THE
CO-OPERATIVE SOCIETIES ACT, 1912
[Act No. 2 of
Year 1912 dated 1st March, 1912]
An Act to
Amend the Law relating to Co-operative Societies.
Whereas it is
expedient further to facilitate the formation of Co-operative
Societies for the promotion of thrift and self-help among
agriculturists, artisans and persons of limited means, and for that
purpose to amend the law relating to Co-operative Societies;
It is hereby
enacted as follows: -
PRELIMINARY
1. Short title and
extent
(1) This Act
may be called the Co-operative Societies Act, 1912; and
(2) It
extends to 2[the whole of India except 3[the
territories which, immediately before the 1st November, 1956, were
comprised in Part B States]].
2. Definitions
In this Act,
unless there is anything repugnant in the subject or context,-
(a) "by-laws"
means the registered by-laws for the time being in force, and
includes a registered amendment of the by-laws;
(b)
"committee" means the governing body of a registered society to whom
the management of its affairs is entrusted;
(c) "member"
includes a person joining in the application for the registration of
a society and a person admitted to membership after registration in
accordance with the by-laws and any rules;
(d) "Officer"
includes a chairman, secretary, treasurer, member of committee, or
other person empowered under the rules or the by-laws to give
directions in regard to the business of the society;
(e)
"registered society" means a society registered or deemed to be
registered under this Act;
(f)
"Registrar" means a person appointed to perform the duties of a
Registrar of Co-operative Societies under this Act; and
(g) "rules"
means rules made under this Act.
Comment: We have extracted above the
definition of the expression 'officer' in 1912 Act. Undoubtedly, it
is an inclusive definition. If only the officers enumerated in the
definition are comprehended within the expression 'officer'. the
first respondent is not an officer in the sense that he was neither
a Chairman, Secretary, Treasurer, or a member of the Committee. But
the expression 'officer' also embraces such other person empowered
under the rules or the bye-laws to give directions in regard to the
business of the society. U.P. Co-operative Cane Union Federation
Ltd. and another, Appellants v. Liladhar, AIR 1981 SUPREME COURT
152
REGISTRATION
3. The Registrar
The
4[State Government] may appoint a person to be Registrar
of co-operative Societies for the 5[State] or any portion
of it, and may appoint persons to assist such Registrar, and may, by
general or special order, confer on any such persons all or any of
the powers of a Registrar under this Act.
4. Societies which may be
registered
Subject to
the provisions hereinafter contained, a society which has as its
object the promotion of the economic interests of its members in
accordance with co-operative principles, or a society established
with the object of facilitating the operations of such a society,
may be registered under this Act with or without limited liability
:
Provided that
unless the 4[State Government] by general or special
order otherwise directs-
(1) the
liability of a society of which a member is a registered society
shall be limited;
(2) the
liability of a society of which the object is the creation of funds
to be lent to its members, and of which the majority of the members
are agriculturists, and of which no member is a registered society,
shall be unlimited.
5. Restrictions on interest of
member of society with limited liability and a share
capital
Where the
liability of the members of a society is limited by shares, no
member other than a registered society shall-
(a) hold more
than such portion of the share capital of the society, subject to a
maximum of one-fifth, as may be prescribed by the rules; or
(b) have or
claim any interest in the shares of the society exceeding one
thousand rupees.
6. Conditions of
registration
(1) No
society, other than a society of which a member is a registered
society, shall be registered under this Act which does not consist
of at least ten persons above the age of eighteen years and, where
the object of the society is the creation of funds to be lent to its
members, unless such persons:-
(a) reside in
the same town or village or in the same group of villages; or
(b) save
where the Registrar otherwise directs, are members of the same
tribe, class, caste or occupation.
(2) The word
"limited" shall be the last word in the name of every society with
limited liability registered under this Act.
7. Power of Registrar to decide
certain question
When any
question arises whether for the purposes of this Act a person is an
agriculturist or a non-agriculturist, or whether any person is a
resident in a town or village or group of villages, or whether two
or more villages shall be considered to form a group, or whether any
person belongs to any particular tribe, class, caste or occupation,
the question shall be decided by the Registrar, whose decision shall
be final.
8. Application for
registration
(1) For
purposes of registration an application to register shall be made to
the Registrar.
(2) The
application shall be signed-
(a) in the
case of a society of which no member is a registered society, by at
least ten persons qualified in accordance with the requirements of
section 6, sub-section (1); and
(b) in the
case of a society of which a member is a registered society, by a
duly authorised person on behalf of every such registered society,
and where all the members of the society are not registered
societies, by ten other members or, when there are less than ten
other members, by all of them.
(3) The
application shall be accompanied by a copy of the proposed by-laws
of the 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 Registrar may require.
9. Registration
If the
Registrar is satisfied that a society has complied with the
provisions of this Act and the rules and that its proposed by-laws
are not contrary to the Act or to the rules, he may, if he thinks
fit, register the society and its by-laws.
10. Evidence of registration
A certificate
of registration signed by the Registrar shall be conclusive evidence
that the society therein mentioned is duly registered unless it is
proved that the registration of the society has been cancelled.
11. Amendment of the by-laws of a
registered society
(1) No
amendment of the by-laws of a registered society shall be valid
until the same has been registered under this Act, for which purpose
a copy of the amendment shall be forwarded to, the Registrar.
(2) If the
Registrar is satisfied that any amendment of the by-laws is not
contrary to this Act or to the rules, he may, if he thinks fit,
register the amendment.
(3) When the
Registrar registers an amendment of the by-laws of a registered
society, he shall issue to the society a copy of the amendment
certified by him, which shall be conclusive evidence that the same
is duly registered.
RIGHTS AND LIABILITIES OF MEMBERS
12. Member not to exercise rights
till due payment made
No member of
a registered society shall exercise the rights of a member unless or
until he has made such payment to the society in respect of
membership or acquired such interest in the society, as may be
prescribed by the rules or by-laws.
13. Votes of members
(1) Where the
liability of the members of a registered society is not limited by
shares, each member shall, notwithstanding the amount of his
interest in the capital, have one vote only as a member in the
affairs of the society.
(2) Where the
liability of the members of a registered society is limited by
shares, each member shall have as many votes as may be prescribed by
the by-laws.
(3) A
registered society which has invested any part of its funds in the
shares of any other registered society may appoint as its proxy, for
the purpose of voting in the affairs of such other registered
society, any one of its members.
14. Restrictions on transfer of
share or interest
(1) The
transfer or charge of the share or interest of a member in the
capital of a registered society, shall be subject to such conditions
as to maximum holding as may be prescribed by this Act or by the
rules.
(2) In case
of a society registered with unlimited liability a member shall not
transfer any share held by him or his interest in the capital of the
society or any part thereof unless-
(a) he has
held such share or interest for not less than one year; and
(b) the
transfer or charge is made to the society or to a member of the
society.
DUTIES OF REGISTERED SOCIETIES
15. Address of societies
Every
registered society shall have an address, registered in accordance
with the rules, to which all notices and communications may be sent,
and shall send to the Registrar notice of every change thereof.
16. Copy of Act, rules and
by-laws to be open to inspection
Every
registered society shall keep a copy of this Act and of the rules
governing such society, and of its by-laws, open to inspection free
of charge at all reasonable times at the registered address of the
society.
17. Audit
(1) The
Registrar shall audit or cause to be audited by some person
authorised by him by general or special order in writing in this
behalf the accounts of every registered society once at least in
every year.
(2) The audit
under sub-section (1) shall include an examination of overdue debts,
if any, and a valuation of the assets and liabilities of the
society.
(3) The
Registrar, the Collector or any person authorised by general or
special order in writing in this behalf by the Registrar shall at
all times have access to all the books, accounts, papers and
securities of a society, and every officer of the society shall
furnish such information in regard to the transactions and working
of the society as the person making such inspection may
require.
PRIVILEGES OF REGISTERED SOCIETIES
18. Societies to be bodies
corporate
The
registration of a society shall render it a body corporate by the
name under which it is registered, with perpetual succession and a
common seal, and with power to hold property, to enter into
contracts, to institute and defend suits and other legal proceedings
and to do all things necessary for the purposes of its
constitution.
19. Prior claim of
Society
Subject to
any prior claim of the 6[Government] in respect of
land-revenue or any money recoverable as land-revenue or of a
landlord in respect of rent or any money recoverable as rent, a
registered society shall be entitled in priority to other creditors
to enforce any outstanding demand due to the society from a member
or past member-
(a) in
respect of the supply of seed or manure or of the loan of money for
the purchase of seed or manure-upon the crops or other agricultural
produce of such member or person, at any time within eighteen months
from the date of such supply or loan;
(b) in
respect of the supply of cattle, fodder for cattle, agricultural or
industrial implements or machinery, or raw materials for
manufacture, or of the loan of money for the purchase of any of the
foregoing things -upon any such things so supplied, or purchased in
whole or in part from any such loan, or on any articles manufactured
from raw materials so supplied or purchased.
20. Charge and set-off in respect
of shares or interest of member
A registered
society shall have a charge upon the share or interest in the
capital and on the deposits of a member or past member and upon any
dividend, bonus or profits payable to a member or past member in
respect of any debt due from such member or past member to the
society, and may set-off any sum credited or payable to a member or
past member in or towards payment of any such debt.
21. Shares or interest not liable
to attachment
Subject to
the provisions of section 20, the share or interest of a member in
the capital of a registered society shall! not be liable to
attachment or sale under any decree or order of a Court of Justice
in respect of any debt or liability incurred by such member, and
neither the Official Assignee under the Presidency-towns Insolvency
Act, 1909 (3 of 1909), nor a Receiver under the
7Provincial Insolvency Act, 1907 (3 of 1907), shall be
entitled to or have any claim on such share or interest.
22. Transfer of interest on death
of member
(1) On the
death of a member a registered 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 is no
person so nominated to such person as may appear to the committee to
be the heir or legal representative of the deceased member, 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 or by-laws :
Provided
that-
(i) in the
case of a society with unlimited liability, such nominee, heir or
legal representative, as the case may be, may require payment by the
society of the value of the share or interest of the deceased member
ascertained as aforesaid;
(ii) in the
case of a society with limited liability, the society shall transfer
the share or interest of the deceased member to such nominee, heir
or legal representative, as the case may be, being qualified in
accordance with the rules and by-laws for membership of the society,
or on his application within one month of the death of the deceased
member to any person specified in the application who is so
qualified.
(2) A
registered society may pay all other moneys due to the deceased
member from the society to such nominee, heir or legal,
representative, as the case may be.
(3) All
transfers and payments made by a registered society in accordance
with the provisions of this section shall be valid and effectual
against any demand made upon the society by any other person.
23. Liability of past
member
The liability
of a past member for the debts of registered society as they existed
at the time when he ceased to be a member shall continue for a
period of two years from the date of his ceasing to be a
member.
24. Liability of the estates of
deceased members
The estate of
a deceased member shall be liable for a period of one year from the
time of his decease for the debts of a registered society as they
existed at the time of his decease.
25. Register of
members
Any register
or list of members or shares kept by any registered society shall be
prima facie evidence of any of the following particulars
entered therein :-
(a) the date
at which the name of any person was entered in such register or list
as a member;
(b) the date
at which any such person ceased to be a member.
26. Proof of entries in
societies' books
A copy of any
entry in a book of a registered society regularly kept in the course
of business, shall, if certified in such manner as may be prescribed
by the rules, be received, in any suit or legal proceedings, as
prima facie evidence of the existence of such entry, and shall be
admitted as evidence of the matters, transactions and accounts
therein recorded in every case where, and to the same extent as, the
original entry itself is admissible.
27. Exemption from compulsory
registration of instruments relating to shares and debentures of
registered society.
Nothing in
section 17, sub-section (1), clauses (b) and (c), of the Indian
Registration Act, 1908 (16 of 1908), shall apply to-
(1) any
instrument relating to shares in a registered society,
notwithstanding that the assets of such society consist in whole or
in part of immoveable property; or
(2) any
debenture issued by any such society and not creating, declaring,
assigning, limiting or extinguishing any right, title or interest to
or in immoveable property except in so far as it entitles the holder
to the security afforded by a registered instrument whereby the
society has mortgaged, conveyed or otherwise transferred the whole
or part of its immoveable property or any interest therein to
trustees upon trust for the benefit of the holders of such
debentures; or
(3) any
endorsement upon or transfer of any debenture issued by any such
society.
28. Power to exempt from
income-tax, stamp- duty and registration fees
8[(1)] The 9[Central Government], by
notification1 in the 9[Official Gazette], may
in the case of any registered society or class of registered society
remit 10[***] the income-tax payable in respect of the
profits of the society, or of the dividends or other payments
received by the members of the society on account of profits.
11[***]
12[(2) The 9[Government], by
notification in the 9[Official Gazette], may, in the case
of any registered society or class of registered society, remit
:-
(a) the
stamp-duty with which, under any law for the time being in force,
instruments executed by or on behalf of a registered society or by
an officer or member and relating to the business of such society,
or any class of such instruments, are respectively chargeable,
and
(b) any fee
payable under the law of registration for the time being in
force.]
13[In this sub-section "Government" in relation to
stamp-duty in respect of bills of exchange, cheques, promissory
notes, bills of lading, letters of credit, policies of insurance,
14[transfer of shares, debentures,] proxies and receipts,
and in relation to any stamp-duty falling within 15[entry
96] in List I in the Seventh Schedule to 16[the
Constitution], means the Central Government, and save as aforesaid
means the 17[State Government]].
PROPERTY AND FUNDS OF REGISTERED SOCIETIES
29. Restrictions on
loans
(1) A
registered society shall not make a loan to any person other than a
member :
Provided
that, with the general or special sanction of the Registrar, a
registered society may make loans to another registered
society.
(2) Save with
the sanction of the Registrar, a society with unlimited liability
shall not lend money on the security of moveable property.
(3) The
4[State Government] may, by general or special order,
prohibit or restrict the lending of money on mortgage of immoveable
property by any registered society or class of registered
societies.
30. Restrictions on
borrowing
A registered
society shall receive deposits and loans from persons who are not
members only to such extent and under such conditions as may be
prescribed by the rules or by-laws.
31. Restrictions on other
transactions with non-members
Save as
provided in sections 29 and 30, the transactions of a registered
society with persons other than members shall be subject to such
prohibitions and restrictions, if any, as the 4[State
Government] may, by rules, prescribe.
32. Investment of
funds
(1) A
registered society may invest or deposit its funds -
(a) in the
Government Savings Bank, or
(b) in any of
the securities specified in section 20 of the Indian Trusts Act,
1882 (2 of 1882), or
(c) in the
shares or on the security of any other registered society, or
(d) with any
bank or person carrying on the business of banking, approved for
this purpose by the Registrar, or
(e) in any
other mode permitted by the rules.
(2) Any
investments or deposits made before the commencement of this Act
which would have been valid if this Act had been in force are hereby
ratified and confirmed.
33. Funds not to be divided by
way of profit
No part of
the funds of a registered society shall be divided by way of bonus
or dividend or otherwise among its members :
Provided that
after at least one-fourth of the net profits in any year have been
carried to a reserve fund, payments from the remainder of such
profits and from any profits of past years available for
distribution may be made among the members to such extent and under
such conditions as may be prescribed by the rules or by-laws :
Provided also
that in the case of a society with unlimited liability no
distribution of. profits shall be made without the general or
special order of the 4[State Government] in this
behalf.
34. Contribution to charitable
purpose
Any
registered society may, with the sanction of the Registrar, after
one-fourth of the net profits in any year has been carried to a
reserve fund, contribute an amount not exceeding ten per cent. of
the remaining net profits to any charitable purpose, as defined in
section 2 of the Charitable Endowments Act, 1890 (6 of 1890).
INSPECTION OF AFFAIRS
35. Inquiry by Registrar
(1) The
Registrar may of his own motion, and shall on the request of the
Collector, or on the application of a majority of the committee, or
of not less than one-third of the members, hold an inquiry or direct
some person authorised by him by order in writing in this behalf to
hold an inquiry into the constitution, working, and financial
condition of a registered society.
(2) All
officers and members of the society shall furnish such information
in regard to the affairs of the society as the Registrar or the
person authorised by the Registrar may require.
36. Inspection of books of
indebted society
(1) The
Registrar shall, on the application of a creditor of a registered
society, inspect or direct some person authorised by him by order in
writing in this behalf to inspect the books of the society:
Provided
that-
(a) the
applicant satisfies the Registrar that the debt is a sum then due,
and that he has demanded payment thereof and has not received
satisfaction within a reasonable time; and
(b) the
applicant deposits with the Registrar such sum as security for the
costs of the proposed inspection as the Registrar may require.
(2) The
Registrar shall communicate the results of any such inspection to
the creditor.
37. Costs of inquiry
Where an
inquiry is held under section 35, or an inspection is made under
section 36, the Registrar may apportion the costs, or such part of
the costs as he may think right, between the society, the members or
creditor demanding an inquiry or inspection, and the officers or
former officers of the society.
38. Recovery of costs
Any sum
awarded by way of costs under section 37 may be recovered, on
application to a Magistrate having jurisdiction in the place where
the person from whom the money is claimable actually and voluntarily
resides or carries on business, by the distress and sale of any
moveable property within the limits of the jurisdiction of such
Magistrate belonging to such person.
DISSOLUTION OF SOCIETY
39. Dissolution
(1) If the
Registrar, after an inquiry has been held under section 35 or after
an inspection has been made under section 36 or on receipt of an
application made by three-fourths of the members of a registered
society, is of opinion that the society ought to be dissolved, he
may cancel, the registration of the society.
(2) Any
member of a society may, within two months from the date of an order
made under sub-section (1), appeal from such order.
(3) Where no
appeal is presented within two months from the making of an order
cancelling the registration of a society, the order shall take
effect on the expiry of that period.
(4) Where an
appeal is presented within two months the order shall not take
effect until it is confirmed by the appellate authority.
(5) The
authority to which appeals under this section shall lie shall be the
4[State Government]:
Provided that
the 4[State Government] may, by notification in the
18[Official Gazette] direct that appeals shall lie to
such Revenue-authority as may be specified in the notification.
40. Cancellation of registration
of society
Where it is a
condition of the registration of a society that it should consist of
at least ten members, the Registrar may, by order in writing, cancel
the registration of the society it at any time it is proved to his
satisfaction. that the number of the members has been reduced to
less than ten.
41. Effect of cancellation of
registration
Where the
registration of a society is cancelled, the society shall cease to
exist as a corporate body-
(a) in the
case of cancellation in accordance with the provisions of section
39, from the date the order of cancellation takes effect;
(b) in the
case of cancellation in. accordance with the provisions of section
40, from the date of the order.
42. Winding up
(1) Where the
registration of a society is cancelled under section 39 or section
40, the Registrar may appoint a competent person to be liquidator of
the society.
(2) A
liquidator appointed under sub-section (1) shall have Power-
(a) to
institute and defend suits and other legal proceedings on behalf of
the society by his name of office;
(b) to
determine the contribution to be made by the members and past
members of the society respectively to the assets of the
society;
(c) to
investigate all claims against the society and, subject to the
provisions of this Act, to decide questions of priority arising
between claimants;
(d) to
determine by what persons and in what proportions the costs of the
liquidation are to be borne; and
(e) 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 society.
(3) Subject
to any rules, a liquidator appointed under this section shall, in so
far as such powers are necessary for carrying out the purposes of
this section, have power to summon and enforce the attendance of
witnesses and to compel the production of documents by the same
means and (so far as may be) in the same manner as is provided in
the case of a Civil Court under the Code of Civil Procedure, 1908 (5
of 1908).
(4) Where an
appeal from any order made by a liquidator under this section is
provided for by the rules, it shall lie to the Court of the District
Judge.
(5) Orders
made under this section shall, on application, be enforced as.
follows :-
(a) when made
by a liquidator, by any Civil Court having local jurisdiction in the
same manner as a decree of such Court;
(b) when made
by the Court of the District Judge on appeal, in the same manner as
a decree of such Court made in any suit pending therein.
(6) Save in so far as is hereinbefore expressly provided, no, Civil Court shall have any jurisdiction in respect of any matter connected with the dissolution of a registered society under this Act.
RULES
43. Rules
(1) The
4[State Government] may, for the whole or any part of the
5[State] and for any registered society or class of such
societies, make rules to carry out the purposes of this Act.
(2) In
particular and without prejudice to the generality of the foregoing
power, such rules may-
(a) subject
to the provisions of section 5, prescribe the maximum number of
shares or portion of the capital, of a society which may be held by
a member;
(b) prescribe
the forms to be used and the conditions to be complied with in the
making of applications for the registration of a society and the
procedure in the matter of such applications;
(c) prescribe
the matters in respect of which a society may or shall make by-laws
and for the procedure to be followed in making, altering and
abrogating by-laws, and the conditions to be satisfied prior to such
making, alteration or abrogation;
(d) prescribe
the conditions to be complied with by persons applying for admission
or admitted as members, and provide for the election and admission
of members, and the payment to be made and the interests to be
acquired before the exercise of the right of membership;
(e) regulate
the manner in which funds. may be raised by means of shares or
debentures or otherwise;
(f) provide
for general meetings of the members and for the procedure at such
meetings and the powers to be exercised by such meetings;
(g) provide
for the appointment, suspension and removal of the members of the
committee and other officers, and for the procedure at meetings of
the committee, and for the powers to be exercised and the duties to
be performed by the committee and other officers;
(h) prescribe
the accounts and books to be kept by a society and provide for the
audit such accounts and the charges, if any, to be made for such
audit, and for the periodical publication of a balance-sheet showing
the assets and liabilities of a society;
(i) prescribe
the returns to be submitted by a society to the Registrar and
provide for the persons by whom and the form in which such returns
shall be submitted;
(j) provide
for the persons by whom and the form in which copies of entries in
books of societies may be certified;
(k) provide
for the formation and maintenance of a register of members and,
where the liability of the members is limited by shares, of a
register of shares;
(l) provide
that any dispute touching the business of a society between members
or past members of the society or persons claiming through a member
or past member or between a member or past member or persons so
claiming and the committee or any officer shall be referred to the
Registrar for decision or, if he so directs, to arbitration, and
prescribe the mode of appointing an arbitrator or arbitrators and
the procedure to be followed in proceedings before the Registrar or
such arbitrator or arbitrators, and the enforcement of the decisions
of the Registrar or the awards of arbitrators;
(m) provide
for the withdrawal and expulsion of members and for the payments, if
any, to be made to members who withdraw or are expelled and for the
liabilities of past members;
(n) provide
for the mode in which the value of a deceased member's interest
shall be ascertained, and for the nomination of a person to whom
such interest may be paid or transferred;
(o) prescribe
the payments to :be made and the conditions to be complied with by
members applying for loans, the period for which loans may be made,
and the amount which may be lent, to an individual member;
(p) provide
for the formation and maintenance of reserve funds, and the objects
to which such funds may be applied, and for the investment of any
funds under the control of the society;
(q) prescribe
the extent to which a society may limit the number of its
members;
(r) prescribe
the conditions under which profits. may be distributed to the
members of a society with unlimited liability and the maximum rate
of dividend which may be paid by societies;
(s) subject
to the provisions of section 39, determine in what cases an appeal
shall lie from the orders of the Registrar and prescribe the
procedure to he followed in presenting, and disposing of such
appeals; and
(t) prescribe
the procedure to be followed by a liquidator appointed under section
42, and the cases in which an appeal shall lie from the order of
such liquidator.
(3) The
4[State Government] may delegate, subject to such
conditions, if any, as it thinks fit, all or any of its powers to
may rules under this section to any authority specified in the order
of delegation.
(4) The power
to make rules conferred by this section is subject to the condition
of the rules being made after previous publication.
(5) All rules
made under this section shall be published in the
18[Official Gazette], and on such publication shall have
effect as if enacted in this Act.
19[(6) Every rule made by the State Government
under this Act shall be laid, as soon as may be after it is made,
before the State Legislature.]
MISCELLANEOUS
44. Recovery of sums due to
Government
(1) All sums
due from a registered society or from an officer or member or past
member of a registered society as such to the Government, including
any costs awarded to the Government under section 37, may be
recovered in the same manner as arrears of land-revenue.
(2) Sums due
from a registered society to Government and recoverable under
sub-section (1) may be recovered, firstly, from the property of the
society; secondly, in the case of a society of which the liability
of the members is limited, from the members subject to the limit of
their liability; and, thirdly, in the case of other societies from
the members.
45. Power to exempt societies
from conditions as to registration
Notwithstanding anything contained in this Act, the
4[State Government ] may, by special order in each case
and subject to such conditions, if any, as it may impose, exempt any
society from any of the requirements of this Act as to
registration.
46. Power to exempt registered
societies from provisions of the Act
The
4[State Government] may, by general or special order,
exempt any registered society from any of the provisions of this Act
or may direct that such provisions shall apply to such society with
such modifications as may be specified in the order.
47. Prohibition of the use of the
word "co-operative"
(1) No person
other than a registered society shall trade or carry on business
under any name or title of which the word "co-operative" is part
without the sanction of the 4[State Government] :
Provided that
nothing in this section shall apply to the use by any person or his
successor in interest of any name or title under which he traded or
carried on business at the date on which this Act comes into
operation.
(2) Whoever
contravenes the provisions of this section shall be punishable with
fine which may extend to fifty rupees, and in the case of a
continuing offence with further fine of five rupees for each day on
which the offence is continued after conviction therefor.
48. Indian Companies Act, 1882,
not to apply
The
provisions of the 20Indian Companies Act, 1882 (6 of
1882), shall not apply to registered societies.
49. Saving of existing societies
Every society
now existing which has been registered under the Co-operative Credit
Societies Act, 1904 (10 of 1904), shall be deemed to be registered
under this Act, and its by-laws shall, so far as the same are not
inconsistent with the express provisions of this Act, continue in
force until altered or rescinded.
50. [Repeal.] Repealed by the Second Repealing and Amending Act, 1914