 tr)tee multi-sta1e co-operative" socie'1'ies bill, 1977 l'f:o bew introduced in 10k sabha 7 1 page 11, line 10,-after "the" insert "central" - 2 page 17, line 7,-, for t10hairman ofn ma&1 "na1r~ or it, - 3 l'age 17, l~ 34,-~ "su~a~4:u! 'i sec tion" 4 rage 21  t_line 4,-t2l: na7'd  t~ "or" , ~a~ 21, line 7,-~ "socdety o~" dai ~tyl ~~,~(~)", " , pa&e 21,  ·line 9,-for "49 or if t~" l'e&d "49; or (d) a" :  'r- rage 21, line 12,-after "those tt insert ''ha~, or~ - - pa~e 25, line ~: ll for "or any'" tw:id "~f atly" " fi page 34, aga:lnst' elause ~7, insert the following marginal heading,--"execu tion of crders "r 11qu1da~r" 10 page 34, against clause 88, 1nsert _the fo~lowing marg:lnal he ad:lng , -"attachment before award" 11 page 40, against line 7,-for marginal citation "6 of 942" read "6 of 1942" , 12 page 40, line 17,-before "cancelling", insert "made" 13 page 40, line's 17"and 18,-\' ~ "made und6rtho::said -apt'~ - - _  _ 'w 14 page 45, line 17,-before "national " insert ( "4 "  - - new delhi· ~ " - -- i agraha,yatla 1; 1899 ( saka) " "    --' ,   the multi-state co-operative societies bill, 1977 arrangement of clauses chapter i preliminary clauses1 short title, extent and commencement 2 application 3 definitions  chapter ii central registrar and registration of societies4 central registrar; 5 multi-state co-operative societies which may be registered 6 application for registration 7 registration 8 registration certificate 9 amendment of bye-laws of a multi-state co-operative society 10 when amendment of bye-laws comes into force 11 change of name 12 change of address 13 liability 14 amalgamation, transfer of assets and liabilities, or division, of multi-state co-operative societies 15 power to direct amalgamation or reorganisation in public interest, etc 16 central registrar to prepare scheme of amalgamation or reorganisation of co!-operative bank in certain cases 17 liability of a co-operative bank to the deposit insurance corporation 18 cancellation of registration certificate of multi-statero-operative societies in certain cases 19 conversion of co-operative society into multi-state eo-operative society  chapi'er iii members of multi-state co-operative societies an'/) thj:ib rights alfd liabilities20 persons who may become members 21 nominal members  clauses 22: member not to exercise rights till due payment made 23 expulsion of members 24 votes of members 25 manner of exercising vote 26 restrictiqlls on holding of shares 27 restrictions on transfer of shares or interest 28 redemption of shares 29 transfer of interest on death of members 30 liability of past member and estate of deceased member  chapter iv d:mection and management of multi-state co-operative societies31 general body, constitution, powers and functions 32 annual general meeting of the general body 33 special general meeting of the general body 34 board of directors 35 representation of workers on the board of a multi-state cooperative society 36 disqualification for a member 01 a board 37 election of members of board 38 holding of office in co-operative 'society 39 restrictions on holding of office 40 payment of honorarium 41 removal of ele!ted members by general body 42 remo,val of member by central registrar 43 nominee o£ central government or state government on the board' of multi-state co-operative societies 44 powers of the board of multi-state co-operative societies 45 meetings of the board 46 chief executive 47 powers and functions of chief executive 48 committee of the board 49 supersession of board 50 securing possession of records, etc 51 constitution of body of persons for preparation of list, etc 52 acts of multi-state co-operative societies not to be invalidated by certain defects  chapi'er v'"   p1uvueges of ml1lti-state co-operative societirs53 multi-state co-operative society to be body corporate 54 charge and set-off in respect of share or contribution or interest of members  clauses55 share or contribution or interest not liable to attachment 56 register of members 57 admissibility of copy oif entry as evidence 58 exemption from compulsory registration of instruments 59 deduction from salary to meet multi-state co-operative society', claim in certain cases 60 government aid to multi-state co-operative societies  chapter vi properties and funds of multi-state co-operative societi1!'b61 funds not to be divided by way of profit 62 disposal of net profits 63 investment of funds 64 restrictions on loans 65 restrictions on borrowing 66 restrictions on other transactions with non-members 67 contributory provident fund  chapter vii audit, inquiry, inspection and surcharge68 audit 69 inspection of multi-state co-operative societies 70 inquiry by central registrar 71 inspection of books of indebted multi-state co-operative societies 72 costs of inquiry and inspection "  73 recovery of costs 74 surcharge  chapter vill sz'l'tlement of disptjtb8 i )75 disputes 76 limitation 77 settlement of disputes  chapter ix winding up of multi-state co-operative societiescorporation by j - 78 winding up of multi-state co-operative societies 79 winding up of co-operative banks at the direction of reserve bank 80 reimbursement to the deposit insurance liquidator 81 liquidator 82 powers of liquidator 83 disposal of surplus assets 84 priority of contributions assessed by liquidator 85 power of central registrar to cancel registration of a multi-state co;-operative society  chapl'er x execution of decrees, orders and decislions86 execution of decisions, etc 87 execution of orders of liquidator 88 attacbment before award 89 central registrar or the person authorised by him to be civil court for certain purposes 90 recovery <d sums due to government  chaprer xi appeals and revision91 appeals 92 no appeal or revision in certain cases 93 revision 94 review 95 interlocutory orders  chapter xii socreties widch become multi-state o<>-operative soc1i:ties consequent on reorganisation 01' statdj96 co-operative societies functioning immediately before reorganisation of states  chapter xiii offences and pen'altibsf11 offences 98 cognizance ~ offence  chapter xiv miscl:llaneous99 copy of act, rules, and bye-laws, ete, to be open to iaspeeuon 100 power to exempt multi-state co-operative societies from conditions as to registration 101 liquidator to be public servant 102 notice necessary in suits 103 companies act not to apply 104 saving of existing multi-state co-operative societies 105 power to amend second schedule 106 bar of jurisdiction of courts  clauses107 powers of civil court 108 indemnity 109 opening of branches 110 power to make rules 111 repeal the first schedule the second schedule  bill no 141 of lit1' the multi-state co-operative societies b~, 1977 a billto consolidate and amend the law 1'elating to co-ope1'ative societies with ob;ects not confined to one state and se1'ving the interests of membe1's in m01'e than one state be it enacted by parliament in the twenty-eighth year of the republic of india as follows:- chapter i prelimjnarys 1 (1) this act may be called the multi-state co-operative societies short act, 1977 title, extent (2) it extends to the whole of india and com-(3) it shall come into force on such date as the central government mencemay, by notiftcation in the official gazette, appoint ment 10 z the provisions of this act shall apply to-2 of 1912 6 of 1942 is (a) societies which were incorporated before the commencement appllof this act, under the co-operative societies act, 1912, or any other cation law relating to co-operative societies in force in any state with objects not confined to that state or in pursuance of the provisions of the multi-unit co-operative societies act, 1942, and the registration of which has not been cancelled before such commencement; and ' (b) multi-state co-operative societies to be incorporated after the commencement of this act 20 3 in this act, unless the context otherwise requlres,-deftnltiolll (a) iiboard" means the board of directors or the governing body of a multi-state co-operati"v'e society, by whatever name called, to which the direction and control of the man,,~pment of the affairs of the society is entrusted:! (b) "bye-laws" means the registered bye-laws for the time being in force and includes registered amendments of such bye-laws; (e) "central registrar" means a person appointed under subsection (1) of section 4 to perform the functions of the central registrar of co-operative societies under this act and includes any s officer empowered to exei'cise the powers of the central registrar under sub-section (2) of that section; (d) "chief executive" means a chief executive of a multi-state co-operative society appointed under section 46; (e) "co-operative bank" means a multi-state co-operative society 10 undertaking banking business; (n "co-operative principles" means the principles specified in the first schedule; (g) "co-operative srociety" means a society registered or deemed to be registered under any law relating to co-operative societies in 15 force in any state; (h) icco-operative year", in relation to any multi-state co-operative society or class of such societies, means the year ending on the 30th day of june and where the accounts of such society or class of societies are, with the previous sanction of the central registrar, :ao balanced on any other day, the year ending on such day; (i) "deposit insurance corporation" means the deposit insurance corpol'ation established under section 3 of the deposit insurance 47 of 1961_ corporation act, 1961; (;) iimember" means a person joining in the application fol' the 25 registration of a multi-state co-operative society and ii person admitted to membership after such registl'ation in accordance with the provisions of this act, the rules and the bye--laws and includes a nominal member; (k) "multi-state co-operative society" means a society registered 30 or deemed to be registered under this act and includes a national cooperative society; (1) iimulti-state co-operative society with limited liability" means a society havin{{ the liability crt its members limited by its byelaws to the amount, if any, unpaid on the shares respectively, held 35 by them or to such amount as they may, respectively, thereby undertake to contribute ta the assets of the society, in the event of its being wound up; (m) "national co-operative society" means a multi-state cooperative society listed in the second schedule; 40 (n) "nominal member" means a member who possesses only such privileges and rights of a member, anr{ who is subject only to such liabilities of a member, as may be specified in the bye-laws; (0) ifnotiftcation" means a notification published in the official gazette; 45 (p) i'officer" means a president, vice-president, chairman, vicechairman, managing director, secretary, manager, member of a board, treasurer, liquidator, an administrator and includes any other person empowered under this act ot' the rules or the bye-laws to give directions in regard to the business nf a multi-state co-operative 50 society; (q)  "prescribed"' means prescribed by rules; (r) "reserve bank" means the reserve bank of india constituted by the reserve bank of india act, 1934; ,  (8) "rules" means the rules made under this act chapter ii  scentral relistiv central registrar and registration' of societies i 4 (1) the central government may appoint a person to be the central beglstrar of co-operative soeietiesluld may appoint o&her penons to assist ,bim 10 (2) the ceiltral government may, by notification, direct that any power exercisable ,by the central registrar under this act (pther than the power of registration of a multi-state co-operativa society)' shall, in relation to such society, and 'such matters, as may be sp ~gified in the notification be exercisable also by any other officer of the central gov-is ernment or of  state government,'jlubject to such conditions"s9'may be specified therein: provided that no officer of a state govternment shall be empowered to exercise any power in relation to a national co-operative society: pro'vided further that no officer of a s~te govern~ent below the 20 rank of the registrar of co-operative soc:cties shan be empowere:l to exercise any power exercisable by the central registrar under section 88, multistate oo-operatwe societies whidl maybe re,iteredo 5 (1) no multi-state co-operative society shall be registered under this act, unless the main aim of the society is such as to render it necessary to serve the interests of members in more than one state 2s (2) subject to the provisions of sub-section (1), a multi-state cooperative society, which has as its aims the promotion of the economic and social betterment of its members through mutual aid in accordance ,with the co-operative principles or a multi-state co-operative, soci&!ty established with the object of facilitating the operations of other such 30 societies or of co-operative societies or of both may be registered under this act (3) the word "limited" or its equivalent ih any indian language shall be su1flxed to the name of every multi-state co-operative society reglsteted under this act with limited liability applicattonfor ree:"'· tratil&: ' 35 6, (1) for the purposes of registration of a multi-state co-operative lociety under this act, an application sha'l be made to the central re'glstrar in such form ~d with such partlculal's as may be prescribed - ,~,!'"~ :(2) the application shall be signe1-(a) in the case of a multi-state co-operative society of which an the members are individuals, by at least ftfty persons; 40 | :     | jfl!1ll    | -    ||--------|------------|------|| ,      | :'"        | ·r: || i: 'i |            |      || ~fr    |            |      || j      | •         |      || -ll    |            |      || 'v,, | ,          |      || r",   |            |      || ~'jl'  |            |      || '     |            |      || !,     |            |      || if     |            |      || jf~   |            |      || -   |            |      || !7;e   |            |      || "or;' |            |      |50 (b) in the case of a multi-state co-operative society pf which the members are co-operative societies, by duly authorised persons,oii behalf of at least two such societies as are situated in more than o~e state; and (c)  in the ease of a multi-state co-operative society of 'which another multi-state co-operative aoclety and' other cooo~atift societies are members, by authorised representatives:of each such societies: provided that such application shall, in relation to co-operative societies, be signed by authorised representatives of not less than two co-operative sociaties from two different states (3) the application slulll be accom~ by a copy of ,the proposed bye-laws of the multi-state co-operative society and the persons by whom or on' whose behalf such, application is' made shall furnish such information in regard to the society as the central registrar may require , , 7 (1) if the central registrar is satwied-,  trauod (a) that the application cqp1plies with the provisions of this act and the rules;' (b) that the' proposed maltilstate' co:operafive 'society satisftes the basic criterion that its aim is such as to render ft !ieeessaty to aerve the interests of members in' more than ode state; 10 (c) that the majority of the individual members do not reside in one state; (d) that there is no other multi-state co-operative 'loc:iety having aimilai" area of operation and identical objectives; (e) that the proposed bye-laws are not contrary to the provi- 15 siems of this act and the rules; and (i> that the proposed multi-state co-operative society nas reasonable prospects of becoming a viable unit; he may register the multi-state co-operative society and its bye-laws (2) where the central registrar refuses to register a multi-state 20 co-operative society, he shall communicate 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 central registrar within a pertoc!l of six months from the date of receipt 25 thereof by him: provided that if the central registrar is unable to dispose of the ap~lication within the period aforesaid, he shall make a report to the centl'al government 'stating the:r,ein the reasoris for his inability to do so, and the central government may allow him such further period or 30 periods as is considered necessary to dispose of such application 8 where a multi-state co-operative society is registered under this act, the central registrar shall issue a certificate of registration signed by him, which shall be conclusive evi:d~nce that the society therein mentioned is duly registerecl under this act, unless it is proved that the 3s registration of the society has been cancelled t (1) no amendment of any bye-laws of a multi-state co-operative society shall be valid, unless such amendment has been registered under this act  (2) every proposal for s1lchamendment shall be forwarded to ttie 40 '0iiital registrar and' it the ,ceatral registrar is watisfted that ·the proped amendment-1amea4-memo! bje-lawi oh multlltatecoaperatlve 1dclet7' (a) is not contrary to the provisions of this act or of the rules; -(b) does not codilict with cq-opel·ative princ;iples; and (c) will promote the economic interests of the mejidbers ot ,tm multi-state co-operative society; he may register the amendment within a period of six months from the ate of! receipt thereof by him: 5 provided that if the central registrar is unable to register the amendment within the period aforesaid, he shall make a report to the ckal governmej)t stating  ther~n the reasons for his inability :to do so, and the central government may allow  him such further period or periods as is considered necessary to register the amendment 10 (3) the central registrar shall forward to the multi-state co-operatiive society a copy of the registered amendment topther w~ a certificate signed by him and such certificate shall be codcluaive ·nldedce that the amendment has been duly registere(i (4) where the central registrar refuses to register an amendment 15 of the bye-laws of a multi-state co-operative society, he shall communicate the order of refusal together with the reasons' therefor to the society' in the manner prescribed withip seven aaysfrom' the date of such refusal 10 an amendment of the bye-laws of a multi~state cd--opet:ative 20 society shall, unle&s it is expressed to, come into operation on a partj  cular day, come into f<>rce on the day on which it is registereci w-  __ of· ,"-eo iaie bee ch-re of· name chan,e of addr  11 (1) a multi-state co-operative society may, by an amendment of 'its bye-laws, change its name but such change shau not affect any right or obligation of the multi-state co-operative society or of any of 25 its members or past members, ancl any l~al proceedings which mi'ght have been continued or commenced by or against the multi-state cooperative society by its former name may be contlhued or codlmeaeed by its new name (z) where a multi-state co-operative society changes 'its name, the 30 centr'al registrar shall enter the; new name on the regtster of multlstate co-operative societies in place of' the former name and shan amend thei certificate of regi'strationaecdrdingly  it every multi-state eo-operativesoclety shall have a principal ~ of business and an address registered in the manner prescribed to wtheh 35 all notices and communications may be seqt and any change in the principal place of business of a multi-state co-operative society sban be made with the previous approval of the central registrar llablut)' 13(1) no multi-state co-operative society with unlimited )iabfllty shall be registered afte1" the cotnmencmten't o~ this aet~ 40 provi<{ed that wqel'e amulti-sta~; co-operative ioci~y whb udlimlte4 liability fuaetilims before the  eom,rnencement of  this act, such societi1  shu exercise the ,option wi1lbina period cd one year from such cojllmencement either to continue to function as such or to convert itaeif into a multi-state co-operative society with lirnted lialj)ility byfollowla, 45 the procedure specified in sulb sections (2) to (4) - , , , ' "   i' (2) subject to thepwvisions of ~ act and thenlel, a mwutate ell-operative society may, by an amendment of its b~ws, c~&e uae extent of its liability (3) when a multi-state co-operative society has passed a resolution ilochange the extent of its liability it shall give notice thereof in wll'iting to au its members and creditors and notwithstanding anything 'contain"" in th,e bye-laws or contract to the contrary, any member or creditor shall, during the period of one month from the date of service of s t~e notice upon him have the option of withdrawing his shares, deposits e~ loans, as the case ma~ be (4) any member or creditor who does not exercise his option withtn the period specified in sub-section (3) shall be deemed to have assented to the change 10 (5) an amendment of a bye-law of a multi-state co-operativ~ society changing ,the extent of its liability shall not be registered or shall not take ,eftect until either-(a) the assent thereto of' all members and creditors has been obtained; or is (b) all claims of members and creditors who exarcise the option referred '"to in ~ub-section (3) within the period' spe~ifted therei~ have been met in full or otherwise satisfied 14 (1) a multi-state co-operative society may, with the prior consultati'on of the central registrar and 'by a resolution passed by a majo- 20 rttyof not less"than two-thirds of the members present and voting at a general meeitlng: of the society,-amal~a­ma  tnnif, 01,:  du&-biliti_ ' 01' diyi-: sion"ot (4) transfer its assets and liabilities in whole or in part to any other multi-state co-operative society or a co-operative society; r: (b) divide itself into two or more multi-state co-operative 2s socie\ies; i ' , mul~i " state cb-, opel'af,ive societle8 (c) divide itself into two or more co-opentive societies  • j'" v {~~ any two or more multi-state co-operative 'societies may, with the prior consultation of the central registrar and by a resolqtion passed by a majority (j,f not less than two-thirds of the members present 30 and voting at a general meeting of ~ach such society, amalgamate themselves and term a new multi-state co-operative society ' (3) the resolution of a multi-sbte co-operative society under tub-1() ': ,(, sectiod (1) cjr sub-section (2) shall contain all particulars of the transfj!r i, " or division or amalgamation, as the case may be: 35 provided that in the case of a co-operative bank, the central registrar shall not accord approval to any such resolution without the previous sanction in writing of the reserve bank ' , (4) when a multi-state co-operative, society has passed a resolution under sub-section (1) or sub-section (2), it shall give notice thereof in 40 writing to au the members and creditors and, notwithitandin'g anything contained in the bye-laws or contract to the ,~ontrary, any member or ereditor shall, during the perioo of one month of the date of service 'of, the 'notice upon him, have the option of withdrawing his sures, deposits ot' loans, as the case may be, 4s (5) any member or creditor whd does not exercise his option within ?,' the period specifted in"sub-sectton (4) shall be deemed to have assented to the pfaposals contained in the resolution (6) (a) a resolution passed by a multi-state co-operative society under this section shall not take effect until the assent thereto of all the members and creditors has been obtained (b) the multi-stat~ co-operative society shall make arrangements for 5 meeting in full or otherwise satisfying all claims of the members and creditors who exercise the option within the period specified in subsection (4) (7) on receipt of an application for the registration of new societies formed by division in accordance with the resolution passed under sub-iosection (1) or of a new society formed by amalgamation in accordance with the resolution passed under sllb-section (2), the central registrar, on being satisfied that the resolution has become effective under subsection (6) shall, unless for reasons to be recorded in writing he thinks fit to refuse so to do register the new societies or society as the case is may be, and the bye-laws thereof (8) on the isisue of an order under sub-section (7), the provisions of section 18 shall, so far as may be, apply to the multi-state co-operative 'society so divided or the multi-state co-operative societies so amalgamated 20 (9) where a resolution passed by a multi-state co-operative society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any law for' the time being in force, be a sufficient conveyance to vest the aasets and liabilities in the transferee without any further assurance '":' , i power~ direct amallama~ or reor", pnisatlon in public interest, etc 2s 15 (1) where the central registrar is satisfied that it is essential in the public interest, or in the interest of the co-operative movement, or for the purpose of securing the proper management of any multistate co-operative society that two or more multi-state co-operative societies should be amalgamated or reorganised, then, notwithstanding 30 anything contained in section 14,' but subject to the provisions 01 this section, the central registrar may, by order, provide for the amalgamation or reorganisation of these societies into a single society or into societies with such constitution, property rights, interests and authorities and such liabilities, duties and obligations, as may be specified 35 in the order: provided that no such order of amalgamation, or reorganisation in respect of a co-operative bank shall be made without the previous sanction ~n writing of the reserve bank (2) no order shall be made under this section unless,-40 (a) a copy of the proposed order has been sent in draft to the multi-state co-operative society or each of the societies concerned; and -; 45 (b) the central registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions and objections which may be received by him within such period (not being less than three months from the date on which a copy of the order aforesaid is received by the ·society or societies, as the case may be), as the central registrar may fix in that behalf, either from the society or from any of the societies 'concerned or from any member or class of members thereof or from any creditor or class of creditors thereof (3) the order referred to in sub-section (1) may contain such incideiltal, comequefttiat' and supplemental provisions as may, in the opinion of the central registrar, be necessary to give effect to the ama~gamati()n, s or reorganisation, as the case may be (4) every member or creditor of each of the multi-state co-operative s~s to be amalgamated, or reorganised, who has objected to the sebelne of amalgamation, or reorganisation, within the period speeiftecl, shatt be entitled to receive, on the issue of the order of amalgamation, 10 or reorg81'lisation, his share or interetrt, if he be a member, m'ld the amount in satisfaetion of his dues, if he- be a creditor ,~~) on the issue of an ord~ unde~) sub-section (1), the provisions of sub-sections (2), (3) and (4) of section 18 shall apply to the multistate co-operative societies so amalgamated, or reorganised, as if the is amalgamation, or reorganisation, had been made under section 14 m when an ;order of moratorium bas been made by the central governmen:t under sub-section (2) of section 45 of the banking regulation act, 1949, in respect of a co·operative bank, the central registrar, 10 of 1949 w~th the previous approval of the reserve bank in writing, may, during 20 the period of· moratorium, prepare a scheme-(6) fo!' the amalgamation of the cooperative bank with any other co-operati\"e 1!oank; or (b) fol' ,the reorganisation of the co-operative bank ,; central belistrar to prepare scheme of amalgamation or reorpnijation of co-opera tlve bankld certaia' e  11 notwithstanding anything contained in sections 14 and 15 or any 25 other provision ·of this act, where a co-operative bank, being an insured bank within the meaning of the deposit insurance corporation act, 198!, :is amalgamated or reorganised and the deposit insurance corpo-47 of 1961 ration has become liable to pay to the depositors of the insured bank liatiijl~ of - co-operative'badk to the deposit lnauranee corporation u~der sub-section (2) of section 16 of that act, the bank with which 30 such insured bank is amalgamated, or the new co-operative bank formed after such amalgamation, or as the case may be, the insured bank or transferee bank shan be under an obligation to repay to the deposit insurance corporation in the circumstances, to the extent and in the manner referred to in section 21 of the deposit insurance corporation 35 act, 1961 11 (l) where the whole of the assets and liabilities of a multistate co-operative society are transferred to another multi-state ,c0-operative society or to a co-operative society in accordance with the provisions of section 14 or section 15, the reg'istration of the first-mentioned 40 multi-"state ~operative society shall stand caneelled and the soc:iety shall be det!med to 'have dt!en dissolved and shall cease to exist u a co~rate body~ (2) where, two or· more multi-et8te co-operative societies are amalaamated into a new multt4tate· co-operati-ve society in acccjrdalice with 45 caneedi-tion at reliatrltiod certift-cite of multistlte cooperative locietles in certald e  the provisions of section 14 or secijod 15, the registration of each of the amalgamating 'societies shau stand cancelled on the registration of the aew society, and each society ~hall be deemed to have been dissolved and shall cease to exist as a corporate body 5 (3) where a multi  state co-operative society divides itself into two or more multi  state co-operativesocieties or two or more eo-operative l'iocwties in accordance with the pmvisions of section 14, theregiatration of that society shall stand cancelled on the registration of the new societies, and that society shall be deemed to have been dissolved and 10 shall cease to exist as a corporate body (4) the amalgamation and splitting of multi-state ce-operative societies shall not in any manner whatsoever affect any right or obligation of the resulting multi-state co-operative society or societies or rellder defective any legal prcx:~dings by or against the multi-state co-is operative society or societies, and any legal proceedings that might have been continued or commenced by ·or against the multi-state co~perative society or societies, as the case may be, before the amalgamation or sputting may be continued or commenced by or against the resulting multistate co-operative society or societies 30 (5) where a multi-state co:operative society has not commenced business within a period of three months of the date of its registration or such extended period as the central regi'drar may allow in this behalf or has ceased to function or if the central registrar is satisfted, after making such inquiry a's he thinks fit, that the society no longer 2s has genuinely as its aim one or more of the objects specified in seetion 5 and that its registration ought in the interest of the general public be (,ilncelled, he shall make an order cancelling the registration of the multistate co-operative s'ociety and the multi-state co-operative society shall, from the date of such order of cancellation, be deemed to be dissolved 30 and shall cease to exist as a corporate body 19 (1) a co-operative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a multi-state o(mjperative society and no such amendment of bye-laws of a co-operative lociety &hall be valid unless it has been registared by the central registrar 35 (2) (a) every proposal for -such amendment shall be forwarded to the central registrar conver-8ion of co-operative society ii,to multistate co-opera· tive society (b) if the central registrar, after consulting the registrar of cooperative societies of the state concerned, has satisfied himself of the need for such amendment under sub-section (2) of section 9, he may 40 register the amendment within a period of six months from the date of receipt thereof by him: provided that if the central registrar is· unable to register the amendment within the period aforesaid, he shall maka a report to the central government stating therein the reasons for his inability to do so, 45 and the central government may· allow him such further period or pl!rlods as is considered necessary to register· the amendment (3) the central registrar sh'lllforward to: the co-operatfve· society a copy of the registered amendment together with a certi~ate signed by him and such certificate shall beconrlusive evidence that the amendso mat bas been registered (4) where the central registrar refuses to register an amendmeht of the bye-laws of a co:operative society, he shall communicate the order cf refusal together with the reasons therefor to the society in the manner prescribed within seven days £rom the date of refusal  (5)  (a) once the amendment of bye-laws has been registered by the' 5 'central registrar, the co-operative sociaty shall, as from the date of registration of amendment, become a multi-state co-operative society (b) the central registrar shall forward to the co-operative society a certificate signed by him to the effect that such society has been registered ,\1 as a multi-sltate co-operative society under this act and also forward a 10 copy of the same to the registrar of co-operative societies of the state concerned (e) the registrar of co-operative societies referred to in clause (b) shall thereupon make an order directing that the society had, as from the date of registration by the central registrar, ceased to be a society is under the law relating to co-operative societies in force in that state  chapter iii members of multi-state co-opera'live societies and 'l'he:ir rights and liabilities20 (1) no person shall be admitted as member of a multi-state co-20 operative society except the following, namely:-persons who  become members (a) an individual competent to contract under section 11 of the indian contract act, 1872; 9 of 1872, (b) any multi-state co-operative society or any co-operative society; (c) the central government; (d) a state government; (e) the national co-operative development corporation established under the national co-operative development corporation act, 1962; 30 26 of 1962 (f) any other corporation owned or controlled by government; (g) any government company as defined in section 617 of the companies act, 1956; of 1956 (h) such class or classes of per'sons or association of persons as may be permitted by the central registrar having regard to the 35 nature and activities of a multi-state co-operative society (2) notwithstanding anything contained in sub-section (1), no individual shall be eligible for admission as a member of any national cooperative society: provided that such number of individutis possessing such qualifica- 40 tions as may be prescribed may be admitted as members of the national co-operative union of india limited (3) any person eligible for membership in a multi-state col'"operative society may, on application, be admitt£-d as a member by such society (4) every application for admission as a member of a multi-state co-operative society shall be disposed of hy such society within a period of six months from the date of receipt of the application, and the decision of such society on the application shall be communicated to the applicant s within fifteen days from the date of such decision: provided that if the decision is not communicated within a period of six months from the date of receipt of the application, the multi-state co-operative society shall be rleemed to have made a decision on the date of expiry of such period, refusing admission to the applicant 10 (5) notwithstanding anything contained in this section, the government may, having regard to the fact that the interest of any person or ciasls of persons conflicts or is likely to conflict with the objects of any multi-state co-operative society or class of multi-state co-operative societies by general or special order published in the official gazette, is declare that any person or class of persons engaged in or carrying on any profession, bus8ness or employment shall be disqualified from being arbnitted, or for continuing, as members or shall be eli'gjbie for membership only to a limited extent of any specified multi-state co-oper'ltive society or class of multi-state co-operative societies, so long as such 20 person or persons is or are engaged in or carrying on that profession, business or employment, as the case may be 21 (1) notwithstanding anything contained in clause (e) or clau'se (i) or clause (g) of sub-section (1) of section 20, a multi-state co-operative society may admit any person as a nominal member in accordance with 2s in: bye-laws (2) a nominal member shall not be entitled to any share in any form whatsoever in the assets or profits of the multi-state co-operative society (3) save as otherwise provided in this section, a nominal member 30 shall have such privileges and ri'ghts of a member, and be subject to such liabilities of a member, as m~y be specified in the bye-laws of a multistate co-operative society 22 no member of a multi-state co-operative society shall exercise the rights of a member, unless he has made such payments to the society 3s in respect of membership or has acquired such interest j'l the society as may be specified in the bye-laws members not to exerclle rilbta un due payment made 23 (1) a multi-state co-operative society may, by resolution passed expulby a majority of not less than two-thirds of the members present and ~~~=ra voting at a general meeting of members held for the purpose, expel a - 40 member for acts which are detrimental to the proper working of the lociety: provided that the member concerned shall not be expelled unless he bas been given an opportunity of making representation in the matter (2) no member of a multi-state co-operative society who has been 45 expelled under sub-section (1) shall be eligible for re-admission as a member of that society, or for admission as a member of any other multi-tate' co-operative society for a period of two years from the date ot such expuj1on: vow of memben provi4ed that the central registrar may, on application of - mulu-state co-operative society and in special circumstances, sanction the readmission or admission within the said period, of any such member u, ,a member of the said society or of any other multi-state co-operative foeiety, as the case may be s 14 every member of a multi-state co-operative' society, tncludtnl a a :member who is an employee of such society, shall have one vote in the affairs of the society: provided that-(a) a member who is an employee of such society shall not be 10 entitled to voie-(i) at an election of a member of the board of such society, other than an election referred to in section 35; (ii) in any general meeting convened for framing the byelaws of such society or any am('ndments thereto; is (b) in the ca'se of an equality of votes, the chairman shall have a second or casting vote; (e) a nominal member shall not have the tight to vote; (d) where any of the authorities referred to in clauses (c) to (g) of sub-section (1) of section 2() is a member of a multi-ltate :ao co-operative society, each person nominated by such authority, on the board of directors, in accordance with the provisions contained in this act and the rules shall have one vote; manner ofexercil1d8 vote (e) a multi-state co-operative society, the members of which include co-operative societies or other multi-state co-operative so- 25 cieties, may provide for an equitable system of voting 25 (1) every member of a multi-state co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy (2) notwithstanding anything contained in sub-section (1), a multi- 30 state co-operative society or a co-operative society which is a member of another multi-state eo-operative society, may, subject to the rules, appoint one of its members to 'vote on its behalf in the affairs of that other society  • no member, other than any of the authorities referred to in cla- 35 user (c) to (g) of sub-section (1) of section 20 or a multi-state co-operative society or a co-operative society shall,-rntrlotiona on holdinl ofahlr- ca) hold more than such portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed, or (b) have or claim any interest in the shares of the society exceetling ten thousand rupees: provided that the central government may, by notification, specify in respect of any class of societies a higher or lower maximum than one-fifth of the share capital or as the ease may be, a higher or lower 45 amount than ten thousand rupees 2'1 the transfer of the share or interest of a member in the cajrltal of a multi-state co-operative society shall be subject to such conditions as to maximum, holdin~ as are specified in section 26 " rejtrlo tiona on tra!e of iharei or mterelt 21 • ~hql'e& held in a multi-state co-operative society by any of the authorities r~ferred to in clauses (c) to (g) of sub-section (1) of section 20 shall be redeemable in accordance with the bye-laws of such multi~ state co-operative society and in a case where the bye-laws do not con~ s tain any provision in this regard, in such manner as may be agreed upon between a multi-state co-operative society and such authority tran_ ofint-on death of membera 29 (1) on the death of a member a multi-state co-operative society may transfer the share or interest of the deceased member to the person nominated in accordance with the rules made in this behalf or, if there 10 is no person so nominated, to such person as may appear to the board to be the heir or legal representative of the deceased m(wber, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest as ascertained in accordance with the rules: 15 providecf that no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, so; the case may be (2) a multi-state co-operative society shall, unless within six months of the death of the member prevented by an order of a competent court, 20 pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the sodety (3) all transfers and payments made by a multi-state co-operative society in accordance wi~h the provisions of this section shall be valid and effectual against any demand made upon the society by any other 25 person 30 (1) subject to the provisions of sub-section (2), the liabwty ot a past member or of the estate of a deceased member of a multi-state co-operative society for the debts of the society as they existed,-:-liabll1ty of put member and estate of decealed membet (0) in the case o~ a past member, on the date on which he 30 ceased to be a member; (b) in the case of a deceased member, on the date of his death, shall continue for a period of two years from such date (2) where a multi-state co-operative society is ordered to be wound up under section 78, the liability of a past member who ceas8d to be a 35 member or of the estate of a deceased member who died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed, but such liability' shall extend only to the debts of the society as they existed on· the date of cessation of membership or death, as the case may be  chapter ivddu!:ction and management of multi-state co-operative societds 31 (1) the general body of a multi-state co-operative society shall consist of all the members ot such society: genen1 body, conatitu  tion ' poweri and tunetiom provided that where the· bye-laws of a multi-atate co-operative society  , provide for the constitution of a smaller body consisting of delegates of memberl of the society elected or selected in accordance with such byelawi, the small body shall exercise such powers of the general body al  , ~ prescribed or as may be specified in the bye-laws of the society (2) where in any meeting of the general body or the board of - multi-state co-operative society, a c(h)perative society or another multistate co-operative society is to be represented, such co-operative society or other multi-state co-operative society shall be represented in such meeting only through the chairman or the chief executive of such co-5 operative society or other multi-state co-operative society, as the case may be, and where there is no board of such co-operative society or other multi-state co-operative society for whatever reasons, through the administrator, by whatever name called, of such co-operative society or other multi-state co-operative society 10 (3) the general body of a multi-state co~perative society shall have the following powers, namely:-(a) consideration of the audit report and annual report; (b) disposal of net profits; (c) approval of the programme of activities for the ensuing year; is (d) amendment of bye-laws; (e) eleclion, if any, of the members of the board, other than nominated members, subject to the provisions of section 37 32 (1) every multi-state co-operative society shall, within a period of nine months after the close of the year, call a general meeting of its 20 members in the manner prescribed: annual pneral meeting of the general body provided that the central registrar may, by general or special order, extend the period for holding such meeting for a further period not exceeding three months: provided fur1;her that if in the opinion of the central registrar no 25 such extension is necessary or such meeting is not called by the multistate co-operative society within the extended period, if any, granted by him, the central registrar or any person authorised by him in this behalf may call such meeting in the manner prescribed, and that meeting shall be deemed to be a general meeting duly called by the society and the 30 central registrar may order that the expenditure incurred in calling such a meeting shall be paic\ out of the funds of the society or by such person or persons who, in the opinion of the central registrar, was or were responsible for the refusal or failure to convene the general meeting (2) at every annual general meeting of: a multi-state co-operative 35 society the boa~d shall lay before the society a statement showing the details of the loans or goods on credit, if any, given to any of the members of tile board or to the spouse or a son or daughter of a member of the board during the preceding year or outstanding against him or against such spouse or son or daughter of the member of the board 40 specia1 general meetln, of tire general body 33 (1) the chief executive of a multi-state co-operative society by whatever designation called, may, at any time, on the direction of the board, call a special general meeting of the society and shall call  such meeting within one month after the receipt of a requisition in writing from the central registrar or from such number of members or a pro- 45 portion of the total number of members, as may be provided in the byelaw •• (2) if a special general meeting of a multi-state co-operativ8 society is dot called in accordance with the requisition referred to in sub-section (1), the central registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be 5 deemed to be a meeting called by the chief executive in accordance with the provisions of that sub-section and the central registrar may order that ilie expenditure incurred in calling such meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion 'of the central re(istrar, was or were responsible lor the 10 refusal or failure to convene the special general meeting &ard of directors, 34 subject to the provisions of this act and the rules, there shall be a board of directors for every multi-state co-operative society consisting of such number of members as may be provided for under the bye-laws 35 (1) «(i) there shall be reserved in such class of multi-state co-is operative societies, as may be prescribed, such number of seats as are mentioned in sub-section (2) to represent the employees of a multi-state co-operative society on the boal'd of such society (b) in prescribin'g the class of multi-state co-operative societies under clause (a), the central government shall have due regard to-r'epresentation of worker on the board of a multi-tate co-ope_ rative society, disquali fication fora member of a board, 20 (i) the nature and activities of a multi-state co-operative society; (ii) the number of persons employed by such society; and (iii) any other relevant factor (2) the number of seats to be reserved under subsection (1) shall be-- ,i  ,, i (a) if the number of members of the board of a multi-state cooperative society is eleven or less-one seat; and (b) if the number 01 such members is twelve or more--one additional seat for every ten members over and above the first eleven members: 30 provided that the maximum number of seats reserved under this sub-section shall not exceed two (3) the seats reserved under this ~tion shall be filled by election from amongst employees of a multi-state co-operative society 36 no member of any multi-state co-operative society or nominee 35 of a member-society on a national co-operative society shall be eligible for being chosen as, or for being, a member of the board of directors 01 luch multi-state co-operative society or national co-operative society or of any other co-operative society to which the multi-state co-operative society is affiliated, if such member-45 so «(i) is a minor or has been adjudged by a competent court to be illiolvent or of unsound mind; , (b) is concerned or participates in the profifa of any contract with the society: (c) has been convicted for an otlence involving moral turpitude (d) holds any o1jice or place of profit under the society: provided that the chief executive, by whatever desipation called, or a person who is in full time employ of a multi-ltate c0-operative society and holding such office as may be notified by the cej:ltral government in the official gazette from time to time or a person elected by the employees of such society to represent ~m on the board of such society shall not be deemed to bold otilce or place of proat under sw:h society; (e) has been a member of the society for less than twe1~ months immediately preceding the date of such election or appointment; (1) has interest in any business of the kind carried on by the society of which he is a member; s (g) who has taken loan or goods on credit from the society of which he is a member, or is otherwise indebted to such society and after the receipt of a notice of default issued to him by such society, has defaulted-(i) in repayment of such loan or debt or in payment of the 10 price of the goods taken on credit, as the case may be, within the date fixed for such repayment or payment or where such date is extended, which in no cas~ shall exceed six months within the date so extended, or (ii) when such loan or debt or the price of goods taken on 15 credit is to be paid in instalments, in payment of any instalment, and the amount in default or any part thereof has re,;-mained unpaid on the expiry of six months on and from the date of such default: provided that a member of the board who has ceased to hold 20 office as such urder this clause shall not be eligible, for a period of one year from the date on which he ceased to hold office, for reelection as a member of the board of the multi-state co-operative society of which he was a member or for election to the board of any other multi-state co-operative society; 25 (h) is a person against whom any amount due under a decree, decision or order is pending recovery under this act; (i) is employed as a legal practitioner on behalf of or against the multi-state co-operative society, or on behalf of or against any other multi-state co-operative society which is a member of the former 30 society ezplan4tion-for the purposes of this clause, "legal practitioner" has the same meaning as in clause (i) of sub-section (1) o~ section 2 of "the advocates act, 1961; h elll1l (;) is a nominal member; 35 (k) bas been sentenced for any offence under this act 17 (1) the superintendence, direction and control of the prepuatioa of dl8 eledorai rolls fo:, add the conduct of, elections of the member of the board of such jdulti •• tate co-operatlv,u societies or class of ibwu-state ~tive societies a the central government may by geaeral or 40 spedal order, notify, shall be vested in such returning otbcers as may be appobded by the central reeistru hi this behalf (2) the vote at sueh elections shall be by lecret ballot (s) the term of oftice of the elected members of the board shall be uch, not exceeding thirty-six months from the date of election, as may 4s be ijpeeifted in the bye-laws ofi a multi-state co-operative society: ·hovid8cl that the elected members shall continue to hold otbce till ~·,~cellor are 81ec:ted' or nominated under the provisions 'of thii aft or the rul or the bye-laws (4)& peraon ihall be eligible to be elected  ,&mm- ,"0&" ,he _d of a multi-state co-operativat society udle  he 11 a m-n~at ~ pural body of tbat soc~ety (5) the g:>vernment may make rules generally to provide for or to ~ regulate matters in respect of elections of members of the board holdlal ofollce in cooperative ioclet7 88 notwithstanding anything contained in this act, no person ahall be eligble to hold office of a president, vice-president, chairman of vice-chairman, or such other office, as may be prescribed, on the board of more than one national co-operative society, other than the ntio~ 10 co-operative union of india limited: provided that any person holding, at the commencement of this act, the otiice of a president, vice-president, chairman, or vicec:bairmad, or such other office, as may be prescribed, in more than one national co-operative society shall, within three months from such com-is mencement by notice in writing signed by him, intimate the name of the national co-operative society in which he wishes to serve and thereupon his office in the other national co-operative societie:o in which he does not wish to serve shall become vacant: provided further that in default of such intimation within tbe period 20 referred to in the preceding proviso, his offices in all the national co-operative societies shall, at the expiration of the period aforesaid, become vacant-39 no person shall be eligible to hold the office of a president, vice-president, chairman, or vice-chairman or such other office, as may restrictions on holdinlor office ~s be prescribed, on the board of a multi-state co-operative society, after he has held all or any of the offices as aforesaid during two consecutive terms, whether full or part: provided that a person who has ceas~d to hold all or any of the offices as aforesaid continuously for one full te,'m of three years shall again be 30 eligible for election to any of the offices aforesaid explanat'ion-where any person holding any of the offices as aforesaid at the commencement of this act is again elected to that ofbce 01' any other office as aforesaid after such commencement, he shall fior the purpose of this sub-section, be deemed to have held office for one term before 35 such election pa,t of h0norarium 40 honorarium may be paid to the elected chairman or president of the board of directors out of the profits of the multi-state co-operative society in respect of specific services rendered by him, subject to such restrictions and conditions as may be prescribed ,11 an elected member of a board who has acted adversely to the 40 interests of a multi-state co-operative society may, on the basis of a report from the central registrar or otherwise, be removed from the board upon a resolution of the general body passed at its meeting by a majority of not ley than two-thirds of the members present and voting at the 4s~' ,;'  removal of elected membera by ,-enera! body, - d: iffn ipite of cessation of olftce under cireumstanees mentioned in dion 38 or section 38 or section 39 or section 41 a member of the board refuses to vacate his office, the central registrar shall, by order in writing, remove him from such oftice jltiuval at mad-ber by central regiatrar nominee ol central govemmentor state government on the board of multistate cooperative locieties 43 (1) where the central government or a state government has 5 subscribed to the share capital of a multi-state co-operative eociety to the' extent of not less than one-third but not more than two-thirds thereof or has guaranteed the repayment of principal and payment of interest 011 debentures issued by a multi-state co-operative society or has guaranteed the repayment of principal and payment of interest on 10 loans and advances to a multi-state co~operative society, the central government or the state government, as the case may be, or any person authorised by the central government or the state government in this behalf shall have the right 'to nominate on the board such number of persons not exceeding three, or one-third oil the total number of mem  15 bers thereof, whichever is less, as the central c':rovernment or the state government may determine (2) where the central government or a state government has subscribed to t'-le share capital of a multi-state co-operative society in excess of two-thirds of the total share capital of the multi-!;tate co- 20 ,operative society, the central government or the state government, as the case may be, or any person authorised by the central government or the state government in this behalf shall have the right to nominate up to one-half of the total number of members of the board, or five, whichever is less ' 25 (3) the bye-laws of a multi-state co-operative society may provide for the nomination of persons in excess of the limits indicated in subsection (1) or sub-section (2) (4) a person nominated under this section shall hold office during the pleasure of the central government or the state government, as the 30 case may be if the board of directors of a multi-state co-operative society shall have the following powers, namely:-(a) to admit members; power of the board of multi-"tate eooperative locietlee (b) to interpret the organisational objectives and set up speci- 35 fic goals to be achieved towards these objectives; (c) to make required changes in the long-term objectives and plans; (d)' to make periodic appraisal of operations; (e) to appoint a chief executive and such other employees of 40 the society as are not required to be appointed by the chief executive;  (/) to make rl,lles regulating the appointment of employees of the multi-state co~operative society and the scaler of pay, allowances and other conditions of service of such employees; 4s (9) to constitute 'such committees as are required from time to time, subjeot ttl the pnmsiod& of section 48 meetings of the board - 45 (1) the chief executive shall convene the meetings of the board at the instance of the chairman or president of the multi-state co-- ')perative society (2) the board shall meet once in every quarter, provided that the s total number ot meeting>; of the board shall not exceed six in a year (3) the meetings of the board of the multi-state co-operative' i'lociety shall ordinarily be held at the registered office of such society chief executive 46 (1) there shall be a chief executive, by whatever designation callen, of every multi-state co-operative society, to be appointed by the 10 board of directors and he shall be a full-time employee of such multistate co-operative society (2) the chief executive shal1 be a member of the board of directors and of the executive committee and such other committees or subcommittees as may be constituted under sub-section (1) of section 48 is 47 the chief executive shall exercise the powers and discharge the funct:ons, specified below, namely:-powers and functions of chief executive (a) day-to-day management of the business of the multi-state co-operative society; (b) operating the accounts of the multi-state co-operativ<:? society 20 and be responsible for making arrangements for safe custody of cash; (or) signing on the documents for and on behalf of the multi-state co-operative society; (d) making arrangements for the proper maintenance of 25 various books and records of the multi-state co operatlve society and for the correct preparation, timely submission of pcr,iodical statements and returns in accordance with the provisions of this act ~hc rules and the bye-laws; (e) convening meetings of the general body the hoard of 30 directors and the executive committee and other committees or sub-committees constituted under sub-section (1) of section 48 and maintaining proper records for such meetings; (f> making appointments to posts in the multi-state co-operative society in accordance with the rules made under clause (f) of section 35 44 except the posts in relation to which the power of appointment vests in the board under clause (e) of that section; (g) assisting the board in the formulation of policies and objectives and planning; (h) furnishing to the board periodical information necessary 40 for appraising the operations and functions of the multi-state cooperative society; (i) performing such other duties, and exercising such other powers, as may be prescribed or as may be specified in the bye-laws of the multi-state co-operative society committee of the board 4s 48 (1) the board of a multi-state co-operative society may constitute an executive committee and other committees or sub-committ~es, as may be ~:msidered necessary: provided th:lt the number of such other committees or 5ulj-;qmmitteell constituted under this sub-section sh~~ n'?~ ~!c;~~g two (2) the executive committee or other committee or sub-comnuttee referred to in sub-section (1) shall perform such functions as are assigned to it in accordance with the bye-laws oil the multi-state co-operative society  | super    ||----------|| aion of  || board    |49 (1) if in the opinion of the central registrar the board of any multi-state co-operative society persistently makes default or is negli-s gent in the performance of the duties imposed on it by this act or the rules or the bye-laws or commits any act which is prejudicial to the interest of the society or its members or that there is a stalemate in -the constitution or functioning of the board, the central registrar may, after giving the board an opportunity to state its objection's, if any 10 and considering the objections if received, by order in writing remove the board and appoint one or more administrators, who need not be members of the society, to manage the affairs of the society for such period not exceeding one year, as may be specified in the order, which period may, at the discretion of the central registrar, be extended from time is to time, so, howev~r, that the aggregate period does not exc,"ed two years (2) the central registrar may fix such remuneration for the administrator, as he may think fit and the remuneration shall be paid out of the funds of the multi-state co-operative society (3) the administrator shall, subject to the control of the central 20 registrar and to such instruction's as he may from time to time give, have power to exercise all or any of the functions of the board or of any officer of the multi-state co-operative society and take all such actions as may be required in the interest of the society (4) the administrator shall, before the expiry of his term of office, 25 arrange for the constitution of a new board in aceordance with the bye-laws of the multi-state co-operative society (5) if at any time during the period the administrator is in office, the central registrar considers it necessary or expedient so to do, he may, by order in writing giving reason's therefor, direct the adminis- 30 trator to arrange for the constitution of a new board for such multistate co-operative society in accordance with the bye-laws of sucb society and immediately on the constitution of such board, the administrator shall hand over the management of such society to such newly constituted board and cease to function 35 (6) where a multi-state co-operative society is indebted to any nnancing institution, the central registrar shall before taking any action under sub-section (1) in respect of that society consult the financing institution (7) notwithstanding anything containe:! in this act, the central 40 registrar shall, in the case of a co-operative bank, if so required in writing by the reserve bank in the public interest or for preventlng the aftairs of the co-operative bank being' conducted in a manner detrimental to the interests of the depositors or for securing the proper management of a co-operative bank, pass an order for the supersession 4s of the board of that co-operative bank and for the appoinlment of an administrator therefor for such period or periods not exceedinj;( five years in the aggregate as may f-rom time to time be specifl ~d by the reserve bank securln, poaseasion of record  etc 50(1) if-(a) the recoms (including registers and books of accounts) of a multi-state co-operative sociaty are likely to be tampered with or destroyed and the funds or other property of such society are likely to be misappropriated or misapplied; or s 10 (b) the board of a multi-state co-operative society is reconstituted at a general meeting of the society or the board of a multi-state cooperative society is removed by the cantral registrar under subsection (1) of section 49 or if the multi-state co-operative society is ordered to be wound up under section 78 and the outgoing members of the board refuse to hand over charge ot the records and property of the society to those entit~ed to raceive such charge the central registrar may apply to the magistrate within whose jurisdiction the multi-state co-operative society functions for securing i s the records and property of the society (2) on receipt of an application under sub-section (1), the magistrate may by a warrant, authorise any police officer not below the rank o~ a sub-inspector to enter and search any place where such recor~s ~md property are kept or are believed to be kept and to seize such 20 records and property; and the records and property so seized shall be handed over to the new board or· administrator of the multi-state cooperative society or the liquidator, as the case may be 51 the government shall-(a) constitute a body of persons in the manner prescribed for the preparation of a list of persons eligible for appointment to the posts of chief executives and other management posts in national co-operative societies, the maximum pay-scale of which exceeds such amount as may be prescribed; constitution of body of person for preparationot list, etc (b) make rules for regulating the recruitment remuneration, 30 al~owances and other conditions of, service of officers and other employees of national co-operative societies 52 no act of a multi-state co-operative society or of any board or of any officer of the society shall be deemed to be invalid by reason only of the existence of any defect in the procedure or in the constitution of 3s the society or of the board or in the appointment or election of an officer or on the ground that such officer was disqualified for his oftice act of multistate co-operative iocielie not to be invalidated by·cer_ tain defecta  cilapter vmultistate cooperative society til be body corporate : char •• and set-of! piu:vileges of multi-state co-operative socie'l'ij!'s 53 the registration of a multi-'state co-operative society shall 40 render it a body corpora~e by the name under which it is registered having perpetual succession add a common seal, and with power to hold property, enter into contract, instit~~ and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted 45 54 a multi-state co-operative, society shall have a charge on the share or contribution or interest in the capital and on the deposits of a member or past member or deceased member and on any dividend, in respect of share or contribu-  twn or interest of members bcnus or profits payable to a member ox: past member or the estate of a deceased member in respect of any debt due from such member or past member or the estate of such deceased member to 'he society, and may set-off any sum credited or payable to a member or put member or the estate of deceaserl member in or towards payment of any such s debt share or contribution or interest dot liable to attachment 55 (1) subject to the provisions of section 54, the share or contribution of· interest of a member or past member or deceased member in the capital of a multi-state co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of 10 any debt or liability incurred by such member, and an official assignee or a receiver under any law relating to insolvency shall not be entitled to or have any claim on such share or contribution or interest  (2) the reserve fund, or the bad debt reserves, or the provident fund of the emp10yees, of a multi-state co-operative society invested by such is society in accordance with the provisions of this act and the rules shall not be liable to attachment under any decree or order of a court'in respect of any debt or liability incurred by the society register of members 56 any register or list of members or shares kept by any multistate co-operative society shall be p1'ima facie evidence of any of the 20 following particulars entered therein, namely:-(a) the date on which any person entered in such register or list became a member; (b) the date on which any such person ceased to be a member 57 (1) a copy of any entry in a book of a multi-state co-operative 25 society regularly kept in the course of its business shall, if certified in !ouch manner as may be prescribed, be received in any suit or legal pro-admisaibility of copy of entry as evidence ceedin~ as prima f·acte evidence of t:te (xistence 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 30 )riginal entry itself is admissible (2) no officer of a multi-state co-operative society and no officer in whose office the books of a multi-state co-operative society are deposited dter liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any 3s 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, transaction's and accounts therein recorded, except under an order of a court or an arbitrator made for a spacial cause 58 nothing in clauses (b) and (e) of sub-section (1) of section 17 40 of the registration act, 1908, shall apply t~ 18 at 1108 (ti) any instrument relating to shares in a multi-state cooperative society notwithstanding that the assets of the society c!onsist in whole or in part of immovable property; or exemp_ tion from compulsory re-,istration of instruments (b) any debenture issued by any such society and not creating, 4s declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so tar as it entitles the holder thereof to the security afforded by a regrstered 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 5 of such debentures; or  11:) an endorsement upon or transfer of any debenture issued by'ny such society 59 (1) notwithstanding anything contained in any law for the time being in force, a member of a multi-state co-operative society may 10 execute an agreement in favour of that society providing that his employer disbursing his sala'ry or wages shall be competent to deduct every month from the salary or wages payab!e to him, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the 15 member to the society deduction from salary to meet multi-iitateco_ operative society's claim in certain cases, (2) on the execution of such agreement, the employer disbursing the salary or wages of· the members shall, if so required by the multi-state co-operative society by a requisition in writing and so long as the socie,y does not intimate that the whole of such debt or other demand has been 20 paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society, as if it were a part of the salary or wages payable on the day as required under the payment of wages act, , of 1936 1936 and such payment shall be valid discharge of the employer for his liability to pay the amount deducted 25 (3) if after the receipt of a requisition made under sub-section (2) the employer disbursing the salary or wages of the member at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the multi-state co-operative society, 30 the society shall be entitled to recover any such amount from such em ployer as arrears of land revenue and the amount so due from such employer shall rank in priority in respect of the liability of such employer equal to that of the salary or wages in arrears 60 notwithstanding anything contained in any law for the time being in force, the central government or a state government may, with a 35 view to promoting co-operative movement:-government aid to multistate c0-operative socletlea (i) subscribe to the share capital of a multi-state eo-operative society; (ii) give loans or make advances to a multi-state eo-operative soeiety; (iii) guarantee the repayment of principal and payment of interest on debentures issued by a multi-state co-operative soeiety; (iv) guarantee the repayment of share capital of a multi-state eo-operative society add dividends thereon at such rates as may be specified by the central government or the state govel'llltl8nt; (u) g1iu'ilntee the repaymeat of principal and payment ot mienst en loans and advances to a multi-state co-operative society; (vi) give finaaeial assiltance in any other form, including subsidies, to any multi-state co-operative society  chapter vi properties and funds of multistate co-operative societies61 no part 0£ the funds, other than net profits, of a multi-state coaperative society shall be divided by way of bonus or diviciend or otherwise distributed among its members funds not to be divided byway of pro& 62 (1) a multi-state co-operative society shall, out of its net profits 10 in any year-disposal of net profits (a) transfer an amount not less than twenty-five per cent to the reserve fund; and (b) credit such portion, as may be prescribed, to the c0-operative education fund maintained by the national co-operative is union of india limited (2) subject to such conditions as may be prescribed, the balance of the net profits may be utilised for all or any of the following purposes, namely:-(a) payment of dividend to members on their paid-up share 20 capital at a rate not exceeding the prescribed limit; (b) constitution of, or contribution to, such special funds including education funds, as may be specified in the bye-laws; (c) donation of amounts not exceeding five per cent of the net profits for any purpose connected with the development of co- 2s operative movement or charitable purposes as defined in section 2 of the charitable endowments act, 189()j and 8 of 1890 (d) payment of ex gratia amount to employees of the multi-state co-operative society to the extent and in the manner specifted in the bye-laws (3) the funds of a multi-state co-operative society shall not be 30 utuilied for any political purpose 63 a muiti-st~te co-operative society may invest or deposit its funds-(a) in the post office savings bankj or inveatment of funds (b) in a co-operative bank, state co-operative bank, co- 35 operative land mortgage bank, co-operative land deve:opment bank or central co-operative bank; or (c) in any of the securities specified in section 20 of the indian trusts act, 1882; or 2 of 1_ (4) in the shares or securities of any other multi-state co-opera- 40 tive society qr anycooperative society; or (e) in the shares, ~ecurltis or assets of any other institution, with the previous approval of the central registrar; or (f) with any bank explanation-in this clause, "bank" means any banking company as defined in clause (c) of section 5 of the banking regulation act, 1949, and includes,-5 10 of 1949 (a) the state bank of india constituteti under the statt bank of india act, 1955; z3 of 19~5 (b) a subsidiary bank as defined in the state bank of india (subsidiary banks) act, 1959; 38ol1958 10 (c) a corre<;ponding new bank constituted under section 3 of the banking companies (acquisition and transfer of undertakings) act, 1970; or 6 of 1970 (g) in any other mode permitted by the rules 15 64 (1) a multi-state co-operative societv other than a co-operative bank, shall not make a 108n-restric_ tion on loans (a) to a member on the security of his share or on the security of a non-member; or (b) to a non-member: 30 provided that with the general or special sanction of the central registrar 0 multi-state co-operative society may make loans to another multi-state co-operative society (2) notwithstanding anything contained in sub-section (1), a multistate co-operative society may make a loan to a depositor on the securitv 25 of his deposit 65 a multi-state co-operative society shall receive deposits and jorns only to such extent and under such conditions as may be specifted in the bye-laws: restriction, on borrowin, provided that a co-operative bank shall be governed by the pro-10 of 1949 30 visions of the banking regulation act, 1949 66 save as provided in sections 64 and 65, the transaction of 8 multlstate co-operative society with any person other than 8 member shall be subject to such prohibitions and restrictions, if any, as may be prescribed r'estrictiona oil other transactions with non-membua contrl1natory provident fund 6'1 (1) a multi-state co-qpel'ative society ,having such number or 35 class of employees as may be prescribed may establish 8 contributory pro\rtdent fund for the benefit of such employees to which shall be credited all contributions made by the employees and the society in arrordance with the bye-laws of the society (2) contributory provident fund established by a multi-state co-40 operative society under sub-se~tion (1) shall not-(a) be used in the bu8in~s of the society; (b) form part of the assets of the society; (c) be liable to attachment or be subject to any other proeea fill' uy court or other authority  chapl'er vii audit dlquiry inspection and surchargeaudit 10 68 (1) the central registrar shall audit, or caus~ to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every multi-state co-operative society at least once s in each year (2) the audit under sub-section (1) shall include an examination of overdue debts, if any the verification of the cash balance and securities, and a valuation of the assets and liabilities of the multi-state co-opcrative society (3) the person auditing the accounts of a multi-state co-operative society shall have free acce"s to the books, accounts, papers, vouchers, stock and other property of such society and shah be allowed to verify its cash balance and securities (4) the directors, managers, administrators and other officers of the is multi-state co-operative society shall furnish to the person auditing the accounts of the society all such information as to its transactions and working as such person may require (5) the central registrar or the person authorised by him under subseo::tion (1) to audit the accounts of the multi-state co-operative society 20 shall have power, where necessary-(a) 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 give valuable information in il"ep,'ard to transactions of the society or the management of its affairs; and 2s (b) to require the production of any book or document re;ating to the affairs of, or any cash or securities belonging to, the society by any officer, agent, servant or member of the society in possession of such books, documents, cash or securities and h the event of serious irregularities discovered during audit, tn take them into 30 custody (6) if at the time of audit the accollntc:; of a multi-state co-operative society are not complete, the cen~ral registrar or the person authoriseci by him under sub-section (1) to audit may cause the accounts to be written up at the expense of the society 3s (7) audit fee, if any, due from any' multi-state co-operative society shall be determined by the central registrar and shan be recoverable in the same manner as is provided in section 90 69 (1) the central registrar or any person authorised by him by general or special order in writing in this behalf mry ins,ect a multi- 40 state co-operative society (2) (0) for the purpose of inspection under subsection (1) the central registrar or the person authorised by him under that sub-section shall at all times have access to all books, accounts, papern, vouchers securities, stock and other property of that society and may, in the event of 45 serious irregularities discovered durin!:! inspection take them into custody and shall have power to verify the c1:::h balance of the sodcty and subjeci to the general or special order of the central registrar to call & board meeting and a general meeting inquiry by central reglstrw ~b) ···,evei)' oiioer or member of the multi-state co-operative society  sbail fw'llish such information with reprdta the working of the society as the central registrar or the person making such inspection may require   st • (1) the central registrar may, of his own motion or on the application of a majority of the members of the board or of not less than onethird of the members, hold an inquiry or direct some person authorised by·hiza by order in writiqg in this behalf to bold an inquiry into th~con­stitutionf working and financial condition of a multi-state co-operative 10 society~ (2) ·'the central' registrar· or' the pers6n authorised by him under sub-section (1) shall have the following powers, namely:-(4) he shall at all reasoaable times have free access to the books, accounts, r\ocuments, securities, cash and other propert1el belonging to or in the custody of the multi-state co-operative society 8d4 may· summon any pel'son· in possession or responsible for the · -custody of any such books; accounts, documents, securities, cash (\r other properties to produ(!e the same, at any place specified by him: 20 (b) he may, notwithstanding any rule or bye-law specifying the period of notice for a general meeting of the multi-state co-operative society, require the officers of the society to call a ~emeral meeting at lucbtime and place  at the headquarters of the society to consider · sueh matters, as may b~ directed by him; and where the oftlcers q1 the society refuse or fail to·callsuch a meeting, he shall·have powei · tocall it himself; (c) he may summon '~ny person who is reasonably believed by him to have any knowledge of the atlaill's of the multi-state co-operative society to appear before hlm at any p~ace at the headquarters of the society or any branch thereof and may examine such person on 30  oath    (3) any meeting called under elause (b) of sub-section (2) shall hav~  art the powers of a general n;ieeting called under the bye-laws of the~ociety and its proceedings shall be regulated by ~uch bye-laws :(4) the central registrar shall corrimunicate a briet summary of the 3s report of the· inquiry to the multi-state eooperative society, the financing imtttuttons, if any, to which the society· is aftlliated, and to the persoll or authority, if any at whose instance the inquiry is made   ' 71; (:l)the central registrar shall on ~ application of a creditor of ainulti-state co-operative society, inspect, or direct some  person autho--40 rised by hini by order in writing in this behaa to inspect, the books of the society: inspec tion of boob of indebted multi- ,: '"  " : state co-'~pj~~ _that nq~ sucb ins~ojl shall be made unless the applic!lll~,  opentlve ("ot '  - '   - sodetles -i:  -(cal  tilfies the central ·  trar that the debt· is ~ sum then - ;  ·tmit be-has dalnadded p8\yutejrt:tllenm and hu ndt r~eiyed  -4s satisfaction within a reasonable tinli;::i8i1d;:'! :  ':  : :l (b) deposits with the central registrar such sum as ecurttr for the costs of the proposed inspection as the central registrar mq require (2) the central registrar shall communicate the result of any sucb inspection to the creditor 5 coate of inquiry and inapaction 72 where an inquiry is helt\ under section 70 or an inspection is made under section 71, the central registrar may apportion the costs, or sucb part of the costs, as he may think fit between the multi-state eo-operative society, the members or creditor demanding an inquiry or inspeetlon, and' the officers or former officers and the members or past members ot 10 that society: provided that-(ci) no order of apportionment of the costs shall be made ladder this section unless the society or the person liable to pay the ~oats thereunder has had a reasonable opportunity of being heard; is (b) the central registrar shall state in writing under his own hand the grounds on which the costs are apportioned recovery of eost • '13 any sum awarded by way of costs under section 72 may be recovered, on application to a magistrate having jurisdiction in the place where the person, from whom the money is claimable, actually and vol- :ao untarily resides or carries on business, and such magistrate shall recover the same as if it were a fine imposed by himself surchal'le '14 (1) if in the course of an audit inquiry, inspection or the winding up of a multi-'state co-operative society it is found that any person, who is or was entrusted with the organisation or management of irleh 25 society or who is or has at any time been an oftlcer or an employee of the society has made any payment contrary to this act, the rules or the byelaws or bas caused any deftciency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society, the ceo· 30 tral registrar may of his own motion or on the application of the board, liquidator or any creditor inquire himself or direct any person authori· seu by him, by an order in writing in this behalf, to inquire into the conduct of such person: provided that no such inquiry shall be commenced after the eac:pir:r 3s of six years from the date of any llet or omission referrt!d to in thtl subsection (2) where an inquiry is made under sub-section (1), the central registrar may, after giving the person concerned an opportunity of ·belnc heard make an order requiring him to repay or restore the money or - property or any part thereof with interest at such rate, 01' to pay contribution antt costs or compenaatiod to such extent, at the central  irar may clonalder just and equl1ab1 •  ,  ihun?75 (1) notwithstanding anything contained in any law for the time being in force, if any dispute (other than a dispute regarding disciplidary s action taken by a multi-state co-operative society against its paid employee or an int\usuial diapute as defined in clause (k) of seetlou 2 of the industrial disputes act, 1947) touching the constitution, management or business of a multi-state co-operative society ariaes-(4) among membera, past members and perlons claiming through 10 members, past members and deceaseti members or (b) between a member past member or person claiming through a member, past member or deceased member and the multi-state co-operative society its board or any oftlcer, agent or employee of the multi-state co-operative society ot' liquidator, past or present or 15 (e) between the multi-state co-operative society or its board and any pa~t board, any officer agent or employee, or any past offtcer, past agent or past employee or the nominee, heirs or leaal representatives of any deceased ofticer deceased agent, or deceased employee of the multitate co-operative soetety, or 20 (d) between the multi-state co-operative society and any other multi-state co-operative 8oc!lety, between a multi-state co-operative society and liquidator of another multi-state cqiooperative society or between the liquidator of one multl-state co-operattve society and the liquidator of another multi-state co-operative society, as such dispute shall be referred to the central registrar for decision and no court shalj have jurisdiction to entertain any suit or other proceed ings tn respect of such dispute:  provic'ted that all disputes in which a national co-operative &ociety is a party ,;hall be referred to the centnl registrar appointed under sub-)0 section (1) of section 4  (2) for the purposes of ub-aec:tion (1), the following shall be deemed to be disputes touchfn~ the constitution, management or the bustness of a multi-state co-operative society, namely:-(4) a claim by the multt-atate co-operative society for any debt )5 nr demand due to it from a member or the nominee, heirs or legal repre&entatlves of a dec-eaaed member, whether such debt or demand be acbnltted or not; (b) a claim by a surety against the princi1)a1 debtor where the  0 multi-state co-operative society has recovered from the surety any amount in respect ot any debt ot' demand due to it from the princlpal debtor as a result of the default of the princlnal debtor whether iuch debt or demand is admitted or !lot; (el any dispute arisln~ in connection with the election of any nibcer of a multfoo!ltate l'o-opet'ath'e society (3) if any question arises whether '8' dispute referred to the central registrar is or is not,a dispute touching the constitution, management or business of a multi-state co-operative· society, the decision thereon of the central registrar shall be final and shall not be called in question s in 'any court 36 of 1881, : ~; ',!t" 78, (1) notwithstanding anything containe;!d in the limitation act, 1963, but subject to the specific provisions· made in this act, the, p8i1od of limitation in the case of a dispute referred 'to· the centr~ r~strar shali-·  (i) when th~ dispute relates to the r~covery of any sum including 10 interest thereon due to a ·inulti-statee·ooooperative society by ii member thereof, be computed from the date on which such member dies or ceases to be a member of the s~iety;   (ii) save as otherwise provided  in clause (iii), when the dispute relates to any act or omission on the part of any of the parties is referred to in clause (b) or clause '(c) of sub-section (1) of section 75, be six years from ijle date on which the act or omission with reference to which the dispute arose took place; , (iii) when the dispute rela to·a multi-state co-operative society which baa been ordered to·be wound up udder section 78 or ~o in respect of which an administratol' has been appoilited under section 49, be six years from the date of the order issued under section 78 or section 49, as the case may be; (iv) when the dispute ill in 'mpect of ali· election of'·an, officer of a multi-state co-operatl"e aoeiety, be ofte1nonth' from the· date of 2s the declaration of the l'e!iiult" of the election, ' (2) the period of limitation in the case of an" other dispute except those mentioned inlluq-section (ll which are required to be ,refel"l'ed ~ the central re~stt'81" sh,n be rerulated bv the pmvisions of the limf: tation act 1963 as if the dispute was a sl,lit and tqe central· registrar 30 18 of llmll a civil court,  (3) notwfthilta";iiin~ aj'1vthfn~:(!ontained in sub-sections (n and (2), the central reaistraj" may admit a disrmte· a1ter tbfl! expiry 0' the l'eiiod of limitation jf the applicant liatisfipii the centr,f renirtrar that'iie  had sufficient cause for not referrinr the di/;pute within such perion and the 35 ,  dispute '50 a~mittt>d "liall be'a dfsdut,e whfch ql;nn oot be ·barred on the -p,tonndthitt the perlod (if limitation hrc! e;fpfrei:l   ",: '17 (1) the central registrar may on receipt of the reference ('if ~ispute under section '15-:-settle idtdt of dllputel, (6) eleet to decide' the dipute himaelf; or - ~ 40 (b) transfer it for dfboosat to anvnthpl"ner!'nn who ha5 been invested by the central government with power~;n thrt behalf (2) the central relristrar rnav withdraw rnv reference  transferred under clause (1)) of· sub-:3ection (1) and decide it himself 01' 'refpr th~ , ifame for decisicm to anv· otheroel'son ,who  hal'; bcen ,investedb,v the 1'45 cantral govermnejlt with ~wers in-that behalf,-'', " (3) the central resnst""' or an'v ether ·"p"s(ni to whorl; ·8 '~i~utp is referre{l for ~ecision llnder thf~ sectinn mrv, pp'"d;ntj the ciecisfon of the fttsput, ma-k;, !lucb fn1:'@rlncl1tnry ·ord~~s ·~s he mav·~~m n~~s9r~ in the int,:,re'~t of ,ustic'p, '       - $0  chapter ix windinc lip 01' multt-8!fate co-operative socijc1'lbswindiq up of multistate cooperative societies ''l8 (l) if the central registrar after an inquiry has been held und:r section 70 or an inspection has been made under section 71, or on receipt $ of an applicauon made by not less than three-fow-ths of the members of a multi-state co-operative society is of -opinion tilat, the society ought to be wound up be may, alter giving the society an opportunity of making ita representations, by order, direct it to be wound up (2) the central registrar may, of 'his cwn motion and after giving 10 the multi-state co-operative soc:ety an opportunity of ml:lking its representations, make an order directing the winding up of the multi-state cooperative society-(ti) where it is a condition of the, l't:gistration' of the society that the society shall consist ,of at least fifty members and the number of members has been reduced to less than fifty; or is (b) where the multi-state co-operative society has not commenced working or has ceased to function in accordance with cooperative principles (3) the central registrar may cancel an order for the winding up of 30 a multi-lstate co-operative society, at any time, 'in any case where,ln his opinion, the society should continue to exist 47, 1961 (4) a copy of such order shall be communicated by registered post to the society and to the 'financing institutions, if any, of· which the aciety is a member 25 (5) notwithstanding anything contained in this section, no co-operative  bank shall be wound up except with the previous sanction in writing of the reserve bank ti notwithstanding anything to the contrary contained in this act the central registrar shall make an order for winding up of a co-opera-30 tive bank, if so required by the reserve bank in the circumstances mentioned in section 13d of the deposit insurance corpolation act, 1961 47f 1961 windin, up of cooperative bank! at the direction of reserve bank relm_ bul'iementto thedepolilt insurance corporation' b, liquidator ro where a co-operative bank bein~ an in!lurerl bank within the meaning of the deposit insurance corporation act 1961 is wound up or taken into liquidation and the deposit insurance corporation has become 3s liable to the depositors of the insured hank unde!r sub-section (1) of section 16 of that act the depoait insurance corporation shall be reimbursed by the liquidator or such other person in' the circumstances to the extent and in the manner provided in section 21 of the deposit insurance corporation act 1961 liquidator 81 (1) where the central registrar has made an order under l'iection 40 78 for the winding up of a multl-state co-op':!rative society the central registrar may appoint a liquidetor for tftepurpose and fix his 'l'emuneration (2) a liquidator shall on appointmen~ take into his custody or under his control all the property, effect!! and actionable claims to which the 4 s multi-state co-operative 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 damage to, such property effects and claims and he may carry on the business of the multi-state cq-operat!ve ~ocjety so' far as , ~8v hp neceasw:v with the previous approval of'the central hegistrar (3) where an appeal is preferred under clauae (1) of sub-sectloll (1) of section 91, an order for the wfnding up of a multi-state co-operative society made under section 78 shall not operate thereafter until the order is confirmed in appeal: provided that the liquidator ahall continue to have custody or control s of the l>roperty, effects and actionable claims mentioned in sub-aec:tlon (2) and have authority to take the steps referred to in that sub-section (4) where an order for the winding up of a multi-state co-operative society is set aside in appeal, the property, effects and actionable claims of the society shall re-vest tn the society ' 10 | powers    ||-----------|| liquld-  || lor      |82 (1) subject to any rules mane in this behalf, the whole of the assets of a multi-state co-operative society in respect of which an oreter for winding up has been made, shall vest in the liquidator appointed under section 81 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise 15 (i) such liquidator shall also have power, subject to the control of th!! central registrar-(a) to institute and defend suits and other legal proceedings on behalf of the multi-state co-operative society by the name of hla ~~; ~ (b) to determine from time to time the eontributlod (incluc\ing debts due and costs of liquidation) to be made or tel'ilaining to be made by the members or past members or by the estates or nomlnees, heirs ot legal representatives of deceaad members or by any oiicers f1it former officer a, to the assets of the multi-state co-oper~ 2s tive society; (c) to investigate all claims against the multi-state co-operative society and subject to the provisions of this act to decide questions of priority arising between claimants; (d) to pay claims against the multi-state co-operative society 30 including interest up to the date of winding up according to their respective 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 applil"d in payment of interest from the (\ate of such order f)f winding up at a rate fbrpd by him hut not exceeding the 3s contract rate in any case; (e) to determine by what persons and in what proportions the costs of the liquidation are to be borne; (f) to c1etermine whether any person isn member, past member or nominee of a deceased member; 40 (g) to -give such directions in regard to the collection and distribution of the assets of the society as may appear to him to be necessary for winding up the affairs of the multi-state co-operative sodety; (h) to carry on the business of the multi-state co-operative society so far 81!11 may be necessary for the beneficial winding up of the 45 same; (i) to make any compromise or arrangement with creditors or persons claiming to be creditors or having or alleging to have, any claim present or future, whereby the multi~!:tate co-operative society may be rendered liable: so (;) to make any compromise or arrangement with any person between whom and the multi-state co-operative society there exilts any dispute and to refer any such dispute for decision; (k) after consulting the members of the multi-state co-opera-5 tive society, to dispose of the surplus, if any, remaining after paying the claims against the society, in such manner as may be prescribed; (l) to compromise all calls or liabilities to calls and debts and liabilities capable of resulting in debts, anet all claims, present or future, certain or contingent, subsisting or alleged to subsist, bet-10 ween the multi-state co-operative society and a contributory or alleged contributory or other debtor or person apprehending liability to the multi-state co-operative society anet 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 take any security for the dis-is charge of any such call, liability, debt or claim and give a complete discharge in respect thereof (3) when the affairs of a multi-state co-operative society have been wound up, the liquidator shall make a report to the central registr,ar anet deposit the records of the society in such place as the central regis-20 trar may direct 83 the surplus assets, as shown in the report of a liquidator of a multi-state co-operative society which is wound up,-displlsal of surplu aslletl (a) may, if the bye-laws of the multi-state co-operative society specify the purpose for which surplus shall be utilised be utilised 25 by the central registrar for the said purpose, and (b) if the bye-laws aforesaid do not specify the purpose, be diviried by the central registrar, with the previous sanction of the central government, amongst the members of such multi'iotatc cooperative society in such manner as may be prescribed priority of contributions 30 84 notwithstanding anything contained in any law relating to insolvency, the contribution assessed by a liquidatot shall rank next to debts due to the central government or a state government or a local authority in order of priority in insolvency proceedings 35 85 (1) the central registrar may, after 'contlidering the report of the liquidator made to him under sub-section (3) of section 82, order the  registration of the multi-state co-operative society to be caneelled (z) an order passed under sub-section (1) shall be communicated by reaistered post to the president of the multi-state co-operative society and to the financing institutions, if any, of which the society was a mem-40 ber asses~ by uquidator power of central registrar to cancel registra_ tion of i multistate cooperative society  chapter xexecution of dilcrees, orders and decision • every decision or order duly made under section 32, section 33 section 74 section 77 section 91, section 93 or section 94 shall, if not 45 carried out,-execution at decision • pte (a) on a certificate signed by the central registrar or any per-~n authorised by bim in writioi in this behalf, be deemed to be a decree of a civil court and shall be executed in the same" miriner as a decree of such court, or (b) where the decision or order pro\l'ides for the recovvy of ·'tiiodey, be execu~ according to the law for the tim being in fo-te for the recovery of arrears of land revenue: provided that any application for the recovery in such manner s of any sum shall be made-(i) to the collector and shall be accompanied by a certificate signed by the central registrar or by any person authorised by him in writing in tl'is behalf; (ii) withi~ twelve years from the date fixer! in the decision o·r order and if no such date is fixed, from the date of the 10 decision or order, as the case may be; or (c) be executed by the central registrar or any person authorise:! by him in writing in this behalf by attachment and sale or sale without attachment of any property of the person or a multi-etate co-operative society against whom the decision or order has been 15 made 87 every order made by the liquidator under section 82 shall be executed according to the law for the time being in force for the recovery of arrears of land revenue 88 (1) where the central registrar appointed under sub-section 20 (1) of section 4, or any officer invested with powers under the second proviso to sub-section (2) of that section, is satisfied that a party to any reference made to him under section 75 with intent to defeat or delay the execution of any decision that may be passed thereon is about to-(a) dispose of the whole or any part of the property; or 15 (b) remove the whole or any part of the property from its exist· ing precincts, the central registrar may, unless adequate security is furnished direct conditional attachment of the said property or such part thereof as he thinks necessary 30 (2) the attachment unner sub-section (1) shall be executed bya civil court having jurisdiction in the same way as an attachment order passed by itself and shall have the same effect as such order 88 the central registrar or any person authorised by him in writids in this behalf shall be deemed, when exerclsing any pow~rs under this m 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 made to him for such recovery or for taking a stepin-aid of weh recovery, to be a civil court for the purposes of article 116 of the schedule to the limitation act, 1963 central reiiswt·· or the person authorised by him to be civil court for certain pur poses recovery of aumt due to· govern· ment 10 (1) all sums duefromamulti-state co-operative society, or from an officer or member or past member of a mulu-etate co-operative society as such, to the central government or a state government, including -diy cost awarded to the central government or the state government,  the ease-may be, under any provision of this act, may, on a certiftcate ilsued 4~ by thie centra!' registrar' in this behalf be recc,vered in the same ft'iift  nel' as arrms of land revenue  (2) sums due from a multi-state co-operative society to the central government or a state government and recoverable under sub-section (1) may be recovered firstly from the property of the society and secondly from the members, past members or the estates of deceased members s subject to the limit of their liabllity: - provided that the liability of past members and the estate of deceased members shall in all cases be subject to the provisions of section 30  chapter xi appeus and rilvision10 91 (1) subject to the provisions of section 92, an appeal shall lie appeals under this section against-(a) an order made by the centrlll registrar unr\er sub-section (2) of section 7 refusing to register a multi-state co-operative society; (b) an otder made by the central registrar under sub-section is (4) of section 9 refusing to register an amendmenl of the bye-laws of a multi-state co-operative society; (c) an order made by the central registrar under sub-section (1) of section 15; (d) a decision of a mutti-state co-operative society refusing to 20 admit any person as a mem}ler of the society who is otherwise dulv qualified for membership· under the bye-laws of the society; (e) a decision of a multi-state co-operative society expelling any of its members; (f) a decision of a multi-state co-npel'ative society l'emovlng 8ft 2s elected member of a bonrd under section 41; (g) an order made by the central registrar under section 42; (h) an order made by the central registrar under section 49 superseding the board of directors of a multi-state co-operative s0-ciety; (i) an order made by the central registrar under section 72 apportioning the costs of an inquiry held under section 70 or an inspection made under section· 71; (;) an order of, surcharge under section 74; 3s (k) a decision (iii' order made under section 77; (lr an order made by the cfmtral ~lpstrar under section 78 directing the winding up of a multi-state co",operative society; (m) an order made by the liquidator of a mult4-state co-op erative society under section 82; (n) an order under section 88 directing attachment· of propert, before award (2) an appeal against any deciaion or order under sub-section (j) shall be made within sixty days from the date of such decision or order-(4) if the decision or order was mac\e by the central registrar, to the prescribed authority; (b) if the decision was made by a multi-s'tate co-operative s society (other than a national co-operative society), or a liquidator of such society, to the registrar of co-operative societies of the state in which the society has its registered office and who is empowered to exercise the powers of the central registrar under sub-section (2) of section 4i or 10 (c) if the decision was made by a national co-operative society ar a liquidator of such society, to the central registrar appointed under sub-section (1) of section 4 ~) in disposing of an appeal under this section, the appellate authority may, after giving the parties an opportunity of making their repre- is sentations, pass such order thereon as that authority may deem fit (14) the decision or order of the appellate authority on appeal shall be final 9z notwithstanding anything contained in this act, where with the previous sanction in writing of, or on requisition by, the reserve bank- 20 (i) a co-operative bank is being wound upi or no appeal or re-yiiion in certain e  (ii) in respect of which a scheme of amalgamation or reorganisation is given effect toi or (iii) in respect of which an order for the supersession of the board and the appointment of an administrator therefor has been 2s made, no appeal, revision or review thereagainst shall lie or be permissible, and the sanction or requisition of the reserve bank shall not be liable to be called in question 93 (1) subject to the provisions of section 92, the central govern- 30 ment may, of its own motion or on an application, call for and examine the records of any proceedings in which no appeal lies to the appellate authority under section 91 f<)r the purpose of satisfying itself il's to the legality or propriety of any decision or order made under this act and if in any case it shall appear to the central government that any such?s decision or order snould be modified, annulled or revised or remitted for reconsideration, the central government may, after giving the party to be affected thereby an opportunity of being heard, pass such order thereon as it may deem fit: : provided that the application to the central government for the exer- 40 dse of the power under this section shall be preferred within ninety days from the djate on which the decision or order to which the appucation relates was communicated to the applicant (2) the central government may suspend the execution of the decision or order pending the exercise of its power under sub-section (1) in 5 respect thereof (3) the central government may award costs in proceedings under this section to be paid out of the funds of the multi-state co-operative society concerned or by such party to the application for revision as the central government may deem fit 10 m (1) the appellate authority under section 91 may on the appli-review cation of any party interested review its own order in any case and pass in reference thereto such order as it thinks fit: protvided that no such application shall be entertainedllnless the appellate authority is satisfied that there has been a discovery of new and is important matter or evidence which after exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when the order was made or that there has been some mistake or errotr apparent on the face of the record or for any other sufficient reason: 20 provided further that no such order shall be made under this subsection unless notice has been given to all interested parties and they have been afforded a reasonable opportunity of being heard (2) an application for review under sub-section (1) by any party shall be made within thirty days from the date otf communication of the order of the appellate authority sought to be reviewed 25 95 where an appeal is made under section 91 or where the central interlo-government calls for the records of a case under section 93 the appellate cutory authority or the central government, as the case may be, may, in arder order  to prevent the ends of justice being defeated, make such interlocutory orders, including an order of stay, pending the decision of the appeal or 30 revision as such authority or the central government may deem fit  chapter xii socdties wldch become :mtjlti-state cd-opbrative socibtibs cohsrql1en'r on reorganisation of states37 of 1956 co-opera tive societtea functioningimmediately before reorganisation of statel 35 96 (l) where by virtue of the provisions of part ii of the states reorganisation act, 1956, or any other enactment relating to reorganisation of states, any co-operative society which immediately before the day on which the reorganisation takes place, had its objects confined to one state becomes, as from that day, a multi-state co-operative society, it 40 shall be deemed to be a multi-state co-operative society registered under the corresponding provisions of, this act and the bye-laws of such society, shall, in so far as they are not inconsistent with the provi'sions of this act, continue to be in force until altered or rescinded   (2) if it appears to the central registrar or any officer authorised in this behalf by the central government (hereafter in this section re-45 ferred ta as the authorised offtcer) that it is necessary or expedient to reconstitute or reorganise any society referred to in sub-section (1), the central registrar or the authorised officer, as the case may be, may, wiua the previous approval of the central government, place before a meetinj of the general body of that society, held in such manner as may be prescribed,' a scheme for the reconstitution or reorganisation, including proposals regarding--(a) the formation of new multi-state co-operative societies and s the transfer thereto, in whole or in part, of the assets and liabilities of that society, or (b) the transfer, in whole or in part, of the assets and liabilities cd that society to any other multi-state co-operative society in existence immediately before the date of that meeting of the general body 10 (3) if the scheme is sanctioned by a resolution passed by a majority of the members' present at the said meeting, either without modifications or with modifications to which the central registrar or the authorised officer agrees, he shall certify the scheme and upon such certification, the scheme shall, notwithstanding anything to the contrary contained in any is law, regulation or bye-118m for the time being in forcc, be binding on all the societies affected by the scheme, as well as the shareholders and creditors of all such societies (4) if the scheme is not sancticllled under sub-section (3), the central registrar or the authorised officer may refer the scheme to such judge of 20 the appropriate high court, as may be nominated in this behalf by the chief justice thereof, and the decision of that judge in regard to the £cheme shall be final and shall be binding on all the societies affected by the scheme as well as the shareholders and creditors of all such societies expalanation-in this sub-section, "appropriate high court" means the 2s high court within whose jurisdiction the principal place of business of the multi-state co-operative society is situated (5) notwithstanding anything contained in this section, where a scheme under sub-section (2) inc!udes any proposal regarding the transfer of the assets and liabilities of any multi-state co-operative society re- 30 farred to in clause (b) thereof, the scheme shall not be bindlng on the existing multi-st~te co-operative society or the shareholders and creditors thereof, unless the proposal regarding such transfer is accepted by the existing multi-ita~ co-operative society by a resolution passed b'y a majority of the members present at a meeting of its general body 3s  chapter xiii offences and penaltiesofteocea 97 (1) a multi-state co-operative 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 40 summons, requif!tion or lawful written order issued under the provisions of this act, or wilfully not furnishing any information required from him by a person :mtborised in this behalf under the provisions of this act, shall be punishable with fine which may extend to two hundred rupees (2) any employer who, without sufficient cause, fails to pay to a multi- 4s state co-operative society the amount deducted by him under section 59 within a period of fourteen days from the date on which such dqductiod is made, shall, without prqcjuciice to any action that may be taken against him under any law for the time being in force, be punishable with fine which may extend to five hundred rupees (3) any oftlcer or custodian who wilfully fails to hand over eustody of books, accounts, documents, records, 'cash, security and other property belonging to a multi-state co-operative society of which he is an officer or custodian, to a person entitled under section 50, section 68, section 69, 5 section 70 or section 81 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 f()r the first such breach 10 98 (1) no court inferior to that of a metropolitan magistrate or a judicial magistrate of the first class shall try any offence under this act cognizanceof offence (2) no prosecution shall be instituted under this act without the previous sanction of the central registrar and such sanction shall not be given without giving to the person concerned a reasonable opportunity to 15 represent his ca~e chapter xiv  miscellalodus99 every multi-state co-operative society shall keep a copy of this act, the rules and its bye-laws and also a list of its mem~rs, open to 20 inspection free of charge at all reasonable times at the registered address of the society 100 (1) notwithstanding anything contained in this act, the central government jnfly, by general or special order, for !reasons to be recorded therein, and subject to such conditions, if any, as may be specified there-25 in, exempt any multi-state co-operative society or class of such societies from any of the requirements of this act relating to registration (2) (4) the central government may, by general or special order and for ;reasons 1:01 be recorded therein,-copy of act, rules, and bye-laws, etc, to be open to inspection power to exempt multistate co-operative societies from conditions as to registration (i) exempt any multi«ate co-operative society or any class of 30 such societies from any ot the provisions of this act or of the rulesj or (ii) direct that such provisions shall apply to such socie1iy or class at societies with such modifications not affecting the substance thereof as may be specified in the order: provided that no order under sub-clause (14) shall be made so as to 35 prejudice the interests of such society or class of such societies without an opportunity being given to make representation in the matter (b) every order made under clause (4) shall be published in the official gazette liquidator to be public servant igi any person appointed as liquidator under the provisions of this 40 act shall be deemed to be a public servant within the meaning of section 45 of 1860 21 of the indian penal code ii 'j02no suit shall be" instituted against a "multi-state co-operative so-notice necessary in suill ~iety or any of its officers in respect of any act touching the constitution, management or the business of the 80ciety until the expiration of ninety 45 days next aiter notice in writing has been delivered to the central registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaint;ff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left 103 the provisions of the companies act, 1956 shall not apply to multi-state co-operative societies 2 of 1912 6 of 942 " companies act not to apply savingot f!xistinl multi state co-operative societies 1m (1) every multi-state co-operative society existing immediately before the commencement of this act which has been registered under s the co-operative societies act, 1912 or under any other act relating "to co-operative societies in force in any state or in pursuance of the" provisions of the multi-unit cb-operative societies act, 1942, shall be deemed to be registered under the corresponding provisions of this act, ana the bye-laws of such society shall, in 'so far as they are not inconsistenl with 10 the p'rovisions of this act or the rules, continue, to be in force until altered or rescinded (2) all appointments, rules and orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the acts ref-erred to in sub-section (1) shall, in so far as they are not in-15 consistent with the provisions of this act, be deemed to have been respectively made, issued and instituted under this act, save that an order cancelling the registration of a multi-state co-operative society made under the said act shall be deemed, unless the society has already been finally liquidated, to be an order made under section 78 for its being 20 wound up power to amend second schedule 105 (1) if the central government is satisfied that any multi-state cooperative society should be designated as a national co-operative society or any national co-operative society listed in the second schedule should be omitted from the said schedule, it may, by notification, amend the 2s said schedule so as to include therein such multi-state co-operative socaety or exclude therefrom such national co-operative society, and thereupon the said schedule shall be deemed to have been amended accordingly (2) a copy of every notification issued under sub-section (1) shall be 30 laid before each house of parliament as soon as may be, after it is issued 106 (1) save as opterwise provided in this act, no court shall have any jurisdiction in respect of-| bar      ||----------|| isdicuon || of       || courts  |3s (a) the registration of a multi-state co-operative society or its bye-laws or of an amendment of the bye-laws; (b) the removal of board of directors; (c) any dispute required under section 75 to be referred to the central registrari and (d) any matter concerning the winding up and the dissolution of a multi-state co-operative society 40 (2) while a multi-state co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against the liquinator as such or against the society or any member thereof, except by leave of the central registrar and subject to such terms and conditions as be may impose 4s (3) save as otherwise provided in this act, il()i decision or order made under this act shall be· questioned in any court on any ground whatsoever powers of civil court ,"  -----  107 (1) in exercising the functions conferred on him by or under this act, the central registrar, or any other person deciding a dispute under section 77 and the liquidator of a multi-state co-operative society so and a pel'loj1 entitled to audit, inspect or hold 'an inquiry unr\er this act, shall have all the powers of a civil court, while trying a suit, under the code of civil procedure, 1908, in respect of the following matters, namely:-s (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of any document; (c) proof of facts by affidavits; and (d) issuing commissions for examination of witnesses 10 (2) in the case of an affidavit, any officer appointed by the central "registrar, or any other person deciding a dispute or the liquidator, as the case may be, may administer the oath to the deponent 108 no suit, prose:ution or other legal proceedings shalll;e against ildcmnit)' the central registrar or any person subordinate to him or acting is on his authority in respect o£ anything in good faith done or purporting to have been done under this act 109 (1) notwithstanding anything contained to the contrary in any opening of law relating to co-operative societies in force in a state, a multi-state cobranch_ operative society, not being a co-operative bank, may open branches or 20 places of business in any place in india (2) where a multi-state co-operative society opens branches or places of business under sub-section (1), such branches or places of business shall not be within the jurisdiction of the registrar of co-operative societies of the state concerned and shall not be requilfed to submit 2s returns and information to such registrar 110 (1) the central government may, by notification, make rules to carry out the purposes of this act power to make rules (2) in particular, and without prejudice to the generality of the foregoing power such rules may provide for all or any of the following 30 matters, namely:-3s (i) the form to be used" and the conditions to be complied with in the making of applications under section 6 for the registration of a multi-state co-operative society and the procedure in the matter of such applications; (ii) the procedure and conditions for change in the extent of - the liability of a multi-state co-operative society under section 13; (iii) the matters in respect of which a multi-state co-operative society m9y or shall make bye-laws and the procedure to be followed in making altering and abrogating bye-laws under section 9 or section 19 and the conditions to be satisfted prior to such making, ","' alteration or abrogation; (iv) the conditions to be complied with under section 20, by persons applying for admission or admitted as members for the election and admission of members and the tlllvment to be made and the interest to be acquired before the exercise of the right of membership; 4' (1') the number of individuals who may be admitted as members of the national co-operative union of india limited, as requirel! by section 20 and their qualifications; (~i) the votes of members, as required by section 24; (vii) the maximum number of shares or portion of the capital of a multi-state co-operative society which may, subject to the provisions o£ 'section 26, be held by a member; (viii) the constitution and powers of a representative general s body under section 31;  (iz) general meetings of the members under section 32 and the procedure at such meetings and the powers to be exercised by such meetings; (x) the proportion of individuals and multistate co-operative 10 societies in the constitution of the board c;lf directors and '{he general body; (:ri) the election of members of the boards under section 35 or section 37 and nomination of members to such boards, the appointment or election of officers and the suspension and removal of the is members and other officers, and the powers to be exercised and the duties to be performed by the boards and other officars; (xii) the designation of any office which a person may hold in a multi-state co-operative society for the purposes of 'section 38 or sec-~~ ~ (xiii) the restrictions and conditions subject to wjiicfi honorarium may be paid under section 40 to the elected chairman or president of the board ofi directors for services rendered; (xiv) the appointment and regulation of work entrusted to person or persons replacing the board in pursuance of section 49; 2s (xv) the constitution of a body of persons under section 51 for the preparation of a list of persons eligible for appointment to the posts of chief executives and other management posts in naiionat co-operative societies and the amount of the maximum pay-scale applicable to such posts; , " 30 (xvi) the recruitment, remuneration allowances and other conditions of service of officers and other employees o~ national cooperative societies under section 51; (xvii) prohibiting a multi-state co-operative society from electing a defaulting member, or a representative of defaulting member- 3s society, on its board; , (:wiii) the returns to be submitted by a multi-state co-operative society to the central regfbtrar, the persons by whom and the form in which such returns !?hall be submitted and in case of failure to submit any such returns, the levy of expenses of preparing it; 40 (=) 'the persons by whom and the form in which copies 01 entries in books of multi-state oo-operative societies may be certified under section 57 and the charges to be le\9iied for the suppfy of such copies; (xx) the appointment of persons for settlement of disputes; 4s (z:ri) the proced,\lre to be followed in proceedings before the central registrar or other persons decidinjl! disputes including the appointment of a guardian for a party to the dispute who is a minor or who, 'by reason of unsoundnes-; of mind or mental inftr- so mity, is incapable olf pt'otect;njl! his interests, and the levy of p'\-penser :rp\ating to such proceeding$; (z3:u) ,the withdrawal and expulsion of members and the payments, if any, to be made to members who withdraw or are expelled and the liability of past members or the estates of deceased members; s 10 (zziii) the mode in which 'the value of a deceased member's share or interest shall be ascertained and the nomination of a person to whom such share or interest may be paid or transferred; (zziv) the payments to be made and conditions to be collltplied 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: 15 30 (zzv) the terms and conditions on which the central government may make share-capital contribution or give financial or other aaristance to multi-state co-operative societies under secti'lll 60 and the terms and condiotions on which the central government may guarantee the payment of the principal or interest on debentures issued by multi-state co-operative societies or loans or deposits raised by them; (xm) the formation and maintenance of reserve funds an! other funds under section 62 and the objects to which such fim4i may be applied, and the investment of any funds under the control of a murti-state co-operattve society under section 63; (zzvii) the conditions under which proftts may be distributed under section 62 to the members of a multi-state co-operattve s0-ciety and the maximum rate of dividend which may be paid by muilti-state co-opera'tive societies; (zzviii) the prohibitions and restrictions subject to which multi-6tate co-operative societies may, under section 66, transadt butriness with persons who are ndt members; (xrl-:) the accounts and booko; to be kept by a multi-state co-operative society 'and the audit of such accounts, and the, charges, if any, to be made for such audit under section 68, and the periodical publica'tion of a balance-sheet showing the assets and jiabilities of a multi-state co-operative society; 35 (xxx) the calculation and writing off of bad debts by multi  state co-operative societies; (xxxi) the procedure to be followed by a liquidator appointed under section 81 in respect of provisions of section 82; 45 (~zzii) the procedure for execution of decisions under section 86; (z:rziii) the procedure to be followed in presenting and disposing of appeals under section 91; (xxxiv) the issue and service of processes and for proof of service thereof; (xxzvr) the manner of effecting a1tachment; (xzzvi) the clustody, preservation and sale of property under attachment; (xx-rvii) the investigation of claims by penons other than the defaulter to any right or inte1"est in the attached property, and ,'the postponement of sale pending such investigation; <zzmii) the immediate sale of perishable articles; (zz:t"b:) the inspection of documents in the office of the central registrar or of any other officer or authority and the levy of fees for 'granting certified copies of the same; (rl) the manner in which funds may be raised by a multt- s state clo-operative society or a class of multi-state co-operattve societies by means of shares or debentures or otherwise and the auantum of funds so raised; (rli) the procedure under section 96 for reconstitution and re-' organisation of societies which become multi-state co-operative so-10 i' cietfes consequent on reorganisation of a s't8lte; (zui) the method of communicating or publishing any decision or order required to be communicated or published under this act or the rules; (xliii) all other matters expresrly required or allowed by this is act to be prescribed by rules (3) every rule made under this 'section shall be laid as soon as may he after it is made, before each house of parliament, while it is in session, for a total period of thirty days which may be comprised in one seufon or in two or more successive sessions, and if, before the expiry 20 0' the session immediately following the session or the successive sessions aforesaid, both houses agree in makine: any monification in the rule or both houses asn-ee that the rule should not be made the' rule shall thereafter have effect onlv in s1lch modified form ar be of no effect as the case may be; so however, that any such mod'iflcation or 2s annulment shall be without prejurlice to the validity of anything previously done under that rule 111 the multi-unit co-operative societies act, 1942, is hereby re-8 of ih1 pealed the fmst schedule 30  [see section 3 (t) ] co-ophative prmctples1 membership of a multi-state co-olx'rative societv (hereafter in ithill schedule referred to ac; the societv) should be voluntary and open without any socjal polftical or religious discrimination, to all persodl 3s who can make use of its services 2 in a society other than that with insti-tutional mernbershll) , individual members should enjoy equal rights of voting-one memlber, one vote  3 surplus or savings if any arfsing out of the operations of the 40 society be1onl!' to the societv as a whole and no individual member has a claim to the surplus the surplus should be utilised for all or any of the following purposes namely:-(11) providing for t\evelopment of the business of the society; (b) providing services for the common enjoyment of mem:bera (c) distribution among the members in proportion to thejr transactions with the society 4 the sgeiety should undertake education of its members, omc 5 bearers and employees and the general public regarding the principles and practice of co-operation 5 the society should activply co-operate in every practical way with other co-operative societies at local, national or international levels  the second schedule[spe sections 3 (m) and 105] 10  list of national co-operative societies1 national co-operative land development banks f~tion limited, hyderabad, andhra pradesh 2 all india state co-operative banks' federation limited, bombay, is maharashtra 3 national co-operative union of india limited, new delhi  national agricultural co-operative marketing federation of india limited, new delhi 5 national co-operative consumers' federation limited, new delhi 20 6 national federation of co-operative sugar factories limited, new delhi 7 n ationa! federation of industrlal co-operatives ljmited, new delhi 8 national co-opera~ve housing federation ljmited, new delhi 9 indian farmers' fertilizer co'-operative limited, new delhi 25 10 all inaia federation of co-operative spinning mills limited, bombay 11 all india industrial co-operative banks' federation limited, bangalore 12 national co-operative dairy federation of india ljmited, new 30 delhi 13 petrofus co-operative limited, new delhi 14 national heavy engineering co-operative limiten, new delhi 15 the all india handloom fabrics marketing co-operative society 35 limited, bombay 16 the national federation of urban co-operative banks and credit societies umited, new delhi ,   statement of objects and reasonsco-operative societies with objects extending beyond one state and serving the interest of members in more than one state are at present governed by the provisions of the multi-unit co-operative societies act, 1942-a central act this is only an enabling legislation facilitating the incorporation, regulation and winding up of multi-unit (state) co-operative societies under the provisions of the c~oper8ltive societies act of the' state where ·the principal place of business of any such society is located as a result, different multi-unit co-operaltive societies are governed by different c~opera'ti\'e laws in the country 2 since 1942, far-reaching changes have occurred in the organisational structure, overall size and operations, etc, of multi-unit c~operative socie-~ies a number of national level c~operative societies and federations, promoted by c~operatives in the country, have come up with the asatst anee of the central and state governments these federations and societies are engaged in diverse spheres of co-operative activity the provisions in the co-operative laws in different states governing ·these multistate societies tend to vary from one another thus the lack of uniformity' ~d the inadequacies in the existing arrangements have rendered it necessary 'to replace the existing legislative framework of such co-open-tives by a common comprehensive central legislation and providing for a centr8il authority to be responsible for 'their registration, supervision 8!lld control the present multi-state co-operaltive societies bill, framed in the light of the recommendations of the expert commiftee on multi-state co-operative societies legislation and in consultation with the state governments, seeks to achieve this objective and is intended to facilitate the further development and more effective functioning of multi-state co-operative societies 3 the prop'osed law will extend to the whole of india including jammu and kashmir the present multi-unit co-operative societies act, 1942, does not ex!tend to jammu and kashmir 4 the scope of the bill is divided into several parts on the usuallides of co-operative legislation in the sta'tes, providing, among other thingi', for the appointment of central registrar, registration of multi-statec~ operative societies, members' rights and liabilities, management at c0-operatives, privilleges of multi-state co-operativ~, their ~ies and funds audit, inquiry, inspection, settlement of disputes, wmding up and canceilation of registration of multi-state co-operative societies, etc 5 employees of certain categories of dwlti-state co-operatives are being made eligible to become members of these co-operati~es; representation of the workers on the boards of directors of the socletles bas also been provided for new delhi; mohan dharia; the 20th october, 1977 ~ multi-state co-operative societies bill, 1977,seeka ~ ,the existing multi-wilt co-operative societies act, 1942 except for some additiodal expenctiture that may arise under·clauses t and l3!1 of the b~'ilo i)ther new expenditure is envisaged by reason of the passing of the biu 2 clause 4 of the bill provides for the appointment of central registrar of co-operative societies this appointment will not now entail: any addl  ,· tional expenditul'e since one of the officers in the ministry has· already been designated as central registrar in an q-ofjicio capacity some additional supporting std will, however, be needed to assist the central registrar in the discharge of his statutory functions under the various provisions of this bill to begin with the following posts have been created involving a recui'ring additional expenditure of dot exceeding rs 1,00,000 in a year posts number of posts scale of pav --------_ __ _--__------------gazetted category deputy director section ofrcer one one rs 1100-]600 rs 65~1200 rs 55o-aoo rs ~o rs 330-560 no'tl--gazetted category senior technical assistant assistant/junior technical assistant stenographer grade iii ldc one one one one rb 260-400 3 clause 37 of the bill lays down that the election of the members of the board of directors of such multi-state co-operative societies ar class of multi-state co-operative societies as may be nowled in a general or special order, shall be held under the superintendence, direction and control of such returning officers as may be appointed by the central registrar the exact amount of expenditure that might be involved on this cannot be assessed at this stage the additional expenditure may be around rs 10,000 in a year 4 clause 60 of the bui provides for financ:lal assistance to muttl-state co-operll'tlive societies in the form of share-capital, loans and advances, sub sidies and guarantees the system envisaged in this provision is already in vogue and do additional expenditure to the government 1s envisaged 5 the development of multi-state co-operative societies is an approved plan scheme an amount of rs 1 lakh has been included in the budget of the ministry tor the cultent financial year in respect ot this scheme the expenditure involved and referred to in the preceding paragra~ will ibe accommodated within the budget allocation for the year suitable provision wi1l1 also be made for the subsequent years~ 6 the bill does not involve any non-recurring expenditure  - memorandum regarding delegated legislationclause 110 of-the bill empowers the central government to make rules to carry out the purposes of the bill in respect of matters falling within the purview of this clause these matters relate to procedure and administrative detail and it is not practicable to provide them in the bill itself the delegation of legislative power is, therefore, of a normal character  a bnl'to consolidate and amend the law relating to co-operative societies with objects dot confined to one st8lte and serving the interests oif m,eid-bers in more than one state, (8hri mohan dharia, minister of commerce aftd civil supplies and co-operatioft) 