection 55 or ill insl)ectiod madt under section 56; (h) any order of su!"charge under section 59; 5 (9 any decision or award made under section 61; (j) an order made by the registrar under section 63 directin~  the winding up of a co-operative society; (k) any order made by the liquidator of a co-ope~tive society in exercise of the powers conferred on him by l)(octicli 67; 10 (l) any order made under section 73 (2) an appeal against any decision or o;·jer under ~ub-sedion (1) shan be made within sixty days from the date of the deci!dm'l or otder-(a) if the decision or order falls under clausa (g), (h), (i) or (l) of ~ub-section (1) to the tribunal; 15 (b) in any other case, to the lieutenant-governor or the itegilltrar according as the decision or order was made by the :registrar or any other person (3) no appeal shall lie under this section from any decis!on or order made by the registrar in appeal 20 77 notwithstandmg anything contained in this act where witb the no p previous sanetion in writing or on requisition of h~,~ ret~r"e bank-peal for revision (i) a co-operative bank is being wound up; or in certain cases (ii) in respe<:t of which a scheme of amalgamation or reorganisation is given effect to; or (iii) in respect of which;ln order for the supersession of the committee and the appointment of an administratoj therefor has been made, no appeal revision or review there against shall lie c:tt be permissible, and the sanction or requisition of the reserve bank ilhajl not be liable to be 30 caned in question 78 (1) the iieutejiadt-govena~ shall eomtitute a tribunal to be delhi co--catied the· deihj co-opefttlve trib'pnal to exeftise the ructions eonfer operative redod the trlbtuutj by or lidder this art  tribunal (2) the tribunal sha]) consist of not more them th\'(:~ m~'11bers pol-!!essing such qualifications as may be prescribed 3~ (3) any vacancy in the membership of the tribunu! sh 111 ~oe tlllect by the lieutenant-governor (4) subject to the previous aporoval of the lieutenant-govemor, the tribunal shall frame regulations cons~nt with the provtlfons of the 0 act and the rules made thereunder, for regujatlogits procedure and the disposal of tts business  (5) the regulations made under ~ub-sect'on (4) "h h bt! published by the lieutenant-governor in the delhi gazptte 3698(b) ls-5 (6) the tribunal may call for and; examine the recora of any proceedings, in which an appeal lies to it, fur the purpose of satisfying itself as to the legality or propriety of any decision or order ~~sed and if in any crse it shall appeal to the tribunal that any such declsloji :lr orrler should be modified, annulled or reversed, the tribunal ma~t ,5s such order 5 thereon as it may deem fit (7)· an order passed in appeal under section 76 or ~  revl!ion under sub-section (6) of this section or in review under section 79 by the tribunal shall be final and conclusive, and shall not be called in question in any civil or revenue court 10 explanction-the tribunal hearing an appeal under this act shall exercise all the powers conferred upon an appellate court by section 97 of, and order xli of th~ first schedule to, the code of civil procedure, 5 of 1908 1908 ' •• review of ordera of tribunal '79 (1) the tribunal may either on the application of the registrar, is or on the application of any party interested, review its own order in any case, and pass in reference theretoi such order as it v1inks just: 'provided that no such application made by the party shall be entertained unless the tribunal is satisfied that there has been the discovery of new and important matter of evidence which after the exercise of due 20 diligence was not within the knowledge of the applkant or ('ould not b~ produced by him at the time when its order was made or that there has been some mistake or error apparent on the face of the record, or for any other sufficient reason: provided further that no such order shall be vart"!d at re  ,ised unless 3s notice has been given to the parties interested to appear and be heard in support of such order (2) an application for review under sub-section (1) by any party shall be made within ninety days from the date of communication of the order of the tribunal 30 revillon 80 subject to the provisions of section 77, the lieutenant-governor may, suo motu or on the application of a party to a reference, call for and examine the record of any proceedings in which no appeal lies to the lieutenant-governor under section 76 (not being any proceedings in which an appeal lies to the tribunal) for the purpose of satisfying him- 35 self as the legality and propriety of any decision or order passed and if in any case it shall appear to him that any such decision or order should be modified, annulled or revised, he may pass such order thereon as he may deem fit interlocutor, orders 81 where an appeal is made under section 76 or whele the tribunal 40 or lieutenant-governor calls for the record of a case 1rtlder section 78 or section 80, the appellate authority or the tribunal or lieutenant-governor, as the case may be, may, in order to prevent the ends of, justice being defeated make such interlocutory order including an order of stay ilending the decision of the appeal or revision as s\lc:h authority or the tribunal of lieuten!int-gove~or may df;!em fit 45 82 (1) any person other than a co-operative society carrying on business under any name or title of which the word "oo-operative", or its s 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 a 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 tirst such breach 10 (2) any member or past'member or the nominee, heir or legal representative of a deceased member of a co-operative society who contravenes the provisions of sections 36 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 to the prejudice of such claim, shall be punishable 15 with fine whicb may extend to five hundred rupees (3) a co-o~ative society or an officer or member thereof wilfully making a false return or furnishing false information, or any person wilfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions ~f this act or , 20 wilfully not furnishing any information required from him by a person authorised in this behalf under the provisions cl this act, shall be punishable with tine which may extend to two hundred rupees (4) my employer who, without sufficient cause, faus to pay to - c0-operative society the amount deducted by him under section 44 within 2s a period of fourteen days from the date on which such deduction is made shall, without prejudice to any action that may be taken against him under any law for the time being in force, be punishable with tine which may extend to five hundred rupees (5) any ofbcer or custodian who wilfully fails to hand over cuatody 30 of books, records, cash, security and other property belonging to a c0-operative 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 tine which may extend to two hundred rupees and in the case of a continuing breach with a further tine which may extend to flve hundred rupees for every 35 day during which the breach is continued after conviction for the first such breach (6) any person who fraudulently acquires or abets in the acquisition of any such property which is subject to a charge under sections 36 and 37 shall be punishable with flne which may extend to two hundred 40 rupees n 83 (1) no court inferior to that of a magistrate of the first clas, shan try any oftence under this act coan!· zanceot olfenc:e (2) no prosecution shall be instituted under this act without the previouj sanction of the registrar and such sanctionhall not be given with-45 out giving to the penon concerned a reasonable opportunity to repreeent bis cue addrell of odeties k every co-operative $ociety shall have an address registered in tht! manner prescribed to which au' notices and communications may be iej1t, and shall send to the registrar notice of every change thereof within thirty days ot such change copy of 8!i every co-operative society shan keep a copy of this act, thli rules s and its bye--laws and also a list of its ,-lembers; open to inspecti~n fn!e of ehlrrge at all reasonable times at the r:;gister~' address of theioclety:  ~ct, rules and byelaws, etc, to be open to inspection prohibition agllinst the use of the word "eo-operatift" 86 no person other than a co-operative society shall trade or carry on business under any name or title of which the word "co-operative" or its equivalent in any indian language is part: 10 provided that nothing in this section shall apply to the use by any persbn '::ir his successor-in-interest of any name or title uric$er wh'!ch be cllrrled on business at the date on which the co-operativesocie~ies aet, 2 of 1'1& 1912, 'came into ope:-ation 87 notwithstanding anything contained in this act, the lieutenant- is governor may by general or special order and subject to sueh conditions, if any, as he may impose exempt any society or class of societies ftom any of the requirements of this act as to registration 88 the lieutenant-governor may, by general or special order, to be published in the delhi gazette, exempt any co-operative society or any 20 class of co-operative societies from any of the provisions of this act, or may direct that such provisions shall apply to such soc:jetie!j or class of societies with such modifications as may be specified in the qrder power to exempt societies from conditions as te· registution power to exempt cooperative societies from provisiolls of the act 89 any person appoint~d as liquidator under the provisions of this act or the rules shall be deemed to be a public servant within the mean- 2 5 of 1880 ing 00 section 21 of the indian penal code 5 lkluidator to be public  rvant notice neeeuary m 1uita  no suit shall be instituted against a co-operative soeiety or any of its officers in tespeet of any act touching the business of the soctety 'unw the expiration of three months next after notice in writtnghits "b,en d~fvered to the registrar or left at his oft\ce, stating the cause of aetioh, 30 uie'tiame, description and place of residence of the plaintiff and the 're1t~f wh!chhe elal1ns and the plaint shall contain a statement that such notiee has been so delivered or left companies aet not to apply savinlot existing sqdetietl 91 the provisions of the companies act, 1956 shall not apply to cooperative societies 1 at 158 3s 92 (1) every society now existing which has been registered under the co-operative credit societies act 1904 or under the co-operative sodeties act, 1912 or under tht bombay co-operative societies act, 1925 as 10 at 190 in, force in the union territory of delhi shall be deemed to be registered ; ~/~~i5 under the corresponding provisions of this act and its bye-laws shall, 0 so far as the same are not inconsistent with the express provlsions'ofthis act continue in force until altered or rescinded (2) all appointments, rules and ordters made, notifications and notices ill8ued and suits and other' proeeedinp iniututect  under the aid ~ shall, so tar as they are consistent with the provisions of thia act, be deemed to have been respectively made, issued and instituted under this act, save that an order made cancelling the registration of a society ahall be d~med, unless the society has already been finally liquidated, as an 5 order issued under section 63 for its being wound up n (1) save as provided in this act, no civil or revenue court shall have any jurisdiction in respect of-(a) the registration of a co-operative society or ita bye-laws or of an amendment of a bye-law;  10 (b) the removal of a committee; (c) any dispute required under section 60 to be referred to the registrar; and (d) any matter concerning the winding up ed the dissolution of a co-operative society is (2) while a co-operative society is being w'gulld up, no suit or other legal proceedings relating to the business of such society snube proceed ed with or instituted against, the liquidator as such or against the ~ety or any member thereof, except by leave of the registrar and eubjed to such terms as he may impose 20 (3) save as provided in this act, no order, deeision or award made under this act shall be questijned in any court on any ground whatsoever m (1) in exercising the 1unctions conferred on him by or under this act, the registrar, the arbitrator or any other person decidlns a clilpute under section 61 and the liquidator of a co-operative society or penod l5 entitled to audit, inspect or hold an inquiry and the tribunal, aball have all the powers of a civil court, while trying a suit, under the code ot civu procedure, 1908, in respect of the following matters, naniely:-5 of 1908 (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of any doeument; 30 (c) proof of facts by affidavits; and (d) issuing commissions for examination of witneaes (2) in the case ';:il an affidavit, any officer appointed by the registrar, the arbitrator or any other person deciding a dispute and the liquidator 3s or the tribunal, as the case may be, may administer the oath to the deponent 95 no suit, prosecution or other legal proceedlnis shall lie agaiolt the registrar or any person subordinate to him or acting on' his authority in respect of anything in go~d faith done or purporting to have been done ,0 under this act 96 (1) the ueutenant-g:wernor shall, as soon as may be alter the commencement of this act, constitute 8 common set'vice compruing of officers and other employees of djfferent classes of co-operattve societies and shall determine the number and designation of sueh offtcers and 45 other employees (2) the lieutenant-governor shall make rules regulating the qualifi· cations remuneration, allowances, recruitment and other conditions of service of such officers and other employees of the co-operative societies 1ii4eftt atty qualjftca tioftl, remuoeralion anct other condi· uons of ~ 01 empie-yhii of co-operative meiet1ei 91 (1) 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 generality of the foregoing power, such rules may provide for all or any of the following 5 matters, namely:-(i) the maximum number of shares or portion of the capital of a co-operative society which may, subject to the provisions of section 6, be held by a member;  (ii) the form to be used and the conditions to be complied with 10 in the making of applications for the registration of a society and the procedure in the matter of such applications; (iii) the procedure and conditions for change in the form and extent of the liability of a co-operative society; (iv) the matters in respect of which the society mayor shall is 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; (v) the conditions to be complied with by persons applying for admission or admitted ae> members, for the election and admission 20 of members, and for the payment tolbe made and the interest to be acquired before the exercise of the right of membership; (vi) the manner in which funds may be raised by means of shares and debentures or otherwise; (vii) for general meeting of the members and for the procedure 25 at such meetings and the powers to be exercised by such meetings; (viii) the prohibitions and restrictions subject to which societies may transact business with persons who are n<rt members; (ix) the proportion of individuals and societies in the constitution of the committee of management and the general body of a co-opera- 30 tive society of which another co-operative society is a member; (x) subject to the provisions of section 31, the election and nomination of members of committees, the appointment or election of oftlcers and the suspension and removal of the members and other oft!- cers, and for the powers to be exercised and the duties to be perform- 35 ed by the committees and other officers; (xi) the area of agricultural land, the conditions required to be fulftlled for the purpose of sub-section (6) of section 31; (xii) the appointment and regulation of work entrusted to person 40 or persons replacing the committee in pursuance of section 32; (:riii) prohibiting a co-operative society from electing a defaulting member on its committee or to be its representative; (xiv) the accountr and books to be kept by a co-operative 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 co-operative society; 5 (~) the returns to be submitted by a co-operative society to the registrar, the persons by whom and the form in which such returns shall be submitted and in case of failure to submit any such returns for the levy of expenses of preparing it; (xvi) the persons by whom and the fotm in which copies of the 10 entries iii books of societies may be certified and for the charges to be levied for the supply of such copies; (xvii) 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; 15 (xviii) the appointment of an arbitrator to decide disputes; (xix) 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 20 incapable of protecting his interests, and the levy of the expenses relating to such proceedings; (xx) 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 25 members; (xxi) the mode in which the value of a deceased member's share or interest shall be ascertained and for the nomination of a person to whom such share or interest may be paid or transferred; 30 (xxii) 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; 35 (mu) the formati<nl and maintenance of reserve funds and other funds and the objects to which such funds may be appued, and for the investment of any funds under the control of a co-operative society; (mu) the extent to which a co-operative society may limit the number (1f its members; 40 (x'xv) the conditions under which proats lnay be distributed to the members of a co-operative society with unlimited iiabflfty, and the maximum rate of dividend which may he paid by co-operatlve societies; (xxvi) the calculation and writing off of bad debts by co-operative societies; 45 (xxvii) the procedure to be followed by a liquidator appointed under section 66 in respect of provisions of sectiml 67; (xxviii) the procedure to be followed in presenting and disposine of appeals under this act; (xxix) the form of orders referred to in sections 71 and 72; (x:u) qualificatkrns of the members of the tribunal; (zz:ri) the issue and service of processes and for proof o'f service 5 thereof;  (xxxii) the manner of effecting attachment; (n;:riii) the custody, preservation and sale of property under attachment; (xmv) the investigation of claims by persons other than the 10 clefaulter to any right or interest in the attached property, and for the postponement of the sale pending such investigation; (xxnl) the immediate sale of perishable articles; (xxxvi) the inspection of documents in the office of the registrar or of any other omcer or authority and the levy of fees fot is granting certified copies of the same; (xxxvii) the terms and conditions on which the central g<lvemment may make share-capital contribution or give assistance, financial or other, to societies and the terms and conditions· on which the central ~vernment may guarantee the payment of the princi- :<0 pal or interest on debentures issued by societies or loans raised by them; (rxxt'iii) 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 s'~ raised; 2~ (xxrix) for giving reasonable' notice of the charge under sections 36 and 37; (xl) qualifications, remuneration allowances and recruitment and ihe conditions of service of officers and other employees of a so'ci~ty or class of societies; 3" (xli) the method of communicating or publishing any order, decision ot award required to be communicated or published under this act or the rules (3) every rule made under this section shall be laid as soon as may be after it is made before each house of parliament while it is in sel- :5 ilion for a total period of thirty days which may be comprised in on~ _toft {\f in two successive sessions, and if before, the expiry of the session in which it !~ ao laid or the session immediately following, both hcnses agree in making any nt«uftcation in the rule or both houses agree that the rule should not be made, the rule stur,ll thereafter have et!ect only 40 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 prejuttieeto the validity of anything previously done under that rule' lb on the day on which the delhi co-operative societies act, 1970 cobles into force, the bombay co-operative societies act 1925 as in force 45 bom 7 of in the union territory of delhi shall stand repealed: 19'!~ provided that the repeal shall not affect-(a) the previous operation of the act so repealed or anything duly done or suffered thereunder; or (b) any right, privilege, obligation or liability acquired, accrued s or incurred under the act so repealed; or (c) any penalty, forfeiture or punishment incurred in respect of any offence committed against the act so repealed; or (d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or 10 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  statement of objects and reasonsthe bombay co-operative societies act, 19251 was extended to the union territory of delhi in 1949 this act, which was in force in the states of mal'u~rashtra and gujarat has 8inc~ beftn repealed in thj3&e states and replaced by new acts passed by tqeir respective legisl~turej in view of the expansion and diversification of activities of co-operatives, it is considered necessary to replace the existing co-operative legislation by the present bill to meet the requirements of co-operative development in the union territory of delhi 2 the salient features of the bill are that it provides for obviating delays in the registration of co-operative societies, open membership, expeditious amalgamation and division of co-operative societies, delegation of powers of the registrar to federal societies, state partnership in cooperatives and contribution by co-operatives too a co-operative education fund provision has also been made for appealing against refusal of society to admit a person as its member and against orders of a society expelling a member to facilitate mobilisation of deposits by co-operative banks, an enabling provisdon for the extension of the deposit insurance scheme to co-'o'perative banks has been included in the bill 3 following provisions have also been incorporated in the bill for curbing the growth of vested interests in co-operatives as recommended by the conference of chief ministers and state ministers of co-operation held in june, 1968: (a) persons like money-lenders, traders and other middle-men whose interests conflict with the objects of co-operatives are to be excluded from membership of co-operatives (b) two seats-one each for scheduled castes and small farmers-are to be reserved on the board of management of certain categories of societies (c) no individual is to hold office for more than 2 terms of 3 years each in the same institution (d) no individual is to hold office simultaneously in more than three institutions (e) the loans given to members of the managing committee of a society should be reviewed at the general body meetings of the society (i) elections in bigger co-operative institutions will be conductell through an independent authority (g) constitution· of common service qf personnel of co-operatives new delm; annasaheb p shinde the 13th february, 1970 the delhi co-operative societies bill, 1970 seeks to replace the bombay co-operative societies act, 1925 in its application to the union territo~ of delhi e~cept~n~ fo'r a small acldition~ ex~nditure that may anse under clause 31 of the bill, no other new expenditure is contemplated by reason merely of the passing of the bill 2 claus~s 8, 53, 54, 55, 56, 61 and 66 of the delhi co-operative societies bi1~, 191'0 whtcp provid~ for the appoi~tment of registrar and other officers, audit, inspection and inquiry, appointment of arbitrators and liquidators by the registrar, will not entail any additional expenditure 8$ the registrar's organisation is already undertaking these responsibiliti~ in ter~ of the existing co-operative sqcietie$ act in force in the union territory of delhi_ 3 clause 31 of the bill lays down that the election cf the members of the committees of such co-operative societies or class of co-operative societies, as the lieutenant-governor may, by general or special order, notify, shall be held under the superintendence, direction and control of returning officers to be appointed in this behalf the exact amount of expenditure involved on this cannot be assessed at this stage the additional expenditure may, however, be of the order of rupees 25,000 a year 4 clause 43 provides for remission cf certain taxes including incometax, stamp duty, court fee, registration fee, land revenue, taxes on agricultural income, taxes on sales or purchase of goods and taxes on profession, trades, callings and employments the financial liability to government as a result of the application of this enabling provision will depend upon the nature and the extent of exemption given from time to time the co-operative societies act in force in the union territory of delhi already contains an enabling provision to exempt co-operatives from income-tax, stamp duty, court fee and registration fee 5 clause 45 of the bill provides for financial assistance to co-operatives in the form of share capital, loans and advances, subsidies and guarantees the system envisaged in this provision is already in vogue and no additional expenditure to the government is envisaged 6 clause 78 of the bill pr<1vides for the constitution of a tribunal on the lines of section 63a of the co-operative societies act in force in the territory and therefore no additional expenditure is involved  7 the budget provision of the co-operative department of the union territory for the current financial year 1969-70 is of the order of rupees 1550 lakhs as revenue expenditure and rupees 1650 lakhs as capital expenditure for loans and share participation only a small additional expenditure is contemplated by reason merely of the passing of this bill 8 this bill does nat involve any non-recurring expenditure  memorandum regarding delegated legislationclause 78 of the delhi co-operative societies bill, 1970 empowers the delhi co-operative tribunal, to be constituted under the said clause, to frame regulations, with the previous approval of the lieutenant-governor for the purpose of regulating its procedure and the disposal of its business further, clause 97 of the bill empowers the lieutenant-governor to make rules to carry out the purposes of the act the various matters with respect to which rules may be so made are specified in sub-clause (2) of clause 97 of the bill it has been provided in sub-clause (3) af the said clause 97 that all rules so made shall be laid before each house of parliament 2 the matters in respect of which regulations are to be framed or rules are to be made, are matters of procedure or detail and the delegation of legislative power is thus (if a normal character  a bill"to consolidate and amend the law relating to co-operative societies in the union territory of delhi (shri annasahib p shinde, minister of state in the ministry oj food, agriculture, community dtfjelopmet't and co-operation) 