The Maharashtra Co-operative Societies Act, 1960

The Maharashtra Co-Operative Societies Act, 1960

CONTENTS

SECTIONS	CHAPTER - I	PAGE
1	Short title, extent and commencement.	3
2	Definitions	3

SECTIONS	CHAPTER II - REGISTRATION	PAGE
3	Registrar and his subordinates.	7
3A	Temporary vacancies.	8
4	Societies which may be registered.	8
5	Registration with limited or unlimited liability.	8
6	Conditions of registration.	8
7	Power to exempt societies or class of societies from conditions as to registration.	10
8	Application for registration.	10
9	Registration.	10
10	Evidence of registration.	11
11	Power of Registrar to decide certain questions.	11
12	Classification of societies.	11
13	Amendment of bye-laws of society.	12
14	Power to direct amendment of bye-laws.	12
15	Change of Name.	13
16	Change of Liability	13
17	Amalgamation, Transfer, Division or conversion of Societies	14
18	Power to direct amalgamation, division and reorganisation in the public interest of members, etc.	15
18A	Amalgamation of Co-operative banks.	16
18B	Amalgamation of primary agricultural credit societies.	17
18C	Reorganisation of societies on account of alteration of limits of local areas in which they operate.	18
19	Reconstruction of societies.	20
20	Partnership of societies.	20
20A	Collaboration by societies.	20
21	Cancellation of registration.	21
21A	De-registration of societies.	21

SECTIONS	CHAPTER III - MEMBERS AND THEIR RIGHTS AND LIABILITIES	PAGE
22	Person who may become member.	22
23	Open Membership.	23
24	Nominal and Associate Member.(Not Applicable)	24
24A	Co-operative education and training to members, etc. (Not Applicable)(Not Applicable)	24
25	Cessation of Membership	25
25A	Removal of names of members from membership register.(Not Applicable)	25
26	Rights and duties of members. (Not Applicable)	25
27	Voting powers of members. (Not Applicable)	26
28	Restrictions on holding of shares. (Not Applicable)	28
29	Restrictions on transfer or charge of share or interest. (Not Applicable)	28
30	Transfer of interest on death of member. (Not Applicable)	29
31	Share or interest not liable to attachment.	30
32	Rights of members to see books, etc. (Not Applicable)	30
32A	Certain societies to give pass books to members and entries in such book evidence of amount due.(Not Applicable)	30
33	Liability of past member and estate of deceased member.	30
34	Insolvency of Members	31
35	Expulsion of Members	31

SECTIONS	CHAPTER IV - INCORPORATION, DUTIES AND PREVILEGES OF SOCIETIES	PAGE
36	Societies to be bodies corporate	31
37	Address of Societies	31
38	Register of Members	31
39	Copy of Act, etc., to be open to Inspection.(Not Applicable)	32
40	Admissibility of copy of entry as evidence	32
41	Exemption from compulsory registration of instruments relating to shares and debentures of society.	32
42	Power to exempt from taxation ; power to refund.	33
43	Restrictions on borrowings	33
44	Regulation of loan making policy(Not Applicable)	34
44A	Limit on interest in certain cases(Not Applicable)	35
45	Restrictions on other transactions with non-members.	35
46	Charge and set-off in respect of share or interest of members(Not Applicable)	35
47	Prior claim of Society	35
48	Charge on immovable property of members borrowing from certain societies(Not Applicable)	36
48A	Deduction from sale price of certain agricultural produce to meet society’s dues(Not Applicable)	38
49	Deduction from salary to meet society’s claim in certain cases(Not Applicable)	39

SECTIONS	CHAPTER V - STATE AID TO SOCIETIES	PAGE
50	Direct partnership of State Government in societies.	40
51	Indirect partnership of State Government in societies.(Not Applicable)	40
52	Principal State Partnership Fund.(Not Applicable)	40
53	Subsidiary State Partnership Fund.(Not Applicable)	41
54	Approval of State Government for purchase of shares.(Not Applicable)	41
55	Liability to be limited in respect of certain shares.(Not Applicable)	41
56	Restriction on amount of dividend.(Not Applicable)	41
57	Indemnity of Apex and Central societies.(Not Applicable)	41
58	Disposal of share capital and dividend, etc.(Not Applicable)	41
59	Disposal of Principal or Subsidiary State Partnership Fund on winding up of Apex or Central society.(Not Applicable)	42
60	Principal or Subsidiary State Partnership Fund not to form part of assets.(Not Applicable)	42
61	Agreement by State Government and Apex societies. (Not Applicable)	42
62	Other forms of State aid to societies.	42
63	Provisions of this Chapter to override other laws.(Not Applicable)	43

SECTIONS	CHAPTER VI - PROPERTY AND FUNDS OF SOCIETIES	PAGE
64	Funds not to be divided.	43
65	Ascertainment and appropriation of profits.	43
66	Reserve Fund.	44
67	Restrictions on dividend.	44
68	Contribution to education fund of the State federal society.	44
69	Contribution to public purposes.	45
69B	Constitution of District Level and State Level Committees.	45
70	Investment of fund.	45
71	Employees’ provident fund.	46
71A	Funds not to be utilised for certain proceedings filed or taken by or against officers in personal capacities.	46

SECTIONS	CHAPTER VII - MANAGEMENT OF SOCIETIES	PAGE
72	Final authority of society.	46
72A	Freedom of affiliation or disaffiliation with a federal structure of choice.(Not Applicable)	47
73	Committee, its powers and functions.	47
73-ID	Motion of no-confidence against officers of societies.	48
73A	Disqualification for being designated officer simultaneously of certain categories of societies.(Not Applicable)	49
73AAA	Constitution of Committee.(Not Applicable)	51
73-B	Reservation of certain seats on committees of societies and election thereto.(Not Applicable)	53
73C	Reservation for women.	54
73-CA	Disqualification of committee and its members.(Not Applicable)	54
73CB	State Co-operative Election Authority.	57
73CC	Power of State Government to postpone election.	59
73D	Society’s nominee on other society not eligible to be designated officer, except in a federal society.(Not Applicable)	60
73F	Election to more than one seat on the committee of society.	60
73I	Responsibility of committee or the Administrators or authorised officer to intimate and assist to arrange for election, before expiry of term.	60
74	Qualification and appointment of Manager, Secretary and other officers of societies and of Chief Executive Officer and Financial Officer for certain societies. (Not Applicable)	61
75	Annual general body meeting.	61
76	Special general body meeting.	63
77	Acts of societies, etc., not to be invalidated by certain defects.	64
77A	Appointment of member of committee, new committee, or authorised officers, where there is failure to elect member, to constitute committee or where committee does not enter upon office, etc.	64
78	Power of suspension of committee. (Not Applicable)	66
78A	Power of supersession of committee or removal of member thereof.	66
79	Society’s obligation to file returns and statements and Registrar’s power to enforce performance of such obligations.	69
79A	Government’s power to give directions in the public interest, etc.	70
79AA	Registrar’s powers to give directions to frame regulations.	71
80	Registrar’s power to seize records, etc.	72

SECTIONS	CHAPTER VIII - AUDIT, INQUIRY, INSPECTION AND SUPERVISION	PAGE
81	Audit.	73
82	Rectification of defects in accounts.	77
83	Inquiry by Registrar.	77
84	Inspection of books of indebted society.	78
85	Costs of inquiry and inspection.	79
86	Recovery of costs.	79
87	Registrar to bring defects disclosed in inquiry or inspection to notice of society.	79
88	Power of Registrar to assess damages against delinquent promoters, etc.	80
88A	Deposit towards fees of inquiry.	80
89	Power to enforce attendance, etc.	81
89A	Power to inspect working of society.	81
90	Constitution or recognition of federal authority to supervise working of societies..(Not Applicable)	82

SECTIONS	CHAPTER IX - SETTLEMENT OF DISPUTES	PAGE
91	Disputes.	82
91A	Constitution of Co-operative Courts.	84
92	Limitation.	85
93	Transfer of disputes from one Co-operative Court to another, and suspension of proceedings in certain cases.	86
94	Procedure for settlement of disputes and power of Co-operative Court.	86
95	Attachment before award or order and inter-locutory orders.	88
96	Decision of Co-operative Court.	89
97	Appeal against decision under section 96 and order under section 95.	89
98	Money how recovered.	89
99	Private transfer of property made after issue of certificate void against society.	90
100	Transfer of property which cannot be sold.	90
101	Recovery of certain sums and arrears due to certain societies as arrears of land revenue.(Not Applicable)	91

SECTIONS	CHAPTER X - LIQUIDATION	PAGE
102	Winding up.	93
103	Appointment of Liquidator.	93
104	Appeal against order of winding up.	94
105	Powers of Liquidator.	94
106	Effect of order of winding up.	96
107	Bar of suit in winding up and dissolution matters.	96
108	Audit of Liquidator’s accounts.	96
109	Termination  of  liquidation  proceedings.	97
110	Disposal of surplus assets	98

SECTIONS	CHAPTER XA - INSURED CO-OPERATIVE BANK	PAGE
110A	Order for winding up, reconstruction, suspension or supersession 98 of committee, etc., of insured co-operative bank, not to be made without sanction or requisition of Reserve Bank of India..	98

SECTIONS	CHAPTER XI - CO-OPERATIVE AGRICULTURE AND RURAL MULTIPURPOSE DEVELOPMENT BANKS	PAGE
111	Application of Chapter XI to Co-operative Agriculture and Rural Multipurpose Development Banks.(Not Applicable)	99
112	State and other Co-operative Agriculture and Rural Multipurpose Development Banks.(Not Applicable)	101
112A	District Co-operative Agriculture and Rural Multipurpose Development Bank, its constitution, term of office of delegates, casual vacancies, powers of such committee, etc.(Not Applicable)	102
112AA	Election of delegate as member of a Co-operative Agriculture and Rural Multipurpose Development Bank from City of Bombay District and Bombay Suburban District.(Not Applicable)	104
112B	General Body and Committee of State Co-operative Agriculture and Rural Multipurpose Development Bank.(Not Applicable)	105
113	Appointment, powers and functions of Trustee.(Not Applicable)	106
114	Issue of debentures.(Not Applicable)	106
115	Disposal of surplus assets(Not Applicable)	106
115	Guarantee by State Government.(Not Applicable)	107
116	Vesting of property in Trustee and Debenture holders’ charge on assets.(Not Applicable)	108
117	Powers of Co-operative Agriculture and Rural Multipurpose Development Banks to advance loans and to hold lands. (Not Applicable)	108
119	Order granting loan conclusive of certain matters.(Not Applicable)	108
120	Priority of mortgage.(Not Applicable)	108
121	Mortgages and other instruments executed in favour of a Co-operative Agriculture and Rural Multipurpose Development Banks to  stand vested  in  State  Agriculture  and  Rural Multipurpose  Development  Bank.(Not Applicable)	109
122	Registration of mortgage, lease, etc., executed in favour of Co-operative Agriculture and Rural Multipurpose Development Banks.(Not Applicable)	109
123	Mortgages and other instruments not to be questioned on insolvency of mortgagors or executants.(Not Applicable)	110
125	Mortgages and other instruments executed by managers of Joint Hindu Families.(Not Applicable)	110
126	Section 8 of Act XXXII of 1956 to apply to mortgages and other instruments to Co-operative Agriculture and Rural Multipurpose Development Banks, subject to certain modifications.(Not Applicable)	111
127	Restriction on lease.(Not Applicable)	111
128	Co-operative Agriculture and Rural Multipurpose Development Bank to receive money and give discharge.(Not Applicable)	111
129	Powers of Co-operative Agriculture and Rural Multipurpose Development Bank where mortgaged or encumbered property is destroyed or security becomes insufficient.(Not Applicable)	112
130	Right of Co-operative Agriculture and Rural Multipurpose Development Bank to buy mortgaged property.(Not Applicable)	112
131	Recovery of loans by Co-operative Agriculture and Multipurpose Development Bank.(Not Applicable)	112
132	Power to distrain.(Not Applicable)	113
133	Sale of mortgaged or encumbered property.(Not Applicable)	113
133A	Mortgaged or encumbered property of Tribal not to be non-Tribal at public auction under section 133.(Not Applicable)	114
134	Confirmation of sale.(Not Applicable)	114
135	Disposal of sale proceeds.(Not Applicable)	114
136	Certificate to purchase delivery of property and title of purchase.(Not Applicable)	115
137	Recovery of loans on certificate by Registrar.(Not Applicable)	116
138	Mode of recovery by Collector.(Not Applicable)	116
139	Officers or members of family not to bid at auction sale.(Not Applicable)	117
140	Section 40 of Bom. XXVIII of 1947 not to apply to alienation in favour of Co-operative Agriculture and Rural Multipurpose Development Banks.(Not Applicable)	117
141	Provision for Guarantee Funds to meet certain losses.(Not Applicable)	117
142	Registrar’s power to permit any society or class of societies to function as Co-operative Agriculture and Rural Multipurpose Development Bank.(Not Applicable)	118
143	Service of notice. (Not Applicable)	118
143A	Transfer of rights and liabilities of Government in respect of schemes sanctioned under Bom. XXVIII of 1942. (Not Applicable)	118
144	Power to Committee of State Co-operative Agriculture and Rural Multipurpose Development Bank to supervise on Co-operative Agriculture and Rural Multipurpose Development Bank and make regulations. (Not Applicable)	119
144-1A	Reorganisation, amalgamation or division of Co-operative Agriculture and Rural Multipurpose Development Bank, in public interest, etc. (Not Applicable)	119

SECTIONS	CHAPTER XI-1A - NON-AGRICULTURAL CO-OPERATIVE CREDIT SOCIETIES	PAGE
144-2A	Application of Chapter XI-1A to non- agricultural co-operative credit societies.	120
144-3A	Definitions.	120
144-4A	Forms of business in which non-gricultural co-operative credit societies may engage.	121
144-5A	Prohibition on accepting deposit from non-members.	122
144-6A	Prohibition on trading.	122
144-7A	Disposal of property not required for non- agricultural co-operative credit society.	122
144-8A	Limit on administrative and establishment expenses.	122
144-9A	Society to maintain cash reserve.	123
144-10A	Society to maintain statutory liquidity ratio.	123
144-11A	Restrictions on loans and advances.	123
144-12A	Restrictions on power to remit debt.	124
144-13A	Maharashtra State Non-Agricultural Co-operative Credit Societies Regulatory Board.	124
144-14A	Composition of the Regulatory Board.	124
144-15A	Secretary to the Regulatory Board.	125
144-16A	Term of non-official members of the Regulatory Board.	125
144-17A	Resignation of non-official member.	125
144-18A	Removal of non-official member.	125
144-19A	Casual vacancies how to be filled in.	125
144-20A	Conduct of business of the Regulatory Board.	125
144-21A	Allowances to non-official members of the Regulatory Board.	125
144-22A	Functions and powers of the Regulatory Board.	126
144-23A	Regulations and guidelines to be binding on non-agricultural co-operative credit societies.	126
144-24A	Moratorium and or directions to non- agricultural co-operative credit society.	126
144-25A	Constitution of Stabilization and Liquidity Support Fund.	127
144-26A	Contribution to the Fund by the Societies.	127
144-27A	Utilization of the Fund.	127
144-28A	Maintenance operation and investment of the Fund.	127
144-29A	Recovery of arrears of contribution, liquidity support or financial assistance.	128
144-30A	Accounts and Audit of the Fund.	128
144-31A	Power of Registrar to impose penalty.	128

SECTIONS	CHAPTER XII - OFFENCES AND PENALTIES	PAGE
145	Prohibiton of use of the word “ Co-operative ”	129
146	Offences.	130
147	Punishments for offences under section	132
148	Cognizance of offences.	134
148A	Contempt of Co-operative Courts and of Co-operative Appellate Court.	134

SECTIONS	CHAPTER XIII - APPEALS, REVIEW AND REVISION	PAGE
149	Maharashtra State Co-operative Appellate Court.	136
150	Review of orders of Co-operative Appellate Court.	137
151	Co-operative Appellate Court to have power of Civil Court.	138
152	Appeals.	138
152A	Appeal against rejection of nomination paper at election.	139
153	Extension of period of limitation by appellate authority in certain cases.	139
154	Revisionary powers of State Government and Registrar.	139

SECTIONS	CHAPTER XIII-B - MAHARASHTRA STATE CO-OPERATIVE COUNCIL	PAGE
154A	Constitution of State Co-operative Council, its functions, etc.	140

SECTIONS	CHAPTER XIV - MISCELLANEOUS	PAGE
155	Recovery of sums due to Government.	156
156	Registrar’s powers to recover certain sums by attachment and sale of property.	157
157	Power to exempt societies from provisions of Act.	157
158	Delegation of power of Registrar to certain authorities and officers.	158
159	Branches, etc., of societies outside the State.	158
160	Handing over records and property to new Chairman on election.	158
160A	Members of State Legislature and certain local authorities not to be remunerated while holding certain offices in societies.	159
160B	Members of committees not entitled to travelling allowance, daily allowance, etc., at a rate higher than the maximum prescribed.	159
161	Registrar and other officers to be public servants.	159
162	Indemnity for acts done in good faith.	159
163	Bar of jurisdiction of Courts.	160
164	Notice necessary in suits.	160
165	Rules.	160
166	Repeal, saving and construction.	168
167	Companies Act not to apply.	168
168	Power to remove difficulty.	169

The Maharashtra Co-Operative Societies Act, 1960 - Download PDF