Orissa Co-Operative Societies Act, 1962 (No. 2 of 1963)

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PRS or any persons connected with it shall not be in any way responsible for any loss, damage, or distress to any person on account of any action taken or not taken on the basis of this document. The Orissa Co-Operative Societies Act, 1962 Act 2 of 1963 Keyword(s): Apex Society, Central Co-Operative Bank, Central Society, Co-Operative Bank, Co-Operative Farming Society, Financing Bank, Society with Limited Liability, Society with Unlimited Liability, State Co-Operative Union Amendments appended: 1 of 1979, 7 of 1979, 19 of 1983, 32 of 1992, 23 of 1994, 1 of 1995, 7 of 1996, 4 of 1997, 7 of 1997, 9 of 1997, 6 of 1998, 10 of 2001, 11 of 2002, 17 of 2003, 11 of 2004, 9 of 2005 ORISSA ACT l OF 1963 THE ORISSA CO~OPERATIVE SOCIETIES ACT, 1962 PRRAMDLB SaCTIONS CONT~NTS CHAPTER I PRELIMINARY I. Short title, extent and commencement 2. Definitions .CHAPTER II REGISTRATION OF Co·OPBRATIVB SOCIBTIBS 3. Registrar 4. Societies which ma)' be registered 5, Registration with limited or unlimited liability 6, Application for registration of co-operative siocietie& 7. Registration 8 .. Registration certificato 9. Co-operativo societies to be bodies corporate 10 . .Change of namo of a society 11. Change or liability 12. Amendlll.:!lt d bye-laws of a society 13. When am:a.dmeats of bye-laws come into forco 14. Amalgamation, transfer, of assets and liabilities and division of soeistfu : ,:,. Ca nce!htion of registration certificates of societies in ~rt.ain cases 637 SECTIONS CHAPTER III MEMDERS OF THE CO-OPERATIVE SOCIET1£S AND THEIR RIGHTS AND LIABILHIBS 16. Persons who may become members 17. Affiliation to the Stale Co-operative Union 18. Nominal or associate members 19. Member not to exercise rights till due payment made 20. Vote of members 21. M:rnncr of exercising vote 22. Restriction of holding Jof shares 23. Restrictions on transfer of shares or interest 24. Transfer of interest on dea,h of member 25. Liability of past member and estate of dec~ased member 26. Restriction on transfer of possession of and interest in land held under the socie ly CHAPTER IV MANAGBM6NT OF Socn:TIBS 27. Final authority in a society 28. Society to have a Committee 28-A. Eleclion of members of Committee 29. Annual general meeting 30. Special general meeting 31. Nominees of the Government on the committee of a society 32. Supersession of committee and power to disqualify officers of the society 33. Securing possession of records, etc. 33-A. Qualification, etc., of employees of societies CHAPTER V PRlvILEGES OP SOCJE'Tll:S 34, First charge of society on certain assets 35. Deduction of dues of society from salaries of members 3J-A. Deduction of dues of a Society of a reciprocating State 36, Charge and set-off in respect of shares or interest of me mber in lho c:api ·1111 of a Society. 639 SECTIONS 37. Shares or interest not liable to atlachmcnt 38, Exemption from certain ta:<es, fees a11d duties 39. Exemption from compulsory registration or instrument, CHAPTER VI STATE-AID TO SOCIETIES 40. Promotion of co-operative movement 41. Direct· partnership of State ·Government in societies 42. lndirect partnership of State Government in societies 43. Principal State Partnership Fund 44. Subsidiary State Partnership Fund 45. Approval of State Govemment for purchase of shares 46. Liability lo be limited in re~pect of certain shares 47. Restrictions on amount of dividend 48. Indemnity of Apex and Ccntrnl Societies 49. Disposal of share capital and dividend. e~. 50. Dispos.il of 'Principal State Partnership Fund' and 'Subsidiary State Partnera ship Fund' on winding up of :in Apex or a Central Society. 51. Principal Stale Partnership Fund and Subsidiary State Partnership Fund not to form part of assets. 52. Agreement by tbe State Government and ;\pex Societies 53. Other forms of State-aid to societies 54. Provision of this eh.apter to override other laws CHAPTER VJI PROPERTIES. AND FUNDS OF Socnrrus 55. Funds not to be divided · 56, DisposaJ of net profits and constitution of Co-operative Education Fund 57. Investment of funds 58. Restrictions on borrowings 59. Restriction of loans 60. Restrictions on other transactions with non-members 61. Pro'Vident Ftl.nd 640 SECTIONS CHAPTER VIII AUDIT, INQUIRY, INSPECTfON AND SURCHARGE 62. Audit 63. Communication of defects in audit to societies 64. Inspection of books of a society 65. Inquiry qy Regislrar 66. Costs of inquiry 67. Surcharge CHAPTER IX SBTTLEUBNT OF DISPUTES 613. Disputes which may be referred to arbitration 69-. Limitation 70. Reference of disputes to acbitration 71. Loan taken or mortgage executed by members of ioint Hindu familiu CHAPTER X WitIDING UP AND DJSSOLUTION OF Soc!ETIES 72. Winding up of societies 73. Liquidator 74. Priority of contribution assessed by a liquidator 75. Powers of liquidator 76. Disposal of surplus assets 77. Canccl/atiou of registration of a society CHAPTER XI LAND DEVELOPMENT BANK 78. Definitions 79. Appointment of Trustee and his powers and function: 80. Trustee to be a corporation wle 641 SBCTIONS 81. Issue of debentures by the Bo::i.rd 82. Charge ~f debe!l,turc•holdcrs on certain properties 83. Guarantee by State Government of principal and interest on deben.to:r,H: ~3·A. Grant of [oan .by L-md Oevelop ment Bank ~J-B. Applicant for loan to mc1.ke e. decla ratt?n : gJ.C. .Order granting loan conclusive of certain matter~ 83-D. Charge bow created and its eftect 83·E. Charge created or mortga~e executed by a membe-r of Hindu joi nl family OT · co-owners. 64. Other guarantees by State Government 85. Priority of mortgage over certain claims 8 5-A. Mortgage executed by managers of Joint Hindu Femilr 85-B. Section 8 of Act 32 of 1956 to apply to mortgage 86. Right of Land Development Bank or the State Land Development Bank 10 purchase mortgaged property. 87. Mortgag~ executed in favour of Land Dr.velopment Bank to stand vested in St-J1e Land Development Bank. 87.A. Tra!lsfc-r of mortgages ; 88. Power of Land Dcvclopme11t Bank to rc~eive moneys aod grant di,;charges 89. Right of Lind D.!veloprncnt B:rnk to pay prior detits of mortgager 90. Distraint when to be m:::de 91. Power of sale when to be e.'lcrcised 92. Powers of land Morlga.ge Uank where mortgaged properly is destro1ed or security becomes insufficient. . IJJ. Power of Bo:1rd or of Trns:ee to disfrain and·sell properly, etc. 04. Title of purchaser not lo be questioned Q5. Mortgage not to be questioned -0n insolvency of mortgagor 96. Appointment of receiver and his powers 97. Mortgagor's powers to lease 98. Registration of documents executed on .behalf of a Land Devclooment Bank or of the State Land Devel opm.ent . Bank. "98-A. Morlgage by members of Scb.eduled Castes and Tribes 99. Delegation of certain powers by Board 100. Sections 102, IOJ and 104 . of the Transfer of Property Act I 882 to apply to notices under this Chapter. · ' ' 101. Power of the Board to make reirulations JOI.A. Certain provisions to apply to charge 642 Si!.CTIONS CHAPTER xn EXECUTION OF AWARDS, DECREES, ORDERS AND DF.CJS}ON!'I 102. Enforcement of charge 103. Execution of orders, etc. 104. Registrar or person empowered by him to be a Civil Court for certain purpous 105. Attachment -of prvperty before award or order 106. Rights of transfer of land of a society in certain area and th.e society's right to bdng it to sale. 107. Recovery of sums due from a sa\ary earner 108. Property from which sums due from a soc\cty to Government and other~ can be recovered. CHAPTER Xlll .APPEAL, REVISION AND REVIEW I 09. Appeals 110. {?elcgation of power to hear appeals l ll. Review l 12. Power of revision by Registrar 113. Power of revision by S~ate Government 113-A. Delegation of Power of Revision 114. Interlocutory orders by Government or Registrar CHAPTER XIV OFFENCES ANO PENALTIES 115. Offences 116. Cognizance of offence. , CHAPTER XV MISCELLANEOUS 117. Prohibition agaim:t the use of word 'Co-operative" ll8. Address of a society . U9. Copy of Act. rules ~nd bye-laws to be opened to refereo c~ 120. Powers of Civil Court ,,· 643 SECTIONS 121. Bar of Jurisdiction of Courts 122. Power to excmp~ societies from cundition& of rcginratlon . 123. Power to exempt class of societies 124. Register of members 125. Proof of entries in socie~'s book, 126. Service of notice under the Act 127. Notice necessary in suits 128. Acts of societies, ek:., no, to be invalidated by certain dcfocla l 2.9, Indemnity 130. Registrar to be public servant 131. Companies Act, 1956 noi to apply 132. Limitation 133. Savine: of existing societies l33-A. Special provisions rel~\ing lo in!ured Co-operative Banks 134. Powers io make rulea 135. Co-operative Co.uncil 136. Construction of referonoes ~o Co-operative Societies Act, 1912, t · ments. 137. Power to remove difficulties 138. Rfpeal SCHEDULB OrusSA ACT 2 OP 1963 [THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962] [ Received the t1ssent of the President on the 3rd. · February J 963, first p11blished in an extraord inary issue of the Orissa oa·zette dated .. ·the 15th" February }963 ] AN ACT TO CONSOLJDATE AND.AMEND 1HE LAW R.ELATIN'G TO CO-OPER(\.TIVE SOCJETliS ·. BE it enacted by the Legislature of the State of Orissa in· the Thirteenth Year of the Republic of India, as follows, CHAPTER - I PRELIMlNARY 1. (I) This Act ·rr.ay be called the Orissashort 1111 e, Co-operative Societies Act, 1962. extent and· cammenco . (2) · · . ment . It extends to the whole of the State of Onssa. (3) It shall come intd force 2 on such date as the State Government may by notificJtion appoii;1.t. 2. Tn this Act, unless the context otherwise D 6 ·t· . e ru 10cs requires (a) 'apex society' means a society having the whole of the State of Odssa as its area of operation and havfog as · its members , other societies -with similar objects and <l.cclarerl as such by the Registrar; (b) 'hy~--iaws' means' the regi~tered bye-laws for the time being in force; I. For the St:itcmenl of Objects and Rc 1 sons, sec Orissa Gazelte Extra ordinary, d;<1e<1 the I 'llh M; rch 1962 ( Na. l fil ) ar.<l fer Rcpc.n oi:' Select Commil!cc, ~cc ibid., dated the 21st August J '.162 ( No. -l J 3 ). :!. Ca•ac into (orcc Wilh cffecl from t1H:, lsl July 1965 Vl<.lC Notilicalion N>.; '.' ,n-2C-Xll-A-2/6- -CF .• datc<l the 23rd June I 965, r,ubfohcd in Qrissa (;a;,;,::. E:ur:10.-<linary Jntc<l li:ic 26th Juu-, 1965 ( rl<>- ~'85 )-· 1 i~ Law ~5) 646 1'HB ORISSA Co-OPERATIVE SocIErIES AcT, 1962 ( Or. Act 2 (Sec. 2-contd.) 1[(b-1) 'Central Co-operative Bank' shall have the same meaning as assigned under the Reserve Bank of India Act 1934· ~ cf19:4 J ' (h-2) 'Central Society' means a society not less than five members of which are societies;] (c) 'committee' means the managing commit .. tee of a society by whatever name called, to which the management of the·-affairs of the society is entrusted by or under this Act or by the bye-laws of the society; 2[(c-l) 'Co-operative Bank' shall have the sama 47 cri!J61 meaning as assigned under the Deposit Insurance Corporation Act, 1961 ;] (d) 'co-operative farming society' means a society in which, with the object of increa sing agricultural production employment and income and better utilisation of re sources, lands are pooled together and are jointly cultivated by the members on behalf of the society; 3[(d-l) 'co-operative year' means the period commencing on the first day of July of anY year and ending with the 30th day of June of ·the succeeding year and in the case of any registered society or class of registered societies, the accounts of which are made up to any other date with the previous sanction of the Registrar, the year encl.fog with such date;] (e) 'financing bank' means a socic~y '.\'~1ich includes among its c, bjects L:i creation of funds for making advances in cash or kind to other societies and persons who are its members - and to persons who have deposited money therein; 1. foserled by the Orissa Co-operative SocieLies (Ame.o.dm~nt) Act, 19.70 ~Or.Act 5 cf 1970), !. 2(a). 2.. Inserted by lbfd,s. 2(b). 3, l090rted by the Orissa Co-operative Societies (Second Amendment) A.et. 1970 (Or. Act 21 of l!J70 ), s,2{a). of 1963] THE OR1ss4. Co-OPERATIVE SOCIETIES ACT, 1962 647 (Sec. 2-contd.) (f) 'member' means a person joining in the application for the registration of J. society and a person admitted to membership after such registration in accordance ,vith this Act, the rules and the bve-laws. anu in ·cludes a nominal and CVl associate members , 1[(/-1) 'near rebtive' means father, ff,othcr, husband, wife, son, daughter, u:1divided brother, unmarried sister ,!nd son's wife;] (g) 'officer' means any person empowered under the rules or the bye-Ja\\'S to give directions in regard to the affairs of a society and includes the President, Vice President, Chairman, Vice-Chairman, Managing· Director, Secretary, ~[Assist ant Secretary, } Manager, Member of Committee, Treasurer or Administrator of such society; (h) 'prescribed' means prescribed by rules made under this Act; (i) 'Registrar' means a person appointed to perform the functions of the Registrar of Co-operative Societies under this Act, and includes any person appointed to assist the Registrar when exercising all or any of the powers of the Registrar; U) 'rules' means the rules made under this Act; (k) 'society' means a - co-operative society registered . or deemed to be registered under this Act ; t. Inserted by the Orissa Co-opera tiv~ Sccieti~~ ( Sccor.d AmcndruczH. Act, IY70 (Qr; A<::t2Jof 1970), s, 2(b). 2. Inserted by ibid., s. 2(c). 648 -TEE O~ISSA CO-OPERATIVE SOCIETIES ACT, 1962 [ Or. Act 2 (Sec. 3) {l) 'society with limited liability' means a society, in · which the liability of · its member&, for the debts of the society in the event of its being wound up is limited by its bye-laws- . (i) to the amount, if any, unpaid on the shares respectively held by them; or (ii) to such am cg1nt as they- may, in acca rd ance wi th such· bye-laws, respect ively, undertake to contribute to the assets of the society; (m) 'society with unlimited liability' means a society, the members of which are, "in the event of its being wound up, jointly and severally liable for · and in -respect of all its obligations and to contribute to any deficit in the assets of the society; and 1[(m-JJ ~Standard acre' Shall have the Same OriSSII Ac 1 meaning as assigned to it under the brissa 16 or 1960• . Land Reforms Act, 1960;] (n) 'State Co-operative Union' . means the society registered under the Orissa Co operative Societies A.et, 1951 by tlie name orusa Act of the Orissa State Co-operative Union. 11 or 1952• Limited. CHAPTER II REGISTRATION OF CO-OPERATIVE SOCIETIES RcgiSlr,Jl 3. (J) The State Government ·may appoint a per son to be the Registrar of Co-operative Societies for the State and may appoint other persons with prescribed designations to assist him. · . . (2) The State Government may,. by general or special aider, confer on any person appointed to assist-the Registrar, all or any of the powers of the · Registrar under this Act to be exercised within such local limits b:s ll!ay be assigned by the Registrar. 1. loserted by the Orissa ~perative Societies (Sec:ond Ame11dme:a1) . Act, 1!)70 (Or. Act 21 of 1970), 3."2(d). or 1963] TBB 0RrssA {;O-OPmtATIVB Socm:rms ACT, 1962 ( Sec~·. 4-6) (3) The State Government mcty also, by order, appoint any society or local · authority. to , assist the Registrar who shall exercise in the prescribt!d manner such power~ of the Registrar, as may be -specified in the said order. · (4) Evecy person appointed to assist the Registrar sha11 exercise the powers conferred on him under sub section (2) or (3) , as the case may be, subject to the general superintendence and control of the Registrar. 649 4. Subject to the pro.visions of -this Act, a· co- societies operative society which has as its object the'prom0tion: :ruch.m~ ;:>[ economic interests of its members in accordance with e regc st co-operative principles, or a co-operative· society establisned with the object of facilitating the operations of such a society, may be registered under this Act. S. (I) A co-operative society may, :subject to the R~gi,tration . . f 1... • ( ) b . d . h l.i . d With Limited prov1s1ons o suv-sect1on 2 , e regrstere wit nute or unlimited or unlimited Jiability. tiabilily. (2) Unless the State Government by gen~ral ·or special order otherwise direct, no society shall be regi- · stered after the commencement of this Act with un.;. limited liability, if it has any society as its member. (3) The · word • limited ' or its equivalent . in any Indian language shall be the last word in the name of a co-operative society registered under this Act with limited liability. · 6. (1) An application for the registration of a A11plic~tio.O: . . h ll b d h R . t , for reg1str11. co-operative ·society s a . e ma e to t e e~rs rar lion of co in such form as the Registrar may, from time to opi: raµve · if d th l' t h 11 f · h t locccties. time spec y, an e app 1can s s a urrus o · him' all such· information about the society as he may require. (2) Every such application shall conform to the following requirements, namely :- (a) the application shall be accorn·panied by five copies of the proposed bye-laws of · the society ; 650 THE 0RISSA Co-OPERATIVE SOCIETIES ACT, 1962 l Vq act 2 Ri:gistration ( Sec. 7) (b) where all the applicants are individuals, the number of applicants shall not be less than ten ; (c) where the ·objects of the society include the creation of funds to be lent to its members and where all the applicants are individuals, the applicants shall reside in the same village or tow.c. or in the same group of villages or belong to- the same class or pursue the same occupation ; and (d) the application shall be signed by everyone of the applicants who is an individual and in the case of applicants other than individuals by a person duly aut horised. by such applicant in that behalf 7. (1) If th~ Registrar is satisfied (a) that the application · complies with tho provisions of this Act and the rules; (b) .that the objects of the proposed society . are in accordance with section 4 ;, (c) that the aims of the proposed society are .not inconsistent (\vith the principle, of social justice); (d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules ; and · (e) that the proposed society complies with the requirement of souhd business and has reasonable - chances of success ; the Registrar may register the co-operative society and its bye-laws. (2) Where the · Registrar refuses to register a co-operative society, he shall communicate the order of refusal together with the reasons therefor, to such of the applicants as may be prescribed. of 1963] -THE 0RJSSA GO-OPERATIVE SOCIETIES ACT, 1962 ( Sees. 8-11 ) 651 8. Where a co-operative ·society is registered Rcg,i1tr11tio.o under this Act, the Registrar shall issue a certificate certificate. of registration signed by him, which shall be con clusive evidence that the co-operative society therein mentioned is a society duly registered under this Act. 9. A co-operative socieW- registered under this co- o~cr.:itivo Act shall be a body corporate by the name under socio1ic, ~<) h . h · · • , ] . be bodies w tc 11 1s registered havmg- -perpetua success10n corporate. and a common .seal, an& with power to hold property, enter into contracts, institute and defend suits and other legal proceedings and to do all things necessary for -:·1-:.::: purpose for which it was constituted. 1(1 (1) A society may, by an amendment of Change or its b-J'e-faws, chr1nge its name. n~me t of - a soc:c y. (2) Where a society changes its name, the Registrar shall enter the new nc, me in the register of co-operative societies in the place of former name and sbaH amend the certificate of registratio:1 accord ing1y. (3) The change of name of a society shall not affect any rights or obligations of the co-operative society, or render "defective any legal proc~edings by or against it; and any legal proceedings which might have been continued or commenced by or against the society by its former name may be continued or commenced by its new name. 11. (/) Subject to the provisions of this Act and qha n!Jt or the rules a society may, by an amend!11ent of its bye- 1111 b1h1'· laws, change the form or extent of its liability (2) When a society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to c1 ll its wcmbers and creditiors and notwithstanding any bye-law or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or 1oa~s) as the case may be. (3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shaII be deemed to have assented to the change, 652 THE 0RJSSA Co-o?ERAT~VE Socrnrrns Acr, 1962 [ Or. Ac~ 2 (Sec. 12) (4) An amendment of the bye-laws of a society changing the form or extent of hs liability shall not b~ registered or .take effect until, either (a) the assent thereto of all members and creditors has been obtained ; or (b) all cbims of members and creditors who L'.\C rci se the option referred to in sub section (2) within the period specified thereb have been met in full. Awe11 dmcnc . 12. (/)· No amendment of any bye-law of a of bye-laws ]I ha 0 ;-. ~.,l; .•.. -society slu be vaiid unless such amendment s ·~en registered under this Act. 1[(2) Evcrv Dfoposal for such amendment shall be forwarded io the Registrar and if the Registrar is satisiiec! th~tt th~ propused amendment (i ) is not contrary to the provisions of this Act and the rules· , (ii) docs not conflict with co-operative principles; (iii) satisfo~s the requirem~nts of sound · business; (i11) will promote the economic interests of members of the society; ( 1·) is nc t i nco nsi sten t with the principles of social justice; and (vi) is well defined and does not in any way hamper the principal · objects of· the society; he may register the amendment: Provided that an amendm~nt made with the .. prior approval of the Regis• rar shall be registered byhlm.} I Su bsti! utcd by the Oriss.:i Co•oper.i live Societies . (Amendmcol' Act, 1970 (Or. Act .5 of 1970), ~. 3(a). of 1963 J THE ORISSA Co·OPBRATIVE so~IBTIE., Acr, 1962 ( Sec. 13) (3) The Registrar shall forward to the society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered. (4) Where the Registrar refuses to register an amendment of the bye-laws of a society, he shall communicate the order of refusal, together with the reasons therefor, to the society. I [(5) Where in the case of an apex society, Central Society, Co-operative Bank or Financing Bank or in the case of any other society assisted by the State or Central- Government. in any of the forms specified in sub-section {I) of section 31, the Registrar is of the opinio~ that an amendment of tbe bye-laws of any such society is necessary or desirable in the interest thereof, he may, in the prescibed manner, ca11 upon the society to make such amendment within such period as .he may specify in that behalf. (6) If the society fails to make, the amendment within the period aforesaid the Registrar may, after giving the society a reasonable opportunity of being heard, register the amendment and shaH forward to the society a copy of -the registered amendment 'tc,gether with a certificate signed by him; and such certificate shall be conclusive evidence that the amendment has been duly r.::gistered.] 653 13. An amendment ·of the bye-laws of society Wbc~ 1 shall, unless .it is expressed to come into operation ~n;e~a°:, 1 on- a particular da.y, come into force on the day on c 1 omc into hi h . . . d or.c:e. w c 1t 1s registere : :i. {Provided that an amendment made with the prior approval of. the Registrar shall come into operation with effect from the date on which the resolu-.;on 111 respect thereof is passed- at the general ·mi~s~: -, ,, )f the society.] 1. !nEerted by th~ Orissa Co-operative Societies (Amendment) Act, 1970 (0,. i,,.;:t 5 of 1970), S, ;I {b), 2. Adrlt:,d by iolli., 3. '1· ·1 654 TRB OR!SSA Co-0PB~ATIVB 'S0C~TlBS Acr, L96l [Or. A et 2 ( Sec. 14) J\m~gama- . 14. (1) A society may, with the previous approvul ~;~~~~n!~~ of the Registrar and by a resolution passed by a Uabmt.i~s. majority of the members present and voting at a ~~~o~~ti!~~ general meeting of the socieW- - · (a) transfer its assets and liabilities in whole or in part to any other society which is prepared to accept them: or (b) divide itself into two or more .1ocieties. (2) Any two or more societies may, with the approval of the Registrar, by a resolution passed by a majority of the members present at an ordinary · general meeting of each such society specially convened for the purpose of whlch at least seven days1 clear notice has been given to each member and subject to the other condition of this section amalgamate into a single co·operative society. (3) The Regist rar, after an inspection is made under section 64 or an enquiry is held under .section 65 may, with the consent of the concetned 1inancing bank, if any, and subject to the· prescribed conditions, order (i) that two or more societies with the same or having over·lapping or adjoining ateas of operation and ·having· similar objects shall amalgamate themselves and· form a new s·ociety; or · (ii) that a two or society shall be more societies. divided into (4) T.h.e resolution of a society under s11b~section (1) or sub-section (2) or the order made uri.tler sub section (3) shaU contain all particu la.!.'S of the transfer. division or amalgamation as th~ case may be. (5) When a society has pa~sed any such resolution under sub-section (J) or sub-section (2) or when-an order has been passed by the Registrar under sub section (3), .the society concerned shall give notice thereof in writing in the prescribed manner to all its members and creditors and, notwithstanding any by-laws or contracts to the contrary, any meroh~~ ':i' Ot 1963] THE ORISSA C0,0PER8.TIVE SOC!ETIJ:S Acr, 1962 ( Sec. 15) creq.itor shall, during tI j pe. iod of one month from t~e date !lf..js.s~e of the notice, have the option of withdrawmg rus shares, deposits or loans, as the case may be . . (6) Any member or credit0r who does not exercist, his option within the period specified in sub-section (5) shall be deemed to have assented to the proposals contained in the reso 1 u tion or order, as the case may be. (7) A resolution or order passed under this section shall noi take effect until all claims of members and creditors who exercise the option referred to in sub-section (5) within the · period specified therein, have been met in full. (8) Wher.e a resolution or an order passed under this section involves the transfer of any assets and liabilities, the resolution or order shall, notwithstand ing anvthing contained in any law for the time being in force, be a suf!i.cient conveyance to vest the assets and liabilities in the transferee without· any further assurance. (9) The amalgamation or di vision of societies shall not affect any rights or obligation of the societies . so amalgamated or divided or render defective any legal proceedings which might have been continued or commenced by or against the societies which have been amalgamated or divided; and accordingly such legal proceedings may be continued. or com menced by or against the amalgamated society or, as the case may be, the new societies. 655 15. (J) Where the whole of the assets and liabili- Cnnce.lla11on ties of a society are transferred to another society in~i'o:~~1t accordance with the provisions of section 14 the car~s ?.t .· registration of the first mentioned society shall~~)~~~~cs stand cancelled and 1t shall be deemed to have been dissolved and shall cease to exist as a corporate body. {2) Where two or more societies are amalgamated into a new society in accordance with the provisions or section 14 the registration of each of the amalgamat ing societies shall stand cancelled on the registration of the new society and such amalgamating societies shall be deemed to have been dissolved and shall cease to exist as corporate bodies.· 656 THE ORJSSA Co-OPERATIVE SocrnTIES A.cT1 1962 (OL let, ( Sec. 16) (3) Where a society is divided into two °' mora societies in accordance with the provisions of section 14, the registratio11 of that society shall stand cancelled .on the registration of the new societies, and that society shall be deemed to have been dissolved and shall cease to erist a~ a corporate body. CHAPTER III :MEMBER OP TIIE CO-OPERA TrvB SOCIETIES AND THEIR RIGHTS AND LIABILITIES Panon1 who 16. (1) No person shall "be admitted as a member may ·becomo of society except the following namely· mcmbcn. - ' ' {a) an individual competent to enter into a 9 of .....,, . contract under section 11 of the lndiap. 10 '• Contract Act, 1872 ~ (b) .any society; · (c) the State .Government.; {d) the - Central Government; an.d (e) any ·other person as may be prescribed: Provided that nothing in .this sub-section shall debar a student,- who is a minor, from becoming a member of a society formed for the benefit of the students of an· educational 1nstitutron. '[ 2((2) No society shall, without sufficient cause. refuse admission as member to any person who is. duly qualified therefor and the decision refusing admission shall be communicated by the society. to the person concerned with reasons for such refusal within thirty days from the date of application for member~ ship failing v.,hich such person shall be deemed to have been admitted as a member of the 5QCiety with effect from the date following the date of expiration of the ~aid period of thirty days. (2-a) Where a person is deemed to have been ~drr,itted as a member of a society in pursuance of the preceding sub-section, the society may file an . application before the Registrar within sixty days from the date with effect from which such person is ~ !. Subatito.tcd by the orissa ~ B dM.:P (Aoe••W!t) ikl;,. 1970 (Ol:, ."1t S of 19iS)~ s. ~ 2. Substitukd by the OriJII. Co-operative Socictiea (AJm:nd,, . ) A.et. 197:i { Qr. Act 2j of 1975 ), L 2. . or 1963] THE OR1ssA Co-OPERATIVE SoCIETIES A.er, 1962 657 (Sec. 16) deeme.:1 to have been admitted as a member for can celJation of the membership, whereupon the Registrar ,hall, after making such enquiry as he deems fit, pass such order as he thinks proper.] · 1L(3) Notwithstanding anything contained m the preceding sub-sections (a) no individual shall be eligible to· be· a member of an apex society or a Central Co-operative Bank; and (b) no in{l.ividual shall be eligible to be a member of any society if he or any of his hear relatives having common economic interest with him carries an any business similar to the one carried on by the societyJ (4) Any individual, who was continuing as a member of any-society immediately prior to the date of coming· into force of the Orissa C o-operative Soci eties (Amendment) Ordinance, 1970 and who is not or. Ordi.nar. o~herwise eligible to be a member of such society co.11 oft 970. in accordance with 2 [the provisions of clause (a) of sub-section (3)], shall have to resign his. member ship within three months · from such date, failing which he shall be deemed to have ceased from being a member and upon such i;esignation or cessor the society shall, subject to the provisio ns of sub-section (4) pf section 23 refund his contribution to the share capital of the society.] 3[(5) Any individual, wh0 was continuing as a member of any society irrimediate ly prior to ~he 25th day of August, 1970- and who is not otlierw.1se eHgible to be a men:;.ber of such society in ·accordanpe "-'ith the provisions of clause (b) of sub-section (3), shall have to resign bis membership within three filOnchs from the said date, failing which he-shall be deemed to have cea::.ed from being a member· and upo.n such resignation or cessor the society shall, · subject to the provisions of sub-section (ef) of section 23, refund his contribution to the share capital of loo society. 1- substituted by thc'Orina Co-operative Socictic., (Second Ameridmwt) A~. 1970 (Or. Act 21 of 1970). s- 3 (a). 'Z. Sub!tituuid by ibid., s. 3 (b). ,. In,crted by Ibid.,!· 3 (cJ. 6581 THE ORlSSA Co-OPERATIVE SOCIETIES ACT, ·r962 - [Or. Act 2 · (Sec. 17) Explanation-For the purposes of sub-section (3).....:. (a) the business of money-lending shall be deemed to be similar to the bus1ness carried on l;>Y a ~rimary Agricultural Credit Society, Co-operauve Baru<. or a Land Development Bank; (b) the business .carried on by a trader ~hall be deemed to be similar to the hL1s1ness carried on by a marketing co-operative society and Consumer's Co~operative Soci~ies; (c) the business carried on· b y ~ contractor shall be deemed to be s1mI1ar to the business carried on by a labour contract · co-operative society or a forest ma1keting co-operative society; and ( d) a near relative of an individual shall, unless the contrary is proved, be deemed to have common economic interest with such individual.] Affiliation 10 17. Notwithstanding anything in- section 16 in "thC State co- r~spect of the membership in the State Co-operative lini~i. t I v e Union such-of the ~ocieties shall be bound to afl]li ate themselves to and become members of the Union as may, subject to the rules made in that behalf, bo declared from time to'tirne by the State Government, having regard to their income and activities and the · number and nature of their members, to be liable to become such niembers of the u nioil.: Provided .·that if any such society as aforesaid fails to comply with the re.quirements of this sub section within such time as may be prescribed, the Registrar sha\1 have the power to declare such soci ety to have become affiliated to and a member of the Uniori and thereupon tbe 'society shall remain subject fo all the obligations and entitled to all rights and privileges as a member of the Union anti be liab1e to-pay all fees and contributions in accordanoo with the bye-laws of the Union.· of 1963] THB ORISSA C0-0'.PBRATIVE SocrerIEs ACT, 1962 (Sees. 18-21) 659 18. (I) A society may admit any person as a Nomltial °' nominal or associate member. assoeiaie (2) A nominal member -shaH not be entitled (a) to any share, in any form whatsoever, in the assets or profit of the society; and (b) to be elected to the Committee of a society. (3) Save as prov.ided in this· section, a nominal or associate member shall have such privileges and rights. of a member and b~ subject to such liabilities of a member, as may be specified in the bye.laws of the society. members. 19. No member of a society shall cxerci se the Member not . rights of a mem:ber unless he has IJ)ade such payments ~~~~is\i.11 to the society rn respect of membership or has acquired due raYmcnt such interest in the society, as may be specified in made. the bye-laws. 20. Every member of a society shall have one vote or vote in the affairs of the society: meNlxu. Provided that (a) a nominal or associate member shall not have the right to vote; (b) where the. State Government or t1ie Central Government is a member of the society, each. person nominated by or on behalf of such Government on the committee nf tlie society shall have one vote. 21. (J) Every member of a society shall exercise MQ.D.Der- of his vote in person and no member shall be per- e;,; m:.:l!in.ri: initted to vote by proxy. vote (2) Notwithstanding anything contained in sub sectio~ (1) where a member of the society belongs to aoy 01 the categories specified in clauses (b) and (e) of sub~section (n of section 16 such member may, subject to any rules made under this Act, apooint any person to vote on its behalf in the affairs orsu<;:h sociev:;. I 660 THE ORISSA Co-OPERATIVE Soc1ETIES ACT, 1962 {Or. Act 2 ( Sees. 22-23) lle,trici.ion 22. In ·any society no member belonging to the or bold mg or category mentioned in clause (a) <Jf sub-section (J) •bare,. of section 16 shall, (a) hold more than such portion of the total share. capital of the society not e;\ceeding one-tenth thereof as may be prescribed ; or (h) have or claim any interest in the shares of · the society exceeding five thousand rupees : Provided that che State Government may, by notification, specify in. respect of any class of societies a higher maximum· t~at one -tenth of the share capital a. 'higher amount than five thousand rupees, as the case rr; LY be; Re11rictions 23. (/) The transfer of. a share or interest of a on transfer b · h · 1 f · h ll b b. of shares or ruem er m t e capita o a society s a t s-u ~ec.t to inaer .. ,, sGch conditions and restrictions as to the maximum holdings as are specified in sectioP 22~ (2) ·No· trapsfer by. a member of his share or interest in a society shall be valid unless (a) the member has held such share or interest for not less than one ·year. ; (b) the transfer is made to a member of the society ; an~ (c) the transfer is approved )Y the wmmittee of the society. · (3) Where a member of a co.operative· farming society has poole4 lands in favour· of the society p.o such land shall be withdrawn from the society within such per~od as may- be sp~cified in the bye-laws of such society: 1[(4) Notwithstanding anything contained in the p receding sub-sectien where a person ceases to · he a member of any society by reason of resignation or e?-pulsion pr by reason of incurring any disguali flcatwn provided under this Act or the Rules or under the bye-l~ws of the society, the society may retire the shares of or the interest in the share ~apital held by such person on payment of the face value of such share or interest.] I. Subttituted by lbe Orlss-n Co-operative Socictfos ( Secood ~dmettl) Act. 19T.o {Or. Act 21 of 1970), s., ,1. ar t9Sl . 1'e:e OA.tSSi\ U"-0·0\iSl(Att\lS SOetB'r113S AC'I\ 1962 661 "ecy; 2/1-25) 24 .. (J) On ~ death of. a member, the sodety ~et6t shall transfer the share or interest of th e.~:~cm decea~ mtmit>er to . the person or pe~sons nom.t• t:ciembct. :nated JD BCC()rdallc... wtth tht rules, or. if no person has. been so nominated, to such pet!;on as may appeat to the Committee after such enquiry as he deetns fit to be the heir or legal representative of the deceased member: Provided that such nominee, heir or ]~gal re presentative, as the case may be,· is admitted as a member of the society : · Provided further that nothing in this sul>,,section shall prevent a minor or a person of unsound mind or a person suffering from any other disqualification, if any, under the bye-Jaws from acquiring by in1ieri• tance or otherwise the share or interest of a deceased member in a society or from receiving dividend or benefit accruing in respect of such share or interest. (2) Notwithstanding anything contained in '· sub-secti<?n (J) any. such nominee, heir, or lep.I re . presentauve, as the case may be, may reqwre the society to pay to him the value of the share or interest of the deceased member ascertained in accordance with the rules. (3) A society may pay all other :i;non~ys due ·to the deceased member from the society to such nominee~ heir o-r legal representative, as the case may be. . ( 4) All tran~fers and p~ents ma4e by ~ socte3i 1n accordance with the prov1s10ns of this sect.Ion s be valid and effectual against any demand IQ.ade , ·upon the society by any other person. ' 25. (I) Subject to the provisions of sub-section Llabllli,o o1 (2) the liability of a past member or of the estate ofC: •;:b(i, a deceased member for the debt.s of the society as()r ~ they existed- . ~ (a) in the case of a past member. on the date . on which he ceased to be a member; and (b) in the case of a deceased mem ber on the date of his death, shall continue for a period of two years from such date. 662 Taa 0~1ssA qo-DPBRA.TIVB s'.):rnrrns Acr, 1962 [O,;-'. Act 2 (Sees; 26-27) (2) \Vhere a soc icy is ordered to J:,e w'ound ~p under section 72, the lia hility of a past member or of the est.ate of a deceased '1}.ember who cea.sed to be a ·member ot died within two years immediately preceding ·the date of the. order of winding. up, shall continue until the entire liquida tion · proce edings are completed, but such liability shall extend- only to the debts of the society as they existed on the date of his c~asing to be a member or ~eath, as the case may be. Rc~tr:ctJoo 26, (1) Notwithstanding anything contained in on tra.m!c 0 r ofr· this Act or in any other law for the time being in force, p->5SCS$10 o b f • h b. f . h • th la and iorcrcst a mem er o a society, t e o Ject o whrc 1s e rec in ~and r:Jd mation and colonisation· of land or the. acquisition of ~~.:~. O ]and and the leasing out thereof to its members, shall not be entitled to transfer possess10n of or interest in· any land held by' him under the society, 'to any person except to the society or with the prevjous approval of, the society given in accordance with the bye-laws ·10 a member thereof or to a person whose application for .QJ.embership has been accepted, by the societ):' .. (2) No land held un:der a society specified in sub-section (1) by a member-thereof shall be !!ttachable · in any suit or procee.ding. for the re'?overy of any debt other than· a debt due to the society or a member thereof. · · · CHAPTER IV MANAG~T OF Socmims / 'Fln.aJ autMr. 27. The final authority in a society shall vest in .Jty in s the general body of members : ,ocioty. Provided that where the byt"'wlaws of ~ society provides for" the constitution of a smaller body consist ing of delegates of members of the society elected in accordance with such bye-laws, the smaller· body , shall exercise such powers of the general body, as ~:k be prescribeci or in the absence· of rules in this be as- may be specified· in the bye-laws of the society : , Provided further· tfuii 'nothing in this sectiob sbaH affect any pow~rs conferred on · a committee or any officer of a societyi>y the rules or the bye-lam. of·1963) · -THE ORissA Co-.oPBRATIVB SocmTIES Acr, 1962 663 (Sec. 28) . 28. (1) The· management of a- society shall vest Society- 1c in a Committee constituted in accordance with th~~~~ rules. and its bye-laws and the committee so constituted · ·shall exercise such powers and perform such duties as may be conferred or imoose d bv or under this Act. . 1 { (2) The Committee of a society which is assisted by the State Governroent or Central Government ,in · any of the forms specifi~ in ·sub•section ()) of secei<>D 31 shall consist of-not less than five and not more-thatr eleven members : Provided that- . ·(a) the aforesaid maximum limit .in !he ~ses of a C,entral Society and an Apex Society shall be fiftee? and tw~nty-one, respectivttly ; (b) in . ilie case of a Regional ·co-operative Marketing Society the Committee shall "not jnc1ude more than three members repra.. $enting the individual members· of the s.ociety to be chosen from am.ong members who have .market~d their produces through the society in:· the prescribed manner during the preceding two cg .. operative years and the reroainirig members Qf .tl!e (:!omm.ittee .gfialt · be representatives of the societies which are members of the said Ma:ketiq Society : JF• ] {-c) in the case of i,rimary Agricultural Credit Go-operative Societies and SeJ"Vice. Co operative Societies at least one-third of the members of the Committee shall be perso11s owning not Qicre than three stilndard acres of land -or persons who are landless .-c111.ti· valors 3[ ; and] 1:·SUbstituted by 1be Ctmaa Co-opcratid'SoeieUes (Second A,menda:it1Jl.l ,1,$!:t. 191':I (Or; Act 21 of~ 11. i faJ. 2. Omitted by the Oris~ Co-operative Socit:lie.s (Amendment) Act, 1978 (Or. Ac! 1 or J97~). 5. 2 (a) , ,). · 3. Suh~titutcd by. ibid., s, r(a) {ii). 664 1ilB 0RISSA Co-OPERATIVE SOCIETJFS ACT, 1962- [Or. Aot 1 (Sec. 28-co~td.) 1 [(d) in the cases of Farmer Services Co-opera tive Societies and Largy s;ze Multi purposes Co-operative Societies. a.t least two thirds of the members of· the Com mittee shall respectively :be sma1l farmers and members belonging to . the -Sobeduled Tribes. 2 [Explanation /-'small farmer' means a person who owns not more than five acres of unirrigated land.or two and a half acres of irrigated land.] Explanation II-The principles for determinirig whether a society is a Large Size Multi purpose Co- operative Society or not, shall be as ·may be pre~cribed.] (2-a) If the bye-laws of a society which were in force immediateJy prior to the 3[date of commen cement of the Orissa Co-operative Societies (Amend ment) Act, 1978] are inconsistent with the provisions contained in sub-section (2), the society shall; within three months from the said date, amend the bye-laws so as to bring thelll in conformity with the said sub section failing which the Reg1strar shall make the necessary amendment and register the same in the manner provided in sub-section (6) of section 12. (2-b) Upon: an amendment being made under sub-section (2-a) the society shall whe:ever neces s~, reconstitgte the Committee within one month from the date of enforcement of the amendment in aftC!)rdance wit~ the bye-laws as so amended failing whi(:h the Registrar shall remove the , Committee and thereupon the provisions contained in section 32 i n so far as- t~ey relate to ~anagement of the affairs of the society and reconstitution of its Com mittee, shall apply to the society : · , Provided that the Committee shall be reconsti tuted within six months from the date· of its removal. ] J. Omitted by the Qrissa Co-operative Societies (Amendment) Act, 1978 (Or. Act 1 of 1979), s. 2 (a) (iii), · 2 . Subsliluled by the Orissa Co-operative Societies (Amendment) Act. 1979 (Or. Act 7 or 1979),-s. 2, w. e. f: Ute 1st JaDllary 1979. ~ ;, Substituted by the· Orlssa Co-operative Socictie! (Amendment) Act. 1978 (Of. Act l of 1979), s. 2 (b). . of 1963·] THB ORISSA-Co-oPBRATIVE Socmrus Acr, 196 2 · 665 (Sec. 28~conrd.) , (3) No pe1;son sb~U be eligible 1[for peing choseri or for contin umg as a. ~ember or President ] of the Committee of a society if he . (a) is an applicant to .be adjudi~ated an in solvent or an und1scharged·. msolvent ; or (b) has b een .. sentenc~Cl for an offence invol ving moral turpitude such sentence not having been reversed. ; or · (~) is of unsound mind or is a deaf-mute or is suffering from leprosy ; or· (d) is a paid employee of the socit:ty, the · :financing bank of the ·society or of any other· society of which such society is the financing bank.: Provided that nothing in this Glause shall debar~ . (i) any J?erson specifically permitted bv the Registrar in that behalf-from becoming the · Secretary , of the society ; or (ii) the paid employees of · -societies from . becoming members of the Committee . of a society composed exclusively of ·such employees· ; .or (e) has failed to make any pa:;yment' to the society or to any other society in respect of any loan graD;ted to him by such society for such perio~ as may be prescribed in the bye-laws of - the society which has advanced the loan or in any case for a period exceeding six months ; or (J) is interested directly or ind"irectly in any contract made with· the spdety or in any ~a~e or purchase made by the· society or m any contract or transactions of the society ( other than inv'estment and bor rowing) involving financial interests, if the contract or transaction, · sale or purchase be not com plied ; or. · I. Substilutei.by the Orissa Co-operative SockrieS (Amendment) Act, 1978 fOr. Act I of I 979), s. 2 ( c). · ' . . 666 . THE ORISSA CO·OP.ERATIVB SoCJETIES ACT, 1962 (Sec. 28-contd .) . [Or.Act-' (g) has been expelled from a society under . the provisions of its bye-laws Provided that t his disqualification shall not apply where· more than two years have .elapsed from the date of such expulsion or where the Registrar has, sanctioned the re-admission or admission within the said period of. any such member as a member of the · same society or .any other societv. as the case may be: · 1 [( 4) No individual shall,· whether by himseJI or · as a representative of a society, be eligible to become a member or President of the Cori:lmittee of any society assi~ted by the State or Central Government in any of the forms specified in sub-:section (J) of section 31 or of any Central Soci~ty, Apex Society or Co-operative Bank if he- - . . - - . (a) has ..:ompleted two consecutive terms as ·member of the Committee; or (b) h3:s hel& such office for a total ·period. of · · mne years) by the date of filmg of his . nomination . . (4-a) No individual shall,-· at any· time, whether by him.self or -as a representative of any society, hold office as a member of the Committees of-· (a) more than two primary so~ieties; f/:J) more than one Cen~ral Soci~ty including a Central Co-operative Bank; . · ( c) More· than one · ~pex society. . . . . . I (4-b) Any person holding office 8;S a 11?,Ctnber Of President of. the Committee of .any society,· who would· not · have been eligible under su1?-section (~ to hold such ·office had that sub-section been 1n force at the time 'when he became such member or President, ·as the case may be, shall have.to resign his me:qiqership ·within three months from the d3:te of coming into force·ofthe Orissa Co-op erat1ve Soc1et1es or111a Ordi . (Amendment) Ordinance,· 1970, failing which he s h all ~;" 1 C:7~ 0 • 1 be deemed to have ceased from such membership. · 1. Substituted bt the Orissa · Co-c.perali\·4 Socletie1 (-Amendmet1tl · A.et, 1970 ( Or, Act 5 of'i970 ), 11 •. 7. ofl96.11 THE ORISSA Co-OPERATIVE SOCIETIES ACT, 1962 (Sec. 28-A) 667 · (4-c) If any per~on,holds -office on the afores~id date as . a member of tht- Committees of more than 'one society in COn!ta'vt:n~ion of sub-section (4-a) · then~ unless he resigns his membership from the required· number of Committees so as to bring his men:ibers~iP. within the 'limit specified in that sub section w1th1n three months from the said date the Re~strar m~~.y,- after giving him a reasonable oppor . turuty of bemg heard, rern~ve him from membership of aU or anv of the Committees] 1 [(4-d) Nothing in sub-sections .(4) and (4-~) shall apply to any person nominated by the State Govern-. rnent to the Com!Dittee of any society.} · 2[(5) Jf in the opinion of the Registrar (a) a member or President of a Committee: of a society has incurred any of the disquali fications mentioner{ in ·sub-section (3), or; (b) any officer qf a. society who having the power, by or under the bye-laws of the society, to remain in custody of any cash belonging to the society, l<,eeps in his custody, without reasonable cause, any such money in excess of the permissible limit beyond the period aIL,wed under such bye Jaws or in any other' manner not permi tteo thereunder' the Regi~trar may. by· order in writing, after giving such member, President or officer a reasonable · opportunity of being heard, remove him from his, · office and thereupon he shall be deemed to have · vacated the office with effect from tbe date of the said order J 3 {28-A (I) Subject to the following provisions EIC<:tioc of the election· of the President and ~he members of the ~6='Je~~ 'Committee of a society shall be held and conducted in the prescribed manner. 1 Subs\ituted by the Oris.sa Co-operative So'?ielies ( Second Amendment) Act, i970 (Or.Act 21 of 1970 ), 3. 5 (b). . . . 2 Suosritu!~-J by the Ori,s~ Co-opr.rativc Socielics (Amemlmwl) AcL, 19?8 (Or. Act 1 of I 979), s. 2 (d). 3. 's1:b~titulcd by the Grisso Co-opero.tive Societies (2nd Amendment) Acl,-1970 (Or. Act 21 or l 970), s. 6. 668 THE OrussA Co-oPBRA nvn SocmTJES AcT, 1962 ( Or. Act :2 (Sec. 28-A-contd.) (2) The Registrar shall, by general ~r special · order, appoint one or more election officers for holding such election· and different election officers. may be· appointed for different classes' of s·ocieties or for different· areas. (3) The Secretary or the Executive officer of the society shall intimate the due·date of expiry of'the term of office of the existing Committee to the concerned election officer at least three ·months prior to such date .. ' 1[(4) Upon receipt of the intimation as aforesaid or upon his own information as to the aforesaid date, the election officer shall forthwith (a) fix the date of the· general meeting of the society for holding the election and publish. such date in the prescribed manner: · Provided that in no case the peripd inter vening between the- date of such publication and the date of election meeting so fixed shall be less than two months; ' (b) direct the Secretary or the Executive O,fficer of the Society to prepare the . ~01ms of notice for the' meeting· nnd dehver t~em tc him on or before a date to be specified in that, di rection,] · (5) After receipt of the forms the election officer ·shall serve the notices on all the 'members, of the soci ety under certificate of posting at the cost of the society. · · · (6) The election o:ffi.1;~r or if he is unable to attend, any person specially authorised'by him fo. that behalf shall preside over, conduct and regulate the proceed ings at the meeting. · (7) Ail casual vacancies in the Committee of a society shall be filled up in accordam.:~ with the provisions contained in the bye-laws of the society.] J. Substituted by th<! Oris,o Co-opcro!ivc, Societies (Amendment) Act,. 1976 (Or. Act 26 of 1976), s. 2. of 1963] THB ORISSA Co-OPERATIVE SOCIETIES ACT, 1962 669 (Sees. 29-31) Z9. A general meeting of a society shall be held Annual once in a year for the purpose of- ~:U: (a) approval of the program.rue of the acti vities of the society prepared by the committee for the ensuing yearj (b) election, if any, in the prescribed manner of the members of the committeo other than nominated members; [(b-1) reviewrng· the loans advanced to the members of the committee or any of their near relatives having common economic interest and if necessary to direct action for recovery of such loan;] (c) COIL5ideration of the audit report and the annual report; (d) disposal of the net profits; and (e) consideration of any other matter which may be brought forward in accordance with the bye-laws. 30. (J) The committee of a society may, at any Special time, call a special general meeting of the society and ~~!{~g. shall call such meeting within one month after the receipt of a requisition in writing from the Registrar or from the financing bank of which the society is a member or from such number of members, or such proportion of the total number of members, as may be pre3cribed. (2) If a special general meeting of a society is not called in accordance with such requisition, the Registrar or any person authorised by him in this behalf, shall have the power to call such meeting a !1.d wch meeting shall be deemed to be a meeting (;:Jli.-'1 by the committee. ,-r. ( 1) u- h St t .... 1. .1 ,-I uere t e a e Govc::rnnent Government or Central Nominees or tb.i aavan. 1. rn~nlcd ~y !Ji<! Orii~n Co-operalivc Socictios (Second Ame11dmrnl) !\Cl. !970 (Or. Acl '.!I of L',70), s. 7. men\ on tho committee of a ,acictY, 670 TH£ OrussA Co-oPERATNB- Socmms-AcT, 1962 [or.Act l (Sec. 32)) 1 [(a) has subscrib~d to the share capital of a society or has granted any assistance m cash· or in kind or in any other manner; or] (b) has assisted inwrectly in the formation or augmentation of the share capital of a society -as provided in Chapter VI; or (c) has guaranteed the repayment of princi pal, and payment of interest on deben tures issued by a society; · or (d) has guarantt:i::d th~ repayment of princi pal and payment of interest on loans · and advances to a society; the State Government or the , Central Govern ment, as the case may be, or any authority specified by such Government in this behalf shall have ~he right to nominate one-third of the total number of members of the committee of such society. 2 [Provided that the number of members so nomi nated shall in no case exceed three.] (2) A member nommated on the committee of ~ society under sub-section (1 ), Sb.all hold office durmg the pleasure of the State Government or the Central Government or the specified authority as the case may be. ' ~r:r=~~!e C32. 3 [(!) If, fin theS opinion of tthle Regkistradr, ~ th 1 et and power to OII11Il1ttee o any ociety pers1sten y ma es e,au d~wilic~ or is negligent in the performance of the duties im fhe =~t,. posed on it by this Act or the rules or the bye-laws, oi commits any act which is prejudicial to the interest of the Society or its members, oi is otherwise not functioning properly, the Registrar may, after giving the Committee a:..1 opportunity to state its objections, if any, within twenty-one days from the date of service of the notice issued in ·that behalf, by order in writing stating reasons therefor, remove the ~mittee: · 1:. substituted by the Orisu Co-oper 1·v s J • Ad, lSl70 ( Or. Act S of 1910 ), 1• s. a 1 0 "C et.ics ( Amendment ) l. Inserted by the Orissa Co-operative Societies ( Amcndmenr) Ace 197S ( O~. Act 25 of 197S ), s. 3. ' 198g\Jrub~~tu~~ ~~98th0e) Or21ssa( )Co-operative Socielie, (Amendment) Act, · o , s. a , w. e. f. the Si.. November, 1980. of 1963] tRE CRISS.A CO-OFER.ATIVE SOCIETIES ACT, 1962 (Sec. 32-contd.) Provided that for any sufficient cause to be recorded the Registrar may, in any case, further ex~ tend the aforesaid period, so however that, the total period shall not exceed thirty days from the date of 'Service of the notice.] (2} The committee or the Administrator or Administrators or the society so appointed shall, subject to the control of the Registrar and to such inst ructions as he may from time to time give, have power to exercise all or any of the -functions of the committee or of any officer of the society and . take all such action as may be expedient in the interests of the society and shall be deemed for all purposes of this Act and the rules and bye-laws to be the committee of such society. (J) The committee or Administrators or the society shall, at the expiry of its or their term of office, anange for the constitution of a new committee in accordance with the bye-laws of the society. (4) Before taking any action under sub-section { 1) in respect of a society, the. Registrar shall consult the financiug Bank to which it is indebted and con sider the opinion, if any, received from suc;h Bank. (5) If the Registrar, while making an order under sub-section (1), is of the opinion that any past or present officer of the s:ociety has been party to or responsible for the mismanagement th~reof or has failed to perform any duty lawfully assigned to him, he may, by order .in wdting after giving such officer an o·pportunity to stat.e his objection, dis qualify him from being a member of a committee in respect of the society for a period not exceeding · three years to be specified in the order and every order made under this sub-section shall state . the reasons for which it is made and shall be communi cated to the society and the officer concerned. (6) .-In cases where the Registrar makes an appoint ment under clause (b) or (c) of sub-section(/) he may, by the order made under that ·l:iub-section fix the remuneration to be pa.id to the ·Administrator or the society, as the case may be, and the remunera tion so fix..ed shall b~ paid frcim out of the funds of the: · society whose afi'a.u's are managed by such Administrator or· society. 671 672 raa OirssA Co-oPaRATrve s::,~r;ffrns Acr, 1962 [Or. Act 2 (Sec. 33) 1((7) Notwithstanding anything contained in this section, if, in the opinion of the Registrar, the Committee of any Society is acting in a manner pre judicial to the interests of the Society or its members, or has committed such serious irreguladties or il!eaalities that further continuance of the Committee would be detrimental to the interests of the Society, the Registrar may, at any ti me before or ~ft~ giving opportunity to such C~mm1ttee to state ob1ect1on~ as required under sub-section (1), suspend the Committee and make such arrangements as he thinks proper for the management of the affairs of the Society during the period of suspension of the Committee: Provided that if the Committee so sus pended is re-instated the period of suspension shall count towards its term. (8) Notwithstanding anything contained in this 1cction, if, in the opinion of the Registrar, any member of the Committee of a Society, delegated or entrusted with any of the powers or responsibilities of such Committee, persistently makes default or is negligent in exercise of powers or in discharge nf responsibilities, or commits any act prejudicial to the interests of the Society or its members, the Registrar may, after giving an opportunity to state bis ob jections, if any, by order in· writing stating reasons tberefor, remove him from office.] socurin.g 33. (1) If the Committee of a, society is reconsti .. possoss1on oft t d t I t· f th · ' d records. o\c. u e a a genera mee mg o e society or 1s remove by the Registrar under section 32 or if the society is ordered to be wound up under section 72 and the outgoing members of the Committee refuse to handover charge of the records and property of the society to the new committei::: or the Administrators or the society appointed under section 32 or the liquidator, as the case may be, such Committee, Administrators, society or liquidator, as the case may be, may apply through the Registrar or any person ~mpowered by the Registrar to the Sub divisional Officer having, jurisdiction for securing such records and property. 1. Jnsened by the Orissa Co-operative Socicti~s (Amendment) Act, 1980 (or. Act ID of 1980) s. 2 {b), w. c. f. the 5!h November, 1980. or 1963 J THE ORISSA CO-OPERATIVE SocmTIES ACT, 1962 673 (Sec. 33-A) (2) The Registrar may, if he has reason to believe that any records of any society are likely to be tampered with or s.uppressed or that any pro perty of any society is likely to be removed or mis appropriated, authorise any person to enter and search any p1ace where such records .or. property are kept or are believed to be kept and to seize such records and property and in the event of such person being prevented from making any such entrance, search or seizure, the Registrar may apply to the Subdivisional Offieer having jurisdiction for securing such records and property. (~) On receipt of an. 3:pplic~tion under sub section(/) or (2) , the Subd1v1s1onal Officer may, by a warrant authorise any Po1ice Officer, not below the rank of a --Sub-Inspector, to enter and search any place where the records and property are kept or are believed to be kept and to seize such records and property and the records and property so seized !.hall be handed over to the applicant. Explanation-For the purposes of this section "Subdivisional Officer" means the principal Revenue Officer of the subdivision. 1[33-A. The Registrar may. classify the socie~ Quallfl.catton ties in the State into different classes and ma v- etc. of · em~toyees of (a) fix the .nu m1,er and designation. of the soaetl~ ~mployees to be employed by the different classes of societies; and· (b) make ruies regulating the qualification, remuneration, allowances and other conditions of service of such employees. t. Inserted by lhe O rissa Co- operative Societ its ( Second Amei:Jdment) At, t 970 ( Or. Act 21 of 1970 ), s, a. 674 THE 0RISSA Co-OPERATIVE SOCIBTIF.S AcT, 1962 (Sec. 84) Pirll charge of Society on Certain •nets, CHAPTER V PR.rvlLEUES ·oF SOt;IETIES 34. (1) Notwithstandil).g anything cont.ained in any law for the time being in force, but subject to any claim of the Government in respect of land revenue or any money recoverable as land revenue, any debt or outstanding demand owing to a society by any member or past or deceased member shall be a first charge upon the 1[lands,] crops and other agricultural produce cattle, fodder for cattle, agri cultural or industrial implements or machinery, raw materials fbr manufacture and any finished products manufactured from such raw materials, belonging to such member, past members or forming part of the estate of such deceased member, as ·the case may be. · (2) No person shall transfer ar1.y property which is subject to a charge urider sub-section (J) except with the previous ·permission in writing of the society which holds the charge. (3) .Notwithstanding anything contained in any law for the time being in force, any transfer of property made in contravention of the provisions · of sub-section (2) shall be void. (4) Notwithstanding anything contained in the Provincial Insolvency Act, 1920 or any correspond- s 0£1920 ing law for the time being in force the dues of a · society from a member, in insolvency proceedings against him, shall rank in order of priority next to the dues payable by him to Government or to a local ·authority. · . (5) Without prejudice to the provisions of sub section (4), the charge created under sub-section (J) shall have priority over any claim of the Govern ment in respect of a loan granted under Land Improve- . ment Loans Act, 1883 or the Agricultudsts Loans 19 or 18u. . Act, 1884 or the Bihar and Orissa State Aid to Ind us- 1z of 1884. tries Act, 1923 after the grant of the Joan by the :·t~;lr society · anything contained in sub-section (1) not~ withstanding. 1. Inserted by the Orissa Co-operative Societies (Amendment) Act, 1967 ( or: Act 31 of 19671 s. 2. . of 1963 J THE ORISSA CO·OPER.AnVE SOCIETIES ACT, 1962 675 (Sees. 35-- 35-A) (6) The provisions contained in sections 85 and 90 shall, mutatis mutandis, apply in respect of a mortgage executed in favour of a society. 35. (]) Notwithstanding anything contained DeductiNl in any law for the time being in force a member of !:'ui,s of may execute an agreement in favour of the society !~~lls f~F to the effect that his employer shall be competent m~rnbcn. to deduct from the salary or wages payable- to him by the employer such amount in such period 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 member to the society. (2) On the execution of such an agreement the employer shall, if so required by 1.he society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement ar:id pay the amount so deducted to the society within fourteen days from the date of the deduction. (3) If an employer, other than the State or Central Government or a Local authority, fails to deduct or having deducted fails to pay any amount as required under sub-section (2), the Registrar may, on the application of the society and after giving such emi;foyer a reasonable opportunity of being heard direct him to pay to the society within such period as has been specified in the -agreement exe cuted under sub-section (J) a sum not exceeding the a~ount which he has failed to deduct or ~o pay, as the case may be: Provided that nothing in sub-section (1) shall apply to persons employed in Railways within the meaning of the Constitution and to persons employ ed in mines and oilfields. 1[35-A. Where a· requisition in writing from any Society registered or deemed to be registered in any reciprocating State in respect of a: member of that 1. Inserted by the Orissa OJ·op,!rative Sociellcs (Amendmeat) Act 1976 ( Or. Act 26 of 1976 ), s. 3. ' Deduction of dues or a Sodety of a recipro cating State. 676 THE 0RISSA CO·OPERAT).VE SOCIETIFS ACT, 1962 [Or. Act l Charge an.! ~et-off in respect or ,,bare or in terest of member in the r.apilal of a soc:i:ty. Sbares or in1enist nol Hable to a11achmenr. (Sees. 36-38) Society, who has executed an agreement of the nature described in sub-section (J) of section 35 in favour of that Society and who for the time being is emplo yed in the State of Orissa, is received by his emplo yer, the requisition shall be acted upon as if it had been made by a Society registered under this Act in the same manner as is provided in the said section. Explanation-For the purposes of this section 'reciprocating State ' means any State which the State Government may, by notification declare to be a reciprocating State. ] 36. A society shall in respect of any debt or outstanding demand owing to it, have a charge upon the share or interest in the capital of and on the deposits made by a member, a past member or a deceas·.·d member and on any dividend, rebate. bonus or profits payable to any such member and may set off any sum credited or payable to a member cowards payment of any such debt or outstanding demand: Pro~ided that no financing bank to which a &ociety is affiliated shall have a charge upon any sum invested in the financing bank as reserve fund by the society if the bank is not the sole creditor of the society, or be entitled to set off any such sum credited or payable to the society towards any debt due from such society. 37. Notwithstanding anything contained in any other law for the time being in force but subject to the provisions of section 36 the share or jnterest of a member, a past member or a deceased member in the capital of a society shall not be liable to attach ment or sale under any decree or order of a court in respect of any debt or liability incurred by such member. and an official assignee or a receiver under any law relating to insolvency shall I;l.Ot be entitled to, or have any· claim on, such share or interest. Exemptio°: 38. (1) The Government may, by notification !~:c;:!;1n in the official Gazette, remit in respect of any clas.,;: and duties. of societies (a) the stamp <1uty chargeable under any Jaw for the time being in force in respect of any class of instruments executed by or Jn beha]f of a society or by an officer or member thereof and relating to the businP-S<; cf sud1 . .society, or in respect of of 1963 J THE ·orussA C0·OPER.A.TIVE SOCIETIES Acr. 1962 677 16 of 1!:IOS (Sec. 3S,) any award or order made under this Act, in cases where, but for such remission, the society, officer or member, as the case may be, would be liable to -pay such stamp duty; (b) any fee payable under any Jaw for the time being in force relating to the regi. stration of documents or court fees: Provi deci · that nothing in clause (a) shall apply in respect of bWs of exchange, cheques, promissory notes, bills of lading, letters of crellit, policies of insurance, transfer ·of shares, debentures, proxies and receipts. · (2) The State Government may, by notification exempt any class of societies from taxes on (a) agricultural income, (b) sale or purchase of goods, or . {c)-professions, trades1' callings and employ· ments. 39. Nothing in clauses (b) and (c) of sub-section Exemption (1) -of section 17 of the Indian Registration Act, 1908 from 1 h 11 I. cornpo sory s a app y to- rcgi$ttation ofinstru ( · · rncnls. a) any. mstrument relating to shares in a · so~Iety notwithstanding that the assets of the society consist in whole or in part of immovable property; or (b) any debentures issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in ~.o far as it entitles the holder to the security afforde-d by a registered instrument whereby the society has mortgaged, conveyed or otherwise trans· forred the whole or a part of Hs immo· vable ·property or any jnterest therein to trustees uoon trust for the benent of the holders ~of such debentures; or (c) any endorsement upon or transfer. of any debenture issued by any such society. 678 THE ORTSSA Co-OPERATIVE -~OCIE'flES ACT, 1962 [or.Act 2 Promotion of co-opera• tivo lllOVO• meat, (Ser:s. 40-43) CHAPTER VI STATE-AID- To" SOCIETIES ~O. ·n shatl be the duty of the State Government to encourage and promote the co-operative move• ment in the State and to take such steps in this direction · as may be necessary. Direct PaJt, 41. (1) The State GoverilDlent 1may subscribe acrsliip of . state Gov• directly. to the share capital of a society. ernment in 5Qcietie1. (2) Notwithstanding any agreement to the contrary, the State Government shall not be entitled to a dividend on the shares of any such society at a rate higher - than that at \Vhich such dividend i s-pay able to any other- shareholder of the society. Jndi rcct . 42. The State Government may, provide moneys partnership to an ilpex society for the purchase of shares in of Seate h . . aovemrnent ot er soc1et.Ies. · in s ocj e ties; p. . 1 43. (1) An apex society, which is provided s~~f~r-with moneys by the State Govem.inent under section· ship Fund. 42 shaJl, with such moneys, establish a f un.d to be called the 'Principal State Partnership Fund'. (2) An apex society shall utilise the 'Principal State Partnership Fund' only for the· purposes of (a) directly purchasing shares m other societies; (b) providing . moneys to a society (herein after in this chapter referred to as 'Cen tral Society') to enable that society to purchase shares in other societies (here inafter . in this chapter referred to as 'Primary Societies') ; and (c) making payments to the State ·-Govern-. ment in accordance "Y,"ith the provisions of this -chapter. of 1963] THE OR.ISSA Co-OPERATIVE Soc1ErrEs Ac-r, 1962 679 (Sees. 44-47) 44. (1) A central society which is provided s bsi~an with moneys by au· apex society fr?m -the 'Prfo~ipal ~li~t~o-r State Partnership Fund' shall, with such moneys, establish a fund to be called the 'Subsidiary State Partnership · Fund'. · (2) A central society shall utilise the 'Subsi diary State Partnership Fund' only for the purposes of (a) purchasing shares in primary societfos; and ( n making payments to the ap~x society in accordance with the prov1s1ons of this chapter. 45. No share~ shall be. ~urchased in a socie~y =on.I of from the moneys m the Prmctpal -State Partnership O!lvemmcnt Fund -or .the Subsi~iacy · Stat~ P~ne~h ip Fund ~~18~ except with the previous approval in wntmg of the · State Government. · 46. Where any shares a.re purchased in.a society by- UablIJey to bo Ulll..lted ua (a) the State Government ; or · ~ 01 (b) an apex society or a Central Socie[y from the 'Pdncipal State Partnership Fund' or the 'Subsidiary State Partnership Fund' respectively; the liability in respect of such shares shall, in the event of the society being wound up, be limited to the amount paid in respect-of such shares. . IWll:!l, 47~ An apex society which has pur~hased shares R~trlctioiu in other s·oc ieties from the moneys in the 'Principal~~ ~;:~d. State Partnership Fund1 and a central so~iety which . bas purchased shares in- primary societies from the moneys in. csubsidiary State Partnership Fund, shall be entitled only to ~ucl} dividend on the said shares as is declared by t.he society, concerned and is payable to otaer :shareholders of that ~ociety. · 680 THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962 [Or.Act 2 (Sees. 48-49) Indemnity of apoin1nd Cenlral Socittle1. 48. (J) If a society in which shares are purchased from the 'Principal State Partnership Fund is wound up or dissolved, the .State Government shall not have any claim against the apex society which purchased the shares in respect. of any loss arising from such purchase; hut the State Government shall be entitled to any moneys received by the apex society in liqwda tion proceedings or on dissolution, as the case may be. (2) If a society in which shares are purchased" from the 'Subsidiary State Partnership Fund' is wound up or .is dissolve~, neither the State Gove~ ment nor the apex society shall have any claim against the Central Society ·which purchased the shares in respect of any loss arising from such purchase but the apex society shall be entitled to any moneys received by the Central Society in liquidation proceed ings or in dissolution, a.s the case may b~, and such moneys shall be credited -fo, the 'Principal State Partnership Funds'. =~pi:I 49. (J) All moneys received by an apex society 11.lld in respect of shares of other societies purchased dJtrfdend,etc. from the. moneys in the- 'Principal State Partnership Fund' on redemption of such shares or by way of dividends or otherwise, shall be credited to that fund. · (2) All moneys received by a Central Society in respect of shares of · primary societies purchased froni the moneys in the 'Subsidiary State Partnership F~1=1-d' .on redemption of such shares or-by way of d1v1dends or otherwise, shall m the first instance be credited to that fund and then transferred to the apex society which shall credifthem to the 'Principal State Partnership Fund'. · (3) All -moneys and dividends referred to in sub-section (1) and sub-section (2) shall be paid to the State Government from out . of the 'Principal State.Partnership Fund'. (4) Save as .provided in sub-section (3), the State Government shall not be entitled to any other return on th~ mo1:1eys pro1-Tided by it to an- apex society. under section 42. · of 1963] THE 0RISSA Co-oPERATiVB Socmrms A.cT, 1962 681 (Sees. 50-53) 50. (D If an apex society which has established D~o~ of a 'Principal State Partnership Fund' is wound up =c1:A. or dissolved, all moneys to the. credit of or. payable nerhip~d, to, that fund shall be paid to the Stat~ Government !fdfuiu StateP~ nership Fund, on wir:idiog UP (2) If a Central Society which 'Ii.as established a ~! !°~a1 'Subsidiary State Partnership Fund' is wound up society. or dissolved, all moneys to the credit of or, payable to, that fund sha1I be paid and credited to the 'Principal State Partnership Fund' from which it received moneys under clause (b) of sub-section (2) of section 43. 51. Any amount to the credit of a 'Principal State PartnershiP'. Fund' or a . Subsidiary State Partnership Fund/ shall not be deemed to form part of the assets of the apex society o.r the Central Society, as . the case may be. Principal 5ta te Pa rt 11 ~nhl p FUnd and Sub,lliio. ry Ststl::I Pari nenhlP Fund IIOt to fonn part or IIMCtll h "" . . . f thi Asre1emenl 52. Subject to t e .LOregomg prov1s10ns o s b1 the siato Chapter- Govcrimt.nt iu:id 3.])U. 5DCietiel, (a) the State Government may enter into an agreement with an apex society setting out the terms and conditions on which it sh{t.11 provide moneys to ·the apex society for.the purpose specified in section· 43; (b) an apex society may, with the previous approval of the- State Government, enter into an agreement with a Central Society, setting out the terms and conditions on which it shall provide moneys to that society from the 'Principal State Partner ship Fund' fot the purpose specified iri cluause (b) of sub-section (2) of section 43. . 53. Notwithstanding anything contained in any Other forms law for the time being in force, the State Government of St9:te:aid may-· . to soc1etlea, 682 THE OrussA Co-OPERATIVE SOCIETIES ACT, 1962 r Or. Act (Sees. 54-56) (a) give loan or make advances t o societies; (b) guarantee the t epayment of principal . and payment of interest on debentures issued by a society ; (c) guarantee the repayment of share capital of a. society and dividends thereon at such rates as may be specified by the State Governemnt ; · . (d) guarantee the repayment of principal and payment of interest-on loans and advances to and deposits with a co-operative .society; and · (e) give financial assistance in any other form, including subsidies, t.o any society. ~ 0 YilJ: ot . 54. The. provisions of sections 42 to 52 of this to 1 0 ~ Chapter shall have effect notwithstanding anything olh.cr 1aw1, inconsistent . therewith contained in any other law, for the time being in. force. · CHAPTER VII PROPERTIES AND FUNDS OF SocmTIES flund• 1101 to 55. (l) ·No part of the funds other than the net bi dlvldd.. profits of a society shall be paid by way of bonus or dividend or otherwise distributed among its members: Provided that a member may be paid remunera . tion on such scale as may be laid down by the bye laws· for any services rendered by him to the society. . OiBpo.sal ot n~I profits and consti· tutioD of Co-operativa Education Fund.' (2) Nothing in sub-section (J) shaffbe construed so as to debar any payment from being ma~e ou t of such fund to a member as wages or as pnce of the produce of such member supplied to the society . 56. (J) A society shall, in any year out of its net profits «Jf 1'961] THE ORISSA Co-OPBt{ATIVB SoCf.BTIES Act, 11}62 683 6 of 1890 (Sec. 56-contd.) · (a) transfer an amount not less than ten per cent in the case of a Co-operative farming society and not less than twenty-five per cent in any other case, of the profits to the reserve fund ; and (b) credit such portion of profits, as may be prescribed, to the Co-operative Education Fund constituted under sub-section (3). (2) 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 capital at a rate not ex ceeding ru ;:ie per cent of such share capital; (b) payment of bonus to members on the amount or volume of business done by them with the society, to the extent and in the manner specified in the bye-laws; (c) constitution of or contributions to, such special fund as may be specified in the bye--laws; (d) donations of amounts not exceeding ten per cent of the net profits for any cha .. ritable purpose as defined in section 2 of the Charitable Endowments Act, 1890 j (e) payment of bonus to employees of the society; to the extent and in the manner specified in the bye-laws ; (/) payment of bonus to Government servants who are sent on deputation to the society or are engaged whole-time in connection with the affairs of the society ; and (g) payment of honorarium to members of the Committee for rendering specific services provided that the aggregate of such honorarium paid iuring any year does not exceed an amount equal to ten percentum of the net profits of that year. 684 tm ORlSSA Co-OPERATIVE SocmTIES AcT, 1962 ( Or. Act 2 (Sees. 57-59) (3) There shall be constituted a Co-operative Educatid'n Fund which shall vest in the State Co operative Union and shall be administered. by the said U nfon in the prescribed manner ; and all contribu tions made by Government or by any institution or society to the Fund shall, in addition to the amounts specified in cluase (b) of sub-section (J), · be credited to that Fund. Inva:itments 57. A society may, subject to such conditions orran&i. or limitations, if any, as may be prescribed, invest .or depqsit its funds which are not utilised in its business operations R«triction! on barrow• iDga. Restriction on lo3Iu. (a) in Government' Savings Bank ; (b) in its Financing Bank; 'cc) in any of the securities specified in sectio.Q. 20 of the Indian Trusts Act, 1882 ; 2 or 1892 (d) with the general or special orders of the Registrar and subject to such conditions as he may impose (i) in the shares, debentures or securities · of or · as deposits with any other society; or (ii) any other bank approved by the Registrar in that behalf; or (e) in any other manner as may be prescribed. 58. (1) A society shall receive deposits and loans only to such extent and under such conditions as may be prescribed or as may be specified in the bye-laws • . (2) Without prejudice to the provisions of sub sech on (1 ), a co-operative farming society may re,')e1ve loans on the security of lands pooled together for pUiposes of the society. 59. (I) Asociety shall not advance alaonto any person ?ther th~n a member except witb. the general or speeial sanction of the Registrar. of 1963] 'FHE 0RISSA Co-OPERATIVE SOCIETIES ACT, 1961, 685 (Sees. 60-62) (2) Notwithstanding anything contained in sub· section (/),a society may advance a loan to a depositor on the security of his deposit. 60. Save as is provided in sections 58 and 59, the transactions of a society with persons other than members shall be subject to such restrictions, if any, as may be prescribed. 61. (J) A society may establish a contributory provident fund for the benefit of its employees to which shall be credited aH contributions macte by the employees and the society in accordance with the bye-laws of the society. (2) A contributory provident fund established by a society under sub-section (1) (a) shall not be used in the business of the society; (b) shall not form part of the a"ssets of the society ; and (c) shall not be liable to attachment or be subject to any other process of any court or other authority. CHAPTER VIII · AUDIT, INQUIRY, INSPECTION AND SURCHARGE Restrictions on other transactions vithnon Illerobe,s. Provident Fnnd. 62. (1) The Registrar shall audit, or cause to Audit be audited by an Auditor duly authorised by him in ti1is behalf, the accounts of every society once at 1cast in every year and by such date as may be prescribed. (2) The audit under sub-section (1) shall be conducted according to the rules and shall include (a) a verification of cash balances and securities; (b) a verification of the balances at the credit of the depositors and creditors and of the amounts due from the debtors of the society ; \ 686 · Tue OR1ssA Co-oPERATlVE socIETIES AcT, 1962 [ Or. Act 2 (Sec. 62-contd.) (c) an examination of overdue debts, if any ; (d) a valuation of the assets and liabilities of the society ; (e) an examination of the transaction, includ ing the monetary transactions of the society within such limits as may be prescribed ; (!) an examination of the statement of. accounts, including the statement of receipts and charges, the balance-sheet, the profits and loss account and the statement of net profits available for dis~ibution in accordance with this Act and the rules for the preceding year, to be prepared by the Committee in such form as may be directed by the Registrar ; and (g) any other matter that may be prescribed or directed by the Registrar. · (3) The statements .of accounts including the balance-sheet, the statement of profit 'and loss and the statement of net profits thus audited together ·with the modifications, if any, made therein by the Registrar and certified by him shall be final and binding on the society. (4)- (a) The Registrar· or the AuditoT shall at all times have access··\o all the books, acc011nts, documents, papers, securities, cash and other properties belonging to or in the custody of the society and sha1J, in so far a~ is necessary for carrying out any of the purposes of thi s Act, have power to summon and enforce the attendance of any person and to examine him on oath or affirmation and to compel the production of any books, accounts, documents, securities, cash and other properties., at any p1a:ce at the headquarters of the society or 2.ny branch thereof and to issue commission for the examination of witnesses 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 5 otl90B Procedure, 1908. of 1963] THE OrussA Co-OPERATIVE SOCIETIES AcT, 1962 687 (Sees. 63-64)· (b) The Registrar or -the Auditor may require any person present before him ro. fmnish au.y informa tion or to produce any document in his. possession or power. (c) The Registrar or the Auditor shall have power to take or to author ise the taking of. such copies of the ci.ocument or of any entries therein as may be considered necessary. Copies so taken shaJl, when certified in such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the vriginal docu ment or the . entries therein. (5) Every person who is, or has at any tiine been, an officer or employee of the society and every member ana past member of the society shall furnish such information in regard t-o the transactions and working of the society as the Registrar or the Auditor -may require. · 63. t)) If the result of the audit held. unde1 se:,ction 62 discloses any defects in the working -of a society, the Registrar may bring such defects to the notice of the society, and if the society is affiliated to another society also to the notice of such other society. (2) The Registrar may make an order directing the society or its officers to take such action as may be specified in the order within .the time mentioned · therein to remedy the defects ·disclosed in the audit. Communica tion of defects in audit to aocieties. 64. (/) This-Registrar, may of his own motion, ~~r0 ~ 1 or on the application of a ·creditor of a society, inspect society, or direct any person authorised by him by order iI1' writing in this behalf, to inspect the -books of the society: Provided that no such inspection shall be inade on the application of a creditor unless the applicant (a) satisfies the Registrar, that the debt is subsisting and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and (b) deposits. with the Registrar, such sum as security for the costs of the proposed inspection as the Registrar may require. 688· THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962 [ Or. Act., (Sec. 65) Enquiry by Re.:isrr.i,. (2) The Registrar shall communicate the result of any such inspection (a) where the inspection is made of his own motion, to the society ; and fh) where the inspection is made on the appli cation of a creditor, to the creditor and the society. (3) Inspection of books may also be made by (a) a financing .Bank in respect of any society to which it has made any advance ; (b) an apex society in respect of any central society to which it has provided moneys or any primary society in which such central society owns shares· ; and (c) a central society in respect of any primary society in which it OWflS shares, and {he results of such inspection, if any, shaU, as soon as may be, be reported to the society whose books are so inspected and to the Registrar for such action as he may deem fit and proper. 65. (1) The Registrar may, at any time, of his · own motion, by himself or by a person authorised by him by order in writing, hold an enquiry into the constitution, working and financial condition of a society. (,?) A!l inquiry of the nature referred to in sub~ section (.t) shall be held on the application of (a) a society to which the society concerned is affiliated ; (b) a majority of the members of the Committee of the society ; or (c) not less than one-third of. the total number of members of the society. of 1963 J l THE 0RJSS-A CO-OPERATIVE SOCIETIES ACT, i962 '\. ..... (Sec. 65-contd.) . (3) The Registrar,. or the person authorised by him. un~er· sub-section (1) shall, for the purposes of an mqwry under sub-section (J) or sub-section (2) have the following powers, namely : (a) he shall, at all times, have free access to the books, accounts, documents, secu rities, cash and other properties belonging to or in the custody of the society and may summon any person· in possession or resp.~msible for the custody of any ·such books, accounts, documents, ~ecurities, · cash or other properties, to produce the same at any place at the headquarters of the society or any branch thereof ; (b) he may summon any person who, he has · reason to believe has knowledge ·of any of the affairs of the soci ety - to appear before him at\?-ny place at the headquarters of the society or any branch thereof and may examine such person on oath ;· and (c) (i) he may, notwithstanding any rule or bye-law· specifying the peri6d of notice for a general meeting of the society, require the officers of the society to call a general meeting at such time and place al me headquarters of the society or any branch thereof and to determine such matters as may be directed by him, and where the officers of the society refuse or fail to call such a meeting he shall have power to call it himself : Prnvided that no such meeting shall be called without giving notice of at least five days prior to the date of the meeting ; Ui) a meeting called under sub~clause (i) shall for all purposes be deemed to be a general meeting ca1Ied under the bye-laws of the society and its proceedings shall be regu lated by such bye-laws except that no quorum shall be necessary for such meeting ; 689 690 THE ORlSSA Co-OPERATIVE SocIETIES ACT, 1962 [ Or Act l (Sec. 66) (d) ,if he has reasons to believe that the conti nuance of any officer of the society in office will be detrimental to the interests of the society, he may, by order assigning reasons therefor, suspend such officer or member from holding the office during the pendency of the enquiry : Provided that in no case the suspension as afore· said sha1l extend over a period of more than six months : Provided. further that no order of suspension shall be passed· by any officer be1ow such rank as may . be prescribed unless he happens to be the Registrar. (4) When an inquiry is made under this section, the Registrar shall communicate the result 9f the · inquiry to the society and also to such other societies, if any, to which it may be a,ffiliated. . ( 5) W~er1:.: t~e Registrar · or any person autho· nsed b}'. him 1s, m the co~se of an enquiry under sub·set:tlon (J) ·or sUb·sectlon (2), satisfied that the books a~d records of a society 3:re likely to be tarn. pered with or the funds and property of the society . are likely to be misappropriated or. misapplied, he may issue an order directing a person to seize and take possession of such books, records, "funds or property and the officer or officers of -the society responsible for the custody of such books, records, funds or property shall give delivery thereof to the persoi1 so dire.cted and in the event of such person being prevented from making the seizure t:he provi· sions of sub·sections (2) and (3) of section 33 shall, mutatis mutandis, apply. c.o,11 or ia~ 66. Where an inquiry is held under section 65 qwry. or an inspection is i:nade under ~ection 64 on the application of a creditor, the Registrar may appor· tion the costs, or such par:t of the ~sts as he 7?ay deem fit, betweeq. the society Jo which the society concerned is aftiliated, the s~c1ety, t~e· me~ber or creditor d·emanding an enqu1ty or ms~ectlon, and the officers or former officers of the society : ! 19631 THE OrussA Co-OPERATIVE SocIEm:s ACT 1962 691 ' (Sec. 67) Provided that v . (a) no -order of apportionment of the costs shall be made under this section unless the society or the person sought to be made liable to pay the costs thereunder has had a reasonable opportunity of being heard'~ (b) the Registrar shall state in writing the grounds on which the costs are appor· tioned. 67 ~ ( /) If in t~e c9urse of an au4it, i~q~iry and sarchnrae inspection or the wind1~g up of a society, 1t 1s found that any person, who 1s or was entrusted with ·the organisation or ~anagement of such socie~y or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, tl:e rules or the bye-laws 9r h~s caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fra~dulently retaine~ any money or other property . belonging to such society, the Registrar may, of his own motion or on the ~pplication of the Committee liquidator or any cred1tor, hold an inquiry himself or direct any person authorised by him, by an order in wr.iting in this behalf, to inquire into the conduct of such person : · Provided that no such inquiry shall be held after the expiry of six years from the date of any act or omission referred to in this sub-section. (2) Where an inquiry is held under sub-section (J), the Registrar may, after giving the person concerned an opl-'ortunity of being heard, make an order requi· ring him to repay or restore the money or property or any part thereof, with iaterest at such rate, or to pay contribution and costs or compensation to such extent, as the Registrar may consider just ,md equi tab1e and all such orders shall have effect without prejudice to any other action that may be lawfully taken agaiust him. 692 THE OR1ssA CO-OPERATIVE SoCrETIES AcT, 1962 [ Or. Act 2 (Sec. 68) Disputes which may be referred to nrbitra• tion. CHAPTER IX SETTLEMENT OF DISPUTES 68. (/) Notwithstanding anything .:ontained in any law for the time being in force, any-dispute touch ing the constitution, management or the business of a society) other than a dispute regarding disci~ plinary action taken by a society or its committee against a paid servant of the society, shaH be referred to the Registrar if the parties thereto are among the following, namely : (a) the society, its committee, any past 'corn~ mittec, any past or present officer, any past or present agent, any past 01:" present servant or the norainee. heir or legal representative of any deceased officer, deceased agent or dcce;lsed servant of the society or the liquidator of the society : or (b) a member, past memh0.r or a person claiming through a member, past member or a deceased member of the society or of a society which is a member of the society ; or (c) a surety of a member, past member or a decease!i member whether such surety i~ or is not a member of the society ; or (d) any other society or the liquidator of such society. Expfa11ation I-A claim in respect of any surr1: payable to or by a society by or to a person or society or a liquidator mentioned in clauses (a) to (d) shall be a dispute touching the business of the society within the meaning of this section even in case such claim is admitted and the only point in issue is the ability tG pay and the manner of enforcement of payment. of 1963] -THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962 693 . (Seq. 68~contd.) Explanation II-A claim by a Financing Bank against· a member of a ·society which is a member of the Financing Bank and indebted to it for the reco very of dues payable by such member to the society shall be a dispute touching the business of the Finan cing Bank within the meaning of this section. E~planation III-The . question whether - a person. is or was a member of a society or not shall be a dispute within the m eaning of 1his ~ection. · Explanation IV-Any dispute a.rising in connec tion ·with the election of any officer of the society shall be a disp1:1-te within the m:aning of thi~ 8ection. Explanation V-A claim- by a surety for any sum or payment. due to him fr~m the principal borrower in respect of a loan advanced by a societ~ shall be a dispute within the meaning of thi s sectiqn. . 1t Explanation· VI-The question whether person or anr one of his near relati:7es is carrying on similar busmess as 1s done by the society or whether such· near relative has common economic inti)rest with such per~on shall be a dispute \yithin the meaning of this section.] - . . . (2) Any person, society, Financing Bank or · liquidator referring a dispute to the Registrar under sub-sectiou (1) shall deposit in advance such fees ·as may be prescribed·. . ~ . . (3) No dispute referred to in this,section shall be ntertained in any civil court .and the .decision of the Registrar in this respect shall, subject to the provisjons of section 70, .be final. · t. Jnscrtc, ! by !he Or;ssa Co-opcr:uivc Soc;ct'c~ ( Sccor:d A , ,, . ,\cl 1970(0,. Act2I ofl970), 5, 9. , · u.cn,n.cnq 694 THE· O~!SS.> Co-OPERATIVE SOCIETIES ACT, 1962 [Or. Act 2 Reference of ll.isputes tr, a.tbitrauun. (SC'tS. 69-70) (4) If any question arisss whether · a dispute referred to the Registrar under this section is a dispute touching the constitution,. management qr the busi ness .of a society, the decision thereon of the Regi-. strar shall be final and shall not be called in· questio n in any court (5) Nothing in this section shall, where the dispute relates · to the recovery of the dues of any society from. any of its members, be construed to debar any Financing B ank of such society from refer ring s11ch dispute to the . Registrar. · 69. (/) When the dispute is between a. society. or its committee and any past committee, any p.1st officer, past agent or past servant ·or the nominee; heir or legal. representative of any deceased officer, deceased agent or deceased servant of the society and .when the dispute ·relates to any act or omission on the part of either party to the dispute the period of Umitation sh·au be six year,s from the ·date on which such act or omissiol;l, with respect to which th~. dispute arose, took place. . (2) When the dispute relate; to any sum including interest thereon, if a~y, due to a EIJ<'-iety by a member thereof it may be referred within the same period after the death or cessation of membership of such members as ·would otherwise have· be.en allowed from tlie tim~ prescribed · therefor. , 70. ·(/)" The Registrar, may, on receipt of a refer· ence of a dispute. under section 68- ' . (a) decide the dispute .himself, or (b) transfer ·it for disposal to ·any person who has bee!) i nvested by the State Govern-· ment with powers in that behalf, or (c) r.efer it for disposal to one arbitr:ator appointed by the Registrar. of 1963 ] TH1: OmssA Co-OPERATIVE- SocrErrns ACT, 19 6 2 (Sees. 71-7 2) · (2) Th,;;: Registrar may withdraw any reference tramrerred under clause (b) of sub-section (J) or referred- u1;<ler cfause (c) of the said sub-section and decide it himself or transfer the same to another person so Jnvested or to another arbitrator so appointed. (3) The Registrar or any other .peson to whom a dispute is referred for decision under this section may~ pending the decision of the dispute, make-such interlocutory orders as he may deem necessary in t!te interests of justice. . 71. Where in the course of settlement of a dispute under section 70 or any proceedings under this Act, or in any suit, a loan taken from or a mortgage exe cuted in favour of a society, whether before or after the commencement of this Act, is caJled in question on the ground that jt is taken or executed· by the manager. of 2. joint Hindu family for a purpose not · binding on the members thereof, whether major or minor, th.: burden of proof shall, notwithstanding anytl,ing contained in any -other law for the time 1::i~'iag in force, rest upon the party which calls such lm, 11 or mortgage in ques:ion. · . CHAPTER X WrN, · ING uP AND mssoLUTION OF SocIETIES · 72, (1) If tlic R::.gistrar, after· an inquiry has been held under section 65 or an inspection has been made under section 64 or upon perusal of the audit report or on receipt of an application made by. not less than three-fourths of the members of a society,· is of opinion that the s~ciet~ ou ght to be wound up, he may issue an order d1~ectmg 1t to be wound up. 695 Loan taken or mortgage: executed by members of j-c,int Hindt• filmilics, Windi0g up of societios. 696 THE ORISSA CO-OPERATIVE SOCIETIES Acr, 1962 -[ Or. Al .. 2 (Sees. 73·74) · (2) The Registrar may of his own matron, make an order directing the winding up of a society-· (a) where it is a condition of the registration of the society that the s~ciety shall-consist of at least ten. members and the number of- members has been reduced to less than ten ; or . (h) where the societ-y has not commenced working within a period of eighteen months from the date of its registration or has ceased to work. · · O') The Registrar may cancel an order for the winding up of a society, at any time, in any case where, · in his opinion the society should continue to exist. LiQwidator '73. (1) Where the Regrstrar has made an order under section 72 for the· wfading up of a society, he mhy appdnt a ,liquidator for the purpose and fix his remuneration, which shall be paid from out of the. funds of the society and may also remove any liquidato r and ·r1ppoint .another In his place. . · (2)- A liqu1dator shall, on appointment, take into his custoct-,, .or tinder his control all the books and records of the society and aII the property, effects ;md -actionable claims to which the society is or ~~ppe:i.rs to be entitled and shall take such steps as he i-,1a:,'. dee.n. n,~cessary or expedient to prevent loss ·or dctedoration of or damage to, such property, effects and daims. · · {3) Where an order of winding up of a society is cancelled by the Registrar under ~uh-section (3).of section 72 or is set :aside in appeal, tqe property, effects and.actionable claims of the society shall revest in the society. · · Prior(ty C?f . 74. Notwithstanding anything contain.ed in the contnbution . . . . . 1· ·I A 1920 th d bt d t nsscs'ied by Prov1 :1.pai nso vcncy. et, , e e s ue o a a.liquidator. socjet:v rnlder orders of being- wound up and the contribution as sessed by the liquidator shall rank·· next to debts due to the Government or to any local authority in order of priority in insolvency proceedings. , ' r ar i920 ·or 1963] THE ORISSA Co-OPERATIVE socmrrns ACT. 1962 697 (Sec. 75) 75. (1) Subject t9 any rules made in this behalf1 P ow on or the whole of the assets of a society in respect of which liquidaior, an order for winding µp. has been m ade, shall vest in the liquidator appointed under section 73 from the date on which the order takes effect and the liqui dator shall have power to realise such assets by sale or. otherwise. (2) Such liquidator shall als9 have po,yer, subject · to the control of the Registrar-. . · . . (a) to institute and defend suits and other legal . . proceecfings on hehalf of the society, by (b) the name of his office ; · . . to determine from time to time the contd· bution (includi'ng debts due) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or · legal representatives of deceased members or by any officer or former ·officers,· to the assets of the society ; (c) to ·investigate all claims against the society · ap.d sttbjec.t to the provisions of this Act, to decide questions of priority arising. between claimants ; ' . . (d) to pay claims against the ~ociety including interest ·up to the date of winding up according to their respective priorities, · if any •. in full or rateahly, as the assets of the society may permit, the surplus, if any,- remaining after payment of the claims being applied in payment of interest from the date of such order, of winding up at a rate fixed by him but not exceeding the contract rate' in any case ~ (e) to determine by what persons and in what proportions the costs of the liqtridation are to be borne ; · (}) to determine whether any person 1s · member. ·. past member or nominee a deceased member; 698 THB ORrsSA Co-oPERAT1VE SOCIETIES Acr, 1962 [Ort Act, .I (Sec. 76) Di!polll of aa.rplus \UOlS, (g) to give -such direction 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 ; (h) to carry on the business of the society so far · as may be necessary for the beneficial winding up o( the ·same ;. ( i) to make any compromise or arrangement with creditors or persons claiming to b~ creditors or having or . alleging to havo any cla'im present or future, whereby the society may be rendered -liable ; and (j) to comp~ornise ·all caHs or Jiabilities to calls -and debts and - liabilities capablo of resulting in debts, and all claims present . or future, certain or contingent subsisting or supposed to subsist between the society and a contributory or alleged contributory or other· debtor or person apprehending Jiability to the society- and all questions in any Way relating to or affecting the assets or the winding up of the society on such terms as· may be agreed and take in security for the discharge· of any such . caI! 1 liability, debt or cJaim and give a complete discharge in respect thereof. (3) When the affairs of a society have been wound up, the liquidator shall make a report to tbe Registrar and deposit the records of the Society in such ·place as the Registrar may direct and shall make over the snrplus assets of the society to the Registrar. 76. The surplus assets of a society, made over by the liquidator to the. Registrar shall not be· divided among its members, but shall .be applied by the Registrar, in whole or in part, to all or any of the· following objects, namely :-' · (a) any. object ·specified in .that behalf in the bye-Jaws of the society ; (b) an object of local public utility ; (c) a charitable purpose as defined .in section 2 of the Charitable Endowments Act, : 1890; 6ofJ890 of 19~] THE ORJSSA CO-OPERATIVE SOCIE~IF.S ACT, .1962 699 (Sees. 77-78) (d) any union of co-operative' societies, the object of which is the development of the co-operative movement ; and (e) reserve fund of a new society, if and when established wHh the same object aud the · . same area oLoperation as of the s0ciety wound up. . · · 77. Where in respect of a society which has · been · ordered to be wound up under section 72,.no liquidator has been appointed under section 73, after two months from the date of such order, or if an appeal has been filed from the date of confirmation of the order in appeal, "or where the affairs of a society in respect of which a liquidator has been appointed- under section 73, have been wound up, the R,egistrar shall make an order cancelling the registration of the society and the society shall be deemed to be dissolved and shall · cease to exist as a corporate body·from the date of such order of cancellation. CHAPTERXI 1[LAND DEVELOPMENT BANK] Cance:Jation o f rogistra~ lion of 11 1ociety. 78. {l~ln this Chapter- Definition! (a) 'Board' means the Board df Director of the 3[State Lancl vevelopment Banlc] ; · (b) 1[ 'I;..and · Development Ba,nk'] rne~ns a Co-operative 1[Land Development BanlcJ registered· or deemed ·to be registered under this Act and admitted as a member of the 3 [ State Land Development Bank ] ; · (c) 3['State Land Development Bank'l means the Orissa. State Co-operative 1[Land Development Bank] Limited ; and (d) 'Trustee' means the Trustee referred to in · section 79. , ' 1. Substituted by the Orissn Co-operative Societies- (Amendment) Act, l 970 ( Or. Act :'5 of I 970 ), s. 16 for "Land Mon gage Baak". · 2. Rc-numbcred"by Ibid.,. a. 9. 3, Subitituled by Ibid., s. 16 for "State Land Mortgage Bnnk". 700 THE ORlSSA Co-OPERATIVE SOCIET IES AcT, 1962 [ Or. Act 2 (Seq. 79~81) Appointment or Trustee and · bis powers arld ruoc1ion~ Tnntee 10 be a corpo ra 1ion lOle. . 1[(2) Land development qanks may be established for advancing loans, other than short-term loans, for such purposes connected with Land improvement, productivity of land and agriculturnl development as may be specified in the .bye-Jaws of the respective land development banks.} · 79. (1) The Registrar, or where the State' Govern t nent appoint any other person in. this behalf, such person shall be the Trustee for the pµrpose, of securing the fulfilment of the obligation of . the 2[State Land Develcpment Bank} to the holders of debenture issued by the Boan.I.. (2) The powers and functions of the Trustee shall be governed by the provisions .of this Act and by the instrument of trust executed between· the Bank and the Trustee as modified from time to time by mutual agreement between the Bank and tl?,e Trustee. · . 80. The Trustee shall be a corporation sole by"the name of the Trustee for the debentures and as such shall have perpetua~ s-qccession · and a common seal and in his corporate ~ame shalJ sue and be sued. fouc of 81. (1) With the previous sanction of the Trustee, i;t~t~~:d .. t~e Board may from time to time issue debentu'res of one or more denominations for such periods as 1t may. , deem expedient, on the security of the mortgages and assets held by pr transferred or deemed under the provisions of section 87 to ·have been transferred by the] [Land Development Bank] to the i[State Land Development Bank! and other properties of such Bank. (2) Such debentures may contain a term fixing a period not exceeding ten years from the date of issue during whlch they sliaJI· be irredeemable, or reserving to the Board the right co c~ll in: at any time of the I. lnscr1ed by the Orissa Co-operative soc· .ties ( Ame.D.drnenl) Act, 1970 ( Or. ACt S of 1970), s. 9, 2. Substituted by ibirf., s. 16 for "State Land Mortg~;c ~k". Substituted. by ibfd., s 16 for "Land Mortgage 13,nn\". , ·of 1963 ] THE DR!SSA Co-OPERATIVE SOCIETIES ACT, 196 2 701 (Sec. 82) .. ) debentures in advance of the date fixed for rcdemp· tion, after giving to the debenture-holder concerned µot less than .three months notice in writing. (3) The· total amount due on the ·debentures issued by the Board and outstanding at any time shall not exceed the aggregate of (a)the total amount due on the mortgages heid by the 1 {State Laud Development Bunkj or transferred or deemed under the pro visions of section 87 to have been trans ferred to it b·y the 1{Land Devclopmerit BankJ and the value of the assets in respect of the land mortgage business held by. the 1[.State Land Development Bank) and subsisting. at such time ; and (b)the amount·s paid under the mortgages afore said and remaining in the hands of the Board or of the Trustee at that tim,e. (4) Notwithstanding anything contained in this Chapter- · (a) the Board may, with the previous sanction of the· Trustee, issued debentures on the o;;ecurity of mortgages executed in favour of t11e '[State Land Development BankJ; and (b) all mortgages executed in favour of the sajd Bank prior to tht;! coming. into force of this Act, .shall be deemed to be mortgages executed under· clause (a). (5) The provisions contained in this Chapter, which are applicable to mortgages executed in favour of a land mortgage bank, shall, mutatis mutandis, apply to mortgages executed or deemed to be executed in favom of the 1 (State Land Development Bank] under sub-section (4). 82. The holders of the debentures shall have a :floating charge dn (a) all such mortgages and assets as are r~ferred to in clause (a) of sub-section (3) of section 81 ; . L St1bsti1T.1t::c b;-' tl:i: Oris~a Co-operative Societies ( Amcni.lment) Act 1970 ( c~. Act 5· oft •)iO ), s. l 6 for "State l~nd Mor1gage Bank" and for~. Laud Morts:itc Baal\ "r.::spcc1ivcly. · Charge of debenture holders on certain Properlios. 702 Tm:i OR1Si3A Co OPGRATIVE So8JET!B3 Acr, 19b2 [Or Act 2 (Sec. 8~) C) (b) thC; amount paid under such mortgage and remaining in the hands c:>f the Board or of the Trustee ; and (c) the other properties of ·the 1[ State Land. Development Bank]. Guarantee by 83. (/) The principal of, and interest on~ the State Govern- · d d · 81 h JI · · t f mentor prin- debentnres issue un er sectwn s a m respec o cipal aod such maximum amount as may be fixed by the State in terest on , d b · h d · · ·t · debentures, Uovernmcnt an SU JeCt to SUC Con rtIOn as' 1 may think fit to impose, carry the guarantee of the State Government. (2) The State Government may, subject to any Jaw made by the Legislature increase the maxir.rnm amount of any guar:mtee given under sub-section (J). (3) The State Government may, after consulting the Board and the Trustee (a) by notification in the Offi cial Gazette ; and (b) by notice of not less than fourteen days in such of the principal newspapers in the Sts1te and of other States as the State Government may select in trus behalf ; discontinue any guarantee given by it \or restrict the maximum amount thereof or modify the condition, subject to w;hich it is given, with effect from a specified . date, not being earlier than six months .fwm the date. of the publication of the notification in the Official Gazette : Provided that the withdrawal, restriction or modification of any guarantee under this sub.section shall not in any way affect the guarantee carried by any debentures issued prior to the date on which such withdrawal, restriction or modification takes effect. (4) Every notification and notice referred to in sub·section (3) shall, where the maximum amount of the guarantee is to be restricted or the conditions subject to which the guarantee is given are to be modified, set forth precisely the scope and effect of the restriction or ~edification, as the case may be. I. SubsCitu ted by the Orissa Co-operative Societies ( Aint~<1ment ) Act, 1970 (Or.Act 5 Of 1970 ), s. 16 for" State Land Mort!lage Bank. · oi 1963] · l'HE ORISSA Co-OPERATIVE SocIETIES ACT, 1962 703 (Sees. 83-A-83-B) 1 [~A. Any land ~evelopment bank may grant G,aot or loan to 1ts members against the creation of a charge loan by land on or mortgage of land free of encumbrances.] d~=-prnent 2 [ 3[83-B. (/) Every appJicant for a loan to a Jand development bank shall make a declaration in the form prescribed by the land development bank before an office r authorised by the ·Registrar in this behalf on solemn affirmation that the land- sought to b~ mortgaged 1s free from aIJ encumbrances and that t~e :rrortgagor is in possession thereof and has the right to .create the mortgage. (2) The declaration made under sub-section (J) shall be conciu,;ive, final and-~inding. (3) If at any time a declaration made under sub:. section (1) is fouod to be false or defective, the land devdopment"bank shall, subject ·to the p:-ovisions of section 85, have a first charge on all other movable . a·nd immovable properties of the applicant, and all such properties shall be deemed to have been incl.uded in the mortagage deed and the development bank may proceed against all such propertie~ of the mort gagor under section 91. · Explanation-A charge created under section 34 shall not constitute an encumbrance for the purposes of this section and section 83-A. (4) Only those applic~tions which ~nf~rm to the requirements of sub- section (1) shall, m accr~da nce with the rules made in that behalf, be taken mto consideratioo by the bank.} I. Snbslilule::I ·by th-: Orissa Co-operat· Soci ·.\c1, J 978 (Or. Act I of l 9n), 5 J. ive eties (Amcnd1Dent) '.!. :-i·.1bsti1utcd by Che Orissa Co-operative Societies ( \c\. l 'J70 (Or. Act J of J 976), s. 10. Amendment) ; Substilutcd by the Ori«a C · \ 9 0 ~ o-aperativc Societies (Am endment) · ci. l 78 { r. Act I or J 979), s. 4. Applicant Cot Joan to make .i d,dara1ion. 704 T1-m ORJSSA Co-OPERATIVE SocIETIES ACT, 1962 [Or. Act 2 (Sees. 83-C-83-D) Order 83-C.· A written order by the· land development s:ra.ntin~ loan bank or any committee or other person authorised by · cone\um•e of I · A J b 1 f b k f certain t us et or tie ye-mws o the an to grant Joans or inattm. any of the purposes specified in the bye-laws of the concerned bank, granting, either before or after the commencement of tru5 Act, a 10111 for the benefit of the land or for any productive prupose specified therein shall, for the purposes of this Act, be conclusive of the following nmtters, namely: Clurge how ererncd and its clTcct. (a) that the work described or the purpose for which the·Joan is granted is an improve ment or productive purpose, as the case may be, within the meaning of the bye-laws of the society ; · (&) that Jo person had, on the date of the order, a,)!ight to make such an improvement or to'· incur exp~nditure for productive pur poses, as the case may be ; and (c) that the improvement is one benefiting" the land specified · and productive purpose concerns. the land· offered in s-ecurity. or · any part thereof as may be relevant.] · 1[83-D. (1) Every applicant· for a loan to be given by a land development b~nk again.st the creation of a ~harge on .1ny land which he owns or . in which he has an interest shall, on his application being granted, make a. declaration in t~e prescribed form declaring that thereby he creates , m favour of that bank a charge on such land or his interest there in, as the case may be to secure the loan. (2) A declar·ation made unde r sub-section ( /) may be varied from time to time by the applicant with the·consent of the bank in whose favour.the declara tion has been made and any such variation shall take effect from such date on which the variation if it had been an original declaration, would have effect' under sub-section (3). J. Inserted by \he Orissa Co-operative Societies (Arnmdmcm) Act, 1978 (Or. Act l of J9i9), s. S. of 1963] THE OrussA Co-qPERATIYE SOCI[TJES AC'T, 19€2 ·, 705 (Sec. 83-E) (3) Notwithstanding anything contained In the Registration Act, 1908, a charge in r,::spect of which 16 or 19os a. declaration bas been made under sub-section (1) or in respect of which a variation ha·s been made under sub-section (2) by an applicant in favour of the barik in respect of loan given by that ban!c Shall be deemed to have been duly registered in accordance With ·the provisions of that Act, with effect from the date of the i.:harge or variation, as the case may be, provided that the bank sends to the Sub-Registrar within the local \imit s Gf whose jurisdiction the whole ot: any part of the property charged is situate, within a period of thirty days, ·by registered post with acknow ledgement due, two copies of the documents creating such charge or w1.riatiori duly cerlifi.ed to be true by an employee of the bank authorised to sign on its behalf. . . · (4) Notwithstanding anything cont;:tined in any law for the time being in force, an applicant who has availed of a loan from a land ·development bank by ·creating a charge on land or interest therein, shall not, so long as the.loan continues to be outstanding; lease out or create any ·tenancy right on such land or interest without prior permission in , writing of the bank. · (5) Any lease granted or tenancy rights created in . contravention of this section <;hall be void. 83-E (J) Notwithstanding anything contained in Charge ma any other law, when a mdrtgage is executed or a tcd or mon . · £ f l' "d d l t gage c;,;:ccu· charge 1s created · m avour o a an eve opmen 1..:d by a bank by one or more of the co-sharers of a· Hindu m~mdber ~r . . b h Hin u Joint J omt Fam11y or by any co-owner · or Y any p urc aser Family or from them, who i~ or are in · possession of the said co-owners. property on the date of the mortgage or charge and such possession is certified by a Revenue Officer not below the rank of a Revenue Inspector in the form to be- prescribed by the State Land Development Bank, the· same shall remain a first charge on the said land and the certificate of possession so granted shall be c'onclusive and binding and shall not be called in question in any C.Jurt or· Tribunal. (2) Notwithstanding anything contained in any other law custom or usage to the contrary, any Joan given by; land development bank shall remain a first 706 THE O R1SSA Co-OPERATlVE SoCIETl[S ACT, l 962 [0~. Act 2 Other gu11.r11.nteo by St11.lo Gove.rnment. Priority or niortsa8e over ertain claim,. (Sees. 84-85) c~~rge on the property so mo~tgaged till it is fully satisfied and discharged, notwithstanding a partition settlement, sale, gift, transfer, encumbrance charge or any other liability made or .created, wheth;r by or through court, or under any Act, mutual agreement, arbitration or by any other means, and any person . who acquires th,~ s~id pro perty in any manner what soever ·shall be hab1e to dts~harge the loan. (3) The aforesaid ~revisions shall apply notwith standing the provisions of the Orissa Consolid·ation . of Holdings and Prewntion of Fragmentation of . A .Land Act, 1972 and· the Qrissa Land Reforms Act, ?{1~t197~~ 1960.] 84. Where the 1 [ State Land Development Hank 1 or a '[ land development · bank J has given a . Ioa·n to ·a member for the development of any .land in excess of the amount of the Joan to which such . member would be entjtled on the basis of: the va1ue of the · land as: determined in accordance with the principles of valuation approved by the State Government, the State Government may, if they think fit, guarantee for a specified periotl the repayment of the loan to the extent of the e,.pess. · 'l85. (1) Notwithstancling anything contained in any Jaw for the time being-in force but subject to any claim of the·Goverrunent in respe ct of land revenue or any money reqoverable as arrears of 1an d. revenue and to the provisions of sub-section (2), any debt or outstanding demand due to the State Land Develop ment Bank or any land development bank on account ·· of a mortgage executed by any member or past or deceased member In favour of such bank shall be a first charg~ upon the land so mortgaged. · · (2) Any· such mortgage as aforesaid shall also have· priority over any claim· of the Government · a.risfag fro!'.9, a loan und~r the . Land · Improvement . Loans Act, 1883, or the.Agriculturists Loans Act, 188 4. granted after the execution of the mortgage. 19 of 1883. 12 of 1884, · ., ---~----- . , 1. Substituted bi• the Orissa Co-operati~ Societies (A. 11tDd1DCnt) Acr 1970 (O A ' r · '"' a. 16 for "Sta1c Land Mortgage Bank" w:id fm.· "Laud Mvrfl,'Jgo Bank".' r. et 5 0 i 9io ., 2. Substitute.a by ibid., s. ll of 1963) THE OR1ssA Co-OPERATIVE SoCIETIBS Ac.T. 196 2· (Sees. 85-A-87) 707 32 of 19$! . 85-A. (1) Mortgages executed in favour of a land MortBase~ development bank either ·befo~e or after the '?ommen?e- :;~~~s. %r ment of this Act, by the manager of a Hindu Jomt Jo1n ~ H1nrt13 Family shall, notwithstanding any law to the contrary, raw ics. · be binding on all the members thereof, if the loan secured by tbe mortgagor was granted for any purpost: of agricultural development of the land in accordanct, with the bye-laws of the bank. . , (2) Where. such mortgage is called in question on the ground that it was executed by the manager of a Hindu Joint Family for a purpose not binding on the members thereof whether majors or minors, the burden of. proving the same sha11, · notwithstanding any law to the contrary, be o'n the party alleging it. . 85-B. Section 8 of the Hindu Minority and Guardianship Act, 1956, shall anply to mortgages in favour of a land development barik, subject to the modification that reference to the Court made therein shalJ be construed as reference to the CoJiector or his nominee and, the appeal against the order of the Co11ector or hls nominee shatf lie to the Revenue Divisional Commissioner ~aving jurisdiction. J lectlon 8 of Aet 32 of · · 19l6to apply to m,0llpgc1. 86 .. (1) Notwithstanding anything contained in JUshtoFTaad any law for the time being in force, it shall be lawful t~0~f~ for a 1fland development bank] or the 1[State Land De- State t.and 0 velopment J3ankl to purchase any mortgaged property -R~~gmODt sold undet this Chapter, and the property so purchased purchase sba11 be. disposed of by such bank by sale within ;:~ such per10d as may be fixed by the Trustee. · . (2) Nothing in the Or.issa Land Reforms Act, ?l'td~ 1960 fixing a maximum limit of agricultural holding 0 · shall apply to the · acquisition of land by a 1 [land · development bank] or the I iState Land Development Bank] undet sub-section (1). 87. The mortgages executed in favour ·or, and Mortsaac, all other assets transferred to a 1 [Land Development f:exec11.tedrln J . avour o Bank by the members thereof shall, with effect from llmd the date of such execution or transfer be dovelopment , . f I bank to deemed to have been trans erred by such [land 1tand voated deVf·1opment ba.nk] to the 1 [Stc.te ·Land Development t~~ate Bank] and shall vest in the Trustee. Development Bank. l. Substilu!ed by the Orissa Co-operative Societies (Anrendment) Act, 1970 (Or. Act 5 or 1970}, s. l6, for "State Land M,ongage Bank'' ;:od ''Land Mortgage Bank". · · 708 THE ORISSA Co-OPERATIVE SocmTTES ACT, 1962 [Or Act 2 (Sees. 87-A...:...88) ·87-A) 1 (87 A. (I) Notwithsta:1d.i11g anything contained in this Act or in the rcbtivc mortgage bonds, the mortgages exec11ted in favour of the State Land Development Bank by t!le individual. members thereo f shall be deemed to he mortgages executed in favour of the land devd,1pn1ent bank operating in· the area wherein the mortg~ged properties are situate and the said members sh:1.ll be deemed to be members and debtors of such land development bank, with effect from the date on which.the State Lanci Development Bank transfers· the amounts due thereon, and the . shares held by the members to the land development bank concerned. · (2) Notwlthstanding anythiug contained in this Act or in· the relative mortg<1ge bonds, a mortgage executed in favour ?f a . land dev~loproent bank in respect of properties s1tlrnte · w1thtn the area of operation of another l.:i-nd development bank newly or subsequently established shaH be deemed to be executed in favour of such, other bank and the mortga gqr shall be deemed to be a member and debtor of such other bank with effect from the date on which the former bank transfers the amounts due thereon and the shares held by the- 1ncrnber to the later bank. I , • • (3) All moneys due under a mor.tgage transferred under this section shall be paya"b1e to the land develop ment bank to which the mortgage is transferred under sub-section (J) or sub-section (2) and such bank shall be entitled, to receive money, ·to grant valid discharge and to sue on the mortgage or take any other proceedings for the recp,,,ery of money due· thereunder.] f0 dcr or 88. Notwithstanding that a mortgage executed in d!~elopmcn t favour of a 2 [Land development bank] has been banIF-to transferred, or is deemed under the provisions of ~~~i:,:Bancl section 87, to have been transferred, to the 3 [S~te ~~~rges. Laud Development Bank] I. Inserted by the . Orissa Co-operative Societies (A.mcodrnenl) Ad, 1970 (Or. Act 5 of 1970), s. l 2. 2. Su bstitutcd by ibid., s. 16, for" Land Mortg;igc 8:1ni;:". 3. Sub;titutcd by ibid., for "Slate L.:ind Mor!gagc Ilank". of 1963] THE ORISSA Co-OPERATIVE SOClE1lES ACT, 1962 709 (Sec. 89) (a) all moneys clue under the mortgage shall, in the absence of any specific direction to the tontrary issued by the Board or Turstee and communicated to the mortgagor' be parable to such 1 l Land development bank and such payment shall be as valid as if the mortgage had not been so transferred; and (b) the 1(Land development ~ank]. s~ll, in the absence of any specific direction to the contrary issued by the Board c;,r Trustee and commurucated to 1t, b= entitled to sue on the mortgage or take any other proceedings for the recovery of the moneys due under the mortgage. 89. (1) Where a mortgage is executed in favour of Risf~ 0 t 1 a I Jland development bank] for payment ·of prior Li:.it ;;~;Fi; debts of the mortgagor, the bank may, notwithstandR ~lttr ing the provisions of sectioll.S 83 and 84 of the Transfec riorig~gor. 4 ousn of Property Act, 1882, by notice in writing, require any person to whom any such debt is due, to receive payment of such debt or part thereof from the bank at its registered office within such period as may be specified in the notice. (2) Where any such person fails to re,cP,ive such notice or such payment, such debt or part thereof, as the case may be, shall cease to carry interest from the expiration of the period specified In the notice: Provided that where there is a dispute a.s regards the amount of any such debt the person to whom such debt is due shall be bound to receive payment of the amount offered by the 1lland development bank} towards the debt, but such receipt shall not prejudice the right, if any, of such person, to recover the balance claimed by him. 1; Sub,;titutcd by the Orissa Co-operati~c Societies (Am~admcnt) Act, 1970 (Or. Act S of 1970) ,. 16 for " Land Mortgage Bank". 710 THE OarssA Co·OPE-lATI VE S::>-::IBrms Acr, 196 2 [ C r. Al;.\: (Sees. 90-91) DistrainL 90. (1) If any instalment payable under a : ~d~ L 0 be mortgage executed in favour of a 1 [land development bank], or the 1'[State Land Development Bank,] or any {)art of such instalment has remained unpaid for more than one month from the date on which it fell due the committee or the Board, as the case may be, may, in addition to any other remedy available to the bank, apply to the Registrar for the recovery of such instalment or part thereof by d.istraint and sale of the produce of the mortgaged land including the standing crops thereon. l2) On receipt of such application, the Registrar may, notwithstanding anything contained in the Transfer of Property Act, 18 82 take action in the 4 ofllB manner prescribed for the purpo,se of cListraining and selling such produce. 2* "' • Ii< (3) The value of the property distrained shall as nearly as possible, be equal to the amount due and the expenses of the distraint and sale. Po1werheoft 91. (1) Notwithstanding anything contained in S!I. CW 11 0 be cxerci5,ed. the Transfer of Property Act, 1882 where a J?.OWer , of ll82 0f sale without the intervention of the court 1s ex pressly conferred on the 1 [State Land Development Bank) or the 1 [land development bank] by the mort gage deed, the Bo:ud or the committee of such bank, as the case may be, or any p':-rson authorised by such Board or Committee in this oehalf '"shall, in case of default of payment of the mortgage money or any part thereof have power, in addition to any other remedy available to the bank, to bring the mortgaged property to sale without the intervention of the court after hearing the objections, if any, of the mortgagor. (2) No such power shall be exercised unless and until (a) notice in writing requiring payment of-such mortgage money or any part thereof, as the case may be, has been served upon 1. Subs!itulcd by the Orissa Co-operative Societies (Amen~ent) Act, 1970 (Or. Act 5 of 1970), s. 16, for "Stale Land Mortgage Bank and "Land Mortgage Bank". 2. Deleted by ibid., s. l J. of 1963] THE 0RISSA Co-0PEB,ATIVE1SOCIETIBS AcT, 1962 (Sec. 92) (i) the mortgagor; (ii) any person who has any interest in or charge upon the property mortgaged or in or .upon ·the right to redeem the same; (iii) any surety for the payment of the mortgage debt or any part thereof; and (iv) any creditor of the mortgagor who has in a suit for the administration of his estate obtained a decree for sale of the · mortgaged\ property; and (b).default has been made in payment of such mortgage money or part thereof for three months after such service. 711 92. Where any property mortgas.ed to the 1 [State Powirs or Land Developme.nt Bank] or a ':!pand development5°'~elopment bank ) is wholly or partially destroyed or the security Bank whadr• • • mortgage is rendered msufflc1ent and the mortgagor, having property ia ,been given a ~easonable opportunity by the Board ~~~;ed or or the -comrruttee of such bank, as the case may ~m~ be, for providing furthe~ security to tender the wufBc:ivnt whole security sufficient or of repaying such portion of the loan as may be determined by the Board or the Committee, has failed to provide such security or to repay such portion of the loan1 the whole of the loan shall be deemed to fall due at once and the Board 0:r the Committee, as the case may be, shall be . entitled to take action against the mortgagor under riection 90 or 9 I for the recovery thereof. Explanation-A security is insufficient within the meaning of this section unless the value of the mortga ged property exceeds the amount for the time being due on the mortgage by such proportion as may be specified in the bye-laws of the 1 [State Land Development Bank], or the 2 [land development bank], as the case may be. ·-·----· 1. Sub5titutcd by the Or.issa C.o-operati-.•e Sociolies {Amendlllent) Act, 1970 (Or. Act 5 of 1970), S, 16 for "State Ullld Mor1iaJe Bank." z. substituted by Ibid., For "Land Mortiase Bank" •. 712 THE O R1SSA CO-OPERATIVE SOCIETIES ACT, 1962 {Or. Ad (Sees. 93-94) Power of 93. (1) The Board or, the Trustee may direct the ~~t~~o of Committee of a 1 [land development bank] to take distrain and action against a defaulter under sections 90, 91 or 92 :!~ pror:ertY, and if the Committee neglects or fails to do so, the · Board or the Trustee may take such action. (2) (a) Where such action is taken by the Board, the provision of this chapter and of any rules made in this behalf shall apply in respect thereto as if all references, to the 1 [land d,evelopment bank] or to its Committee in the said provisions were references to the 1[State Land Development Bank] and the Board, respectively. (b) Where such action is taken by the Trustee, the provisions of this Act, and of any rules made thereunder shall apply in respect thereto as if all references to the 1 {Land Development Bank] or to its Committee in the said provisions were references to the Trustee. Title or 94. Where any property is sold in exercise or ~~t: purported exercise of a power of sale under section quClltioned, 90 or 91, the title of 'the purchaser shall not be questioned on the ground that (a) the circumstances required . for author ising the sale- had not arisen; (b) due notice of the sale was not given; or (c) the power 9f sale was oth~rwise impro .. perly or rrregularly exercised; but any person who has suffered any damage by an unauthorised, improper or irregular exercise of any such power shall have a remedy in damages against the I fState Land Development Bank] or, as the case may be, the 1[Land Development Bank]. t. Substituted by the Orissa Co-op~ralive Societies (Amondolcnt) Ad, 1970 (Or. Act, of 1970), s. 16 for "Sto.te Land Mortgage Bank" and "Land Mortgage Bank", ef 1~ . THB 0RJSSA ~o-oPER.A.TIVB SOCIETIES AcT, 1962 713 f of 1882 (Sees. 95-97) 95. Notwithstanding anything- contained in any Mortgage I l . . l rt · t ·d · not to be · aw reating to mso vency, a mo gage·execu e 1nquei11ioned favour of the 1 [State Land Development Bank] on insol or a •2 [Land Development Bank] . shall not be called ~~~~a~r. in question on the ground that 1t was not executed , in good faith or valuable consideration or on the ground that it ·was executed in order to give such bank a preference over the other .creditors of the mortgagor. 96. (1) The Board may, on the -application of a APPoin~ 2[Land Development Bank] and under circumstances ~;;i;il'~t and in which the powers of sale conferred by section 91 his poweu. may be exercised, appoint in writing a receiver of the produce and income of the m9rtgag ed property or any part thereof and such recexver, shall be entitled either to take possession of the property or collect its produce and income, as the case may be, to reta·in out of any money realised by him, his expenses of management including his remuneration, if any, as may be fixed by the Board, and to apply the balance in accordance with the provisions of sub-section (8) of section 69-A of the Transfer of Property Act;lR82. (2) A receiver appointed under sub-section· (/) may for sufficient cause and on application made by th~ mortgagor, be removed by the Board. (3) A vacancy in the office of the receiver may be filled up by the Board. (4) Nothing in this section shall empbwer the Board to appoint a receiver where the mortgaged property is already in the possession of a receiver appointed by a Civil Court. 97. (J) Notwithstanding anything contained in Mortgaiw's 4 or 1as2 1 the Transfer of Property Act, 1882 or any other law powers to for the time being in force, a mortgagor shall not lease, grant a lease of the mortgaged property for a period exceeding five years. (2)- Any lease granted in contravention of sub section (!) shall be void. 1. substituled by the Orissa Cc-operative Societies (Am,~ndmeol) Act. 19·io (Or. Acl 5 or I 970), ~- 16 for "Stale Land Mortgasc :Ba.ok , 2 :;ut,sti!uled by ibid.-, for" Land Monga~ Bank", 714 TuE ORISSA Co-oPERATlVE SOCIETIES ACT, 1962 [Or. Act l (Sees. 98-99) Registration 1 [ 98. (1) Notwithstanding anything ofdocumeots in the Indian Registration Act 1908 contained executed on ' behalf of a land dcve lopmcm bank or of rhc State l;Jnd Deve lopment Bank. (a) it shall not be necessary to register . a mortgage executed in favour of the State Land Development Bank or any land development bank where the concerned b;ink sends within sucll time and in such manner as may be prescribed a copy of the mortgage deed to the registering officer having jurisdiction, who shall file such copy in the book . maintained under sectiou 51 of the said Act; and (b) it shall not be necessary for any officer of the State Land Development Bank or ~ny land development bank to apper m per~on or by agen~ at any registration offi£e m any proceedings connected with the registraLion of any instrument execu ted by him in his official capacity or to sign as provided in section 58 of the said Act. (2) Where any jnstrument is so executed, the registering officer to whom such instrument is present ed for registr~tion or a copy of such instrument is sent for being filed may, if he thinks fit, refer to the officer who has executed the instrument for ihfor mation respecting the same, and being satisfied- of the execution thereof, shall register the instrument or, as the case may be, file the copy thereof. :-tortg.age by 98-A. Notwithstanding · anything contained in ~=h~~~;d or any other Jaw for the time being in force it shall not D.st<!s :m<! be necessary for persons belonging to the Scheduled Tribss, Tribes or Scheduled· Castes for obtaining- the permis sion of any authority as required by any such law for mortgaging any immovable property belonging to him in favour of any society including a land de:velopment bank.] Der!egatioi:! 99. The Board may, if it thinks fit, delegate all 0 ccnam f ·t d · 91 93 d 96 powers by or any o . l s pow~rs un er s.ect10ns .' an to Board. an executive comnuttee constituted by rt and consist ing of two or more of its members. 1, Substituted by the Orissa <..:o-opera five Sticictie:i (Amcodmcnt) A<:t, 1970 (O;: Act~ ot 1970), S· 14, 16of 1901 of 1963] THE ORISSA Co-OPERATIVE SocmTIF.S AcT, 1962 715 or I aa2 (Sees. JOO-JOI) 100 The provisions of sections 102 and 103 offg~ti~~d 'it the Transfer of Property Act, 1882 and of any rules of the Trans· made by the High Court under section 104 of that fer /r r~~ Act for carrying out the purposes of the said sections ffs:l, to appl:, shall, so far as may be, apply rn respect of all notices 10 dnoticch~ . un er t 1, to be served under this chapter. Cbaptc r. 101. (/), The Board may. subject to the approval Power of1hc of the T~u.stee, make r~gulations not inconsistent with !~tdrc;~la the prov1s10ns of this Chapter- tions. (a) for fixing the period of debentures and the rate of interest payable thereon; (b) for calling in debentures prior to the date fixed for redemption after giving notice to debenture-holders; (c) for the issue of new debentures in place of debentures damaged or destroyed; (cl) for converting one class of debentures into another bearing a different rate of interest; (e} for the inspection of the account books an~ proceedings of 1 [land development bank], (f) for the submission of returns ~~d reports by 1 [land development bankJ m respect JC their trnnsact10ns; {g) for the periodical settlement of accounts between 1 [land development bank] and for the payment of amounts. recovered by 1 [land development bank] on mortga ges transferred or deemed under the pro visions of section 87 to have been trans ferred to the 2 [State Land Development BankJ; . I Substituted by Che Orissa Co-opiralive Socicti: (~cndmenr) Act, I 970 (Or. A{;:t 5 of 1970 ), s. 16 for " I.and M01tgage an . 2. substi w Led by ibid., for " Slate Land Mortgage :sank". 716 THB ORISSA Co-OPERATIVE SOCIETIES ACT, 1962 [Or. Act 2 (Sees. J0i-A-200) (h) for specifying the form in which appli . cations to 1 [land develpoment bank1 for loans should be made and for the valua tion of the properties afforded as securjty for such loans; (i) for the investment of moneys realised from mortgagors; and (j) generally for the purpose of carrying out the provisions of this chapter. Ceriiaa 2 (101-A. The Provisions contained in sections 85 f;;r;s;~ns te> 86, 87, 87-A, 88, 89, 90, 91, 92, 93, 94, 95, 96, 98-A charge, and section 101, shall, mutatis mutandis. apply ;o Bn forccmcnt or charge. cbarres (jncludjng any variations thereto) created 1n favour of a land development bank.I CHAPTER XII tXECUTION OF AWARDS, DECREES, ORDERS AND DECISIONS 102. Notwithstanding anything contained in Chapter IX, or in any other law for the time being in force, but without prejudice to any other mode of recovery provided in this Act, the Registrar or any person subordinate to him empowered by the Regi strar in this behalf, may, on the application of a society, make an order directing the payment of any debt or outstanding demand due to the society by 1. Substitulcd by the Orissa Co-operative Societies (Amendment) Act, •· 16 for " Land Mortgage Bank". 2 Jnsencd by the Ot'lssa Co-operative Societies (Amendmcn1) Act, 1978 (Or. Act I of 1979), s. 6. , ·· of 1963] THE ORISSA CO-OPERATIVE SocJETlES ACT, )962 717 ( Sec. 103 ) any member or past or deceased member, by sale of the property or any interest therein. which is subject to a charge under sub-section (/) of section 34: Provided that no order shall .be made under this section, unless the member, past member or the nominee, heir or legal representative of the deceased member, has been served with a notice of the appli cation and has failed to pay the debt or outstanding demand within seven days from the date of such service. 103. (1) Every order made by the Registrar &ccution oi under sub-section (2) of section 67 or under section °rdus· etc 102 or sub-section (1) of section 108, every decision or award. made under section 70, every order made by the liquidator under sectiqn 75 and every order made under sections 109, Ill, 112, 113 · and 114 shall, jf not carried out (a) on a certificate signed by 'the Registrar, or any person authorised by rum in this behalf, be deemed to be a decree of a Civil Court and shall be executed in the same manner as a decree of such court; or ( b) be, executed according to the Jaw and under the rules for the time being in force for the recovery of arrears of land revenue: Provided that any application for the recovery 1n such manner of any sum shall be made (i) to the Collector and shall be accompanied by a certificate signed by the Registrar or by any person authorised by him in this behalf; (ii) within twelve years from the date fixed in the order, decision or award and it no such date is fixed, from the date of the order, decision or award, as-the case may be; or 718 Tue OR1ssA Co-OPERATIVE SoctETIES ACT, 1962 [Or! Act 2 ( Sees. 104-105) D . (c) be e~ecuted by the Registrar or any other person subordinate to him empowered by the Registrar in this behalf, by· the attachment and sale or sale without attach ment of any property of the person or -a society against whom the order, deci sion or award has been o.btained or passed. (2) The provisions of clause (c) of sub-section (J) shall apply with such modifications, if any, as may be directed by the State Government, in regard to the recovery of like sums due to societies registertd or deemed to be registered in any other State of India under any law relating to societies for the time being in force in that State as if such societies had beeo registered in the State of Orissa under this Act.. (3) In the case of recovery under clause (b) of sub-section (]), the Registrar or any person author ised by him in this behalf by general or special order shall be deemed to be the person to whom the arrear. of land revenue, as the cas~ may be, is due or payable. (4) Th~ provisions contained in the Schedule shall apply in respect of execution proceedings taken under clause (c) of sub-section (I). Rcristrar . or person 104. The Registrar or any person empowered t~1g1~~~c~c by him in this behalf ~hall be dee.med when exercising a Civil any powers under thts Act for the recovery of any ;e~~itn f~:1r. amount by the attachment and sale or by sale with poses. out attachment of <'.ny property, or when passing any orders on any application, made to him for such recovery or for taking a step-in-aid of such reco very, to be a Civil Court for the purpose of Article 182 of the first schedule to the Indian Limitation Act, 1908. g orI908 Atttchmcnt . 105. If the. Re&istrar is sati sfied on an appE 06fr propertyd cat10n, report, Inqmry or otherwise, that any person e ore awar . . l or order. with intent to de ay or obstruct the enfr. ;-cement of of 1963] THE ORISSA CO-OPERATIVE SOCIETIES Acr, 1962 ( Sec. 106) .. any order, decision or award that may be m ade against-him under the provisions of this ·Act (a) is about to dispose of the whole or any . part of his property; or (b) is about to remove the whole or any part. of his prqperly from ·the jurisdiction of the Registrar, the arbitrator or liquidator, as the case may be; he may, unless ade·quate security is furnished, direct the attachment of the said property; and such atta,ch ment shall have the same effect as if made by a corn~ petent Civil Court. 719 c. P. Act n 106. (J) Notwithstanding anything contained Ri1h~s of~ ~ ~8~· t I in the Central Provinces Tenancy Act, 1898, of the k~~s &ir ~ of i"i.120~ Central Provinces Tenancy Act, 1920, or the Angul society in 0 1 rL~sn 5 Reg- Laws Reg.ulation, 1936, or the Khondmals Laws ~:~om11~~~a u O!lOD of , 6 h 1 f , · . 1936, O~issa Regulation, 193 ' C?f anx ~t er aw or the ttme :?;i:~·Ly L R;s,u~;J10n 4 being in force, defining the nghts of ten.ants on the tring it to 0 • • land and the relalion between Government and sale. tenarit or the landlord and tenant, it shall . be lawful in an area in the St~te of Orissa, where any of the above enactments is in force, for (a) a member of a·· society or a person other than a member to whom loan has been made in accordance with provisions of section 59, whether such member is an occupancy· tenant or otherwise to . . ' mortgage to the society hts rights in his holding as a security for the loan advanced to him or to sell such right for the purpose of repaying such loan or advance; or (b) the Registrar or a person authorised by him in this behalf to recover the sum due under an award, decision or order under this Act from any person in accordance with· the provisions of clause (c) of sub section (J) of section 103; or 720 THE ORISSA Co·oPBRATIVE SOCIETIES Acr, 1962 [Or. A-c1 .f.. Recovery or sums duo from II. sala ry earner. (Sees. 107-108) (c) the colle~tor to recover the sum under an award, decision or order under trus Act from any person in the same way as jf it were an arrear .of land revenue; or (d) the 1{Jand·development bank] to bring to sale under section 91, the property mort gaged to it. 107. Notwithstanding anything contained i n the Code ,Qf Civil - Procedure, 1908, or any other 1aw 5 of 19Ct for th~ time being in force, any sum payable in accordance with an award or decision. made under section 70 in respect of- default in the payment of a lciJn ta.ken under section 35 or of any iastalment of such a.loan, shall be recoverable if the salary (including'other emoluments) of the member exceeds rupees one hundred per · men~em, by the attachment of such salary to the extent of instalment in. respect of wh.ich the default has been made or one-b.alf of the difference b~tween such salary an~ hundred ruoees whichever is less. 108. (J) All sums due from a society to Govern Pioperty ment or O.rissa Khadi and Vi llage Industries Board from which l su,lls due estab i.shed under the Onssa Khadi and Village rro~, a 1 Industries Board Act, 1955 jncluding an:y cost O:rissa Act 3 socie~y o d nd . · - . of 19S6, Gavemmeot' a war ed. u er any prov1s1on o l this Act may, on aod b0thm an order issued by the Registrar in this behalf be can o reco· d . h . . • vered: xecovere m t e same manner as 1s provided under sub-section {/) of section 103. (2) All sums tecoverable from a society in accordance with order, decision or award under this Act may . be -recovered (i) frorr~ the property of "the society; r r I~ Substit.uted by the Ori&Sa Co-operative Sociclics (Amendment) Act, 1910· (Or. Act S af 1970), s. 16 for ''Land Mortgage Bank." of 1963] THE ORISSA Co-OPERATTVE Socrntrns Ac1'., 1962 711 LSec. 109) (ii) from memb'e:rs, past members or the estates of deceased members of the society or their sure'ties, to such extent and in such proportion as" may be determined by the Registrar subject to the extent of the indebtedness of such members, past members and deceased members to the society and to the provisions of section 69. CHAPTER XIII APPEAL, REVISION AND REVIEW 109. (1) An appeal shall lie under this section AJJPNu against the following orders and decisions. namely·: la) an order of the Registrar made under sub -section .(2) of section 7 -refusing to register a society; '[(b) an order of the Registrar made under sub-section (4) of section 12 refusing to register an amendment of the bye-laws. of a society or an order made under iub section (6) of that section registering an amendment of such bye-law}; {c) an order directing amalgamation or division under sub- sectiori (3) of section 14 ; '"[(d) a decision of a society refusing to. adip.it any person as a member of the s~c1et.y or expelling any member of the soc1et:Y £ • • • • 1 ij; ~[(d-1) an order of th~ Registrar . passed under sub-section (2-a) of sect.I.on 16;,1 s [(e) an order of the Registrar remoymg a member or President of a Co~nuttee or an Officer of a society under sect10~ 28;] ~ (e-1) an order touchins the election. to~ · memb.ers of the Committee of any socie Y' •1. Substituted by the Orissa Co-operative Societies (Amendmenl) Act, .970 (Or. Act, S of 1970), s. IS(a){,). 2. Substituted by ibfti., s.15(a) (fl). 3. Deleted by lbe Orissa Co-curative Societies ( Amendment), Act, I97j ( Or. Act 25 of J975.), s. 4{a). 4. Inserted by the Orh.a .Co-operative Societies ( Amendment ) Act, 1975 ( Or. Act 25 of 1975 ). s. 4(b). 5. Substituted by the Orissa Co-operative Societies (Amendment) Act, 1978 (Or. Act J of 1979), s. 7. 6. Substitu~d by ihe Orissa Co-operative Socie1ies (Socond Amendment) Ac1 1970 (Or. Act 21 or 1970), s. 10. 722 THE OrussA Co4 oP.ERATIVB Soc.mm:s AcT, 1962 (Sec. 109-contd.) [Or.Act 2 (/) an order of the Regisuar removing the Committee of a society or disqualifying any officer thereof made under section 31; (g) an order of suspension of an officer under section 65; (h) an order made by the Registrar under section 66, apportioning the cost of an enquiry held under section 6~ or an inspection made under !.ection 64; (i) an order of surcharge made by the Registrar under section 67; U) a decision or award under section 70; (k)~ an order made by the Registrar under section 72 directing windiQg up of a society; (/) any order made by the liquidator ol a society in exercise of the powers conferred on him under section 75; (m) an order m'.lde by the Registrar under section 103; (n) an order for attachment of any property made by the Registrar under section 105 ~ or (o) any other order or decision as may be prescribed. 1[ (2) An appeal under sub-section {/) shall be made within sixty days from the date of publication or communication of the order or decision, as the case maybe (a) if the decision or order was made by the Registrar, to the State Government; or (b) if the decision or or der was made by any other person including an officer exercising all or any of the powers of or under the authority of the Registrar or by a Society, to the Registrar;] 1. Plea.,;e see Annexurc ef j963] THB ORISSA Co-0PPRATIVE SOCIETIES Acr,- 1962 723 (Sees. UO-J.11) Provided that if in the case of application for the registration of a society or for the registration of an amendment of the bye-laws of a :society no orders are passed within three months fn;:,m the date of the application the applicant may, at his option, file an appeal within sixty days from the expiry of the aforesaid period of three months as if the failure to pass the said order where an ord er of refu.sal specified in clause (a) or (b) of sub-sect10n (/) as the case may be: 1[Provided further that in cases where an applica tion for membership of any society is deemed to have been rtjected the period of limitation as aforesaid shall run from the date of expfry of the pedod allowed to the society for communicating its decision to the applicant.} (3) No appeal shall lie under this section from any decision or order made by the State Government or the Registrar in appeal as the case may be. (4) An appeal against an order specified in clause (a) or (h) of sub-section (1) and an appeal under the proviso to sub-section (2) shall be disposed of within two months from the date of filing of the appeal. 110. The State Government, may, by general or Delegation special order delegate their power of hearing appeals or power to under the provisions of this Act, except the power of hear appook. hearing appeals against orders of the Registr arpassed under sections 32 and 67 to any authority specified in such order. 111. (1) Any authority may, on the application:ami:w of any party interested, review any order or decision or award made by him in any case and pass such order as he thinks fit : Provided that no such .application shall bo entertained unless the authority is satisfied that there has been a discovery of new and important matter or evidence which after the exercise of due diligence l. Imcrtcd by the Orissa Co-operative Socic!ics (Amendment) Act, 1910 (Or, ActJ of 1970), s. 1S(b), 724 Tm ·ORISSA CO-OPERATIVE SoCmTIES ACT, 1962 [Or. Aet 2 Powor of r1'Vl~ion br Ri,gistrar. ( (Sec. 112) ) was not within the.knowledge of the applicant or could not be prod12ced by him at the time when its order was made or that there has been some mistake or error apparent on the fact of. the record or for any other sufficient reason: Provided further that no such order shall be made under this sub-section unless notice has been given to all interested parties and they have been given a reasonable opportunity of being heard. (2) An application for review under sub-section (1) shall be made wit~n ninety days from the date of the communication of the' order or decision or award. 112. (1) The Registrar may, of his own motion or on application by any person, considering himself aggrieved and after giving the parties concerned a reasonable opportunity of being heard, call for and examine the record. of any :proceedings before any authority subordinate to him m which no ·appeal lies, fo1 the purpose of satisfying himself as1o the legality or propriety of any decision made or order passed and may pass such order thereon as he deem& fit. 1[(2) An application for revision shall be· made within ninety days from the date of the deds1on or order sought to be revised : Provided that an application for revision of any decision made or order passed prior to the date of commencement of the Orissa Co-operative Societies (Amendment) Act, 1980, shall be made Within a period' of nmety days next after the commencement of the said Act or within one year from the date of the decision ~r order sought to be revised, which ever period expires earlier.] I. Substituted by the Orissa Co-operative Societies (Amendment) Act, 1980 (Or. Acl 10 of 1980), s. 4, w. e. f. the 5th November, 1980. of 1963 ] THE OR1ssA Co ·O?ERATIVE So::rnrm; Acr, 1962 (Sees. 113-114) 725 113. (J) The State Government may, of their own Po1;~r of motion or on application by. any person considering s~:~~on by himself aggrievc:d and after givmg the parties concerned Gowmmen1 a reasonable opportunity of being heard, calt for and examine the record of any proceeding before the Registrar in which no appeal lies, for the purpose of satisfying themselves as to the legality or propriety of any decision made or order passed and may pass such order thereon as they may deem fit. Explanation-For the purposes of this sub-section, Registrar shall not include any person exercising all or any of the powers of the Registrar. 1[(2) An application under sub-section U) shall oe made within ninety days from the date of the decision or order sought to be revised : Provjded that an apphcation under sub-section (1) against any decision made or order passed prior to the tdate of commencement of the Orissa Co operative Societies (Amendment) Act. 1980, shall be made within a period of ninety days next after the commencement of the· said Act, or within one year from the date of the decision or order sought to be re':'ised, whichever period expires earlier.] 2 S G t by D~Jcg;i.tiori [113-A. The tale overm~1en may, of power of general or special order, .delegat~ the!r powers urider revision. section 113 to any authonty spec1fiec! In such order.] 114 Where ...::1 n appeal or revision or review is Interlocutory . · - S ,nders b7 made under sections 109, 111, 112 or 113, the ta~e oove~n.t Gaver nment or the Registrar as the ca,s e may be, may 1 n or Rag,srra order to prevent the ends of justic.e being d~f~ated. make such interlocutory orders pendmg the decision of the appeal, revision or review as may be deemed fit. l. S\1bstirn!cd by the' Orissa Co·opcrativc S01;:ictie;; (Amendment) Act, 1980 (')r /\d 10 of 1980), s. 5-. w. c. f. the 5(h Novcmh<!r, 1980. :: ; Inserted b·-· 1h~ Orissn Co-operative Societies (S..-conC: Amendment) Acl. J 970 (Or. ·Acl 2.J o i 1970), s. I I. 726 THE 0i<..T"SA C·J<>PERATIVE SocmnES Acr, 1962 [ Or. Act 2 (Sec. 115) CHAPTER XIV OFFENCES AND PENALTIES otrel'lco1 115. (J) Any person other than a society carrying on business under any name or title of which the word "Co-operative'' or its equivalent in any Indian language, is part, \rithout the sanction of the State Government shall be punishable with fine which may extend to two hundred rupees. (2) Any member or past member or the nominee, heir or legal representative of a deceased member of a society who contravenes the provisions of section 34 by <lisposi~g of any property in respect of which the society is entitled to have a first charge under that sectioi1 or does any other act to the prejudice of such claim, shall be punishable with fine, which may extend to two hundred rupees or with simple imprisonment which may extend to one month or with both. (3) A society or an officer or a member thereof wilfully making a false return or furnishing false information; or any person wilfully or without. any reasonable excuse disobeying any summons, requisition or lawful written.order issued under the provisions of this Act, or wi!fu1ly not furnisbing any information required from him by a person authorised in this behalf under the provisions of this Act, shall be punishabl• with fine which may extend to two hundred rupees. l4) Any employer other than the State or Central Government or a loca: authority, who, without sufficient cause, fai Is to 1rny to a· society the amount de<lucted by him under srction 35, within a period of fourteen days from the date on which such deduction is made shall, V.:ithout. prejudice ~o any action"t~at maybe taken against him under any law for the t1me bejng in force be pw.ishable wHh fine which may extend to five thous'and rupees. of 1963 ] THE ORISSA Co-0PBRA TIVB SOCIETIES ACT, 1962 7 27 (SC'C. I l5··COllfd.) (5) (a) An. officer or member who destroys, mutilates, alters, falsifies or abets the destruction, mutilation, alteration falsification of any book, paper or security or makes or abets the making of any false or fraudulent entry in any register, book of account or document belonging to a society and such action fa not done in good faith; or (b) an officer or member of a society or any other person who does any act or omissJon declared by the rules to be an offence; shall be punishable with fine which may extend to two hundred rupees. (6) Any officer of a society who, having ceased to hold office.and having remained in possession at the time of such cessation, of any document, cash, valuable security or other property which belongs to the society or the .custody whereoflawfully belongs to such sodety, \'nthout sufficient cause refuses, neglects or fails to deliver up the same to his successor in office shall be punishable with fine which may extend to one thousand rupees or with simple imprisonment which may exte11d to three months or with both. (7) Any officer of society who having the power, by or under the bye-laws of the society, to remain in custody of any cash belonging to the· society keeps in his custody, without reasonable cause, any such money in excess of the permissible limit beyond the period allowed under the said bye-laws or in any other manner not permitted hereunder shall be· punishable with fine which may extend to one thousand rupees or with imprisonment which may extend to one year or with both. 1[(8) If any officer of a society or any of his near relatives having common economic interest fails to repay the total demand of the society outstand ing against him by the due date, the Registrar shall be informed wWtin fifteen days of such due date faiHng which the officer or employee of the society responsible for sending such information shall be punishable with fine which may extend to two hundred rupees. 1.-Inscrlcd bY the Ori~sa co-operative Societies (Second Amendment) Act, 1910 lOr. Act 21 of 1 s-70,) 5,I 2. 728 THE OR1ssA Co-OPERATIVE So:::1ETIES AcT, 1962 l Or. l3-,\, J,.. (Sees. 116-119) (9) If the Secretary or the Executive Officer of the society fails to send the infimation in due time as required by sub~section (J) .of section 28-A he shall be punishable wjth fine \vhich may extend to t~vo thousand rupees or with simple imprisonment which ·may extend to two months.] 1[(10) An applicant for a loan from a land deve lopment bank, who wilfully makes a false or defective declaration, shall be punishable w:th fine which may extend to two thousand rupees or with imprisonment which may extend to six months or with both.] cocniuocc 116. (J) No court inferior to that of a Magistrate or orrcncc. ,of the first class shall try any offence under this Act. (2) ,No prosecution for an offence under this Act shatl be instituted without the previous sanction of the Registrar. CHAPTER XV ~-fISCELLANEOUS Pro ldbi1ion 117. No person other than a society shall trade aga1n,t che b . d ,1,e or wortl or carry on usmess un er any name or title of ·:en-opera- wl1.ich the word "Co-operative" or its eq:Jivalent t1, ," " " · in any 1 ndian language is part: 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 wltich he carried on business at the date on which the Co-operative Sodeties Act, I 9 I 2. came into operation. Addres~ of 118. Every society shall have an address registered a soci~tr. in accordance with the rules to which all notices and communications may be sent and shall send to the Registrar "ilotice of any change thereof within thirty days of the change. Cory ordAct. 119. Every s.ociety sliall, keep a copy of this Act, rules an · byc-!:i.ws to the rules and its bye~laws open for the purpose of be opened to.reference free of charge at al[ reasonable times at the rcfercucc. . d ffi f h · register~ o ce o t e society. I. lasmcd by the Ori,sa Co.operative Societies (Amendment) Ac!, 1978 (Or. Act l of J979), s. B. 2 of 1912 of 1963] THE ORISSA CO-OPERATIVE SoCIET'ES Acr, 1962 (Sees. 120-121) 729 120. (/) In exercising the function conferred P':'"":m or on it by or under th.is Act, the Registrar, any person s:ivil Court. authorised by the Registrar, in this behalf the arbitrator or any other person deciding· a dispute and the liqllidator of a society shall have all the powers of a Civil Court, while trying a suit, under the Code ., or 1908 of Civil Procedure, 1908, in respect of the fo1lowing :matters, namely: (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 (rT) issuing commissions for examination of whness. (2) In the case of any affidavit, any officer «pointed by the Registrar, the arbitrator, or any other person deciding · a dispute, the liquidator or the person authorised by the Registrar, as the case may be, in this behalf may administer the oath to the deponent. 121. (/) Save as provided in this Act no civil 1hr of juris. or revenue Court shall have any jurjsdiction in uiciion of f Coun,. respect o (a) the registration of a society or bye-laws or of an amendment of a bye-Ja\v; (b) the removal of a committee ; (c) any dispute required under section 68 · to be referred to the Registrar; and (d) any matter concerning the and the dissolution of a winding up society. (2) While a ·society is being wound up, no suit or other legal proceedings relating to business of such ·society shall . be proceeded with, or instituted against, the liquidator as such or against the society or any member thereof, except by leave of the Registrar and subject to such terms as he may impose. 730 THE 0RISSA Co-OPERATIVE SoCIBTIES ACT, 1962 (Sees. J 22-125) (3) Save as provided in this Act, no order, decision or award made under tl1is Act shall be questioned in any Court on any ground whatsoever. l'owcr to . 122. Notwithstanding anything contained in c.~ernpl ~ocz-thi A t 1 St t ,--, t b · I ci1.:, rrom s c , t 1e a e vovernmen may, y spec1a con.diiior,1s or order in each case and subject to such conditions, rq;,s1rairon 'f ] , · • 1 any, as t 1ey may m1pose, exempt any society from any of the requirements of this Act as to registration, Power 10 123. The State Government may by general exempt c\asl . , of societies. or special order exempt any society or any class of :societies from any of the provjsions of this Act or may direct that such provisions shall apply to such society or clas.s of societies with such modifica tions as may be specified in the Order. Register of members. 124. Any register or list of members or shares kept by any society shall be prima facie evidence of any of the following entered therein (a) the date on which the name of any person . was entered in such register or list as a member; (b) the date on which any such person ceased to be a member. Proof or 125. (1) A copy of any entry in a book of society !~:f:~!t regularly kept in the course of its business, shall, boo1r;,. if certified in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence, of such entry and shall be admitted as evidence of the matters) transactions and accounts therein recorded in the same manner and to the same extent as the original entry itself is admissible. (2) A society may grant copies of any document obtained and kept by it in the course of its business, or of any entries in such document; and any copy so granted shall, when certified fo such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the original document, or the entries therein, as the case may be. l Or. Act 2 of 1963] THE 0RISSA CO-OPERATIVE SoCJETJES ACT, 1962 731 (Sees. 126~128) (3) No officer of a society and no officer in whose office the books of a society are deposited aftt;:r liquidation shall, jn any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society's books or documents the contents of which can be prnved under this section or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under order of the court or the arbitrator made for special cause. 126. Service of every notice on order issued Service of or made under this Act, shall be made in the prescri- notice uader bed the Act. manner. 127. No suit shall be instituted against a society Notice nece! or any of its officers in respect of any act touching the s~y in constitutions, management or the business of the iuu~ society until the expiration of two months after notice in writing has been delivered to the Registrar, or left at his office, stating the cause of actioP, the ' name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left. 128. (1) No act of a society or of a committee or of Ac~s 9r any office or liquidator doJ?.e in good faith in pursuance ~~ .. ~~5{ to of the business of the society sha11 be deemed to be be invali invalid by reason only of some defect subsequently ~::~in.by discovered in the 0rganisation of the society· or in the derceta. constitutions of committee, or in the appointment or election of the officer or liquidator or on the ground that .such officer or 1iquidator was disqu:::i.lified for his appointment or election. (2) No act done in good faith by any person appointed under trus Act, shall be invalid merely by reason of the fact that his appointment has been cance1led by or in consequence of any orcler subse~ quently passed under this Act. (3) The Registrar shaJI be the authority to decide whether any act was done in good faith in pursuance of the business of a society. · 732 1RE O~ISSA CO-OPERATIVE SocIBTIES AcT, 1962 (Sees. 129-133-A.) [Or. Act 2 Indemnity R11ghtrar lo be publk: 50rvant. 129. No suit, prosecution or other legal proceedings shall lie against the Registrar or any person subordinate to him or acting on his authority in respect of anything in good faith done or purporting to have done under this Act. 130. The Registrar and any person exercising the powers of the Registrar shall be deemed to be public servants within the meaning of section 21 of the Indian 45 or l860 Penal Code . .., I , , f h I of 1956 ~P!95~1 131. The prov1s1ons o t e Companies Act, 1956 ~ic·,o apply. sha11 not apply to any society. Limitation Saving of exlstiog societies, 132. Save as other\"\':ise provided in sections 69, 109, 111, 112 and 113 the provisions of the Indfan .Limitation 90f 1908 Act, 1908 shall apply to all disputes, appeals, reviews and revisions made lm.der this Act.. · · · 133. (J) Any society now existing whlch·has been registered under the Co-operative· Credit Soci~ties Act, 10 or 190 .. 4 d h C . s · . ,· A 19 2 2 Of· 1912 190 or un er t e o-operatJVe . oc1etrns et, I 'J. or Oriss:i. Aci under the Orissa Co-operative Societies Act, 1~51, 11 of1952 shall be deemed to be registered nnder ~his Act, and its bye-laws shall, so far as they are not inconsistent with the provisions of this Act, continue in force until altered or Fescinded. (2) All appointments, rules and orders made, notifications and notices issued, ail transactions entered into and suits and other proceedings fastituted under any of the said Acts shall, so far as may be, ·deemed to have been respectively made, fasued, entered into and instituted under·tws Act. Special pro· 1[133-A. Notwithstand~ng anything co~tained in this Act, in the case 'of an insured co-operative bank-, isions rela1ing: lO iD~ured ,;:o· opcr;itivc !J;iok~ (i) an ·order for winding up, amalgamation or division of the bank shall not take effect unless previous sanction therefor has been. acco::-ded in· writing by the Reserve Bank of India; ~ l. Imer!cd by the OrisSil Co-operative S0:kli·~s ( Amendment ) Act, I 975 ( Qr. Act 25 or J 975 ), s. 5. . of-1963} THE 0RJSSA. CO-OPERATIVE SOCIETIES ACT, 1962 733 47 or t9tJJ ·'17 r,,f 19.:i: (Sec. 133-A-contd.) (ii) an order for winding up of the bank shall be made by the Registrar if so required by the Reserve Bank of India in the circu mstances mentioned in section 13-D of the Deposit Insurance Corporation Act, 1961; (iii) if so required by the Reserve Bank of India in writing in the public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management thereof, the Regi strar shall pass an order for the removal of the committee of the bank and for appointment of an Administrator therefor, for such period, not exceeding five years in the aggregate, as may, from time to time, be specified by the Reserve Bank : Provided that no such order for removal shall be passed without giving the con cerned commhtee a reascnablc opportunity of being heard; (iv) no appeal, revision or review shall - He against an order referred to in clause (i), (ii) or (iii) made or passed whb the previ- ous sanction in writing or on the requisi tion of the Reserve Bank of India and no such order or sanction shall be liable to be caHed in question in any manner;· (1') the liquidator of the insured co~operative bank or tbe transferee bank, as. th~ case may be, shall be under an obhgat10n. to repay the Deposit Insurance Corporation established under the DeJ?OSit Ins1:1-rance Corporation Act, J961, m the cucum· stances, to the extent and in the manner provided in section 21 of that Act. 734 T1m ORISSA' Co-OPERAm'a SocmTIES AcT, 1962 t Or.~ 1 (Sec. 134) Explanation I-For the purposes of this section (i) ''insured co-operative bank" means a society which is an insured bank under the prov.;. s~ons of the Deposit -Insurance Corpora t10n Act, 1961; 47 of 1961 (ii) ''Lransferee bank'' in relation to an insured co-operative bank means a co-operative bank (a) with Which such insured co-operative bank is amalgamated; or (b) lo Which the assets or liabilities of such insured co-operative bank are trans ferred; or (c) into which such insured co-operative bank is divided or converted under the provisions of section 14; (Ni) "Reserve Bank of India" means the Reserve Bank of India established under the Reserve Bank of India Act, of 1934.] Powers to 134.-(1) Toe State Government may, after previous make rurc.,. publication, make rules to carry out the purposes of this Act. (2) AH rules made under tliis section shall as soon as they are made be laid before. the State Legisla~rc ror a -period of fourt~n days which may~ comprised in one or more sess.ions and shall be snbJect to such c:~tions,., as the Legislature Itlqy makei t.berain rlie·wd 'period. ~ ., \ 2 of 193.( of 196:3] 1'HB OR1ssA Co<•P~RATIVB Socwrms Act, 1962 735 (Sec.I 34-contd.) (3) In particular, and without prejudice to the ~enerality of the foregojng power, such rules may pro vide for all or any of the followjng matters, namely : (a) the applicant to whom the order refusing the registration of a society may be sent. by the Registrar ; (b) the procedure and conditions for change in the :form and extent of the liability of a society ; (c) the matters in respect of which a society shall or may make bye-laws ; · (d) the procedure to be followed for amendment of bye~laws by a society ; (e) the qualifications or disqualifications or individuals who may be admitted as mem .. bers of societies ; (/) the provision for a second or casting vote by the Chairman of a meeting of a society ; , (g) the appointment by a society of one of its members to represent and-vote on its behalf at a meeting of another society of which it is a member; (h) the maximum number of shares or portion of the share capital of a society which may be held by an individual member ; (l) the procedure for nomip11~on of a person to whom.the share on m'.terest of a member on his death may ·be transferred or the value thereof may be paid ; (J) the mode in which the value of a deceased member"s share shall be ascertained ; (k) the election of members of committee by the general body of a society and election of a preUminary comllllttee by the applicants for the registration of the society to Coll duct the affairs of tire scroietY' for c:«t'ain period; 736 TBB OIUSSA Co·DPERATIVB SocmrJES Act, 1962 (Sec. 134-COll/d.) (/) the requisitioning of a genera] meeting of a society ; (m) the remunerationpayable to a new committee or administrators appointed in place of a committee removed by th~ Regfatrar ; (n) the qualifications of employees of societies ; (o) the prohibition against officers of a society being interested in contracts with the society ; (JI) the matters connected with the direct and indirect partnership of the State Govern ment in societies ; (q) the rate-at which dividend may be paid by societies ; (r) the payment to be made to the 'Co-operative Edu~tion Fund' -by a society out of its net profits and the mode of its investment ; (s) the mode of in vestment off unds of a society ; (t) the objects of the reserve fund of a society and mode of it5 investment ; (u) the mode of disposal of reserve fund of a society on its winding up ; (v) the extent and conditions subject to which a society may receive deposits and loans ; (w) the restrictions on transactions by. a socie~y with non~members ; {x) the restrictions on grant of loans by a society against its shares ; (y) the form and standards of fluid resources to be maintained by societies accepting depo sits and granting cash credits ; (z) the levy of audit fees on l!locieties ~ [Or. Aot} of 1963 J THE ORISSA Co-oPBRATIVB SocmTIBS AcT, 196 2 737 (Sec. 134-contd.) (aa) the procedure to be followed in proceeding$ before the Registrar,· arbitrator or other person deciding disputes ; (bb) the conditions subject to which assets of a society shall vest in a liquidator and the procedure to be adopted in winding up of a society ; (cc) the procedure for recovery of amounts due or payable -to a society ; (da) the ·mode of making attai;hment before judgment; (ee) the procedure for the d.istraint and sale of properly, mortgaged to a 1[land develop• ment bank] ; (ff) the manner of registering the address of a society ; (gg) the account books and registers to be kept by a society and power of Registrar to direct the accounts and books to be written (hh) Yfe :manner of certification of entries in the books of a society and copies of documents kept by it in the course ofits business ; (ii) the statements and returns to be furnished by societies to the Registrar, Financing Bank and the Apex Societv: · (i.D the restrictwns on persons appearing as legal practitioner ; (kk) the inspection of documents and the levy of fees for granting certified copies thereof ; (II) insp ec~ion by ~ncing Bank and Apex Societies and calling of general meeting and r!~t of free access to books, accounts, securities, etc., and to issue summons for their production ; I. Substilutcd by Lhc Orissa Co-operativc Societies (,\mendmcot) Act, J970 (Or. Act 5 of 1970), s. 16. · 738 TH~ ORISSA Co-OPERATIVE SocrETIES AcT, 1962 [Or.Act 2 ( Sees. 135-13 8 ) (mm) the furnishing of information by members · as to their financial position and alienation of their immovable properties and creditors of members to furnish statement of their claim; (nn) the contents to be included in the audit report ; (oo) the fee payable for filing memorandum of appeal or - application for revision or review ; or (pp) any other matter whie:h has to be or may . be prescrjbed. Co-operative 135. There shall be a State Co-operative Council Council. constituted by the State Government, for the State of Orissa, whose function will be to fcrmulate plan and policies for the development of Co-operative Movement in the State as may be prescr~bed. Cons!niction oC references to Co-opcra tivo Socielics Act, 1912, etc., in enact. mcn!s. Power to remove diffi• cuHics, R.epe.al 1~6. All references to the .Co-operattive Societies Act, 1912, occurdng in any enactment made by any 2 er 1912 authority in India and for the time being in force in the State of Orissa) shall, in the application of any such enactment to the said State, be construed as references to this Act. 137. (1) If any doubt oi:- difficulty arises in giving effect to the provisions of this Act the State Government may as occasion may require, by order do anythlng not inconsistent with the provisions of this Act or the rules made thereunder which appears to them necessary for the pl;lrposes of removing the doubt or difficulty. (2) An order made under sub-section (1) shall be laid as soon as may be before the State Legislature. 138. The Orissa Co-·operative Societies 1951 is hereby repealed. Act Orissa Act , 11 or 1952. M 1951] tfla 0,U55A OJ·Ol>,HAr[VB S:,:;Jsrrn~ k~I'; 1961 739 SCHEDULE [See SECTION 103 (4)] 1. (J) When immovable property has been sold by the Registrar under clause (c) of sub-section (J) of secti9p. 103, any person owning such property or holding· an interest therein or when the property sold has been mortgaged to the 1[State Land Develop ment Bankl or a 2[1and development bank,} any·person entitled to a notice under section 91, may, within thirty days of the date of the sale, apply to the Regi strar to have the sale set aside on ·his depositing wiilihlm- · · · (a) for payment to the purchaser as comp.en sation a sum equal to five per centum of the pur chase money ; {b) for payment to the State Government, the society, the 1[State Land Development Bank] or the 2[Land Development bank] or the liquidator in conse quence of whose applfoation the ~le was held, the amount specified in the proclamation of sale for the recovery of which the sal e was ordered to be held together with interest thereon arid · the expenses of attachment, if any, and S?-le and other costs due, in respect of such amount, less any amount which may since the date of such proclamation have been received by the State Government, the·society, the 1[State· Land Development Bank], the z[Iand :development bank] or• the liquidator, as the case may be. · (2) At any time within thirty days from the date of sale of immovable property, under section 103 the society, the 1[State Land Deve1opment Bank], the ~[Land Development Bankl or the liquidator at whose instance the sale was held, or any person entit led to share in ratable distribution: of assets or whose interests are affect~d by the sale, ma v apply to the Registrar to set aside the sale on the ground of a material irregularity or mistake or fraud in publi shlng or conducting- it : Provided that no sale shall be. set aside on the ground of irregularity, mistake or fraud, unless, upon the -facts proved, the Registrar is satisfied tfait the applicant has sustained· substantial injury by reason of such irregularity, mistake or fraud. . J. Substituted by the Orissa Co-operative Socie!ics (Amendment) A~i, 1970 (Or. Act 5 of 1970), s. 16 for "Stnte Land Mortsoge Bank". 2, substituted by Ibid., for "Land MJrlgage Bank"', Application to set aside salo. 740 TeE OR1ssA Co-oPERt\.TIVE SocIETIEs AcT, I 962 [ Or. Act 2 (Sch.-contd.) (3) The purchaser at any such sale may also, witrun the period of thirty days from the date of sale, apply to the Registrar to set aside the sale, o.n the ground that the person from whorn the sum 1s recoverable under the awar4, decision or order in execution of which the sale was held, had no saleable interest in the property sold. (4) When the Registrar has reason to think that the sale ought to be set aside on the ground of irregu larity, mistake or fraud, notwithstanding tha.t no application to set aside the sale has been made or on grounds other than those mentioned in any appli cation m~de and, reJec~ed, he may, after giving an opporturuty to ~II P<i.:hes conce~ned '?~ being heard and after recording his reasons m wrJtrng, set aside the sale at any time before it is confirmed. (5) Whe!1 a person appl!es under sub-paragraph (2) to set aside the sale of immovable property in which he is interested, he shall not, unless he with draws his application, be entitled to make an appli cation. under sub-paragraph (/). (6) On receipt of application and deposit under sub-paragraph (J), the Registrar shall set' aside the !!!ale and shall pay back to the purchaser the pur chase money so far it has been <lepo$ited together with the five per cent of such money deposited by the applicant. (7) If the sale is set aside under sub-paragraphs (2), or (4), the Registrar shall return the purchase moneY to .the purchaser with or without interest as he may decide and may direct a fresh sale. Explanation-For the purposes of this Schectulr "Registrar" shall include any other person empowered by the Registrar under clause (c) of sub-section (J) of section 103. Confirma~o:i. 2·. On the expiration of thirty days from the ofsale. ' date of the sale, if no application to ha.'.'e the sale set aside has been made under paragraph l or if such application has been made and rejected and 'if the Registrar has not taken action· under sub-paragraph (4) of thl).t paragraph, he shall make an order con.fiim.,. iDJ:!! the sale which sh'all tltere'itpon become ab'solttte. of 1963 1 'UHE ORISSA Co-OPERATIVE SoC[ETIES ACT' l 962 7 41 (Sch.-conrd.) 3. W'.aen a sale has been made under sectjon Title or pur l 03 and has been confirmed and made ·1.bsolute under choior 0 ?t to . ' be quc~t1 paragraph 2, the title of the purchaser shall not be oncd. questioned jn any Court by any person, whose inter est has been sold, or his successor-in-interest, on any ground whatsoever. 4. (1) The proceeds of sale under section 103 Distribution b Ii " ll of prcx:11ed~ shall e app ed as 10 ows :- of 6a1D. Firstly, in payment of all cusi.s, charges and expenses properly fr1curred as incidental to the attach ment, if any, custody, sale or attempted sale ; Secondly, in payment of all interest due on account of the principal sum under the award, deci sion or order, as the case may be ; Thirdly, in payment of the principal money due under the award, decision or order, as the c2se may be; and Lastly, the residue, if any, thereafter remaining, shall be paid to the person whose property was sold or to his successor-in-interest. (2) All payments of such residue made in accord ance wah sub-paragraph (J) shall be valid and effec tual against any dcman,d relating thc~eto; made by any person upon the Registrar or the Society, the 1[State Land Development Bank], the 2(Land Development Bank] or the liquidator, as the case may be, in conse quence of whose application the sale was held. · 5. (1) When the sale is confirmed under par-a- Ce··tificato graph 2, the Registrar shall on application grant a of~alc. certificate in the prescribed form specifying who, at the time of the sale, is declared to be the purchaser and such certificate shall bear the date on which the sale. was made absolute. (2) The Registrar shall send a copy of everv certificate granted under sub-paragraph (/) to th~ registering officer appointed under the Indian Regi I6or 190s stration Act, 1908, within tl1e local limits of whose jurisdiction the whole or any part of the immovable property compdsed in such certificate is situated, and notwithstanding anything contained in the said Act, such registering officer sha11 enter the contents of such copy in his register of non-testamentary docu ments relatiug to immovable property. !. Substilu1cd iJythc Orissa Cc,opi::r:-.fr-1c Societies (Amendment) A,:;t, 19i0 (Or. Act~ of 1970), ~- 16 for ''Sfate Lend Moncav,c B::ink". 2. Substin:td by iUd., for "Land Mc,nr;age B .. 1,1;;."' 742 THE OmssA Co-OPERATIVE SocJETIES AcT, 1962 [Or. Act '. Delivery or property to purchaser. (Sch.-contd.) (3) Notwithstanding anything contained in the Orissa Tenancy Act, I 913, the purchaser of any immo- B. & o. Ad vable property, sold under section 103 shall, if the 2 or 1913, property sold or any portion of it is an occupancy holding or part of an occupancy holding to which the said Act applies, file along with his application for grant of certificate under sub-paragraph (I) a notice giving particulars of the transfer in the forms prescribed under the said Act and deposit the fee as prescribed therein for the service of it and the Regi strar shall thereupon transmit the notice to the Collector r1ho shalJ cause it to be served on the landlord in the manner prescribed under the said Act. 6. (1) When the immovable property sold is in the occupancy of the persons, whose right, title and interest in the property have been sold, or of some person on behalf of such person or mortgagor, or of some person claiming under a title created by such person subsequently to the attachment of such pro perty other than a lease for a period not exceeding five years created by the mortgagor subsequent to the mortgage in favour of the 1[State Land Development Bank] or the 2[Land Development Bank], as the case may be, and a certificate in respect thereof has been granted under paragrpah 5, the Registrar granting the certificates shall, on the application of the purchaser order delivery to be made by putting such purchaser or any person, whom he may appoint to receive deli very on his behalf, in possession of the property and if need be, by removing any person who refuses to vacate the same. (2) Where the property sold is in the occupancy of a tenant or other person entitled to occupy the same and a certificate in respect thereof has been granted under paragraph 5, the Registrar granting the certificate shall, on the application of the pur chaser1 and after notice to such tenant or other person, order delivery to be made, by affixing a copy of the certificate of sale in some conspicuous place on the property and proclaiming to the occupant by beat of drum or other customary mode at some convenient place that the interest of the person from whom the sum under the award, decision or order, as the case may be, was reeoverable, has been trans ferred to the purcha ser. 1. Substituted by the Orissa Co-operative Societies (Amendment) Act, 1970 (Or. Act 5 of 1970), s. 16 for ·'State I.and Mortg;i~c Bank". 2. Substituted by ibid., ror ''bmd Mor!l!:r:;:: .d"nk". of 1963] THE ORISSA C0n0PERATIVE SOCIETIES ACT, 1962 743 (3) In regard to the cases dealt with in s uh paragraphs (1) and (2) the provisions of rules 97 to 103 of Order XXI of the First Schedule to the Coda of Civil Procedure, I 908 shall, mutar is muta11dis, 5 of 190s apply. 744 AmendmcoJ of se,::lion !09. THE ORISSA CO-OPERATIVE SOCIETIES Acr, 1962 [Or. Act, 2 of 19631 ANNEXURE: PROVISIONS OF THE ORISSA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT; 1980 (QRISSA ACT 10 OF 1980), NOT INCORPORATED IN THE ORIGINAL ACT * • 3. In section 109 of the principal Act, for sub section (2) excluding the provisos, the fol!owin~ sub-section shall be substituted, namely : 1[{2) An appeal under sub-section (J) shall be macle within sixty days from the date of publication er communication of the order or decision, as the: case may be, to such authority as may be p rcscr ibed.] . I. C-1 me into force ""· e. f. 20th Ju! /98 l ·d Published in an exlraDrdinary issue of 1/ 0 , v1 c-S . R. O. No. 575/8 I. the 20th JulY 19SJ. e n~sa Gazette No. 90, dated 1 ORISSA ACT 1 OF 1979 *THE ORISSA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 1978 [Received the assent of the President on the 23rd July 1978, first published in an extraordinary issue of the Orissa Gazette, dated the 25th January 1979] AN ACT TO AMEND THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962 BE it enacted by the Legislature of the State of Orissa in the Twenty-ninth Year of the Republic of India, as follows: 1. (1) This Act may be called the Orissa Co-operative Societies (Amendment) Act, 1978. (2) It shall come into force at once. 2. In section 28 of the Orissa Co-operative Societies Act, 1962 (hereinafter referred to as the Principal Act), (a) in sub-section (2), in the proviso, (i) in clause (b), the word “and” occurring at the end shall be omitted; (ii) in clause ©, for the full stop “.” the semi-colon and the word “;and” shall be substituted; (iii) after clause ©, the following new clause and explanations shall be inserted namely: “(d) in the cases of Farmers Services Co-operative Societies and Large Size Multi-purposes Co-operative Societies, at least two thirds of the members of the Committee shall respectively be small farmers and members belonging to the Scheduled Tribes. Explanation I- “Small farmer” means a person who owns not more than five acres of land. Explanation II- The principles for determining whether a society is a Large size Multi-purpose Co-operative Society or not, shall be as may be prescribed.”; (b) in sub-section (2-a), for the figures letters and words “25th day of August, 1970”, the words and figures “date of commencement of the Orissa Co-operative Societies (Amendment) Act, 1978” shall be substituted; Short title and commence ment. Amendment of section 28. Orissa Act 2 of 1963. 2 (c) in sub-section (3), for the words “to become a member of President” the words “for being chosen or for continuing as a member of President” shall be substituted; (d) for sub-section (5) the following sub-section shall be substituted, namely “(5) If in the opinion of the Registrar, (a) a member of President of a Committee of a society has incurred any of the disqualifications mentioned in sub-section (3), or (b) any officer of a society who having the power, by or under the bye laws of the society, to remain in custody of any cash belonging to the society, keeps in his custody, without reasonable cause, any such money in excess of the permissible limit beyond the period allowed under such bye-laws or in any other manner not permitted thereunder, the Registrar may, by order in writing after giving such member, President or officer a reasonable opportunity of being heard, remove him from his office and thereupon he shall be deemed to have vacated the office with effect from the date of the said order.”. 3. For section 83-A of the Principal Act, the following section shall be substituted namely: “83-A. Any land development bank may grant loan to its members against the creation of a charge on or mortgage of land free of encumbrances”. 4. For section 83-B of the Principal Act, including its marginal heading the following section shall be substituted, namely: “83-B. (1) Every applicant for a loan to a land development bank shall make a declaration in the form prescribed by the land development bank before an officer authorised by the Registrar in this behalf, on solemn affirmation that the land sought to be mortgaged is free from all encumbrances and that the mortgager is in possession thereof and has the right to create the mortgage. (2) The declaration made under sub-section (1) shall be conclusive, final and binding. (3) If at any time a declaration made under sub-section (1) is found to be false or defective, the land development bank shall, subject to the provisions of section 85, have a fist charge on all other movable and immovable properties of the applicant, and all such properties shall be deemed to have been included in the mortgage deed and the development bank may proceed against all such properties of the mortgager under section 91. Explanation-A charge created under section 34 shall not constitute an encumbrance for the purposes of this section and section 83-A. Amendment of section 83 A Amendment of section 83 B. Applicant for loan to make a declaration. 3 (4) Only those applications which conform to the requirements of sub section (1) shall, in accordance with the rules made in that behalf, be taken into consideration by the bank.”. 5. After section 83-C of the principal Act, the following new section shall be inserted, namely: “83-D.(1) Every applicant for a loan to be given by a land development bank against the creation of a charge on any land which he owns or in which he has an interest shall, on his application being granted, make a declaration in the prescribed form declaring that thereby he creates in favour of that bank a charge on such land or his interest therein, as the case may be, to secure the loan. (2) A declaration made under sub-section (1) may be varied from time to time be the applicant with the consent of the bank in whose favour the declaration has been made and any such variation shall take effect from such date on which the variation if it had been an original declaration, would have effect under sub-section(3). (3) Notwithstanding anything contained in the Registration Act, 1908, charge in respect of which a declaration has been made under sub-section (1) or in respect of which a variation has bee made under sub-section (2) by an applicant in favour of the bank in respect of loan given by that bank shall be deemed to have been duly registered in accordance with the provisions of that Act, with effect from the date of the charge or variation, as the case may be, provided that the bank sends to the Sub-Registrar within the local limits of whose jurisdiction the whole or any part of the property charged is situate, within a period of thirty days, by registered post with acknowledgement due, two copies of the document creating such charge or variation duly certified to be true by an employee of the bank authorised to sign in its behalf. (4) Notwithstanding anything contained in any law for the time being in force an applicant who has availed of a loan from a land development bank by creating a charge on land or interest therein, shall not, so long as the loan continues to be outstanding, lease out or create any tenancy right on such land or interest without prior permission in writing of the bank. (5) Any lease granted or tenancy rights created in contravention of this section shall be void. 83-E. (1) Notwithstanding any thing contained in any other law, when a mortgage is executed or a charge is created in favour of a land development bank by one or more of the co-sharers of a Hindu Joint Family or by any co-owner or by any purchaser from them, who is or are in possession of the said property on the date of the mortgage or charge and such possession is certified by a Revenue Officer not below the rank of a Revenue Inspector in the form to be prescribed by the State Land Development Bank, the same shall remain a first charge on the said land, and the certificate of possession so granted shall be conclusive and binding and shall not be called in question in any Court or Tribunal. Insertion new sections 83-D and 83-E. Charge how created and its effect. 16 of 1908 Charge created or mortgage executed by a member of Hindu Joint Family o co-owners. 4 (2) Notwithstanding anything contained in any other law, custom or usage to the contrary, any loan given by a land Development Bank shall remain a first charge on the property so mortgaged till it is fully satisfied and discharged, notwithstanding a partition, settlement, sale, gift, transfer, encumbrance, charge or any other liability made or created, whether by or through Court, or under any Act, mutual agreement, arbitration or by any other means, and any person who acquires the said property in any manner whatsoever shall be liable to discharge the loan. (3) The aforesaid provisions shall apply notwithstanding the provisions of the Orissa Consolidation of Holdings and Prevention of Fragmentation of Land Act, 1972 and the Orissa Land Reforms Act, 1960.” 6. After section 101 of the Principal Act, the following new section shall be inserted, namely: “101-A. The provisions contained in sections 85,86,87,87 A,88,89,90,91,92,93,94,95,96,98-A and section 101, shall, mutatis mutandis apply to charges including any variations thereto) created in favour of a Land Development Bank. 7. In section 115 of the Principal Act, in sub-section (1), for clause (e) the following clause shall be substituted, namely: 8. In section 115 of the Principal Act, after sub-section (9) , the following new sub-section shall be inserted, namely: “(10) An applicant for a loan from a Land Development Bank, who willfully makes a false or defective declaration, shall be punishable with fine which may extend to two thousand rupees or with imprisonment which may extend to six months or with both.”. Insertion of new section 101-A. Certain provisions to apply to charge. Amendment of section 115. Orissa Act 21 of 1972, Orissa Act 16 of 1960. Amendmen t of section 109. ORISSA ACT 7 OF 1979 * THE ORISSA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 1979 [Received the assent of the Governor on the 27th March 1979, first published in an extraordinary issue of the Orissa Gazette, dated the 29th March 1979] AN ACT TO AMEND THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962 BE it enacted by the Legislature of the State of Orissa in the Thirtieth Year of the Republic of India, as follows: 1. This Act may be called the Orissa Co-operative Societies (Amendment) Act, 1979. (2) It shall be deemed to have come into force on the 25th day of January, 1979. 2. In section 28 of the Orissa Co-operative Societies Act, 1962 (hereinafter referred to as the Principal Act) in sub-section (2), in the proviso, for Explanation I to clause (d), the following Explanation shall be substituted, namely: “Explanation I- ‘small farmer’ means a person who owns not more than five acres of unirrigated land or two and a half acres of irrigated land.” 3.(1) The Orissa Co-operative Societies (Amendment) Ordinance, 1979 is hereby repealed. (2) Notwithstanding such repeal, any order made, anything done or any action taken under the Principal Act as amended by the said Ordinance, shall be deemed to have been made, done or taken under the Principal Act as amended by this Act. *For the Bill, See Orissa Gazette, Extraordinary, dated the 27th February 1979 (No. 251) Short title and commence ment. Amendment of section 28. Repeal and savings. Orissa Ordinance No. 2 of 1979. Orissa Act 2 of 1963. ORISSA ACT 19 OF 1983 THE ORISSA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 1982 [ Received the assent of the President on the 23rd September 1983 first published in an Extraordinary issue of the Orissa Gazette dated the 11th October, 1983] AN ACT TO AMEND THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962 BE it enacted by the Legislature of the State of Orissa in the Thirty-fourth Year of the Republic of India, as follows: 1. (1) This Act may be called the Orissa Co-operative Societies (Amendment) Act, 1983. (2) Section 12 shall be deemed to have come into force with effect the fifth day of November, 1980 and other sections shall come into force at once. 2. In Section 2 of the Orissa Co-operative Societies Act, 1962 (hereinafter referred to as the principal Act), (a) for clause (a), the following clauses shall be substituted, namely: “(a) ‘apex society’ means a society having the whole of the State of Orissa as its area of operation and consisting of societies as its members, and declared as such by the Registrar; Provided that such society may have individuals and other bodies corporate as nominal or associate members, as the case may be; (a-1) ‘associate member’ mans a member who holds jointly a share in a society with others, and is admitted as such, but whose name does not stand first in the share certificate”; (b) after clause (f-1), the following new clause shall be inserted, namely: “(f-2)‘nominal member means a person admitted as such to a society, after its registration, in accordance with the bye-law;” (c) after clause (n) the following new clause shall be inserted, namely: “(o) ‘Tribunal’ means ‘Co-operative Tribunal’ constituted under section 67-A,”. 3. In section 6 of the principal Act, in sub-section (2), for clause (b), the following clause shall be substituted, namely: Amendment of Section 6. Amendment of Section 2. Orissa Act 2 of 1963. Short title and Commencem ent. “(b) Where all the applicants are (i) individuals the number shall not be less than ten; (ii) Societies, the number shall not be less than five in case of a Central Society and Central Co-operative bank and ten in case of an apex society and viable in the opinion of the Registrar;”. 4. In section 14 of the principal Act, (a) sub-section (3) shall be deleted; (b) in sub-section (4), the words, brackets and figure “or the order made under sub-section (3)” shall be deleted; (c) in sub-section (5), the words. Brackets and figure “or when an order has been passed by the Register under sub-section (3)” shall be deleted; (d) In sub-section (6), the words and comma “ or order, as the case may be” shall be deleted; (e) in sub-section (7), the words ‘ or order” shall be deleted; (f) in sub-section (8), the words “ or an order’ shall be deleted; 5. After section 14 of the principal Act, the following new section shall be inserted namely: “14-A. (1) Notwithstanding anything contained in this Act, if the registrar for reasons to be recorded is of the opinion that (a) for ensuring viability of any society or societies; or (b) for avoiding over-lapping or conflict of jurisdiction of the society in any area or (c) ‘in order to secure proper management of any society; or (d) in the public interest; or (e) in the interest of depositors; or (f) in the interest of co-operative movement in the State as a whole; or (g) in the interest of the co-operative credit structure in the State as a whole, it is necessary to reorganize any society or societies or to amalgamate any two or more societies into a single society, the registrar may, after consulting the financing bank of the society or societies, by order published in the Official Gazette, direct such reorganization or amalgamation, as the case may be. Compulsory reorganization of amalgamation of societies. Insertion of new section 14-A. Amendment of Section 14. (2) The order under sub-section (1) may provide for (a) reduction of the interest or rights which the members, depositors, creditors, employees and other persons may have in or against any such society to be reorganized or amalgamated to such extent as the registrar considers necessary in the interest of such persons for the maintenance of the business of that society having due regard to the proportion of the assets of such society and its liability; and (b) such incidental, consequential and supplemental matters as may, in the opinion of the Registrar, be necessary to give effect to the reorganization or amalgamation of the society or societies. (3) No order under sub-section (1) shall be made unless the Registrar (a) has given every society concerned an opportunity of stating its objections and suggestions on the order proposed to be made; and (b) has considered the objections and suggestions so made by every such society, or its members, depositors, creditors, employees, or any other persons concerned, within such period, not being less than fifteen days from the date of receipt of the proposed order, as the Registrar may fix in that behalf. (4) An order issued under sub-section (1) shall, notwithstanding anything contained in this Act, or in any other law or in any contract, award or instruments for the time being in force, be binding on all societies and their members, depositors, creditors, employees and other persons having any right, assets, or liabilities in relation to all or any of the concerned societies. (5) On and from the date the reorganization or the amalgamation takes effect, the assets and liabilities referred to therein shall stand reorganized or amalgamated, as the case may be, with the assets and liabilities of the resulting society or societies formed out or such reorganization or amalgamation members, creditors and debtors of such society or societies shall be deemed to be members, creditors and debtors, as the case may be, of such resulting society or societies as ordered by the Registrar. (6) In case of the society or societies directed to be reorganized or amalgamated, the registration of the reorganized or merged society or societies, as the case may be shall be, deemed to be cancelled from the date on which the reorganization or amalgamation takes effect. (7) Notwithstanding anything contained in the Transfer of property Act, 1882 or the Registration Act, 1908, an order issued under this section shall be sufficient conveyance to transfer the assets and liabilities of the society or societies covered by any order passed under sub-section (1)”. 6. In section 16 of the principal Act, in sub-section (3), for clause (a), the following clause shall be substituted, namely: Amendment of Section 16. 4 of 1882 16 of 1908 “(a) no individual shall be eligible to be a member of an apex society or a Central Co-operative Bank: Provided that an individual shall be eligible to become a nominal or associate member; and”. 7. In Section 18 of the principal Act, for sub-section (2), the following sub-section shall be substituted, namely: “(2) A ‘nominal member’ shall not be entitled (a) to any share, in any form whatsoever, in the assets or profits of the society (b) to attend the general body meeting of the society; and (c) to be elected to the Committee of the society.”. 8. After Section 21 of the principal Act, the following new section shall be inserted, namely: “21-A (1) Any society may, by resolution passed by two-thirds majority of the members present at a meeting of the general body, expel a member who acts adversely or whose continuance is considered detrimental or prejudicial to the interest of the society. Provided that no such resolution shall be valid unless the member concerned is given an opportunity of representing his case before the general body in the prescribed manner. (2) A copy of the resolution so passed shall be communicated to the member concerned and also shall be published in the notice board of the society.’ 9. In Section 28 of the principal Act, (a) after sub-section (I-b) the following new sub-section shall be inserted, namely; “(1-c) Notwithstanding anything contained in this Act, in case of a society registered after the commencement of the Orissa Co-operative Societies (Amendment) Act, 1983 the Registrar may nominate the first committee of the society to manage the affairs of the society for a period two years initially which may be extended by him from time to time so however that the aggregate period does not exceed four years: Provided that where a society in which shares have been subscribed or liabilities by way of guarantee for borrowing exceeding fifty percentum of the working capital of the society has been undertaken by the Government, the term of the nominated Committee may further be extended by the State Government for such period or periods as may be considered expedient not exceeding two years in the aggregate”. Amendment of Section 28. Power of general body to expel member. Insertion of new Section 21-A. Amendment of Section 18. Orissa Act of 1983. (b) in clause (d) of sub-section (2) for the words “two thirds of the members the words “two thirds of the elected members” shall be substituted . (c) in sub-section (3) (i) for the words, comma and hyphen “No person shall be eligible for being chosen or for continuing as a member or President of the Committee of the a society, if he” the words, commas and hyphen “No individual shall, whether by himself or as a representative of the society, be eligible for being chosen or for continuing as a member or president of the Committee of a society, if he-“ shall be substituted; (ii) for clause (e) the following clause shall be substituted, namely; “(e) has failed to make payment of any amount due whether in cash or in kind to the society or to any other society on account of any loan or otherwise within three months from the date of notice by the society for payment of such dues; (iii) for clause (g)excluding the proviso, the following clause shall be substituted, namely: “(g) has been expelled from a society under Section 21-A;”. (iv) after clause (g), the following new clauses shall be inserted, namely; “(h) has been convicted on charge of misappropriation or defalcation of funds of any society or has been found liable in a surcharge proceeding until such conviction or liability is reversed; or (i) has been dismissed, discharged or removed from the service of the Government, Public Sector, Undertaking Local Body, a Co-operative Society or any other body corporate as a result of disciplinary proceedings on charge of embezzlement, misappropriation or any other misconduct involving moral turpitude unless the order of such dismissal, discharge or removal has been reversed; or (j) is holding any office of the profit under the State or Central Government, or under any local authority or aided educational institution; Provided that nothing in this clause shall debar nay such person from becoming a member or the President of the Committee of a society formed exclusively of such persons and a person nominated under sub-section (1) of section 31; or (k) is debarred under the Representation of the People, Act, 1951 to contest election. (d) after sub-section (3), the following new sub-section shall be inserted, namely: “(3-a) A representative of a society or a body corporate shall not be eligible for being chosen or for continuing as a member or president of the Committee of any other society in cases where the society or the body corporate which he represents (f) has failed to pay any amount due in cash or in kind to the society or any other society on account of any loan or otherwise within three months from the date of notice by such society for payment of such dues; or (ii) ceases from the membership of the society; or (iii) is ordered to be wound up or dissolved. (3-b) (1) Notwithstanding anything contained in this Act, there shall be a Chief Executive for every society, by whatever designation called, who shall be appointed on whole time basis by the Committee subject to the approval of the Registrar. Such Chief Executives shall be deemed to be a member of the Committee in case of an apex society and any other society or class of societies as the State Government may, by notification from time to time, specify. (2) Subject to the overall control of the Committee, the Chief Executive shall (a) manage the day to day business of the society, (b) operate the accounts of the society, (c) be responsible of making arrangements for safe custody of cash, (d) sign on the documents for and on behalf of the society, (e) make arrangements for the proper maintenance of various books and records of the society, for the correct preparation, timely submission of periodically statements and return in accordance with the provisions of this Act and the rules and bye-law made thereunder. (f) be competent to convene meetings of the General Body, the Committee and sub-Committee, if any, and maintaining proper records for such meetings, (g) be competent to make appointments to posts in the society in accordance with the rules prescribed excepting the posts relating to which the power of appointment vests in the committee, (h) assist the committee in the formulation of polices, objectives and planning’s, etc. 43 of 1958 (i) furnish to the committee periodical information necessary for apprising the operation and function of the society, and (j) perform such other duties and exercise such other powers, as may be prescribed or as may be specified in the bye-law of the society. (3-c) The Chief Executive shall be deemed to be public servant within the meaning of section 21 of the Indian Penal Code”. (e) for sub-section (4-a), the following sub-section shall be substituted, namely: “(4-a) No individual shall at any time, whether by himself or as a representative of any society, hold office as a member of the Committee of more than one Primary Society, Central, Society including a Central Co-operative Bank or apex society.”; (f) in clause (a) of sub-section (5), for the words, figure and brackets “disqualifications mentioned in sub-section (3)” the words, figures and brackets “disqualifications mentioned in sub-sections (3), (3-a), (4), and (4 a)” shall be substituted; (g) after sub-section (5), the following new sub-section shall be inserted, namely “(6) Where any vacancy in the office of a member or the President of a Committee arises by reasons of death, resignation or removal of any member or the President or by withdrawal of its representative by a member, society, such vacancy (a) shall be filled up in the same manner as it was originally filled up; (b) shall, within fifteen days from the date of its occurrence, be intimated by the Chief Executive of the Society to the Election Officer the authority having power to fill up the vacancy and the Election Officer or the authority, as the case may be, shall take steps to fill up the vacancy within a period not exceeding six months from the date of receipt of the intimation.”. 10. In section 28-A of the principal Act, (a) sub-section (7) shall be omitted; (b) after sub-section (7) so omitted the following new sub-section shall be inserted, namely: “(8) Any expenditure required to be incurred in holding of election of members and President of a Committee or in connection with matters Amendment of Section 28-A. 45 of 1860 incidental thereto shall be met by the society under the direction of the Election Officer.”. 11. In section 31 of the principal Act, after sub-section (2), the following new sub section shall be inserted, namely; “(3) A person nominated to the Committee of a society under sub-section (1) shall not be eligible to contest any election for the office of the President or any other office bearer of the Committee of a society.”. 12. In section 32 of the principal Act, (a) for sub-section (1), the following sub-section shall be substituted, namely: “(1) If, in the opinion of the registrar, the Committee of any society persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or the Bye-laws, or committee any act which is prejudicial to the interest of the society or its members, or is otherwise not functioning properly the Registrar may, after giving the Committee an opportunity to state its objections if any, within twenty one days from the date of service of the notice issued in that behalf, by order in writing stating reasons therefore, remove the Committee; and appoint (b) a new Committee consisting of not less than three and not more than five members of the society in its place. (c) one or more Administrators who need not be members of the society, or (d) any other society with its consent, to manage the affairs of the society for a period not exceeding two years as may be specified in the order and the said period may, at the discretion of the Registrar, be extended from time to time, so however that the aggregate period does not exceed four year: Provided that, for any sufficient cause to be recorded, the Registrar may, in any case, extend the aforesaid period of twenty-one days so however that, the total period does not exceed thirty days from the date of service of the notice.”; (b) for sub section (4), the following sub-section shall be substituted namely; “(4) Before taking any action under sub-section (1) in respect of a society, the Registrar shall consult the financing Bank to which it is indebted and consider the opinion received from such Bank: Provided that when no opinion is received from such Bank within a period of thirty days from the date of reference by the Registrar, it shall be deemed that such Bank has agreed to the action proposed to be taken by the Registrar under sub-section (1).”. Amendment of Section 32. Amendment of Section 31. 13. After section 33-A of the principal Act, the following new section shall be inserted, namely: “33-B (1) Notwithstanding anything contained in this Act, the Registrar, if so considers necessary in the interest of the Co-operative movement in the State, may create a common cadre of employees belonging to such class of societies as may be specified therein and for that purpose, constitute an appointment Committee or otherwise any Apex or Central Society including Central Bank to which such class of societies are affiliated, to exercise the powers of appointment, transfer and discipline in respect of all or any of the categories of employees of such class of societies, as may be specified by him in that behalf; Provided that a society or a class of societies may exercise the powers of discipline in respect of any cadre employee posted under such society or class of societies as the case may be, to the extent specified in the regulation made under sub-section (2). (2) The registrar may, for the purpose of regulating the matters of appointment, transfer and discipline as provided under sub-section (1) make such regulations as may be necessary. (3) Save as provided in sub-section (1) on and from the date such appointment Committee is constituted or any Apex or Central Society including Central Bank is authorized under sub-section (1), the concerned class of societies shall have no powers to deal with matters relating to appointment, transfer and discipline in respect of employees of the category or categories specified under the said sub-section. (4) The Registrar shall have power to require the societies of the concerned class to contribute such sum every year towards expenditures as the appointment Committee so constituted or the Apex or the central Society including Central Bank so authorized under sub-section (1), may incur or has incurred for the purpose. If any society fails to pay the require some to such authority and within such time as may be specified by the Registrar, the Registrar may, on receipt of information from such specified authority and after such enquiry as he may consider necessary, make an order requiring the concerned society to pay the amount within a certain time, and every such order shall be enforceable against the society as if it were a decision under section 70 of the Act.”. 14. For section 34 of the principal Act, the following section shall be substituted, namely: “34. (1) Notwithstanding anything contained in any law for the time being in force, but subject to any claim of the Government in respect of land revenue or any money recoverable as land revenue, any debt or outstanding demand owing to a society by any member or past or deceased member shall be a first charge upon the land or interest in any land, crops and other agricultural produce, cattle, except those required or ploughing the field of the member, fodder of cattle, agricultural or industrial implements or machinery, raw materials for manufacture and any finished products manufactured from such raw materials belonging to such member, past member or forming part of the estate of such deceased member, as the case may be. Amendment of Section 34. Insertion of new section 33-B. (2) Any member owning any land or other immovable property or having interest in any land or in such property, who applies to the society for a loan., shall make a declaration in the prescribed form declaring that thereby he creates in favour of the society, a charge on such land or other immovable property or his interest in any such land or property, as the case may be, to secure the loan to be granted to him by the society including the interest thereon. (3) The declaration made under sub-section (2) may be varied or cancelled by the member at any time with the consent of the society in whose favour such declaration has been made. (4) The declaration made under sub-section (2) and any variation or cancellation thereof made under sub-section (3) shall be sent by registered post by the society concerned to the Sub-registrar having jurisdiction over the area in which such land or property situates, on receipt of which the Sub-registrar shall, if it is in order, register such declaration or the variation or cancellation thereof and issue a copy thereof to the said society. Where it is not in order, he shall return it to that society without registration. The declaration or any variation or cancellation thereof shall have effect only on the date of registration. (5) No person shall transfer any property which is subject under sub-section (1) or sub-section (2) except with the previous permission in writing of the society which holds the charge. (6) Notwithstanding anything contained in any law for the time being in force, any transfer of property made in contravention of the provisions of sub-section (5) shall be void. (7) Notwithstanding anything contained in the Provincial Insolvency Act, 1920 or any corresponding law for the time being in force, the dues of a society from a member in insolvency proceedings against him shall rank in order of priority next to the dues payable by him to Government. (8) Without prejudice to the provisions of sub-section (7), the charge created under sub-section (1) or sub-section (2) shall have priority over any claim of the Government in respect of a loan granted under the Land Improvement Loans Act, 1883 or the Agriculturists Loan Act, 1884 or the Orissa State Aid to Industries Act, 1978 after the grant of the loan by the society anything contained sub-section (1) not withstanding. (9) The provisions contained in section 85 shall mutatis mutandis, apply in respect of a charge created in favour of a society under sub-section (1) or sub-section (2).” 15. In section 35 of the principal Act, in sub-section (3) the comma and the words, “other than the State or Central Government or a Local authority,” shall be deleted. 16. In section 56 of the principal Act, (i) in the marginal heading, the words “and constitution of Co-operative Education Fund” shall be deleted; (ii) in sub-section (1), for clause (b), the following clause shall be substituted, namely: Amendment of Section 56. Amendment of Section 35. 19 of 1883 12 of 1884 Orissa Act 32 of 1978. 5 of 1920 “(b) credit four per cent of such profits to the Co-operative Education Fund constituted under section 56-A.”; and (iii) for sub-section (3), the following sub-section shall be substituted namely: “(3) Notwithstanding anything contained in this section a Co-operative Society shall contribute annually to the Co-operative Education Fund constituted under section 56-A a sum as the State Government may, by notification, specify from time to time or four per cent of the net profit (earned) by the society, whichever is more: Provided that the State Government may, for reasons to be recorded in writing, by general or special order, exempt any society or class of societies from payment of such contribution”. 17. After section 56 of the principal Act, the following new section shall be inserted, namely: 56-A. (1) There shall be constituted a Co-operative Education Fund which shall vest in the State Co-operative Union and shall be administered by the said Union in the prescribed manner. (2) The Co-operative Education Fund shall consist of all contributions made by Government or by any institution or society in addition to the amounts specified in clause (b) of sub-section (1) or in sub-section (2) of section 56.” 18. After section 56 of the principal Act, the following new section shall be inserted, namely: “59-A. Notwithstanding anything contained in any law or agreement for the time being in force, a society shall not charge on account of interest on any short term loan, whether advanced before or after the commencement of the Orissa Co-operative Societies (Amendment) Act, 1983 a sum greater than that of the principal. Explanation- For the purpose of this section the expression “short term loan” shall mean a loan repayable within a period of fifteen months”. 19. In section 67 of the principal Act, in sub-section (1) for the existing proviso the following proviso shall be substituted, namely: “Provided that no such enquiry shall be held after the expiry of a period of three years from the date any at or omission referred to in this sub-section was first detected during the course of such audit, enquiry and inspection or the winding up to a society”. 20. After chapter VIII of the principal Act, the following new chapter shall be inserted, namely: Insertion of new chapter VIII-A. Amendment of Section 67. Restriction on interest. Insertion of a new section 59-A. Insertion of a new section 56-A. Co-operative Education Fund. “CHAPTER VIII-A CONSTITUTION AND POWERS OF TRIBUNAL 67-A. (1) The State Government shall constitute a Tribunal to be called the Co operative Tribunal consisting of such number of members, possessing such qualifications as may be prescribed. (2) The Tribunal constituted under sub-section (1) shall exercise such powers and perform such functions as are or may be conferred by or under the provisions of this Act. 67-B. (1) Any dispute arising in connection with election of any officer of an apex society shall be referred to the Tribunal in the manner and within the period prescribed in this behalf. (2) The tribunal may, pending the decision of the dispute, make such inter locutory orders as it may deem necessary in the interest of justice. (3) The Tribunal may call for and examine records of proceeding in which appeal lies to it, but appeal has not been filed, for the purpose of satisfying itself as to the legality or propriety of any order passed or decision made therein and if in any such case it appears to the Tribunal that any order or decision should be revised, modified or annulled, it may make such order as it thinks fit, after affording to the person likely to be affected adversely by such order, an opportunity of being heard. (4) While deciding appeals, the Tribunal may exercise all the powers conferred upon the appellate Court by Order XLI of the First Schedule of the Code of Civil Procedure, 1908. 67-C. All orders and decisions of the Tribunal shall be final and shall not be questioned in any Court of law. 21. In section 68 of the principal Act, in sub-section (1), after the words “against paid servant of the society” the words “and any dispute arise in connection with the election of any officer of an apex society” shall be inserted. 22. For section 69 of the principal Act, the following section shall be substituted, namely: “69. (1) When the dispute is between a society or its Committee and any past Committee, past officer, past agent or past servant or the nominee, heir or legal representative of any deceased Officer, deceased agent or deceased servant of the society and when the dispute relates to any act or omission on the part of either party to the dispute, the period of limitation shall be four years from the date on which such act, or omission with respect to which the dispute arose, was first detected during the course of any inspection, enquiry, audit or winding up of the society. Amendment of Section 69. Amendment of Section 68. Powers of the Tribunal. Constitution of Co operative Tribunal. 5 of 1908 (2) When the dispute relates to any sum including interest thereon, if any, due to a society by a member thereof, it may be referred within a period of four years from the date of death or cession of membership of such member.”. 23. In section 78 of the principal Act, (i) in sub-section (1), for clause (b), the following clause shall be substituted, namely; “(b) ‘land Development Bank’ means a Co-operative Land Development bank registered or deemed to be registered under this Act, and includes a Co-operative Society or a body corporate admitted as a member of the State Land Development Bank or as an agent of the Land Development Bank, and” (ii) for sub-section (2), the following sub-section shall be substituted, namely: “(2) Land Development Banks may advance loans, other than short term loans, for purposes connected with (a) improvement of land; (b) productivity of land; (c) development of agriculture; (d) objects allied to agriculture such as, (i) dairy; (ii) poultry, and (iii) fishery, and (e) such other occupation of the agriculturist as the State Government may by notification from time to time, specify.” 24. In section 109 of the principal Act, (a) in sub-section (1) (i) for clause © the following clause shall be substituted, namely; “© an order directing re-organization or amalgamation under sub-section (1) or section 14-A”; and (ii) clause (e-1) shall be deleted; (b) for sub-section (2) the following sub-section shall be substituted, namely: Amendment of Section 109. Amendment of Section 78. “(2) An appeal under sub-section (1) shall be made within sixty days from the date of pronouncement or communication of the order or decision, as the case may be, to (a) The Tribunal, if it is an order or decision specified in clauses (e), (f), (i), (j), (m), and (n); and (b) such authority as may be prescribed, if it is an order or decision specified in clauses other than those specified in clause (a)”. (c) the second proviso to sub-section (2) shall be deleted; (d) after sub-section (4), the following new sub-section shall be inserted, namely: “(5) No appeal against a decision or award requiring payment of an amount of rupees two thousand or more shall be entertained under clause(j) of sub-section (1)unless the appellant deposits fifty per cent of such amount with the appellate authority. Provided that the appellate authority may, for reasons to be recorded in writing, reduce the aforesaid amount in any case.”. 25. In section 115 of the principal Act, in sub-section (4) the words “other than the State or Central Government or a local authority” shall be deleted. 26. In section 133-A of the principal Act, (a) for clause (i), the following clause shall be substituted, namely: “(i) an order or approval to pass a resolution for winding up, amalgamation, division, compromise or transfer of assets and liabilities of the bank shall not take effect unless previous sanction therefore has been accorded in writing by the Reserve bank of India”. And (b) the proviso to clause (iii) shall be deleted. 27. (1) All proceedings relating to dispute connected with election of any Officer of an apex society and all appeals against the orders and decisions specified in clauses (e), (f), (i), (j), (m)and (n) of sub-section (1) of section 109 of the principal Act, which are pending before any authority on the date of constitution of the Tribunal under section 67-A of the principal Act shall be stand transferred to and shall be disposed of by the Tribunal in accordance with law. (2) Pending constitution of the Tribunal, all disputes and appeals specified in sub section (1) shall be entertained and disposed of by the prescribed authorities as if this Act has not come into force. Transitory provisions. Amendment of section 133-A. Amendment of section 115. ::., Sho,c title and comme ncement, A<uendmeot ofs.:ction 21'. 93 ORISSA ACT 32 OF 1992 . • TtlE ORISSA co~ OPERATIVE socrnnES (AMENDMENT) ACT, Im [Received the assent of tr.e Goverwr on tile 28rh NoYember 1992 first published i,i an extraordinary issue of the O rissa Gazette~ dated the 1st December ·1992] AN Acr FURTHER T0 Aliru.D THB ORlSSA CO-oPERATIVa 1:0ClETICl ACT. 1962. BE it enacted by the Legislature of the State of Orissa in. the Forty-third Year of the Republic of India as follows; 1. (J) This Act may be called the Orissa co.operative Societies (Amendment) Act, 1992. (2) It sb;ill be do:err.cd to have come into force on the 11th day of Sept1;mber, 1992, 2. In the Ori5sa Co-ol)i:ratiVi.• Sociclics Act, )962, in soction 28, (/) in sub-secti'- (2-a), in ciame (1), ~r tbc words "four months", the words "eight months" shall be substituted; (ii) in sub-section (3), clause (l) shall, be omitted, • Fot the Bill. see Ori.fsa GazeJte; &lraordinary, dati;d tb~ 6th Nov..'mber 1992 (No. 14%) Orba Act 2 of 1963. 98 ORlSSA ACT 23 OF 1994 nm ORISSA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT1 1994. PRB AMBill SECTIONS · L Short title and commencement 2. Amendm!!nt of &oction 6 3. Am;ndment of section 28 4. Amendment of section 28-A TABLE OF CONTENTS 5. General amendment of Orissa Act 2 of. 1963 6. Amendment of Orissa Act 28 of 1991 1, Savings ' ' ' , . . / , f. ,/ IOI \· (g) nothii:ig · in this . sUb-fi·ection emended by the Orissa Co·operative Societies · 1 (Amendment) Act, 1994 shall be construed to affect the {unctions and · ·· powers of a Conimittee constituted prior to such· amendment; ·as long as it continues in· Office,"; and (v) in sub-section (3). (a) in the opening, portion, for the word "President"· the words and co.mmas "the Preside:gt · or a.a the /:Vice~President1 if· any •11 shall 'be · inserted· ' ' ' ' i' . ' • (b) in clau&e (o), for the word ·~Committee" oc.curring in clause (ii) the r- . ..:.. words "Gene~al Body or, as tbo case m.;y be, Smaller General Body", · shall be subs0hited, .. and for th~ wor1 and full stop "expires' occurring: at the end of the proviso to the sai.d clal.fse, the word and Gemi~olon: .. expires; or'' shall be substituted; .and i, · · \ (e) after clause (o), the' following clause shall be inser{ed with effect from the 1st day of January,· 1995, namely;-· •• (p) has. more than two children: Provicled that nothing in this clause shall apply to a person who bas more then two children as o.n the l st day 9f January 1995 or, as the case may b·~, within. a period of on~ year c.f the said date, unless such person begets an 'additional child after . the said period of one year.''. A.mcndmcnt ·4, In the principal Act,- in ~ection 28·A, • after clause (ii) of sub-section (1), of scciion the folh,wing clause shall be inserte<f;·-naa1ely: : 28--A, "(iii) The Vice-President of the~ Committee of every Primary Society shall he .elected tiy, and from amongst, . the elt:eted -members of tlie Committee in the prescribed manner; Provided that where the Presid.~nt of the Committee of such a &c'iety !lected· under this sectic,n is not a woman, the office of the Vice.President of. the Comllllttee shall be reserved for women.". \ . Generii l 5. I~ the principal Act, the ex:ressions "State I.and Developmerit Bank" amenJmcnt . "Land Dev.:lopmenl Bank", "Cu·oper .. tive Land n.. velopmcnt Bank" and "Orissa of Orissa State- Co-operative Land Devdc,pment Bank",· the expressions '• State Co-open tive Act 2 of 1!163 Agrjcul tural .:nd ~ ural Devdopmrnt B:mk '', . "Co-opera! ive Agricultu ra I · and Rural Development Bank'' " CO·c•Perative Agricultural and Rural Development B. nk" and "Orissa State Co-operative Agriculfural and Rural Devel ... pment Bank" shall respectively be substituted. · A.mendment 6. In the Orissa Co-operative Societies (Am('ndment) · Act, 1991, in· .clause (c) otOri1sa Act of rection 30, after the brackets and figure- "(3)", the C(.m.ma, brackets and 28 otl991. figure ·"(4)'' shall cc inserted. - · ...;:, . .--... Savings 7. (ti Any reference to the State Land Development. Ba~k or a Land . Dcvelop,nent Ba,nk in any law or instrument for the time being in fore:! in ~e · State shall, with effect fn m the date of commencement of section 5 of this Act. be coll6trued as refer~nce to the State C~operath:e Agri~ultural and Rural Development Bank or, as the case ~av be, ~c.~opcrat1ve Agricultural and Rt.rat Development Bank within the· mcawng ·or prm1pal Act. / · . · , I (2) With eff'cct from the aforesaid date and until sucli., time · aS the names of the State Land Development Bank or the Land Developm.1~nt Banks' functioning in the State on the said date are changed into the State Co-operative A:gricultural and Rural Devdopment Bank or, ae the case may be, Co-operative Agricultural and Rural Development Ban):s, all ac~s do ne by tb.c-m or ~ortgagcs and . o!her documents ex.. cuted by -them or ,n their favour and all suits and other proceed1Jlg6 fikd by or against them shall be deemed to have been dono, .executed or filed by or ·against them as the State Co·operattvo Agricultural and Rural Development Bank or, as the case may be, Co.operative Agricultural ·and Rural Development Bank& •. I • ) . ORIS&\ Acr 1 OF 1995 . •THE ORISSA CO-OPERATIVE SOCIEMS (SECOND. AMENDMENT) ACT .. 1994 . [Received tbt.: a,sent of the Governor on the 9th Januart, 1995 first published in an extraordinary issue of the OriSJa Gazette. dated thel 1 th January 1995] AN ACT FURTHE.R TO AMEND TIIB 0RJSSA C~OPBRATIVB Socurras ACT, 1962. BE it enacted by the legislature of the State of Orissa in .the Forty-fifth Year o.f ~e Republic of.India as folio.we : Shon title.- l. This Act may be called the Qriesa. Co-operative Societies (Second Amendment) A~l~. · · ~on 2. After ~ection 14-A of the Orissa. Co-operative Societies Act, 1962, the following Orlla. Ac:1 3 0 :f4-T. ~cction shall be inserted, namely:- - 2 of. 1863. =:1 Fu°" .--1, 0 14-B. (J) (a) Subject to ~h~ p rovisions of sect!~n 123, a~d notwithstanding ,espec1 or aoytbing to the con!rary contained 1n any other prov1S1ons of tb1s Act and the Rules certain tick or Bye~laws framed. thereunder, or any other law for the time being in force. where Soci,;dca. the Registrar, for rea~ons to be recorded, is of the opinion that a Co-operative Society in which majority of the shares have been sub5cribed or liabilities. 'by way of guarantee for bortowing exceeding fifty p.;,rcentu,m of the working capital ofthe Society have been undertaken by the Stak Oovcrnmcnt, has become 6ick and there is no .po,sibility of rehabilitating it, the Registrar may, in the public interest, after consul~ing tho Stato Government and the financing -Banks, if .any, to which such Society is indebted, by notice in writing, call upon the Committee of the Society to transfer,witbin ~uch time·as m-'ly be specified therein, it6 assets and· liabilities, to any othor Society or person, or a Company, firm or body, whether incorporated or n9t, on such terms nnd conditions as may be fonnulated by him. · (b) If, within the time specified in 1he notice referred to in clause (a), the Conimittce fails .to make -the transfer directed therein, the Registrar shall, by order, published in the Gazette, make such transfer, and with effect from the date of publication of the order, the assets and liabilities of the Society shall stand s·o tran.sf erred: .... · Provided that no order under this clause shall be made, unles, tht.: Registrar ha.9 given an opportunity to the General Body, creditor..s, depositors, employees of ·the Society and any other persons concerned to ~tate their objections, or molc.e representation~, if any, within such time, from the date of receipl of the· proposed order, as mr.y be 6pecificd ·by the Registrnr in his nc·tice contilining the said order to such persons, and has · considered the objections and representations, if any, so m~. , (2) Ail order issued under sub-::ection (J) , shall, notwithstanding anything contained in this Act, the rules Gr bye-laws framed thereunder, Or in any other law or in t!n.1 contract, award or instrument for the time beiag in force, be bfoding on all members, depositors, creditors, employees of the Society and other persons concerned having any right, assets or liabilities in relation to the Sccie(J". (3) The order under sub-section (1) may provide for:-·~ (a) reduction of the interest or right which tht.: members, depositcrs, crediton, employe~ and other per~on6 concerned may have in or against the Society, to such. extent as the Registrar considers nece5 sary, bavi ng due regard to the propon ion of the. assets of the Society to it~ liabilities; ar;d (b) such incidental, c0nsc.quential and supplemental matters a.- may. in the opinion of the Regictrar, be necc~sarY to give,effect to the said tran fer, (4) Fnr the purp,se, of this ~ection, it· shnll be- compl"leJ\t for the Slate Government to give such direction~ to the Registrar, as it may d~em p1<per ;n 1he facts and circu·~ tances of every case. Exp/a11ation-For the purpo rs of this section 'Ccmpany' sJ:o.11 mran a comp2ny as defined in the Compaoies · Act, 1956". 1ofl9!6. •Por the Bill see Orissa Gazette, Extraordinary, dated the 14th December, 1994 (No; 1498). · \ 48 OR!SSA. Acr 7 .OP 1996 THE ORlSSA CO-OPERATIVE SOCIETms (AMENDMENT ACT, 19" TABLE Ofl CONTENTS PRW,mLB ' S6CTJONS J. Short title and.commencement 2. Amendment of section 2 3. Amendment of section l6 4. Amendment of section 10 5. Amendment of section 21 6. Amendment of section 27 7. Amendment of section 28 8. Amendment of section 28-A .. 9. Amendment of section 32. 10. Repeal and savings. 49 ORISSA. ACT 7 OF 1996 *THE ORISSA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 1996 [Received tl,e assrllt of the Gowm1or 0·1 the 2fal April 1996, firs/ published f11 an t'Xfraordinary issue of the Orissa Gazette, datrd thr 22nd April 1996} AN ACT FURTHER TO A~IEND THF ORISSA CO·OPBRATIVll SOCJBT!BS ACT, 1962 Be it enacted by the L"!.gislature of the Stat..: of Orissa in the Forty-~venth ·Year or the Repablic of India as foJlows : Shor~ llt}c t. (J) This Act may be called the Orissa Co-o 1,erative S:,cioties (Amendment) aCld com:men- Act, 1996. caumrt, (2) It shall be deemoo to have come into ro~e on the '2nd February, 1996. i A.mondmcnl 2. lo the Orissa Co-operative Societies Act, 1962 (hereinafter refcrr<:d to as the Odssa Actl of soction 2. principal Act), in section 2.- ' · eU963. AmeDdme:nt or section 16 Amandmcot of scctio o. 20. (i) for clause (.t), the following clause shall be substilukd, namely: '(n) '• Apex Society" means a Society having the whole of the State of Oris&a · as. its area of oper1ttlon, and declared as such by the Registrar>; and (ii) for clause (b-2), the folI'.>wing cle.u<;c shs1ll b:: substitutej,.namel}' : 'lb-2) "Central Society" means a Sociely declared as such by the Rcgi.strat'. 3. In the principal Act, in section 16, (i) in sub-section (1), tbc proviso to clause (b) shall be omitted; and (ii) afler 6ub-section (1), the following sub-section shall be inserted, namely: ''(1-a) Notwithstanding anything to t]le contrary coptained in any other provi. sions of this Act, and the rules affiliated or bye-faws, framed thereunder the member~ of the Prjmary Societies to a Central Society or an Apex society shall be deemed to be the members of their -respective Central Society or, as the case may be, the Apex. Society or both, "ith effect from the date of commencement of Lhe Oris~a Co-eperative Societies (Amendment) Act, 1996". 4. InJthe principal Act, in seclion 20, clause (a) of the proviso sha·u be omitted. Amcnrlmct1t ,.... 5. In the principal Act, in Section 21, in the provfao to of section 21. clause (a), the following clause shall be substituted, namely : sub-section {I), for "(a) where the member is a sociely, through ils (i) President ; or (ii) Vice-President, in case such member society docs not have a President i or having a President, such President is unable to exercise the vote; or · (Iii) representative, in case such member ,ociety does noi: haven Preaident or Vice·President or having a President. and Vicc-Presic!cnt none of them is able to exercise the vote" ;. · ' ,4.tt1eu4mt:.o.t . 6. In the principal Act, in. the first proviw to section 27, , the words "aad ofsectioo. 2?--.~ending the bye-laws of the Society'' occurrjng at 1he end shaU-be OIT)ittcd. Amondmcnl of section 28. ,t i• 7- In the pincipal Act,: in section 2S,- ·' (i} for sub-seclion (1-a), (the following sub-section shall be' si.Jb.itituted, namely;-. "(1-a) tliere shall be a. President aud u Vic.e-Prisiden1· ·of the Committee who shall have sUch powen, duties ~d rc:; ponsibil!tios as may-~· p~cribed" ; ... ' ~. •• -., f . 50 (ii) in sub-section (2), (<7) in cJause (a), fortbe opening line ancf slil:--clause (i), the following shall be substitu1ca, namely: "The CommiH:ei:: or a Society shall, e:r.cluding the mcmtcrs dee~ed or nomimue<l as mombers under ~ull-section (3-b) of .section 28 and :;ub scction (l) of section 31, consist of, (i) Twenty-one members in tl:e case of c10 Apex Society and fifteen in the . caso of a Central Society including lhe Presi<.!ent and t~ Yicc Presidenr•· ; and (b) aft~r cl~usc (e), the following clarn;es shell be in scrted, na~e\y: "(e-l) in the case of:> Ccntr.!1 Socie1y, t~rce members each sh:ill · be f:rom., the Scheduled Castes and Scheduled Tnbcs, four from Other Backward Ch1sses ·:,nd five (roru oth·r cate;;orii::s of members, so holifever that, among each of the said Scheduled Casie~, Schedu1ed Tribe, and Other Back· ward Classes of member!;, !here ~hall be ,-ne woman and among the other categories, there sh!\II be two women . le-2) tn the case of an Apex Socict), four members shall be fr9m the Schcdulctl Castes, five from the Sd1cdtlled Tribes and si:,. each frotn the Other Backward Classes and other categories of members, so however that there shall be one woman each from the iaid Scheduled Castes aud Scheduled Tribes, two women among the Other Backward CI'.l.sses and three Women among the other categorics·cif members", : ( c) for clauses ff) and { g), the following clauses sha \ I respec tivcly be substitukd, namely: ''(fl Notwithst:1nding anything contained in this sub-seclion, (i) in the event of the seflts in the Committee reserved for Women, Schedulo:Jd CB6tc~, Scheduled Tribes and Other Backward Classes categorks of members remaining unfilled in any election of a Primary, Central or APex Society, the Comm.iuee of the Society shall co-operatjve the r~quired number of s11ch ca·tegorieii vf mernbcrs:from amongst the members of' the Society to fill up such -seats, and ror- the purpose of making 'such co.option, the unfilled seats reserved for the said categories shall not invalidate the ·constitution or functioning of the Co mmittee, if otherwise, it would be having a quorum; (ii) the term of ()fficc of every such co-opted member shall be co-terminus with the other !'Jlembers of the Comn,ittc.c; (iii) iR the event of any seat in the Committee rcGervcd for Women, Scheduled castes, Scheduled Tribe1 and Other Backm;rd Classes categories cf.member's remaining vacant for non-availability of required number of such catego ries of members in the membership of a Society for the said Purpose or co-oPtion, any vacancy as a consequence thereof shall not invalidate the constitution or functioning of th.e Committee, provided there is a quorum. (g) (i) Notwithstanding anything lo the contr~.ry contained in this Act, rules and byc-la~s. the Committee of every Central Society and Apex Society existing immediately before the date of comme11 cement of the Orissa Co-opcr alive Socie.tics (Amendment) Act,- 1996 shall stand dissolved with effect froD1 the -said date, and the members including the President and the Vice-President of every such Committee shall be deemed tQ have vacated their offices on that dale: · Providc.d tbat nothing in tbis clause shall be const.rned to aftect tl~e functions and powers of the Committee of a Primary SocietY constituted before the commencement of the Orissa Co-operative Societies (Amendment) Act, 1996, as long as it continues in Office; (ii) Upon such dissolution the manogement of the society shall vest in tltt:: Registrar, and the Registrar shall nomioate a Committee (rci m amongit. the members of the Society, .!s far as practicable; representing the Scheduled ·castes, Sche:duted Tribes, Otber Backw ard Classes and Women. to iii.an.age ihe · affairs of the Society -till the Committee is con slituted -ii;i accordance with the provisions of this Act as amended by- the Oi;is'ffl. Ca.operative Societies (Amendment) Act, )996; · · · · ·· ·· .. .. ·) . ) Amendment of section 32. 51 3 (iii) Every Society, the Comll!-itt~ Qf w~c]:i. St~~s di1>solved under su b·clause (9, shall amend ih bye-laws, 35 may be ·necessary, so as to bring them m conformity '?lith te.~ prov~~iop.s ~f this ~~t ~-~ 13~~-~~e.d ,tl;i;he Ori~ Co-operatiV!I Societies (Amendment) Act, 1996, and recoa stitute the Commi ttee within s.ix months from the date ,its Committee so stood dissolved; Pd . .. (il') In the event of Society failing to so amend its bye-laws and r~nstitute the Committee within the period specified in sub-clause (iii), the Registrar shall niake such amendment and reconstitute the Committee within six· months following the date of e.xpiry of the period so specified,". 8. In the principal-Act, in section 28-A, in sub-section (I), (a) for cJause (i), the foUowing dame shall be substituted, namely : "·I.· "(i) The President of the Committeo of ever}' Society shaU be indirectly elected, in the manner · prescribed,- by :ind from among the members of the Committee.'' ; and (b) in clause (iii), for the words "The Vice-President of the Committee of every Primary Society", the words '"The Vici::~Prcsideut oftbc Committee'' shall be substituted. 9. Jn the principal Act, in sc:ction 32, after sub-section (6), the following sub-section shall be in~rted, namely: "(7) Notwithstanding anything contained in this section, if, in the opinion of the Registrer, the Committee of any Scciety is acting in a manner prejudicial to the interest of the Society or itfi members, or bas committed such serious irregularities or illegality that further continuance of the Committee would be detrimental to the ioterest of the Society, the Registrar may, at any time before or, as the case may be, after issue of a notice under sub-section (1), suspend the Committee, and make such arrangements as he thinks proper for the ma·nagement of the affairs of the Society during the period of suspension of the Committee: Provided that if the Committee w suspended is reinstated the period of suspension shaJI count towards its term". Rceeal 811d lU. (1) The Orissa Co-operative Societies (Amendment) OrcHna.!lce, 1996 is hereby Ori~ sa'1Di!I. tepeelod. Ordinanec :;:.-;. . No, I of (2) Notwi.tbstanding such repeal, anything done or any actfon taken 1mckr the t996. principal Act, as a.mended by the said Ordinance, shall be deemed to be.ve been done or taken under the principal Act ae amended by this Act . 13 ORISSA Acr 4 OF 1997 THE ORISSA CO·OPERATIVE SOCIETIES (AMENDMENT) ACT, 1997 . ,.. - ' SBCTIONS: 1. Sbort title and commcncemenL z. Amendment of Section 16 3. Amendment of Sectioa 19 4. Amendmont of Section 28 5. Amendment of Section 28·A T~LE OF CONTENTS I 14 ORISSA ACT 4 OF 1997 THE ORISSA CO-OPERATIVE SOCIETIES (AMENDMENT-) ACT, 1997 l Reeeived tlte assent aj the Governor on the 15th May 1997, first pubfisl,ed in an e:xtraordiriar1 · . issue of the Orissa Gazette, dared the 19th May 1997] Short titlo aud commence ment. Amcndmeni ohcctlon· 16, AN Acr .. FUR. THRR TO AJ.mND nm ORISSA CO-O'[>ER.A TIVE SOctE!TJES ACC, 1962. BE it ea acted by the Lcgisl ature or the State of O riss a in the F ~r ty-ci ghth Y eat of the Republic of India as follows:- · 1. (J) This Act may be called the Oris5a Co-operative Societies {Amendment) Act. 1997. · (2) It shall come into force on tlle date of its -pubficaticn iil the Orissa Gazette. 2. In the Orissa Co-operative Societies Act, 1962 {hereinafter referred to a& Ori5311. Ad the principal ActJ,iJ;L Section 16, for sub-section (1-a), the following sub-sections of 1963. shall be substituted. uamely: ''{1-a) Notwithstanding a11Yihiog to lhe contrary contained io aoy either provisions of this Act, and the ru}cs or bye-laws. framed thereunder, the roemben oftb.e Committee. includiag the co-opted members, if any, but exclUdlog the members. nominated or appointed under clause (ii). of sub-section (1-b) of section 28, sub-Section (l) of section 31 and sub section (1) of section 32. of the Primary Societie6 affiliated to the Central Society or an Apex Society, shall be deemed to be the members of their respective Centtal Society or, as the case may be, the Apex Society or both, with· effect from the date of commencement cf the Orissa Co-operative · Societies (Amendment) Act, 1997 so long as they continue as member of tha CoDJmittees of Primary Societies. (l~b) (i) The members of the Primary Societies who were deemed .to be the members of their respective Central Society or, as the case may be, tht Apex Society or both, prior to the dale of the commencement of the Ortssa Co-operntive Societies (Amendment) Act, l 997, shall be deemed to have ceased to be members of such societies with effect from the da te of s11eh commencement. (ii) Ui;on such cessation: (a) the central or apex society, as the ecst may be, shall rdund the share capital conlribution made and -membership fef.s paid, if any, to the 5llid m·embers. (b) the member shall liquidate lhe liabilities jncurred. if any, in the capacity as deemed mewber of the Central Society or as the case may be, A..pex Society in accordance with tbe schedule of repayments determined or to be determined by the said sociely. ". Atnendmern 3. lD the principal Act, e.ftet section 19. the fol1owin g pro\'iSo ·shall be inserted, of section namely: ,: · · ; 19. AfJIClldmeDt of sr.ctioo · 28, Amcndmont of section 2~-A. '"Provided that the provisions of this rnction sball net apply to the members of the Committee of the Primary Societies who shall be deemed to be members of tbt Central Society or as the case may be, the Apex Society in accordance with the provisions of sub-seciion (1-a} l>f Section J6.''. 4. In the principal Act, in section · 28, in sub-clause (iv) of clause {g) of sub section (2), for the words '"six montb!:'1 • the words ''ten months" sba11 \)e aubstit utcd. . 5. lo the pcincipal Act, in section 28-A, in clause (ii} of sub-section (1), after the words '"the prescribed manocr", the commas end the words, ''by ancl from among the "General ;Body of meniben; of the Society qualified for the purpose," shall be Inserted. ~·: 18 OR~~,\. A.er ·7 OF.- 1997: . '.\ ~ .Q:l;IISSA C.:O-O~AT,~. SQCIE'f.(ES ,(:S.ECONQ AMENDMENT.) · -"" , ACf,·/~996-, ·,:-.; · .· . . [ R~cejv~d:1~e, nssent of the Preside/II. on the B(h July 1997, firsl.JJ!fblished in 011 extraordinary issUe . -of.t h~ O r iS6a.G~z.~ttp. doted the 23rd July)997 ] .. AN ACT FURTHJ!R lfO AMl!ND THE QR1ssA· 1.Co-OPERATIVJl." SOCIETIES ACT, 1962, L'," Bll it enacted by t~e- Ugis1ature of the Sta.~e of Orissa fo th~ Forty-seventh Year oftheRepublicofJndiaas·foJlows:-· .. ·- '··· ·-.--··· ··· .,. • ." , • ; • ' • ' I ~ I 1 • Short tiuo 1. :(1) This Act may be called the. O~issa ~c;,-operMive Socie!ies (Second Amendment) and com- Act; 1~-96. - · · ··::. , .. / - ... :•·. , , · . DlCDCelJlent. Amendment of lecl1on 14-B. (2) It shall. come i~to force on ~1:ie date ol .its publication i:11 1he 0rissa Gazette. · · l. ID the Orissa C~operative Socie1ies Act, 1 962, in section 14-B, ,(a) in.sub-~ection ( I),-:- , (IJ : for ctause "( a), th~. (01Iowiµg·,c10;use -.~hall' be: substituted, namely: ''(a). Subject - to the .-provis~ns· of ·section-, l23, and notwithstandin& anything to the. contrary contained 1n any other provisions of this Act and the Rules or B~laws framed thereunder, or any other Jaw, for the time bein& in force, where the Registrar, for reasons to be recorded, is of the opinion thaJ a Co-oper a~iye Society in which· majority of th~ shares have been subscribed or hab1ltt1es by way of gu<1rantee for borrowmg exceedi.qg fifty percentwn of the workin8 capjtal of the Sooiety · have been undertaken by t1ie State Government; (i) baS become sick aDd ·it is not possible to YehabHitate · it or run it in a viable manner ; or .. ; (ii) being .in p~oce9sing, man1:1facturing or ?ther indu~trial sector, has .its processmg, man afacturmg or o~her units . lymg either incomplete ror· w~ot of reqmred funds for complettn8 th08e, or idle, or under utilised, for want of working capital for running it, or for any other reasons ; or · (ill): being in a lllarketin,g, trading commercial or a~y other sector, bas , , ceased to undertake necess,a ry operations. or cannot undertake such operations in a viable manner; and it i3 necessary, in the public interest, ,to transfer. the as~ets and liabilities of the said Society, to any other Society or person, or a company, .firm or body, whether incorporated or not, the Registrar may. after consulti~ the Financin8 Banks and other institutions to which such Society is indebted, and the State Government, on the choice of a transferee, nature of transfer, and other incidental, consequential and 8upplemental matters, ~y ~otice in Wf?CinS, call upon the C ommittce of the Society to transfer, mtbm such hme, as may be specified therein its assets and liabilities to itny other Society or person, or a company, firm or body, whether incorporated or not, on such terms and conditions a's may be formulated by the Registrar ~ •For the Bill see Qr/ssa Gazette, Eiuraordi nary, dated the 27th June J996 ( No. 6S7) Oris9a Act 1 2 of 1963. 19 Provided that no such· consultation shall be made without determining the value or the a;:;sete and liabilities of the Socie1y concerned bY a valuer to be appointed, . and t& rollgh a procedure fo be adopted with the preYious approval of the Government." (ii) afte~ clause (b), the following clause shall be added, namely: "(c) The Registrar ·shall, within st>ch time and in such manner as .-:.r i. --~ may be considerad reasonable by him, in the facts and circumstances : ·.::~ .,. of the transfer under c)aU!ie (b) settle the claims, if any, of the lil.embers, depositors, creditors, employees of the Society and other:.'.,: J persons concerned having any right, assets or liabilities in relation to the Society in accordance with law, so ~oweveJ ,that '.n.o such. right,-,'-, .. ! asset or liability of any of th.e· persons ·aforesajd,-· existing, as on the ,., .. ,-: date of the transfer, is increased, Md make payments due, if any, under the bettiement, to the Soc,iety or any such persons,". :- ,;, .. ; ,,:·,i,·,~. ,, (b) for sub-section (4), the foJlowing sub-section shall be rnbstituted. 1 • ,. namely: ''(4) For the purpose of this section at any stage of proceeding thereunder, it shall be competent for the .State Government· to give: such directions to the Registrar, as it may deem proper in the fact6 and circumstances of every case, and such directive shall be binding on the Registrar''. (c) aPer- sub-section l4). the following sub-~ection shall be added, namely : .. (5) Notwitb1tanding anything contained in the Transfer of Property Act, 1882 or the Registration Act, 1908, an order issued 4 of 18s2 under this section shall be sufficient conveyance to tra.n6fer the assets 16 of 1908. and liabilities of the society.". (d) For the Explanation, the.fallowing Explanation ~hall be substituted" namely: "Explana1ion:-For the purposes of ihie sectioo, (i) •company' shall moan a company as defined in the companies 1 or 19S6. Act.-19S6; (ii) 'sickness'· in respect: of a Society shall ordinarily mean non~ viability, and may bear, such otbeF meaning as assigned to it under Sick Industrial .Companies (Special Provisions) Act, 198S or any 1 of i,y, other law in force ; and . (iii) 'Trans.fer• shall include transfer byway of mana&:ment contracts, lease or any other mode ... 24 ORI$A Acr 9 OF 1997 THE ORISSA CO-OPERATIVE SOCIETIES (SECOND AMENDMENT) ACT; 1997 PREAMBLE 'SECTIONS ' ' 1. Short title and commencement 2. Amendment of section 28 3. Repeal and Savings TABLE OF CONTENTS 25 · 0RiSSA Acr 9 OF 199'7 . ~ ' .' • TH:E ORISSA CO·OPEEATJVE SOCJE11ES (SECOND: AMENDMENT) ACT, 1997 ~ [ Received the asse11t! of lhe Gtn·er1,or. 011 1/Je 17th Oc1ober 1997,firJt publisl:ed in m1 extraordinary' ;sliu6 • · o ! rlre OriHa Ga?.e1tc, doled tire 20th October 1997] .ihort tftlo and commence· ment. AN ACT FURTHER 'IO AME?l!:~TBB Oll1SSA Co-OPE'RATIVE soc1uJFs Acr, 1962. BE it enacted by the Le,gisla1me of the State- of Orissa in the Forty-eighth Yearr of the Republic ofJndia as follow~: ]. (1) This Act may be celled U,e Oris~a Co-opera1i,·c Societies (Seccnd Amend ment) Act, 1997. (2) It 6hall be deemed to have come into force on the 22nd day of Augt:6t,.1997. Am,ndmmt 2. In tJ-.e Grissa Co·o:Pt:ra tive Sccitties Act, J 9f'.£, in st:c1ic,n 28, in sub-cla\iSt; (iv) orissa Acl 2, of section of clause (g) of rn l;-uction (2), for the words •'ten Jii0D1hs", the words "nineteen of 1963. 23. months" shall tesubstiluted. · · Repeal and Savin!ls, · 3. (/) The Crissa Co·operalivc Societies (Amendn.ent) OrdiD&nce, 1997 is hereby Orissa repealed. Ordina.DCI No.3or (2) NotViitbstandil!g sucb 1epeal, an)'thii;g done or aliy action takt:n under the 1997. Principal Act, .ib amended by 11e st1id Osdin~nc.e, shaJI be deemed to have been done or taken under lhe principaJ Act as a:mend ed by 'this-Act.. . · .•For the BilJ 5ec OriS:sa GGutte, 1::,,ua orc!irery, c;:lcc th: l~t h S fJlttmf:er J991 (No. 1166) . • "\ rl9 \ " QRJSSA .Aa .. 6 OP 1998 • nm oRI&S~· <;Q;c;>P-~A:pv~ so~~ (AJ\':I~ME~. ACT, 19gs l11&elVid th, assent of the Governor on the 21h Ap.n·J 1998.jirst pubfiJhed ln an Extraordtnar, Issue of the Orisaa Gazette. dated rhe 17tlz April 1998 1 ' - '" -~ -- I - •.-;-- • ~ • -, ·~ - ... All! As:r ru:a:mea TO AMiND. rnii.OR~·co~ap-iRATIVli Soc1ETIES Acr. IP62. Bn it enacted by the Legislature of the State of Qrjsaa in the Forty-nintb Year of the Republic ofinclia as follows : .. ..., nert title 1. (1) Tb.ii Act may be called the Oris,a Co-operative Socictiea (Amendment) &11.d Comm- Act.J5198, ~~: · · · -· (Z) ·xt ~ ~ deemed to have com~ into fo~ce on the 19:;h · day of February, . : 1991. . . NM.DdmeDt or Soclioll aa. • IPnl ... 11\'ill;p, I - • ~ 2. In t be Orissa Co-operative Societies Act, I 962. in sub-clause. (Iv) of ~la use (g) . ~rlssa Act chub-section (2) of S..:ction 28, for the words "nineteen moo.tlis", t11e··words ·· 20£ J96J. 11tbirt)" months" shall be substituted. 3. (I) The Oris:iill Co-operative Societiea (Amendment) Ordinance, 1998 II Orlm Ordl'• . hereb)' repealed, nance No .. l Ofl~B. (2) Not.withstanding such repeal, anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the principal Act as amended by this Act, • For tb, Bill, si:o Ortssa Gaz:rl/t lixtmordiDary. dated the J 71b Man:h,, 1998 (No. 293) Shorttitle end commence• ni•nt· Amendment of section e. A.meodmenl 0 f ssedJ OIi 28. 29 ORISSA ACT 10 OF 2001 * THE ORISSA co~OPERATIVE SOCIETIES (AMENDMENT) , ACT, 2001 [Received the assent of the Governor on the 27th August 2001, first published an extraordinary issue of the Orissa Ga'2!ette, dated the 30th August, 2001 No. 1581)] AN ACT FURTHER TO. AMEND THE ORI SSA CO-OPERATIVE. SOCIETIES ACT, 1962. B~ it enacted by. the Legislature of the State of Orissa In the Fifty .. second Year of the Republic of India as follows: 1. (1) This Act may be celled the Qrissa Co-operative Societies (Amend ment) Act, 2001. (2) It shall be deemed to have come Into force on the third day of July, 2001. 2. In sect ion 6 of the Or iss a co .. op era tive Sc cleti es Act, 1962 (herein-; Oritaa Act after referred to as the principal Act), in cleuse (b) of sub-section (2),- 2oll863. (a) for sub .. clause (I) excluding the provisos and the Explanation thereto, the following sub-clause shall be-substituted, namely: "(i) a Primary Society' the number of individuals joining in the application shall not be Jess than fiftY .. one; except in the ·case of a SocletY the object of which is housing where such-minimum number shall be-fifteen, so however that, in either case, such minimum number of individuals shall include three members from the Scheduled Castes including one women, three'from Scheduled Tribes including one woman, four from Other Backward Classes including one. woman and five from other categories of members lncludlng two wornen: "; . and (b) for the third proviso to' sub.aclause (i), the following proviso Shall be substituted, namelY:- · "Provided also that in the event of non .. avallablli1Y of the minimum ·number of indi.vlduls from the Scheduled Castes, the Scheduled Tribes; Other Backward Classes or women so required for registration, the Registrar may exempt the proposed Society from the requirement of auch cetegory of i'1dividuals." 3. In section 28 of the principal Act, In sub-section (2), (/) in cJause (b), the following proviso shall be inserted before the Explanation thereto, namely: "Provided that the offices of the President and Vice-President shall be reserved for the Scheduled Tribes."; (//) for clauses (c) and (d),the following c 1ause shall be substiuted, namelY: "(c) In the case of a Primary Society other than Large-sized AdiVaBI Multipurpose Co-operative Society, three members each shall be from ttie Scheduled Castes arid the Scheduled Tribes, four from Other Backward -Classes and· five from other ·categories of members, so however that, among e,ach of the said Scheduled castes, Scheduled Tribes i3nd Other Backwerd· Classes of members, there shall be one woman and among the other categories, there shall be two women."; * For the Bill, sea Olissa Gazetto, .. Extraordinary dated the 1st August, 2001 (No. 1430) - . ' .. - ~ . - ,.\ ...;:.: ...... ~: : ..:. -~ (/i/1 clause (c) shall be omitted, (iv) in clause (f), 30 (a) for sub- clause (i), the fol lowing sub.,clause shall be substitut,ed namely: ''(/) in the event of the seats in the Committee reserved for women, Scheduled castes, Scheduled Tribes and Other Backward Classes remaining unfilled in any election of a Primary, central or APex Society, the Committee of the Society shall co-opts. the required number of such categories of members from among the members of the Society or, where the required number of such categories of members is not available for such co .. aptlon, the Committee shall co-opts, the required number of members from amongst the members of the Society belonging to any category to fill up such seats, and for the purpose of making such co-option, the vacancies in the unfilled seats reserved for the said categories shall not invalidate the constitution or func1ioning of the Committee, if otherwise it, would be having a quorum;"; and (b) sub .. clause (iii) shall be omi'tted; and (vJ for clause {g), the following clause shall be substituted, namely: "(g) (/) Notwithstanding anything to the contrary contained In this Act, rules and bye-laws, the Committee (which shall include a preliminary Committee) of every Prlma rv Societv, Central Society and APex SocietY existing imme-~fiately before the date· of commencement of the Orissa co .. aperative Societies '(Amendment) Act, 2001 shall stand dissolved with effect from the said date and the members includin9 the President and the Vice President of every such committee shall be deemed to hava vacated their offices on that date, and where, on the d~te of such commencement, the management of anY such Societv continues to vest in the Registrar, the proceedings or actions taken, if anY, for constitution of the Committee thereof shall stand cancelled: (//) the management of every Society, the committee of which is so dlssolved or which so continues to vest in the Registrar, shall vest or, as the case may be, shall so continue to vest in the Registrar, and the Registrar or a Committee nominated bY him from amongst the members of ttla Society, as far as Practicable represen .. tln9 the Soheduled Castes, Scheduled Tribes, Other Backward Classes and women, &hall manage the affairs of the Society till the Committee. Is constituted in accordance with the provisions of this Act as amended by the Orlssa Co·mPeratlve Societies (Amendment) Act, 20011 Repool end savings. 3t f/1/) every Society referred to i!l .sub-clause (Ii) shall amend Its bye;.I aws, as maY ba necessary, so as to bring them In contormltv with the provisions of tills Act as amended · bY the· orlasa Co.:opeiatlve Societies (Amendment) Act, 20::11 <!nd reconstitute the Committee within six months from th'e data of commencement of the said ActJ and . (IV) in the event of enY 1Soclety falllng to so amend Its bye-laws and reconstltute the Committee within the period specified in sub-clause (Ill). the Registrar shall make such amendment and reconstitute the Committee within sl,a months following the date of expirv of thEt period so specified.". . -.. ·-~ 4. (1) The Orlssa co .. operatlve Societies (Amendment) 01dlnance, 2001 Orino le herebY repealed. ~ Oidinano, '"" No,lof (2) Notwithstanding such repeals anything done or any action taken 200\• under the prlnclpal Act, as amended bV the said Ordinance, Shall be deemed to have been done or taken under tha prlnclpal Act, as amended bY lhls Act. 119 ORISSA ACT 11 OF 2002 THE OR1SSA CO•DPERAtlVE SOCIETIES (AM&NDMENT) ACI'; 2002 · · TABLB OF CONTENTS SBCilONS 1. Short titlo and comme[lcement 2. Amendment of secHon 28 3. Amendment of sectlon 29 4. Amondment of section 32 5. Amendment of section 116 6. Repeal and SavinpJ ' .. , . . . . . . ~ - .. s hott tltli, . andcomme ncemenL Amendment of section 2:8. Amendment Of secUon 29. Amendment of ,~tton 32. · 121 . ORISSA ACT 11 OF 200~ •THE ORlsSA CO-OPERATIVE SOClETlES (AMENDMENT) ACT, 2002 [ Rcc.eived the assenf of the .-Governor on. the· 26th O~tober 200~, first pub1ished in an ex traord1na ry issue of the Or, ssa Gazelle, o ate d the 28 th October, 2002 ( No. 1928 ): AN Acr FURTHER TO AMaND THB OR.ISSA Co-OPBRATIVB SOCIBTIBS ACT, l962. BE it enacted by the Legislature of the State of Orhsa. in the Firty-third Year-of the Republic of India as follows : 1, (J) This Act may be called the Orissa Co-operative Societies (Amendment) Act, 2002. (2) It shall be deemed to have come into force on the 29th June. 2002. z. In tho Orissa co-operative Societies Act, 1962 (hereinafter referred to as the principal Act).insection28,- · • (i) in· clause (ii) of sub-section (I ~b), after the words and comma- 0 n.ffairs of the society," and before the words "and constitute'', the words and comma ua11d if necessary, take all or any policy decMoo including admission of members in relation to foe society'• shall bo inserted ; (ii) in sub-seetion (J-c), arter the words and comma '•affairs of. the society", a ad before the words ••for a perioC:", w berever they occur, the oommas and words '"and if necessary. take all or any policy decision including admissi9n of members in relation .to the society,'' s.hall be inserted ; and (Iii) in clause (g) ofsub-sectioo1 (2), (a) for sub-clause (it), tb.e following sub-clause shall be substituted, namely: .~(ii) the management of every society, the Committee of which is so dissolved or whicb so continues to· vest in the Registrar, shall vest or, as the case may be, s.b,all so continue to vest in the Registrar, and the ~egistrar or a ~ommittee nominated, by hi~ from. amongst the:. memoers of the society, or a member society affihated to 1t or a society . affiliated to sucb membeJ society, as far as practicable representing the Scheduled Qi.stcs, Scheduled Tribes, Other Backward ClasseS and Women, shall manage the affairs of thcf society and take atl or any policy decision iacludin.q; admis!,.fon of members in relation to thes?~ietytill t~e Committee is.· constituted in accordance with the provisions of this Act;" ; and (b) in sub-clause (Iv). for the words "six moaths"the words "eighteen months" shall be substituted. · . J; In section 29 of the principal Act, in sub-section (2), after clau~e (q), the following clause shall be inserted, namely: ••(q.J) admission of members to the society when the Committee of the society is sus.peuded under sub-section (7) of Section 32; and'". 4. In .snb-s.ection (1) of section 32 of the principal Act, after the word:t ~·affairs of the ~ociety". and before the words •1for a period'' the commas and · words .. and if neces~ry, take all or any policy decision including adl'.DISsfon of members in relation to the society," shall be inserted, "'For the Bill, see OrisJa Gazette, Extraordinary da1ed the 27th September, 2002 (No. 1670). Otb.siAr: t2 of !963. · .·.- •,~.- . -~ ,·.·.· . . . -- -:.,• - - .; Amcmdment or SCCCiOD 116. Repeal and la'fllllll• 122 5. In aub-seotioo (3) of sc,c,Uon 116 o f the pdnclpal Act, a proviso 11hall be, inserted, namely: "Proyfded that where any member of tho conc:cmed Society intends to inst1'uto prosec11tioo against,- · (I') the .Registrar, he shall obtain prior approval of tbc State Oovornmcnt. aad "(ii) any officer subordinate to the.Registrar, he shall obtain prior appro val of the Registrar.~ 6. (1) Tbe Orissa Co-op~ativc Societies (Amendment) Ordinance, 2002. is hereby repealed. (2) N otwithstading such repeal anything done or any action taken under the prfnt'ipal Act, as amended by the said Ordinance shall be deemed to have been done or taken under the principal Act us amended by tb111 Aot. • Orlua Ordi nanee No. I Of %002. 518 ORISSA ACT 17 OF 2003 THE ORISSA CO-OPERATIVE SOClETIES (AMENDMEN T) ACT, 2003 TABLE OF CONTENTS PREAMBLE: SECTIONS: 1 . Short title and commencement 2. Amendment of section 28 3. Repeal and savings 519 *THE ORISSA CO-OPERATIVE ·soCIETIES (AMENDMENT) ACT, 2003 {ORIS SA ACT 17 OF -2003}° · [Received the assent of the Governor on the Slh December 2003, first published in an extraordinary issue of the Orissa Gazette, date d the 6th December 2003 { No. 1858)] AN ACT FURTHER TO AMEND THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962. Short title and commence ment. Amendment of section 28. Repeal arid savings. BE it enacted by the Legislature of the State of Orissa in lhe Fifty-fourth Year of the Republic of India as follows: 1. ( 1) This Act may be called the Orissa Co-operative ,societies (Amendment) Act, 2003. (2) It shall be deemed to have come into force on the 2nd July, 2003. 2. In the Orissa Co-operative Societies Act, 1962, in section 28, in sub clause (iv) of clause (g) of sub-section (2), for the words "eighteen montns", the . ' . words "thirty-six monltlS" shall be substituted. Orissa Ai::t 2 of 1963. 3. (1) The Orissa Co-operativE. Societies {Amendment} Ordinance, 2003 is Orissa Ordi hereby repealed. (2) Notwithstanding such repea! anything done or any action tak.en under the principal Act, as amended by the said Ordinance, shall be deemed to have been done or \a ken under the principal Act as amended by thi s ~et. nance No.2 of 2003. "For lhe Bill, see Orissa Gazette. Exlraordinary Da!ed !he 27th October. 2003 (No. 1632), 47 ORISSA ACT 11 OF.2004 THE ORl~SA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2004 TABLE OF CONTENTS PREAMBLE SECTIONS 1. Short title. 2. Amendment of Section 16. 3. Amendment of Section 28. 4. Amendment of Section 28-B. 5. Amendment of Section 29. 6. Amendment. of Section 31. 7. Amendment of Section 62. 8. Amendment of Section 68. 9. Amendment of Section 102. 10.· Amendment of Section 103. 11. Amendment of Section· 106. 12. Amendment of Section 108. 13. Amendment of Section 109. ·, 14. Insertion of new Section 112-A. 15. Amendment of Section 115. 16. Amendment of Section 116. . . 17. Amendment of Section 117. 18. Amendment of Schedule-I. . . 19. Amendment of Section 19 of the Orissa Act 28 of 1991 .. 20. Amendment of Section 27 of the Amendment Act. 21. Amendment of Sections 28, 45 and 49 of the Amendment Act. 49 ORISSAACT 11 OF 2004 *THE ORISSA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2004 [ Received the assent of the Governor on the 2oth December, 2004, first published in an Extraordinary issue of the Orissa Gazette dated the 27th December, 2004 (No. 1832)] AN ACT FURTHER TO AMEND THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962. Snon tiUe .. Amendment of Section 16. Amendment of Section 28. Be it enacted by the Legislature of the Stale~( Orissa rn the Fifty-fifth Year of !he Republic of India as follows : 1 .. This Act may be called the (?rissa Go-operative Societies (Amendmen\)Act, 2004. 2. In the Orissa Co-operative societies Act, 1962 (hereinafter referred to as the principal Act), after the second proviso to clause (a) of sub-section (1) of Section 16, the following proviso shall be inserted, namely: "Provided also that nothing in this clause shall debar !he Co-operative Societies to admit the Self-Help Groups as nomina! member with such conditions, which the State Government may, by order, specify from time lo time." 3. In Section 28 of the principal Act, in sub-section (2), (i) For clauses (c), (e-~} and (e-2), the following clauses shall be substituted, respectively, namely: "(c) In the case of a primary Society other than Large-sized Adivasi Multipurpose Co-operative Societies, two members each shall be from the Scheduled Castes and the Scheduled Tribes, three from Other Backward Classes including Socially and Educationally Backward Classes and two from Women members, so that among each of the said Scheduled Castes, Scheduled Tribes . and Other Backward Classes including Socia lly and Educationally Backward Classes of members there shall be one woman. (d) ln the case of a CentraI·soc\ety, tvilo members each shall be from the Scheduled Castes and the Scheduled Tribes, three from Other Backward Classes including Socially and Educationally Backward Classes and two from Women members, so that among each of the said Scheduled Castes, Scheduled Tribes and Other Backward Classes including Socially and Edu~alionally Backward Classes of members; there shall be one woman. (e) In the case of a n Apex. Society, three members each shall be from the Scheduled Castes and the Scheduled Tribes, four from Other Backward Classes including Socially and Educationally Backward Classes and three from Women members, so th~t among each of lhe said Scheduled Castes ancl Scheduled Tribes members, there shall be one woman and among the Other Backward C!asses including Socially and Educationally Backward Classes members, there shall be two women : Provided that , save as provided in the aforesaid clauses there will be no bar for the members belonging [o the said reserved categories to contest the election against the remaining seats ln the-Managing Committee of the Primary, Central and Apex Co-operative Societies."; and Orissa Acl 2 of 1963. ·For the Bill, See Orissa Gazette, Extraordinary, dated the 27th December 2004 (No. 1832) Amendment of Seciion 28-B. Amendment of Seclion 29. Amendment of Section 31. Amendment of Section 62. Amendment of Seetion 68. Amendment of Section 102. Amendment of Section 103. Amendment of Section 106. Amendment of $13ction 108. 50 (ii) in sub-clause (iv) of clause (g), for the words "lhirty-six monthsn, the words "fourty-two months" shall be substituted. · 4. In Section 28-B of the principal Act, the following proviso shall be added, namely: ~Provided that the Government shall have power to withhold the-electlon process of any Co-operative Society at any stage with reasons to be recorded in writing.n. 5. ln the principal Act, for sub-section (1) of Section 29, the following sub section shall be substituled, namely : Y1) The meeting of the General Body of members of a Society shall be held at least once in every Co-operatiVe year. n. 6. In the principal Act, for the proviso to sub-section (1) of Section 31, the following proviso shall be substituted, along with the explanation thereto : "Provided that the number of rnerribers so nominated shall, in no case exceed four, of whom, one shall be a representative of any of the financing B~nks of the · Society, if any, and two shall be professionals. Expl~nation-The term ·professronar shall include the profession of Accountancy, Banking, Agricu!ture, Co-operation, Law and Economics.". 7. In the principal Act, in Section 62, in sub-section (1 }, the following proviso shall be inserted to clause (i), namely:-· "Provided that the Audilor-General of Co-operative Societies, Orissa may engage one or more Chartered Accountants to cause the audit of the accounts of · the Co-operative Society and the fees shall be paid by the Society both to the Chartered Accountant and the Government for the audit of ils accounts for eac~I Co-operative year at such rate as rnay be fixed by the Government.". 8. In the principal Act, in sub-section (1) of Section· 68, after the figure, "1947" and before the words,nshall be referred," the words and figures, "and a dispute-relating to non-payment of contribulion to the CCXlperative Education Fund referred to in sub-section (3) of Section 56~ shall be inserted. 9. tn the principal Act, sub-section (1) of Section 102 shall be renumbered as Section 10~ and for the words" Auditor-Generarwherever lheyoccur, the word "Registrar" shall be substituted ; and sub-section (2) th~reof shall be omitted. 10. In the principal Act, in Section 103, (Q for the words "Auditor-General· wherever they occur, the word "Registrar" shall be substituted; and (ii) sub-section (5), shall be omitted. 11. In the principal Acl, in clause {b) of Section 1 06, for the words "Auditor Generaln, the word "Registrar" shall be substituted. 12. In the princf pal Act, for sub-section (1) of Sect(on ·108, the following sub section shall be substituted, namely: "(1) (I} All sums due from a SOciety to the Govem·ment other lhan audit I , fees, or from a Society to the-Qris§a Khadi and Village Industries r' -- - . Amendment of Section 109. Insertion of new Section 112-A. Relerence by Auditor Genera!. Amendment of. Section 115. 51 Board established under the Orissa Khadi and Village Industries Board Act, 1955, including any cost awarded under any provision of the Act and the contribution to the Co-operative Education Fund referred to in sub-section (3) of Section 56 due from a Society to the Ori ssa State Co-operative Uniory Limited, Bhu~aneswar, may be recov:ered on an order issued by the Registrar, and . . (1i) the audit fees due from a Society to the Government may, on an order issued by the Auditor-General be recovered.". uln the same manner as provided under sub-section (1} of Seclion 103:". 13. In the principal Act, in Section 109, (I) after clause (n) of sub-seclion (1), the following clause shall be inserted, namely: "{n-1) a reference of the Auditor-General of Co-operative Societies, Orissa made under Section 112-A", and (ii) iri clause (a) of sub-section (2), for the words, letter, brackets and· semi colon n and {n}: "the coma, brackets, lett ers, words, figure and semi colon ,", (n} and (n-1)~ and" shall be substituted. 14. !n the principal Act, after Section 112, the following Section shall be inserted, namely: "112-A. The Auditor-General of Co-operative Societies, Orissa of his own motion or on application by any person may, call for and examine the records of any proceedings under Section 67 of the Act, pending before any auth9rity subordinate to him or disposed of by such authority in which appeal has not been filed and rriay, after glving the parties a reasonable opportunity of being heard, make a refere~ce within a period off our years from the dale of his knowledge, to the Co-operative Tribunal with his views for adjudication and final decision under sub-section (1} of Section 109 of the Act,". 15. In the principal Act, in Section 115, (I} in sub-secllon (1 ), for the words "two hundred rupeesn, the words "ten thousand rupees", shall be substituted ; (ii) in sub-section (2), for the words utwo hundred rupees", the words "ten thousand rupeesn, shall be substituted; (iii) in sub-section (3), for the words "two h undred rupees", the words ulen thousand rupees" 1 shall be subs! ituted; (iv) in sub-section (4), far the words "fi>Je thousand rupees", the words "twenty thousand rupees", shall be substituted; (v) in sub-section (5), for the words "two hundred rupees", the words "ten thousand rupees", shall be substituted; (v,) in sub-section (6), for the words "one thousand rupees", the words "fifteen thousand rupeesn, shall be substituted; (viij in sub-section {7), for the words ''.one thousand rupees", the words "fifteen thousand rupees", shall be ~ubstituted; Orissa Act 3 of 1955. Amendment of Section 116. Amendment of Section 117. Amendment of Schedule,!. Amendment of SecUon 19 of the Orissa Aet 26 of. 1991. 52 (viii) in sub-section (8), for the words "two hundred rupe~s", the words ~!en lhousand rupees", shaJJ be substituted; (ix) in sub-section (9), for the words utwo thousand rupees", the words "eighteen thousand rupees", shall be substituted; {x) in sub-section ( 10 ), for the words utwo thousand rupees", the words "eighteen thousand rupees'', shall be substituted; (xl) in sub-section (11 ), for the words "one thousand rupees", the words ufifteen thousand rupees", shall be subslilut~d; (xii) In sub-sections (12), (13), (14)and (15), forlhc words "two lhousand rupees'!, the words "eighteen thousand rupees", shall be substih.Jled; and (xiii) after sub-section (15), the following sub-section shall be inserted, namely: "(16) any office bearer, member, officer, employees of the Co-operative Society, causing wilful negligence, in maintenance and preseivation of book; and accounts of the Society and in submission of the racords to the Registrar, Audilor~General and other authorities requiring !he same under this Act, and the rules, shall be punlshable with fine which may extend to five thousijnd rupees or with imprisonment which may extend to one year or with both.". 16. In the principal Acl, in Secli on 116, in sub-section {3), after the word ~Registrar'' and before the words nor any member", the words ~Auditor-Genera\". shall be inserted. 17. In the principal Act, in Section 117, after the words" !ndian Language is part" the words~ without the sanction of the Govemmenr shall be inserted. 18. In the principal Act, in Schedule-I, forthewordsn Auditor-Generarvmerever they occur. the word "Registrar" shall be substituled. . . . 19. In the Orissa Co-operative Socie~es (Amendment) Act, 1991, (hereinafter referred to as lhe Amendment Act), in Section 19, (i) for sub-clause {viii) of clause (a), the fol!owing sub-crause shall be substituted, namely : "(viii) to create posts, make service conditions, leave concessions, fixaLion and revision of pay and allowances of the employees C!f Co-operative Societies with the previous approval of the Registrar and shall have power to appoint officers and other staffs to canducl the business of the Society and determine Inter a/la their duties, disciplinary maHQrs, subject to provisions in this regard, in the Act, Rules and the Bye laws;"; (#) clause (k) shall be omitted. .Orissa Act 28 of 1991. 53 Amendment 20. ln the Amendment Act, the amendment made in Section 27, shail be of Section 27 of lha modified in the following manner, namely: Amendment Act. ~33-A. the Registrar shall Amendment of Sections 26, 45 and 49 of the Amendment Act. (aJ fix the number a~d designation of the employees to be employed by the Co-operative Societies : and (b) make rules, regulating the qualification, remuneration, allowances and other conditions of service of such employees.ft. 21. In the Amendment Act, Sections 28, 45 and sub-clause (iii) of clause (a) of Section 49 shall be omitted. ORISSA ACT. 9 OF 2005 THE ORISSA CO-OPERATIVE SOCIETIES (AMENDMENT) ~CT, 2005 TABLE OF CONTENTS PAEAMBlE: SECTIONS: 1 . Short title and commencement 2. Amendment of section 28 3. Repeal and savings · -, -ORI SSA ACT s· OF2b05 ~THE ORISSA CO-OPERATIVE SOCI ETIES-(Afv1 ENDMENT) ACT, 2005 [ Received the assent of the Gciveinor·on lhe 6th- September, 2005, l,rst published in an Extraordinary issue of the Orhsa Gazette. dated the 9th September, 2005 (No. 1465)] Short lille and commence menl. Amendment or section 28. Repeal and savings. · . ,. AN ACT FURTHER TO AMEND THE ORISSA CO-OPERATIVE SOCIETIES ACT, 1962. BE ii enacted by ll 1e Legislature of the State of Orissa in the fi f1y-s ix!h Year of lhe Republic of India as lollows: 1. (1 J This Act may be called the Orissa Co-operative Societies (Amendmen l) Act, 2005. (2) It shall be deemed to have come into force on the 2nd July, 2005. 2. In the Orissa Co-operative Societies Act, 1962, in section 28, in sub- Orissa Act clause (iv) of clause (g) ol sub-section (2), for the words ~forty-two months", the 2 of 1963. words ''forty-eight months" shall be substituted. 3. (1)The Orissa Co-operative Socielies (Amendment) Ordinance, 2005 is Orissa hereby repealed. Ordinance No. 3ol · · . . 2005 . (2) Notw1lhslanding such repeal anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed 10 l1ave been done or taken under the principal Act as amended by this Act. ~For the Bill, see Orissa Gazette, Exlraordinary, dated the 1 st August. :?005 (No.1230) 198