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1. Sections 111A and 111B inserted by Act 19 of 1976 w.e.f. 20.1.1976.
2. Omitted by Act 25 of 1998 w.e.f. 27.10.1998.
Section 111B - Preservation of records
The books and every records of a co-operative society shall be preserved for such period as the Registrar may from time to time by general or special order direct. A list of records destroyed shall be prepared and kept by the1[Chief Executive].]
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1. Substituted by Act 25 of 1998 w.e.f. 15.8.1998.
Section 112 - Prohibition against the use of the word "Co-operative"
No person other than a co-operative society shall trade or carry on business under any name or title of which the word "co-operative" or its equivalent in any Indian language is part:
Provided that nothing in this section shall apply to the use by any person or his successor in interest of any name or title under which he carried on business at the date on which the Co-operative Societies Act, 1912 (Central Act II of 1912), came into operation.
Section 113 - Address of a co-operative society
1[(1)] Every co-operative society shall have an2[office and address registered] in accordance with the rules to which all notices and communications may be sent and shall send to the Registrar notice of any change thereof within thirty days of the change.
3[(2) All the meetings including the general body meetings of a cooperative society shall be held in its registered office:
Provided that any such meeting may, with the previous permission of the Registrar, be held at any other place within the same city, town or village where the registered office is situated if there is no sufficient accommodation to hold such meeting in the registered office.]
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1. Re-numbered by Act 71 of 1976 w.e.f. 3.11.1976.
2. Substituted by Act 25 of 1998 w.e.f. 15.8.1998.
3. Inserted by Act 71 of 1976 w.e.f. 3.11.1976.
Section 114 - Copy of Act, rules and bye-laws to be open to inspection
Every co-operative society shall keep a copy of this Act, the rules and its bye-laws open to inspection free of charge at all reasonable times at the1[registered office] of the society.
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1. Substituted by Act 25 of 1998 w.e.f. 15.8.1998.
Section 115 - Omitted
1 [115. x x x]
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1. Omitted by Act 5 of 1984 w.e.f. 9.1.1984.
Section 116 - Orders to be pronounced
Every order, decision or award made or given by the Registrar, or any officer or other person or a Liquidator, under this Act, shall be pronounced on the day on which the case is finally heard or on some future day of which due notice shall be given to the parties.
Section 117 - Procedure for settlement of disputes and power of the Registrar or any other person to whom a dispute is referred for decision under section 70
1 [117. Procedure for settlement of disputes and power of the Registrar or any other person to whom a dispute is referred for decision under section 70
(1) The Registrar or any other person to whom a dispute is referred for decision under section 70, hearing a dispute under section 71 shall hear the dispute in the manner prescribed, and shall have power to summon and enforce attendance of witnesses including the parties interested or any of them and to compel them to give evidence on oath, affirmation or affidavit, and to compel the production of documents by the same means and as far as possible in the same manner, as is provided in the case of a civil court by the Code of Civil Procedure, 1908.
(2) Except with the permission of the Registrar or any other persondeciding a dispute, as the case may be, no party shall be represented at the hearing of a dispute by a legal practitioner.
(3) (a) If the Registrar or any other person to whom a dispute is referred is satisfied that a person, whether he be a member of the co-operative society or not, has acquired any interest in the property of a person who is a party to a dispute, he may order that the person who has acquired the interest in the property may join as a party to the dispute; and any decision that may be passed on the reference by the Registrar or his nominee or any other person shall be binding on the party so joined, in the same manner as if he were an original party to the dispute.
(b) Where a dispute has been instituted in the name of the wrongperson, or where all the defendants have not been included, the Registrar or any other person to whom a dispute is referred for decision under section 70 may, at any stage of the hearing of the dispute, if satisfied that the mistake was bona fide, order any other person to be substituted or added as a plaintiff or a defendant, upon such terms as he thinks just.
(c) The Registrar or any other person to whom a dispute is referredfor decision under section 70, may, at any stage of the proceedings, either upon or without the application of any party and on such terms as may appear to the Registrar, or any other person deciding a dispute, as the case may be to be just, order that the name of any party improperly joined whether as plaintiff or defendant, be struck out, and that the name of any person who ought to have been joined whether as plaintiff or defendant or whose presence before the Registrar, or any other person deciding a dispute under section 70, as the case may be, may be necessary in order to enable the Registrar or such person effectually and completely to adjudicate upon and settle all the questions involved in the dispute, be added.
(d) Any person who is a party to the dispute and entitled to morethan one relief in respect of the same cause of action may claim all or any of such reliefs; but if he omits to claim for all such reliefs, he shall not forward a claim for any relief so omitted, except with the leave of the Registrar or any other person to whom a dispute is referred for decision under section 70.]
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1. Substituted by Act 40 of 1964 w.e.f. 26.6.1965.
Section 118 - Bar of jurisdiction of courts
(1) Save as provided in this Act, no1[civil, labour or revenue court or Industrial Tribunal] shall have any jurisdiction in respect of,--
(a) the registration of a co-operative society or bye-laws or of an amendment of a bye-law;
(b) the removal of a committee2[or member thereof];
(c) any dispute required under section 70 to be referred to the Registrar or the recovery of moneys under section 100;
(d) any matter concerning the winding up and the dissolution of a co-operative society.
(2) While a co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with, or instituted against, the Liquidator as such or against the society or any member thereof, except by leave of the Registrar and subject to such terms as he may impose.
(3) Save as provided in this Act, no order, decision or award made under this Act shall be questioned in any court on any ground whatsoever.
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1. Substituted by Act 2 of 2000 w.e.f. 20.06.2000.
2. Inserted by Act 2 of 2000 w.e.f. 20.06.2000.
Section 119 - Application of Limitation Act
The provisions of sections 4, 5, 12 and 14 of the Indian Limitation Act, 1908, shall be applicable to the filing of any appeal or application for revision under this Act.
Section 120 - Power to exempt societies from conditions of registration
Notwithstanding anything contained in this Act, the State Government may, by special order published in the official Gazette in each case and subject to such conditions, if any, as it may impose, exempt any co-operative society from any of the requirements of this Act as to registration.
Section 121 - Omitted
1[121. x x x]
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1. Omitted by Act 25 of 1998 w.e.f. 15.8.1998.
Section 122 - Register of Members
Any register or list of members or shares kept by any co-operative society shall be prima facie evidence of any of the following particulars entered therein:--
(a) the date on which the name of any person was entered in suchregister or list as a member;
(b) the date on which any such person ceased to be a member.
Section 123 - Proof of entries in co-operative societies, books
(1) A copy of any entry in a book of a co-operative society regularly kept in the course of its business, shall, if certified in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of such entry and shall be admitted as evidence of the matters, transactions and accounts therein recorded in the same manner and to the same extent as the original entry itself is admissible.
(2) A co-operative society may grant copies of any document obtainedand kept by it in the course of its business, or of any entries in such document; and any copy so granted shall, when certified in such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the original document, or the entries therein, as the case may be.
(3)1[No office bearer] of a co-operative society and no office bearer in whose office the books of a co-operative society are deposited after liquidation shall, in any legal proceedings to which the society or the Liquidator is not a party, be compelled to produce any of the society's books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under order of the court, Tribunal or the Arbitrator made for special cause.
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1. Substituted by Act 25 of 1998 w.e.f. 15.8.1998.
Section 124 - Service of notice under the Act
Every notice or order issued or made under this Act may be served on any person, by properly addressing it to the last known place of residence or business of such person prepaying and posting by registered post a letter containing the notice or order and unless the contrary is proved, such service shall be deemed to have been effected at the time at which the letter would be delivered in the ordinary course.
Section 125 - Notice necessary in suits
No suit shall be instituted against a co-operative society or any of its officers in respect of any act touching the constitution, management or the business of the society until the expiration of two months next after notice in writing has been delivered to the Registrar, or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims; and the plaint shall contain a statement that such notice has been so delivered or left.
Section 126 - Acts of co-operative societies not to be invalidated by certain defects
No act of a co-operative society or any committee or of any officer shall be deemed to be invalid by reason only of the existence of any defect in the constitution of the society or the committee or in the appointment or election of an officer or on the ground that such officer was disqualified for his appointment.
Section 126A - Omitted
1[126A. x x x]
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1. Inserted by Act 70 of 1976 w.e.f. 19.7.1976 & omitted by Act 25 of 1998 w.e.f. 15.8.1998.
Section 127 - Indemnity
No suit, prosecution or other legal proceedings shall lie against the Registrar or any person subordinate to him or acting on his authority1[or the2[Director of Co-operative Audit] or any other person subordinate to him acting on his authority]3[or against the new committee of the co-operative society or the Administrator or the Special Officer appointed under section 30 or section 30A] in respect of anything in good faith done or purporting to have been done under this Act.
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1. Inserted by Act 3 of 1980 w.e.f. 11.8.1977.
2. Substituted by Act 5 of 1984 w.e.f. 9.1.1984.
3. Inserted by Act 70 of 1976 w.e.f. 19.7.1976.
Section 127A - Office bearers, members and employees of co-operative societies to be public servants
1 [127A. 2 [Office bearers, members and employees] of co-operative societies to be publicservants
2 [Every office bearer of a co-operative society, every member of a committee and every employee] of a cooperative society including sale and recovery officers shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.]
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1. Inserted by Act 5 of 1984 w.e.f. 9.1.1984.
2. Substituted by Act 25 of 1998 w.e.f. 15.8.1998.
Section 128 - Companies Act, 1956, not to apply
The provisions of the Companies Act, 1956 (Central Act 1 of 1956), shall not apply to co-operative societies.
Section 128A - Constitution of a common cadre
1 [128A. Constitution of a commoncadre
(1) Notwithstanding anything contained in this Act, the rules or the bye-laws, where the Registrar, in the interest of the co-operative movement, considers that the creation of a common cadre of employees for any class of co-operative societies is necessary, he shall authorise one or more federal societies to which such class of co-operative societies is affiliated to exercise the power of appointment, transfer and disciplinary action in respect of such categories of employees of that class of co-operative societies as may be specified by him and make such regulations as may be necessary for carrying out the said purpose. Where such federal society is so authorised by the Registrar, the affiliated co-operative societies shall not have powers to deal with such categories of employees except to the extent the regulations may permit.
(2) The Registrar shall have power to require the affiliated co-operativesocieties to make contribution of such sum every year towards expenditure, as the federal society is likely to incur or has incurred for the purpose. If any co-operative society fails to pay the said sum to such authority as may be specified by the Registrar and within the time fixed by him, the Registrar may on the application of the authority, and after such enquiry as he may consider necessary, make an order requiring the co-operative society to pay the amount, and every such order shall be enforceable against the cooperative society as if it were an award under section 71.]
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1. Inserted by Act 39 of 1975 w.e.f. 23.9.1975 & substituted by Act 5 of 1984 w.e.f. 9.1.1984.
Section 128B - Duties of police officer
1 [128B. Duties of policeofficer
It shall be the duty of every police officer to assist the Registrar or any person subordinate to the Registrar reasonably demanding his aid for the lawful exercise of any power vesting in the Registrar or such person under this Act or any rule or bye-law made thereunder.]
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1. Inserted by Act 25 of 1998 w.e.f. 15.8.1998.
Section 129 - Powers to make rules
(1) The State Government may, for the whole or any part of the State and for any class of co-operative societies, after previous publication, by notification in the official Gazette, make rules to carry out the purpose of this Act.
(2) In particular, and without prejudice to the generality of theforegoingpower, such rules may provide for all or any of the following matters, namely:--
(a) the applicant to whom the order refusing the registration of a co-operative society may be sent by the Registrar;
(b) the procedure and conditions for change in the form and extentof the liability of a co-operative society;
(c) the matters in respect of which a co-operative society shall or maymake bye-laws;
(d) the procedure to be followed for amendment of bye-laws by a co-operative society;
(e) the qualifications of individuals who may be admitted as membersof co-operative societies
(f) the provision for a second or casting vote by the chairman of a meeting of a co-operative society;
(g) the appointment by a co-operative society of one of its membersto represent and vote on its behalf at a meeting of another co-operative society of which it is a member;
1 [(h) x x x]
(i) the procedure for the nomination of a person to whom the shareor interest of a member on his death may be transferred or the value thereof may be paid;
(j) the mode in which the value of a deceased member's share shallbe ascertained;
2 [(k) conduct of election of members of the committee and office bearers of the co-operative society including appointment of returning officers, polling officers and such other officers, and their powers and functions;]
(l) the requisitioning of a general meeting of a co-operative society;
2 [(m) remuneration payable to the members of the committee and the administrator or the Special Officer appointed in place of a committee removed by the Registrar;]
(n) the qualifications 3 [x x x] for membership of committee of a cooperative society 4 [, the authority competent to decide questions of disqualification and appeals from such decisions;]
2 [(o) the recruitment including qualification for recruitment and conditions of service of employees of co-operative societies;]
(p) the prohibition against officers of a co-operative society beinginterested in contracts with the society;
(q) the matters connected with direct and indirect partnership of theState Government in co-operative societies;
(r) the rate at which dividend may be paid by co-operative societies;
(s) the objects of the reserve fund of a co-operative society and modeof its investment;
(t) the mode of disposal of reserve fund of a co-operative society on its winding up;
(u) the extent and conditions subject to which a co-operative societymay receive deposits and loans;
(v) the restrictions on transactions by a co-operative society with non-members;
(w) the restrictions on grant of loans by a co-operative society againstits shares;
(x) the form and standards of fluid resources to be maintained by co-operative societies accepting deposits and granting cash credits;
(y) the levy of audit fees on co-operative societies;
(z) the procedure to be followed in proceedings before the Registrar,Arbitrator or other person deciding disputes 4 [and the fees payable to arbitrators];
(aa) the conditions subject to which assets of a co-operative society shall vest in a liquidator and the procedure to be adopted in winding up of a co-operative society;
5 [(bb) the procedure for recovery of amounts due or payable to a cooperative society and for the transfer of property under section 101-B;]
(cc) the mode of making attachment before judgment;5 [(dd) the procedure and conditions for the issue, redemption, re-issue, transfer, replacement or conversion of debentures issued by a society to which Chapter XI is applicable; (dd-1) the maximum amount of principal, the rate of interest and other conditions for the guarantee of debentures issued by a society to which Chapter XI is applicable; (dd-2) the qualifications and methods of appointment of an officer to effect sale under section 89 and the powers and function which such an officer may exercise; (dd-3) for the appointment of a receiver of the produce and income of the mortgaged property for sale under section 89, the conditions in which he may be appointed or removed, the powers and functions which he may exercise and the expenses of management and remuneration which he may receive;
(dd-4) the circumstances in which action may be taken by a 2 [Agriculture and Rural Development Bank] against a mortgagor under section 91;
(dd-5) in case of sale of immovable property under Chapter XI,--
(i) the procedure for proclamation and conduct of the sale and theconditions on which the proposed sale may be abandoned;
(ii) the method of calculating the expenses incidental to the sale orproposed sale;
(iii) the procedure for the receipt of deposit and disposal of theproceeds of sale;
(iv) the procedure for a resale if a proposed sale is abandoned orthe purchase money is not deposited within the prescribed time and the penalty to be levied against the purchaser who fails so to deposit the purchase money;
(v) the form and method of disposal of money by a 2 [Agriculture and Rural Development Bank] under section 89B;
(vi) the form of sale certificate under section 89C;
(vii) the procedure for the delivery by the Court to the purchaser ofthe property purchased under section 89C;
(viii) the form of the notice referred to in section 97; and
(ix) the fee payable for the service of such notices and the mannerof serving such notices, on the land lord named in such notices;
(dd-6) the time within which and the procedure according to which property purchased by a 2 [Agriculture and Rural Development Bank] at a sale of immovable property under Chapter XI shall be disposed of by the Bank;]
(ee) the manner of registering the address of a co-operative society; (ff) the 2 [account books and records] and registers to be kept by a co-operative society and power of Registrar to direct the accounts and books to be written up;(gg) the manner of certification of entries in the books of a co-operative society and of copies of documents kept by it in the course of its business;
(hh) the statements and returns to be furnished by co-operative societies to the Registrar;
(ii) the restrictions on persons appearing as legal practitioners;
(jj) the inspection of documents and the levy of fees for granting certified copies thereof; and
(kk) the matters expressly required or allowed by this Act to be prescribed.
4 [(ll) any other matter necessary for giving effect to the purposes of this Act.]
(3) In making a rule under this section, the State Government mayprovide that a person guilty of a breach thereof shall be punishable with fine which may extend to two hundred rupees.
4 [(4) A rule under this Act may be made with retrospective effect and when such a rule is made the reasons for making the rule shall be specified in a statement laid before both Houses of the State Legislature. Subject to any modification made under section 130, every rule made under this Act shall have effect as if enacted in this Act.]
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1. Omitted by Act 25 of 1998 w.e.f. 15.8.1998.
2. Substituted by Act 25 of 1998 w.e.f. 15.8.1998.
3. Omitted by Act 39 of 1975 w.e.f. 23.9.1975.
4. Inserted by Act 40 of 1964 w.e.f. 26.6.1965.
5. Substituted by Act 40 of 1964 w.e.f. 26.6.1965.
Section 129A - Model bye-laws
1 [129A. Modelbye-laws
(1) In respect of any of the matters specified in the rules made in accordance with clause (c) of sub-section (2) of section 129, the Registrar may by notification, make model bye-laws and different model bye-laws may be made for different classes of societies.
(2) The Registrar may by order direct any co-operative society or classor classes of co-operative societies to adopt the model bye-laws in respect of any matter within such period not being less than three months from the date of receipt of the direction by the society.
(3) If a co-operative society fails to take any action for adopting the modelbye-laws with or without modifications, the Registrar may by order declare that the said model bye-laws shall be deemed to have been adopted by such society from such date as may be specified in such order and such bye-laws come into force accordingly.]
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1. Inserted by Act 25 of 1998w.e.f. 15.8.1998.
Section 130 - Rules and orders to be laid before State Legislature
Every notification issued under sections 37, 54 and 132, every order made under sections 120 and 121, and every rule made under section 129 shall, as soon as may be, after it is issued or made be laid before each House of the State Legislature while it is in session for a total period of thirty days which may be comprised in one session or in two or more sessions and if before the expiry of the said period, either House of the State Legislature makes any modification in the notification, order or rule or directs that the notification, order or rule shall not have effect and if the modification or direction is agreed to by the other House, the notification, order or rule shall thereafter have effect only in such modified form or be of no effect, as the case may be.
Section 131 - Repeal and savings
The Bombay Co-operative Societies Act, 1925 (Bombay Act VII of 1925) as in force in the 1 [Belgaum Area], the Madras Co-operative Societies Act, 1932 (Madras Act IV of 1932) and the Madras Co-operative Land Mortgage Banks Act, 1934 (Madras Act X of 1934) as in force in the 1 [Mangalore and Kollegal Area], the Coorg Cooperative Societies Act, 1936 (Coorg Act II of 1936) as in force in Coorg District, the Mysore Co-operative Societies Act, 1948 (Mysore Act LII of 1948), as in force in the Mysore Area the Hyderabad Co-operative Societies Act, 1952 (Hyderabad Act XVI of 1952), and the Hyderabad Co-operative Land Mortgage Banks Act, 1349 F (Hyderabad Act II of 1349 Fasli) as in force in the 1 [Gulbarga Area], are hereby repealed:
Provided that any co-operative society existing on the date of commencement of this Act which has been registered or deemed to be registered under any of the aforesaid repealed enactments shall be deemed to be registered under this Act; and the bye-laws of such society shall so far as they are not inconsistent with the provisions of this Act or the rules made thereunder, continue in force until altered or rescinded in accordance with the provisions of this Act and the rules made thereunder:
Provided further that subject to the preceding proviso section 6 of the 1 [Karnataka] General Clauses Act, 1899 (1 [Karnataka Act] III of 1899) shall be applicable in respect of the repeal of the said enactments and sections 8 and 24 of the said Act shall be applicable as if the said enactments had been repealed and re-enacted by a 1 [Karnataka Act].
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1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 1.11.1973.
Section 132 - Power to remove difficulties
(1) If any difficulty arises in giving effect to the provisions of this Act in consequence of the transition to the said provisions from the provisions of the Acts in force immediately before the commencement of this Act, the State Government, may, by notification in the official Gazette, make such provisions as appear to it to be necessary or expedient for removing the difficulty.
(2) If any difficulty arises in giving effect to the provisions of this Act(otherwise than in relation to the transition from the provisions of the Acts in force before the commencement of this Act), the State Government may by notification make such provisions, not inconsistent with the purposes of this Act, as appear to it to be necessary or expedient for removing the difficulty.