West Bengal Cooperative Societies Act, 2006 (Act No. 40 of 2006)

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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 West Bengal Cooperative Societies Act, 2006 Act 40 of 2006 Keyword(s): Apex Cooperative Society, Central Cooperative Bank, Cooperative Society, Cooperative year, Special Officer Amendments appended: 14 of 2011, 7 of 2013 Register 11''"· WBISC-247 No. WB(Part-llll/2010/SAR-13 JYAISTHA 4] 111.olkata ~ffl" Extraordinary Published by Authority TUESDAY. MAY 25, 2010 PART lll-Acts of the West Bengal Legislature. GOVERNMENT OF WEST BENGAL LAW DEPARTMENT Legislative NOTIFICATION [SAKA 1932 No. 712-L.-25lh May, 2010.-Thc following Act of the West Bengal Legislature, having been asscn1ed 10 by the President of India. is hereby published for general information: West Bengal Act XL of 2006 THE WEST BENGAL CO-OPERATIVE SOCIETIES ACT, 2006. [Passed by IM West Bengal Legislarure.J [Asscn1 of the Pres1dcn1 of India was first published in the Kolk,ua Go:eue. Exrroordmary. of 1he 25th May, 2010.) CONTENTS CHAPTERI Preliminary Sccnon 1 Shon ntle. c~1en1 and commencement :. Stnle pohc~ on Co-cperanvc •ocieries. ~ Co-oPtrativc pnnc,plei 2 1lfE KOLKATA GAZEITE, ~ORDINARY, MAY 25, 2010 The Wut Btngal Co-c~1'0Jive Societies Act, 2006. Section 4. Defim11ons 5. lnterprcllltion of words and expression used in the Act. 6 Repeal and savings 7. Construction of reference 10 Act of 1912, Ben. Act XXVI of 1940, West Ben. Act X.XXVDI of 1973 and West Ben. Act XLV of 1983. 8. The Companies Act, 1956, not to apply. 9. The prohibition of the use of the word "Co-operative". 10. Officers of Co-operative societies to be public servantS. 11. Exemption of Co-operative societies from the provisions of the Act. CHAPTER D Re,lstntfon 12. Appointment of Registrar and Director of Co-operative Audit and olher persons to assist them. 13. Conferment of powers and duties of Registrar and Director of Co-operative Audit on other persons. 14. Co-operative society which may be registered. I.S. Bar to registration. 16. Application for registration. 17. Co-operative society to be body corporate. 18. Display of name. 19. Amendment of by-laws. 20. Bye-Laws. OIAPTERW Chup fll llabOitlel, tramler fll .. ud tUTillioo ud ......... fllCo-GpendYe ~ 21 . Transfer of assets and liabilities and division and amalgamation of Co-operative societies. 22. Powers of Registrar to order division, reorganisation or amalgamation of Co operative societies. 23. Amalgamauon of any Central Co-operative Bank with any other Ccnlral Co operative Bank or with the St.ate Co-opcntive Bank. 24. Olange of name and Its effect. 25. Promotion of subsidiary orpnilltion. 26. Partnership of Co-operative societies. [PART ID PART ill) THE KOLKATA GAZEITE, EXTRAORDINARY. MAY 2~. 2010 The West Bengal Co-operative Societies Act, 2006. OiAP'IBR IV Statw and manacemcnt or Co-opcratln society Section 27. General body of a Co-'Ope.rative society. 28 Final authority of a Co-operative society. 29 Annual general meeting. 30 Half-yearly general meeting. l I Special general meeting. 32 Management of Co-opcrauve soc1et1es. 33. Deputation of Government officers to manage the affairs of Co-operauve society 34 Dissolution and rccons11tution of board. 35. Dissolution of board and appointment of administrator. 36. Dissolution of the board in certain cases and appointment of special officer 37 Summoning of meeting of Co-operative society and rescinding or suspending resolution thereof. 38 Reservation of seats on board. OiAP'IBR V Duties and obli&atlons or Co-operative societies 39. Address of Co-openuive society. 40. Change of name and lt.s effect 41 . Books and documents to be open to inspection by members. 42 Affiliation to State and Regional Co-operative Union. 4~ Appointment of persons in the service of a Co-operative society. ~ Re,mcuons on borrowings 45 Js~ue of debentures. 46 Vesung of assets of Co-operative society in the Trustees upon issue of debenture. 47 Issue of bonds 48. Issue of preference shares. 49. Application for loan. 50. Loans and advances to members and non-members. 51. Power of State Government to give financial assistance. 52. Limitation. 53. Debts due to Co-operative societies to be first charge. 54. Charge on immovable property of members borrowing from certain Co operative societies. 55. Loan by Gehan. 56. Appointment of sale officer. 57. Utilisation of the sale proceeds. 58. Charge and scl off of shares and interests. 59 Deduction of dues to Co-opcra11ve societies from members and sureties 60. Exemption from compulsory registration of instruments relating to shares and debentures of Co-operative and mongage deeds executed in favour of Co operative agriculture and rural developmcnr bank or prima.;· Co-opcrarwe .IOC~t)'. 61. Power to remit duties. fees. etc. and to prevent prefe rence and e{emption. 62. Compromise or arrangement between Co-opcrathe society and ns creo1tor. 4 TIIE KOLKATA GAZETTE, EXTRAORDrNARY, MAY 25, 2010 ~ West Bengal Co-operatfre Socienes Act, 2006. CHAPTER VI Member or Co-operative and their duties, rights, accountability prlvltei:es and liabilities. Section 63. Eligibility for membership of C~perative society. 64. Admission as member . . 65. Votes of members. 66 Ut1lisauon of loans. 6 7 Share or interest not liable to attachmenL 68. Liab1l11y of members. 69 Liab1lny of past member or estate of deceased member. 70. Disposal of deceased member's share or interest. 71. Disposal of share or interest of member on expulsion or resignation or on becoming insane. 72. Restriction on transfer or possession of and interest m land held under Co-operative society. 73. Disposal of share of int~ of member of dissolved Co-operative society. 74. Disposal of moneys of the deceased, expelled, resigned or insane member. 75. Restrictions on holding of shares. 76. Nomination by member. 77. Restriction on transfer of shms and int.crest. 78. Redemption of shares. CHAPTER VII Properties and fUDds or Co-operative societies 79 Investment of funds. 80. Co-operauve Education Fund. 81 . Bad Debt Fund. 82. Reserve Fund. 83. Employees' Provident Fund. 84. Retirement Benefit Fund. 85. Creation and mainte~ of special funds. 86. Distribution of profit. OiAPTER vm Special provisions for bouslnc Co-operative societies 87. Eligibility for membership of a housing Co-operative society. 88. Type of housing Co-operative societies to be registered. 89. Fin.t general meeting of a housing Co-operative society. 90. Annual general meeting of housing Co-operative society. 91. Unit of assessmenL 92. Rights of members. 93. Restrictions on lening out of house or flat by a member in housing Co operative society. [PART HI P~RT Ill I Section THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25, 2010 ~ \Vest Bengal C(H)perm,ve Soc1e11es Acr, 2006. CHAPTER IX Co-operative Service Commission, Co-operative Registration Council and Co-operat1ve Election Commission. 94. Co-operative Service Commission. 95. Co-operative Registration Council. 96. Co-operative Election Commission. CHAPTER X Audi½ Inspection and Inquiry 97. Audit of accounts of Co-operative society. 98 Audit rcpon. 99 Inspection by Registrar or financing bank or apex Co-operative society or Central Co-operative society. 100. Inquiry by Registrar. 101. Cost of inspection or inquiry. CHAPTER XI Settlement of disputes 102. Dispute to be filed before Registrar. 103. Senlement of disputes. 104. Appointment of forum of arbitrators. 105. Force and effect of cenain award. CHAPTER XIl Dissolution or Co-operat1ve society 106. Dissolution of Co-operative society by the Registrar on basis of rcpon of inspection, inquiry etc. 107. Dissolution of Co-operative society by Registrar at inst.ance of board or its members. 108. Dissolution of Co-operative society by Registrar of his own motion. 109. Order of dissolution to be published and communicated. 110. Appointment or removal of liquidator. 111 Powers and obligation of liquidator. 112. Priority of contribution assessed by liquidator. I 13. Cancellation of order of dissolution. 5 THE kOLKATA GAZETI"E, EXTRAORDtNARY, MAY 25, 2010 The West Btn11al Co-operativt Societia Act. 2006 CHAPTER Xlll Special provisions for S ta te Co-operative Banlt, Co-operative Agrlcullure end Rura l Development Bank, Central Co-opera tive Bank, Primer;, Co-operative Cr edit Society. Ape~ Hou.~lng Co-operative Society a nd Urban Co-operative Ba nk. Secnon 114 Payment of pnor debt of mongagor. 115. Procedure for dealing with apphcutions for loan: 116. Restricuon on transfer of. or charge on, cquuy of redemption. 117 Mongage not 10 be quesuoned on insolvency of mongagor 118 Pnonty of mongage over ccruun loan:. 119 Construcuve borTO,~mgs 120. Power 10 distmin and sale. 121. Apphcauon of the proceeds of distram and sale. 122. Power to bring mongaged propeny to sale and delivery pos~ess1on in respec1 of propeny sold without intervention of coun 123. Right to purchase and sell under this Chapter. 12~. Title of purchaser not to be questioned 125. Appointment of Receiver. 126. Power of Co-operauve bank or Co-operative socieues etc. 1f mongaged propeny is destroye-0 or security become:. insufficient 127 Power of trustee or West Bengal State Co-operative and rural de\:elopmenr bank to direct or to take certam acuon. 128. Officers of agnculturc and rural development bank etc. not ro bid on personal account at sales. 129 Exemption from personal attendance. 130. Power ro Co-operauve agriculture and rural development bank ere. to receive money notwithstanding transfer of mongage deed to West Bengal State Co operauve agnculture and rural development bank etc. 131 Mongagc executed by members of JOtnt Hindu farruly. 132. Special provisions for Co-operative agriculture and rural development bank 10 apply to branches of West Bengal State Co-operative agnculturc and rural development bank. 133. Provision of sections 123. 124 and 127 to apply to loans issued agamst Gthan. 134. Certain other provisions relating to urban co-operative banks. CHAPTER XJV Enforcement or obligation and recovery of sums due 135 Access to documents etc. 136. Power to enforce attendance of witness and producuon of documents. 137 Delivery of possession of books, accounts etc. of Co-opcmllve society. 138. Power 10 direct conduional altachment. 139. Power 10 direct payment of dues. 140. Charge and surcharge. 141 Penalty for ecru.in misdemeanours. 142 Reg1slr:1r's power 10 cnfO"Ce performance of obligation~. 143. Recovery or sums due 144 Acts of Co-operative society not to be invalidllled by Certain defects. [PART lJI PART ill) THE KOLKATA GAZETrE. EXTRAORDINARY. MAY 25. 2010 ~ Wes, Bengal Co-operarive Socie1ies Act, 2006. CHAPTER XV Jurisdiction, Appeal and Review ~cct1on 145. Indemnity and bar to 1unsd1ct1on of Couns. 146. Tnbunal. 147. Appellable orders, appellate authority and period of limitation. 148. Review and revision. CHAPTER XVI Off'ences, penalties and procedures 149. Offences and penalties. 150. Cognizance of offence. 151. Presumption raised by enll')' in register of members. 152. Proof of enll')' in book of Co-operative society. I 53. Punishment for corrupl practices. CHAPTER XVII Miscellaneous 154 o~emding effect of the Act. 155. Co-operative bank 10 gel insured. 156. Power 10 add 10 the Fifth Schedule. 157. Power 10 make rules. FIRST SCHEDULE SECOND SCHEDULE THIRD SCHEDULE FOURTii SCHEDULE FIFTH SCHEDULE SIXTii SCHEDULE SCHEDULES Power exclusively exercisable by the Regisl?ar. Recovery of sums due Appeals Offences and penalties Co-operative societies Power exercisable by the Director of Co-operative AudiL 7 8 Shon ado, ureat &Dd"""""""" IDCDL THE KOLKATA GAZETTE. EXTRAORDINARY, MAY 25, 2010 THE WEST BENGAL CO-OPERATIVE SOCIETIF.S ACT, 2006 (Chaptu I.-PrelimiMry.-Sections 1-3.) An Act to consolidate and amend the law relating to Co-operative societies in West Bengal. WHl!RJ!AS in order to infuse a new life into the Co-operative movement of West Bengal on the face of the new cba.llenge of globalisation and liberalization of Indian Economy, it is necessary and expedient to lllllke provisions to give healthy impetuS and a sense of purpose for the Co-<>perative movement in West Bengal, to facilitate the voluntary formation and democratic functioning of the Co-<>perative societies in the State, to ensure members' involvement in making decisions, to make the Co-operative societies self-reliant and vibrant by changing the vision and mission of the institutions as required to face a new competitive economic scenario to promote thrift. self-help and mutual aid amongst the people with needs and interest in common, to provide for transparent, devoted and efficient management and services relevant to the needs of the Co-<>perativcs, to diversify their activities, 10 put them on sound financial footing and to increase production in all sectors of life including agriculture and industry and above all to bring about economic and social regeneration including better and happier conditions of living for the weaker and poorer section of the community including womenfolk and to bring them within the fold of Co-operative moveme.01 and for that pwpose to consolidate and amend the law relating to the Co-<>perative societies in West Bengal. It ia hereby enacted in the Fifty-seventh Y car of the Republic of India, by the Legislature of West Bengal, as follows: CHAPTER I Prdlmlnary 1. (I) This Act may be called the West Bengal Co-operative Societies Act, 2006. (2) It extends to the whole of West Bengal. (3) It shall come into force on such date u the St.ate Government may, by notification in the Official ~tte, appoint, and difen:nt dates may be appointed for different provisions of this ACL 2. (1) It shall be the policy of the State to promote Co-operative societies, which are instruments of equity, social justice and economic development in ful.filmcnt of the Directive Principles of the State Policy u ensbrio.cd in the Constitution of IndiL (2) Save u otherwise cxpn:asly provided in this Act, the State ahalJ not interfere in the management and opcnlion of the Co-opcn.tive societies and ahalJ recognise Co-operative societies u democratic institutions owned, managed and controlled by members for their ccooomic and social bcW:rmcnt, operating their buainess based on mutual aid and Co-opentive principles. 3. The following ahalJ constirutc the Co-operative principlcs: (i) membership in Co-<>perative societies shall be voluntary and available irrespective of caste. creed, race and religion to all pcnons who can malce use of its services and are willing to accept the responsibilities of membership; (PART ID PART DJ] THE KOLKATA GAZETTE, EXTRAORDlNARY, MAY 25, 2010 The Wes, Bengal Co-operative Societies Acl, 2006. (Chapter 1.-Preliminary.-Section 4.) (ii) Co-operative societies o.rc democratic organisations controlled by their members who actively panicipate in setting their policies and making decisions. Their affairs shall be managed and administered by persons elected or appointed in the manner agreed by the members and accountable to them. Every member of a Co-operative society, other than a nominal member, shall have equal right of voting in accordance with the principle of "one member, one vote"; (iii) member holding share capital shall only receive a strictly limited compensation. by way of dividend, if any; (iv) the economic results. arising out of the operations of a Co-operative society belonging to the members of that Co-operative society shall be distributed in such a manner as 10 avoid one Tnember gaining at the expenses of other. This may be done by decision of the members as follows: (a) by provision for development of the business of the Co-operative societies; (b) by provision of common services; and (c) by distribution among the members in proportion 10 their uansactions with the Co-operative societies; (v) as autonomous, self-help organisations, controlled by their members, Co-operative societies, if they enter into agreements with other organisations, including Governments or raise capital from external sources, they can do so on terms that ensure democratic control by their members and maintain their Co-operative autonomy; (vi) aU Co-operative societies shall make provision for the education of their members, officers and employees and of the general public, in the principles and techniques of co-operation, both economic and democratic; • (vii) all Co-operative societies, in order 10 serve better the interest of their members and their communities. shall actively co-operate in every practical way with other Co-operative societies at a local, national and international levels having as their aim the achievement of unity of acuon by co-operators throughout the world; and (viii) all Co-operatives shall have concern for the communities and shall work for the sustainable development of their communities through policies approved by their members. 4. In this Act, unless there is anything repugnant in the subject or conte:r.t, (1) "administrator" means an administrator appointed under section 35; (2) "apex Co-operative society" means a Co-operative society whose area of membership extends to the whole of West Bengal and the primary object of which is 10 promote the objects and to provide facilities for the operation of other Co-operative societies which are its members and includes West Bengal State Co-operative Bank Limited and West Bengal State Co-operative Agriculture and Rural Development Bank Limited; (3) "arbitrator" means an arbitrator appointed under section I 03 and includes a board of arbitrators and a forum of arbitrators; (4) "area of membership" me.ins the area as specified in the by-laws of a Co-operative society from which the membership is drawn; 9 10 THE KOLKATA GAZETTc. EXTRAORDINARY, MAY 25. 2010 1ne IVl'sf Bengal Co-oper1mve Socier1es AC'I, 2006. (Chapter J.-Preliminary.-Sec11on 4.) (5) "auditor'' mCllns a person appointed or authorised to act as an auditor under section 97: (6) "audit range" means an area over which an audit officer not below the rank of an Assistant Director of Co-operative Audit exercise~ his jurisdiction; (7) "block-level mahilo self-help group Co-operative societies·· means a credit Co-operative society formed by the self-help groups consisting of women members only within the adminis.trative jurisdiction of a communuy development block: (8) "board" means a board of d1rccto~. the governing body of a Co-operative society constituted under section 32; (9) "borrowed capital" means the tOlal of loans, deposiis and such other borrowings as the Board of a Co-operative Society may decide; C 10) "by-law" means a by-law registered under this Act and includes an amendment thereof; ( 11) "Central Co-operative bank" has the same meaning as in the National [PART ill Bank for Agriculture and Rural Development Act, 1981: 61 ol 1981 (12) "State Co-operative agriculture and rural development bank" means a Co operative, the primary object of which include the creation of funds for lending money to its members and to the Co-operative agnculturc and rural development banks; ( 13) "Central Co-operative society" means a Co-operative society, the primary object of which is to facilitate the working of other Co-operauvc soc1cues which arc its members within an area as may be prescribed and includes a Central Co-operative Bank Lid., ( 14) "consumerCo-opcratlve society" means a Co-operative society, the pamary object of which is to supply consu.mcr goods and to render such other services to iis members and other consumers as may be required in the matter of supply and production of consumer goods and includes a fedcrauon of such Co-operative societies; ( I 5) "Co-operative society" means a Co-operauve society registered under this Act and includes all Co-operative societies registered under the previous Acts: ( 16) "Co-operative agriculture and rural development bank" means II primary Co-operative society, the object of which include the creation of funds for lending money to its members on long-term basis and also to the beneficiaries of long-term loan on short-term basis for improvement of agricultural land and for other productive purposes and for construction of house and higher education of members or their wards. t:xplana1ion.-ln this clauso (1) "long-term" shall mean a term exceeding five years; (ii) "productive purposes" shall mean such effort, activity or construction as may be provided in the by-laws, (17) "Co-operative farming" means a Co-operative society, the principal object of which is to organise cultivatlon of lands held by 11 or by its members jointly or Olherwise with a view to increasing agricultural production and employment by proper utilisation of land, labour and other resources: PART Ill] THE KOLKATA GAZEITE. EXTRAORDINARY. MAY 2§. 2010 The West Bengal Co-operative Societies Act, 2006. (Chapter I.-Prel,mmary.-Section 4.) ( 18) .. Co-operative society with limited liability" means a Co-operative having the liability of its members limited by its by-laws to lhe amount, if any, unpaid on lhe shares respectively held by lhem or to such amount as lhey may have respectively thereby undenaken 10 contribute to lhe assets of lhe Co-operative in lhe event of its being wound up; (19) "Co-operative society wilh unlimited liability" means a Co-operntive having. subject to its by-laws, an unlimited liability of its members to contribute jointly and severally in any deficiency in lhe assets of lhe Co-operntive; (20) "Co-operative Credit Society" means a Co-operative society. lhe primary object of which is to create funds for lending money to its members: (21) "Co-operative rnnge" means such area over which an officer not below lhe rank of an Assistant Registrar of Co-operative societies exercises his jurisdiction; (22) "chief executive" means a person, by whatever designation he may be called, who being appointed by lhe board, manages lhe a.ffairs of lhe Co-operative, subject to lhe superintendence. control and direction of the board and includes Chief Executive Officer appointed by lhe State Government or the Registrar of Co-operative societies under section 33; (23) "Co-operative year" means lhe year commencing on lhe 1st day of April; (24) "Director of Co-operative audit'' means the person appointed under section 12 and includes Additional Director of Co-operative Audit, Deputy Director of Co-operative Audit, Assistant Director of Co-operative Audu or any other officer who are appointed under lhat section to assist him and on whom all or any of lhe powers of lhe Director under this Act arc conferred: (25) "dispute" means any matter capable of being lhe subject of civil litigation, and includes a claim in respect of any sum payable to or by a Co-operative society; (26) "district Co-operative union" means a Co-operative society which has an area of membership extending to the whole of a Co-operative range and lhe primary object of which is to assist the State Co operative Union in implementing its object and includes a central society; (27) "distrainer" means a person who is empowered by a Registrar to distrain and sell the produce of mortgaged land including lhe standing crops thereon. in accordance with the provisions of section 120: (28) "electric Co-operative society" means a Co-operative society, lhe primary object of which is to provide electricity through generation, distribution or otherwise to its members and also to others if approved by the Board (29) "engineers' Co-operatiYe society" means a Co-operatiYe society formed of unemployed (i) degree holders in any branch of engineering, technology. science. commerce. ans or ngnculture; or (ii) diploma ilolders in any branch oi eniineerlng. technolc-gv. agr,culture; or ,11, centficate ho!de.,s ;, any '~...stric.! trade. II ll 'I rm PART 111) THE KOLKATA GAZEITE, EXTRAORDINARY, MAY 25, 2010 TM \Vtst Bengal Co-optrative Societies Act, 2006. (Chapter 1.-Preliminary.-Section 4.) (41) "member'' means a person joining in an application for registration of a Co-operative society or a person admiucd to the membership of a Co operative society after registration in accordance with the provisions of this Act and the rules and the by-laws made thereunder. and includes a joint member. or a self-help group and, subject to the provision of sub section (3) of section 63, a nominal member. £:cplan01ion.-For the purpose of this clau~ (a) ·~oint member" shall mean any one or two persons admiued Jointly 10 the membership of a Co-operative society under sub secuon (4) of section 63 and shall include either of the following persons so admmed {i) husband and wife: (ii) father and son or daughter; and (iii) mother and son or daughter; (b) "nominal member" shall mean any person admi11ed to the membership of a Co-operative society as a nominal member under sub-section (3) of section 63; (42) "multipurpose Co-operative society" means a primary Co-operative society, the object of which is to provide various services including credit, business. industry consumer to its members; {43) "National Bank for Agricultural and Rural Development" means the National Bank for Agricultural and Rural Development established under section 3 of the National Bank for Agricultural and Rural Development 61 or t98t. Act, 1981: (44) "net profit" mean.s profit after deduction of establishment charges, contingent charges. interest payable on loans and deposits. audit fees and such other sums as may be provided in the by-laws; {45) "notification" means a nOlilication published in the Official Gazette; {46) "office-bearer" shall mean the chairman, vice-chairman, sccretal)'. assistant secretary or treasurer of the Co-operative society; (47) "officer'' includes a chairman. vice-chairman, secretary, joint secretary, assistAnt secret.ary, treasurer, director of a board and managing director. general manager, deputy general manager, assistant general manager, development officer, chief eitecuttve, deputy manager, assistant manager, field eitecutive officer, and any other person appointed and authorised by the board to give direction relating to the affairs of the Co operative society and also includes a Government Officer appointed under section 33 and Special Officer appointed under section 36 or an administrator appointed by the St.ate Government or the Registrar under section 34 to manage the affairs of the Co-<iperative sociery; (48) "owned capital" means the total paid up share capital and accumulated reserve fund and other funds created out of profits of a Co-operative society or otherwise: (49) "patronage refund" means annual refund 10 members in proportion 10 their transactions with the Co-operative societies during the year; (SO) "preference share capital" means and includes share capital raised by the State Co-operative Banks and the Central Co-operative Banks from persons friendly supponing the cause of Co-operative movement who shall be eligible to receive dividend at a rate filled by such Banks subject to prior approval of the Reserve Bank of lndia and shall be entitled to such rights as provided in this Act: (5 I) "prescribed" means prescribed by rules made under this Act; (52) "primary Co-operative society" means I Co-operative society whose membership is available only to 1nd1v1duals and self-help groups: {53) "pnmary Co-operative bank" has the same meaning as in the Reserve Bank of India Act, 1934: 2 or t934 13 1.; TIIE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25, 2010 The Wtsr Btngal Co-optra11vt Socitrits Acr. 2006. (Chaprtr /.-Prtl1m1nary.-Sterion 4.) (54) "primary Co-operauve crcdu society" means a Co-operative soc1e1y. the primary object of which is to create fund for lending money to its member and which undertakes such other credit and non-credit activiues commensurate with the primary obJect; (55) "primary agricultural credit Co-operative society" means a Co-operative society, the primary object of which is to create fund for granting short term crop loan, medium and long-term loan for supplying agriculwral inputs 10 its members and selling of outputs of its memb n and to undertake rural non-farm sector activities including co11age and small scale industries, allied farm activities including aquaculture animal husbandry, horticulture, sericulturc and such other business. services and acuviues for development of the rural areas as specified in the by-laws. £.cplanarron. (a) "shon-term" shall mean a term n01 exceeding one y~ar. (b) "medium-term" shall mean a term more 1han one yea; and less than five years; and (c) "long-term" shall mean a term exceeding five years; (56) "Registrar" means the Registrar of Co-operative societies appointed under section 12 and includes Additional Registrar, Joint Registrar. Deputy Registrar, Assistant Registrar of Co-operative society and any other officer who is appointed under that section to assist the Regis1rar and on whom all or any of powers of the Registrar under this Act arc conferred: [PAAT ill (57) "relative" has the same meaning as in the Companies Act, 1956. 1 of 1956 (.58) "Reserve Bank of India" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934; l of 1934 (59) "rules" means the rules made by the State Government under this Act; (60) "self-help group" means a group of persons. men or women of five to 1wenty in number coming from different families and belonging 10 economically wealcer section of the society and having their res1dcn11al address w,thm a contiguous place for effec1ive implementa1ion of viable economic acuv,ues, (61) "service Co-operauve society" means a Co-opera1ive society formed pnmarily with unemployed persons for rcndenng seryices such as secunty service and educauon, allied supply of food and consumers goods, healthcare including nursing and aya services, domestic help. car parking faciliry or any other services as may be prescribed including providing services for agricultural, veterinary, fishery and other alhed farm sector including agncultural clinics and service centres to Govemmem authorities institutions and individuals; (62) "State Co-operative Bank" has the same meaning as in the National Bank for Agricultural and Rural Developmem, 1981 · 61 or19:1 . (63) "Suue Co-operative Union" means a Co-operative society registered under this Ac1 having its area of membership extending 10 the whole of West Bengal, and the primary object and functions of which is (a) to spread education on Co-operative principles and practices, (b) 10 arrange for uaining of the members and the employees of Co-operative societies and of the employees deputed by the Staie Govcmmenl on Co-operative principles and practices; PART 1111 lntctprtiauoo of certalllwonlsand cxp-esslon used in the Act. Repeal and U\'ln.'5. THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 ~ West Bengal Co-operative Societies Act, 2006. (Chapter 1.-Pre/lminary.-Sections 5, 6.) (c) 10 deal with and solve the problems of Co-operative societies which arc its members: (d) to develop the existing Co-opera1ive societies· (e) to organise and promote new Co-operative societies: (t) to propagate and publicise Co-operative principles and ideas: and (g) to perfonn such other functions as may be prescribed: (64) "secretary" means a person who subject to the control of board, is enuusted with th.e management of !he affairs of Co-operative society and includes any person by whatsoever name called discharging the duties of a secretary; (65) "State" means !he State of West Bengal; (66) "transpon Co-operative society'' means a Co-operative society composed of transpon operators including driver. conductor, cleaner, mechanic and other persons engaged in transpon business: (67) "Tribunal" means the Co-operative Tribunal constituted under sec1ion 146: (68) ''Trustee" means a trustee appointed under section 45: (69) "working capital" means the total capital of a Co-operative consisting of borrowed capital and owned capital. S. Unless otherwise specified io this Act (a) expressions referring to writing include printing, typing, lilhography, photography, photocopy, emails, fax and olher melhod of representing or reproducing words in a visible fonn: and (b) with reference to a person who is unable to write his name, the words "signature" shall include his lhumb impression or other mark duly attested ro signify his signature. 6. (I) The West Bengal Co-operative Societies Acr. 1983 is hereby repealed. (2) Notwithstanding such repeal anything done or suffered or any action taken including any rule made, and transaction entered into. any notification or notice issued with prospective or retrospective effect, any order passed, any appointment or registration made. any suit or proceeding commenced, any dispute decided or referred to arbitration. any right or title accrued, or any liabilit)' or obligation or penalty incurred under the Co-operative Societies Act, 1912 or the Bengal Co operattve Societies Act, 1940 or the West Bengal Co-operative Societies Act, 1973 or the West Bengal Co-operative Societies Act, 1983 shall be deemed to have been done or suffered or taken under this Act, as if the provisions of this Act were in force at all material times when such thing wos done or suffered or such action was taken. (3) Every Co-operative society existing at the commencement of this Ac: which has been registered or deemed to have been registered under the Co operative Societies Act, 1912 or the Bengal Co-operative Society Act, 1940 or the Wes1 Bengal Co-operative Act, 1973 or the West Bengal Co-operative Act, 1983 shall be deemed to have been registered under this Act, and its by-laws shall. in so far as they are not inconsistent with the provisions of this Act. conttnue In force until altered or rescinded and shall to such extent be deemed to be registered under this Act. West Ben Act XLVof 1981 2 of 1912. 15 Ben. Act XXJ or 1940. >J~i Be:o A.;t AN( •Jll of 1Vi3. We,1 Ben A::t XL" of 1~8.) 16 Conscn,chOII o( rdCTCnCc 10 Act 2 of 1912. Ba, Act XXVI of 1940. Wcot Ben Act XXXVIII or 197) and Wat Bea. Act XLV of 198l lbo Companies Act lfflnoc &o apply P!ohibtt>OD o( the UKofwud "Co, opcnuvc· Offlan ol Co opcntnc: 10C:ldia ..... pubbc ...,, THE KOLKATA GAZETI"E. EXTRAORDINARY, MAY 25, 2010 ~ West Bmgal Co-operative Socittits i'tct, 2006. (Chapru 1.-Prtliminary.-&crions 7-11.) 7. All rererence to the Co-operative Societies Ac1. 1912 or 10 1he Bengal Co-opcralive Socie1ies Act, 1973 or 10 the Wesl Bengal Co-operalive Socie1ies Act, 1983 occurring in any enactmenl for the time being in force in West Bengal shall, in lhe application of any such enactmenl thereto, be conslr\led as reference to this Ac1; and anything done or any proceeding commenced in pursuance or any such enacunen1 on or after the commencemenl of this Act shall be deemed to have been done or commenced and 10 have had effect as 1f any reference in such enacunen1 10 the Co-operative Socielies Act, 1912 or to the Bengal Co-operative Societies Act, 1940 or to the West Bengal Co-operative Socie1ies Ac1, 1940 or 10 the Wes1 Bengal Co-operative Societies Act. 1983 had been a reference 10 this Act and no such thmg or proceeding shall be deemed 10 have been invalid on the ground lhal such enactmcn1 did no1 refer to this Act. [PART III 8. The provision of lhe Companies Act, 1956 shall not apply to Co-operative I ol 19~ societies. 9. (I) No person other than a Co-operative society shall trade or carry on business under any name or title of which lhe word "Co-operative" or ils equivalent tn any language 1s a pan. (2) Any violation of the provision of sub-section (I) shall constilule an offence punishable wilh imprisonment for a- tenn which may exiend 10 1wo years or with fine which may exlend to five lhousand rupees or both. 10. Every officer of a Co-opera1ive society shall be deemed to be a public scrvanl within lhe meaning of section 21 of lhe Indian Penal Code, 1860 . 11. (I) The State Government may, by notification, for such reasons as may be prescribed, to be recorded in writing, exempt any Co-opcra1ive society or class of Co operative societies or any other institution under lhis Act from the operation of any of lhe provisions of this Act, considered unsuited !hereto and thereupon the said provisions shall not apply to such Co-operative society or class of Co-operative Societies or any other institutions under this Act until such provisions are applied lh.ercto by n01ification: Provided that no notification to the prejudice of any Co-operative society or class of Co-operative societies or any other institution under this Act shall be issued without an opportunity being given to ii to represent its case. Such opportunity or hearing has 10 be notified inviting objcc1ion, if any from inl.Crcsted persons: Provided further that uempLion under this sub-section cannot be accorded in case of extension of the l.Cnure of the Board of Directors of any Co-opc,ative society or class of Co-operative societies, as the case may be, appointment of employees or officers of the Co-operative society holding Annual General meeting, Special Annu1'1 General meeting and recoo.stltu1ion of the Board of Directors of any Co-operative society. (2) While the exemption, as aforesaid, remains in force, the State Government may make rules consistent with the provisions of this Act in respect of any mattcr within the purview of such provisions of lhls Act from the operation of which the Co-operative society or class of Co-operative societies or any other institutions under this Act as aforesaid arc exempted. 4S ol 1860 PART UJ] Appotntmcnl of RcJlSlnlrand Dtrcctor of~ oprrau"e: Aucbl and Olhcr pcnons lO&Wstlhc.m. conrermcnl or po,.cnandcluues or RcJUIN and Du~ororco opc.nw~c Audit on Olherpcnons. Co-opcnuvc IOCICIY .,luch may be ~&>Jl<ffll Bar IO re1iwll· bOll. THE KOL.KATA GAZE'JTE. EXTRAORDINARY, MAY 25. 2010 The West Bengal Co-operative Societies Act, 2006. (Chapter II.-Registrar/on.-Sec1ioru 12-/5.) CHAPTER II Registration 12. (1) The S1ate Government may appoint a person to be the Registrar of Co-operative Societies for West Bengal and such number of other persons to assist him as it may deem fit. (2) The State Government may appoint a person to be the Director of Co-operauve Audit for West Bengal and such number of other persons 10 ass1M him as 11 ma} deem fit. 13. ( 1) Subject to the rules, the State Government may. by general or specu!l order in this behalf, confer all or any of the powers, or impose all or any of the duties. or the Reg1st.rur under this Act. other than those specified m the First Schedule, on any person appointed under sub-section (I) of secuon 12 to assist the Regist.rur. (2) Subject to the rules. the Stale Government may, by general or special order in this behalf. confer all or any of the powers, or impose all or any of the duties. of the Director of Co-operative Audit under this Act, other than those specified m the Sixth Schedule. on any person appointed under sub-section (2) of section 12 to assist the Director of Co-operauve Audit. 14. (I) Suject to the provisions of this Act and rules, a Co-operative society established with the object of social and economic beucnnent of 1ts members in their common interest through self-help and murua.l aid in accordance with the Co-operati\e principles and faciliuuing the operation of such Co-operative society including a Co-operative society formed by dJv1s1on of an existing Co-operauve society or by amalgamation or reorganisation of two or more Co-operative societies w1lh the approval of their members may be reglSlcred under this Act with limited liability. (2) A Co-opernuve society shall be reglSlercd with limlled liability: Provided that a Co-operative society with unlunitcd liab1licy functioning unmedJately before the commencement of this Act may conunue 10 funcuon as such or may conven itself into a Co-operative society with limited liability if the members of such Co-operauve society want: Provided funher that a Co-operative society registered under this Act may, subject 10 the provision of this Act, by amendment of its by-laws change the fonn or the extent of its liability. (3) The word "Limited" shall be the lost word in the name of II Co-operaU\oe soc1ecy registered under this Act. 15. (I) No Co-operative society, the by-laws of which pennu admission as us member of a person carrying on transaction or business of the same kind or nature as carried on by its, shall be registered under this Act or v1ol11te the provisions of existing laws of the land. ('.!) In particular and without prejudice to the generality of the provisions of sub-section (1): {a) no Co-operauve credit society shall be registered if the by-laws thereof do no specifically debar admission as ilS member of a person who is a money lender by profession: (b) no consumers' Co-operauve society shall be registered If the by-laws thereof do not specially debar admission as its member of a person who 1s a grocer by profession; and 17 THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 1k Wesr Bengal Co-opera,ive Soc1eries Acr 2006. (Chaprer 11.-Regisrrarion.-St!crion 16.J (c> no industrial Co-operative society shall be registered 1f the by-laws thereof do not specifically debar admission as its member of a person who is carrying on, on his accounL or has any interest in. any business of the kind carried on by it: Provided that the registration of an industrial Co-operauve sociery shall nOI be refused merely on the ground that its by-laws provided for admission as its member of a person who is an ordinary artisan or a small entrepreneur carrying on business of the same kind carried on by it. (3) No Co-operative society established or organised for the promotion of the economic interests of any panicular community, class or group of people e1tclusively through any specific activity shall be registered if the by-laws thereof pennit admission as its, members of persons other than those to be directly benefited such activity (4) No Co-operative society established by tribal or fanners or females e1tclus1vely for 1he1r benefit shall admit as its member a person who is not tribal or fanner or female as the case may be. 16. ( I) An application for registration of a Co-operative society in Form as prescribed and its by-laws shall be submitted to the Registrar by hand or by registered post with acknowledgement due with one copy 10 the District Co-operative Union in the case of the Co-operative society having its area of membership within a district and to the Stale Co-operative Union in more than one Co-operative range. (2) Every such application shall be accompanied by (a) four copies of the proposed by-laws of the Co-operative society as adopted by the promOling members; (b) a list of names of the members with their addresses, occupations and equiry panic1pations and signatures; (c) a list of members of the first board elected by the promoting members; (d) a true copy of the minutes of the meeting at which the by-laws were adopted and election was held, duly signed by the chainnan; and (e) o scheme of the project, if any, to be undenak:en by the proposed Co operative society. (3) Every such application shall be signed by at least ten individuals from different families in the case of a proposed primary Co-operative society and by the authorised representatives of at least five primary Co-operative societies in the case of a proposed Federal Co-operauve sociecy: Provided that in the case of a housing Co-operative sociery the number of applications shall not be less than eight &planOiion.-For the purpose of this sub-secuon, a family shall be deemed to consist of husband, wife, minor sons and daughters dependant widow of a predeceased son, mmor sons and daughters of a dependant widow of a predeceased son, husband's and wife's dependant parents and dependant divorcee daughter. (4) The State Government may prescribe the extent to which a Co-operative society shall limit the minimum number of its members. (5) The Registrar shall register the Co-operative soc:iecy and also its by-laws and communicate by hand or by registered post with acknowledgement due I.be cenlficate of registration in Form as prescribed and a copy of the registered by-law, within siitty days from the date of receipt of the application to the applicant or the chief promoting member. A copy of the certificate of registration in prescribed fonn may be sent to the District Co-operative Union of the State Co-operative Union as the case may be. (PART Ill PART ill] Co-open,11,c IO<ltty 10 be body <O<p<'<"IU. THE KOLKATA GAZE1TE. EXTRAORDINARY. MAY 25, 20IO The Wut Bengal Co-optraJi~·e Societiu Act, 2006 (Chapter I/.-Regis1ration.-Sect1ons 17, /8.J Provided that m the case of a housing Co-operauve society the Registrar shall register the Co-operative soc1ery and its by-lows and communicate by hand or by registered post with the acknowledgement due lhe cenificnte of registrnuon 1n Form as prescribed and the copy of the registered by-la,H within ninety days from the date of receipt of lhe application to the applicant or the chief promoung member with a copy to the District Co-opernuve Union or the State Co--operatJ\ e Union. as the case may be: Provided funher 1h01 the certificate of reg1strauon, ~o issued. shall be conclusive evidence that the Co-operauve M)Ciety menttoned is a Co-operative society duly registered under this Act· Provided also that 1f the Registrar requires any paniculnrs or paper; for disposing of the applicauon referred 10 m sub-,;cction (I). he shall fonhw1th call for such paniculars or papers from the applicant or the chief promoung member. (6) The Registrar. if the condiuon laid down in sub-sections (I). (2J nnd (3) and such other conditions ns may be prescribed ~ not fulfilled. shall communicate b) hnnd or by registered post with acknowledgement due the order of refusal together with the reasons therefor. within the period as menuoned in sub-section (5) to the applicant or the chief promoting member with a copy to the District Co-operouve Union or the State Co-operative Union. as the case may be. (7) In case no communicauoo is received by the Co-operative ~tety within m.ty days or by the housing Co-operative society wuhin ninety days from the date of submission of the application from the Registrar under sub-section (5) or in the case of refusal under sub-section (6), the Co-operative society shall have the right to appeal to the Co-operative Registration Council referred to in section 95 within one month from the date of expiry of the said period or from the date of receipt of the order of refusal. as the case may be. agwnst such non-receipt of information or refusal from the Registrar and the registration Council shall dispose of the appeal within two months from the date of receipt of the same: Provided that similar procedure shall also apply in the case of amendment of by laws of the Co-operauve society. (8) If the registration of a Co-operauve society and its by-laws is refused, the registrar shall transfer the application to the Co-operauve Registrauon Council wi1h his comments and shall inform the applicant or the chief promoting member tn ,Hiling within one month of e:i1piry of 1he afore,aid penod with a copy 10 the District Co operall\e Union or to the Slate Co-operative Union. a~ the case may be and the Co operative Registration Council shall decide the matter within three months from the da1e of receipt of the same. (9) After registration of a Co-operative society. the first board shall continue till election of the new board in the fu-st annual general meeting. 17, (I) The registration of a Co-operative society shall render II a body corporate by the name under which n is registered, having a perpetual succession and a common seal and the Co-operative society ihall be entitled to acquire. hold and di.'>posc of propeny, to enter inlo contracts on its behalf. to insutute and defend suit~ and other legal proceedings. and to do all other things necessary 10 achieve us objectives. (2) All transactions entered into in good faith prior 10 registratio~ ofw pu~e~ of the Co-operative, shall be deemed to be transactions of the Cc,-opera:ive societ) after rcgmn11ion Dilp!ay 01 name. JS. (I) Every Co-opern1ive society shall display us name and the address of m registered office along 11, ith the registration number 10 legible characterm a conspicuous posili,,n (a) at every office or pince at which it carries on business. (bl in all nouces and other official publications: 19 20 Amendmenl of by-law, By-Llws. TIIE KOLKATA GAZETTE, EXTRAORDINARY, MA Y 25, 2010 The Wt>st Bmgal Co--opera1ivL' Socit>tits Act, 2006. (Chapter 1/.-Rt>gistralion.-St>ctions 19, 20.) (cl on all its contracts, business lette~. orders for goods, invoices. statements of accounts. receipts and letter~ of credit: and (dl on all bills of exchange, prom1sory nO!es. endorsem ents, cheques and orders for money it signs or that arc signed on its beha lf. (2) The name of every Co-operative society shall contain the words 'Co-operauve' and 'limited' or their equivalent in the official languag e of the State. 19. (I) A Co-operative society, may, by resolution in general meeting, adopted by two-lhird of the total members or delegates or represe ntatives amend its by-laws. (2) An application in prescribed fonn for registration of amendment shall be forwarded by regi~tered post or by hand to the Registrar w ithin a period of thirty days from the date of adoption of resolution. (3) Every application forwarded to the registrar shall be sig ned by the chainnan and two members of the board and shall be accompanied by the following paniculars: (a) in case of partial amendment, lhrcc copies of st:1tem ent showing the existing by-laws and the proposed amendment of by laws and thret copies of the =olution approving the amendment: (b) m case of complete amendment by substitution of an ent ire set of by laws. three copies of the new by-laws and existing by laws and three copies of the resoluuon approving the substitution; (c) the date of the general meeting in which the amendm ent was approved: (d) the date of the notice issued for the general meetin g; (e) the number of members having the right of vote pre sent at such general meeting; and (f) the number of members who voted for the resolutio n. (4) Procedure for disposal of application for registration o f Co-operative societies, as provided in this Chapter shall apply to disposal of applic ation for amendment of by-laws in complete or panial as may be considered by the Registrar. 20. (I) By-laws to be made on such specific matter w hich the Act has provided for and under the provision of this Act on such other ma tters and such by-laws shall nO! be valid unless they have been registered under the Act. (2) Subject to provision of this Act, the function of every c o-operative society shall be regulated by its bye-laws. (3) The by-laws of lhe Co-operative society may provide for the following matters as may be decided by the general body: (a) Identification of the Co-operative (i) the name. address and registration number of the co operative: (i1) the custody and use of the common seal; (iii) the area of membership. (b) Objective and services (i) the objective of the Co-operative explicitly stated as a common central need of the members which the co-operative aims at fulfilling: (ii) the co-operative principles slated in this Act, accord ing to which the co-operative shall conduct its affairs; [PART IIJ PART 111] THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25, 2010 ~ West Bengal Co-operari,·t Societiu Act, 2006. ( Chapter ll.-Registration.-Stcr,on 20.} (iii) key service and support services 10 be pro\·1ded 10 11s member. to fulfiU the common centr.11 need Slllted in the obJective, (1v) the conditions under which the sernces may be pro\ ided to non members. (c) Capital and funds (i) the nature and amount of share capital if any of the co-opcrauve and 1he manner in which the capital may be raised: (1i) the mrut1mum capual 10 which a single member can subscnbe: (iai) the na1ure and ex1en1 of the viability of the member for 1he debL~ conl.rtlCted by the co-opcrauve. (iv) the sources and type and ex1en1 of funds 10 tic raised by 1he co opcrauve· (v) the purvoses for which the funds to be utilized. (vi) fixation of maxunum ra1e of d1v1dend; (vii) the ex1en1 and conditions under which deposits. loan~. debentures. and other fund may be mobihud. (viii) cond1uons and purposes for -...hich state aid and aid from financial 1nsti1uuons may be sought for and obtamed, (ix) the constttution of various funds, reserves and theu- purposes; (x l the manner of disposal of surplus and bad debt: (xi) mode of investment: (xii) custody of funds. (dJ Membership: (i) eligibili1y to ob1ain membership and the tenns of admission of members: (ii) conditions for continuing membership: (iii) procedure for obtaining membership: (iv) procedure for withdrawal and transfer of membership; (v) procedure for 1emtinntion of membership: (vi) circumstances under which membership ceases; (vii) procedure for cessation of membership; (viii) cligibili1y of a nominal member and the terms on which a co operauve may deal with a nominal member: (ix) nomination by member. (el Members' right and obligation (i) the rights and liabilities of the members: fia) fixa1ion of minimum pcrforman~e expected annually of each member vis-a-vis use of services. financial commttmem. participauot1 in meeting .. nd adherence 10 by-laws. in order to be eligible to exercise the rights cf member..hip including the 11gh1 to vote; <,ii I the cor.s-eq•1cnces of performing b(-low 1he minimum lc-,el Ii ~.-d; (iv J t:.e cor'5e(luen.."C of default in P3ymem of any due b:, a memh.-r :!I THEKOLKATA GAZETIE. EXfRAORDINARY, MAY 25, 2010 The West Bengal Co-operative Socitties Act, 2006. (Chnpttr I/.-Reg1srrar1on.--Secrton 20.) (f) General boch (i) the role of the general body and subJects which shall be tlcalt with by the general body: (ii) the manner of convening the annual general mecung. half ; early general meeungs. and special general meeungs, 1he mode of communicauon of the intima1ion of these meetings and quorum required and holding general mee1ing with delegates or rcprescnta1ives; l11i) the procedures and power; of the general mee1ing: (1v) the frequency of 1hc general mcctmi, 1 v) the mode of summon mg and conducting mee1ings and the righ1 of v01ing, (vi) the procedure for conduct mg election 1n case the co-opcra1i,·es fail to do so: (vii) the minutes of proceeding of general meetings: (viii) the size. composilion and constitution of the board of director;: (ix) eligibility of becoming a director; (x) eligibility for re1aining dircc1orsh1p; (xi) the tenns of office of the directors, cbainn1111 and other office bearers, (1t1i) the procedure for removal of director and filling up of vacancies: (xiii) the manner of convening board mcc1ings and quorum !hereof; (xiv) the frequency of board mee1ings; (xv) functions. power, responsibililies and duties of the board; (xvi) func1ions. power, responsibil111cs and duties of the Chairman, vice chairman, treburer and secretary (when !he secretary is nOI a chief executive) and the chief excculive by wha1ever designation he may be called and directors. (g) Chief exccuuve and s1aff (1) the per-on qualified 10 be appointed as chief execuuve by wha1evcr dci.igna1ion he may be called and olher officers and staff and their emolument: (ii) the manner of appointment and removal of chief execuuve, other officers and staff: (iii) the func1ions, power. responsibiliiics and du1ics of the chief exccu1ive. other officers and staff; (iv) pcnahics for ac1ing agnins1 the interest of the co-operatives and its members and non fulfillment of duties by members, directors, chief executive, other officer and staff: (vJ !he authonza11on of an officer or officers 10 sign documents, institute and defend suit and Olher legal proceedings on behalf of the co-operative: (vi) procedure for drawing up disciplinary proceedings againsl the chief executive, Olher offficers and staff (h) Finances (i) the manner of appomlmem of internal auditors and their functions and duties: (ii) the deb! equity rallo that the co-operauve wishes 10 mainlllin and the maximum ex1emal deb1 that a co-opera11ve wishes 10 pennil i1sclf a1 any poml of lime; (PART llJ PART Ill] Trarufct of...., .. 11ld habihucs and dl\tl\100 11.nd amataam.u,on or C~pcrau"c SOi:lthU. TiiE KOLKATA GAZElTE. EXTRAORDINARY. MAY 25. :!010 n1e \Vest Ben.11al Co-opuative Societies Act, 2006 (Chapter 111.-Change of liabi/ir,es, transfu of assets and diiuion and amalgamation of Co-opuativl' soc1e11u.-Section 21.J (iii) procedure for transfer of shares or 1nteres1 thereon b) a member· {iv) procedure for rcdemp1ion of shares held by lhe S1a1e Government: {v) procedure for transfer or payment of imeres1 on dea1h of member; (vi) lhe manner of disposal of funds if under liqu1da11on. (vii) guidelines for granung loans. de1ermination of normal and maximum credit of members and maximum loan admissible to a member 10 case of a co-operauve: (viii) purpose for which loans may be gramed. {ix) extension of penod of repaymem and renewal of loans: {x) the 1erms on which a co-operouve may assocrn1c.- wilh other co operative: (xi) the righ~. 1f any, which lhe co-oper:uive ma:,- confer on On} co-operative. and federal co-operauve of which ii is a member and circums1anccs under which such rigblS may be exercised; {xii) lhe procedure for appoin1ing illld changing represenumve to other co-opernuve and federal co-operauve: (xiii) mode of keeping the accounlS of the C()-(lperative. (i) Olher maners {i) lhe terms on which a co-operative may deal with organizauons other lhan co-operative: (1i) rcstricuon, if any, on services of co-operative soc1eues: {iii) setllemen1 of disputes; (iv) supply of copies of by-laws and of the annual balance sheet and annual profit and loss accounlS to members: ( v) formation of self-help group of people in the area illld conduc1 of education and tnuning programmes. CHAPTER lll Change or Uabilltlcs. transfer or assets and division and amatgamatloo of Co-operative societies. 21. {I) Any Co-operative society may, by a resoluuon passed by a majorily ot 001 less lhan 1wo-L111rds of the members thereof present illld voung a1 a general or special general meeting (a) transfer, wholly or 10 par1. ilS assets and liabilities to any other Co operative societies; or {b) divide uself 10 form 1wo or more new Co-operative societic~. (2) Any 1wo or more Co-operative societies may. by resolution ras-.ed by 001 less 1han 1wo-lhirds of the members present and voting a1 a general or srcc1al general mceung of each such Co-operative sociery, amalgama1e themselves and fonn a new Co-opemive society 1ogether w11h the assclS and liabiliues as certified by 1he Audie Officer of the Co-operative societies forming such new Co-opera11,t' society (3) A resolution passed under sub-section {I) or sub-sec1ion !'.!1 st,3.11 con1ain :ill particulars relating lo lhe registration tran~fer of a•scts and Ji3bili1ies as cemficd b) the Audi1 Officer and division or amalgllllllltion. a.s 1he c= may be, of 1he concerned Co-operativt' SOCICl!es. 24 THE KOLKATA GA ZETTE. EXTRAORDINARY, MAY 25, 2010 ~ We.rt Bengal Co-operative Societies Act, 2006 . (CIUJpter 111.-Change of liabilities, transfer of ass ets and division and amalgama1ion of Co-cperarive socieriu.-Section 21.) (4) When a resolution has been passed under sub-secti on (I) or sub-section (2), the Co-operative society or the Co-operative societies concerned shall give notice thereof in writing to all its or their members and credi tors, within thirty days from the date of the general or special general meeting, as th e case may be, at which the resolution is passed and notwithst.anding anything contain ed in any by-law or contract, any such Co-operative society shall have option to with draw his share or deposit or any creditor of any such Co-operative society shall have option to demand repayment of his loan by such Co-operative society within one mo nth from the date of service of such notice. Such resolution shall not take effect unlll all the claims of the members and the creditors of any such Co-operative society who ex ercise option under this sub section have been met in full : Provided that no member, who 1s a debtor of a Co-opera tive society or is a surety for any other member in respect of any loan g,anted by a Co-operative society, shall exercise option to withdraw his share or deposit until th e debt or the loan, in respect of which he is the debtor or surety, as the case may be, is repaid in full with interest accrued thereon. (5 ) On receipt of an application for registration of a n ew Co-operauve society formed under sub-secuon (I) or sub-secuon (2), the Regi strar shall satisfy himself that the resoluuon is effective under sub-section ( I) and the application and by-laws of the Co-operative society are in accordance with the prov1s 1ons of this Act and the ru Jes, and shall. unless or reasons to be recorded in writing he t hinks fit to refuse, register the new Co-operative ~ociety and the by-laws under sub section (5) of section 16 and issue a certificate under section 16. (6) After a new Co-operative society formed by amalg amation of two or more Co-operative societies or by division of a Co-operative society has been registered, the registration of the Co-operative societies which a re amalgamated or the Co operative sociecy which is divided shall st.and cancelled an d such Co-operative societies shall be deemed to have been dissolved and shall ceas e to exist. (7) Notwilhst.anding anything to the contrary contained in any other law for the time being in forcc: (a) the registration of new Co-operative sociecies form ed by division of 11 Co-operative society sh11II be a sufficient conveyance to vest the assctS and liabilities of the Co-operative society, as certified by t he Audit Officer which is divided, in such new Co-operative societies in accordance with the resolution passed under sub-section (5) and a schedu le of such assets and liabilities shall be prepared and such schedule shal l form a part of the certificate under section 16; (b) when a resolution is passed by a Co-operative sociecy under sub section (2). the resolution shall, if accepted by the trans feree sociecy by a resolution passed by a majority of not less than tw o-thirds of the members present and voting at a general or special gen eral meeting of such society, be a sufficient conveyance to vest the nssets and liabilities of the Lransferor societies as certified by the Audit Officer in the transferee society, copies of such resolution of the transferor so ciecies and the transferee society shall be sent to the Registrar for recor ds; and (c) the regisLration of a new Co-operative society form ed by amalgamation shall be a sufficient conveyance to vest the assets and lia bilities of the Co-operative societies, as certified by the Audit Of ficer which arc amalgamated in lhe new Co-operative sociecy in acco rdance with the resolution passed under sub-section (2) and a schedule o f such assets and liabilities shall be prepared and such schedule shall for m a part of the certificate under section 16. [PART ill PART ID] P.,.,.mof Re4uuar1oonlet dJVlMOft, ~u::;::; Co-openo-. ..,. ..... THE KOLKATA GAZETTE, EXTRAORDlNARY. MAY 25, 2010 The West Bengal Co-operative Socu!tits Act, 2006. (Chapter 1/J.-Change of 1/abilitits, tran.sfer of assets and d1v1sion and amalgamation of Co-operative socittiu.-Section 22.) 22. ( I) Unless otherwise directed by the State Government and if the Registrar is sausfied after due consultation with the respecuve apex society in the manner prescribed that it 1s essential in the public interest or in the interest of Co-operative movement or for the purpose of securing the proper management of any Co-operat.ive society that any Co-operative society or Co-operauve societies should be divided, reorganised or amalgamated then notwithstanding anything conta.incd in sccuon 21, the Registrar may by o notice direct the said Co-operative society or Co-operauve societies stating therefor. to cause such division. reorganisation or amalgamation as the case may be. with such constiruuon. property. nghLS. interest. authonty. liabihues. duues and obligations as may be specified m the notice within three months of the date of the notice. If the ctirecuon is not acted upon or complied within the said period. the Registrar shall cause. in the manner prescribed. division. reorganisauon or amalgamation, as the case may be, of the concerned Co-operauve society or Co-operative societies by an order in wnung and communicate the order 10 all concerned and shall tSsue registrntioo certificate or certificates under sub-section (5) of sccuon I 6 in respect of the Co-operauve society or soc1e11es formed by division. reorganisauon or amalgamation, as the case may be. and the by-laws thereof framed by him: Provided thlll the Registrar shall not order amalgamation of a Co-operative society which has a total accumulated loss exceeding its asseLS with any other Co-operative society earning profit (2) No order shall be made under sub-section (I) unless: (a) a draft of the order has been sent to each of the Co-operative socieues in the prescribed manner inviting suggestions or objecuons. 1f any, within such period, not being less than lhree months, as the Registrar may fix in behalf: and (b) the Registrar has considered the suggestions or objccuons, 1f any. received from the Co-operative societies or from any member. class of members. creditors or class of creditors thereof, and made such modification in the draft as he may deem fit (3) An order made under sub-section (I) may contain such incidental. consequenual or supplemental provisions as may, in the opinion of the Registrar, be necessary for the purpose of the division. reorganisation or amalgamation as the case may be. (4) Every member or creditor of any of the Co-operative socieues to be d1v1ded. reorganised or amalgamated, who bas ftled objections under clause (a) of sub-secuon (2) shall be entitled 10 tcceive after the order has been made under sub-section (I) his share or deposit. if he is a member, or the amount in satisfoctioa of his claim. if he 1s a creditor: Provided that no member, who is a debtor of Co-operative society or is a surety for any other member in respect of any loan granted by a Co-operative society, shall exercise option to withdraw his share or deposit until the debt or the loan in respect of which he is the debtor or surety, as the case may be. is repaid in full with interest accrued thereon. (5) An order made under sub-section ( I) shall take effect (a) when no appeal from such order is preferred under section 146, on the expiry of the time allowed for preferring an appeal, or (b) where an appeal from such order is preferred under secuon 147 upon reJcction of the appeal by the appellate authority. 25 26 Amal&am&UOII of any Ccnlnl Co opcnuve Banl. w11hanyod1Ct Ccnlnl~ opcnuve Blnit o, .,,th S11te Ca opcnave Banl. THE KOLKATA GALETI'E. EXTRAORDINARY, MAY 25, 2010 The Wesr Bengal Co-operarive Societies Acr, 1006. (Chapter fll.-CIU111ge of llabilmes, transfer of assets nnd division and amalgamation of Co-operative rocieties.-Section 23.) (6) Notwithstanding anylhing to the contrary contained in any other law for the time being in force. and order made under sub-section (I) for division. reorganisation or amalgamallon shall, upon taking effect under sub-section (5) be a sufficient conveyance 10 vest the assetS and liabilities as per audited schedule of asset, and habiliues specified in the order and the Co-operative societies which arc divided, reorganised or amalgamated shall be deemed to have been dissolved and shall cease 10 ex1Sl. 23. (I) If lhe State Government is of opm1on that (a) m the public interest. or (b) in the interest of the depositors, or tc) in order to secure proper management of any Central Co-operative Blllk . or (d) m the interest of the Co-operative movement in the State as a whole. or (cl in the interest of the Co-operative banking system in the S1a1e as a whole. Of CO to make Co-operative credit, ndequately available 10 the primary Co operative credit societies of any particular area in the State from the S1a1e Co-operative Bank, it 1s necessary so to do, the State Government may. by an order published in the Official Gazelle stating reasons therefor, make a scheme for the amalgamation of any Central Co-operative Bank (in this section hereinafter referred to as the transferor bank) with any other Central Co-operative Bank or the State Co-operative Bank (in this section hereinafter referred 10 as the transferc:c"bank). (2) A scheme referred 10 in sul>-scction (I} may provide for all or any of the following ma!lers. namely (a) the transfer of the business, propenies (movable and immovable) assets (including cash balance and reserve funds). rightS, privileges. liabilities, debts and obligations of the transferor bank to the t:ransferee bank. on such terms and conditions as may be specified in the said scheme; (b) the reduction of the interest of rightS, which the members, depositors and other creditors have in or against the transferor bank before it~ amalgamation. 10 such extent as the Slllte Government considers necessary in the public interest or in the interest of the members, depositors and other creditors of the transferor bank or for the maintenance of the business of such bank, having due regard 10 the proponion of the assetS of the transferor bank to its liabilities; (c) the payment in cash or otherwise 10 the depositors and other creditors in full satisfaction of their claims (i) in respect of their interest or rights in or against the transferor bank before or after its amalgamation; or (ii) where the interest or rights as aforesaid in or against the transferor bank hns or have been reduced under clause (a) in respect of such interest or rights as so reduced; (d) (i) the allotment of shares in the transferee bank to the members of the transferor bank against the shares held by them in the transferor bank before the amalgamation, whether their interest in such shares has been reduced under clause (b) or not; or [PART Ill PART Ill) THE KOLKATA GAZETTE. EXTRAORDCNARY. MAY 25. 2010 The Wes, Bengal Co-operative Societies Acr. 2006 (Chapter ///.-Change of /iabilitiu, transfer of asws and d1v,s1on and amalgamation of Co-opuati\·e socittits.-Stction :?3.) (ii) where the members of I.be transferor bank elect to receive payment in cash and not in shares of the transferee bank. or where it is not possible to allot shares in I.be transferee bank 10 such members against the shares held by them in the transferor bank, the payment 10 such members in cash in full satisfaction of their claims in respect of their interest in the shares of the transferor bank. or where such interest has been reduced clause (c) in respect of their interest in the shares as so reduced: Provided that the aforesaid scheme shall secure (i) that allotment of share or payment in cash in favour of the members of the transferor bank under clause (d) shall not be made unul all depositors and creditors of the transferor bank hove been paid under sub-section (c) or. as the case may be. under sub-clause (cl or clause (d): and (ii) that such allotment of shore or payment in cash in favour or the members of the transferor bank. shall be made only out of the surplus of the assets of the transferor bank. if any. that may be left after payment to the depositors and creditors as mdicated m sub clause (i); (e) the continuance of the services of the employees of the transferor bank in the U'allsferee bank on terms and conditions of service not being less advantageous lhan those LO wtuch they entitled immediately before the amalgamation: · Provided that the transferee bank may not by an order m "nung allow any employee lo the IJ'llJlsferor bank 10 continue in lhe services of the bank if. in the opinion of the transferee bank. the conunuance of such employee m its service would be detrimental 10 its interest. and thereupon the services of such employee shall stand tenni nated on and from the dote· of such order. and the transferee bank shall. within three months of the date of the aforesrud order, made payment Lo such employee. such compensation as such employee may be entitled under any law rel.aung lo the industrial disputes in force in the State and such pension. gratuJty. provident fund and other retirement benefits as arc ordin:uily admissible to him under the rules of the transferor bank in force immediately before the amalgamation. (3) (a) An order under sub-section (I) shall not be made unless a copy of the proposed order including the scheme is sent Lo the transferor bank and the transferee bank calling upon such banks 10 invite objections or suggesuons from the members. creditors and depositors thereof and to submit such objections and ~uggestions together with their own suggestions and objections, if any, 10 the State Government within six weeks from the date of receipt of the copy of the proposed order by such banks. (b) The State Government shall consider the suggesuons and objections which ma} be received under clause (a) made such modifications m the proposed order including the scheme as 11 thinks JUSt and fit and finahse the proposed order including the scheme in consullation with lhe Reserve Bank of fnd1a (4) An order under sub-section (I) may contain such incidentul. consequeminl or supplemental provisions as the State Government may consider neces~ary to give effect to the proposed amalgamation and shall have effect on and from such date as may be S!'('Cified m the order. (51 On the commg into operation of any <cheme refcm:d tu m sub-!>Ccnon ( 11 the provi,ion~ thereof shall be bmdmg on the transferor bank. the 1ran\feree bank and all the member.,, depositor,;. creditorn and employees of both ,uch bank, and on anv p,:r..on having any right or liability in relation 10 \Uch banks. • 27 28 Change oC name and IU ClfOCl. f'romobono( •ubs"!'"l' orsan...uon. Pannenhip o/ Co-op,nuve societies THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 nie W,w Bengal Co-operative Societies Act, 2006. (Chapter fl/.-Change of liabilities, transfer of assets mid division and a111algama1ion of Co-operarive societies.-Sections 24-26.) (6) The provision of this section shall have effect, notwithstanding anything to the contrary contained elsewhere in this Act or in any other law or any agreement, award of other instrument for the time being in force. (7) Notwithstanding anything conlllined in the Transfer of Property Act, 1882 or the Registration Act. 1908 and order making schemes under sub-section ( I) shall be sufficient conveyance, in accordance with the provisions of this section, 10 transfer the assets and liabilities of the transferor bank to the transferee bank. (8) When by virtue of a scheme under sub-section (I) the assets and liabilities of the transferor bank have been transferred to the transferee bank. the transferor bank shall cease to exist and shall be deemed 10 have been dissolved. (9) Notwithstanding anything conlllined in any other law for the time being in force, an order under sub-section (I) shall not be called in question in any Court. ( 10) lf in accordance with the provision of sub-section (1) the State Government is of opinion that any unit of the Slllte Co-operative Bank or a Central Co-operative Agricultural and Rural Development Bank should on being ceded from the Slllte Co operauve Bank or the Central Co-operative Land Development Bank, be reorganised as a Central Co-operative Bank or Primary Co-operative Bank, Agriculture and Rural Development Bank. as the case may be, the State Government shall direct the Registrar to effect such reorganisation by dividing the State Co-operative Bank or the Sl8te Co-operative Agriculture and Rural Development Bank, as the case may be, and forming a separate Central Co-operative Bank or Primary Co-operative Agriculture and Rural Development Bank, and thereupon the Registrar shall divide the State Co-operative Bank or the Central Co-operative Agriculture and Rural Development Bank and form a separate Central Co-operative Bank or Primary Co-operative Agriculture and Rural Development Bank, as the case may be, in accordance with the provisions of section 22. 24. (1) A Co-operative society may. with the previous approval of the Registrar, by a resolution passed at a general meeting change its name by two-third majority of members present and voting. (2) A Co-operative society shall communicate its new name by the Registrar and the Registrar shall enter the new name in the relevant register and shall make necessary corrections in the certificate of registration issued under sub-section (5) of section I 6. (3) The change of name of a Co-operative society under sub-section (I) shall not affect any right or obligation of such Co-operative society or of any member or past member (including a deceased member) thereof, and any legal proceeding pending before any authority, tribunal or coun by or against such Co-operative society may be continued in its new name. 25. (I) Any Co-operative society may, by a resolution passed at a general meeting by a two-third majority of members present and voting, promote one or more subsidiary organisation for the furtherance of its stated objectives, and such organisation or organisations may be registered under any law for the time being in force, as agreed to by the general body. (2) The annual reports and accounts of any such subsidiary organisation shall replace before the general meeting of the promoting Co-operative societies each year. (3) Any subsidiary organ.isation created under sub-section (I) shall exist only as long as the general body of the Co-operative society deems its existence necessary. 26. Any two or more Co-operative societies may, by resolution passed at general meetings by a majority of members present and voting in each such Co-operative society, enter into a contract or ponnersbip for carrying out any specific business permissible under the by-laws on such terms and conditions as may be mutually agreed upon. Where such partnership requires the creation of a new organisation, the participating Co-operative societies shall be its members. (PART llJ 4 oC t88l, 16 of 1908. PART DI] Cen<Bl body of Co-ope1111hc society Final authonty or Co-ope111thc soc.1c.ry. Annual a<nc111I mcc11n1. THE KOLKATA GAZE'ITE. EXTRAORDINARY. MAY 25. 2010 The West Bengal Co-opera1ive Societies Acl, 2006. (Chap1er N.-S1arus and managemenl ofCo-opera1ive sociery.-Su1ions 27-29.) CHA.PTERIV Status and management of Co-operative society 27. (I) The general body of a Co-operauve society shall consist of all the members of such sociery. (2) Where the by-laws of n Co-operative society provide for consutution of a smaller body consisting of delegates of members of the Co-operauve society elected in accordance with such by-laws. the smaller body shall exercise all powers of the general body m a general meetmg. (3) Where other Co-operative societies are members of a Co-operative sociery. the reprcsenllluve from the members Co-opcrauve societies elected in a meeting of respective boards of such Co-opcrnuve societies shall exercise all powers of the general body in a general meeting. 28. Subject to the provisions of this Act, the final and ultimate authority of a Co-opcrntive sociery shall vest in the general body of its members or its delegates or reprcsenllltives elected under section 29 of this Act and assembled in a general meeting: Provided thnt where the by-laws of a Co-operative society so provide for repre sentation of self-help group in any meeting of the general body of the Co-operative sociery, such self-help group shall be represented through one of 1ts members elected in a meeting of the self-help group. 29. (I) Every Co-operative society shall hold a general meeting of its members or delegates or representatives in every Co-operative year in accordance with a fixed programme as mentioned in the table below and such general meeting shall be called the annual general meeting: Table Category of Co-operative Period during which the society annual general meeung to be held {a) all primary Co-operative April. May and June societies (b) all central Co-operative September societies (c) all apex Co-operative December societies (2) An annual general meeting shall be convened by the secretary or any other officer authorised by the board in accordance with direction of the board. (3) Unless otherwise provided in the by-laws, all notices of the rneeung stating the place, date and hour of the meeting together with the smement of business to be transacted at it, shall be sent to every member or delegate or representative not less than rwenry-one days before the date of the meeting. (4) Any accidental om1ssion to give notice to any member or delegn1e or representative or non-receipt of the notice by any or a few of them shall not invalidate the proceeding of the meeting. 29 30 THE KOLKATA GAZETTE, EXTRAORDrNARY, MAY 25, 2010 The West Bengal Co-opera11ve Socitflts Act, 2006. (Clrapttr IV-Status and managtmtnt o/Co-operotivt sociery,-Section 29.J (5) The agenda of the annual general meeung shall be as follows; (a) elecuon of directors of the board. 1f any· Provided that such elecuon shall be held once in every five Co operative years: P"Ovided funher that after consmut1on of the Co-operative Election Commission. such election shall be held m an annual general meeting or a special general meecing under the provision of sections 29 and 31 . (b) confinnauon of the proceedings of the last half-yearly and annual general meeungs and special genera.I meeting, if any; (c) consideration of the annual rcpon prepared and presented by the board; (d) consideration of the latest audit repon and comphancc thereof and audited statement of accounts referred to m secuon 98; (e) approval of the annual budget, (f) considerauon of any repon of inspection or inquiry made in accordance with the provision of this Act and by-laws, 1f any'. (g) consideration of matters relating to loans and advances given to the directors and their relauves and action to be taken for recovery thereof m case of default: (h) approval of appointments, if any, of the relatives of directors of the board other than those selected by the Co-operauve Service Commission. (i) creation of specific reserves and other funds and review of the actual deployment of reserves and other funds; (j) distribution of net profit. 1f any; (k) review of operational deficit or loss and consideration of the plan to make good the losses, 1f any; (I) approval of the long-term perspecuve plan and annual operational plan: (m) fixation of borrowing hrrut as may be necessary: (n) approval of code of conduct of members of the board formulated b} it (o) amendment of by-laws, if any; (p) expulsion of members, 1f any: (q) consideration of such other matters as specified in by-laws: (r) consideration of any other matter which may be brought at the meeting as miscellaneous items in accordance with the provisions of this Act and by-laws of the Co-operative society. (6) On the failure of the board to call the annual general meeting within the period as mentioned in sub-section ( 1). the apex Co-operative society or the federal Co-operative society or the central Co-operative society. as the case may be or where there is no such society the Registrar shall call or authorise any of his officer to call the annual general meeting within a period of three months from the date of expiry of the period so mentioned. (7) If in a general meeting, election as referred to 10 clause (a) of sub-section (5) of section 29 cannot be held owing to an order of any coun or for any other reasons or 1f the directors of the board elected in such general meeung cannot funcuon owing to an order of any court. the apex Co-operative society or the federal Co-openiuve society or the cenlnll Co-operative society, as the case may be, or where there 1s no such society, the Registrar may constitute a board of directors from amongst the members or delegates or representatives of the Co-operauve society in conlonni1y with [P"RT Ill p. RT lll) Holf-yurly ge11CBI mecton1. Special Jeneral mccuna THE KOLKATA GAZETTE, EXTRAORDINARY. MAY 25, 2010 Tk West Bengal Co-operative Societies Act. 2006. (Chapter IV.-Status a11d management o/Co-operarn·e soc1ery.-Sections 30. 3/.J section 32 and the constituted board shall elec1 its office-bearers from amongs1 them selves: Provided tha1 the board. so constinued. shall function till the direc1ors of the board elected under this section assume charge. (8) If the board of directors. constituted under sub-secuons (I) and (7). cannot funcuon owing 10 on order of any coun or for any other reason. the chief executive officer of 1he Co-opera1ive society or where there is no chief execuuve officer appointed by the State Government or the Registrar the highest designated employee of the Co-eperative society. by whatever name Clllled. shall manage the affairs of the Co-operative society till a board is in a position 10 function. (9) If the audit repon of the immediate preceding Co-operative year 1s no1 re ceived by the Co-operative society before the date fixed for the annual general meet ing. the Co-operative society shall place the said audit rcpon in 1he next half-yearly general meeting or in a special general meeting. 30. (I) A half-yearly general meeting of a Co-operative society shall be called a1 any time after six months but within eight months from the date of last annual general meeting for the following purposes: (a) 10 review of the activities of the Co-operative society on the basis of the rcpon placed by the board; (b) to consider audit repon. if any: (c) 10 review financial position on the basis of provisional accounts; (d) any other item as may be specified in the by-laws. (2) A half-yearly general meeting shall be called in accordance with 1he provi sions of sub-section (I) of sec1ion 29. 31. ( I) A special general meeting of a Co-operative society may be called at any time for the following reasons: (a) where the board decides to call a special general meeung on urgenl matter or under sub-section (I) of section 29; (b) where at least one-third of the members or delega1es or representatives of the Co-operative society place before the board a requisition in writing for discussion and decision on a specific object including a call for adoption of resolution in a special general mee1ing for no confidence against the board or its reconstitution before the expiry of the full term of five years. (2) The secretary or the-chief executive or any director authomed by the board shall call the special general meeting under sub-section (I) within two months [rom the date of requisition under clause (b) of sub-section (I); Provided that on the failure of the Board to call special general meeting under sub-section (I). the Registrar shall call such meetings. (3) When a resolution in a special general meeung 1s passed for dissolution of the board and its reconstituuon. a subsequent special general meeung shall be called within two months from the date of adoption of such resolution for the purpose of election of directors of a new board, if the Co-operative Election Commission is not constituted and where the Commission has been constituted. the chief executive shall refer the matter to the Commission within seven days from the date of adoption of such resolution. The Commission shall hold election of directors of the new board within two months from the date of receipt of the reference. (4) The board constituted under sub-section (3) shall function till the e>..piry of the remaining period of the total term of five years: Provided that if the remaining period is less than six months. such elecuon shall be held w1thi n the period scheduled to be held as mentioned in ~ub-sec1ion ( I , ot section 29 and in such elecuon, all members of the dissolved board shall not be eligible to be elected to the new board 31 32 M1n11cmcnt or Co-<,pcrau,e IOCICUCi THE KOLKATA GAZETI'E. EXTRAORDINARY. MAY 25, 2010 71,t Hi-st Bengal Co-opera1i~~ Socitlies Acl, 2006. (Chapter /V-S1a111.s and managtmtnl of Co-optralivt socitrv.-Sectton 32. J (5) The hoard against which no confidence has been passed shall stand dissolved 1mmedu11ely after adoption of such resolution and the chief execuuve shall function in ac.:ordance with sub-secuon (8) of section 29 until a new board consututed under sub· section (3} assumes charge· Provided Lhat the chief executive shall not funcuon for more than one year. 32. (I) There shall be a board of directors for every Co-operauve M>C1ety to manage its affairs and the board shall consist of such number of directors as may be specified in the by-law\ of the Co-operative society. The directors shall be included in the board m the following manner to consmute 11 (a) bv election of directors in accordance with the provisions of secuon 29 f;om amongst the members or delegates or representllt1ves of the Co opcrati ve spc1ety· Provided that the number of directors to be elected by the members of a Co-opcrnuve society shall not be less than six or more than fifteen Provided further that where the number of members of Co-opcrauve society is less than twelve. the number of directors shall not be less than three or more than six (b) where the State Government has (i) subscribed to the share capital of a Co-operati\·e society: or (1 i) guaranteed the principal and interest in respect of debentures issued by a Co-operative society; or (iii) guaranteed the principal and interest in respect of loans and advances to the Co-operative society: or (iv) assisted the Co-operauvc society with loans and grants out of 1ts own fund, the State Government or any authority specified by 11 may nominate one person on the board or change them or fill up any casual vacancy of a nominated member; (c) the chief execuuve of the Co-operative society shall be an ex officio director. (d} the employees of a Co-operative society having not less than five emplo)ecs may elect one person amongst themselves for being a director of the board; (e) a Gram Panchayat, coru.tuuted under the West Bengal Panchayat Act, 1973. may nominate one of its members on the board of a primary Co-operative society doing business within the jurisdiction of that Gram Panchayat. A Panchaya1 Samiti constituted under the said Act may nominate one of its elected members on the board of primary Co-operative society or central Co-operative society doing busrness in the area covered by more than one Gram Panchayat within the Jurisdiction of the concerned Panchayat Samiti. A Zilla Par1shod constituted uader the srud Act may nominate one of its elected members on the board of the central Co-operative soc1et>· or a Co-operative agriculture and rural development bank doing business in the area covered by more than one Panchayai Samiri within the jurisdicuon of the Zilla Parishad; (f) any financial bank which finances a Co-operauve society may nominate one person on the board of such Co-operative society: (g) professionals not exceeding two may be co-opted by the bo.Jrd .. Exp/onotion.-"Professi,,nals·· mean, and includes Chartered Accouniant. Cost Accountant, En!!mcer. La"' yer. Graduate in Agnculturc or \-ctennary. Ma,tcr of Bu\ine,s Adm1nistrat1on. l\las1cr of Compu1cr [PAll'T 111 We.a Ben A\.'.1 XU of 1971 P11lfT Ill] THE KOLKATA GAZE'TTE. EXTRAORDINARY. MA) 25. ~010 n,e nest Bengal Co-opuam·e Societies Ac1. 2006. (Chap1u /V.-Sta111s and managemem o/Co-operc11ivt! soden·.-Section 32. ) Application. Bachelor of Computer Application or 8.ichelor of Medicine and Bachelor of Surgery; (h l in pnmary Co-<>perauve societies and primary co-operative bank, dis pensing credit including women's co-opcrauve credit societie, and women's co-operative banks" hich hove promoted self-help groups com posed of women sh311 have a woman nwmber. elected from among,t the self-help groups by the members of such self-help groups m an clccuon to be conducted by the societtes concerned. in the board of director.. of \OCiet). (2) No person shall be elected. nommated or co-opted as a dtrector under sub .c(lion t 1 ). if he is a defaulter in repa}'mc:nt of any loan granted by or tn repaying price of any commodity purchased on credit from a Co-openmve society. Government and other statutory authority or has been convicted by any competent coun of lnw for criminnl offence of moral curpitude or of any offence under this Act and sentenced to fine or imprisonment or both. (3) No act or proceedings of a board shall be invalid merely by reasons of ab sence of any nomination under clauses (b). (d). (e). (f) and (g).or absence of the chief executive under clause (c) of sub-section (I) for any reason what.soever. (4) (a) The director referred to in clause (d) of sub-section (I) shall hn\.e no right 10 vote in any meeting of the board. (b) The directors referred 10 in clauses (c). (e) and (g) of sub-section (I) shall have no nght to vote in any meet mg of the board for electfon of office-bearer (c) The directors referred to in clauses (c). (d). (e) and (gl of sub-sec11on (I) sh~II not be any office-bearer of the board. (5) (a) A director elected or nonunated under sub-section (I) except the chief executive shall hold office throughout a Lenn of five years of the board or till the board is dissolved under sections 34 or 35 or 36 whichever 1s earlier. Provided that a director under clauses (d) and (e) of sub-section ( l) ~hall not be eligible for re-election or nomination. as the case may be. within a period of five years from the dale of expiry of his tenn of office Provided further tha1 a director under clause (c) of sub-section (I) shall not be entitled to attend any meeling of the board. if he is suspended or punished in a depan menLBI proceeding or a depanmenLB.I proceeding against him is pending. (b) A director under sub-section ( l) sha.11 before taking charge of his office. tnke oath or affinnation in tJie prescribed Forni before the reruming officer or clecuon of ficer or the Registrar. (6) (a) No director who has been an office-bearer for two co nsccuuve temt~ or 120 months. whichever 1s less. shall be eligible for re-election as an office-bearer until after expiry of live years of the next Lenn: Provided that an office-bearer who resigns or becomes disqualified before expiry of the tenn. he shall be deemed to have served the full Lenn of five years (b) No member of a board shall be eligible to be elected as an office-bearer of a Co-operative society. 1f such member is a Minister of the State Government or the Central Government 33 34 Dc:putauon or Govemmcnl officcn 10 man•&c the 1ffain nf Co-ope:rau-..c .ac-iety. THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 The West Bengal Co-operative Societies Act. 2006. (Chapter TV-Status and management ofCo-operatfre socitry.-Section 33.) (7) No member of a CCH>peralive society shall be eligible for being elec1ed on 1he board if (a) he h:is been adjudged by competent coun to be insolvent or of unsound mind. (b) he has been convicted by a coun of nny cnmmal offence including moral 1urp1 tude or of any offence under this Act and sentenced 10 fine or 1mpnsonrnent or both; 1c:l he holds an> office of profi1 in the Co-opera1ive society: Provided 1hat a member of an industnal Co-operauve society corn· posed of arusans or workmen or of a t.r:mspon Co-operative society com posed of persons who live on manual labour, skilled or unskilled or of an engineers' Co-operauve society or of a Co-operative society established by lribals m receipt of salaries or wages from such category including labour and service Co-operative societies shall be eligible for being elected on 1he board of the rcspecuve category of Co-operative soc1e1y; (d) he has any interes1 in JnY business of the kind carried on by the Co operauve society: (e) (i) he is an individual, and is in default of payment of loans or pnce of goods received by him on credit from the Co-operauve society on the dale of filing nomination or on the date of elecuon. as the case may be; (ii) he is an individual representing a Co-operative society which is in default of paymem of more·than fony per cen1 of loans or price of goods received by it on credit from 1he Co-operauve soc1e1y in relation 10 the bonrd to which the elecuon relates on 1he date of filing nominauon or on the date of scruuny. as the case may be; (f) he has a d1rec1 or indirect mteresl in any agrecmenl or contrac1 to which the Co-operau ve society is a pany; (g) he received any salary from the Co-operative society excepl member of such societies which provide employment; (h) member disqualified under proviso to sub-section (4) of section 31. (8) No person at any time hold office as a director of the board in more than (:,,) four primary Co-operative societies: (b) two central CCH>perative societies: and (c) two apex Co-operative societies. 33. (I) The State Govemmem may, on the application of a Co-operau ve society supponed by a resolution of the board or the general body of 11.S members. depute oa such conditions and in such manner as may be prescribed, 11 Government officer to the service of the Co-operative society, to manage 11.S affairs. Such Government officer shall exercise such powers and perform such duties as may be prescribed: Provided that if there is a condition by the financing agency that the Stale Gov. ernmenl should depute 11 Government officer to manage the affairs of the Co-operative society for which assistance from the agency is give or the State Governmen1 has given financial assistance directly to the Co-operative society, the State Government shall. on 1he recommendation of the Registrar. appoint such officer. on such conc!J tions and m such manner as may be prescribed. Such Government officer shall exer cise such powers as may be prescribed. [P11RT 111 PAIIT ill) Diuolulloo and rccoMlll\lUon ofboetd o.s.olutu,n of the board and appo1n1men1 or adm1n1nra1or THE KOLKATA GAZE'ITE. EXTRAORDINARY. MAY 25. '.!010 The \Vesr Bengal Co-operative Socwres Act. 2006. (Chapter IV.-Status and management of Co-operative soclery.-Sectio1is ]4, 35.) (2) The Registrar may, on lhe application of a Co-operanve soc1e1y supponed by a resolution of the board or the genenll body of the members of 1hc Co-operative society, depute on such conditions and in such manner. as may be prescribed. a Government officer in respect of whom he is the appoinung authoriiy or recommended to the State Government for depuLDuon of a Government officer to the service of lhe Co-operauve society 10 manage its affairs. The Government officer so deputed shall exercise such pov.ers and perform such duties as may be prescribed. 34. (I) The Registrar may. ifhe is satisfied. for reasons to be recorded in wntmg. that the board of ony Co-operat1ve society 1s mismonagmg its affairs. under clause (a) of sub-section (I) of section 35. by order direct to call a special general mecung of the Co-operative society to dissolve the board and reconsutute u w1thm such periods may be specified in the order. Explanation.-For the purpose of this sub-section. the expression "mismanaging its affairs" shall include any act of wilfully disobeying or failing to comply with any lawful order or direction issued by the State Government or the Registrar. (2) In any direction under sub-section (I), the Registrar may. for reasons 10 be recorded in writing, order that all or any of the members of the board to be dissolved shall be disqualified for election to the board or for appointment as an officer of the Co-operative society for such period. not exceeding wee years. as ma} be specified m the order. (3) If the board is not dissolved and rcconstit\Jlcd in such manner and wnhm such period as provided in the order under sub-section (I). the Registrar may. after service of a notice upon the board and giving It opponumty of stating its objections of being heard. and after being satisfied. by an order in writing stating reasons therefor. dissolve the board, the directors of which shall fonhwith vacat.e their offices and the Registrar mlly appoint a board with the members of the Co-operauve society as he thinks lit to manage the affa.irs of the Co-operative society for a period of six months at a ume and may extend such period so. however. that the total period shall not exceed one year Provided that the Registrar shall reconstllute an elected board of direciors of the Co-operative society in a general meeting 10 be convened for the purpose 10 accordance with this Act. rules and by-laws within the tenure of office of the nonunaied board as specified in the notification so that such nominated board may vacate and the newly elected board takes over before expiry of such tenure 35. (I) If, on receipt of a report from the Registrar. the SLDLe Government is of opinion that (a) any board (i) has per.;istenlly made defaults, or has been grossly negligent. 1n the performance of its duties under this Act or the rules or the b)-laws. or (ii) has committed any act prejudicial 10 the interest of the concerned Co-operative society or the members of any other Co-operative society: or (iii) has wilfully disobeyed or wilfully failed 10 comply with any lawful order or direction of the State Government or the Reg1S1rar m;ued under this Act: or 35 36 DC>wluuon of Ille board ID ccnam Cl}.CJ and appcunlJ'ne.nl of special om«r THE KOLKATA GAZE1TE. EXTRAORDINARY. MAY 25. 2010 The Wtst Bengal Co-operorive Socit11ts Acr. 2006. (Chapter IV.-Status and managemenr o/Co-operati,·t socien·.-Secuon 36.J lb) the affairs and business of any Co-operative society has come 10 a qale matc due to persistent default or negligence in the performance of duties by its board. the State Government may. after service of a nouce upon the board and g1vmg It an opponunity for staling iis objections and upon heanng such objecuons. by a notificauon staung reasons therefor. d1s sohe the board. the directors of which shall forthwith vacate their offices and by 1he said noufication the State Government shall appoint one of its officers to manage the affairs of the Co-operJuve society who shall be called 1he administnuor. for a period not exceeding six months and may also. by notification e,tend such period so. however. that the total perio<l shall not exceed one year in any case: Provided that the State Government shall nol lllke any step towards immediate dlssoluuon of the board of directors of the State Co-opero11-e Bank or the Central Co-operative Land Development Bank or any Central Co-operative Bank or such other Co-operJUVC Barn. as comes within the [PART Ill provision of Pan V of the Banking Regulauon Act. 1949. without prior tOol 19-19 consultation with the Reserve Bank of India or the Nauonnl Bank for Agriculture and Rural Development. as the case may be: Provided further that the Registrar shall reconsurute an elected Board of Directors of the Co-operauve society in a general meeung 10 be convened for the purpose in accordance with the Act rules and by-laws within the tenure of the office of the administrator as specified in the noufication so thal he may make over h.is charge 10 the newly elected Bonrd before expiry of his tenure. (2) During the tenure of office of the administrator appointed under sub section (1) (a) all properties of the Co-operative society shall ves1 in the Registrar; and (b) subJCCI to the control of the Registrar and notwi1hs1anding the preferring of any appeal under section 147. the administrator shall exercise all the powers and perform all the duties which may be exercised or perforn1ed by the board or any officer of the Co-operauve society under this Act or the rules or lhe by-laws. 36. Notwilh,tanding anything to the contrary contained elsewhere in this Act or in any other law for !he ume being m force. Cal the board of direccors if any of the Co-operative societies mentioned in lhe Fifth Schedule shall. 1f 1he elecuon of iis thrcctors has no1 been held within a period of snuy months from lhe dace of their election under sub-secuon (I) of secuon 29. scand d1ssohed on and from che da ,c: 1mmed1ntely following lh<' date of expir; of t~e said period: tbi 'll.1th I feet from !he da1e of dissoluuon of !!:c.• board ui:der clau$c 1a), the d1recrnrs thereof shall be deemed to have vacated their offices: tc) upon lhe Jbsolucion of the board unJer clause (al lhe Stace G,>,cmml'nl on rcp<m from the Rt·g::.tl':lr by notificntioo, apf"'inl a Jpccial officer fr,,m ,mo1l~I 11s officers for manaiing I.he affairs of the Co,operauvc soc1et) for a period nor e:r.,.:eding sr~ mC'ntbs from the da1e c,i dissoluuon PART Til) Swnmoruna or mccun, or Co-op,rau•• iOCaetyand ruc1nd1n1 or su,pondula rC'S01uuon lhcRo( RuerYllion of IUl&onboarcl. THE KOLKATA GAZE1TE. EXTRAORDINARY. MAY 25. 2010 The West Bengal Co-opera/lee Societies Act, 2006. (Chapter JV.-Status and management of Co·opera11~e society.-S.:ctions 37. 38.) Provided that unul a special officer is appointed under this clause. the highest pnid execuuve of the Co-operauve ~oc1e1y. by whatever designa tion called. shaU manage the affairs of the Co-operative society. £xplana11on.-If there 1s any dispute as to who 1s the highest paid executive of the Co-operative society, decision of the Registrar thereon shall be final: (d) with effect from the date of dissolution of the board under clause (a} (i) all properues of the Co-operative society shall vest in the Registrar and shall remain vested till a new board assumes office: and ( i1) subject to the control and direction of the Registrar. the highe~t paid cxecuuve of the Co-operauve society or the special officer. as the case may be. shall exercise all the powers and perform all the duties which may. under this Act or the rules or the by-laws. be exercised or performed by the board or any officer of the Co-op ernuve society: Provided that the Registrar shall reconstitute the '1oard in the manner laid down in the prO\'ISO 10 clause (a) of sub-~cction (5) of section 29. before expiry of the penod of six months and the board so reconstituted shall assume office 1mmcd1ately on such reconsutution. 37. Notwithstanding anything contained m the by-lnws of a Co-operauvc society. the Registrar or any person authorised by him specifying reasons in wnung in his behalf. may. at any ume. direct the Chairman of a board or the Chief Executhe of a Co-operative society to summon a meeting of the board with such agenda and within such time as may be specified in the direction. If the Chairman or the Chief Executive, as the case may be. fails to summon the meeting and furnish the proceedings thereof to the Registrar or lhe person authorized within a week of holding of such meeung. the Registrar or the person authorised by him shall summon the meeting of the board and such meeting shall be deemed to ha\·e summoned in accordance with the by-laws of the Co-operative society and shall be competent to transact such business as may be specified in the summons. 38. The State Government may, by notification stating reasons thercfor. provide for reser. ation of not more than one-fifth of the seats on the bonrd of a Co-operative society for such community. c l= or group of persons which. in the opmion of the State Government. arc socially. economically or edcucat.ionaJly backward. 37 Jti Addrc,s of Co opcrat,\c sor1t.ty. Pu•crof St.lie Go, tmmcnt 1u IUUC dtrC(ll\lC Boouand ~umcnbto b< open IO 1ft\p(COOO b)' fflC'mbcn Aflihat.aon I<' Su« and R<&IOMI C<> opcrau,c Un10n. Appotnur.cnt u( pc:nont. 1nt.M kl"•cc ot a Co t,perau-.c iuc.1cl) THE KOLKATA GAZE'ITE. EXTRAORDINARY. MAY 25. 2010 n,e West Bengal Co-nperative Societies Act. 2006. (Chapter V.-Durres and obligations of Co-opuatn:t societies.--Sec1io11s .1 9-4--1.J CHAPTER\ Duties and obligations or Co-operative Societies 39. ( I) Every Co-operauve society shall mcnuon in the by-laws 11 s nddre~~ ind1ca11ng place of business. post office. police sllltion. district which sha ll be taken to be the registered office of the Co-opcrauve society to which all noucc, and communica1ions may be sent (2) A change of the regisrered office shall be reponcd by the Co-operau ve SOCI· cry along 11.1th the resoluuon of the board by regisrcred posr with ackn owlcdgemenr due or by hand deliver) with acknowledgemenr 10 (a) the Registrar; (b) the Director of Co-operative Aud11: (c) financing bank. if any: (d) the CCH>perarive socieiy to which this Co-operauve society is affili ated: (e) the Reserve Bank of India, by a Co-operative society coming under the [P,.RT Ill pumew of the Banking Regulation Act. 1949 10 or 19-19 40. The State Government may for the reasons to be recorded in wriung an d after ! !iving the Co-operauve soc1ery an opponumty of being heard at any time i ssue d1recuve 10 any Co-operative society or any class of Co-operative socieri~ 10 modi fy ii\ policies in the manner specified in such directives or to raxr such other acuon as the Stare Government may consider necessary or exped1en1 in the in1eres1 of such Co-operat1 \'e society or clas~ of Co-operative soc1eues or of Co-operaU\'e movement in general. 41. Ever) Co-operauve society ~hall keep open to inspccrion by its me mbers. free of charge. during office hours. at its address. such books and orher documen rs as may be prc...cribed and cenificd copies thereof shall be supplied by ii 10 its mem bers on payment of rhe prescribed fee. 42. ( I) Every Co-operative society shall be required to be affiliared to be Sune Co-operanve Union or the District Co-operative Union. as the case may be, an d rhe central society or the respective apex society, as the case may be, on paym cnr of the prescribed affiliation fee. periodical fee. subscription or contribution to share capital. as the case may be. and shall be required to be so organised as 10 promote the obj ect ol the Co-operarive socieucs 10 which u 1s affiliated. (2) Non-compliance with the provision~ of sub-secuon (I ) shall be pu nishable with such penally. nor eitceeding five hundred rupees. as may be prescri bed. 43. ( I) The Board of a Co-operative society may, from rime to rime. c reate posrs of differenr cacegones of employees 10 assis1 rhe Co-operauve sociery in the pertor mance of its duucs and discharge of its function and such creation of po sts shall on)} be mode w11h prior approval b} the general body. (2) The Boan! of a Co-operuuve sociery shall appoint, subJCCI 10 the pr ov1s1ons of this Act. the Rules and the by-laws, such officer and other employees in respect of which the posts are created under sub-section ( I). 44. A Co-operative society may receive deposits and loans to such exteni and under such conditions as may be prescribed PART 111] Issue or d<ben1111u Vnun1ofbsclS or Co-openll\'C soc11:1y 1n TnalCCI l.lpvll LUUC Of debenture I l>Ut or bonds lnueof pttftrtJICC-. THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 Tht i~~st Btngal Co-opuativt Socitllt'S Act, 2006. (Chapter V.-Dutits and obligations of Co-operative societits.-Sec1ions 45-49. I 45. (I) A Co-operative society may receive loans by issue of debentures or one or more denominations repayable within twentyfive years and such debentures shall not be issued or reissued save with the express authority of the State Governmem. (2) The issue or reissue or debentures shall be ~ubject to the following cond1t1ons: (n) that such debentures are secured by mortgages or any other secunty hl.c Hypothecation of assets, Government secunues and others as ma} be prescribed. held by the Co-operauve society and assigned 10 the trustee or secured by Gehan under section 55. nnd (b) that the tollll amount payable m respect of the debenture does not eltceed three-fourths of che cotal value of the mortgage ex any other secuncy hke Hypothecacion or assets. Government securiues and others as may be prescnbed, held by the Co-operauve society and assigned to the trustee. (3) The State Government shall guarantee the principal and interest on the debentures. subject to such condition as it may be laid down. The State Governmem shall appoim the Regist.rar or nny other person as trustee for securing the fulfilment of the obligations of the Co-operative society to holders or the debenrures. The trustee so appointed shall exercise the powers and perform the functions of a trustee laid down m the Indian Trusts Act. 1882 ::? orissi ( 4) The Stace Government may, by order, declare chat the debentures issued under sub-section (I) shall be deemed to be securities within the mearung of section 20 of the Indian Trusts Act. 1882. The form of the debentures and any subsequent modification therein shall be subject 10 the previous approval of the State Government. 46. Upon the issue of debentures under sul>-secuon (1) of secuon 45, the assets of a Co-operative society (including any mortgage which 11 holds by accepcance. nssignmem or crnnsfer) shall vest in the Trustee and the holders of debenrures shall have a floating charge on all such assets (including the amounts paid under such mortgage and remruning 1n the custody of the Trustee or the Co-operative society) 1111d on other propemes of the Co-operative society. 47. (I) No1w1thstanding anything contained elsewhere in this Act. a Co-operauve credit society may. wich the prior approval of the Scace Government and subject to its by-laws. borrow money by issue of bonds in conformity with such directions or ins1ruc1ions as may be given by the Reserve Banlc of India from time to ume. (2) The bonds shall be m the form of promissory notes repayable on the expiry of such period, from the date of issue thereof, as may be approved by the Reserve Bank or lnd.ia· Provided that the board may repay the amount due under the bonds 10 the holder~ thereof at any ume before the expiry of the aforesaid period after 1SSuing a notice in ~uch manner as it may direct in this behalf. (3) The provisions of section 45 shall. with such modificauons as may be made by the State Government in consultation with the Reserve Ban.k of India, apply to the borrowings under sub-section (I) of this section. 48. ( 1) Notwithstanding anything contained elsewhere in this Act, the State Co operative Banlc and the Central Co-operative Banks may issue preference share to persons friendly and supporting the cause of Co-operative movement at a fixed rate of dividend and on such cenns. as may be decided by general body of such banks subject 10 pnor approval of the Reserve Bank of India. (2) The preference shareholders shall have no righc to auend the general mccung and for election as directors of the Board of the bank. (3) The preference ,hareholders shall be eligible to the dividend due at the fixed race in respect of any period. whccher a dividend has been declared by che bank on such shures for such period or nor. 49. (I) Ao application for loan shall be in such fonn ns mu) be prescnbed bv the bo~rd and shall suice the purpose for which the loan is required • 39 40 Po-or State GoVCl1IIIICIIIIO 11•• fUIIIICW uww,cc. Umllllioa. THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 The West Bengal Co-opera1ive Societies Mt. 2006. (Chapter V.-Duties and obligations of Co-operative soci1.'lies.-Sec1ions 5 0-53.) (2) A member of a primary Co-operative society applying for loan shall furnish a full statement of his (i) property and debts; (ii) a scheme in case of medium tcnn or long tenn loan; (iii) annual e,cpenditurc incurred and proposed to be incurred; and (iv) surplus available for repayment of the loan applied for. (3) For every loan, a member shall furnish such security as may be required under the by-lows of the Co-operative society. SO. (I) A Co-operative sociccy may grant loans 10 its members subject 10 provision of section 49: Provided that a Co-operative society may also grant loans 10 its member s. self help groups for lending its members against the surety of the group. (2) A Co-operative society eltcept a Co-operative bank may gram loans and advances to a member against a tangible security. (3) A Co-operative sociccy may, with the approval of the general body , grant loans 10 any other Co-operauve society which is not its member agains t a tangible security. (4) A Co-operative society may grant loans and advances 10 a non-m ember depositor against the secu.rity of his time deposit OOl eltcecding ninccy pe r cent of lhe deposiL (5) A Co-operative society may grant loan to a member thereof belon ging lo economically weaker sections as prescribed at a concessional rate of interes t and against a lower scale of securities irrespective of the value of shll!"CS held by them . 51. Notwithstanding anything contained in any other law for the time being in force, the State Government may, subJecl to the rules, (a) grant loans 10, take shares in, or give financial assistance in any of uer fonn to. any Co-operative sociccy; (b) guarantee the payment of share capital of any Co-operative society and dividends thereon at such rates as may be specified by the State Government; and (c) guaraniee the repayment of principal and payment of interest on lo ans and advances to any Co-operative sociccy. 52. Notwilhslanding the provisions of the Limitation Act, 1963, the period of limitation for the institution of a suit to recover any sum (including interes t thereon) due to a Co-operative sociccy by a member thereof or any person having transaction with the Co-operative society shall be computed from the date on which such member or person dies or ceases to be a member or, as the case may be. closes transact ion with the Co-opcrati ve society. 53. (I) Notwithstanding anything contained in any other law for the tim e being in for-cc but subject lO the provisions of the West Bengal Agricultural Cred it Operation Acl, 1973 and to any claim of the Slllte Govem.ment in respect of land r evenue, any debt or outstanding demand owing to a Co-operative society by any me mber or any past or deceased member of such Co-operative sociccy shall be a first charge u pon the lands, crops or other agricultural produce, canlc, fodder, agriculru.ral o r industrial implements or machinery, raw materials, finished products, house or bui lding or any portion thereof belonging to such member or past member or fonning pan of the estate of such deceased members, as the case may be. {2) No person shall transfer any property which is subject to a charge und er sub section (I) e,ccept with the previous permission in writing of the Co-opera tive society which holds 5UCh ctwge. (3) Notwithstanding anything contained in any other law for the time b eing in force. any transfer of property made in contravention of sub-section (2) sh all be void. (4) TIie charge created under sub-section (I) shall be available against an y claim of the Suue Government arisina from a loan granted under the Land Im provement Loans Act. 1883 or the Agriculturists' Loans Act. 1884 after the gran.1 of t he loan by a Co-operative society. . (PART lll l6 orl96l Wci;tllffl.Act XXXIV of 1973 19or 11183 12 of 188-4 ClwJcon immovable propcny of memben borrowln1 from «IUln Co-opcnlb .. IOCICIY, Loon by Cl<lwl. THE KOLKATA GAZETIE. EXTRAORDINARY. MAY 25. 2010 The West Bengal Co-operative Societies Act. 2006. ( Chapter V.-Dutiu and obligations of Co-operative socittits.-Sections S4, .5.5.) 54. Notwithstanding anything contained in I.his Act or in any other law for I.he time being in force. (a) a member who makes an application for loan lo a Co-operative society of which the majority of I.he members are agricuhurisu shall. if he owns any land or has interest in any land as a tenant. make in I.he prescribed fonn a declaration that he thereby creaies a charge upon such land or interest as may be specified in the declaration for repayment with interest of the loan or of the future loans. if any. I.hat may be granted to him by the Co-operative society from time to time; (b) a declaration made under clause (1) may be varied or cancelled by the member at any time with the consent of I.he Co-operative society; (c) the land or the interest upon which a charge has been created under clause ( a) shall not be transferred by the member until I.he entire amount of the loan including interest bas been repaid by the member: Provided that nothing in I.his clause sha.11 apply to such pan of the land or interest as has been released under clause (e) from the charge created under clause (a): (d) any transfer made in contravention of clause (e) shall be void: (e) if the member repays a pan of the dues on accouni of any loan and makes an opplication for release of the land or interest from the charge created under clause (a). the Co-operative society may, with the approval of the central bank or concerned region of the State Co-operative Bank 10 which it may be indebted and having regard to the security of the ouutanding amount of the loan and the interest thereon. release from the charge such portion of the land or the interest as it may deemed proper. 55. ( I ) Norwithstanding anything contained in this Act or in any other law for the time being in force, if any member owning any land or other immovable property or having interest in any land or otherwise being in lawful occupalion of any land (including a share cropper), who has not borrowed money under section 54, makes an application to a Co-operative credit society for loan, he shall by declaration in the prescribed fonn create a special charge to be called Gehon in favOl}f of the Co-operative credit society on such land or other immovable property or his inlerest therein 10 secure paymen1 with interesl of the loan to be granled 10 him for the prcsenl and in future by the said Co-operative credil society on such application and any other loan that may be granted 10 him by 11 from time to time so, however, that the total amount of all loans lllken together does not exceed the maximum limit fixed by il and for payment of interest due on all such loans and expressly rese.rving in favour of the Co-operative credit society a right of sale without intervention of court in case of default. The Gthan shall take effect from the date of its execuuon. (2) Notwithslllnding anythtng contained in the Registration Act. I 908, it shall not be necessary to register a Gehon: Provided that when a Gthon has been executed in favour of primary Co-opera-tive credit society for repayment of any loan, the manager of the primary Co-operative credit society or any officer deputed by the State Government or the Registrar under secuon 33 or the financing bank which advances the loan 10 the primary Co-operative credit society shall send a copy of the Cehan to the registering officer havingjurisdic-tion over the loan or pan thereof or other property and the registering officer shall like such copy in his book No. I prescribed under section 51 of the Registration Act, 1908. (3) An officer deputed by the State Government or the RegislJ'llJ' under sccuon 33 shall administer the oath, where necessary, for affirming or swearing the declara-tion under sub-section (I). (4) A Cehan shall be deemed 10 have created an interest in the propeny to which the declaration relates and shall constitute notice 10 any one dealing with such property. (5) The provisions of clauses (b), (c) and (d) of section 54 shall apply to a Gehon and the provisions of sections I 20. I 23 and 124 shall apply mutatis mutandis to a Gehan. 41 U~lh;,itaon or the ukp,occcd Owi• •nd kt ofr ol "1arc> and 1n1crc.\.l1 Dedu..uon ~r tl~SIOCl\.o opcram,e )OC1C.hc.: from mcmb<rs>N! )l;t'C(lt"S. EJ<cmpuon from rompul>Of'!' rc11Stnth.an of lft1lrUmtnlJ :!::L~~!:rci or Co•openu\le M><octy anJ mor1111i- deed• ueculed ,n f1,our of Co ope:t"IJJve •anailrul!l and rural de:\'c~ Jnpment bank or pnm.vy Co opcnt1\C 10C1cty THE KOLKATA GAZE1TE. EXTRAORDrNARY. MAY 25. 2010 The Wt>sr Bengal Co-opera111•e Soc1e11es Arr. 2006. I Chapter V -Durit.f and ()b/iga1io1Lr of Co-operative mr1t>1ies.-Sec1ions 56-60 .J 56. The registrar ~hall appoml a ~ale officer for conducting the sale m respect ot the land covered b1, declara1ion under Ge/ran under sccuon 55 in case of defoull T he sale officer shJII c~nduct the sale in the prescribed manner 57. Out or 1he sole proceeds of a sale under sccuon 56. the land revenue or any sum recoverable as a public demand shall be paid fim and 1hen any amount due to t he agnculture :ind rural developmenl bank on accounl or any ouistandmg loan from t he bank and 1hc amounl p:iyable 10 the Co-operative society logether with the cost incurr ed tor efiecung the sale shall be pa.id. Thereafter the dues 10 1he cred11or shall be pard un d 1he residue. if any. shall be p:ud 10 1hc debtor. 58. ( I) A Co-operauvc soc1e1y shall have a charge upon the shares or ,merest:. in the capital and depmi1s of a member (including a pas1 or decellSed member) and up on the amounl payable out of profit 10 a member or past member or 10 1he esiate of a deceased member on account of any debt due 10 it by such member or past member or deceased member. as the case may be 12> SubJe.;1 10 the provisions of sections 70 10 73 and the rules and lhe b)-lau.s. a Co-opemtive society may SCI off any amount credi1ed or payable ton member or pa st member or the c~lale of a deceased member towards payment of an:,- debt referred 10 in ,ub-~ecnon t I l. 59. ( I ) A member of a Co-operauve society may execute an agreement in favour of the Co-operative society providing thal his employer or the drawing and d1sbur..m g officer where applicable shall be competent to deduc1 from the salanes or wages a nd reunng grJ1u11y or death gr111uity payable 10 him by such employer or the drawmg a nd disbursing officer where applicable such nmoum as may be specified m the agrecme ni and 10 pa} the amount 10 the Co--0perative society 10 satisfaction of any debt or oth er demands of the Co-operauve society against the member A copy of such agreeme m shall he furnished 10 the employer or lhe drawing and disbursing officer whe re apphcablc. (2) Upon the execution of lhe agreement under sub-section ( I ). the employer or 1he draw mg and disbursmg officer where applicable shall on the requ1siuon of the C o opera1he socie1y in writing and for so long as the Co-operauve society does no1 mumate that the debl or demand has been fully paid, make lhe dcducuon in accordance w11h t he agreement and pay 1he amount to the Co-operauve sociely within fifteen days from 1 he dale of ~uch deduction as if II were pan of the wages payable by him under lhe Payme nt of Wage Ac1. 1936 on the date on which he makes the paymen1. (3) If 1he employer or 1he drawing and disbursing officer foils 10 malce the deduction under sub-section (2) or defaults in making payment 10 the Co-operati ve socie1y. he shall be liable 10 make the payment to the Co-operative soc1e1y 1ogeth er with interest at twelve per cent per annum and the enlll'e amount shall be recoverab le from 1he employer or drawing and disbursing officer by the Co-operauve society as an arrear of land revenue and such amoum shall rank in pnonty ,n respect of lhe hablli ty of the employer or drawing and disbursing officer as wages in arrear. 60. (I) Nothing m clauses (bland (c) of sub-section (I) of seciion 19 of 1he Regis1r.1tion Acl. 1908. shall apply: (a) any mstrumem relaung 10 shares ma Co-operative society: or (b) any debenture issued by any Co--0pcra1ive soc1e1y w1thou1 creating, declaring. assigning. limiting or exunguishing any right. utle or 1n1eres1 to or in any immovable property except in so for as ii entitled the holder of the debenture to lhe sccuri1y by a registered instrumem whereby lhe Co-operative society has mongaged, conveyed or otherwise transferred lhe whole or part of iis immovable propeny or in1eres1 therein to trustee upon lTUSt for the benefit of the holder of the debenture: or (c) any endorscmenl upon. or transfer, of any debenture issued by any Co operative society. (P.\RT Ill • or t9J6 loor 1908. PART Ill] Po,.cr 10 rcnul dutie4, (cci. e1c, and 10 ''""' p,t(Cf't"J"C Ind u~mpl11 Comprorru,e Of arranae.mcnt bctVi-cen Co operau vc wc1ecy and 1u ct<duor THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 Th,. \\es, Bengal Co-opera11ve Socie11es ACI, 2006. (Chap1er \ -Du1ies and obligations of Co-opuanve socierin-Sec1ions 61. 62.1 (2) Notwilhs!.Wdmg anything contained in the Reg1wnuon Act, 1908. it shnll lonr , .. ,K not be necessn.ry LO register n mongage deed executed in favour of a Co-operative agriculture and rural development bank or a pnmary Co-opernuve of which the major 11} of lhe members are agriculturists Provided lha1 the manager of any Co-operative agriculture and rurnl develop ment bank or the financmg bank which advanced loan to the primar} Co-operau~e society shall send a copy of lhe mongagc deed to lhe reg1stenng officer within the local hmits of whose junsd1ction the whole or any pan of lhe 1mmovable propeny 1~ situated and t.he registenng officer shall file such copy 111 his book no. I prcscnbed under ~ecuon 51 of the Registrauon Act. 1908. •.3) A copy of mongage deed referred to m sul>-section (21 of secuon 60 dulv cenified by the manager or branch manager, shall be sent to the registering officer through a messenger or by registered post with acknowledgement due within thin}' days from the date ol its c,ccuuon 61. (I) Where the State Government 1s competent to remit any tax. cess or Ice payable under any law for the time bemg in force. it may m the case of a Co-opcra1we society or class of Co-operauve socieues or a member of a Co-opcrnuve ~oc1et) rerrut such rax. ccss or fee by general or special order (2) (a) The State Government may. by nooficauon, remit the stamp-duty (other than the s tamp-duty falling wtthin entry 91 or entry 96 of List I of the Seventh Schedule to the Co~utuuon of India) in respect of any instrument executed by or on behalf of. or m fovour of. any Co-opernthe society or a class of Co-operative soc1etie: or an officer or member thereof and relating to the business of such Co-operauve society or such class of Co-operative socieues m cases where but for such remission ~uch Co-operau ve society or class of Co-operau ve socicuc:. or the officer or member thereof would have been hable 10 pay the stamp-duty chargeable under any la"' for the ume being in force in respect of such instrument. Provided that such remission of s tamp-duty payable by any member of a Co operative housing society in whose favour a plot of land or a house or an apanment m a building is allotted orto "'horn such land. house or apanment is transferred. shall be made at the rate of one per centum of lhe market vo.luc of such land. house or apart ment, as the case may be: Provided further that m no case such remission. as referred to in the first proviso. shall exceed an aggregate amount of twenty thousand rupees. (b) No remission of fee for registration of any document payable by any member of a Co-operative housing society in whose favour a plot of land or a house or an apartment in a building 1s 11.llotted or to whom such land. house or apanment 1s trans ferred. is o.llowed. (3) No such remission under clause (a) or clause (b) of sul>-sccuon (2) shall be made in the case of purchase or acquisition of any house or flat already constructed or under construction from any private promoter by the persons. who subsequent to such purchase or acquisition form a housing Co-operative society or m the case of any subsequent transfer of any plot of land. house or flat of any housing Co-operative society by a member under the provision of section 88. (4) Notwithstanding anything conllllned in any other law for the ume being m force. lhe State Government may. by geoeral or special order. grant preference and exemption in respect o f any Co-operauve society or class of Co-operative socieues in the interest of promotion of Co-operative movement in the state as may be prescribed 62. The settlement shall be made between Co-operatj~e society and its crednor by the Board to be ratified by the General Body. 43 44 Ad.mus.on u mc.mbcr, THE KOLKATA GAZE'ITE. EXTRAORDINARY, MAY 25, 2010 TM We.rt Bengal Co-opera1ive Societ/e.s Act, 2006. (Chapter VJ.-Member of Co-operalive .socletie.s and their duties, rights, accountability, Priviltgts an.d liabilitits.-Sections 63, 64.J CHAPTER VI Member of Co-operative sodclles and their duties, rlpts, 11CCOW1tablllty, Privileges and llabUJUes. 63. ( I) Subject 10 the by-laws, the following persons shall be eligible for membership of a Co-operative socicty: [PART Ill (a) an individual competent 10con1r1Ct unda-scction ll of the Indian Contract 9 or 1112. Act, 1872 and a permanent resident of India: (b) any other Co-operative society: (c) the Stale Government; (d) a self-help group; (e) any financing bank: Provided that a student who has not anaincd the age of majority according to the Jaw shall be eligible for membership of Co-operative society formed in an education institution to which he belongs. (2) An employee of the Co-operative society who is eligible under sub-section ( I) 10 be its member shllll on an application made by him be admitted as a member of such Co-operative society but shall have no right 10 vote at an election of or for being elected as a director of the board or delegate 10 any other Co-operative society: Provided that an employee member of an engineers, labour, industrial, service. lJ"llllsport and the like Co-operative societies shall have right 10 vote at en election of or for being elected as a director of the board or delegate to any other Co-operative society. (3) Notwithstanding anything 10 the contrary contained elsewhere in this Act, a Co-operative society may admit fan applica1/on] any person. any association or body of persons (whether incorporated or not) as a nominal member who shall not be entitled 10 any share in any form in the assets or profit of the Co-operative society and shall not be eligible to be elected as director of the board and shall have no right 10 auend the general meeting of the Co-operative society but shall have such right and privilege end shall be subject 10 such liabilities of a member as may be specified in the by-laws. (4) Notwithslllnding anything lO the contrary contained elsewhere in this Act, a Co-operative society may admit the joint members and may issue a single share in their joint names. Such members shall, except in such case11 as may be prescribed. ordinarily enjoy privilege jointly, but voting right shall be exercised by the first named member and in his/her absence by the other member. (5) Notwithstanding anything contained in sub-section ( I ), no Central Co-operative society shall hove right 10 admit individuals lO its membership otherwise than as nominal members in terms of sub-section (3) and the existing individual members shall be deemed 10 be nominal members for lhe purpose of this Act: Provided that the cllisting individual members of a Central Co-operauve society shall have right 10 withdraw, after serving three months notice on the Co-operative society concerned. the share capital contnbuted by such members within one month from the date of acceptance of such withdrawal and the concerned Co-operative society shall refund the same to such members after deduction of the debts, if any, due 10 the concerned Co-operative society from such members. 64. ( I) Any person eli&lble for membership under sub-section (I) of section 63 may apply to the Co-operative society for admission as a member thereof in the form and manner as prescribed. PAJrr £Ill THE KOLKATA OAZETFE. EXTRAORDINARY. MAY 25. 2010 The West Bengal Co-operative Societies Act, 2006. (Chapter Vl.-Mtmber o/Co-opuative socielits and thtlr duties. righls, accountabiliry, Privileges and liabilities.-Sections 65~.) (2) Every application for membership shall be disposed of by the Co-operative society within a period of fony-five days from the date of receipt of application. The decision of the Co-operative society on such application shall be communicated to the applicant within fifteen days from the date of such decision. If no such communication is received. the application shall be deemed to have been accepted on the expiry of sixty days from the date of receipt of the application by the Co-operative society. (3) No Co-operative society shall. without sufficient cause refuse admission to any person duly qualified for membership under this Act and the by-laws of the Co-operati~ society. Where the appljcation is so refused. the decision with reason shall be communicated by registered post or by hand delivery to such person within fifteen days from the date of decision. Any person whose application for membership has been refused by the Co-operative society may appeal to the Regisu-ar within thiny days from the date of receipt of the decision communicated to him. (4) The Registrar shall dispose of the appeal within sixty days from the date of receipt of the appeal and pass such order, as he thinks fit and such order shall be final. Voca ohncrnbcn. 65. (I) Every member ofa Co-Operative society shall have one vote on any matter Udlisadoo of loom. uabihtyo( mrmbcn. that is put to vote in the affairs of the Co-Operative society in a meeting. (2) Every member of a Co-operative society shall cast his vote in person. (3) In the case of equality of vote in meeting the Owrman shall have second VO(e. (4) Where two persons are joint members of a Co-Operative society, the first named joint member or in his/her absence, the other joint member may anend the meetings of the Co-operative society and shall have right to vote at such meetings: Provided that both the joint members shall no1 attend the meeting at a time. (5) A Co-Operative society which is a member of any other Co-Operative society (hereinafter referred to as the later Co-operative society) may by adopting a resolution in the board. authorise any of its members who is not otherwise disqualified for being so authorised under thjs Act or the by-laws to vote at any meeting of the later Co-Operative society: Provided that no member of a Co-Operative society shall exen:ise his right as such member till he has made such payments to the Co-operative society in respect of his membership or has acquired such interest in the Co-operative society as may be provided by rules or by-laws. 66. A loan granted by a Co-operative society co a member thereof shall be utilised by such member for the purpose foe which it was granted. lf the Co-operative society is of opinion that the loan has no< been utilised for the purpose for which it was granted. it may direct such member in the prescribed manner to refund the entire amount of the loan, and the amount shall be refundable forthwith. 67. Nocwithstanding anything contained in any law for the time being in force but subject co the provisions of section 58. the share or interest of a member in the capital of a Co-Operative society or in the provident fund established under section 83 shall not be liable to attachment or sale under any decree or order of acoun in respec1of any debt or liability incurred by such member, and a.ither the Official Assignee under the Presidency-Towns Insolvency Act, 1909, nor the receiver under the Provincial Insolvency Act, 1920. shall be entitled to. or have any claim on, such share or interest 68. The members of a Co-operative society sball. upon the dissolution of the Co-operative society, be jointly and severally liable to contribute towards any deficiency in the assets of the Co-operative society, {ai> 0 the Co-operative society is a Co-Operative society with unlimited liabfflty, wilhout limit: 411d 45 46 uab1l11yofp1>1 mcmbc:ror the: ,w, of decukd mtmbtr Oupo.&l of dt<:ta.td mtmbtr'ulwe or 1n1crc11 THE KOLKATA GAZETfE. EXTRAORDINARY. MAY 25, 2010 Tht "-~sr Bengal Co-optra11vt Societies Act, 2006. (Chapter Vl.-Mtmber of Co-operative socie11ts and their duues. righ,s, accountability, Privileges and liabilities.-Sections 69, 70.) (b) if 1he Co-operative society is a Co-operative society with hmiled liabih1y, subject to such limitation as may be provided in the by-laws: Provided that where any shares of a Co-operative society are purchased by the Slate Govemmem or by any other Co-operative society, the liabihty in respect of such shares shall, upon the dissolution of the Co-operauve society. be lim11ed to the amount paid in respect of such shares 69. The liability of past member or the estate of a deceased member of a Co-operauvc society for debts of the Co-opera11ve society as they existed on the date of ceasing to be a member of the Co-operative society or on the death of the member. as 1he case may be, shall continue for a penod of five years from the date or 1111 finalisation of the legal proceedings, if any. sUIJ'ted within the period of five years as aforesaid: Provided that 1he legal heirs of the deceased member shall be liable for his debts to the ex1en1 of the estate inhented by them and such debts are recoverable from the legal heirs; Provided further that where a Co-opcrauvc soctciy is directed to be dissolved under section 107 within the period offive years as aforesaid such liability shall continue until the proceedings for dissolution of the Co-operative society are complCJed by the liquidator. 70. ( I) On the death of a person who 1s a member of Co-operauve society. his share or interest in the Co-operative society shall, subject 10 the provisions of secuon 58 and 72 and to the funher provisions of this section. be 1ransferred (a) 10 I.he nominee, if any; made under secnon 76: or (b) if there is no nominee or if the existence or residence of the nominee cannot be ascertained by the board or if the nominee does not claim possession of such share or interest or 1f for any other reason, the IJ'!lnsfer cannot be made within one year from the dnte of death. to the person who ( subject to the production by such person of probate, lener of adnunistrauon or succession certificate issued by a compe1en1 court having jurisdiction) appears 10 the board to be entitled to the possession of such share and interest as per of the estate of the deceased member; or (c) on the applicauon of the person referred to in clause (b), withm one year from the date of death of the member to such person as may be specified in the application. (2) If the share or interest of n deceased member cannot be transferred in accordance with the provision of sub-section (I) or if the person to whom such share or in1erest is payable under that sub-section claims payment of the value of such share of interest or if the Co-operative society in accordnnce with its by-laws decide to proceed under this sub-section I a) the share shall be transferred 10 a person qualified to be a transferee of the share under secuon 72 on receipt of the value of the share from such person: and Cb) i..~e value of the share or the interest of the deceased member determined in :;..:cordance with its by-laws shall be paid 10 the per<,on ,,ominated under· section 76 or 10 the person referreJ ro clause cb) of ~ub-\ccuon (I) of this section nfter deducung the amount payable under this Act 10 the Cc-opernuve society from the e~toic of the deceased member. [PART Ill PART Ill] 01<po .. 1 of ,hare CM'tRICCUIOf me.mberon capulm.MI or ,c.~11n.at1<>n or on b«om1n1 in.ainc. Re1tnc11on on lran.1,fcr o( ('OSl,tuu'>nof :snJ U\.ICfC)I In land held un.S.r Co oper.au ... c \OC1et)· Dupoul or ,h.,., or 1n1crc\t or mcmbcro, d,nohtd Co-optrlU\C soc,c1y THE KOLKATA GAZE1TE. EXTRAORDINAR). MAY 25. 2010 The Hest Bengal Co-operative Societies Act. 2006. ( Chapter Vl.-Membtr of Co-operative societies and their duties. rights, accountability, Privileges and liabilities.-Stctions 71-73.) 71. When n member of a Co-operauve sociely is expelled or rei.igns in accordance with its by-lnws or becomes insane, his share or interest in the capiLal of the Co-operauvc soc1e1y shall be transferred 10 a perwn qualified to be a tr1111s1crec of such share or 1n1eres1 under sec1ion 77. and the value thereof shall be paid to the member afier deducung his dues. if any or in the case of his becoming insane. to such person as may be appointed by the competent authomy 10 manage his properucs under the Menial 3, or 1q~, Health Act. 1987 within two years from the dale on which the member 1s expelled or re,igns or the person as aforesaid 1s appointed. as 1he case may be. 72 Notwithstanding anything contained elsewhere in this Acl or in any other law for the time being force: (a) a member of a Co-operative socie1y. the obJCCl of which 1s the reclama11on or acquisition of land and leasing !hereof 10 its members. shall not be entitled 10 transfer his possession of. or in1ercs1 in, any land held by him under the Co-operative society excep1 to the Co-operauve society or with 1ts previous approval in accordance with its by-laws, to a new member 1hereof; (b) when 1he membership of a member of a Co-opera1ive society referred 10 m clause (11) tenrunates by reason of death, expulsion. resignauon, insanity or any other cause. his po,scssion of or inierest in, nnd land held by him under the Co-operative society shall vest in his heir, execuior or administrator or in the person. if any, nomma1ed by tum under secuon 76. 1f such heir, executor. administrator or person 1s wilting 10 be admined as a member of the Co-operative soc1e1y and is eligible for memberslup under section 64: (c) if the heir. e,cecutor. adrrumstrntor or person referred 10 in clause (b) doc~ not become a member of the C0--0peralive society. the pos~ession of. and in1eres1 in. the land including s truc1urc thereon. 1f any. of the deceased. expelled, resigned or insane member shall vest in 1he Co-operauvc society and the Co-operauve society shall pay 10 such heir. executor. administrator or person. as the case may be, a sum cqu1\'alem 10 1he \'alue of the land including the structure. 1f any. as deterrruned on 1he ba\1S of prevailin2 market price: (d) no land held by a member under the Co-operative society referred 10 in clause (a) or vested in his heir. execu1or or administrator or the per;on under clause {b).shall be 11uachable in any sui1 or proceedings for recovery of any debt other than a deb1 due 10 the Co-opera1ive society. 73. When an order 1s issued under section 106 for dissolution of a Co-operative socieiy which is a member of a Co-operative society wilh limited liabiluy and liquidator is appoinled under section 110. the liquidator shall transfer the share or inlerest of the Co-operative society being dissolved, subJcct to the provisions of sccuon 77, to any person or any other Co-operative society on rcceipl from such person or Co-opera1ive sociecy the vnlue of such share or intercs1 decennincd in accordance with the rules: Provided tha1 if the transfer of share or interest is not possible within a reasonable period from the date on which the order issued under section I 07 for d1ssolu11on of the Co-opera1ivc society takes effect, the value of such share or imeres1 determined in accordance with the rules shall. within two years from the date of the order for dissoluuon. be paid 10 the liquiditor. or may, with 1he previous approval of the Registrar, be set of: by the liquidator against any sum which is due from the Co-operative society be,ng dissolved to the Co-opcrauvc society with limited liabiluy of which 1he Co-operative socicry being dissolved 1s a member Ii 48 D,spowor moneys or the decc.ucd, upcllcd. resiln<d o, insane membet, Rci.1:nc11on, on holdina ol '11,res Nomination by mcmhcr Re11nc11on on tra.n,fer of shin or intcra1 ~or mare. TiiE KOLKATA GAZE1TE. EXTRAORDINARY. MAY 25. 2010 The \Vest Btngal Co-operative Societies Act. 2006. (Chapter VI.-Mtmbtr of Co-opuOlive societits an d thtir duties, rig/11s, accountabiliry, Privileges and liabilities.-Stc tions 74-78.) 74. (I) AU sums, calculated in accordance with t he provisions of rules, to be due from a Co-operative society 10 a member, other than payments 10 be made m respecl of share or interest of such member 10 the Co-oper auve soc1e1y, shall. subject 10 the provision of section 58. be paid within one year (a) m 1he case of a deceased member, to the pers on 10 whom the share and interest arc transferred or 1heir value is paid m accordance wi1h the provision of secuon 70: (b) an the case of a member who has been expelled by. or has resigned from a Co-operauve society, 10 him. and (c) 1n the case of a member who has become insan e. 10 lhe person appointed [P.,RT Ill to manage his properties under the menllll health A ct, 1987 lSor 1981 (2) All payments and transfers made by a Co--0p erauve soc1eiy in accordance with the provisions of sections 70. 71, 72 and 73 and sub-!>Cction (I l of um section shall be va.lid and effecrunl irrespective of any dem and made upon the Co-operauve soc1e1y by any 01her person. 75, Where the liability of a member of a Co-opera tive soc1eiy is ltm1ted by shares, no member other than Stale Government shall ho ld more than such ponion of the share capilal of the Co-operative sociciy as may, su bject to the mo.ximum of one-fifth be prescribed in the by-laws of the Co-operauve s ociety and shall have any claim in the form of dividend or profi1 or return in respect of the shares of the Co-opera1ive society 1n excess of the limll prescribed in the by-l aws: Provided that the Stale Governmenl may subscrib e to the share capitol of o Co operalivc soc1ciy up 10 a maximum of onc-founh o f the pa.id up share captial. 76. Subject to the by-laws of a Co-operative socie ty, any member of such Co-operative society may in accordance with the rules nominate a person an whose favour the Co-operauve society shall dispose of lh e share or in1erest of such member oa his death. 77. (I) The transfer or change of the shan: or inte rest by a member in the cap11al of the Co-opera1ive socieiy shall be subject 10 such coad1t ion as 10 maximum holding as may be prescribed and shall require the approva l of the board. (2) No transfer or change of a share or interest by a member of a Co-operauve society with unlimited liability shall be vahd unless (a) he has held such share or interest (save tn the c ase of transfer under sec tions 70, 71, 73 or 74) for not less than one year, and (b) the transferee or the mongagee is either n mem ber of such Co-operauve society or a person whose application for members hip has been accepted by the Co-operative society. (3) Where lhe State Government is a member o f a Co-operative society, the restnction under this section shall DOI apply 10 any tranSfer made by it of iLS share or interest in the capital of the Co-operative society. 78. (I) Shares held in a Co-operative socieiy by the State Government shall be redeemable m such manner as may be agreed upon belween the Co-operative soc1ery and the Stace Government. (2) Redemption of shares referred to Ill sub-section (I ) shall be on the face value of the shares. PART Ill) ln~estmcn1 o( fund, Co-oporau,e Ed11ea1,on FunJ Bad Debt Fund R•"""• Fund. Emplo~=· Pro•idcnt Fund RtHterMnt B<0<1lt Fund THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 TM \Vt'st Bengal Co-operativt' Societies Act, 2006. (Chaprtr Vll.-Proptnits andfurub of Co-optrativt socitllts. Section.s 79-84.) CHAPTER VU Properties a nd funds or Co-operative societies. 79. A Co-operative society may invest or deposit its funds (a) in a Govemmen1 savings bank: or (b) in any securi1y specified in section 20 of the lnd.i1111 Trust Act. 1882: or (c) in the share or deben1ure or securiry of any other Co-operative society; or (d) in the West Bengal State Co-operauve Bank limited; or (e) . in the Central Co-operative Bank of the area within which us registered office lies. including branches of the said banks. if any; or (0 in such other manner as may be prescribed. 80. There shall be u Fund to be called the Co-operative Education Fund to be administered by such authority and in such manner as may be prescribed. Every Co-operative society shall, after the close of each Co-operative year contribute to the Co-operative Education Fund such portion of its net profit in any Co-operative year as may be prescribed. 81. Every Co-operauve society shall create a Bad Debt Fund by transferring of not less than fifteen ptr cen1. of its net profit in a Co-operative year and shall utilize ll in any business 1f II has no outside liability in the form of bad debt certified by the audit officer or in such other mt1.nner as may be prescribed. 82. Every Co-operauve society shall tr1111sfer. in every Co-operative year. not les, than ten per um, of its net profit to a Reserve Fund: Provided that the Reserve Fund shall be invested m a Government Sa\'ing Bank including Nationalised Bank. Co-operative Banks and Regionul Rural Banks or in ony security specified in section 20 of the Ind ion Trust Act. 1882 or in the business o f the Co-operative sociery in such manner ns may be prescribed. 83. Employees' Provident Fun~o-operative Societies. which are not coverable under the Employees' Provident Fund and Miscellaneous Provisions Act. 1952. may 1Q ~• 1~5! establish provident fund for the benefit of its employees with the contribution of such employees and may make contribution 10 the fund at the prescribed rate and the fund sh.ill be administered in such manner as may be prescribed. 84. A Co-operative sodcty may ~tablish retirement benefit fund for paymem of gra1ui1)· 10 ii, employee,; in .;.ccordance with the provision of the Payment of Gral UII) Act, 1972 and for payment of cash equiva'.ent of leave salary. if any. to its employe~s I~ r 191! on retirement fro m i;crvice . 19 50 Cttauon and nwntc.nanc.c or spcc1al funds Dis1nbull0ftol pron1 THE KOLKATA GAZETfE. EXTRAORDINARY. MAY 25. 2010 Thi' West Bengal Co-operatll'I' Societies Act. 20()6. /Chapter V/1.-Proptrtits andfuruis of Co-operative societits.-Sections 85, 86.J 85. A Co-opera1ive society may. if it considers expedient. ere.ate and maintain 1he following funds (a) inventory loss fund: (b) price fluctuation fund: (c) smkmg fund; (d) development fund: (e) staff welfare fund: (f) members' welfare fund; (g) dividend equo.Jisation fund: (h) building fund: (i) community welfare fund: (j) natural calamity fund: (k) self-help group development fund; and (I) such other funds as may be deemed to be beneficial 10 the general interest of the Co-operative society and may make regulation for the management of such funds. 86. (I) Subject to the provisions of secuons 80 to 85 of this Act. the balance of the net profit in a Co-operative year together with the unidstnbuted net prof it, if any, of the previous year may be utilised for all or any of the following purpose s: (a) payment of dividend to the members on their paid up share cap1111I at 11 rate not exceeding twelve per cent. (b) contributions of any amount not exceeding ten percent of the net profit in [PART Ill a Co-operative year for any charitable purpose as defined in section 2 of 6 of l 890 the Charitable Endowment Act. 1890. (2) (a) ln any Co-operative society deo.Jing in goods, rebate may be allowe d m the total amount of payments made by a member during a Co-operative year towards his purchnse of goods from the Co-operative society dunng that year. (b) In case of Co-operative credit society. rebate on interest may be allowed 10 members making timely repayment. (3) No dividend shall be paid (i) otherwise than out of profit certified by the audit officer to have been actually realised: or (ii) if the audit officer reports that any asset is bad debt or doubtful debl and not adequately recovered: Provided that this sub-section shall not be applicable m respect of dividend at fiited rate payable 10 preferential share holders of a bank. (4) No dividend shall be paid by any Co-operative society unless recommended by the board and approved in the general meeung and no bonus or rebate shal l be allowed without approval of the board in a meeting: Pro.,,ided that this sub-section shall not be applicable in respect of dividend at fixed rate payable 10 preferential share holders of a bank. (5) A Co-operauve society incurring loss or having accumulated loss on 1L\ ac count shall not make any a-gratia payment or payment o f bonus at a rate mo re than the minimum prescribed under the Payment of Bonus Act, 1965. ~1 or 1~). PART Ill) El1g,b1hl)' for mcmbcrdup of housin1 Co opcnu"e $CC1C(Y T)I>< ol tiou.mg C o-orrn11-. t l,,ii\.tCtlCS h) hf, RJIJIC~ THE KOLKATA GAZETTE, EXTRAORDINARY. MAY 25. 2010 TM West 8Mgal Co-operalive Societies Act, 2006. (Chapter Vlll.-Sptcial prov,s,ons for housing Co-optraJil-t societitr. Sectioru 87. 88.) CHAPTER VIII Special provisions for housini: Co-operative societies. 87. ( I) In addition 10 the requirements under section 63. an individual shall be eligible for membership of a housing Co-operative society. if (a) he is a cilizen of India or a non-resident Indian: (b) he 1s not a member of any olher housing Co-operative society in West Bengal: (cl he or any member of his family does nOl own any plot of bruru land. house or na1 within the local limits of any municipal corporation or munic ipality or town or any gram Panchayat or any nOlified area authority where lhe housing Co-operative society is situated olher than lhe one in relauon to which lhe membership of a housing Co-operative society is applied for by him under this section: (d) he is a permanenl resident of Wesl Bengal or intends 10 reside in West Bengal permt111ently within a period of one year from the date of application: (e) he has genuine need for housing or additional accommodation from such Co-operative society: and (f) he has nOl entered into any contract with the housing Co-operative society in the matter of any work coru;tructional or Olherwisc relating to a project of the Co-operative society. (2) No person shall be admitted as a member or function as an organiser of a housing Co-operative society until he has made a declaration to be sworn by him before an Executive Magistrate or Judicial Mligistrale in accordance with the requirements specified in clauses (a) to (f) of sub-section (I): Provided that if such declaration is subsequently found to be false in whole or in pan. it shall be an offence punishable under this Act. 88. Housing Co-operative socieues of the following types may be registered under scc11on 16 (a) a housing Co-operative society of which all the members eligible under section 87 have purchased a consolidated land for the purpose of construction of unit houses on separate plOlS which shall be allotted by the Co-operative society and the common services and amenities shall be provided by the Co-operative society to all members who may constuct their houses either on their own or through the Co-operative: Provided that the members opting for construction of houses on their own must undenake construction within three years from the date of possession. failing which he shall surrender the plot of land in favour of the Co-operative society: Provided funher that if he does not surrender, it shall be deemed to have been surrendered by him and the price of land shall be refunded to him by the Co-operative society which may re-all01 the plot to a new member; (b) a housing Co-operative society of which all members eligible under section 87 have purchased a consolidated land for construction of flats which shall be allotted to each of them by the Co-operative society and maintenance. common services and amenities to all members will be provided by the Co-operauve society; 51 Fint-1encral mc,:11111 or howan1Co open11ve>0<i<ry AMUlt &cneral meeunaof howincC<> ~ti"c IOC"ltt)' THE KOLKATA GAZETIE. EXTRAORDINARY, MAY 25, 2010 The West Bengal Co-operarfre Societies Act, 2006. 1Chapttr Vlll.-Special provisions for housing Co-operative socit1its. Sec1ions 89, 90.) (c) n housing Co-operative society of which all the members ehgtble under section 87 are the owners of the nots in any building constructed or under construction by any authority or agency and have entered into an agreement to form the Co-operative society for providing maintenance. common services and amenities to all members. 89. ( l l Notwithstanding anything contained elsewhere in this Act, the first board of the housing Co-operative society shall, within three months from the date of registration under section I 6, call the firsc general meeting of the housing Co-operative sociecy for the purposes (al electing directors of new board: (b) placing a repon on progress of work and other particulars relating 10 the project of the Co-operative housing society; lcl apponionment of cost of land, house or Oat. if applicable; Id) placing a repon of fund raised from the members, expenses incurred under various heads prior to, and afler registration, any resignation and enrolment of members. latest estimate of the project cost and manner of payment towards c~t of construcuon; (e) appointing architects, contractors and valuers: Provided such appointment shall be made after inviting application for the same through a daily newspaper, if applicable: Provided funher that no person acting as an architect or con1.r11c1or or valuer shall act as any of the other two; CO revising allotment of plots of land or Oats on the basis of draw of loo if there is any change in the sanctioned plan of the housing proJect. 1f applicable: Provided that if the sanctioned plan is not received before the general meeting, the revision of allotment, if any sha.11 be considered in the next annual or half yearly or special general meeting. (2) If the election referred to in clause (a) of sub-section (I) is not held within the time specified therein, the Registrar notwithslllnding anything contained elsewhere in this Act may, after such inquiry as he thinks fit and necessary and giving an opponunity of hearing 10 the directors of the Co-operative housing society, impose such penally, as he may deem expedient. on the delinquent directors of the Co operative housing society and may debar them from being funher elected as directors for a period not exceeding two terms. (3) The work relating to the maintenance, repair and replacement of the common areas and facilities {including additions or improvements thereto) shall be carried out in accordance with the by-laws of the Co-operative housing society and the building rules of the concerned municipality, notified area authority or competent authority, as the case may be, and costs thereof shall be apportioned amongs1 the members of the Co-operative housing society in such manner as may be prescribed. 90. (I) In the annual general meeting of a housing Co-operative society held in 1erm of section 29, in addition to agenda mentioned therein, whichever applicable the board shall submit a comprehensive repon covering the following points wherever applicable: (a) progress of implementation of project; (b) paniculnrs of fund for the project received from individual members and cases of default, if any; [PART ill PA~T Ill) Un,,o(..,.... m<nl THE KOLKATA GAZETTE. EXTRAORDINARY, MAY 25, 2010 The West Bengal Co-operative Societies Act, 2006. (Chnprer \'/11-SpeC'lal provmons for housing Co-operarive socieries. Semons 91 92.) (c) paniculars of default in payment of service charges and mamtemmce, if any: (d) confirmation of cost of land, house or Oats as per up to date estimate of escalation. as the case may be; (e) latest posnion as to drawal of loans from the West Bengal Stllle Co-operative Housing Federauon Limited. or any other financial institution and recovery of such loans: (f) cases of resignation, expulsion and death, if any, of members and fresh enrolment in consequential vacancies: (g) cases of transfer, letting out, repair, addition or alternation of any house or nat of the member; (h) cases of all01ment and re-allotment of garage spaces in the area of the Co-operauve society, 1f any: (1) utilisatton of common areas of the Co-operative society: (j) dispute and coun cases, if any. and considerauon for institution or withdrawal of such cases: and (k) regulation of common services in the Co-operative society. (2) The housing Co-operative society shall send copies of the notice and the resolutions of the annual, half yearly and special general meetings along with audit repon to the Registrar within one month from the date of holding such meeting. 91. (I) Notwithstanding anything contained in any other law for the time being in force. each plOl of land or house or apartment in a building (including the undivided interest in the common areas and facilities) shall constitute a separate unit for the purpose of assessment of rates and taxes to be realised by a municipality or a notified area authority or a competent authority. (2) After a Co-operative housing society has been registered and till the possession of land. house or apamncnt in a building. as the case may be. is made over 10 the members of the Co-operative housing society on the completion of a project undertaken by it. the Co-operative housing society shall furnish to its me.mbcrs and to the Registrar at the cod of every quaner a statement in the prescribed manner. 92. (I) Any all01mcnt (including re-all01ment) of a plot of land or a house or apanment in a building made by a Co-operative housing society to its member in accordance with its by-laws shall entitle such member to hold such pl01 of land, house or apanmcnt. as the case may be, with such title or interest as may be granted under the prescribed condition~. and, subject to the provisions of sub-section (I) of section 61 lll1 instrument of transfer in accordance with the provisions of Transfer of Pr<'oe-.ty .\et, 1882 and the Registraiion Act, 1908, shall be the conclusive evidence oi ~u,'1 tilk 'lr interest in favour of ~uch member. J of 1882 16or 1908 53 54 Rcsln<UOIII OD let11n10111o( bousur llalby member 111 housu>&Co opcnu.., C sottet)' THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25, 2010 The Wtst Btngal Co-o~rativt Socittits Act, 2006. (Chnpter V/11.-Sptcial pro,•isions for housing Co-o~rati vt socittits. Stction 93.) (2) A member or a Co-operauve housing society shall not b e entitled 10 any title or interest in any plot of land or house or apartment in a bu ilding until he has made \uch payment as may be prescribed towards the cost of such pl ot or land or construction of such house or apanment or both. as the case may be. to th e Co-operative housing society (3) A plot of land or a house or an apanment in a building(incl uding the undivided interest in the common areas and facilities) shall constitute a h eritable and transferable immovable property within the meaning of any law for the time being in force: Provided that n01withstanding anything contained in any oth er law for the time being in force, such heritable and transferable immovable property shall not be partitioned or s11b-divided for the purpose whatsoever: Provided funher that notwithstanding anything contained else where in this Act or in any other law for the time being in force, an heir who is a nominee in respect of a share and interest in a flat or house or plot in a Co-operati ve housing society shall be eligible to be admitted as a member of the Co-operative hou sing society irrespective of the fact whether he owns any property by his own rig ht or inheritance or by marriage provided he declares. that he has requiremen t for such residential accommodation, Provided also that membership of a person in a Co-operative h ousing society shall not cease if the member himself or any member of his family becomes owner of any land. house or flat through inheritance and if he still continu es 10 have genuine need of accommodation in the project of the society. (4) Every member of a Co-operative housing society sha ll be entitled 10 an undivided interest in the common areas and facilities pertai ning 10 the plot of land or house or apartment allotted 10 him. (.5) Every member of a Co-operative housing society in wh ose favour a plOI of land or a house or an apartment in a building has been allo tted shall have the right to use the common a.reas and facilities as aforesaid for the purpose for which they arc intended without interfering with or encroaching upon th e lawful rights of other members in whose favour similar allotment has been made . (6) The work relating to the maintenance, repair and replace ment of the common areas and facilities (including additions or improvements ther eto) shall be carried out in accordance with the by-laws of the Co-operative housing society and the building rules of the concerned municipality. notified area authority or competent aulhority, as the case may be. and the costs thereof shall be apportioned a mongst the members of the Co-operative housing society in such manner as may be prescribed. 93. (1) No member of a housing Co-operative society shall, e xcept under the following circumstances, be allowed to let out his house or flat al lotted in his favour by the housing Co-operative society (a) where the member is transferred 10 his employer 10 any ot her place which 1s not agglomerated with the area of the housing Co-operat ive; (b) where the member is under the cond1uon of his service co mpelled to stay ouLS1de such as in office quarters: (c) where the member is compelled to reside elsewhere due t o reasons of his business or profession; (d) where the member is compelled to reside elsewhere u nder such other circumstances as the board may approve. (2) (a) No member of the housing Co-operative society sh all allow any of his relatives besides the members of his family to reside in his house or Oat without prior con;cnr of the housing Co-opcrauve society; [PART llJ PART ITT) THE KOLKATA GAZETTE. EXTRAORDINARY, MAY 25, 2010 The \Vest Bengal Co-opera.live Societies Act, 2006. (Chopttr V/1/.-Special provisions for housing Co-operative socit.tits. Stction 93.) (b) No member of the housing Co-opera1ive society shall lei out his house or Oat under any or more of the circumstances as enumerated in sub-section ( I) and receive any income in respect of such house or Oat without prior wntten consen1 of the housing Co-operative society. (3) For oblaining written consent of the housing Co-opera1ivc society allowing any of his relatives 10 reside 1n terms of clause (a) of sub-section (2) or letting out in 1erms of clause (b) of sub-section (2). the member shall apply in duplicate to the Co-operative society with credentials of the relative or the person, to whom permission or letting out has been applied for. with evidence of circumstances under which he is compelled to reside outside his house or flat. (4) The decision of the housing Co-openuive society, on any application under sub-sec1ion (3), shall be communicated to the member within thirty days from the date of receipt of the application If the housing Co-operative society refuses Lo give its written consent to such application. it shall record the reasons for such refusal and communicate the same to the member. If the housing Co-operative society give its consent, a tripartite agreement amongst the member, tenant or relative and the Co-operative society embodying the terms and conditions of the proposed licence or lease, as the case may be. shall be executed and the Registrar shall be informed. (5) (a) Where a housing Co-operative society refuses or fails to give the written consent under sub-section (4) and if the member intends to prefer an appeal to the Registrar against such refusal by or failure of the housing Co-operative society, he may prefer such appeal within thirty days from the date of communication of the refusal or within sixty days from the date of receipt of the application of the member by the housing Co-operative society but after expiry of thirty days from the said date in the case of failure of the housing Co-operative society to give such consent. (b) The Registrar shall, after hearing the applicant and the housing Co-operative society, dispose of the appeal within thirty days from the date of preferring the appeal. (6) If the member's relative or the tenant has been misusing the house or Oat occupied by him in a housing Co-operative society, in such a manner which is objectionable on the ground of security, moral decency and public order or has been habitually acting in a manner which, in the opinion of the housing Co-operative society, has caused serious nuisance to any other member, relative or tenant, the housing Co-operative society shall withdraw the written consent and shall ask the relative or the tenant to vacant the house or the flat within thirty days from the date of decision of the housing Co-operative society and the member shall talce all steps for restoration of his house or flal from the relative or the tenant, as the case may be. (7) In the event of letting out of a house or Oat by the member. the housing Co-operative society may realise a tenancy charge at the rate of ten per cent of the monthly rent from the tenant per month. 55 56 TIIE KOLKATA GAZETIE. EXTR AORDINARY, MAY 25, 2010 The Wtst Btngal CQ-opuaiive Societies Act, 2006. (Chapttr IX.-Co-optrative Servict Commission, Co-optrativt Registration Council and Co-operaiivt Eltction Commission.-Stctions 94, 95.) CHAPTER IX Co-operative Service Comml.won, Co-operative Rqistratloo Council and Co-operative Elecdon Commission. 94. (l) Toe State Government shall constitute u Co-operative Service Commission (hereinafter refe!Rd to in this section as the Commission) and shall appoint the following three persons as the members of the Commission: (a) one person who has held a post not below the ranJc of a Special Secretary to the Government of West Bengal 10 be theChainnnn of the Commission: (b) two persons from rwo different apex Co-Operative societies, tO be nommated by the State Government (2) The Chairman and the other members of the Commission shall hold office for a tenn of three years: Provided that no member of the Comnuss1on shall be rcappoimed or re-nominated as a member of the Commission: Provided further that if the office of the Chainnan of the Commission becomes vacant or if he 1s by reason of absence or for any other reason unable to perf onn the duties of his office, those duties shall, until some person, appo1n1ed under this sub section to the vacant office. has entered on the duties thereof or. as the case may be. until the Chairman has resumed his duties, be perfonned by one of the members of the Commission as decided by all the members of the Comrrussion. (3) The sal~es and allowances of the members including the Chairman of the Commission shnll be such as may be prescribed. (4) The number of the officers and other employees of the Commission and the salaries. allowances. terms and conditions of service (including conduct discipline and control) of such officers and other employees shall be such as may be prescribed. (5) The Commission shall select persons for appointment to such posts other than the posts of Group D category and posts to be filled up by promotion in the Co operative societies mentioned in the Fifth Schedule of this Act and io doing so shall follow the procedure and guidelines as may be prescribed: Provided that any appointment made by a Co-operative society of the Fifth Schedule in this Act in violation of this clause shall be void. (6) There shall be a Selection Committee of the Commission and such committee shall consist of (a) the Chairman and two other members of the Commission: (b) a representative of the Co-operative society for which the selection of the employee is to be made; (c) a subject matter expert where help of such expert is necessary: Provided that the Chairman of the Commission will preside over the rneeung of the Selection Committee and in his absence, one of the members of the Commiss.ion as decided by themselves, shall preside over the meeting. (7) The State Government shall appoint an Additional Register of Co-operative societies tO be the Secretary of the Commission. The Secretary shall discharge his duties as per rules of business and guidelines framed by the Commission. He shall also act as the convener of the Selection Comminee. (8) The other temis and condition of service of the Chainnan and the members of the Commission shall be such as may be decided by the State Government 95. ( I ) The State Government shall constitute a Co-operative Registration Council (hereinafter referred tO in this section as the Council) consisting of a Chninnan and rwo other members. [PART 1J1 PART Ill) THE KOLKATA GAZETTE. EXTRAORDINARY, MAY 25. 2010 The West Bengal Co-operative Societies Act. 2006. (Cliapttr IX.-Co-opera1ive Service Commission. Co-operative Registration Council and Co-operatfre Eltction Commission.-Stc1io11 96.J (2) The Slllte Government shall appoint a person who is or has been a member of the West Bengal Higher Judicial Service. as the Chairman of the Council. The Chairman of !he Vice-Cluurman or any director of the Slllte Co-operative Union as nominated by it shall be a member of the Council and the other member shall be nonuna1ed by the Stllte Government. (3) The Chairman and the members of the Counctl shall hold office for a term of three years. (4) The Staie Government shall appoint an officer not below the rank of Depul)' RegislJ'llr of Co-operative sociel)' as the secretary of the Council The Secretary shall perform his duties as may be assigned 10 him by the Council. (5) The Co-operauve Registration Council shall have jurisdicuon throughout West Benga.l and shall function in such manner as may be prescribed. (6) The number of officers and other employees of the Council and conditions of service (including conduct. discipline and conirol) of such officers and employees shall be such as may be prescribed by the State Government. 96. (I) The State Government shall constirute a Co-operative Election Commission (hereinafter referred 10 as the Election Commission) and shaU appoint a person to be the Co-operative Election Commissioner of the Election Commission for the Superintendence, direction and conirol of election of all registered Co-operative societies in West Bengal. (2) The Co-operative Election Commissioner of the Elecuon Commission shall hold office for II term of three years. (3) The Co-operative Election Commissioner of the Election Commission shall be a person who is or has been a member of Indian Administrauve Service not below the rank of the Secretary or Special Secretary to the Government of West Bengal and has served at least for two years either in Co-operative Department or in Co-operative Directorate. (4) The Election Commission shall hold elction of all registered Co-operative societies in West Bengal in due time under the provisions of Chapter IV of th.is Act and shaU take all measures in this regard as it may think fit in such manner as may be prescribed. (5) The State Government shal.l appoint a Joint Registrar of Co-operative society 10 be the Secretary of the Election Commission and such other staJf as may be required by the Election Commission in discharging ilS function. (6) The salaries, allowances and !he tcnns and conditions of service of the Co operative Election Commissioner of the Election Commission shall be such as may be prescribed .. (7) The number of officers and other employees of the E.lection Commission and the salaries, allowances, tenns and conditions of service (including conduct, discipline and control) of such officers and employees shall be such as may be prescribed. (8) Subject to lhe provisions of this Act, the Co-operative Elecuon Commission shall make rules, regulations and procedure providing for (a) !he conduct of election; (b) the preparation of electora.l roll for the election; (c) fixing lhc date, place and manner of election; (d) fixing lhc date and manner of publication and declaration of the results of the election; (e) fixing the cost of holding of election of a Co-operative society and the nutnner of assessing and realization of such cos1; (f) symbols that may be used for election by the candidates. (9) Until the Co-operative Election Commission is constirutcd and rcquued regulations for conduction of election of Co-operative societies arc made Slate Government may, by notification. notifies the date with effect from which the elecuon of all the Co-operative societies shall be conducted by !he Co-operative Elecuon Commission. The Co-operative societies shall be liable to comply with all the provisions of section 29 of this AcL 57 58 Auchc of oa:ounlJ of Co-opcnu,c SOCICIY THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25, 2010 TM \Vest Bengal Co-operative Societies Act. 2006. (Chapter X.-Audit, inspection and inquiry.-Section 97.) CHAPTER X Audit, inspection and Inquiry 97. (I ) (a) Every Co-operative society send to the Director of Co-operative Audit and to the Registrn.r within three months from the closing date of each Co-operative year an annual return consisting of a cash account, profit and loss account, a balance sheet and trading account where applicable in the Form as prescribed. (b) Account of every Co-operative society shall at least in each Co-operative year, be audited at the expenses of the Co-operative society by the Director of Co operative Audit or by a person appointed or authorised by him to act as audit officer by general or special order 10 wriung in this behalf from among the officers under his administrative control or from the panel of auditors which shall include the members of the Institute of Cost and Works Accountant of India constituted under the Cost and Works Accountant Act. 19~9 and members of the Institute of Oiartercd Accountants of India both having cenificate of practice issued by the respective lnsti1u1ions. Such panel of auditors shall be prepared either by the Staie Government or by the Director of Co-operative Audi! with the approval of the State Govemmenl in the manner as may be prescribed, from the members of the above named two inst11u11ons by obtaining applications from them and the panel shall remain valid for three years. (2) (a) The Director of Co-opeative Audit shall draw up an audit programme and issue appointment letters to the audit officer under intimation of such appoiniment to 1he Co-operative socie1ies not later th1111 28th February of each Co-operative year. In the case of running audit, the audit programme shall be drawn up and intima1cd 1wo months before commencement of each Co-opera1ive year. All apeit Co-operative sociehes. Central Co-operative societies. primary urban Co-operative Banlcs, primary Agriculture and Rural Development Banlcs and such other Co-operative societies whose working capital on the last day of the Co-operative year eitcccds rupees two crore rupees, shall come under the purview of running audit. (b) An audit officer shall complete the annual audit within nine months from the closing date of the relevant Co-operative year, failing which the audit officer shall eitplain in writing 10 the Direc1or ofCo-operalive Audit the reasons for non-completion of audit. (c) If the audit officer appointed from the pnnel of auditors does not take up the audit within two months from the closing date of the Co-operative year or of the dale of his appointment and does not intimale sufficien1 reason for not talcing up audit, his appointrnen1 shall stand cancelled and the Director of Co-operative Audi1 shall appoin1 anoiher audil officer in his place: Provided tha1 no1hing in this clause shall apply to officers of the Directorate of Co-opera1ive Aud11 of the S1a1e Government bu1 the audit officer shall submil repon in wri1ing to 1he Director of Co-operative Audit stating the reasons for which he has foiled 10 take up the audit within two months from lhe closing date of the Co-operative year; failing which it would be 1rcated as negligence on the part of the audit officer (3) (a) The Director of Co-operative Audit shall not appoinl the same audil officer to audil the accounts of the s:ime Co-operative society for more than three success1\e Co-oper:uivc years. (b) Unless 01herwisc directed by the Staie Government the accounts of the ape~ Co-operative society. Central Co-opcra1ive Banlcs, urban Co-operative Banks and the Agricul1ure and rural development banlcs shall be audited by the panel of auditors nppoinled by lhe Sllte Government or by the Director of Co-opera1ive Audit : (PART ID PART Ill) THE KOLKATA GAZE'ITE. EXTRAORDINARY. MAY 25. 2010 7ne West Bmgal Co-opuative Societil!S Act, 2006 (Choptu X.-Audit, mspl!Ctton and mqu1ry.-Sectwn 97. 1 Provided that when the aud11 of the accounts of a Co-operative society is in arrcar for 1hree years or more. an audil officer may be entrusted by the Director of Co-operative Audit 10 audit the accounts of the Co-operative society for all such Co-operative years (4 ) 1a) If at the ume of audil. 1he audil officer find, the accounts of the Co-operauve socielies arc nOI complete. he shall repon the matter 10 the Directo of Co-operative audit who shall cause the accounts 10 be completed at the eitpens.. of the Co-operative society by an accoun!llnt from the panel of account.ants to ~ maintained in the range office. The panel shall ~ prepared by obtaining applicahon from the persons who have qualification in commerce and li~e in range area (bJ A Co-operative socie1y may. at its discretion. get its accounts prepared with the help of an accountant empanelled under clause (a) of this sub-section. (5) The audited statement of accounts of a Co-operative society together with the auduor's repon shall be final and binding on the Co-operauve society. (6) An audit under clause (b) of sub-section (I) shall include annual audit. monthly running audit, concurrent audit and re-audit and other mauers as may be prescribed Explanation /.-"annual audit" shall mean audit of accounts of Co-operauve society annually for each Co-operative )car Explanation //.-"running audu" shall mean audit of accounts of the Co-operative society within a co-operative year on monthly basis. The auditor shall issue running audit memo monthly poinung out the irregularities noticed and the board of the Co-opcrauvc societ} shall submit recuficauon repon after considering the audit memo on U< ne~t meeting Exptana11on /1/.-"concurrcnt audit" shall mean audit of accounts of Co-operative , oc1e1y within a Co-operauve year on daily basis. The auditor shall issue audit memo pointing out the errors and irregulamies daily and the Co-operative society shall submit a rectification repon within three days from the d3te of receipt of the audit memo. Explanation /V.-"re-audit" of accounts of the Co-operative society shall mean fresh audit of accounts of the Co-operative society by a senior auditor appointed t,y the Director of the Co-operative Audit. The order for re-audit shall be issued by the Director of Co-operative Audit when a major discrepancy in the audited accounts of the Co-operative society in particular Co-operative year is noticed by him or when such re-audit is demanded by the Co-operative society on the basis of a rcsolulion passed in its general meeting. (7) Other types of audi1 are as follows: (a) "cost and perfonnance audit"-where in the opinion of the Slllte Government. it is necessary in the public interest so to do in relation 10 any Co-operative society or a class of Co-operative socie1ies for ensuring management thereof in accordance with sound business principles and prudent commercial practices, the State Government may, by order, which shall be issued a1 least one month prior to the closing date of a Co-operative year, direct that the cost audit or performance audit or both of such Co-operauve society or a class of Co-operative societies, as may be specified in the order, shall be conducted. On receipt of the order of the State Government, the Director of Co-operative Audit shall appoint wider clause (a) of sub-section (2) a member or members of the lnstilute of Cost and Works Accountant from the panel of the auditors referred to in clause (b) of sub-section (I ) to be the audil officer to conduct the cost audit or performance audit or both of such Co-operative society or a class of Co-operattvc societies and such audit officer shall complete the audit within the period spccifiod 59 60 Audnn:pan. THE KOLKATA GAZEITE. EXTRAORDINARY, MAY 2.5, 2010 71u! Wes, Bengal Co-operarive Societies Act, 2006. (Chapter X.-Audit, inspection and inquiry.-Secrion 98.) in sub-section (2) and shall submit the repon in accordance with the provisions of clause (b) of sub-scclion (I). The Director of Co-opcrntivc Audit may also appoint sue~ audit officers for conducting cost audit or perfonnance audit, or both, al the instance of any Co-operative society at Lhe expenses to be borne by it. (b) "internal audit"-d!e Co-operative society mentioned in clause (a) of sub-section (2) or any Olher Co-operative society may appoint int.cmal auditor to get its accounts internally audited so that the board of director can get a repon from the mt.cmal auditor in each month and take appropriate decision. (8) The audit officer appointed from the panel of auditors shall be paid by the concerned Co-operative audit fees as may be prescribed. (9) The Director of Co-operative Audit may, as and when exigency arises, depute an auditor or a group of auditors for examination of books. accounts and such othe.r papers and for verification of cash balance. The repon thereof shall be deemed to be an audit report for the purpose of taking funher action. (10) Every person, who 1s or has. any ume within the period of 5 years from the date of audit. been an officer or employee or a member or a director of the Co-operative society shall furnish such lnfonnation in regard to the transactions and working of the Co-operative society as the Director of Co-operative Audit or the person authorised by him may require. (11) If during the course of audit of any Co-operative society the auditor is satisfied that some books of accounts or other documents contained any incriminatory evidence against the past or present officer or employee of the Co-operative society, the auditor shall immediately report the mnner to the Director of Co-operative audit and with the previous pennission of the director may seize the books of accounts and give a receipt thereof to the Co-operative society. (12) The audit or accounts of a Co-operative society shall be conducted in the manner and place as may be prescribed by the State Government. However, such Co operauve society shall give Lhe audit officer all assistance necessary for completion of Lhe audit and for this purpose, the audit officer shall prepare such statements and take such actions with regard to verification or examination of its accounts as he may require. ( 13) A Co-operative society shall pay an audit fee calculated in such manner and at such rate as may be prescribed: Provided that State Government may by notification exempt or remit such payment of audit fees for cenain categories of Co-operative societies as may be presccribed. (14) The Director of Co-operative audit may undenake audit of accounts of organisations other than Co-operative societies only with the prior approval of the State Government on such terms and conditions as may be prescribed or specified by the Government 98. (I) After completion of audit of accounts of any Co-operative society. the audit officer sha.11 submit his repon to the Director of Co-operative Audit, to the Registrar of Co-operative societies and to the Co-operative society together with the audited statement of accounts within the period of thirty days from the date of completion of audit specified in sub-section (2) of section 97. The audit report shall be prepared and submitted in such manner and with such information as may be prcscnbed. (2) A Co-operative society shall rectify the defects pointed out in the audit report and submit lo the Director of Co-operative Audit a report of compliance wilhm fony five days from the date of receipt of the audit report. The Co-operative society shall acknowledge the receipt of the audit report as soon as the same is delivered to it [PART ill PART III) Inspection by Rcps111ror finAn<II\I banl. Qr apu Co-op,:n11Ye M)(ICl)'O< CmlnJ Co-opcnuvc l,()(IC1Y lnqui,y by RcJllllW 'FHE KOLKATA GAZETTE. EXTRAORDCNARY, MAY 25, 2010 TM West Btngal Co-operativt Sodenes Act, 2006. (Chapter X.-Audit, inspection and inquiry.-Stctions 99, JOO.) (3) Where lhe Director ofC<H>perativc Audit is of opinion th.at the defects pointed out in lhe audit report have not been fully rectified by the Co-operative society, he may direct the ~rative society to rectify the defects still persisting in the accounts and 10 submit a further report of compliance with explanations within forty-five days from the date of receipt of such direction, and the Co-operative society shall rectify such defects and submit a further report of compliance accordingly. 99. (I) Every Co-operative society shall be liable at any time 10 inspection (a) by the Registrar or any persons authorised by the Registrar or by the State Government; (b) by the financing bank. if any, of which it is a debtor: (c) by the apex Co-opera1ive society or Central Co-operative society, if any, of which ii is a member. (2) The financing bank, the apex Co-operative society or the Central Co-opera1ive society, as the case may be, may authorise its officer, to conduct inspection of the Co-opera1ive society. (3) An inspecting officer may inspect any book or document of the Co-operative society at its office during the office hours. He may, if require, imerrogate any present or past office bearer, member, employee of the Co-operative society or any person having transaction with the Co-operative society for the purpose of inspection. (4) (a) The inspecting officer may seize any book or document of the Co-opera1ive society from its office in the manner as may be prescribed during the office hours or from any present or past office bearer, member or any person having possession of it on prior written requisition specifying therein the book or document to be seized and the reason therefor. A copy of the seizure lisl shall be handed over to the Co-operative society or the person from whom such book or documents has been seiz.cd. The seized books or documents shall be returned to the Co-operative societies or to the person, as the case may be, after meeting the purpose for which the books or documents were seized along with the inspection report. (b) The inspecting officer shall report the fact of such seizure together with a copy of seizure list to the Registrar or the financing bank or the apex Co-operative society or the Central Co-operative society as the case may be, within the next working day. (5) The Registrar or the financing bank or the apex Co-opera1lve society or the Central Co-operative society as the case may be. shall fix a date within which the inspection shall be completed and the report of inspection shall be submitted by the inspecting officer to the conccmcd authority: Provided that on an application by the inspecting officer stating the reasons for non-<:0mpletion of inspection, the dale fixed f orcompletion of inspection and submission of report may be extended by the concerned authority. (6) The Registrar or the financing bank or the apex Co-operative society or the Cenual Co-operative society, as the case may be, shall direct that the repon of inspection be communicated to the concerned Co-operative society within one month from the dale of receipt of the said report. 'The Co-operative society shall submit rectification and compliance report, if any, within sixty days from the date of rcceipl of such inspection report to the concerned authority, failing which it will tantamount to contravention of the provisions of this Act 100. (I) The Registrar may, at any time of his own motion, hold by himself or by any person authorised by him an inquiry into the affairs of any Co-operative socie1y. (2) An inquiry under sub-section (I) may also be held on the application of (a) the financing bank. if any. of which the ~operative society is a debtor; (b) one-third of the director of the board or one-tenth of the delegates or representatives of the Co-ope.rative societies; 61 62 CGsl O( Ul.lpo<IOII orU>q<:iry. THE KOLKATA GAZETIE. EXTRAORDIN ARY, MAY 2j, 2010 The \Vest Bengal Co-cperative Societies Acr, 2006. (Chllpttr X.-Audit, inspection and inquiry. Stction JOI.) fc) one-tenih or the members or the Co-operati ve societies each or whom ha!. been a member for not less than six months i mmediately preceding the date or application and who have deposited such security for cost, if any, as the Registrar may direct; (d) the creditor representing not less than one-h alf of the borrowed capital of the Co-operative society who have deposited such security for cost, if any, as the Registrar may direct: Provided that the Registrar may, before initiatin g any action for inquiry, satisfy himself whether the signatures of the applicants a re genuine and whether claim of the applicants is supported by proper documents. (3) The inquiring offices may examine any book or document of the Co--0pera11ve society and interrogate any past or present offic e bcalu, member, employee of the Co-operative society and any ocher person havin g transaction with the Co-operative society. (4) The inquiring officer may seize any book o r document of the Co-operative society from its office in the manner as may be.pre scribed, during office hours or from any past or present office bearer and member of the Co-operative society or from any person having possession of it on prior wriuen req uisition specifying therein the books and documents 10 be seized and the reasons theref or: Provided that the inquiring officer shall report the fact of such seizure to the Registrar together with a copy of the seizure list within the next working day and the copy of the seizure list shall also be handed over to the Co-operative society or the person from whom the books and documents h ave been seized. (5) The Registrar shall fix the date within whic h the inquiry shall be completed and the report of inquiry shall be submiued to him by the inquiring officer: Provided that on an applicatloo by the inquirin g officer suiting the reasons for non-completion of inquiry, the date fixed for co mpletion of inquiry and submission of report may be extended by the Registrar. (6) The Registrar shall communicate the report of inquiry held under this section 10 the Co-operauve soc1e1y·and the applicant. (7) The Registrar upon e.umination of the repor t of inquiry is of the opinion that there has been specific contravention of some p rovisions of this Act, he shall, after giving parties an opportunity of being heard. i ssue directions to the Co-operative society, any past or present member or office bea rer of the Co-operative society, non compliance of which shall constitute an offence . 101. (I) The Registrar may, after giving the pa nics an opportunity of being heard, by order stating reasons, apportion the 'cost oi ins pection or inquiry held under section 99 or section 100, as the case may be. either who lly or in pan, between the Co operative society and the directors, members, d elegates or creditors thereof or the financing banl., as the case may be, making the a pplication for inspection or inquiry, and the officers (including former officers) and th e member (including past members) of the Co-opensti\'e society. (::?) No upendirure shall be incurred from the fu nds of any Co-operative society for defraying the cost of any appeal preferred ag ainst an order under sub-section {I) by any person other than the Co-operative soci el}'. [PART ID PAAT Ill} Daspuics ao be filed bcfcn Rc&1>av Scttl<IDCIII of Oaspuia THEKOLKATAGAZEITE.EXTRAORDINARY.MAYlS.2010 Thi! West Bengal Co-operative Societies Act, 2000. (Clwpter Xl.-Sratemmr of dispures.-Secrions 102. 103.) CHAPTERXI Statement or disputes 102. (I) Any disputeconccming the managemem or bustnCSS or affatrS of a Co-operuti ,e society other than the dispute relating to elecuon in a Co-opera1ive society as and whc:n such elecuon is conducted by the Co-operative Election Commission and disciplinary acuon taken by Co-operative society against its paid employees regarding the terms and condiuons of the service shall be filed before the Registrar for settlement if it arises 1a1 among member&. past members and persons claiming through members and deceased members or then sureucs; or (b) between member. past member or a person claiming through a member, past member or deceased member rcprcsenung through heirs or legal representatives and the Co-operative society. its board or any officer. agent or employees of the Co-operative society or liquidator, past or present; or (c) between the Co-operative society or its board and any past board. any officer, agent or employee or any past officer, past agent: or past employee or the nominee. heirs or legal representatives of any deceased officer or dcccascd employee of the Co-operative society; or (d) between two Co-operative society or between a Co-operative society and a liquidator of another Co-operative or between liquidator of two different Co-operative or between a Co-operative society and any person having transacuon with it or between a Co-operative society and its financing bank (2) Any dispute mentioned in sub-section (I) other than a dispute relating tn recovery of money shall be filed before the Registrar within three months from the date on which the cause of action arises. (3) Notwithstanding anything contained in this section or in any other law for the time being in force, the Registrar may admit any dispute after the expiry of the penod of hmttation provided m sub-section (2). if the applicant can show sufficient cause for not filing the dispute within such period of limitation and the dispute so admitted shall nol be barred by limllation (4) Any Civil coun or any consumers· Dispute Redrcssal Forum shall not have any jurisdiction to try any dispute as mentioned in sub-section (I). (5 Any dispute to be filed before the Registrar shall be made in writing to be called the plaint and it shall be filed in such manner and form as may be prescribed. 103. (I) The State Government shall constitute a board of arbitrators consisting of a chief arbitrator of the ranlc of Additional Registrar of Co-operative Societies and 10 other Arbitrators-five from among the officers of the Department of Co-operation c,f that Government and five from among the distinguished Co-operators of this State. (2) A dispute under section 102 relating to all apex Co-operative societies, all Central Co-operative societies and all housing Co-operative societies in the Kolkata 63 and Metropolitan Arca as defined in the Kolkata Metropolitan Development Authority w..i Ben Act x1 Act, 1972 shall be filed before the Registrar who shall after condoning the delay, if any. of t9r.. and admitting the dispute, forthwith refer it for decision to the board of arbitrators a~ constituted under sub-section (I) of this section. The chief arbitrator of the board may dispose it of himself or transfer it to any arbitrator or arbitrators for disposal. (3) A dispute relating to any Co-operative society other than those mentioned in sub-section (2) shall be filed before the officer authorised to exercise the powers of Regis1rnr who may Ca) decide the dispute himself as an arbitrator: or (bl appoint one arbitrator or a forum of arbitrators for disposal of the dispute. 64 Appomoncnc or foNmof arb1tr1,1on N)t'(,.. u.1 drec, ofctn.11na•oud THE KOLKATA GAZETTE. EXTRAORDINARY, MAY 25, 2010 n1e West Bengal Co-opufllive Societies Act. 2006. (Chapter XI.-Sraremenr of di:rputes.-Section.s 104. /05.J (4) The ReglSlrar or an arbnrator or the board of arb11ra1ors or the forum of arbitrators. as the case may be. may on lhc application of any pany to a dispule referred under sub-sccuons (2) and (3) and on such terms as he or it thinks fil. make. afler giving the panies an opportunity of bemg heard. such interlocutory order as he or II considers necessary for preservation of any propeny or righl which is 1he subject maner of t he dispute. (5) (a) A dispute filed before lhe Registrar under sub-secuon (2) and before the officer authori!>ed to exercise the power of Registrar under sub-secuon (3) shall be decided within six months from the date of receipt thereof by the arb1tra1or or the boa rd of arb11ra1ors or lhe forum of arb1tra1ors, as the case may be. (b) If the d1spule 1s not decided within the period specified in clause (a). lhe arbitrator. 1he hoard of arbitrators or the forum of arbitralors, as the case may be. sh all submu a repon 10 the Registrar staling reasons for such failure and applying for funher period 10 be specified by him or it a1 leas1 fifleen days before 1he expiry of lhe peri od and lhe Registrar may allow funher time not exceeding six monlhs for disposal of t he dispute: Provided lhal where the dispute is being decided by the Registrar. he shall record lhc reasons in wming for extension of lhe period for disposal of dispute not c11ceedi ng ~1x monlhs. (c) The d1spu1e <hall be decided within lhe time as e,uended under clause (b). If the dispute is not decided wilhin the period of twelve monlhs. lhe arb11ra1or, the boa rd of arbitr:uors. or the forum of arbitrators. as the case may be. shall submit repon stat.ing reason w1lh lhe case record before lhe appointing aulhonty for appropnalC orders. (6) In the case of a dispute relating to recovery of money. the provisions of the section shall apply notwithstanding lhnt any pany lherc10 is punishable for an offen ce under any law for the time being in force. (7) All soch dispulCS shall be disposed off following the procedure and 1he manner as may be prescribed. 104. (I) When the Registrar under sub-section (3) of section I 03 decides to refer a dispute to a forum of arbitrators. he shall (i) call upon each of the panics to nominate one person as arbitrator within 15 days or such lime as he may direcl and where a pany consisb of more lhan one person. such persons shall jointly make only one nomination; and (ii) nommnte lhe third arbitraior who shall act as its Chairman. (2) lf a pany fails to make a nomination within the ume as under clause (i) of ,ub-<ecuon (I), the Registrar may himself make the nommauon (3> Where three arbitrators arc appointed. the opinion of the majority shall prevail 105. Where II l.lispute involves propeny pleJged as collaceral securi1y. 1he perso n deciding 1he J1~pute may make an award which shall have the same force and effect 0,5 a final mortgage d~cree of a civil coun havmgjurisdiction 10 make such decree. [PAKT Ill p,.RT 1111 Dissoluta1 or Co-openUV< soclCl)'by Rc111tnroa buis olrq,onor npccuoo, 1nqu1rydt Owoluuonor Co-operou-. society by Rcaistnr at INWICC of boon! Of "' m<mbcn THEKOLKATAGAZE1TE,EXTRAORDINARY,MAY25,2010 The West Bengal Co-operative Societies Act, 2006. (Chapter X/1.-Dissolwion of Co-operative sociay.-Seclions /06, /07.) CHAPTER XII Dissolution or Co-operative society 106. (I) If on ex1tmina1ion of a report of inspection under section 99 or a report of inquiry under section 100 or an audit report under section 98, the Registrar is of the opinion that the Co-operative society should be dissolved. he shall give a notice containing grounds for dissolution of the Co-operative society 10 its Chairman and Secretary requiring them 10 reply within fony-five days from the date of receipt thereof. A copy of the notice shall be sent to the federal Co-operative society and the financing bank, if any, for sending their comments 10 the Registrar within forty-five days from the date of receipt thereof. (2) The Chainnan or the Secretary of the Co-operative society shall call a general meeting of the members 10 consider whether any consent 10 such dissolution. as proposed in the notice under sub-section (I). shall be given or nOl. The Chainnan or the Secretary shall send a reply within the period as mentioned in sub-section ( I) (3) If after consideration of the reply of the Co-operative society and comments of the federal Co-operative society and the financing bank. if any. or after expiry of the penod of forty-five days as mentioned in sub-section ( I ), the Registrar is sull of the opinion that the Co-operative society should be dissolved, he may by order direct it 10 be dissolved and may appoint a liquida10r 10 dissolve it: Provided that the Registrar shall not, in the case of the State Co-operative Bank or West Bengal Co-operative Agriculture and Rural Development Bank or Central Co operative Bank or Primary Co-operative Bank, make any order without prior consultation with 1.he Reserve Bank of India or the National Bank for Agriculture and Rural Development Bank or State Co-operative Bank or the West Bengal Co-operative Agriculture and Rural Development Bank or the Central Co-operative Bank, as the case may be. 107. (!) If the board of the Co-operative society decides for any specific reason that it should be dissolved. the board shall cause a notice for holding a general meeting with a specific agenda as to dissolution to be sent to each member or delegate or representative for the purpose of authorising dissolution of the Co-operative society and such notice shall contain the following itcms: (a) details of assets and liabilities of the Co-operali ve society; (b) detalls of ch1ims of the creditors: and (c) details of shares, loans, deposit and obligation of nil members and the number or members. (2) When the members approved dissolution by special resolution of two-thirds of members present and voting, the board shall send the copies of the notice and special resolution 10 the Registrar, the federal Co-operative society and the financing bank. if any, within thirty days from the date ofadoption of special resolution. (3) The federal Co-operative society and financing bank may send their comments on the matter of dissolution of the Co-operative society to the Registrar within fifteen days from the date of receipt of the reference from lhc Co-operative society under sub-section (2). (4) If after examination of the authorisation of the Co-operative society and the comments of lhc federal Co-operative society and the financing bank, if received or after expiry of the period mentioned in sub-section (3), the Registrar is of the opinion that the Co-operative society should be dissolved, he may by order direct it to be dissolved within ninety days from the date of receipt of authorisation from the Co-operative society and may appoint a liquidator lO dissolve it: Provided that the Registrar for forming his opinion may cause an inquiry 10 be made under section 100. (5) The Registrar on an application made by nOl less than two-thirds of the total members of any Co-operative society for its dissolution may direct the board of the 65 66 O,u0luuon of Co-<>p,nto>c SOCICI}' by Rt&istrv of h.s o'<'n rnot10'1 Order of du..,luuua to bt p<1bl,shcd and commun1c1~d Appotnlmtt1I ~ ~mo'"alof liqu1da1or. Po"'cn and obhJllinn c t hqu1d11or THE KOLKATA GAZETTE, EXTRAORDINARY, MAY 25. 2010 ~ West BtmgaJ Co-operati1•e Socittiu Act. :!006. / Chapter XI/.-Dissolution of Co-operall~e sociery.-Sec11ons /08-1 I I. I Co-operative society to take steps under sub-section ( I ) and sub-section (2). If the board fails 10 comply with the direction within fony-five days from the dnte of rece1p1 lhcrooflhe Reg15irar may cause an inqwry under section JOO and proceed undcrOl apler xn. 108. The Regisirar of his own motion after giving thiny days notice by orde r d1rec1 dissolution of a Co-operative socieiy on one or more of the following grou nds: (a) where the Co-operative socieiy has n01 commenced working within rwenl) four months from the date of iLS registration: or (bl where the Co-operative socieiy has 001 earned on business or ceased 10 function for rwo consecutive years: or (c) where the Co-operative socie1y has obtained iLS registration by mista ke or fraud: or (d) where the Co-operative socie1y has lost the minimum number of mem bers pro,..1ded in section 16 for the purpose of registrallon· Provided thm where there 1s a prov1~1on under the by-laws to make good th e deficit in the mimmum number. this ground is 001 applicable. 109. When the Reg1s1rar passes an order under section 106 or 108 directing dis solullon of a Co-operathe society and appointing a liquidator to dissolve it, he sh all: (a) publish the order in such manner 10 the local news paper as he thinks fit: (b) communicate the order to the Co-operative society by registered pos1 with acknowledgemem due or through a messenger: (c) send a copy of the orderto the federal Co-operanvesoc1ety and the finan cing bank. if any, by registered post with acknowledgement due or through a messenger. 110. (I) The Registrar shnll, in consultation with the federal Co-operauvc: socie1 y. if any, appoint one or more tho.n one liquidator from amongs1: (a) officers of Government of West Ben!;al preferably reiired office rs of Co-operation Department or Co-operanon Directorate and Co-operativ e Audit Directorate and the financing bank. if any: (b) retired officers of apex Co-operauve soc1eiy and Ceniral Co-oper. 111ve soc1e1y; (c) chanered accountants, cost accountan1s and chartered engineers: Provided that i1 shall no1 be necessary to appoint any liquidator for disso lution of a Co-operative socieiy which has not commenced working. In such case. the ReiLSlrar, being satisfied that the Co-operative society has no assets and liabilitie s may issue a cenificate of dissolunon and cancel tlS registr11tion. (2) (a) The Registrar may remove the liquidator on the ground of neglig ence or misconduct or for any other sufficient ground af1er giving him an opponu n11y of being heard and appoint another person in his place. (b) On the death or resignation of the liquidator, the Reg1sirar may also appoin1 another person in his pince. (3) The appointment and removal of a liquidator shall be published in the locality 1n such manner ns the Reg1srrar may think fi1. 111. ()) On lhe appoinanenl of a liquida1or under secion 110, all assets, pro penies. effects and actionable claims of lhe Co-operative sooety or 10 which the Co operative socieiy is entilled, shall ves1 in the liquidator subject 10 general superin tendence and control of the Registrar. The liquidator shall immediately tnlce all necess ary s1eps to take possession of, and to prevent any loss or deleriorauon to. all asse ts, properties, effects and actionable claims of lhe Co-opera1ive socieiy or 10 which the Co-o perative society is entitled. (2) (a) Immediately ufter the date on which the order directing the disso luuon of the Co-operative society ta.Ices effecl, liquidator shall publish a notice in such Form as may be prescribed requmng all clwm:s B$8I0Sl the Co-operative society to be submiited to him within one month of the publicauon of the notice. (~) Pub~ication of notice shall be made by hani!ni ii. m 1he offices of t he Co operauve society, the concerned Gram Panchayat. mumc1pal11y, Panchay at Sami()· and Zilla Panshad and in the local daily or weekly newspaper if there be any. ln case ofCo c,perative sociel) having an assets of more than ten lakh rupees, publicano n of the nouce shall, in nddition to lhe nbcve maMer, be made m one leading Bengali dai ly newsp:iper. (3) No1~ 11hstanding anythinl! contained eh,ewherc m th1sAc1 or 10 1he b) laws of the Co-opera:n ·e society, l.hC' services of all employee~ of 1hc Co-opera 11ve $0C1ety, which has been ordered 10 be dissolved, shall be deemed to ha\e been 1e rmina1ed w11h effecl from the date on which the order directing dissolullon of the Co-ope ranve soc1et\ takes cffec e • [PAR1' l1l PART Ill] TilE KOLKATA GAZETTE. EXTRAORDINARY, MAY 25, 2010 n~ IVesr Bengal C<>-operarive Socieries Acr, 2006 (Chapter XII.-D1ssolu1ion o/C<>-opera1i11e sociery.-Secrion I 1 / .) Provided that liquidator may, subject to the approval of the Registrar, reappoint any such employees in connccllon with the worlc of liquidation on such 1erms and condiuons and for such period as he deems fit and such reappointed employee shall be paid his remuneration out of the fund of the Co-operative society. (4) (a) The liquidator shall open a savings bank account with the bank where the Co-opcrauve society had its account or with any other bank as the Registnlf may approve and authorise in the name of the "Liqu1da1or of ......... .... the Co-operauve society" No money shall be invested in any other manner except by way of fixed deposit with any Co-operauve socie1y or nationalised bank without prior approval of the Registrar (b) All moneys received in 1he proceedings of dissolution of the Co-operalivt: society shall be deposited into such account within the next working day following the date of receipt of moneys. (c) All payments over one hundred rupees out of the aforesaid account shall be made by the liquidator by crossed or account payee cheque. The receipts and payment!' shall be entered in the cash book which shall be signed by the liquidator on the date of receipts or payments. (5) (a) The liquidator shall maintain separate list of members, debtors and creditors having claims against the Co-operative society. Debts due to the Co-operative society by a member including a past member or the estates, nominee, heirs or legal representatives of a dcceascd person and its employees shall be determined by the hquida1or (b) The liquidator may at any time call meetings of the members or the creditor:. or joint mcc1ings of the members and creditors and such mee1ings may be called, held and conducted at such time and place and in such manner as he thinks fit. (6) For recovery of dues of the Co-operative society, the liquidator shall 1mmed1atel) issue notice to the debtors for payment of the debt with interest at usual rates. If such debts are not repaid within six months, the liquidator shall apply to the cemficate officer for recovery under the Bengal Public Demand Recovery Act. 1913. , 7) Ford 1s posal of movable and immovable propenies of the Co-operative society where total asset is wonh two lakh rupees and above, the Registrar may constitute a disposal committee consisting of the liquidator, an officer of the financing bank, ao officer of federal Co-operative society and a Government officer authorised by him. Absence of any of the members of the disposal committee shall not invalidate the proceedings of the disposal of propcn1es. (8) A notice shall be issued by the liquidator within three months from the date when the order directing dissolution talces effect, asking the creditors of the Co-operative society 10 submit claims against it with proper and relevant documents within two months of the date of notice. He shall prepare a final list of creditors with details of claims according to priority as mentioned in section 112. (9) Movable properties and actionable claims of the Co-operative society shall be sold to the highest bidder in public auction or to the person who has quoted highest price. For disposal of the immovable propcnies, the liquidator shall collect the prevailing market rate from the office of the Sub-Registn1r of the area and after fixing a minimum price, he shall invite quotations and sell such properties to the person who has quoted highest price. In both the cases of movable and immovable propemes, the disposal committee shall select the person who has offered the highest price; Provided thaL no liquidator or his relattvcs shall purchase directly or indirectly any pan of the assets of the Co-operative society. • ( I 0) The liquidator shall submu 10 the Registrar at least once in every six month~ period after his appointment or more often as the Registrar may require financial s1a1emen1 of the Co-operative socieLy, . . (11) The Di~tor of Co-operative Audit shall ca~se a<lfounts prepared by lhe hqu1dator to be audited and for the purpose of such audit, the liquidator shall fu111ish the audit officer with such documents, voucher and information as may be ncccssarv. ~udit fee shall be paid at r:c<1uced rate. The Director of Co-operative Aud 1. may, in h·is d1screuon, remit such fee in absence of adequate fund of the Co-operative soriety 67 B<n Acl Ill ol 1913 68 Priur11y or contribu11on ...eucd by h~1.11daL.X C'Jnc, llau°" of onlaof ~uwlauon THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25, 2010 The Wt'st Bt'ngal Co-opua11ve Socrt'flt'S Act. 2006. (Chapter XJ/.-Dissolution of Co-operative socit'ty. -St'ctions 112, I /3.) ( 12) If. after ndequa1e s1eps taken by the liquidator, any debt to the Co-operative society is found nol realizable. the Registrar on recommendation of the liquida1or may declare the debt as bad debt and non-realisable. Such debt shall be deleted from the assets of the Co-operative society. (13) The liqu1d1uor shall have power to give directions 10 any present or past office bearer, member. employee or any person possessing books, documents and a ssets of the Co-operative society for returning the same 10 him withm 1he penod to be f ixed by him. He may. for the purpose of d1ssolulion, in1erroga1e any of the above menti oned persons or any person having transaction with the Co-operauve society. (14) The liquidator shall. subject 10 general control and direction of the Registrar so far as u necessary for dissolution of the Co-operative society and for carrying o n 1ts affairs have the following powers or such powers as may be prescribed:' , (a) to do all acts and execulC all documents in the name and on behalf of the Co-operative society; (b) 10 ms111u1e and defend suits and other legal proceedings; (c) to borrow money, if required. on the ~urity of the assets of the Co opernuve society; ( d) to retain at the expc= of the Co-operative society any lawyer. accounront, engineer. appraiser and other professional advisor whose services are required; (e) 10 carry on business of the Co-operat1vesoc1ery as required for liqu1dar.ion, (I) lo calculate 1he cost of liquidation and determine the persons by whom and proporuon by which, they arc to be borne; (g) to make compro~ or arrangement with any person between whom and the Co-operative society there exists a dispute and 10 refer such d1spu1e 10 arbitration; (h) 10 detcrm.ine from time 10 time the conlribuuon to be made to 1he assets of the Co-operative society by members including past members or csuues. nominees, heirs or legal representatives of the deceased members or by the pas1 or present officers of the Co-operar.ive society or by the estate, norrunees, heirs and legal representatives of the deceased officer, (i) to pay claims against the Co-operative society including interest up 10 the date of the order for its dissolution according 10 the priority in full or rateably as the assets of the Co-operative society permit; (j) to give such directions 11S may be appear 10 him 10 be necessary ,n regard to realization, or dislribu1ion of assets of the Co-operative society; (k) to lake with the prior approval of the Registrar such action as may be necessary for such reconstruction, 1f there is any reason 10 believe thal the Co-operative society can be reconstruclCd. (15) In the event of an order of dissolullOf! berng set aside on appeal or a subsequent order of the Registrar for cancellation of the order of dissolurion. the liquida1or shall deliver possession of all esta1es, propen1es, effects, actionable claims, books, rec ords and other documents to the appropriate officers of the Co-operanve society: Provided that anything done, any action taken or any proceeding initiated by the liquidaior shall be binding on the Co-operative society and such actions or proceeding shall be pursued and continued by the officers of the Co-operauve society: 112. Norwithstandrng anything contnined in any law relat.ing 10 insolvency, the contnbution :issessed by a liquidator shall rank next to debts due to the Stale Governmen t or to any local authority m the order of priori1y in insolvency proceedings. 113. ( I) If the Registrar on exarrtination of any representation of at least one-third of the roral number of members or on his own motion, is of 1he opinion thllt a Co-oper ative society which has been direclCd to be dissolved under this Chapter should conunue to function. he may with prior approval of the Staie Government. cancel such ord er of dissolution. (2) In the event of cancellation of the order of dissoluuon. the Registrar shall corn.ti1u1e a board of dircc1ors from 11JT10ngs1 the members of the Co-operauve so cicly to take ch:irge from its liquidators and the said board shall convene a general meeli ng of the membe!"I for reconstitution of the board [PART lll PART Ill) Procedure roe deahn& wuh appl!Caliona roe loon Ralrictioa OD lrlnSf..- of. or dws• aa. oquicy of rcdcmpooa.. THE KOLKATA GAZETTE.EXTRAORDINARY, MAY 25. 2010 ~ Wut Btngal 0>-optrarivt Socittits Act, 2006. (Chnpttr XJI/.-Special provision for Co-optrativt agricu/Jure and rural devtlopmo11 bank, Ctnual Co-optrativt bank. prinuJry credit Co-operative socitry and aptX housing socitry.-Stctions I /4-117.) CHAPTERXIn Special provisions for State Co-operative Bank, Co-operative Agriculture and Rural Development Bank, Central Co-operative Bank, Primary Co-operative Credit Society, Apex Housing Co-operative Soc:idy and Urban Co-operative Bank. 114. (I) When any property is mortgaged to a Co-operative agriculture and rural development bank. financing bank or a primary agricultural credit Co-operative society for payment of a prior debt or part thereof of a mortgagor, the Co-operative agriculture and rural development bank, financing bank or the primary agricultural credit Co-operative society shall. notwithstanding the provisions of sections 83 and 84 of the Transfer of Property Act, 1882. by serving a notice in wnting m the prescribed 4 of 1882 manner require any person to whom such debt is due to receive payment of such debt or part thereof from it within such period as may be specified in the notice. (2) The person on whom a notice is served under sub-section (I) shall be bound to receive payment of the amount tendered by the Co-operative agriculture and rural development bank, financing bank or the primary agricultural credit Co-operative society. lf there is a disagreement between the mortgagor and such person as regards the amount of the debt, the receipt of the sum tendered by the Co-operative agriculture and rural development bank, financing bank or a primary agricultural credit Co-operative society shall not prejudice the right of such person lo recover the balance amount of the debt claimed by him. (3) lf any person does not accept the notice served under sub-section (I) or fails to receive payment of the debt or part thereof within the period specified in the notice, the debt or part thereof shall cease 10 carry interest from the expiry of such period. 115. (I) When application for loan Is made to a Co-operative agriculture and rural development bank for any approved purpose as may be prescribed, the bank shall, after due inquiry as 10 the title of the chargeable asset& offered as security of loan: (a) make such further inquiry in connection with the application for loan as it thinks necessary; (b) value the land according 10 the instructions issued in this connection by the State Co-operative agriculrure and rural development bank from time to time; (c) estimate the repaying capacity of the applicant for loan; and (d) examine the feasibility and utility of the purpose and dispose of the application within a period of two months from the date of receipt of the same. (2) When an application for loan is rejected, the reasons therefor shall be communicated by the bank 10 the applicant within seven days of its decision and where a loan is sanctioned either wholly or in part, the bank shall simultaneously lay down the terms and conditions subject 10 which such loan has been sanct.ioned. 116. NotwithstAnding anything contained in any other law for the time being in force, a mortgagor shall not be entitled to transfer or create a charge on the property mortgaged to a Co-operative agriculture and rural development bank, financing bank or a primary agricultural credit Cc>operative society without the coocurrencc of the said bank: Provided that the said bank $hall nil( give its concurrence without the previous sanction of the financing bank, if any: Provided further \hat the financing bank shAII, if it accords sanction. send a copy thereof to the ll\lstee, if any, appointed under section 4S. 117. Notwithstanding anything contained in any law relating to insolvency foe the time being in force. a mortgage executed in favour of Co-operative agriculture and rural development bank, financing bank or a primary agricultural credit Co-operative 69 70 Power 10 d!s1r1Jn 111d tale THE KOLKATA GAZETTE. EXTRAORDINARY. MA Y 25, 2010 Tht "est Bengal Co-optrarivt &>citrits Act 2006. (Chapter XJ/1.-Sptcial pro,•isionfor Co-operative agriculture and rural dtvtlopmtnt bank, Ctntral Co-operative bank. prim ary credit Co-operative sociery and apu housing socitry.-Sec 11ons I 18-120.J society shall not be called in question on the ground that II was n0t executed in good faith for valuable consideration or on the ground that i t was executed in order 10 gave the said bank preference over the creditors of the mortg agor. 118. A mortgage executed in favour of Co-oper ative agriculture and rural development bank. financing bank or a primary agricult ural credit Co-operauve society before or after commencement of this Act shall have p riority over loans of the State Government under Land Improvement Loans Act. 18 83 or the Agnculturists' Loan Act. 1884 granted after the execution of the mortgage a nd over all other registered or un-regJStered transfers effected on any account. 119. ( 1) Where a credit Co-operative society has granted a loan for improvement of any land to any person who in its opinion. has title 1 0 the SBJd land or is in lawful possession thereof and the amount of the loan hru. been u tilised wholly or in pan for such improvemenL llllY other person lllking such land un der a superior title or otherwise shall be liable to pay 10 the credit Co-operative society s uch loan as if that other person had executed the Gehan under section 55 for such pan of the loan and shall be deemed 10 be the debtor to that extent for the purpose of enforcing the Gehan by sole or otherwise. (2) The Gehan executed or deemed to have been exec uted an favour of, and all other assets charged 10. a financing bank or a Primary Agric ultural Credit Co-operauve society shall be construed to have been charged or dee m to have been charged by the said Co-operall ve society to the central Co-operative ba nk or the financing bank. as the case may be. with effect from the rune on which it was e xecuted or deemed 10 have been executed. (3) The gehan e~ecuted or deemed to have been exec utcd in favour of. and all other assets charged or deemed to have been charged to . a Co-operative agriculture and rural development bank. shall be construed 10 have been ch arged by the said bank 10 the West Bengal State Co-operauve' agriculture and rural development bank with effect from the date on which II was executed or deemed to h ave been executed. (4) Notwithstanding anything contained in any law fo r the time beang an force, where the credit c~opcracive grants loan to its membe r belonging to scheduled castes or ~cheduled tribes. or to any other member having restr icted rights of alienation of any immovable property, such member may create Gehan o n such immovable property an favour of the credit Co-operative society as security for such loan. If any such member defaults m making repayment of loan. the credit Co-o perauve society shall, without prejudice to any other remedy available under any law. c ontract or otherwise. be enutled 10 talce possession of such immovable property and lease the same to any pc~on belonging 10 the same castes or tribes as the defaulting me mber belongs LO and appropriate the next receipts from the lessee an repayment of loan a nd the defaulting member shall nc,r be enutled to recover possession of such munovab le propeny until loan has been repaid an full . (5) Before taking possession of any immovable prope rt) under sub-secuon (4). the credit C~Opcrative society shall sene upon the d efaulting member a notice of demand in wr..ting for repayment of the ouistanding am ount of loan wathm sixty days fr.>m the date of receipt of the notice sialang that m defau lt of such repayment wnhan the said period. the nght of j)0$5ession under sul:>-section (4) shall be enforced. 120. (I) If any sum due as an instalment or part of an instalment payable under mortgage in favour of a Co-operative agriculture and r ural development bnnk. cemral Co-operative bank or fiMncing bank or pri~· agricultura l credn C~operative society has remained unpaid for more than one month from the d ate on which it fell due. the co opcrmive agnculrure ]nd rural development bank, C entral c~opcrative banl:. the financing banl: or the primary agricultural credit c~pe rative society, as lhe case ma\ be. muy. in addition 10 any other remedy available to 11, apply to the Reg1mnr for recovery of such sum by distrain and sale of not mo re lhnn half of the produce of the mongaged land the produced stored in the house and its prenuses and the scandin~ 19 or 18~3 12 or18l-4 PART III) Applauon of the pnxttds or dl)tnm and sale Pow,cr 10 tN1,,g nlllJlt\g1gcc.i prop<ny to nk anJ dch,cr poueu1on 1n n:spcc1 of prnp<ny sold ... 11.hout lnlCf'\'CflUOO Of COW'\. THE KOLKATA GAZETTE. EXTRAORDINARY, MAY 25. 2010 The \Vest Bengal Co-operarn·e Societies Ac1. 1006. rChap1u XIII-Special provision/or Co-operative agriculture and nira/ deve/opmen1 bank. Cmrral Co-operative bClllk. primary credi/ Co-opl!rame sociery and apex housing socitry.-Secnons 121-123.J crops thereon by d imam and sale of the movable propeny that has been ncqu1rcd by the mongagor with the nmount of the loon advanced to him. (2) Notwithstanding nnything contained in the Transfer of Propeny Act. 1882 and subJCCt 10 provisions of this Act, the Registrar may on receipt of such application. signerl and verified by the secrcUJry or the manager or nny other person duly authorised by the board m this behalf setting fonh full particulars of the propeny required to be distrain~,J and on being satisfied about correctness of such paniculars. appoint a distrainer 121. The proceeds of any distraint and sale under section I 20 shall be applied JS follows: ( t) First, there shall be paid 10 the Co-operative agriculture and rural development bank or the Central Co-operative bank or the pnmary Co-operative credit socict;. as the case may be. at the prescribed rate (a) the costs of the sale: and (b) the other expenses incurred on account of the distra.int. (2) Secondly. there shall be paid to the bank or the Co-operative society. as the case may be, the amount for which the distraint was made nnd there shall be given 1c, the person whose property has been sold a receipt for the amount so paid (3) Thirdly. the residue. if any. shall be paid to the person whose property ha, bc~n ,old 122. Notw11hsU1nding anything contained m any other law for the ttme being ir. force. where a power of sale and delivery of possession m respect of the propeny sold. without the intervention of any court. is expressly conferred on a Co-operative agnculrure and rural development bank or a Central Co-operative bank or n primary co-operative bank or an apex housing society, or primary housing society or finnncing bank or primary agricultural credit co-operauve society by a mortgage deed in favour of the bank or the society, as the case may, if any instalment under such mortgage is not paid in full on the date on which it falls due, the board of directors of the bank or the society. as the case may be, shall. in addition to any other remedy available 10 it, have tl.e power. subject 10 the provisions of this Act and the rules, 10 bring the mortgage propeny 10 sale and 10 deliver possession of the propeny sold 10 the purchaser without til::. imcrvenllon of any court. 123. (I) The bank or the Co-operative society, as the case may be, shall be competent to purchase any tnongaged property sold under this chapter, but such propeny shnll be disposed ofby such bank or the Co-operative society, as the case may be, by sale withm one year from the date of purchase or where a trustee has been appointed, the bank or the Co-operative society. as the case may be. shall dispose of the property by public auction unless otherwise directed by the lIUstec, on the date not later than one year from the dntc of purchase. (2) The sale shall be advertised at least a month before the date of sale by (al descnbmg the propeny with full details in the local newspaper; (b) proclamation by beat of drum m the locality where it is s11ua1e and (c) publication of the sale notice in the office of (i) block level and land reforms officer of the area concerned; (ii) the collector of the distnct: (iii) the block development officer if the area concerned: and (iv) panchayat or municipality of the area in which the property is suuate. 71 (3) The provisions of sections 14M and 14Q of the West Bengal Land Reform~ wcs, Ben A<1 x Act, 1955 shall not apply to land acquired by the bank or Co-operative society as the or 10,~ raiyat by vinue of purchase under sub-section (I). 72 Tille or pun:hucr nOIIObc que1uoncJ Appo,ntrn<nl of Recc1..,cr, Power or Co· opc.raU'f'e ba.nL. or the: Co-opcnu-, M.N:IChUCIC • 1f monaaacd propcny .. dc>troycd or Stt\lnty become. in,uffk;icnt Po'-cr o( tnnlcc or WrnBcnpl State Co-opcrao,e and n,ral development blnk to direct°' to t.al..c ccrt&Jn acuon omccnor •ancultore and n,raJ de-.lopmcnt blnl etc. not to b,d on penonAl KC'OUnl al salcJ. Exempuon from personal anend.tncc THE KOLKATA GAZETTE, EXTRAORDINARY. MAY 25. 2010 771e West Bengal Co-operative Societies Act, 2006. (Chapter XJ/1.--Sptcia/ provision for Co-optraJive agricultu~ and rural development bank. Central Co-operative bank. primary credit Co-operatfrt! society and apex housing society.-Stctrons I 24-129.J 124. The mle of purchaser of any property sold under 1h1s chapter shall no1 be questioned an any coun by any mongagor or his successor-m-mteres1. 125. For the purpose of conduct of sale and delivery of possession of any property sold under this Chapter. the Registrar may. where no Receiver has been appoin1ed by any coun in respect of such property, appoint a Receiver an nccordancc w11h the pro, L\1on~ (PART lll of the Transfer of Property Act, 1882 and determine his remunerauon 1n the • nr 1~sz manner as may be prescribed 126. (I) If any propeny mongaged under this chapter is de~troyed wholly or in pan of, if the security for any loan is found 10 be insufficient on valuation in the manner provided in the rules or the by-laws. the mongagor shall be required on the service of a notice on him in the prescribed manner, to furnish such funher sccunty. and within such period. as may be specified in the notice. (2) If the mongagor fails to funush such funher secunty w11hin specified period, the entire amount of the loan together with the interest accrued thereon shall foll due at once and the Co-operauve agriculture and rural development bank or the State Co operative and rural development bank or the Central Co-operauve bank or the apex housing socieiy or the housing co-operative society or the financing bank or the primary agnculturaJ credit co-operative society shall, subject to the rules, be entitled to take action for recovery thereof under this Chapter. Explanatfon-For the purpose of th.is section a security shall be deemed to be insufficient 1f the value of the mortgaged property does not exceed the amount for the lime being due on the mortgage by such proportion as may be specified m the rules or the by-laws. 127. A trustee and, m the case of a member of Co-operative society, 1he West Bengal State agricul1ure and rurnl development bank may, in accordnnce with the provisions of this chapter and by order, direct a Co-operative agriculture and rural development bank to take action against a defaulter under this chapter within such period as may be specified in the order If the Co-operative agriculture and rural development bank fails to take such action w1tlun the specified period. the lnlSlee or the West Bengal State Co-opetative agricul1ure and rural development ban.k. as the case may be. may take such acuon and the provisions of this Act and the by-laws shall apply 111 respect thcre10. as if alJ references 10 the Co-operauve agriculrure and rural development bank were references 10 the lruStee or West Bengal Slate Co-operative agriculture and rural development bank. as the case maybe. 128. At any sale of movable or immovable property held under the provisions of this chapter, no officer of the bank or the Co-operative soc1e1y or sale officer or other person having any duty to perfonn in connection with such sale shall directly or indirectly bid for or acquire any interest in such propeny on his personal account 129. (I) -Notwithstanding anything contained in the Registration Ac1, l 908, it shall 16ofl' I08 not be necessary for a trustee or for any officer of a Co-operative agriculture and rurnl development bank or Co-operative bank or primary credn Co-operative society or Wes1 Bengal Sm1e Co-operative agriculture and rural development bank or any apex Co-.operative society or any co-operative society 10 appear in person or by agent a, any regislrlltion office m any proceeding connected with registration of any instrument executed by h1m in his official capacity or 10 sign as provided in section 58 of 1h01 Act (2) Where any such instrument is p~nled for registration. the regmering officer may. 1f he thinks fit. refer 10 the trustee or 10 the officer, ns aforesrud for any mfonn:uion relating thereto and. on being satisfied about the execution thereof. shall register such instrument. P,.1n llJ] Po,,.u,oCo opcnave •ancull\ll'C anc1 nnl development bank etc IO recewe money noc,o11mland1n, ,nns(er or moni•&• dce>d to w .. , Bcnaal s .... Co--opcn1,,.c 11n cul1u« and n,ral dc-.lopment b&nl.etc Monaa,e e,,eeutedby memben of 101111 Htndu family TIIE KOLKA TA GAZETTE. EXTRAORDINARY. MAY 25, 2010 The West Bengal Co-opuarive Societies Act, 2006. (Chapter XJIJ.-Sptcial provision/or Co-operarivt agriculture and rural development bank. Central Co-operarivt bank. primary credit Co-cperative society and apex housing sociery.-SectiOIIS I 30-134.) 130. Where a Co-operative agriculrure and rural development bank or a hou.sing Co-operauve society or a primary Co-operative credit society including pri~ary agricultural credit Co-operative society advances money on a mongage, hypothecallon. Gehan or any other charge out of the funds borrowed wholly or in pan from the w.est Bengal State Co-operative agnculture and rural development bank or the apex housing Co-operative society or a financing bank, as the case may be, such mortgage, hypothccauon. Gehan or any other charge shall be deemed with effect from the date of c~ccut1on thereof to have been transferred by the Co-operative society or the primary co-opcra1ivc cred11 society including primary agricultural credit co-operative society to the West Bengal State Co-opcrauve Agriculture and Rural Development Bank or Apex Housing society or the financing bank. as the case may be, and such mortgage, hypothccat,on, Gehan or any other charge which shall be deemed to have been transferred to the West Bengal State Co-operative agriculture and rural development bank or apex housing society or the financing bank. as the case may be, or shall be deemed to have been assigned to the trustee. (2) Notwithstanding the transfer and assignment of mortgage, hypothecation, Gehan or any other charge as aforesaid, (a) all money due under the mongage shall, in the absence of any specific direction to the contrary issued by the Registrar or a trustee in accordance with the provisions of this Act and communicated to the mongagor or any person liable under a hypothecation, or a Gehan or any other charge, be payable to the Co-operative agriculture and rural development bank, the primary housing co-operative society or the primary credit Co-operative society including primary agriculrural credit co-operative society, as the case may be, and such payment shall be valid as if the mortgage, hypothecation, Gchan or any other charge had not been so transferred or assigned; and (b) the Co-operative agriculture and rural development bank. the primary housing Co-operative society or the primary credit Co-operative society including primary agricul1ural credit co-opetative society, as the case may be. shall, in the absence of any such direction communicated to it. be entitled to sue on the mortgage, hypothecation, Gchan or any other charge. 131. ( I) Where a mongage executed before or after the commencement of this Acl in favour of a Co-operative agriculture and rural development bank or a financing bank or pnmary credit co-operative society including primary agricultural credit co-operative society, as the case may be, is called in quesuon on the ground that it was executed by the manager of the joint Hindu family for a productive purpose not binding on the members thereof, the burden of proof sh'lll, no1Witbstanding anything contained in any other law for the time being in fo«e. rest on the pecson who calls the mortgage in question. (2) For the purpose of this section, the expression "Productive purpose• within the meaning of sub-clause (ii) of Explanation to ctauie (16) of section 4 shall be deemed 10 be a purpose binding on the members (major or minor) of a joint Hindu family. 131. The special provisions for the Co,opcralive agriculture and rural devclopmenl bank conta.ined in this chapcer shall apply, mull.tu mutandis, to the branches of the West Bengal Stale Co-opcn,.tivc 1gricul1Ure and rural development bank in so fas as they perform the funclion and discharge the duties of a Co-operative bank. 133. The provisions of sections 126, 127 and 130 wll apply, mutatis mutandis, to la.ns issued against a Gehan of immovable property and hypothecation of assets credited with the help of loan. 134. ( I) Registration and admlnistrat.ion of an Urban Co-operative Bank will be governed by this Act and the Nies made thereunder. (2) Such bank will be regul81Cd by the direction of the Reserve Bank of India and shall have the power to amend its by-laws. 73 7-1 Ac..:.culo documenu: ctc Po,.cr to cn(occc 1ucndancc of '-"llnCSS and produc11on or documents Dch,ery of c:.~::C::nu rt< of Co ope:nu\c IOCtClY Po1>cr 10 d1'"1 cor,dit1onaJ ltt.chll\C'P'll THE KOLKATA GAZETI"E. EXTRAORDlNARY, MAY 25. 201 0 The \\~st Btngal Co-optrmivt SocietttS Act. 2006. (Chapter X/V-Enforctmtnt of obligation and ff!covery of sums dut.-Stctions 135-138.) CHAPTER XIV Eororcement or obUgation and recovery or sums due 135. The Registrar. an audil officer, arbi1.rntororany person conduc ung an mspecuon or mqu1ry under chapter X shall. at all reasonable umcs. have fre e access lo books. accounts. documents. securities. cash and other propenies belonging 10. or m the custody of. a Co-operauve society. 136. ( 1 l The Registrar. an audit officer. arbitrator. liquidato r. or any person conduct mg an i nstpection or mqu1ry under chapter X shall. m so f ar as necessary for carrying out any of the purposes of this Act. have power 10 summ on and enforce the anendance of witness and pames concerned and 10 exarrune them upon oath and 10 compel the production of any books. accounts. documents. securi ties. cash and other properues by the same means and so far as may be in the same manner a s provided in (PART [II the Code of Civil Procedure. 1908. s or l'l08 (2) Where any person summoned under sub-section (I) fruls. or refu ses to produce books. accounts. documents. secunues. cash or other propen1e s specified 10 the summons. any Metropolitan Magisu,ue or Judicial Magistrate of the first class m whose jurisdiction such person resides shall. without preJudice 10 the penal measures provided in this AcL on a complrtint from lhe Registrar or any person author ised by him an lhis behalf. issue a warrant for the production of such books. accounts. do cuments. securiucs cash or other propenies to the Registrar or to such authorised perso n: Provided that the person authorised by the Registrar shall not make any complrtint under this section without previous snnction of the Registrar. 137. (I) If che board of II Co-operative society or a liquidator appoi nted under section I 07 is resisted in. or prevented from. taking possession of any books, accounts. documents. sccunties. cash or other propenies of a Co-operative so ciety by any pen.on not entitled 10 be or to remain in possession of the same. the board of directors or the liquidator, without prejudice to the penal measures provided in thi s AcL, apply 10 any Metropoli!Jln Magistrate or Judicial Magistrate of the first class withm whose junsdiction such person resides or such books, accounts, documents. securi ties. cash or other propemes lie for seizing and taking possession of the same. (2) On receipt of an applicauon under sub-section (I), such Metropoli tan Magistrate or Judicial Magistrate of the first class. as lhe case may be, shall a uthorise any pohce officer not below the rank of sub-inspector to enter and search any place where such books. accounts. documents. securities. cash or other propenies are kept or likely 10 be kept and to seize and hand over possession of the same 10 the perso n authorised by the board in this behalf or to the liquidator. as the case may be. 138. Where it appears 10 the Registrar that any person or any Co operative society. with intent 10 defeat or delay the execullon of any order that may be made under this Acl, (a) i~ about to dispose of the whole or nny pan of his or its propen y, or (bl is about to remove the whole or any part of h1~ or its propeny . from the local limits of the jurisdiction of the Registrar. the Registrar may. by order in writing, d1rec1 such person or Co-operative society within a ume 10 be fixed by him either to furnish security in such sum as may be specified 10 tne order or to produce and place at the disposnl of the Registrar, when reGuired. :he said propen)· or L~e value of the sum or such ponion t hereof ns may be considered sufficient by the Regmrar or 10 show cause w hv he C'r it should nm be furmshed such <ecuritv. The: Rc~Mrar muv aho ,.; the said oroerdire~t the con<liuonal DIIJ~hmen't uf said property 01 ;uch p omo11 r ·~c-f .:.s he !hUlks fi1. P ... RT Ill) PowcrlOdll'CCI payment of duu Penalty fu< ~rru,n mUJcmanaun TifE KOLKA TA GAZETTE. EXTRAORDINARY, MAY 25, 2010 Tht West Bengal Co-operaJivt Socitrits Acr, 2006. (Chapter XIV.-Enforcemtnf of obligation. and recovery of sums dut.-Stcrion.s 139-14/.) 139. Notwithstanding anything contained in Chapter XI. the Registrar or any per~on empowered under the rules may, of his own motion or on the written requisition of 2. Co-operative society or the Financing bank for the recovery of any sum due by a defaullmg mcmber(includmg a deceased member) of a Co-operative society. after such inquny as he may consider necessary or expedient, mnke an award directing such member or his ~urety or the successors. or a legal heir of a deceased person, who may or may not be a member of the co-operative society. to make payment of the amount found 10 be due. 140. (1) Where on an audit under sccuon 97 or an inspecuon under section 99 or an inquiry under ,ection 100 or an inquiry by a commission constituted under the Commission of Inquiry Act. 1952 or a repon from the liquidator, it appears to ll1e Registrar that any officer mc-luding a former officer of any Co-operauve society has st any 11me after the commencement of this Act and within six years prior to the date of \Uch audit. inspection. inquiry or repon. as the case may be Cal mtenuonally made or authorised or allowed any payment which is, or may be deemed to be, contrary 10 the provision of this Act, or the by-lal's or any other law for the time being in force, or (b) by reason of negligence in respect of any matt.er involved the Co-operauve socictv in any lo~ or deficiency; or (c) mis-appropriated or fraudulently ret.ained any propcny of the Co-operative society or committed criminal breach of trust or forgery or falsification of the accounts, the Registrar may. after giving such officer an opponunity of being heard, by order in wnting require such officer to pay such sum with interest to the assets of the Co-operative society for making good the loss sustained by II in direct consequence of commission or omission specified in this section or 10 restore such propeny as the Registrar may think fit and also 10 pay such sum as tJie Registrar may fix to meet the cost of any proceeding under this ,;cc1ion. ('.?) The provision of this section shall apply notwithstanding that such officer is by rea~on ofh1s act or omission punishable under any law for the lime being in force. 141. Where it appears to the Registrar that any person has contravened the provisions ofth1s Act or the by-laws (al by ~ll!mg or voung as a director of the board of a Co-operative society or votmg m the 3ffairs of the Co-opemive society as the representative of another Co-operauve society which a member of such Co-operauve society or exercising the rights of member of the Co-operauve society when such person was not entitled 10 sit or vote or exercise such rights, as the case may be; or (b) by continuing, as an officer or office bearer of a Co-operative society after incurring disqualification thereof: or (c) by utilizing a loan for a purpose other than the purpose for which it was granted; or (d) by not depositing with the financing bank any amount of loan recovered from any member of a Co-operauve society which the Co-operative societ• or ~uch member is bound 10 deposu with the financing bank by way of repayment under any agreement; or (e) by rcsisung or prevent.mg the board of a Co-operative society or its officc-r or a liquidator from ta.king possession of any books. accoums. documen~ securities. cash or other properties of a co-operative societ,, or 75 76 RcJistru·s po.,.t, to enforce pcrform1ncc of oblis1uons. Rt'conry of iurni du,: Acls o(Co oper111ve MJCicty no11obc ,n...,ahdatcd by ccna1n dcfccu THE KOLKATA GAZETTE. EXTRAORDINARY, MAY 25. 2010 The \Vest Bengal Co-opua11ve Societies Act, 2006. /Chapter XIV-Enforcement of obligation and recovery of sums due.-Sec11oris 142-/44./ (f) by not producing any books. accounts, documents. securities, cash or other propenies summoned under sub-section (I) of section 136; or (g) by transferring a plOl of land or a house or Oat in a building in contrnvention of the provision of section 92. the Registrar may after giving such person an opportunity of being heard. by order in wnting direct such person to pay to the assets of the Co-operauve society by way of penalty such sum with interest. as the Registrar thinks fit for each such contravention and such person. 1fhe 1s a director of the board, shall cease to be the director fonhwith and shall not be eligible for being re-elected to the board for a penod of five years. 142. Notw1th~tanding anything contained elsewhere in this Act. when a Co-opero11ve society fails to take any action required to be taken by it under this Act or its by-laws (a) within such period as may be specified in this Act or the by-laws; or (b) where no such period is specified. within such period as the Registrar may, ha\'ing regard 10 the nature and e,ttem of the action to be taken. specify by nouce in wnung, the Registrar may himself or any person authonsed by him in this behalf, may take such action at the expense of the Co-operative society or may call upon any officer of the Co-operative society, whom he considers to be responsible for cnnying out his direcuons and may. after giving such officer an opponunity of being heard. require him to pay to the assets of the Co-operative society a sum not exceeding twenty-five rupees for each day unul his directions a.re carried out. 143. Any sum payable to the State Government or to the Co-operauve society in accordance with any order, decision or award under this Act, shall be recoverable in the [Pur Ill manner provided in the Second Schedule to this Act or as a decree of a court under the l or 190.~ Code of Civil Procedure 1908: Provided that notwithstanding anything contained in the Code of Civil Procedure, 1908, or in nny other law for the time being in force. any sum payable in accordance with an award made under section 139 shall be rccoverable (a) if the salary or wages of the member of the Co-operative society or surety e~ceeds one thousand five hundred rupees per mensem. by attachment of such salary or wages to the extent of instalment m default or half of the difference berwecn such salary or wages and five hundred rupees whichever is less. or (b) if the salary or wages of the member of the Co-operative society or of a surecy docs not exceed one thousand five hundred rupees, by attachment of such salary or wages to the extent of instalment m default or six paise in every rupee of such salary or wages whichever is less. 144. (I) No act of a Co-operative society or its board or any officer or liqwdator of such Co-operative society done in good faith in cormcction with the affairs of such Co-operative society shall be invalidated by reason only of some defect subsequenlly discovered in the organisation or m the constituuon of the board or m the appointment of such officer or liquidator or on the ground that such officer or liquidator was disqualified for such appointment. (2) No act done in good faith by any person appointed under this Act shall be invalid merely by reason of the fact that his appointment has been cancelled b)' or m consequence of any order subsequenlly made under this Act (3) The Registrar shall decide whether an) net was done in good faith in connection with the affairs of a Co-operative society. PART Ill] lndemn11y and bot to Jurud1cuon or Couru Tnbunol TiiE KOLK.AT A GAZETTE, EXTRAORDINARY, MAY 25, 2010 The West Bengal Co-of)'!raJive Societies Act, 2006. (Chapter XV.-Jurisdicrion, ApfJ'!al and Review.-Sections /45. /46.) CHAPTER XV Jurisdiction, Appeal and Review 145. (I) No suit, prosecuuon or other legal proceedings shall lie against lhe Registrar or any person authorised by him or against a board of directors in respect of anything done or pu,poned to be done in good faith under this Act. (2) Save as provided in this Act, no Civil Coun or Revenue Coun or Consumer Disputes Redressal Forum shall have jurisdiction in regard to anything done or any action taken or any order passed under !his Act and. in panicular, in regard to (a) the registration of a Co-operative society or its by-laws or an amenclment of its by-laws: or (b) the dissolution of the board of a Co-operaive society and the management of such Co-operative society on such dissolution; or (c) any matter concerned with dissolution or liquidation of a Co-operative society; (d) any dispute required to be referred to the Registrar under section 102. (3) While a Co-operative society 1s being dissolved, no suit or other legal proceeding relating 10 the affairs of such Co-operative society shnll be proceeded with or ins1itu1ed against the liquidator, or such Co-operative society or any member thereof except by leave of the Registrar and subject to such conduion as the Registrar may impose. (4) Save as provided in this Act, no order, decision or award made under !his Act ,hall be challenged, set aside, modified, revised or declared void in any coun on any ground whatsoever except for want of jurisdiction 146. ( I) Tbe State Government shall, by notification, constitute one or more Tribunals which shall consist of a Oiainnan and not less lhan (i) one judicial Member; and (ii) one administrative Member. (2) No person shall be qualified for appointment (a) as the Cllainnan unless he is or has been a Judge of lhe High Coun or is holding or has held a post not below the rank of Judicial Secretary or Legal Remembrancer; (b) as a Judicial Member unless he has held or is holding a post not below the rank of Dislrict Judge belong to Higher Judicial services; (c) as an administrative Member unless be bas held or is holding a post not below lhe rank of Joint Secretary in the State Government. (3) Where more than one Tribunal is constituted, the Slate Government shall, by notification, specify the district or dislriets over which such Tribunals shall have jurisdiction. The Tribunals, so constituted, shall have jurisdiction over the affairs of ~rative society having registered offices situated within the territorial jurisdiaion of such Tribunals. ( 4) (a) A Tribunal shall eitcrcisc all the powers conferred upon an Appellate Coun by order XLI ID the First Schedule to the Code of Civil Procedure, 1908. 5 or 1901 (b) Any person aggrieved by an order made by a Tribunal may, wilhin ninety days from lhe date of such order, apply to such Tribunal for review of such order on one or more grounds specified in rule I of Order XL vn of the Code of Civil Procedure, t 908. (c) A Tribunal shall not make any order on an application made under clause (b) without giving the person likely to be affected adversely by such order an opportunity of being heard and such application shall be disposed of by the Tribunal within three months from the date of its presentation. 77 78 App«W,lc onlcn, apptllatc aullionty and i:::sti~~ THE KOLKATA GAZETTE. EXTRAORDINARY. MA Y 25, 2010 Tnt1 Wt1st Btngol Co-operative Socitties Act, 2006. Chaprtr XV.-Junsdiction, Apptol and Rt!Viffii-St! Ctrons 147, 148.) (d) When 1111 appeal or application for review is filed before n Tribunal. 11 may make. on such tenns and condiuon as n thinks fit. suc h interlocutory order as may appear 10 it just and convenient after giving the parties an opportunity or being heard. (e) The Tribunal shall exercise JU0sd1ction, power an d authonty and perform function conferred or imposed on 11 by or under this Act by qne or more benches. each bench consisting of such number or Judicial Member a nd adnunistrative Member as may be detenmned by the Chairman: Provided that each such bench shall eons1st of one Ju dicial Member and one administrative Member: Provided further tha1 1f the Jud.icial Member and the adnu nistrauve Member of the bench are divided in their opimon on any matter such ma uer shall be referred 10 a bench which shaJI consist of one administrative Member and t wo Judicial Member of whom the Chairman shall be one: Provided also that in the case of difference of opinion betw een two or more benches. the State Government shall constitute a large bench c onsisting of such number of members as the State Government may think fit £xp/ona11on.-For the purpose of this sub-section Judic ial Member shall include 1he Chairman. (5) The State Government shall by notificauon fut the pl ace at which the Tribunal may hold its situng. 147. ( I) An appeaJ shall lie from an order shown in column (2), to the authonry shown in column 4. witlun the penod shown m column (5), of 1he Tlurd Schedule to this Act. [PART lJI (2) The provisions of the LlrnitauonAct. 1963. shaJI not ap ply to an appeal referred 36 or ll/6J in sub-section (I). (3) When an appeal is presented after the expiry of the per iod oflimitation specified therefor in the Third Schedule 10 this Act. it shall be accomp anied by an application for condonation of delay setting forth the facts on which the Appellant rehes 10 sausfy the Appellate Authority that he had sufficient cause for not prefemng appeal withrn such time. if, after hearing the both sides. the Appellate Author ity 1s satisfied that the appellan1 had sufficient cause for not preferring the appeal within s uch time. then it may condone delay and may proceed to deal with the appeal. (4) Save as provided in the Third Schedule to this Ac1, n o appeal shall lie against an order. decision or award made under this Act. (5) An appeal referred to in sub-section (I) shall be dispos ed of by the Appellate Authority within six months from the date of its present ation. 148. (I) The State Government may of its own motion or on an application made in the prcscnbed manner by any person aggrieved call for a nd examine the records of any inquiry held or inspection made under this Act or the pro ceedings of the Registrar or of an) person subordinate to him or acting on the authority of the Registrar and may make thereon such orders as it thinks tit after scn ing nouccs to perso ns likely to be affected by such orders (2) The Registrar may, of hi~ own motion or on an apphcahon made m the prescribed manner, by any person aggneved (a) rcnse 11ny order made by h1msclf, or (bJ call for and cxarmne the records of an inquiry hel d or mspecoon made under this Act or the proceedings of any person subord inate to him not vested with the powers of Regisu-nr or acting on his auth ority, and if he is of opinion that any order. decision or award or an~ pro ceeding so called for <hould be for any reason modified. annulled or revers ed. he may make ~uch orders, thereon as he thmlcs fit: P.ur lfl) Or1cncnAniJ rcn.11111~" Cocn,unc,, or offence. PrQum.ptaon n1scd b) tntf)' m rt1~1cror mcmt"ter:. Proof of <niry ID book ofCo opentr ... e: IOClet)' THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 The \Vest Bengal C()-{)p<!fDtive Societies Act. 2006. (Chapter XVJ.-Offences. penalties and procedures.-Sections 149-J 52,) Provided !hat lhe Registrar shall. before he makes an order under clause (al or clause (b).gave any person likely to be affected adversely by such order an oponunity of being heard (3) Nothing contained an sub-sccuon (I) or sub-sccuon (2) shall apply 10 any proceeding in which an appeal lies to the Tribunal under secuon 147 CHAPTER.XVI Offences, penalties and procedures 149. Any person menuoned in column (3) and guahy of an offence shown in column 12> ol the Founh Schedule 10 this ACI shall. n01w1thsll111dang anylhang contained elsewhere m 1h1~ Act or any other law for the ume being in torce, be liable on conviction 10 the penally shown an column (4) of the said Schedule. 150. (I) No coun inferior to the coun of a Metropolitan Magistrate or a Judicial Magistrate of lhe first class shall try any offence under !his Act. (2) For lhe purpose of the Code of Criminal Procedure. 1973 every offence under 2 of t9i4 this Act shall be deemed to be non-cognizable. (3) Notwithstanding anything contained an lhe Code of Criminal Procedure. 1973, an offence punishable under section 403 of lhe Indian Penal Code, 1860 in respect of 4S of 1860 any movable propcny of a Co-operative society shall be cognizable (4) No prosecution shall be instituted under !his Act, without the previous sanction of the Registrar (5) A prosecution under this Act shall be institued by the Registrar or any person authorised by him in this behalf. All expenses for a prosecution inslitued on the request of a Co-operative society shall be borne by or recoverable from such Co-operative socaet) 151. I I) A register of members or shares properly maintained by a Co-operative society in the course of its business shall be prima facie evidence of {aJ the date on 1,1,hich the name of any person has been entered in such register as member of such Co-operative society, and (bJ lhe date of which such person has ceased to be a member of such Co-operative society (2) If for any reason the register of members of shares in not available, the detailed last of members with shareholding enclosed with the audit repon or inspection repon. if any, shall be treated as prima facie evidence of membership as on the date the balance sheet is drawn up or inspection is held. 152. (I) A copy of any entry in a book of a Co-operative society regularly kept in the course of its business shall, if cenified by duly authorised person, be accepted in any suit or legal proceedings as a prima facie evidence of the mauers, transactions and accounts therein recorded in every case where, and to the same eiuent as. the ongmal entry as admissible. (2) No Officer or liquidator of a Co-operative society or no other officer in whose custody the books and other records of a Co-operative society have been kept after the Co-operative society has been dissolved shall, in any legal proceedings to which the Co-operauve society or the liquidator !hereof is not a pany, be compelled to produce any such books or other records, lhe conten!S of which can be proved under sub-sccticn (I) or to appear as a witness can be proved under sub-section (I) or to appear as a v.itne,~ to prove mauers, 1ransactions or occounts therein recorded unless he is \pec1fically directed by the order of the coun or lhc Regastar or an arbilrator 79 80 Punishment ro, Compt pn,c11ce• OITcncu and pcnal11cs THE KOLKATA GAZE1TE. EXTRAORDINARY. MAY 25. 2010 The \Vt'st Bt'ngal Co-opuative Socrt'tiu Act. 2006. (Chapter XVI.-Ojfenct'S. pt'naltrt's and proadu~s.-St'crion /53. Chapttr XV/1.-Misetllaneous.-Smions I 54· I 57.J 153. Any officer or employee or member of Co-operanve society or any arbtlralor or liquidator appointed under this Act. who (a) sanctions and receives, as the case may be. any benam1 loan. or (b) acceplS or obtains or induces 10 nccep1 or auemplS to obunn from any per;on for tumself or for any other person any grauficauon as a mouve or [PART Ill reward as is menuoned m section 161 of the lndaa Penal Code. 1860. or ~5 or 1St<1 (c) signs the minutes of any meeung of the Co-operauve society w1thou1 nllending such meeting, or (d) dishonestly or fraudulently misappropriates. or otherwise converlS for has use any property of the Co-operative society entrusted to ham or under has control or allows any other person so 10 do. shall be guilty of corrupt practice and shall be punishable with imprisonment for a term which 'shall not be less than one year but which may extend to two years and shall also be liable to such fine as may be prescribed: Provided tha1 the Court may, for any special reason to be recorded in writing. impose a sentence of imprisonment of less than one year. CHAPTER XVIJ Miscellaneous 154. Tots Act shall have effect notwithstanding anything contained many other law for the time bemg in force or m any contract. express or implied or in any insuu.ment having effect by vutue of any enactment. Co-opcr111-. bank 155. (I) Every Co-operauve Bank accepting deposits from non-members shall get 10 ,., ,nsur<d itself insured under the Deposit Insurance Corporation Act. 1961 . 4 7 or 1901 Po .. ., 10 add to Fifth Sch<dul< Powu to malr.e Nies (2) Notwithstanding anything conlAined elsewhere m this Acl. the Registrar shall not rake any action under this Act in respect of an insured Co-operative bank without obtaining previous sanction of the Reserve Bank of India and w1thou1 compliance with the rcquiremenlS of the Deposit Insurance Corporation Act. 1961. ExplanatiolL-"lnsurcd Co-operative bank" shall mean a Co-operative bank which is an insured bank within the meaning of clause (l)of section 2 of the Deposit Insurance Corporation Act, 1961. 156. The State Government may, with the approval of the Central Government, by notification. add 10 the Fifth Schedule any other Co-operative society and thereupon the Schedule snail be deemed 10 be amended accordmgly. 157. (I) The State Government may, after previous publication in lhe Official Gaze11e, make rules for carrying out the purposes of this Act for the whole or any pan of West Bengal or for any Co-operative society or class of Co-operative societies: Provided that any such rules may be made without previous publication if the State Government is of opinion that in the public interest such rules should be brought inio force a1 once. (2) In pan 1cular. and without prejudice 10 the generaluy of foregoing power. such rules may provide for all or any of lhe matters which may be. or ore required to be. prescribed or made by rules. (3) Any rule lllllde under lhis Act may provide that any person committing a breach thcreof bhall on conviction by II Court be pUIU.\hablc with fine which may c~tcnd 10 fi,e hundred rupecb and. when the breach is a continuing one. with a further fine which may rxtend to ten ru pees per day for so long ns the breach continues after buch conviction. PAltT ITT] niEKOLKATAGAZEITE.EXTRAORDINARY,MAY2S,2010 TM Wur Bengal Co-operarive Socieries Act, 2006. ( Firn Schedule, Second Schedule.) (41 All rules made under this Act shall be laid before the State Legislature for not less than founccn days as soon as they arc made and shall be subject to such modification, if any, whether by way of repeal or amendment, as the SUlte Legislature may make during the session in which they arc laid or the session immediately following. (S) Any modification in the rules made by the SUlte Legislature under sub-section (4) shall be published by the State Government by notification and shall, unless some latter date is specified in the notification. came into force on the date of the notification. Serial No. (I) I. 2. 3. 4. Serial No. (I) I. 2. ARST SCHEDULE Power exclusively exercisable by the Reiistrar [Sec section 13(1).) Section Power (2) (3) Sub-section (I) of To require any office (including a former section 140. officcr)"to pay to the assets of the Co operative society for making good to loss sustained by it in direct consequences of the commission or omission specified or to restore any propcny misappropriate or fraudulently retained and to pay the cost of any proceeding under this section. Section 141. To impose pcOAlties for certain contraven tion of the provisions of this Act or the rules or the by-laws. Sub-section (3) of To give leave and impose conditions for section 145. proceeding with or instituting any suit or other legal proceeding against a liquidator or a Co-operative society or a member thereof. Sub-section (4) of To sanction the institution of any section ISO. prosecution under this Act. SECOND SCHEDULE Recovery or sums due [See section 143.J Nature of sum due MCUl<ld of recovery (2) (3) Sums payable towards dues By the certificate officer as a public recoverable under section 59. demand upon requisition by the Co-operative society. Audit fee payable under sub- By the certificate officer as a public section (I) and the eitpcnses demand upon requisition by the fof completing the accounts Diffx:tor of Co-operative Audit or payable under sub-section (4) with his approval by the Audit of section 97. officer. 81 82 THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 71i,. H~sr Bengal Co-opuaJ1ve Soc1eries Acr. 2006. /Tiu rd Schedule. J Sena! No. Nature of sum due Method of recovery SI. ~o. ( I) 1 L (I) (2) (3) 3. Cost of inspccuon or inquiry By the certifica1e officer as a public apponioned under secuon 10 I. demand upon requisllion by the Registrar. 4 , Sums payable by an award By the.cenifica1e officer or by a civil under secuon 103. coun having local Jurisdiction upon applications by the nwardee as a public demand upon requist1on by the awardee. 5. Sums assessed by a liquida1or By the cenifica1e officer as a or conmbutions under clause public demand upon requ1S111on by (h) of Sub-section (14) of the liquidator. secuon 111. 6. Dues payable by a member or By the certificate officer as a his surety of successor of a public demand upon requ1s1uon by deceased member under the Registrar or by any person secuon 139. authorized by him or by the Co operative society or by the financmg bank. 7. Sums payable by an officer By the certificate officer as a (including a former officer) of public demand upon requisition by a Co-operative society under the Registrar. section 140. 8. Sums payable under' section By the certificate officer as a I 41 by a pe™>n for ccnain public demand upon requis1uon by contravention of the provision the Registrar. of this Act or the by-lows. 9. Expenses incurred and the By the cerufica1e officer as a sums payable under public demand upon requisition by sec1ion 142 the Registrar. THJRD SCHEDULE Appeals (Su secuon 147.] Appeal lies agamsl By whom Authority 10 1 1 Period of appeal may be whom appeal hmi1at1on preferred shall lie (2) (3) (4) (5) An orrle-r of change Any memt>cr The Co- Two months from , c:-f liability, tramfer or creditor or operative the date on "'hich : ol assets and Co-operative Tribunal 1he order is corn liability. division socie-ty municated or 1wo and amalgamation aggrieved b) momhs from the nf a Co-opcra11ve such order date o f knowledge ,oc1ety under ' of ~uch order scc11on: I [PART Ill PART ill] SI. No. ( I ) 2. 3. 4. 5. 6. 7. 8. 1liE KOLKATA GAZE'ITE, EXTRAORDINARY, MAY 25, 2010 ~ Wut Bengal Co-operalive Societies Act, 2006. (Third SchedJk) Appeal lies against By whom Authority to P«iod of appeal may be whom appeal limitation preferred shall lie (2) (3) (4) (5) An order of Any member The Co- Two months from amalgamation or or creditor or operative the date on which reorganizauon of Co-perativc Tribunal the order is corn Co-operauve society municated or two societies under aggrieved by months from the section 22. such order. date of knowledge of such order. An order for Any director TheCo- Two months from dissolution of a of the board. operative the date oo which board of d ircctors Tribunal. the order is corn or disqualification municated or two thereof under months from the section 34. date of knowledge of such order. An order dissolving Any director The Co- Two months from a board and of the board. operative the date on which appointing admini· Tribunal. the order is corn strator undec municaled or two section 35. months from the date of knowledge of such order. Any refusal by a Any applicant The Registrar. Thirty days from Co-operative society aggrieved. the date of receipt to admit an of decision. applicant as member under sub-section (3' of section 64. An order for Any person TheCo- One month from apponionment of aggrieved. operative the date on which COil undec Tribunal. the order is lCClioa IOI. communicated. An order of the Any person TheCo- One month from Repsttar In an aggrieved .. operative the date on which appeal under sub- Tribunal. the order is ICCtioo (5) of communicaled. section 93. An order, decision Any person TbeCo- One month from the or awvd under agricved. operative date on which the aectionl03. Tribunal. certified copy of the order, dccisioa or award is supplied provided that the period of delay in filing an application for certified copy shal I be taken into aocount in comput Ing the period of one month. 83 84 SI No. ( l ) 9. 10. 11 12. 13. SI. No. (I) I. 2. I I THE KOLKATA GAZETTE. EXTRAORDlNARY. MAY 25. 2010 The West Bengal Co-opuame Societies Act, 2006. ( Founh Schedule.) Appeal lies nglllllSt By whom Autho rity to Period of appeal may be whom appeal limitauon preferred shall lie (2) (3) (4) (5) An order for Any member The Co Two months from dissolution of a Co- of the Co- operat ive the date on wtuch operauve society operauve Tnbun al. the order is under Chapter XII society of a communicated or creditor or the the date of Co-operative knowledge of such society. order. An order. decision Any person The Registr ar Two months from or award of a liquidator under sceuon 111. An order. under section 140 for payment of compensauon or restorauon of property. An order under section 141 for payment by way of penalty. An order under section 142 for payment of line. Offence (2) aggrieved. Any person The Co aggrieved. operative Tribunal. Any person The Co aggrieved. operative Tribunal. Any person The Co aggrieved. operative Tribunal. FOURTH SCHEDULE Offences and Penalties [See sccuon 149.) Person liable (3) Unauthorized used of the Any Company. word "Co-operative" or its Co-operative society cquivaleOI in contra- or Person or a body vention of section 9 of persons. I Wilfully mwng false Any person mwng return or furnishing false such return or information reqwred :o furnishinR such be made or furnished i informati;n. I under this Act. the date on which the order, decision or award 1s communicated. Two months from the date on which the order is commurlicated. Two months from the date on which the order i~ commurtic:JP..d. Two monll,, from the date on which the order is communicated .. Penalty (4) Imprisonment for a term which may extend to two years or fine which may extend 10 five thousand rupees or both. Imprisonment for a term which may extend to si'.'I months or fine which mn} extend to five hundred rupee, or both, (P~RT Ill l I I I SI. No. (I) 3. 4 5. 6. 7. 8. THE KOLKATA GAZETTE. EXTRAORDINARY. MAY25, 2010 ~ West Bengal Co-cperative Societies Act, 2006. (Fourth Sch.edJUL) Offence Person liable Penalty (2) (3) (4) Transfer of any property Person by whom or Fine which may extend without previous pennis-- on whose behalf to the value of the sion of a C~operative the property is property or five thousand society on which it holds transferted. rupees which is more. a first charge under section 53. Transfer of any propcny Person by whom or Fine which may extend on which a charge has on whose behalf the to the va.l ue of the been created under property is property or five thousand clause (a) of secuon 54 transferted. rupees which is more. in con1raven11on of clause (c) of tha1 section. Failure to make deduc- The employer of Imprisonmeni for a term tion and payment under the member or the which may extend 10 six section 59 in satisfaction Drawing and months or fine which of debt due to a c~ Disbursing Officer may extends to one operative society from of the member. thousand rupees or bolh. a member. Wilful neglect or refusal Any person so Imprisonment f~ term to comply with any law- neglecting or which may extend to six fu I artier or direction refusing. months or fine which may giving by the Registrar extend to five hundred or the Director of~ rupees or bolh. operative Audit Wilful neglect or refusal Any person so Imprisonment for a term to any act. make any neglecting or which may extend to return or furnish any refusing. three months or fine false informalion required which may extend 10 five under this Acl or any hundred rupees or bolh, false declarauon under and in the case of a section 87 continuing offence a further fine fifty rupees for each day for so long as it continue aft.er conviction. Non-<:0111pliancc of order Any person so !fflprisonment for a term of the Regisuv under neglecting or which may extend to section 100. refusing. three months or fine which may extend to five hundred rupees or bod!, and in the case of a continuing offence a further fine fifty rupees . for each day for so long as it continue after conviction. 85 86 SI. I. 2. 3. 4. 5. THE KOLKATA GAZETTE. EXTRAORDINARY. MAY 25. 2010 The West Bengal Co-operative Societies Act. 2006. (Fifth Schedule. Suth Schedule.) AFTH SCHEDULE Co-operative societies [See section 94.) Type of Co-operative society All Apex Co-operative society. All Central Co-operatives including District Co-operative union. All Agriculture & Rural Development Banlcs. A ll Primary Co-operative Banks. Any Co-operative, Annual Turnover of which is Rupees one crore or above. SIXTH SCHEDULE Power exercisable by the Director of Co-operative Audit [See section 13(2).J [PART III Serial No. Section Power (I) (2) (3) I. 2. 3. 4. 5. 6. Suh-section (I) of section 97. Suh-section (2) of section 97. Suh-section (I) of section 97. Sub-section ( I) of section 98. Sub-section (2) of secuon 98 Sub-secuon (3) of section Q8. To appoint Audit officer. To draw audit programme and 10 appoint new audit officer on the failure of the audit officer to take up audit To receive annual return from co operative societies. To accept repon of audit officer. . To accept report of rectification ol defects in the audu report from a Co-operauve society To direct rccuficauon of defect~ m the aud11 repon and 10 receive repon of compliance from Co-operauvc: society. By order of the GO\emnr, MITA BASU ROY, Pr Sen-. u, the 1;0,·r oJ lit'fl Bm • I LAu Dept1nm,,:, Put>li•hed lw IM C"on1rolkr c-f l'nnung ond St.1llonc.-ry. Wc,,1 Bengal and pnntcd 01 So:-o""J;;Pn,-.- (GMc.-nmcnt i\[ w,,: Bengal l'n1orpmc1. Kulka1a 700 t'5o E-- -~,---. il(nlkata GOVERNMENT OF WEST BENGAL LAW DEPARTMENT Legislative No. 134-L.-30th January, 2012.-The following Act of the West Bengal Legislature, having been assented to by the Governor, is hereby published for general information:- " West Bengal Act XIV of 2011 THE WEST BENGAL CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2011. [Passed by the West Bengal Legislature.] [Assent of the Governor was first published in the Kolkata Gazette, Extraordinary, of the 30th January, 2012.] WHEREASit is expedient to amend the West Bengal Co-operative Societies Act, 2006, for the purposes and in the manner hereinafter appearing; It is hereby enacted in the Sixty-second Year of the Republic of India, by the Legislature of West Bengal, as follows: West Ben. Act XL of 2006. Short title and commencement. 1. (1) This Act may be called the West Bengal Co-operative Societies (Amendment) Act, 2011. (2) It shall come inti) force on such date as the State Government may, by notification in the Official Gazette, appoint. E---4 Registered No. WBISC-247 No. WB(Part-IIl)/2012/SAR-5 MAGHA 10] tf(nlkata fl~lf&lq\i(t@" Extraordinary Published by Authority MONDAY, JANUARY 30, 2012 PART III-Act of the West Bengal Legislature. GOVERNMENT OF WEST BENGAL LAWDEPARTMENT Legislative NOTIFICATION [SAKA 1933 No. 134-L.-30th January, 2012.-The following Act of the West Bengal Legislature, having been assented to by the Governor, is hereby published for general information:- ' Short title and commencement. West Bengal Act XIV of 2011 THE WEST BENGAL CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2011. [Passed by the West Bengal Legislature.] [Assent of the Governor was first published in the Kolkata Gazette, Extraordinary, of the 30th January, 2012.] An Act to amend the West Bengal Co-operative Societies Act, 2006. WHEREAS it is expedient to amend the West Bengal Co-operative Societies Act, 2006, for the purposes and in the manner hereinafter appearing; It is hereby enacted in the Sixty-second Year of the Republic of India, by the Legislature of West Bengal, as follows: 1. (1) This Act may be called the West Bengal Co-operative Societies (Amendment) Act, 2011. (2) It shall come intl) force on such date as the State Government may, by notification in the Official Gazette, appoint. West Ben. Act XL of 2006. Amendment of section 4 of West Ben. Act XL of 2006. Amendment of section 11. Amendment of section 16. Amendment of section 19. Amendment of section 25. Substitution of new section for section 26. Amendment of section 29. The West Bengal Co-operative Societies (Amendment) Act, 2011. 2. In section 4 of the West Bengal Co-operative Societies Act, 2006 (hereinafter referred to as the principal Act), in clause (55), in the Explanation, for sub-clause (b), the following sub-clause shall be substituted: "(b) 'medium-term' shall mean a term exceeding one year but not exceeding five years; and". 3. In section 11 of the principal Act, in sub-section (1), (a) in the first proviso, the words "such opportunity or hearing has to be notified inviting objection, if any from interested persons" shall be omitted; (b) for the second proviso, the following proviso shall be substituted: "Provided further that exemption under this section cannot be accorded in case of extension of the tenure of the Board of Directors of any Co-operative Society or class of Co-operative Societies, as the case may be, or for appointment of employees or officers in any Co-operative Society.". 4. To sub-section (5) of section 16 of the principal Act, after the third proviso, the following proviso shall be added: "Provided also that the Registrar shall, in case of a Co-operative Credit Structure Entity, dispose of the application within thirty days from the date of receipt of the application." . 5. In section 19 of the principal Act, for sub-section (1), the following sub section shall be substituted: "(1) A Co-operative Society may by resolution in general meeting adopted by two-thirds of th~ members or delegates or representatives present but not less than one-third of the total number of members or delegates or representatives as on the register of members, or delegates or representatives on the date of issue of notice of such general meeting amend its by Laws.". 6. In section 25 of the principal Act, in sub-section (2), for the words "shall replace before the general meeting", the words "shall be placed before the general meeting" shall be substituted. 7. For section 26 of the principal Act, the following section shall be substituted: "Partnership of 26. Any two or more Co-operative Societies may, by Co-operative Societies. resolution passed at general meetings by a majority of members present and voting in each of such Co-operative Societies, enter into a contract of partnership for carrying on any specific busines spermissible under the bye-laws of such Co-operative Societies on such terms and conditions as may be mutually agreed upon. Such partnership of Co-operative Societies shall be governed by the provisions of the Indian Partnership Act, 1932.". 8. In section 29 of the principal Act, (a) for sub-section (6), the following sub-section shall be substituted: "(6) On the failure of the board to call the annual general meeting within the period as mentioned in sub-section (1), the Registrar shall call or authorize any of his officers to call a annual general meeting to transact any business specified in sub-section (5) of this section."; 2 Amendment of section 4 of West Ben. Act XL of 2006. Amendment of section 11. Amendment of section 16. Amendment of section 19. Amendment of section 25. Substitution of new section for section 26. Amendment of section 29. THE KOLKATA GAZETTE, EXTRAORDINARY, JANUARY 30, 2012 The West Bengal Co-operative Societies (Amendment) Act, 2011. (Sections 2-8.) 2. In section 4 of the West Bengal Co-operative Societies Act, 2006 (hereinafter referred to as the principal Act), in clause (55), in the Explanation, for sub-clause (b), the following sub-clause shall be substituted: "(b) 'medium-term' shall mean a term exceeding one year but not exceeding five years; and". 3. In section 11 of the principal Act, in sub-section (1), (a) in the first proviso, the words "such opportunity or hearing has to be notified inviting objection, if any from interested persons" shall be omitted; (b) for the second proviso, the following proviso shall be substituted: "Provided further that exemption under this section cannot be accorded in case of extension of the tenure of the Board of Directors of any Co-operative Society or class of Co-operative Societies, as the case may be, or for appointment of employees or officers in any Co-operative Society.". 4. To sub-section (5) of section 16 of the principal Act, after the third proviso, the following proviso shall be added: "Provided also that the Registrar shall, in case of a Co-operative Credit Structure Entity, dispose of the application within thirty days from the date of receipt of the application.". 5. In section 19 of the principal Act, for sub-section (1), the following sub section shall be substituted: "{!) A Co-operative Society may by resolution in general meeting adopted by two-thirds of th~ members or delegates or representatives present but not less than one-third of the total number of members or delegates or representatives as on the register of members, or delegates or representatives on the date of issue of notice of such general meeting amend its by Laws.". 6. In section 25 of the principal Act, in sub-section (2), for the words "shall replace before the general meeting", the words "shall be placed before the general meeting" shall be substituted. 7. For section 26 of the principal Act, the following section shall be substituted: "Partnership of Co-operative Societies. 26. Any two or more Co-operative Societies may, by resolution passed at general meetings by a majority of members present and voting in each of such Co-operative Societies, enter into a contract of partnership for carrying on any specific busines s permissible under the bye-laws of such Co-operative Societies on such terms and conditions as may be mutually agreed upon. Such partnership of Co-operative Societies shall be governed by the provisions of the Indian Partnership Act, 1932.". 8. In section 29 of the principal Act, (a) for sub-section (6), the following sub-section shall be substituted: "( 6) On the failure of the board to call the annual general meeting within the period as mentioned in sub-section (1), the Registrar shall call or authorize any of his officers to call a annual general meeting to transact any business specified in sub-section (5) of this section."; [PART ill Act 9 of 1932. Amendment of section 31. Amendment of section 32. Amendment of section 35. Amendment of section 36. The West Bengal Co-operative Societies (Amendment) Act, 2011. (b) for sub-section (7), the following sub-section shall be substituted: "(7) If the election as referred to in the second proviso to clause (b) of sub-section (I) of section 35 or in clause (cc) of section 36 cannot be held owing to an order of any court or for any other reasons or if the directors of the board elected in a general meeting cannot function owing to an order of any court or for any other reason, or if the elected directors of the board resign simultaneously, the Registrar may constitute a board of directors from amongst the members or delegates or representatives of the Co-operative Society in conformity with section 32 and the constituted board shall elect its office-bearers from amongst themselves: Provided that the board, so constituted, shall function till the directors of the board elected under this section assume charge. (c) in sub-section (8), for the words, figure and brackets "sub-sections (1) and", the word "sub-section" shall be substituted. 9. In section 31 of the principal Act, in sub-section (1), after clause (b), the following clause (c) shall be inserted: "(c) if Registrar decides to call a special general meeting to transact any specified business.". 10. In section 32 of the principal Act, (a) in sub-section (1), for the clause (c), the following clause shall be substituted: "(c) The chief executive of a co-operative society shall be an ex-officio director of the society and where there is no chief executive, the manager or the highest designated employee of the Co-operative Society, by whatever name called shall be an ex-officio director."; (b) in sub-section (7) for the words "for being elected on the board" the words "for being elected and continued on the board" shall be substituted. 11. In section 35 of the principal Act, (a) in sub-section (1), in clause (b), for the words "the State Government shall appoint one of its officers to manage the affairs of the co-operative society who shall be called the administrator", the words "the State Government shall appoint one or more of its officers to manage the affairs of one or more co-operative societies who shall be called the administrator or admini strators, as the case may be," shall be substituted; (b) after sub-section (1), lle following sub-section shall be inserted: "(1A) if an elected Board cannot be reconstituted within the period of one year from the date of dissolution of the board, the administrator shall be removed from his office by the State Government ane thereupon the provision contained in sub section (7) of sf;ction 29 shall be followed.". 12. In section 36 of the principal Act, (a) in clause (a), (i) for the words "the board of directors, if any, of the Co-operative Societies mentioned in the Fifth Schedule", the words "the board of directors of any of the Co-operative Societies" shall be substituted; PART III] Amendment of section 31. Amendment of section 32. Amendment of section 35. Amendment of section 36. I E--4 THE KOLKATA GAZETTE, EXTRAORDINARY, JANUARY 30, 2012 The West Bengal Co-operative Societies (Amendment) Act, 2011. (Sections 9-12.) (b) for sub-section (7), the following sub-section shall be substituted: "(7) If the election as referred to in the second proviso to clause (b) of sub-section ( 1) of section 35 or in clause (cc) of section 36 cannot be held owing to an order of any court or for any other reasons or if the directors of the board elected in a general meeting cannot function owing to an order of any court or for any other reason, or if the elected directors of the board resign simultaneously, the Registrar may constitute a board of directors from amongst the members or delegates or representatives of the Co-operative Society in conformity with section 32 and the constituted board shall elect its office-bearers from amongst themselves: Provided that the board, so constituted, shall function till the directors of the board elected under this section assume charge. (c) in sub-section (8), for the words, figure and brackets "sub-sections (1) and", the word "sub-section" shall be substituted. 9. In section 31 of the principal Act, in sub-section (1), after clause (b), the following clause (c) shall be inserted: "(c) if Registrar decides to call a special general meeting to transact any specified business.". 10. In section 32 of the principal Act, ( a) in sub-section (1), for the clause (c), the following clause shall be substituted: "( c) The chief executive of a co-operative society shall be an ex-officio director of the society and where there is no chief executive, the manager or the highest designated employee of the Co-operative Society, by whatever name called shall be an ex-officio director."; (b) in sub-section (7) for the words "for being elected on the board" the words "for being elected and continued on the board" shall be substituted. 11. In section 35 of the principal Act, ( a) in sub-section (1), in clause (b), for the words "the State Government shall appoint one of its officers to manage the affairs of the co-operative society who shall be called the administrator", the words "the State Government shall appoint one or more of its officers to manage the affairs of one or mori~ co-operative societies who shall be called the administrator or administrators, as the case may be," shall be substituted; (b) after sub-section (1), t1.e following sub-section shall be inserted: "(lA) if an elected Board cannot be reconstituted within the period of one year from the date of dissolution of the board, the administrator shall be removed from his office by the State Government antl thereupon the provision contained in sub section (7) of st:ction 29 shall be followed.". 12. In section 36 of the principal Act, (a) in clause (a), (i) for the words "the board of directors, if any, of the Co-operative Societies mentioned in the Fifth Schedule", the words "the board of directors of any of the Co-operative Societies" shall be substituted; 3 The West Bengal Co-operative Societies (Amendment) Act, 2011. (ii) after the word and figure "section 29", the following words shall be inserted: "or within a period of thirty six months from the date of their election under sub-section (8) of section 27 of the West Bengal Co-operative Societies Act, 1983"; (b) for clause (c), the following clause shall be substituted: "(c) upon dissolution of the board under clause (a), the State Government on report from the Registrar by notification, appoint a special officer from amongst its officers for managing the affairs of one or more co-operative societies for a period not exceeding six months and may also, by notification extend such period so, however, that the total period shall not exceed one year in any case,"; (c) after clause (c), the following clauses shall be inserted: "(cc) the Registrar shall reconstitute an elected board of directors of the Co-operative Society in a general meeting to be convened for the purpose in accordance with the Act, rules and by-laws within the tenure of the special officer as specified in the notification so that special officer may make over his charge to the newly elected board before expiry of his tenure; (ccc) if an elected Board of directors vmnot be reconstituted within one year from the date of dissolution of the Board, the special officer shall be removed from office by the State Government and thereupon the provision contained in sub-section (7) of section 29 shall be followed."; (d) the proviso to clause (d) shall be omitted. Amendment of section 37. 13. In section 37 of the principal Act, sub-section (1) shall be inserted and after sub-section (1) so inserted, the following sub-sections shall be inserted: "(2) The State Government may, by order for reasons to be reeorded in writing, rescind or suspend for a period specified in the order, any proceeding or resolution of any annual general meeting of a co-operative society or of any other meeting of the board thereof which it considers to be not in conformity with the provisions of this Act or the rules framed under this Act or with any order validly issued by the State Government or the Registrar, and may do all things necessary to secure such conformity, or may rescind any proceeding or resolution which it considers likely to affect adversely the interest of any co-operative society or members thereof or of the co-operative movement in general. (3) The Registrar may, after giving the co-operative society an opportunity of being heard, by order for reasons to be recorded in writing, suspend the execution of any resolution or order of the board or prohibit the doing of any act if, in his opinon, such resolution, order or the doing of any act, as the case may be, is in excess of the powers conferred by this Act, or the execution or order or the doing of such Act is likely to prejudice the material interest of the co-operative society or the members thereof or of the co-operative movement in general. (4) The Registrar shall while making an order under sub-section (3) simultaneously send a copy of his order to the State Government. (5) On receipt of a copy of the order under sub-section (4), the State Govenment shall by order rescind, modify or confirm the order of the Registrar under sub-section (3) and shall send a copy of such order to the co-operative society which shall be bound by such order.". West Ben. Act XLV of 1983. 4 Amendment of section 37. THE KOL.KATA GAZETTE, EXTRAORDINARY, JANUARY 30, 2012 The West Bengal Co-operative Societies (Amendment) Act, 2011. (Section 13.) (ii) after the word and figure "section 29", the following words shall be inserted: "or within a period of thirty six months from the date of their election under sub-section (8) of section 27 of the West Bengal Co-operative Societies Act, 1983"; (b) for clause (c), the following clause shall be substituted: "(c) upon dissolution of the board under clause (a), the State Government on report from the Registrar by notification, appoint a special officer from amongst its officers for managing the affairs of one or more co-operative societies for a period not exceeding six months and may also, by notification extend such period so, however, that the total period shall not exceed one year in any case,"; (c) after clause (c), the following clauses shall be inserted: "(cc) the Registrar shall reconstitute an elected board of directors of the Co-operative Society in a general meeting to be convened for the purpose in accordance with the Act, rules and by-laws within the tenure of the special officer as specified in the notification so that special officer may make over his charge to the newly elected board before expiry of his tenure; (ccc) if an elected Board of directors vmnot be reconstituted within one year from the date of dissolution of the Board, the special officer shall be removed from office by the State Government and thereupon the provision contained in sub-section (7) of section 29 shall be followed."; (d) the proviso to clause (d) shall be omitted. 13. In section 37 of the principal Act, sub-section (1) shall be inserted and after sub-section (1) so inserted, the following sub-sections shall be inserted: "(2) The State Government may, by order for reasons to be reeorded in writing, rescind or suspend for a period specified in the order, any proceeding or resolution of any annual general meeting of a co-operative society or of any other meeting of the board thereof which it considers to be not in conformity with the provisions of this Act or the rules framed under this Act or with any order validly issued by the State Government or the Registrar, and may do all things necessary to secure such conformity, or may rescind any proceeding or resolution which it considers likely to affect adversely the interest of any co-operative society or members thereof or of the co-operative movement in general. (3) The Registrar may, after giving the co-operative society an opportunity of being heard, by order for reasons to be recorded in writing, suspend the execution of any resolution or order of the board or prohibit the doing of any act if, in his opinon, such resolution, order or the doing of any act, as the case may be, is in excess of the powers conferred by this Act, or the execution or order or the doing of such Act is likely to prejudice the material interest of the co-operative society or the members thereof or of the co-operative movement in general. (4) The Registrar shall while making an order under sub-section (3) simultaneously send a copy of his order to the State Government. (5) On receipt of a copy of the order under sub-section (4), the State Govenment shall by order rescind, modify or confirm the order of the Registrar under sub-section (3) and shall send a copy of such order to the co-operative society which shall be bound by such order.". [PART III West Ben. Act XLV of 1983. L Amendment of section 89. Amendment of section 94. Amendment of section 96. Amendment of section 154. Substitution of new section for section 155. The West Bengal Co-operative Societies (Amendment) Act, 2011. 15. In section 94 of the principal Act, after sub-section (3), the following sub section shall be inserted: "(3A) the State Government may remove the Chairman from his office on such grounds and in such manner as may be prescribed.". 16. In section 96 of the principal Act, (a) in sub-section (3), the words "and has served at least for two years either in Co-operative Department or in co-operative Directorate" shall be omitted; (b) after sub-section (6), the following sub-section shall be inserted: "(6A) The State Government may remove the Co-operative Election Commissioner from his office on such grounds and in such manner as may be prescribed.". 17. In section 154 of the principal Act, for the marginal note, the following marginal note shall be substituted: "Overriding effect of the Act.". "Co-operati ve bank to get insured. 155. (1) Every co-operative bank accepting deposits from non members shall get itself insured under the Deposit Insurance and Credit Guarantee Corporation Act, 1961. (2) Notwithstanding anything contained elsewhere in this Act, in respect of an insured co-operative bank (mentioned in this sub-section as the 'said bank'), (i) an order for the winding up, or an order sanctioniQg a scheme of compromise or arrangement or of amalgamation or reconstruction, of the said bank may be made only with the previous sanction in writing of the Reserve Bank of India; (ii) an order for the winding up of the said bank shall be made, if so required by the Reserve Bank of India in the circumstances referred to in section l3D of the Deposit Insurance and CreLlt Guarantee Corporation Act, 1961; (iii) if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the said bank being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of the said bank, an order shall be made for the supersession of the Board of Directors of the said bank and the appointment of an administrator for such period or periods as may from time to time be specified by the Reserve Bank of India; (iv) an order for the winding up of the said bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or an order for the supersession of the Board of Directors of the said bank and the appointment of an administrator thereof made with the previous sanction in writing or on the requisition of the Reserve Bank of India shall not be liable to be called in question in any manner; and L PART III] Amendment of section 89. Amendment of section 94. Amendment of section 96. Amendment of section 154. Substitution of new section for section 155. THE KOLKATA GAZETTE, EXTRAORDINARY, JANUARY 30, 2012 The West Bengal Co-operative Societies (Amendment) Act, 2011. (Sections 14-18.) 14. In section 89 of the principal Act, sub-section (3) shall be omitted. 15. In section 94 of the principal Act, after sub-section (3), the following sub-section shall be inserted: "(3A) the State Government may remove the Chairman from his office on such grounds and in such manner as may be prescribed.". 16. In section 96 of the principal Act, (a) in sub-section (3), the words "and has served at least for two years either in Co-operative Department or in co-operative Directorate" shall be omitted; (b) after sub-section ( 6), the following sub-section shall be inserted: "( 6A) The State Government may remove the Co-operative Election Commissioner from his office on such grounds and in such manner as may be prescribed.". 17. In section 154 of the principal Act, for the marginal note, the following marginal note shall be substituted: "Overriding effect of the Act.". 18. For section 155 of the principal Act, the following section shall be substituted:-"Co-operative bank to get insured. 155. (l) Every co-operative bank accepting deposits from non-members shall get itself insured under the Deposit Insurance and Credit Guarantee Corporation Act, 1961. (2) Notwithstanding anything contained elsewhere in this Act, in respect of an insured co-operative bank (mentioned in this sub-section as the 'said bank'), (i) an order for the winding up, or an order sanctioniqg a scheme of compromise or arrangement or of amalgamation or reconstruction, of the said bank may be made only with the previous sanction in writing of the Reserve Bank of India; (ii) an order for the winding up of the said bank shall be made, if so required by the Reserve Bank of India in the circumstances referred to in section 13D of the Deposit Insurance and Cre1.:it Guarantee Corporation Act, 1961; (iii) if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the said bank being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of the said bank, an order shall be made for the supersession of the Board of Directors of the said bank and the appointment of an administrator for such period or periods as may from time to time be specified by the Reserve Bank of India; (iv) an order for the winding up of the said bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or an order for the supersession of the Board of Directors of the said bank and the appointment of an administrator thereof made with the previous sanction in writing or on the requisition of the Reserve Bank of India shall not be liable to be called in question in any manner; and 5 47 of 1961. k==:: ====~L The West Bengal Co-operative Societies (Amendment) Act, 2011. (v) the liquidator or the insured co-operative bank or the transferee bank as the case may be shall be under an obligation to repay the Deposit Insurance Corporation established under section 3 of the Deposit Insurance 47 of 1961. and Credit Guarantee Corporation Act, 1961, in circumstances, to the extent and in the manner referred to in section 21 of the said Act. Explanation.-For the purpose of this section, (i) 'co-operative bank' has the same meaning as in the Deposit Insurance and Credit Guarantee Corporation Act, 1961, (ii) 'Insured Co-operative Bank' shall mean a co-operative bank which is an insured bank within the meaning of clause (i) of section 2 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, (Hi) 'transferee bank' in relation to an insured co-operative bank means co operative bank (a) with which such insured co-operative bank is amalgamated, or (b) to which the assets and liabilities of such insured co-operative bank are transferred, or Insertion of new section 155A after section 155. "Fees for supply of Certified copies etc. 155A. Certified copies of certain documents, as may be prescribed, be supplied on payment of prescribed fees: Provided that the fees for filing disputes before the Registrar under s~ction 102 of this Act shall be such as may be prescribed.". Amendment of section 157. 20. In section 157 of thP-principal Act, in sub-section (4), the words "for not less than fourteen days" shall be omitted. B. K. SRIVASTAVA, Secy.-in-charge to the Govt. of West Bengal, Law Department. Published by the Controller of frinting and Stationery, West Bengal and printed at Saraswaty Press Ltd. (Government of West Bengal Enterprise), Kolkata 700 056. 6 Insertion of new section 155A after section 155. Amendment of section 157. bs THE KOLKATA GAZETTE, EXTRAORDINARY, JANUARY 30, 2012 The West Bengal Co-operative Societies (Amendment) Act, 2011. (Sections 19, 20.) (v) the liquidator or the insured co-operative bank or the transferee bank as the case may be shall be under an obligation to repay the Deposit [PART III Insurance Corporation established under section 3 of the Deposit Insurance 4 7 of 1961. and Credit Guarantee Corporation Act, 1961, in circumstances, to the extent and in the manner referred to in section 21 of the said Act. Explanation.-For the purpose of this section, (i) 'co-operative bank' has the same meaning as in the Deposit Insurance and Credit Guarantee Corporation Act, 1961, (ii) 'Insured Co-operative Bank' shall mean a co-operative bank which is an insured bank within the meaning of clause (i) of section 2 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, (iii) 'transferee bank' in relation to an insured co-operative bank means co operative bank (a) with which such insured co-operative bank is amalgamated, or (b) to which the assets and liabilities of such insured co-operative bank are transferred, or ( c) into which such insured co-operative bank is divided or converted.". 19. After section 155 of the principal Act, the following section shall be inserted: "Fees for supply of Certified copies etc. 155A. · Certified copies of certain documents, as may be prescribed, be supplied on payment of prescribed fees: Provided that the fees for filing disputes before the Registrar under section 102 of this Act shall be such as may be prescribed.". 20. In section 157 of the principal Act, in sub-section (4), the words "for not less than fourteen days" shail be omitted. By order of the Governor, B. K. SRIVASTAVA, Secy.-in-charge to the Govt. of West Bengal, Law Department. Published by the Controller of feinting and Stationery, West Bengal and printed at Saraswaty Press Ltd. (Government of West Bengal Enterprise), Kolkata 700 056. /' ( Registered No. WB/SC-247 No. WB(Part-III)/2013/SAR-14 VAISAKHA 6] tf(ulkata FRIDAY, APRIL 26, 2013 PART III-Acts of the West Bengal Legislature. GOVERNMENT OF WEST BENGAL LAW DEPARTMENT Legislative NOTIFICATION [SAKA 1935 No. 724-L.-26th April, 2013.-The following Act of the West Bengal Legislature, having been assented by the Governor, is hereby published for general information: Short title and commcocemenL West Bengal Act VIl of 2013 THE WEST BENGAL CO-OPERATIVE SOCIBTIES (SECOND AMENDMENT) ACT, 2013. [Passed by the West Bengal Legislature.] [Assent of the Governor was first published in the Kolkata Gazette, Extraordinary, of the 26th April, 2013.] An Act to arr.end tl1e West Bengal Co-operative Societies Act, 2006. WHEREAS it is expedient to amend the West Bengal Co-operative Societies Act, 2005, for the purposes and in the manner hereinafter appearing; It is hereby enacted in I.he Sixty-fourth Year of the Republic of India, by the Legislature of West Bengal, as follows: !. (1) This Act mz.y be calJcd the West Bengal Co-operative Societies (Second Amendment) Act, 2013. (2) It shall be deemed lo have come into force with effect from the 19th day of February, 2013. West Ben. Act XL of 2006. l 2 Amendment of section 4 of West Bea. Ad XL of 2006. Amendment of section 16. Amendment of section 19. Amendment of section 29. TIIE KOLKATA GAZETTE, EXTRAORDINARY, APRIL 26, 2013 The West Bengal Co-operative Societies (Second Amendment) Act, 2013. (Sections 2-5.) 2. In section 4 of the West Bengal Co-operative Societies Act, 2006 (hereinafter referred to as the principal Act), ( l) after clause (6), the following clause (6A) shall be inserted: '(6A) "authorized person" means a person referred to as such in the · Fourth Schedule;'; (2) for clause (8), the following clause shall be substituted: '(8) "board" means the board of directors or the governing body of a Co-operative Society, by whatever name called, to which the direction and control of the management of the affairs of a society is entrusted to;'; (3) in clause (13), after the words "a Central Co-operative Bank Ltd.", the words "and also an Agricultural Co-operative Marketing Society Ltd. by whatever name called, whose primary object is to supply agricultural or non-agricultural products or inputs, or to facilitate procurement and marketing of agricultural products to augment the income of farmers, and to render such other services to its members and other customers as may be required in the interest of development" shall be inserted; (4) for clause (15), the following clause shall be substituted: '(15) "Co-operative Society" means a society registered or deemed to have been registered under this Act;'; (5) for clause (23), the following clause shall be substituted: (23) "Co-operative year" means the financial year commencing on the 1st day of April;'; (6) for clause (46), the following clause shall be substituted: '(46) "office bearer" means a President, Vice-President, Chairperson,. Vice-Chairperson, Secretary or Treasurer of a Co-operative Society and includes any other person to be elected by the board of any Co-operative Society;'; (7) after clause (64), the following clause shall be inserted: '(64A) "special officer" means an officer appointed as a special officer under section 36;'. 3. In section 16 of the principal Act, in sub-section (1), for the words "in Form as prescribed", the words "in Form along with fees as may be prescribed" shall be substituted. ~ 4. In section 19 of the principal Act, in sub-section (2), ( l) for the words "An application in prescribed form", the words "An application in such form along with such fees as may be prescribed" shall be substituted; (2) for the words "thirty days", the words "sixty days" shall be substituted. 5. In section 29 of the principal Act, ( 1) for sub-section (1), the following sub-section shall be substituted: "(!) Every Co-operative Society shall hold such number of general meetings of its members or delegates or representatives in a Co-operative year as may be prescribed to transact such business as may be considered (PART fil 0 ( C) r. \ j PART Ill] Amendment of section 32. Amendment of Section 35. THE KOLKATA GAZETTE, EXTRAORDINARY, APRIL 26, 2013 The West Bengal Co-operative Societies (Second Amendment) Act, 2013. (Sections 6, 7.) necessary by the board and the annual general meeting of its members or delegates or representatives within a period of six months of close of the Co-operative year to transact such business as provided in this Act."; (2) in. sub-section (7), for the words, letters, figures and brackets "second proviso to clause (b) of sub-section (1) of section 35 or in clause (cc) of section 36", the words, letters, figures and brackets "third proviso to sub-section (lA) of section 35 or in sub-section (2) of section 36" shall be substituted. 6. In section 32 of the principal Act, (1) in sub-section (1), (a) in clause (a), (i) in the first proviso, for the word "fifteen", the words "twenty one" shall be substituted; (ii) after the second proviso, the following proviso shall be inserted:- "provided also that one seat shall be reserved for the Scheduled Castes or the Scheduled Tribes and two seats for women on board of every Co-operative Society consisting of individuals as members and having members from such class or category of persons."; (b) for clause (g), the following clause shall be substituted: "(g) persons having experience in the field of banking, management, finance or specialization in any other field relating to the objects and activities undertaken by any Co-operative Society, may be co-opted by the board as the members of the board. of that Co-operative Society: Provided that the number of such co-opted members shall not exceed two in addition to twenty-one directors specified in the first proviso to clause (a): Provided further that such co-opted members shall not have the right to vote in any election of the Co-operative Society in their capacity as such member or to be eligible to be elected as office bearers of the board."; (2) after sub-section (1), the following sub-section shall be inserted: "(lA) The functional directors of a Co-operative Society shall also be the members of the board and such members shall be excluded for the purpose of counting the total number of directors specified in the first proviso to clause (a) sub-section (1)."; (3) in sub-section (4),in clause (c), for the word, letters and brackets "(e) and (g)", the word, letter and brackets "and (e)" shall be substituted; (4) in sub-section (5), in clause (a), to the third proviso, after the word "dissolved", the words "or superseded" shall be inserted. 7. In section 35 of the principal Act, (1) for the marginal heading, the following marginal heading shall be substituted: "Supersession and suspension of board and interim management." 3 11 4 Substitution of section 36. THE KOLKATA GAZETfE, EXTRAORDINARY, APRIL 26, 2013 The West Bengal Co-operative Societies (Second Amendment) Act, 2013. (Section 8.) (2) for sub-section (1), the following sub-section shall be substituted: '(l) Notwithstanding anything contained in this Act or in any other law for the time being in force, no board shall be superseded or kept under suspension for a period exceeding six months: Provided that in case of a -Co-operative Society carrying on the business of banking, the provisions of this section shall have the effect as if for the words "six months", the words "one year" bad been substituted.'; (3) for sub-section (lA), the following sub-section shall be substituted: "(lA) If the State Government is of the opinion that (a) any board (i) bas made persistent default; or (ii) is negligent in the performance of its duties; or (iii) has committed any act prejudicial to the interests of the Co-operative Society or its members; or (b) the constitution or function of any Co-operative Society bas come to a stalemate, or (c) the Co-operative Election Commission has failed to conduct election in accordance with the provisions of this Act, the State Government may, by notification stating reasons therefor, supersede the board and the directors of such board shall forthwith vacate their offices and by the said notification the State Government shall appoint one of its officers to manage the affairs of the Co-operative Society who shall be called the administrator, for the period specified in sub-section (1): Provided that the board of any such Co- operative Society shall not be superseded or kept under suspension where there is no Government shareholding or loan or financial assistance or any guarantee by the Government (PART Ill o, Provided further that in case of a Co-operative Society carrying on the business of banking, the provisions of the Banking Regulation Act, 10 of 1949. ( 1949 shall apply: Provided also that the administrator appointed to manage the affairs of such Co-operative Society shall arrange for conduct of election in a general meeting to be convened for the purpose in accordance with the Act, rules and by-laws within the period specified in sub-section (1) and handover the management to the newly elected board: Provided also that if an elected board can not be reconstituted within the period specified in sub-section (1), the administrator shall be removed from his office by the State Government and thereupon the provision contained in sub-section (7) of section 29, shall be followed.". (4) after sub-section (2), the following sub-section shall be inserted: "(3) The conditions of service of an administrator shall be such as may be prescribed.". 8. For section 36 of the principal Act, the following section shall be substituted: 'Expiry of tenn 36. (l) Notwithstanding anything contained elsewhere in this ~~~tme3:"td of Act or in any other law for the time being in force, where election special officer. of the board of directors of any Co-operative Society has not been held within a period of thirty-six months from the date of their election where such election was held before the date of commencement of this Act ..,. ' . PART III] --- (J ! Amendment of section 41. Insertion of new section after section 41. THE KOLKATA GAZETTE, EXTRAORDINARY, APRIL 26, 2013 The West Bengal Co-operative Societies (Second Amendment) Act, 2013. (Sections 9, JO.) or within a period of sixty months from the date of their election under sub-section (1) of section 29 of this Act, the directors of the board of such Co-operative Society shall be deemed to have vacated their offices immediately on expiry of the period of thirty-six months from the date of their election where such election was held before the date of commencement of this Act or sixty months from the date of their election under sub-section (1) of section 29 of this Act, as the case may be, and the State Government shall, thereupon by notification, appoint special officer from amongst its officers for managing the affairs of the Co-operative Society for a period not exceeding six months from the date of such expiry of the period: Provided that in case of a Co-operative Society carrying on the business of banking, the provisions of this clause shall have the effect as if for the words "six months", the words "one year'' had been substituted; (2) The special officer appointed to manage the affairs of such Co-operative Society shall arrange for conduct of elections within the period specified in sub section (1) and handover the management to the newly elected board; (3) If an elected board of directors can not be reconstituted within the term of the special officer, he shall be removed from office by the State Government and thereupon the provision contained in sub-section (7) of section 29 shall be followed; (4) With effect from the date of expiry of the term of the board under clause (a} (a) all properties of the Co-operative Society shall vest in the Registrar and shall remain vested till a new board assumes office; and (b) subject to the control and direction of the Registrar and notwithstanding the preferring of an appeal under section 147, the special officer shall exercise all the powers and perform all the duties which may, under this Act or the rules or the by-laws, be exercised or performed by the board or any officer of the Co-operative Society.' . 9. In section 41 of the principal Act, after the word "books", the words "information and accounts of the Co-operative Society kept in regular transaction of its business with members" shall be inserted. 10. After section 41 of the principal Act, the following section shall be inserted wParticipation de. in managcme.nt o f Co-operative Society. 4 lA. (1) The members of a Co-operative Society shall participate in the management of the Co-operative Society by attending at least such number of meetings of the Co-operative Society as may be prescribed and utilize the minimum level of service. (2) The State Government shall provide for the co-operative education and training to the members of a Co-operative Society in such manner as may be prescribed.". 5 T L 6 Amendment of section % . Amendment of section 97. TIIE KOLKATA GAZETTE, EX'IRAORDINARY, APRIL 26, 2013 The West Bengal Co-operative Societies (Second Amendment) Act, 2013. . ~ (Sections 11, 12.) 11. In section 96 of the principal Act, ( I) in sub-section (1), for the words, "superintendence, direction and control of election of all registered co-operative societies", the words "superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to a registered Co-operative Society" shall be substituted; (2) in sub-section (5), for the word "appoint a Joint Registrar", the word "appoint an officer not below the rank of Joint Registrar" shall be substituted. 12. In section 97 of the principal Act, ( I) in sub-section (1), (a) for clause (a), the following clause shall be substituted: "(a) every Co-operative Society shall file return, within six months of the close of every co-operative year, to the Director of Co operative Audit and to the Registrar including the following matters, namely: (i) annual report of its activities; (ii). its audited statement of accounts; (iii) its cash account, profit and loss account, balance sheet and trading account where applicable in the Form as may be prescribed; (iv) plan for surplus disposal as approved by the general body of the Co-operative Society; (v) list of amendments to the bye-laws of the Co-operative Society, if any; (vi) declaration regarding date of holding of its general body meeting and conduct of elections when due; and (vii) any other information required by the Registrar in pursuance of any of the provisions of this Act,"; (b) for clause {b), the following clause shall be substi.tuted: "(b) Accounts of every Co-operative Society shall, within six months of the close of the co-operative year to which such accounts relate, be audited at the expense of the Co-operative Society by an auditor to be appointed by the general body of the Co-operative Society from the panel of auditors to be prepared with the persons appointed or authorised by the State Government or by the Director of Co-operative Audit with the approval of the State Government to act as an auditor by general or special order in writing in this behalf from among the officers under its administrative control, or the members of the Institute of Cost and Worlcs Accountant of India (PART ill constituted under the Cost and Works Accountants Act, 1959 and 23 of 1959. members of the Institute of Oiartered Accountants of India coostituled under the Chartered Accountants Act, 1949, having such qualification, 38 of 1949. such experience, and in such manner as may be prescribed. Such panel of auditors shall remain valid for five years."; C ( · I ) ) RT Ill] Amendment of section 103. Amendment of section 104. Amendment of Third Schedule. THE KOLKATA GAZETrE, EXTRAORDINARY, APRIL 26, 2013 The West Bengal Co-operative Societies (Second Amendment) Act, 2013. ,~=;-;;. (Sections 13-15.) (c) after clause (b), the following clauses shall be inserted: "( c) The auditor or auditing finn, as the case may be, referred to in clause (b) shall be appointed by the general body of the Or operative Society. (d) The audit report of the accounts of all apex and federal Co operative Societies shall be laid before the State Legislature in such manner as may be prescribed."; ( d) in sub-section (2), in clause (a), for the words "and issue appointment letters to the audit officer under intimation of such appointment to the Co-operative Societies", the words ''under intimation to the Or operative Societies and thereupon the Co-operative Societies shall issue appointment letter to the auditor" shall be substituted. 13. In section 103 of the principal Act, for sub-section (2), the following sub section shall be substituted: "(2) A dispute under section 102 relating to all apex Co-operative Societies and all federal Co-operative Societies shall be filed before the Registrar who shall after condoning the delay, if any found to be condonable, and admitting the dispute forthwith refer it for decision to the board of arbitrators as constituted under sub section (a) of this section. The chief arbitrator of the board may dispose it himself or transfer it to any arbitrator or arbitrators for disposal. Explanation.-For the purpose of this sub-section, the word "Registrar" means the Registrar of Co-operative Societies, West Bengal only.". 14. For section 104 of the principal Act, the following section shall be substituted: "Payment of fees to arl>ittators. 104. (1) The arbitrators, not being serving Government Officers, shall be eligible to get fees not exceeding rupees three hundred per sitting as the Registrar may sanction. (2) The Plaintiff shall deposit in such institution as may be cited by the Registrar the probable fees of the arbitrators on advance as may be assessed having regard to the nature of the dispute raised within fifteen days from the date of Registrar's decision to refer the dispute to an arbitrator or board of arbitrators. In default of payment within the time as specified the plaint shall stand rejected and the dispute lapse. (3) No fee shall be payable to an arbitrator till the dispute is finally settled and awarded.". 15. In the Third Schedule of the principal Act, for serial No. 4 and the entries relating thereto, the following serial No. and the entries relating thereto shall be substituted: "4. An order of dissolution or supersession of a board and appointing administrator under section 35 or appointment of special officei-on expiry of term of board under section 36. Any The Co director of operative the Board. Tribunal. Two months from the date on which the order is communicated or two months from the date of knowledge of such order.". 7 14 . - -, l. r 8 Amendment of Fourth Schedule. Amendment of Fifth Schedule. TIIE KOLKATA GAZETTE, EXTRAORDINARY, APRIL 26, 2013 The West Bengal Co-operative Societies (Second Amendment) Act, 2013. ------ . (Sections 16, 17.) 16. In the Fourth Schedule of the principal Act, (1) for serial No. 2 and the entries relating thereto, the following serial No. and the entries relating thereto shall be substituted: "2. A Co-operative Society or an Any person making officer or member thereof such return or wilfully makes a false return or . furnishing · such furnishes false information, or information or any any pason wilfully oot furnishes person so neglecting any information required from or refusing. him by a person authoriz.ed in this behalf under the provisiom of this Act. I mprisonment for a term which may extend to six months or fine which may extend to one thousand rupees or both."; (2) for serial No. 6 and the entries relating thereto, the following serial No. and the entries relating thereto shall be substituted: "6. Any person wilfully or without any-reasonable excuse disobeys any summons, requisition or lawful written order issued under the provisions of this Act Any person so disobeying. Imprisonment for a term which may extend to six months or fine which may extend to one thousand rupees or both..,; (3) after serial No. 8 and the entries relating thereto, the following serial Nos. and the entries relating thereto shall be inserted: "9. Any employer who without 1be employer. Imprisonment for a sufficient cause, fails to pay to term which may a Co-operative Society amount extend to six months deducted by him from its or fine which may' employee within a period of extend to one fourteen days from the date on thousand rupees or which such deduction is made. both. 10. Any officer or custodian who The officer or Imprisonment for a wilfully fails to handover custQdian. term which may custody of books, accounts, extend to six months documents , records, cash, or fine which ipay security and other property extend to one belonging to a Co-operative thousand rupees or Society of which he is an officer both. or custodian, to an authorized person. 11. Adopting corrupt practice Any person so Imprisonment for a before, during or after the adopting. term which may election of the members of the extend to six months board or office bearers of a Co- or · fine which may operative Society. extend to one thousand rupees or both.". 17. In the Fifth Schedule of the principal Act, serial No. 5 and the entry relating thereto shall be omitted. (PART ITl · : J PART Ill] Repeal and saving. THE KOLKATA GAZETTE, EXTRAORDINARY, APRIL 26, 2013 The West Bengal Co-operative Societies (Second Amendment) Act, 2013. (Section 18.) 18. (1) The West Bengal Co-operative Societies (Second Amendment) Ordinance, 2013, is hereby repealed. (2) Notwithstanding such repeal, anything done or any action taken under the West Bengal Co-operative Societies Act, 2006, as amended by the said Ordinance, shall be deemed to have been validly done or taken under the principal Act, as amended by this Act West Ben. Ord. ll of 2013. West Ben. Act XL of 2006. 9 By order of the Governor, MALAY MARUT BANERJEE, Secy. to the Govt. of West Bengal, Law Department. Published by the Controller of Printing and Stationery, West Bengal and printed at Saraswaty Press Ltd. (Govemmait of West Bengal Ent.erprise), Kolbta 700 056 ~