Delhi Cooperative Societies Act, 1972 Complete Act - Bare Act

(1) This Act may be called the Delhi Co-operative Societies Act, 1972

(2) It extends to the whole of the Union Territory of Delhi

(3) It shall come into force on such date as the Lieutenant-Governor may, by notification in the Delhi Gazette, appoint

In this Act, unless the context otherwise requires,

(a) "by-laws" means the registered by-laws for the time being in force, and includes registered amendments of such by-laws;

(b) "committee" means the governing body of a co-operative society, by whatever name called, to which the management of the affairs of the society is entrusted;

(c) "co-operative bank" shall have the same meaning as is assigned to it in the Deposit Insurance Corporation Act, 1961;

(d) "co-operative society" means society registered or deemed to be registered under that Act;

(e) "co-operative society with limited liability" means a co-operative society the liability of whose members is limited by its by-laws to the amount, if any unpaid on the shares individually held by them or to such amount as they may individually undertake to contribute to the assets of the society, in the event of its being wound up;

(f) "co-operative society with unlimited liability" means a co-operative society the liability of whose members is unlimited for the purpose of contributing jointly and severally to any deficiency in the assets of the society in the event of its being wound up;

(g) "Deposit Insurance Corporation" means the Deposit Insurance Corporation established under Section 3 of the Deposit Insurance Corporation Act, 1961;

(h) "federal society" means a society

(a) not less than five members of which are themselves societies; and

(b) in which the voting rights are so regulated that the members which are societies have not less than four-fifth of the total number of votes in the general meeting of such society

(i) "financing bank" means a co-operative society, the objects of which include the creation of funds to be lent to other co-operative societies;

(j) "Lieutenant-Governor" means the administrator of the Union Territory of Delhi appointed by the President under article 239 of the Constitution;

(k) "member" means a person joining in the application for the registration of a co-operative society and a person admitted to membership after such registration in accordance with this Act, the rules and the bylaws, and includes a nominal and an associate member and the Central Government when it subscribes to the share capital of a society;

(l) "officer" means the president, vice-president, chr.irman, vicechairman, managing director, secretary, manager, member of committee, treasurer, liquidator, administrator, and includes any other person empowered under the rules or the by-laws to give direction in regard to the business of a co-operative society;

(m) "prescribed" means prescribed by rules;

(n) "registrar" means a person appointed to perform the functions of the Registrar of Co-operative Societies under this Act, and includes any person appointed to assist the Registrar when exercising all or any of the powers of the Registrar;

(o) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934;

(p) "rules" means the rules made under this Act; and

(q) "Tribunal" means the Delhi Co-operative Tribunal constituted under Section 78

(1) The Lieutenant-Governor may appoint a person to be the Registrar of Co-operative Societies for the Union Territory of Delhi and may appoint other persons to assist him

(2) The Lieutenant-Governor may, by general or special order, confer on any person appointed to assist the Registrar all or any of the powers of the Registrar under This Act

(3) Every person appointed to assist the Registrar shall exercise the powers conferred on him under sub-section (2) subject to the general guidance, superintendence and control of the Registrar

(4) The Lieutenant-Governor may, by notification in the Delhi Gazette and subject to such conditions as he may think fit to impose, confer all or any of the powers of the Registrar under this Act on any federal society, or an officer of such federal society; and every such federal society or officer on whom the powers of the Registrar are so conferred shall exercise such powers under the general guidance, superintendence and control of the Registrar.

(1) Subject to the provisions hereinafter contained, a society which has as its object the promotion of the economic interests of its members in accordance with co-operative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Act with or without limited liability :

Provided that no society shall be registered if it is likely to be economically unsound or the registration of which may have an adverse effect on the development of co-operative movement:

Provided further that, unless the Lieutenant-Governor, by general or special order otherwise directs, the liability of the society of which a member is a co-operative society shall be limited.

(2) The word "limited" or its equivalent in any Indian language shall be the last word in the name of every society registered under this Act with limited liability

No society other than a federal society shall be registered under this Act unless it consists of at least ten persons (each of such persons being a member of different family), who are qualified to be members under this Act and who reside in the area of operation of the society.

Explanation, For the purpose of this section the expression "member of a family" means wife, husband, father, mother, grand-father, grand-mother, step-father, step-mother, son, unmarried daughter, unmarried step-daughter, step-son, grandson, unmarried granddaughter, unmarried sister, unmarried half-sister, brother, half-brother, and wife of brother or half-brother

No member other than the Central Government or a co-operative society shall hold more than such portion of the share capital of a co-operative society, subject to a maximum of one-fifth, as may be prescribed or have or claim any interest in the shares of such society exceeding ten thousand rupees, whichever is less

(1) For the purposes of registration, an application shall be made to the Registrar.

(2) The application shall be signed,

(a) in case of a society of which no member is a co-operative society by at least ten persons qualified in accordance with the requirements of section 5; and

(b) in case of a society of which a member is a co-operative society, by a duly authorised person on behalf of every such society and where all the members of the society are not co-operative societies, by ten other members, or, when there are less than ten other members, by all of them

Where any question arises whether for the purpose of this Act a person resides in the area of operation of a society or not, or whether a society is of same type as another society or of different type, the question shall be decided by the Registrar whose decision shall be final.

(1) If the Registrar is satisfied

(a) that the application complies with the provisions of this Act and the rules

(b) that the objects of the proposed society are in accordance with section 4

(c) that the proposed by-laws are not contrary to the provisions of this Act and the rules; and

(d) that the proposed society has reasonable chances of success, the Registrar may register the society and its by-laws.

(2) When the Registrar refuses to register a society, he shall communicate the order of refusal, together with the reasons therefor, to such of the applicants as may be prescribed.

(3) The application for registration shall be disposed of by the Registrar within a period of three months from the date of receipt thereof by him : Provided that if the Registrar is unable to dispose of the application within the aforesaid period, he shall make a report to the Lieutenant Governor stating therein the reasons for his inability to do so, and the Lieutenant-Governor may allow him further time not exceeding three months to dispose of such application

Where a society is registered under this Act, Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the co-operative society therein mentioned is duly registered under this Act.

(1) No amendment of any by-laws of a co-operative society shall be valid unless such amendment has been registered under this Act

(2) Every proposal for such amendment shall be forwarded to the Registrar and if the Registrar is satisfied that the proposed amendment

(a) is not contrary to the provisions of this Act and the rules

(b) does not conflict with co-operative principles; and

(c) will promote the economic interests of the members of the society, he may register the amendment

(3) The Registrar shall forward to the society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered

(4) Where the Registrar refuses to register an amendment of by-laws of a co-operative society, he shall communicate the order of refusal together with the reasons therefor, to the society in the manner prescribed

An amendment of the by-laws of a co-operative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.

(1) A co-operative society may by an amendment of its by-laws, change its name but such change shall not affect any right or obligation of the society or of any of its members or past members, and any legal proceedings pending may be continued by or against the society under its new name.

(2) Where a co-operative society changes its name, the Registrar shall enter the new name on the register of co-operative societies in place of the former name and shall amend the certificate of registration accordingly

(1) Subject to the provisions of this Act and the rules, a co-operative society may, by an amendment of its by-laws change the form or extent of its liability

(2) When a co-operative society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and, notwithstanding any by-law or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be

(3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have assented to the change

(4) An amendment of a by-law of a co-operative society changing the form or extent of its liability shall not be registered or take effect until either

(a) the assent thereto of all members and creditors and has been obtained; or

(b) all claims of members and creditors who exercise the option referred to in sub-section (2) within the period specified therein have been met in full

(1) A co-operative society may, with the previous approval of the Registrar and by a resolution passed by a two-thirds majority of the members present and voting at a general meeting of the society,

(a) transfer its assets and liabilities in whole or in part to any other cooperative society

(b) divide itself into two or more co-operative societies.

(2) Any two or more co-operative societies may, with the previous approval of the Registrar and by a resolution passed by a two-thirds majority of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new co-operative society.

(3) The resolution of a co-operative society under sub-section (1) or subsection (2) shall contain all particulars of the transfer, division or amalgamation, as the case may be :

Provided that in the case of a co-operative bank, the Registrar shall not accord approval to any such resolution without the previous sanction in writing of the Reserve Bank

(4) When a co-operative society has passed any such resolution, it shall give notice thereof in writing to all its members and creditors and, notwithstanding any by-laws or contract to the contrary, any member or creditor shall, during the period of one month of the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.

(5) Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have assented to the proposals contained in the resolution.

(6) A resolution passed by a co-operative society under this section shall not take effect until, either

(a) the assent thereto of all the members and creditors, been obtained, or

(b) all claims of members and creditors who exercise the option referred to in sub-section (4) within the period specified therein have been met in full

(7) Where a resolution passed by a co-operative society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance

(1) Where the Registrar is satisfied that it is essential in the public interest, or in the interest of the co-operative movement, or for the purpose of securing the proper management of any co-operative society that two or more co-operative societies should be amalgamated or any co-operative society should be divided to form two or more co-operative societies or should be reorganised, then notwithstanding anything contained in Section 15, but subject to the provisions of this section, the Registrar may, by order, provide for the amalgamation, division or reorganisation of these cooperative societies into a single society or into societies with such constitution; property rights, interest and authorities and such liabilities, duties and obligation as may be specified in the order:

Provided that no such order of amalgamation, division or reorganisation in respect of a co-operative bank shall be made without the previous sanction in writing of the Reserve Bank.

(2) No order shall be made under this section unless

(a) a copy of the proposed order has been sent in draft to the co-operative society or each of the co-operative societies concerned; and

(b) the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions and objections which may be received by him within such period (not being less than two months from the date on which a copy of the order aforesaid is received by the society or societies, as the case may be), as the Registrar may fix in that behalf, either from the society or from any of the societies concerned or from any member or class of members thereof or from any creditor or class of creditors thereof.

(3) The order referred to in sub-section (1) may contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation, division or reorganisation, as the case may be.

(4) Every member or creditor of each of the co-operative societies to be amalgamated, divided or re-organised, who has objected to the scheme of amalgamation, division or reorganisation, within the period specified, shall be entitled to receive, on the issue of the order of amalgamation, division or reorganisation, his share or interest, if he be a member and the amount in satisfaction of his dues, if he be a creditor

(5) On the issue of an order under sub-section (1), the provisions of subsections (2) , (3) and (4) of Section 19 shall apply to the co-operative societies so amalgamated, divided or re-organised as if the amalgamation, division or reorganisation had been made under Section 15

When an order of moratorium has been made by the Central Government under sub-section (2) of Section 45 of the Banking Regulation Act, 1949, in respect of a co-operative bank, the Registrar with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme

(a) for the reorganisation of the Co-operative Bank; or

(b) for the amalgamation of the co-operative bank with any other cooperative bank

Notwithstanding anything contained in Sections 15 and 16 or any other provision of this Act, where a co-operative bank, being an insured bank within the meaning of the Deposit Insurance Corporation Act, 1961, is amalgamated or re-organised and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of Section 16 of that Act, the bank with which insured bank is amalgamated, or the new co-operative bank formed after such amalgamation, or as the case may be, the insured bank or transferee bank shall be under an obligation, to repay the Deposit Insurance Corporation in the circumstances, to the extent of and in the manner referred to in Section 21 of the Deposit Insurance Corporation Act, 1961

(1) Where the whole of the assets and liabilities of a co-operative society are transferred to another co-operative society in accordance with the provisions of section 15 or section 16, the registration of the first mentioned cooperative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body.

(2) Where two or more co-operative societies are amalgamated into a new co-operative society in accordance with the provisions of Section 15 or Section 16, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each society shall be deemed to have been dissolved and shall cease to exist as a corporate body.

(3) Where a co-operative society divides itself into two or more co-operative societies in accordance with the provisions of Section 15 or is divided by the Registrar in accordance with the provisions of Section 16, the registration of that society shall stand cancelled on the registration of the new societies, and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.

(4) The amalgamation and splitting of co-operative societies shall not in any manner whatsoever affect any right or obligation of resulting co-operative society or societies or render defective any legal proceedings by or against the co-operative society or societies or any legal proceedings that might have been continued or commenced by or against the co-operative society or societies, as the case may be, before the amalgamation or splitting may be continued or commenced by or against the resulting cooperative society or societies.

(5) Where a co-operative society has not commenced business within a reasonable time of its registration or has ceased to function or if the Registrar is satisfied, after making such inquiry as he thinks fit; that the society no longer has genuinely as its objects one or more of the objects specified in section 4 and that its registration in the interest of the general public ought to be cancelled, he shall make an order cancelling the registration of the co-operative society. The co-operative society shall, from the date of such order of cancellation be deemed to be dissolved and shall cease to exist as a corporate body

(1) No person shall be admitted as member of a co-operative society except the following, namely :

(a) an individual competent to contract under Section 11 of the Indian Contract Act, 1972

(b) any other co-operative society

(c) the Central Government; and

(d) such class or classes of persons or association of persons as may be notified by the Lieutenant-Governor in his behalf :

Provided that the provisions of clause (a) shall not apply to an individual seeking admission to a society exclusively formed for the benefit of students of a school or college

(2) Notwithstanding anything contained in sub-section (1), the Lieutenant- Governor may, having regard to the fact that the interest of any person or class of persons conflicts or is likely to conflict with the objects of any society or class of societies, by general or special order, published in the Delhi Gazette, declare that any person or class of persons engaged in or carrying on any profession, business or employment shall be disqualified from being admitted, or for continuing as members or shall be eligible for membership only to a limited extent of any specified society or class of societies, so long as such person is or such persons are engaged in or carrying on that profession, business or employment, as the case may be

(1) Notwithstanding anything contained in clause (d) of Section 20, a co-operative society may admit any person as a nominal or associate member in accordance with its by-laws.

(2) A nominal or associate member shall not be entitled to any share in any form whatsoever, in the assets or profits of the co-operative society.

(3) Save as provided in this section, a nominal or associate member shall have such privileges and rights of a member and be subject to such liabilities of a member, as may be specified in the by-laws of the society

No member of a co-operative society shall exercise the right of a member unless he has made such payment to the society in respect of membership or has acquired such interest in the society as may be specified in the by-laws

Every member of a co-operative society shall have one vote in the affairs of the society.

Provided that

(a) in the case of an equality of votes, the chairman shall have a second or casting vote

(b) a nominal or associate member shall not have the right of vote; and

(c) where the Central Government is a member of the co-operative society, each person nominated by the Central Government on the committee shall have one vote

(1) Every member of a co-operative society shall exercise his vote in person and no member shall be permitted to vote by proxy

(2) Notwithstanding anything contained in sub-section (1), a co-operative society which is a member of another cooperative society, may, subject to the rules, appoint one of its members to vote on its behalf in the affairs of that other society

The transfer of the share or interest of a member in the capital of a co-operative society shall be subject to such conditions as to maximum holding as are specified in Section 6

(1) On the death of a member, a co-operative society may transfer the share or interest of the deceased member, to the person nominated in accordance with the rules made in this behalf, or, if there is no person so nominated, to such person as may appear to the committee to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such member's share or interest as ascertained in accordance with the rules or bylaws :

Provided that

(i) in the case of a co-operative society with unlimited liability, such nominee, heir or legal representative, as the case may be, may require payment by the society of the value of the share or interest of the deceased member ascertained as aforesaid

(ii) in the case of a co-operative society with limited liability, the society shall transfer the share or interest of the deceased member to such nominee, heir or legal representative, as the case may be, being qualified in accordance with the rules and by-laws for membership of the society, or on his application within one month of the death of the deceased member to any person specified in the application who is so qualified

(iii) no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be.

(2) A co-operative society shall, subject to the provisions of section 36 and unless within six months of the death of member prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society.

(3) All transfers and payments made by a co-operative society in accordance with the provisions of the section shall be valid and effectual against any demand made upon the society by any other person

(1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a co-operative society for the debts of the society as they existed,

(a) in the case of a past member, on the date on which he ceased to be a member

(b) in the case of a deceased member, on the date of his death, shall continue for a period of two years from such date.

(2) Where a co-operative society is ordered to be wound up under Section 63, the liability of a past member or of the estate of a deceased member who ceased to be a member or died within two years immediately preceding the date of the order of winding up shall continue until the entire liquidation proceedings are completed but such liability shall extend only to the debts of the society as they existed on the date of his ceasing to be a member or death, as the case may be

(1) The final authority in a co-operative society shall vest in the general body of members: Provided that where the by-laws of a co-operative society provide for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such by-laws, the smaller body shall, exercise such powers of the general body as may be prescribed or as may be specified in the by-laws of the society

(2) Notwithstanding anything contained in sub-section (2) of Section 24 each delegate shall have one vote in the affairs of the society

(1) Every co-operative society shall, within a period of six months next after the date fixed for making-up its accounts for the year under the rules for the time being in force, call a general meeting of its members for the purpose of

(a) approval of the programme of the activities of the society prepared by the committee for the ensuing year

(b) election, if any, of the members of the committee other than nominated members subject to the provisions of Section 31

(c) consideration of the audit report and the annual report

(d) disposal of the net profit; and

(e) consideration of any other matter which may be brought forward in accordance with by-laws:

Provided that the Registrar may, by general or special order, extend the period for holding such meeting for a further period not exceeding three months:

Provided further that, if in the opinion of the Registrar no such extension is necessary, or such meeting is not called by the society within the extended period, if any, granted by him, the Registrar or any person authorised by him may call such meeting in the manner prescribed, and that meeting shall be deemed to be a general meeting duly called by the society and the Registrar may order that the expenditure incurred in calling such a meeting shall be paid out of the funds of the society or by such person or persons who in the opinion of the Registrar, were responsible for the refusal or failure to convene the general meeting

(2) At every annual general meeting of a co-operative society, the committee shall lay before the society a statement showing the details of the loans, if any, given to any of the members of the committee during the preceding

(1) The committee of a co-operative society may, at any time, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Registrar or from such number of members or a proportion of the total number of members, as may be provided in the by-laws.

(2) If a special general meeting of a co-operative society is not called in accordance with the requisition referred to in sub-section (1), the Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to a be a meeting called by the committee, and the Registrar may order that the expenditure incurred in calling such a meeting shall be paid out of the funds of the society or by any such person or persons who, in the opinion of the Registrar, were responsible for the refusal or failure to convene the special general meeting

(1) The superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of elections of the members of the committees of such co-operative societies or class of co-operative societies, as may be prescribed shall be vested in such returning officers not below the rank of gazetted officers as may be appointed by the Lieutenant-Governor in this behalf.

(2) The vote at such elections shall be by secret ballot.

(3) The term of office of the elected members of the committee shall be such, not exceeding three co-operative years including the co-operative year of their election, as may be specified in the by-laws of the society :

Provided that the elected members shall continue to hold office till their successors are elected or nominated under the provisions of the Act or the rules or by-laws.

(4) No person shall be eligible to be elected as a member of the committee of a co-operative society unless he is a shareholder of that co-operative society.

(5) Notwithstanding anything contained in this Act, a person shall be disqualified for election as, or for being, the president, vice-president, chairman, vice-chairman, managing director, secretary, joint secretary or treasurer of a committee,

(a) if he has held any such office on a committee during two consecutive terms whether full or part

(b) if he holds any such office on a committee of another co-operative society of the same type

(c) if he holds any such office on the committees of three or more co-operative societies of a different type or different types:

Provided that nothing contained in this sub-section shall be deemed to disqualify any such person for election as, or for being, a delegate of a society or a member of another committee

Explanation 1. Where any person holding any office as aforesaid at the commencement of this Act is again elected to any such office after such commencement, he shall for the purpose of this sub-section be deemed to have held that office for one term before such election

Explanation 2. A person who has ceased to hold any such office as aforesaid continuously for one full term shall again be qualified for election to any of those offices

(6) On the committee of such co-operative societies or class of co-operative societies as may be prescribed, two seats shall be reserved, one for the members who belong to the Scheduled Castes and one for economically weaker sections of the members who as land-owners or tenants or as both do not hold more than the prescribed area of agriculture land or fulfil the prescribed conditions and if no such persons are elected, the committees shall co-opt the required number of members from amongst the persons entitled to such representation.:

Provided that in the case of a primary agricultural credit society such number of seats, being not less than one-half of the total number of members of the Committee, shall be reserved for members belonging to the Scheduled Castes and the aforesaid economically weaker sections of the members as may be prescribed, and if no such persons are elected, the Committee shall co-opt the required number of members from amongst the persons entitled to such representation.

Explanation : For the purpose of this sub-section,

(i) "Scheduled Castes" means any of the Scheduled Castes specified in Part I of the Schedule to the Constitution (Scheduled Castes) (Union Territories) order, 1951

(ii) "primary agricultural credit society" has the meaning assigned to it in clause (c) (ii) of Section 2 of the Reserve Bank of India Act, 1934

(7) Notwithstanding anything contained in this Act, any dispute relating to election of members of any committee of a co-operative society mentioned in sub-section (1) shall be referred to the Lieutcnant-Governor whose decision thereon shall be final

(8) The Lieutenant-Governor may make rules generally to provide for or to regulate matters in respect of elections of members of the committees

(9) Notwithstanding anything contained in sub-section (1) to (8).

(a) where the Central Government has subscribed to the share capital of a cooperative society, the Central Government or any person authorised by it in this behalf shall have the right to nominate on the, committee such number of persons not exceeding three or one-third of the total number of members thereof, whichever is less, as the Central Government may determine

(b) where the Industrial Finance Corporation, the State Finance Corporation or any other financing institution notified in this behalf by the Central Government has provided finance to a co-operative society, the Industrial Finance Corporation, State Finance Corporation or other financing institution, as the case may be, shall have the right to nominate one person on the committee

(10) A person nominated under sub-section (9) shall hold office during the pleasure of the Central Government or the Corporation or other financing institution, as the case may be

(1) If, in the opinion of the Registrar, the committee of any co-operative society persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or the by-laws or commits any act which is prejudicial to the interest of the society, or its members, the Registrar may, after giving the committee an opportunity to state its objections, if any, by order in writing, remove the committee; and

(2) The Registrar may fix any remuneration for the administrator, as he may think fit. Such remuneration shall be paid out of the funds of the society.

(3) The administrator shall, subject to the control of the Registrar and to such instructions as he may from time to time give have power to exercise all or any of the functions of the committee or of any officer of the society and take all such actions as may be required in the interest of the society.

(4) The administrator shall at the expiry of his term of office, arrange for the constitution of a new committee in accordance with the by-laws of the society.

(5) Before taking any action under sub-section (1) in respect of a co-operative society, the Registrar shall consult the financing institution to which it is indebted.

(6) Notwithstanding anything contained in this Act, the Registrar shall in the case of a co-operative bank, if so required in writing by the Reserve Bank in the public interest or for preventing the affairs of the co-operative bank being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of a co-operative bank pass an order for the Supersession of the committee of that co-operative bank pass an order for the supersession of the committee of that co-operative bank and appointment of an administrator therefor, for such period or periods not exceeding five years in the aggregate, as may from time to time be specified by the Reserve Bank

(1)

(a) If the record, registers or the books of accounts of a co-operative society are likely to be tampered with or destroyed and the fund and property of a society are likely to be misappropriated or misapplied; or

(b) If the committee of a co-operative society is reconstituted at a general meeting of the society or the committee of a society is removed by the Registrar under Section 32 or if the society is ordered to be wound up under Section 63 and the outgoing members of the committee refuse to hand over charge of the records and property of the society to those having or entitled to receive such charge, the Registrar may apply to the magistrate, within whose jurisdiction the society functions, for securing the records and property of the society.

(2) On receipt of an application under sub-section (1), the magistrate may, by a warrant, authorise any police officer, not below the rank of sub-inspector to enter and search any place where the records and the property are kept or are believed to be kept and to seize such records and property; and the records and property so seized shall be handed over to the new committee or administrator of the society or the liquidator, as the case may be

No act of a co-operative society or of any committee or of any officer shall be deemed to be invalid by reason only of the existence of any defect in procedure or in the constitution of the society or of the committee or in the appointment or election of an officer or on the ground that such officer was disqualified for his appointment

The registration of a co-operative society shall render it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to hold property, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted.

(1) Notwithstanding anything contained in any law for the time being in force, but subject to any prior claim of the Government in respect of land revenue or any money recoverable as land revenue, any debt or outstanding demand owing to a co-operative society by any member or past member or deceased member shall be a first charge upon the crops and other agricultural produce, cattle, fodder for cattle, agricultural or industrial implements or machinery, raw materials for manufacture and any finished products manufactured from such raw materials, belonging to such member, past member or forming part of the estate of the deceased member, as the case may be.

(2) No person shall transfer any property which is subject to a charge under sub-section (1) except with the previous permission in writing of the co-operative society which holds the charge.

(3) Notwithstanding anything contained in any law for the time being in force, any transfer of property made in contravention of the provisions of subsection (2) shall be void.

(4) The charge created under sub-section (1) shall be available as against any claim of the Government arising from a loan granted under the Land Improvement Loans Act, 1883, or the Agriculturists' Loans Act, 1884, after the grant of the loan by the society

(i) any person who makes an application to a society of which he is a member for a loan shall, if the owns any land or has interest in any land as a tenant, make a declaration in he prescribed form which shall state that the applicant thereby creates a charge on such land or interest specified in the declaration for the payment of the amount of the loan which the society may make to the member in pursuance of the application and for all future advances, if any, required by him which the society may make to him as such member subject to such maximum as may be determined by the society together with interest on such amount of the loan and advances;

(ii) any person who has borrowed a loan from a society of which he is a member before the date of the coming into force of this Act, and who owns any land or has any interest in land as a tenant shall, as soon as possible, makes a declaration in the form and to the effect referred to in clause (i);

(iii) a declaration made under clause (i) or clause (ii) may be varied at any time by a member with the consent of the society in favour of which such charge is created;

(iv) no member shall alienate the whole or any part of the land or interest therein specified in the declaration made under clause (i) or clause (ii) until the whole amount borrowed by the member together with interest thereon is paid in full:

Provided that for the purpose of paying in full to the society the whole amount borrowed by the member together with interest thereon, the member may, with the previous permission in writing of the society and subject to such conditions as the society may impose, alienate the whole or any part of such land or interest thereon :

Provided further that standing crops on any such land may be alienated with the previous permission of the society

(v) any alienation made in contravention of the provisions of clause (iv) shall be void;

(vi) subject to the prior claims of the Government in respect of land revenue or any money recoverable as land revenue, there shall be a first charge in favour of the society on the land or interest specified in the declaration made under clause (i) or clause (ii) for and to the extent of the dues owing by him on account of the loans and advances;

(vii) the record of rights shall also include the particulars of every charge on land or interest created under a declaration under clause (i) or clause (ii) notwithstanding anything contained in any law relating to land revenue for the time being in force;

(viii) any sum due to a society in consequence of charge created under a declaration under clause (i) or clause (ii) shall, on application for its recovery being made by such society accompanied by a certificate signed by the Registrar, be recoverable by the Collector, according to the law and under the rules for the time being in force for the recovery of land revenue.

Explanation. For the purposes of this section, "society" shall mean any co-operative society or class of co-operative societies specified in this behalf by the Lieutenant-Governor by a general or special order

A co-operative society shall have a charge upon the share or contribution or interest in the capital and on the deposits of a member or past member or deceased member and upon any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect of any debt due from such member or past member or the estate of such deceased member to the society, and may set-off any sum credited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt

Subject to the provisions of Section 38, the share or contribution of a member of past member or deceased member in the capital of a co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt or liability incurred by such member, and a receiver under the Provincial Insolvency Act, 1920 shall not be entitled to or have any claim on such share or contribution or interest

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 any person entered in such register or list became a member

(b) the date on which any person ceased to be a member

(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 the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is admissible

(2) No officer of a co-operative society and no offer 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 provided under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under order of the court or the arbitrator made for special cause

Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Indian, Registration Act, 1903 shall apply to

(1) any instrument relating to shares in a co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or

(2) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder thereof to the security afforded by a registered instrument whereby the society has mortgaged, conveyed, or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or

(3) an endorsement upon or transfer of any debenture issued by any such society

(1) The Central Government may, by notification in the Official Gazette, remit the income-tax payable in respect of the profits of any class of co-operative societies or the dividends or other payments received by members of any class of such societies on account of profits.

(2) The Central Government may, by notification in the Official Gazette, remit in respect of any class of co-operative societies

(a) the stamp duty chargeable under any law for the time being in force in respect of any instrument executed by or on behalf of a co-operative society or by an officer or member thereof and relating to the business of such society or any class of such instruments or in respect of any award or order made under this Act, in cases, where, but for such remission the co-operative society, officer or member, as the case may be, would be liable to pay such stamp duty

(b) any fee payable under any law for the time being in force relating to the registration of documents or court fee.

(3) The Central Government may, by notification, exempt any class of co-operative societies from

(a) land revenue

(b) taxes on agricultural income

(c) taxes on sale or purchase of goods; and

(d) taxes on professions, trades, callings and employments

(1) Notwithstanding anything contained in any law for the time being in force, a member of a co-operative society may execute an agreement in favour of the society providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.

(2) On the execution of such agreement, the employer shall, if so required by the co-operative society by a requisition in writing and so long as the society does not intimate that the whole of such debt or demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society, as if it were a part of the salary or wages payable on the day as required under the Payment of Wages Act, 1936. Such payment shall be valid discharge of the employer for his liability to pay the amount deducted.

(3) Where a requisition in writing from any society registered or deemed to be registered in any reciprocating State in respect of a member of that society, who has executed any such agreement as is referred to in sub-section (1) and who for the time being is employed in the Union Territory of Delhi, is received by his employer, the requisition shall be acted upon as if it had been made by a society in Delhi and the provisions of this section shall have effect accordingly.

Explanation. For the purpose of this sub-section "reciprocating State" means any State or Union territory which the Lieutenant Governor may, by notification in the Delhi Gazette, declare to be a reciprocating State.

(4) If after the receipt of a requisition made under sub-section (2) or subsection (3), the employer at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the society, the society shall be entitled to recover any such amount from the employer as arrears of land revenue and the amount so due from the employer shall rank in priority in respect of the liability of the employer equal to that of the wages in arrears

(5) Nothing contained in this section shall apply to establishment under a railway administration operating any railway as defined in clause (20) on article 366 of the Constitution

Notwithstanding anything contained in any law for the time being in force the Central Government may

(a) subscribe to the share capital of a co-operative society

(b) give loans or make advances to co-operative societies

(c) guarantee the repayment of principal and payment of interest on debentures issued by a co-operative society

(d) guarantee the repayment of share capital of a co-operative society and dividends thereon at such rates as may be specified by the Central Government

(e) guarantee the repayment of principal and payment of interest on loans and advances to a co-operative society; and

(f) give financial assistance in any other form, including subsidies, to any co-operative

Funds not to be divided by way of profit No part of the funds of a co-operative society shall be divided by way of bonus or dividend or otherwise among its members:

Provided that after at least one-fourth of the net profits in the year has been carried to the reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made to the member to such extent and under such conditions as may be prescribed by the rules or by-laws

Any co-operative society may, with the sanction of the Registrar, after one-fourth of the net profits in any year has been carried to the reserve fund, contribute an amount not exceeding five per cent of the remaining net profits to any purpose connected with the development of co-operative movement or charitable purpose as defined in section 20 of the Charitable Endowments Act, 1890

A co-operative society shall out of its net profits in any year credit such portion of the profits not exceeding five per cent as may be prescribed to the Co-operative Education Fund constituted under the rules

(1) A co-operative society may invest or deposit its fund

(a) in the post office savings Bank; or

(b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882; or

(c) in the shares or securities of any other co-operative society; or

(d) with any bank carrying on the business of banking approved for this purpose by the Registrar; or

(e) in any other mode permitted by the rules.

(2) Any investment or deposits made before the commencement of this Act which would have been valid if this Act had been in force are hereby rectified and confirmed

(1) A co-operative society shall not make a loan to any person other than a member:

Provided that with the general or special sanction of the Registrar a co-operative society may make loan to another co-operative society

(2) Notwithstanding anything contained in sub-section (1), a co-operative society may make a loan to a depositor within his deposit on its security

A co-operative society shall receive deposits and loans only to such extent and under such conditions as may be prescribed or as may be specified in the bylaws

Save as provided in sections 50 and 51, the transactions of a co-operative society with any person other than a member shall be subject to such prohibitions and restrictions, if any, as may be prescribed

(1) The Registrar shall audit or cause to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every co-operative society at least once in each year

(2) The audit under sub-section (1) shall include an examination of overdue debts, if any, the verification of the cash balance and securities, and a valuation of the assets and liabilities of the society

(3) The person auditing the accounts of a co-operative society shall have fresh access to the books, accounts; papers, vouchers, stock and other property of such societies and shall be allowed to verify its cash balance and securities

(4) The directors, managers, administrators and other officers of the society Shall furnish to the person auditing the accounts of a co-operative society all such information as to its transactions and working as such person may require

(5) The Registrar or the person authorised by him under sub-section (1) to audit the accounts of a co-operative society shall have power where necessary

(a) to summon at the time of his audit any officer, agent, servant or member of the society, past or present, who he has reason to believe can give valuable information in regard to transactions of the society or the management of its affairs; and

(b) to require the production of any book or document relating to the affairs of, or any cash or securities belonging to, the society by any officer, agent, servant, or member in possession of such books, documents, cash or securities and in the event of serious irregularities discovered during audit, to take them into custody

(6) If at the time of audit the accounts of a society are not complete, the Registrar or the person authorised by him under sub-section (1) to audit, may cause the accounts to be written up at the expense of the society

(7) Audit fee, if any, due from co-operative society shall be recoverable in the same manner as is provided in section 75

The Registrar, or any person authorised by general or special order in this behalf by him, may inspect a co-operative society. For the purpose of inspection, the Registrar or the person so authorised by him shall at all times have access to all books, accounts, papers, vouchers, securities, stock and other property of the society and may in the event of serious irregularities discovered during inspection take them into custody and shall have power to verify the cash balance of the society and subject to the general or special order of the Registrar to call a committee meeting and a general meeting. Every officer or member of the society shall furnish such information with regard to the working of the society as the Registrar or the person making such inspection may require.

(1) The Registrar may of his own motion or on the application of the majority of the committee or of not less than one-third of the members, hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a co-operative society

(2) The Registrar or the person authorised by him under sub-section (1) shall have the following powers, namely :

(a) he shall at all times have, for purpose of examination free access to the books, accounts, cash and other properties belonging to or in the custody of that society and may summon any person in possession or responsible for the custody of any such books, accounts, documents, securities, cash or other properties to produce the same at any place specified by him;

(b) he may, notwithstanding any rule or by-law specifying the period of notice for a general meeting of the society require the officers of the society to call a general meeting at such time and place at the headquarters of the society to consider such matter as may be directed by him; and where the officer of the society refuse or fail to call such a meeting he shall have power to call it himself;

(c) he may summon any person who is reasonably believed by him to have any knowledge of the affairs of the society to appear before him at any place at the headquarters of the society or any branch thereof and may examine such person on oath

(3) Any meeting called under clause (b) of sub-section (2) shall have all the powers of a general meeting called under the by-laws of the society and its proceedings shall be regulated by such by-laws

(4) The Registrar shall communicate a brief summary of the report of the inquiry to the society, the financing institution, if any, to which the society is affiliated and to the person or authority, if any, at whose instance .the inquiry is made

(1) The Registrar shall on the application of a creditor of a co-operative society inspect or direct some person authorised by him by order in writing in this behalf to inspect the books of the society:

Provided that no such inspection shall be made unless the applicant

(a) satisfies the Registrar that the debt is sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and

(b) deposits with the Registrar such sum as security for the costs of proposed inspections as the Registrar may require

(2) The Registrar shall communicate the result of any such inspection to the creditor

Where an inquiry is held under section 55, or an inspection is made under section 56, the Registrar may apportion the costs or such part of the costs as he may think fit, between the society, the members or creditor demanding an inquiry or inspection and the officers or former officers and the members or past members of the society :

Provided that

(a) no order of the apportionment of the costs shall be made under this section unless the society or the person liable to pay the costs thereunder has had reasonable opportunity of being heard;

(b) the Registrar shall state in writing under his own hand the grounds on which the costs are apportioned

(1) Any sum awarded by way of costs under section 57 may be recovered, on application to a magistrate having jurisdiction in the place where the person from whom the money is claimable actually and voluntarily resides or carries on business and such magistrate shall recover the same as if it were a fine imposed by himself

(1) If in the course of an audit inquiry, inspection or the winding up of a co-operative society it is found that any person who is or was entrusted with the organisation or management of such society or who is or has at any time been an officer or an employee of the society had made any payment contrary to this Act, the rules or the by-laws or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society the Registrar may of his own motion or on the application of the committee liquidator or any creditor inquire himself or direct any person authorised by him by an order in writing in his behalf to inquire into the conduct of such person:

Provided that no such inquiry shall be held after the expiry of six years from the date of any act or omission referred to in this sub-section

(2) Where an inquiry is made under sub-section (1), the Registrar may, after giving the person concerned an opportunity of being heard make an order requiring him to pay or restore the money or property or any part thereof with interest at such rate or to pay contribution and costs or compensation to such extent as the Registrar may consider just and equitable

(1) Notwithstanding anything contained in any law for the time being in force, if any dispute touching the constitution, management or the business of a co-operative society other than a dispute regarding disciplinary action taken by the society or its committee against a paid employee of the society arises

(a) among members, past members and persons claiming through members, past members and deceased members, or

(b) between a member, past member or person claiming through a member, past member or deceased member and the society, its committee or any officer, agent or employee of the society of liquidator, past or present, or

(c) between the society or its committee and any past committee, 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, deceased agent, or deceased employee of the society, or

(d) between the society and any other co-operative society, between a society and liquidator of another society or between the liquidator of one society and the liquidator of another society, such disputes shall be referred to the Registrar for decision and no court shall have jurisdiction to entertain any suit or other proceedings in respect of such dispute

(2) For the purposes of sub-section (1), the following shall be deemed to be disputes touching the constitution, management or the business of a co-operative society, namely:

(a) a claim by the society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not;

(b) a claim by a surety against the principal debtor where the society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor as a result of the default of the principal debtor, whether such debt or demand is admitted or not;

(c) any dispute arising in connection with the election of any officer of a society other than society mentioned in sub-section (1) of section 31

(3) If any question arises whether a dispute referred to the Registrar under this section is or is not a dispute touching the constitution, management or the business of a co-operative society, the decision thereon of the Registrar shall be final and shall not be called in question in any court.

(4)

(a) Notwithstanding anything contained in the Limitation Act, 1963, but subject to the specific provisions made in this Act, the period of limitation in the case of a dispute referred to the Registrar under sub-section (1) shall

(i) when the disputes relate to the recovery of any sum including interest thereon due to a co-operative society by a member thereof be computed from the date on which such member dies or ceases to be a member of the society;

(ii) save as otherwise provided in sub-clause (iii), when the dispute relates to any act or omission on the part of any of the parties referred to in clause (b) or clause (c) of sub-section (1), be six years from the date on which the act or omission with reference to which the dispute arose, took place;

(iii) when the dispute relates to a co-operative society which has been ordered to be wound up under section 63 or in respect of which an administrator has been appointed under section 32, be six years from the date of the order issued under section 63 or section 32, as the case may be;

(iv) when the dispute is in respect of an election of an officer of a co-operative society other than a society referred to in sub-section (1) of section 31, be one month from the date of the declaration of the result of the election

(b) The period of limitation in the case of any other dispute except those mentioned in the foregoing clause which are required to be referred to the Registrar under the last preceding section shall be regulated by the provisions of the Limitation Act, 1963, as if the dispute was a suit and the Registrar a civil court

(c) Notwithstanding anything contained in clauses (a) and (b), tite Registrar may admit a dispute after the expiry of the period of limitation, if the applicant satisfies the Registrar that he had sufficient cause for not referring the dispute within such period and the dispute so admitted shall be a dispute which shall not be barred on the ground that the period of limitation has expired

(1) The Registrar may, on receipt of the reference of dispute under Section 60,

(a) decide the dispute himself, or

(b) transfer it for disposal to any person who has been invested by the Lieutenant-Governor with powers in that behalf, or

(c) refer it for disposal to one arbitrator

(2) The Registrar may withdraw any reference transferred under clause (b) of sub-section (1) or referred under clause (c) of that sub-section and decide it himself or refer the same to another arbitrator for decision

(3) The Registrar or any other person to whom a dispute is referred for decision under this section may, pending the decision of the dispute, make such interlocutory orders as he may deem necessary in the interest of justice

(1) If a co-operative society is unable to pay its debts to a financing bank by reason of its members committing default in the payment of the moneys due by them, the financing bank may direct the committee of such a society to proceed against such members under section 60 and if the committee fails to do so within a period of ninety days from the date of receipt of such direction, the financing bank itself may proceed against such members in which case the provisions of this Act, the rules or the by-laws shall apply as if all references to the society or its committee in the said provisions were references to the financing bank

(2) Where a financing bank has obtained a decree or award against a society in respect of moneys due to it from the society, the financing bank may proceed to recover such moneys firstly form the assets of the society and secondly from the members to the extent of their debts due to the society

(1) If the Registrar, after an inquiry has been held under section 55, or an inspection has been made under Section 56, or on receipt of an application made by not less than three-fourths of the members of a co-operative society, is of the opinion that the society ought to be wound up, he may issue an order directing it to be wound up

(2) The Registrar may of his own motion make an order directing the winding up of a co-operative society

(a) where it is a condition of the registration of the society that the society shall consist of at least ten members and the number of members has been reduced to less than ten, or

(b) where the co-operative society has not commenced working or has ceased to function in accordance with co-operative principles

(3) The Registrar may cancel an order for the winding up of a co-operative society at any time, in any case where, in his opinion, the society should continue to exist

(4) A copy of such order shall be communicated by registered post to the society and to the financing institutions, if any, of which the society is a member

(5) Notwithstanding anything contained in this section no co-operative bank shall be wound up except with the previous sanction in writing of the Reserve Bank

Notwithstanding anything to the contrary contained in this Act, the Registrar shall make an order for winding up of a Co-operative Bank, if so required by the Reserve Bank in the circumstances mentioned in section 13D of the Deposit Insurance Corporation Act, 1961

Where a Co-operative Bank being an insured Bank within the meaning of the Deposit Insurance Corporation Act, 1961, is wound up, or taken into liquidation, and the Deposit Insurance Corporation has become liable to the depositors of the insured Bank under sub-section (1) of section 16 of that act, the Deposit Insurance Corporation shall be reimbursed by the liquidator or such other person in the circumstances to the extent and in the manner provided in section 21 of the Deposit Insurance Corporation Act, 1961.

(1) Where the Registrar has made an order under section 63 for the winding up of a co-operative society, the Registrar may appoint a liquidator for the purpose and fix his remuneration

(2) A liquidator shall on, appointment, take into his custody or under his control all the property, effects and actionable claims to which the society is or appears to be entitled and shall take such steps as he may deem necessary or expedient, to prevent loss or deterioration of, or damage to such property, effects and claims. He may carry on the business of the society so far as may be necessary with the previous approval of the Registrar

(3) Where an appeal is preferred under Section 76, an order of winding up of a co-operative society made under Section 63 shall not operate thereafter until the order is confirmed in appeal :

Provided that the liquidator shall continue to have custody or control of the property, effects and actionable claims mentioned in sub-section (2) and have authority to take the steps referred to in that sub-section.

(4) Where an order of winding up of a co-operative society is set aside in appeal, the property, effects and actionable claims of the society shall revest in the society

(1) Subject to any rules made in this behalf, the whole of the assets of a co- operative society, in respect of which an order for winding up has been made, shall vest in the liquidator appointed under section 66 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise.

(2) Such liquidator shall also have power, subject to the control of the Registrar

(a) to institute and defend suits and other legal proceedings on behalf of the co-operative society by the name of his office;

(b) to determine from time to time the contribution (including debts due and costs of liquidation) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the society;

(c) to investigate all claims against the co-operative society and subject to the provisions of this Act, to decide questions of priority arising between claimants;

(d) to pay claims against the co-operative society including interest up to the date of winding up according to their respective priorities, if any, in full or rateably, as the assets of the society may permit, the surplus, if any, remaining after payment of the claims being applied in payment of interest from the date of such order of winding up at a rate fixed by him but not exceeding the contract rate in any case;

(e) to determine by what persons and in what proportions the costs of the liquidation are to be borne;

(f) to determine whether any person is a member, past member or nominee of deceased member;

(g) to give such directions in regard to the collection and distribution of the assets of the society as may appear to him so be necessary for winding up the affairs of the society;

(h) to carry on the business of the society to far as may be necessary for the beneficial winding up of the same;

(i) to make any compromise or arrangement with creditors or persons claiming to be creditors or having or alleging to have any claim, present or future, whereby the society may be rendered liable;

(j) to make any compromise or arrangement with any person between whom and the society there exists any dispute and to refer any such dispute to arbitration;

(k) after consulting the members of the society, to dispose of the surplus, if any, remaining after paying the claims against the society, in such manner as may be prescribed; and

(l) to compromise all calls or liabilities to calls and debts and liabilities capable of resulting in debts, and all claims, present or future, certain or contingent, subsisting or supposed to subsist between the society and a contributory or alleged contributory or other debtor or person apprehending liability to the co-operative society and all questions in any way relating to or affecting the assets or the winding up of the society on such terms as may be agreed and take any security for the discharge of any such call, liability, debt or claim and give a complete discharge in respect thereof

(3) When the affairs of a co-operative society have been wound up, the liquidator shall make a report to the Registrar and deposit the records of the society in such place as the Registrar may direct

Notwithstanding anything contained in the Provincial Insolvency Act, 1920, the contribution assessed by a liquidator shall rank next to debts due to the Government or to any local authority in order of priority in solvency proceedings

(1) The Registrar may after considering report of the liquidator made to him under sub-section (3) of Section 67 order the registration of the co-operative society to be cancelled.

(2) An order passed under sub-section (1) shall be communicated by registered post to the president of the society and to the financing institutions, if any, of which the society was a member

Notwithstanding anything contained in Chapter VIII or any other law for the time being in force, but without prejudice to any other mode of recovery provided in this Act, the Registrar or any person subordinate to him empowered by the Registrar in this behalf may on the application of a cooperative society, make an order directing the payment of any debt or outstanding demand due to the society by any member or past or deceased member, by sale of the property or any interest therein, which is subject to a charge under section 36 :

Provided that no order shall be made under this section unless the member, past member or the nominee, heir or legal representative of the deceased member, has been served with a notice in the manner prescribed

Every decision, award or order duly passed by the Registrar or arbitrator or Tribunal under section 29, section 30, section 59, section 61, section 70, section 76, section 78 or section 79, shall if not carried out,

(a) where the decision, award or order provides for the recovery of money, be executed according to the law for the time being in force relating to the recovery of land revenue :

Provided that an application for the recovery of any sum in the manner aforesaid shall be made to the Collector and shall be accompanied by a certificate signed by the Registrar or by any person subordinate to him and empowered by the Registrar in this behalf; and

(b) in any other case be executed by the Registrar or any person subordinate to him and empowered by the Registrar in this behalf, in the same manner as is provided in the case of a civil court by the Code of Civil Procedure, 1908

The orders of the liquidator under section 67 shall be executed according to the Act and under the rules for the time being in force for the recovery of arrears of land revenue

Where the Registrar is satisfied that a party to any reference made to him under section 60 with intent to defeat or delay the execution of any decision that may be passed thereon is about to

(a) dispose of the whole or any part of the property, or

(b) remove the whole or any part of the property from the local limits of the jurisdiction of the Registrar, the Registrar may, unless adequate security is furnished, direct the conditional attachment of the said property or such part thereof as he thinks necessary. Such attachment shall be executed by a civil court having jurisdiction in the same way as an attachment order passed by itself and shall have the same effect as such an order :

Provided that the powers of the Registrar under this section shall not be delegated to any officer below such rank as may be prescribed.

The Registrar or any person empowered by him in this behalf shall be deemed, when exercising any powers under this Act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step-in-aid of such recovery, to be civil court for the purposes of article 136 of the Schedule to the Limitation Act, 1963.

(1) All sums due from a co-operative society, or from an officer or member or past member of a co-operative society as such, to Government, including any costs awarded to Government under a provision of this Act, may on a certificate issued by the Registrar in this behalf, be recovered in the same manner as arrears of land revenue.

(2) Sums due from a co-operative society to Government and recoverable under sub-section (1), may be recovered, firstly from the property of the society, secondly, in the case of a society the liability of the members of which is limited from the members, past members or the estates of deceased members, subject to the limit of their liability, and thirdly, in the case of other societies, from the members, past members or the estates of the deceased members :

Provided that the liability of past members and the estates of deceased members shall in all cases be subject to the provisions of section 27.

(1) Subject to the provisions of section 77, an appeal shall lie under this section against

(a) an order of the Registrar made under sub-section (2) of section 9 refusing to register a society;

(b) an order of the Registrar made under sub-section (4) of section 11 refusing to register an amendment of the by-laws of a co-operative society;

(c) an order of the Registrar made under sub-section (1) of section 16;

(d) a decision of a co-operative society refusing to admit any person as a member of the society who is otherwise duly qualified for membership under the by-laws of the society;

(e) a decision of a co-operative society expelling any of its members;

(f) an order of the Registrar removing the committee of a co-operative society made under Section 32 ;

(g) an order made by the Registrar under section 57 apportioning the costs of an enquiry held under section 55 or an inspection made under section 56;

(h) any order of surcharge under section 59;

(i) any decision or award made under section 61;

(j) an order made by the Registrar under section 63 directing the winding up of a co-operative society;

(k) any order made by the liquidator of a co-operative society in exercise of the powers conferred on him by section 67 ;

(1) any order made under section 73

(2) An appeal against any decision or order under sub-section(1)shall be made within sixty days from the date of the decision or order

(a) if the decision or order falls under clause (g), (h), (i) of (i) or sub-section (1) to the Tribunal;

(b) if the decision or order falls under clause (f), to the Lieutenant- Governor ;

(c) in any other case, to the Lieutenant-Governor or the Registrar according as the decision or order was made by the Registrar or any other person

(3) No appeal shall lie under this section from any decision or order made by the Registrar in appeal

Notwithstanding anything contained in this Act, where with the previous sanction in writing or on requisition of the Reserve Bank,

(i) a Co-operative Bank is being wound up; or

(ii) in respect of which a scheme of amalgamation or reorganisation is given effect to; or

(iii) in respect of which an order for the supersession of the committee and the appointment of an administrator therefor has been made, no appeal, revision or review there against shall lie or be permissible, and the sanction or requisition of the Reserve Bank shall not be liable to be called in question

(1) The Lieutenant-Governor shall constitute a Tribunal to be called the Delhi Co-operative Tribunal to exercise the functions conferred on the Tribunal by or under this Act.

(2) The Tribunal shall consist of not more than three members possessing such qualifications as may be prescribed.

(3) Any vacancy in the membership of the Tribunal shall be filled by the Lieutenant-Governor.

(4) Subject to the previous approval of the Lieutenant-Governor, the Tribunal shall frame regulations consistent with the provisions of this Act and the rules made thereunder for regulating its procedure and the disposal of its business.

(5) The regulations made under sub-section (4) shall be published by the Lieutenant-Governor in the Delhi Gazette.

(6) The Tribunal may call for and examine the record of any proceedings, in which an appeal lies to it, for the purpose of satisfying itself as to the legality or properiety of any decision or order passed and if in any case it shall appear to the Tribunal that any such decision or order should be modified, annulled or reversed, the Tribunal may pass such order thereon as it may deem fit.

(7) An order passed in appeal under section 76 or in revision under sub- section (6) of this section or in review under section 79 by the Tribunal shall be final and conclusive, and shall not be called in question in any civil or revenue court

Explanation. The Tribunal hearing an appeal under this Act shall exercise all the powers conferred upon an appellate court by section 97 of, and Order XLI of the First Schedule to/the Code of Civil Procedure, 1908.

(1) The Tribunal may either on the application of the Registrar, or on the application of any party interested review its own order in any case, and pass in reference thereto such order as it thinks just.

Provided that no such application made by the party shall be entertained unless the Tribunal is satisfied that there has been the discovery of new and important matter of evidence, which after the exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when its order was made or that there has been some mistake or error apparent on the face of the record, or for any other sufficient reason :

Provided further that no such order shall be varied or revised unless notice has been given to the parties interested to appear and be heard in support of such order.

(2) An application for review under sub-section (1) by any party shall be made within ninety days from the date of communication of the order of the Tribunal

Subject to the provisions of section 77, the Lieutenant-Governor may, suo moto or on the application of a party to a reference, call for and examine the record of any proceedings in which no appeal lies to the Lieutenent-Governor under section 76 (not being any proceedings in which an appeal lies to the Tribunal) for the purpose of satisfying himself as to the legality and propriety of any decision or order passed and if in any case it shall appear to him that any such decision or order should be modified, annulled or revised, he may pass such order thereon as he may deem fit

Where an appeal is made under section 76 or where Tribunal or Lieutenant- Governor calls for the record of a case under section 78 or section 80, the appellate authority or the Tribunal or Lieutenant-Governor, as the case may be, may, in order to prevent the ends of justice being defeated, make such interlocutory order, including an order of stay, pending the decision of the appeal or revision as such authority or the Tribunal or Lieutenant-Governor may deem fit.

(1) Any person other than a co-operative society carrying on business under any name or title of which the word "co-operative" or its equivalent in any Indian language, is part, without the sanction of the Lieutenant Governor shall be punishable with fine which may extend to two hundred rupees and in the case of a continuing breach with a further fine which may extend to five hundred rupees for every day during which the breach is continued after conviction for the first such breach.

(2) Any member or past member or the nominee, heir or legal representative of a deceased member of a co-operative society who contravenes the provisions of sections 36 and 37 by disposing of any property in respect of which the society is entitled to have a first charge under that section or do any other act to the prejudice of such claim, shall be punishable with fine which may extend to five hundred rupees.

(3) A co-operative society or an officer or member thereof wilfully making a false return or furnishing false information, or any person wilfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions of this Act or wilfully not furnishing any information required from him by a person authorised in this behalf under the provisions of this Act, shall be punishable with fine which may extend to two hundred rupees.

(4) Any employer who, without sufficient cause, fails to pay to a cooperative society the amount deducted by him under section 44 within a period of fourteen days from the date on which such deduction is made shall, without prejudice to any action that may be taken against him under any law for the time being in force be punishable with fine which may extend to five hundred rupees.

(5) Any officer or custodian who wilfully fails to hand over custody of books, records, cash, security and other property belonging to a co-operative society of which he is an officer or custodian, to a person entitled under sections 33, 53, 54, 55 or 66 shall be punishable with fine which may extend to two hundred rupees and in the case of a continuing breach with a further fine which may extend to five hundred rupees for every day during which the breach is continued after conviction for the first such breach.

(6) Any person who fraudulently acquires or abets in the acquisition of any such property which is the subject to a charge under sections 36 and 37 shall be punishable with fine which may extend to two hundred rupees

(1) No court inferior to that of a magistrate of the first class shall try any offence under this Act.

(2) No prosecution shall be instituted under this Act without the previous sanction of the Registrar and such sanction shall not be given without giving to the person concerned a reasonable opportunity to represent his case

Every co-operative society shall have an address registered in the manner prescribed to which all notices and communications may be sent, and shall send to the Registrar notice of every change thereof within thirty days of such change.

Every co-operative society shall keep a copy of this Act, the rules and its by-laws and also a list of its members, open to inspection free of change at all reasonable rimes at the registered address of the society

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, came into operation.

Notwithstanding anything contained in this Act, the Lieutenant-Governor may, by general or special order and subject to such conditions, if any, as he may impose, exempt any society or class of societies from any of the requirements of this Act as to registration

The Lieutenant-Governor may, by general or special order, to be published in the Delhi Gazette, exempt any co-operative society or any class of cooperative societies from any of the provisions of this Act, or may direct that such provisions shall apply to such societies of class or societies with such modifications as may be specified in the order

Any person appointed as liquidator under the provisions of this Act or the rules shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.

No suit shall be instituted against a co-operative society or any of its officers in respect of any act touching the business of the society until the expiration of three 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.

The provisions of the Companies Act, 1956 shall not apply to co-operative Societies

(1) Every society now existing which has been registered under the Co- oparative Credit Societies Act, 1904 or under the Co-operative Societies Act, 1912, or under the Bombay Co-operative Societies Act, 1925 as in force in the union Territory of Delhi, shall be deemed to be registered under the corresponding provisions of the Act, and its by-laws shall, so far as the same are not inconsistent with the express provisions of this Act, continue in force until altered or rescinded.

(2) All appointments, rules and orders made, notifications and notices issued and suits and other proceedings instituted under the said Acts shall, so far as they are consistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made cancelling registration of a society shall be deemed, unless the society has already been finally liquidated, as an order issued under section 63 for its being wound up

(1) Save as provided in this Act, no civil or revenue court shall have any jurisdiction in respect of

(a) the registration of a co-operative society or its by-laws or of an amendment of a by-law;

(b) the removal of a committee;

(c) any dispute required under section 60 to be referred to the Registrar; and

(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

(3) Save as provided in this Act, no order, decision or award made under this shall be questioned in any court on any ground whatsoever

(1) In exercising the functions conferred on him by or under this Act, the Registrar, the arbitrator or any other person deciding a dispute under section 61 and the liquidator of a co-operative society or person entitled to audit, inspect or hold an inquiry and the Tribunal, shall have all the powers of a civil court, while trying a suit under the Code of Civil Procedure, 1908, in respect of the following matters, namely

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of any document;

(c) proof of facts by affidavits; and

(d) issuing commissions for examination of witnesses.

(2) In the case of an affidavit, any officer appointed by the Registrar, the arbitrator or any other person deciding a dispute and the liquidator or the Tribunal, as the case may be, may administer the oath to the deponent

No suit, prosecution or other legal proceedings shall lie against the Registrar or any person subordinate to him or acting on his authority in respect of anything in good faith done or purporting to have been done under this Act

(1) The Lieutenant-Governor shall as soon as may be after commencement of this Act, constitute a common service comprising of officers and other employees of different classes of co-operative societies and shall determine the number and designation of such officers and other employees.

(2) The Lieutenant-Governor shall make rules regulating the qualifications, remuneration, allowances, recruitment and other conditions of service of such officers and other employees of the co-operative societies

(1) The Lieutenant-Governor may, for any co-operative society or class of co-operative societies, make rules to carry out the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any following matters, namely

(i) the maximum number of shares or portion of the capital of a cooperative society which may, subject to provisions of section 6, be held by a member;

(ii) the form to be used and the conditions to be complied within the making of applications for the registration of a society and the procedure in the matter of such applications;

(iii) the procedure and conditions for change in the form and extent of the liability of a co-operative society :

(iv) The matters in respect of which the society may or shall make bylaws and for the procedure to be followed in making, altering and abrogating by-laws and the conditions to be satisfied prior to such making, alteration or abrogation;

(v) the conditions to be complied with by persons applying for admission or admitted as members, for the election admission of members, and for the payment to be made and the interest to be acquired before the exercise of the right of membership;

(vi) the manner in which funds may be raised by means of shares and debentures or otherwise;

(vii) for general meeting of the members and for the procedure at such meetings and the powers to be exercised by such meeting;

(viii) the prohibitions and restrictions subject to which societies may transact business with the persons who are not members;

(ix) the proportion of individuals and societies in the constitution of the committee of management and the general body of a co-operative society of which another co-operative society is a member;

(x) the determination of co-operative societies or class of co-operative societies for the purpose of sub-section (1) of section 31, and subject to the provisions of the said action, the election and nomination of members of committees, the appointment or election of officers and the suspension and removal of the members and other officers, and for the powers to be exercised and the duties to be performed by the committees and other officers;

(xi) the area of agricultural land, the conditions required to be fulfilled for the purpose of sub-section (6) of section 31;

(xii) the appointment and regulation of work entrusted to person or persons replacing the committee in the pursuance of section 32;

(xiii) prohibiting a co-operative society from electing a defaulting member on its committee or to be its representative;

(xiv) the accounts and books to be kept by a co-operative society and the audit of such accounts and the charges, if any, to be made for such audit, and for the periodical publication of a balance sheet showing the assets and liabilities of a co-operative society;

(xv) the returns to be submitted by a co-operative society to the Registrar, the persons by whom and the form in which such returns shall be submitted and in case of failure to submit any such returns for the levy of expenses of preparing it;

(xvi) the persons by whom and the form in which copies of the entries in books of societies may be certified and for the charges to be levied for the supply of such copies;

(xvii) the formation and maintenance of a register of members and where the liability of the members is limited by shares, of a register of shares ;

(xviii) the appointment of an arbitrator to decide disputes;

(xix) the procedure to be followed in proceedings before the Registrar, arbitrator or other persons deciding disputes including the appointment of a guardian for a party to the dispute who is a minor or who, by reason of unsoundness of mind or mental infirmity is incapable of protecting his interests, and the levy of the expenses relating to such proceedings;

(xx) the withdrawal and expulsion of members and for the payments, if any, to be made to members who withdraw or are expelled and for the liability of past members and of the estates of deceased members;

(xxi) the mode in which the value of a deceased member's share or interest shall be ascertained and for the nomination of a person to whom such share or interest may be paid or transferred;

(xxii) the payments to be made and conditions to be complied with by members applying for loans, the period for which any loans may be made and the maximum amount which may be lent, to any member;

(xxiii) the formation and maintenance of reserve funds and other funds and the objects to which such funds may be applied, and for the investment of any funds under the control of a co-operative society;

(xxiv) the extent to which a co-operative society may limit the number of its members;

(xxv) the conditions under which profits may be distributed to the members of a co-operative society with unlimited liability, and the maximum rate of dividend which may be paid by co-operative societies;

(xxvi) the calculation and writing off of bad debts by co-operative societies;

(xxvii) the procedure to be followed by a liquidator appointed under section 66 in respect of provisions of section 67;

(xxviii) the procedure to be followed in presenting and disposing of appeals under this Act;

(xxix) the form of orders referred to in sections 71 and 72;

(xxx) qualifications of the members of the Tribunal;

(xxxi) the issue and service of processes and for proof of service thereof;

(xxxii) the manner of effecting attachment;

(xxxiii) the custody, preservation and sale of property under attachment;

(xxxiv) the investigation of claims by persons other than the defaulter to any right or interest in the attached property, and for the postponement of the sale pending such investigation;

(xxxv) the immediate sale of perishable articles;

(xxxvi) the inspection of documents in the office of the Registrar or of any other officer or authority and the levy of fees for granting certified copies of the same;

(xxxvii) the terms and conditions on which the Central Government may make share capital contribution or give assistance, financial or other, to societies and the terms and conditions on which the Central Government may guarantee the payment of the principal or interest on debentures issued by societies or loans raised by them;

(xxxviii) the manner in which funds may be raised by a society or a class of societies by means of shares or debentures or otherwise and the quantum of funds so raised;

(xxxix) for giving reasonable notice of the charge under sections 36 and 37;

(xl) qualifications, remuneration, allowances and recruitment and the conditions of service of officers and other employees of a society or class of societies; and

(xli) the method of communicating or publishing any order, decision or award required to be communicated or published under this Act or the rules

(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification to the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule

On the day on which the Delhi Co-operative Societies Act, 1972 comes into force the Bombay Co-operative Societies Act, 1925 as in force in the Union Territory of Delhi shall stand repealed :

Provided that the repeal shall not affect

(a) the previous operation of the Act so repealed or anything duly done or suffered thereunder; or

(b) any right, privilege, obligation or liability acquired, accrued or incurred under the Act so repealed; or

(c) any penalty, forfeiture or punishment incurred in respect of any offence committed against the Act so repealed; or

(d) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid, and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture or punishment may be imposed as if that Act had not been repealed

In exercise of the powers conferred by Section 71 of the Bombay Cooperative Societies Act, 1925, as extended to the State of Delhi read with Notification No. 8/1/49- Judl., dated the 21st February, 1950, of the Government of India, Ministry of Home Affairs, the Chief Commissioner of Delhi is pleased to make the following rules to regulate the working of the Cooperative Societies in the State of Delhi.

(1) These rules may be called the Delhi Co-operative Societies Rules, 1950.

(2) Definition. In these rules unless there is anything repugnant to the subject or context, the expression : (i) the Act means the Bombay Co-operative Societies Act, 1925 as extended to the State of Delhi; (ii) "section" means a section of the Act; and (iii) words and expressions defined in the Act and used in these rules shall have the meanings assigned to them in the Act.

(1) Every application for the registration of a society under, sub-section (1) of Section 9 shall be in the form of Schedule A hereto annexed.

(2) In addition to the copy of by-laws which is required to accompany the application for registration under sub-section (3) of Section 9, two other copies of the proposed by-laws of the society shall be forwarded therewith.

(3) In case where one of the members of the society to be registered is a registered society, a member of the Managing Committee of such registered society shall be authorised by such Committee by resolution to sign. the application for registration and the by-laws on its behalf and a copy of such resolution shall be appended to the application.

If the Registrar refuses to register the society or its by-laws under section 10, he shall communicate to the applicant his reasons for doing so.

(1) Matters in respect of which a society shall make by-laws are the following :

(a) the objects of the society, the purpose to which its funds are applicable, occupation of its members, if the membership is proposed to be restricted and the area for which it is to be registered;

(b) the objects of the society, the purposes to which its funds are applicable, qualifications for membership, the terms of admission of members and their rights and liabilities, the consequences of default in payment of any sum due by a member and in the case of credit societies, the conditions on which loans may be granted, the maximum amount that may be lent to a member and the rate of interest and system of calculation of interest and, in case of non-credit societies the mode of conducting business, purchase, sale, stock taking and other like matters;

(c) withdrawal and expulsion of members;

(d) transfer of the shares or interest of members;

(e) the mode of holding meeting, and subject to the provisions of rules 5 and 6, the manner of making, altering and abrogating by-laws

(f) the mode of appointment and removal of members of the Committee and of the officers, if any, subject to rule 59 and the duties and powers of the Committee and officers

(g) the manner in which capital may be raised;

(h) the mode of custody and of investment of funds, and subject to rules 15, 18,20 and 22, the mode of keeping accounts; and

(i) the distribution of its profits.

(2) Every society may make by-laws in respect of any other matters incidental to the management of its business.

When a society has been registered, the by-laws submitted under sub- section (3) of section 9 shall, subject to any modification approved by the Registrar, and adopted at a general meeting, having a quorum, by a majority of not less than two-thirds of the members present at such meeting, become the by- laws of the society after they have been duly stamped with official seal of the Registrar.

By-laws may be made, altered or abrogated by a resolution passed at a general meeting of the society; provided that,

(1) due notice of any proposal to make, alter, abrogate the by-laws is given in accordance with the by-laws

(2) the resolution is passed by not less than two-thirds of the members present at the general meeting at a quorum and a copy of the resolution is forwarded to the Registrar within a period of three months from the date of meeting. A copy of the existing by-laws so marked to show the alterations proposed to be made with a certificate that the provisions of clauses (1) and (2) of this rule have been fully complied with and three copies of the proposed amendments signed by two officers of the society, shall be attached to the copy of resolution; and

(3) the making of the alteration or abrogation of the by-laws is approved and registered by the Registrar.

Notwithstanding anything contained in these rules or by-laws of a society as to the manner of summoning a general meeting and notice to be given for the said purpose, any person authorised in this behalf by the Registrar may call a special general meeting; for which requisition has been made by the Registrar under sub-section (2) of section 13, in such manner and at such time and place as the Registrar may direct. A special general meeting so convened shall have powers to transact all business which can be transacted at the Annual General Meeting under the by-laws framed by the society and other business as is specially mentioned in the requisition made by the Registrar.

Every society shall, from time to time, for in a general meeting the maximum liability which it may incur in the loans and deposits from non- members. The maximum so fixed shall be subject to the sanction of the Registrar who may at any time reduce it for reason to be communicated by him to the society in writing, and may prescribe a period not being less than four months within which the society shall comply with his orders. No such society shall receive any loan or deposits from a non-member which will make its liability to non-members exceed the limit sanctioned by the Registrar.

The shares of a society for a loan shall not be hypothecated to society by its members as a security for a loan.

If a member resigns his membership of a society, or is removed under Rule 51 ,or dies, the sum representing the value of his shares or interest in the capital of the society to be paid to him or his nominee, heir or legal representative shall be ascertained as under :

(i) In the case of society with unlimited liability, it shall be the actual amount received by the society in respect of such share or interest.

(ii) In the case of society with limited liability, it shall be the amount arrived at by a valuation based on the final position of his society as shown in the last audited balance sheet preceding the resignation, removal or death of such member provided that it shall not exceed the actual amount received by the society in respect of such shares or interest.

Agricultural credit societies shall not accept deposits which are not fixed for a period of at least two months, except savings deposit in such societies as have made in their by-laws provision for encouragement of thrift among their members by the opening of the savings accounts.

No society shall make any loan to a member on a bond secured by suretyship of a non-member; provided that the Registrar may for a special reason, exempt any society by name from the operation of this rule.

Losses may be written off against firstly the bad debt fund and then the reserve fund of any society, and in the case of limited societies, if losses exceed the bad debt fund and the reserve fund the balance remaining may be written off against the share capital of the society:

Provided that (i) no losses shall be written off without a sanction of a general meeting; (ii) before any such losses are so written off, the society if it is affiliated and indebted to a Central Bank, shall obtain the approval of the Central Bank in writing which approval shall be given after consultation with the Assistant Registrar and shall be countersigned by him. If the society is not so affiliated or if the society is so affiliated and is not indebted to the Central Bank, it shall first obtain the approval of the Assistant Registrar in writing; and (iii) if the society itself is a Central Bank, the approval of the Registrar, shall first be obtained. Provided further that the Assistant Registrar or the Registrar, as the case may be, may while according or countersigning the approval impose such condition as to restoration of part or whole of the amount written off to the Reserve Fund from out of future profits, as he deems fit. Explanation. "Losses" include losses on account of bad debts also.

For the purpose of sub-section (1) of section 34, a loan also means and includes a deposit made by one society with another society.

(1) Every credit society shall keep the following accounts and books, viz.

(a) a register of members including persons nominated under section 27;

(b) a register of shares and debentures (where capital is raised by shares or debentures);

(c) a share transfer register (where capital is raised by shares (debentures);

(d) cash account;

(e) members loan account;

(f) deposit account;

(g) loan register;

(h) interest account;

(i) expense account;

(j) bank account;

(k) minute book, recording the proceedings of general meetings;

(i) minute book, recording the proceeding of the Committee;

(m) register of members' creditworthiness; and

(n) such other accounts and books as may from time to time be prescribed by the Registrar :

Provided the Registrar may exempt any society or class of societies from the operation of clause

(m) mentioned above.

(2) Societies order than credit societies shall keep the accounts and books mentioned in clauses (a), (k), (d) and (1) of sub-rule and such other accounts and books as may be approved from time to time, required by the Registrar.

(3) The Registrar may by order in writing, direct any society to get any or all the accounts and books required to be kept by it under sub-rules (1) and (2) written upto such date and in such form and within such time as he prescribes.

For the purpose of Section 31 copies of documents or entries in the books of a society may be certified by any officer of the society.

Members of co-operative societies or the public may be permitted on payment of a fee of rupee one for each occasion of inspecting, to inspect for any lawful purpose any of the following documents filed in the office of the Registrar of Co-operative Societies and may obtain certified copies on payment of following fees:

The Registrar may require any society to submit any statement and any periodical return of receipts and disbursement on such dates and in such form as he may prescribe. Every housing society shall submit a property register to the Registrar on such dates and in such form as he may prescribe.

In case of failure by any society to submit any statement of return mentioned in rule 18 or to maintain any accounts or books mentioned in rule 15 or to get such accounts or books written according to the direction given by the Registrar under rule 15, Registrar may depute an officer of the Provincial Government or the Delhi Audit Fund or any Registered Accountant to prepare the necessary statement or return or account or books at the expense of the society. Such expenses shall be recoverable from the society in the manner specified in section 65.

All registered societies classified by the Registrar as Central Banks or as Urban Banks with a working capital of more than Rs. 50,000 shall submit to that officer a quarterly finance statement in the form prescribed by Government for the quarter ending February 28th, May 31st, August 31st and November 30th not later than March 15th, June 15th, September 15th and December 15th respectively.

All societies which obtain any portion of their working capital by deposit shall maintain such fluid resources as may from time to time be prescribed by the Registrar.

On or before July 15th of each year, the Committee of every society shall prepare an annual balance sheet, showing : (a) the profit and loss, (b) the receipts and expenditure of the previous financial year, and (c) the assets and liabilities as they stood on June 30th. This balance sheet shall be open to the inspection of any member during office hours at the office of the Society and a copy thereof shall be submitted before July 15th to the Inspector, Co-operative Societies incharge of the society.

The name and address of every person nominated under section 27 and any revocation or variation of such nomination shall be entered in the register kept under rule 15(a).

A member may by writing under his hand deposited with the society during his life-time, or by statement signed by him in the register of members of the society nominate any person or persons to whom under section 17 his share or interest in the society or so much thereof as may be specified in such nomination, shall be paid or transferred on his death, but, no member may nominate more than one person in societies with share capital unless he holds more than one share and in any case unless the amount to be paid to such nominee, whether by way of whole shares or by fixed proportion of the amount available for transfer, as the case may be, is duly specified when the nominees are appointed. The nominee or nominees may become members only if admitted by the society in accordance with its by-laws. (2) A nomination so made may be revoked or varied by another nomination similarly made.

In calculating the profits of society for the year, all accrued interest which is overdue shall be deducted from the gross profits of the year before the net profits are arrived at. All accrued interest, that has been so deducted from the profits of the year and is actually recovered during the subsequent year, may be added to the profits of the subsequent year.

No registered society shall distribute any bonus on shares beyond the dividend declared under section 31.

(1) No society shall pay its shareholders a dividend exceeding 8 1/4% in any year on the paid-up share capital standing in the same of each shareholder.

(2)

(a) No Resource or General Society shall without the previous written sanction of the Registrar, pay to its shareholder a dividend exceeding 6 1/4% (inclusive of bonus, if any) in any year on the paid-up share capital standing in the name of each shareholder.

(b) Such society may credit in any year a sum not exceeding 2 per cent on the paid-up share capital to a fund called the "Dividend Equalisation Fund" until the total amount in such fund amounts to 6 1 /4% of the paid-up share capital. Except for the purpose of paying a dividend no withdrawals from such fund shall be made without the previous written sanction of the Registrar. No society shall declare dividend at a rate exceeding that recommended by its Managing Committee or Board of Directors, as the case may be.

Any distribution of the remaining balance of profits under section 40 and after the distribution of dividend under section 38, shall be in accordance with the by-laws of the society regarding such distribution. It shall be in proportion to the wage earned by each member in the case of a Producer's Society, and to the amount of goods purchased by each member or where it is so provided in the by-laws, by each member or customer in the case of a Customer's Society. It shall also be in proportion to the amount of rent paid by each member in the case of a Housing Society, and in the case of a Resource Society may be in proportion to the goods obtained or sold through the society by each member, or to the loans borrowed from, and the deposit made with the society by each member.

(a) Without the sanction of the Registrar, no part of the funds of a registered society shall be divided, by way of bonus or dividend or otherwise amongst its members in any year unless the entire expenditure incurred by such society has been debited in the annual profit and loss account before the net profit has been calculated :

Provided that any loss or portion of loss on account of bad debts written off during the year may not be so deducted if it be deducted with the sanction of the Registrar from the Bad Debts Fund or the Reserve Fund.

(b) No dividend shall be paid by any society while any claim due from the society to a depositor or lender remains unsatisfied.

No society shall contribute any money towards the expenses of any cooperative conference unless such conference is held under the auspices of a society which is authorised by the by-laws to hold such conference. The society holding such conference shall keep separate accounts of its income and expenditure due to such conference and such account shall be open to audit by the Registrar or the persons authorised by him under section 22.

With the previous sanction of the Registrar any society may invest its funds, or a portion thereof :

(a) in the shares of the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934,

(b) in Government of India loans and securities,

(c) in the purchasing of leasing of land or buildings, and

(d) in the construction of buildings provided that the purchase of such land or the construction of such building, is likely to be advantageous to the society in the conduct of its business.

The reserve fund of any society may be utilised in the business of the society, or be invested or deposited in any of the ways mentioned in clauses (a), (b), (c) and (d) of section 31. The Registrar may for reasons to be communicated in writing by him to the society by general or special order, direct that the latter course be adopted. In the case of a society constituted with the object of co-operative housing on co-partnership tenancy basis the reserve fund may be utilised for expenditure in the maintenance, repair and renewal of the buildings of the society.

The fund created by any registered society for the purpose of constructing buildings shall be called "Building Fund". The amount of such fund may, when it is not utilised for the construction of buildings, be used in the business of a society or be invested or deposited in the same manner and subject to the same conditions as the reserve fund of society is permitted to be used, invested or deposited under the Act and these rules.

The Registrar may levy audit fee on all or any type of societies at such rates as may be fixed by him from time to time. The Registrar shall employ the proceeds of such audit fees in maintaining a staff to audit the accounts of and supervise the societies. Such audit fees are recoverable under Section 65.

When a dispute has been referred to the Registrar under section 54, the Registrar or his nominee shall issue a notice to all parties and unless either of the parties desires within 15 days of the issue of such notice that the matter be referred to arbitration, shall proceed to decide the dispute himself. When either of the parties desires that the matter be referred to arbitration, the Registrar (or his nominee) shall call on each party to nominate its arbitrator within 15 days, and to send a statement signed by the proposed arbitrator, about his willingness to serve as an arbitrator. When there are more persons than one on each side, the principal party on each side will have the right to nominate the arbitrator. In such case the Registrar will decide who is the principal party and his decision shall be final. When either of the parties fails to make a nomination within the period aforesaid, the Registrar may nominate an arbitrator on behalf of such party. The Registrar or his nominee will act as Chairman of the Committee of the Arbitrators. He will fix the date and place of hearing the dispute and carry on the necessary correspondence in connection with the disposal of the case. When any dispute is referred to the Registrar's nominee or to the arbitrators for decision and is not decided by them within two months or such further period as the Registrar may allow, the Registrar may decide the dispute himself or refer again to his nominee for decision.

The Registrar may appoint any person to perform the duties of his nominee for disputes arising in anyone or more co-operative societies within any area specified in the order, for a period to be specified in the order. Such period shall not ordinarily exceed one year but may be extended by further special order for further period not exceeding one year at a time.

The Registrar or his nominee and the arbitrators shall have power to order the expenses determining the disputes to be paid out of the funds of the society, or by such party or parties to the dispute as they may think fit according to a scale laid down by the Registrar. The Registrar may fix the fees to be paid to his nominees out of expenses so recovered.

The Registrar or his nominee shall record a brief note in English or in vernacular of the evidence of the parties and witness who attend, and upon the evidence so recorded and upon consideration of any documentary evidence produced by either side, a decision or award, as the case may be, shall be given in accordance with justice, equity and good conscience and shall be reduced to writing. If any party duly summoned to attend fails to appear, the dispute may be decided ex parte. In cases where three arbitrators are appointed, the opinion of the majority shall prevail. In case of equality of votes, the matters shall be decided by Registrar himself.

In proceedings held under rules 35 to 38, no party shall be represented by a legal practitioner.

Subject to the provisions of section 59 of the Act, the Registrar may, by an order in writing, specially authorise any officer of the Co-operative Department or Delhi Audit Fund, not below the rank of a Sub-inspector, to call for and send arbitration orders obtained by any society for execution. The societies in respect of which these powers are to be exercised by the officers authorised shall be mentioned in the order.

When a liquidator has been appointed under section 47, the following procedure shall be adopted :

1. The appointment of the Liquidator shall be notified by the Registrar to the President of the society concerned and to the Central Co-operative Bank to which it is affiliated.

2. The Liquidator shall at once take charge of books and property and assets of the society and publish, by such means as he may think proper, a notice requiring all claims against the society to be notified to him within two months of the publication of the notice. He shall, thereafter, proceed to take such further action as he is empowered to take under the Act. All liabilities, recorded in the account books of a society, shall be deemed to have been duly notified to the liquidator.

3. The Liquidator shall make separate order against the various members and past members of the society noting the amount to be realised from each as a contribution under clause (b) of section 50 and as the cost of liquidation under clause (i) of the said section. These orders shall be submitted for approval to the Registrar, who may modify them or refer them back to the Liquidator for further enquiry or other action or may forward them for execution under section 59.

4. If the sum assessed against member is not recovered, the Liquidator may frame a subsidiary order or order against any other member or members to the extent of liability of each for debts of the society, until the whole amount due from members, is recovered and these orders shall be dealt with in the same way as orders under sub-rule (3).

5. The Liquidator shall submit a quarterly progress report to the Registrar in such form as the Registrar may require.

6. All funds in charge of the Liquidator shall be deposited in the Post Office Savings Bank or in the Central Co-operative Bank or in State Bank of India and shall stand in his name.

7. The Registrar shall fix the amount of fee, if any, to be paid to the Liquidator.

8. At the conclusion of the liquidation a general meeting of the society shall be called at which the Liquidator shall summarise his proceedings, point out the causes of the failure of the society, and report what sum, if any, remains in his possession after meeting all the liabilities of the society, as determined under the rules.

Every order passed by the Registrar under section 50A and every order issued under Section 55, shall, if not carried out, be executed in accordance with Section 52.

When recovery is made under Section 59, in execution of any order referred to in the said section, and property is not sold, such execution, the Registrar may order the expenses of such recovery to be paid by any party in default according to scale laid down by him not exceeding in aggregate five per cent of amounts of the dues.

Subject to the provisions of rule 43 when recovery is made under Section 59 in execution of any order referred to in the said section by village officers, the Registrar may order the expenses of such recovery to be paid out of the funds of the society or by such party or parties in default, as he may think fit, according to a scale laid down by the Registrar.

(1) When an order directing a society to be wound up is issued under Section 47 and no Liquidator is appointed, the officers of the society which is wound up shall within 15 days of the issue of the order by Registrar, send by registered book post or railway parcel, the record and books of the society to the Assistant Registrar or hand over the same to the local inspector.

(2) When the affairs of the society for which a Liquidator has been appointed have been wound up, an order cancelling the registration is made under section 42, the Liquidator will forward all the books and record of the cancelled society and all his own paper and proceeding, to the Assistant Registrar together with an account of his expenses, showing how the balance has been disposed off and attaching the receipt of the person to whom it was handed over.

(3) All the books and records of a society whose registration has been cancelled and the proceeds of liquidation shall be destroyed by the Assistant Registrar, after the expiry of two years from the date of the order, cancelling the registration of the society.

On any debt which is due from the society that is being wound up, the creditor may move interest upto the date of the Registrar's order for winding up at a rate, which in the case of a District Central Co-operative Bank or the Cooperative Bank permitted by the Registrar to finance societies, shall be the contract rate and in other cases shall be a rate to be fixed by the Registrar and not exceeding the contract rate :

Provided that, if any surplus assets remain after all liabilities, including liabilities on shares, has been paid off, further interest on such debt at a rate to be fixed by the Registrar and not exceeding the contract rate may be allowed to creditors from the date mentioned above upto the date of the repayment of the principal.

Summons as issued by the Registrar, or by a person authorised to hold an enquiry or to make an inspection by the Auditor or the Liquidator or by the Registrar's Nominee, under Section 58 shall, if sent for service to a Tehsildar, be served by such officers.

All (fees) fines levied under Section 61 and rule 47 shall be credited to Government.

(1) A summon issued by any of the officers mentioned in rule 47 may be served personally or through Tehsildar or any member of the Co-operative Department, or Chairman or Secretary of the society or by registered post, acknowledgement paid.

(2) The serving officer, in all cases in which summons has been served, endorsed or annexed or cause to be endorsed or annexed on or to the original summons a return stating the time when, and the manner in which the summons was served, and the name, and address of the persons (if any), identifying the persons served, and witnessing the delivery or tender of the summons.

(3) The persons issuing the summons may examine the serving officer on oath or cause him to be examined by the Tehsildar through whom it is served, and make such further enquiry in the matter as he thinks fit, and shall either declare that the summons has been duly served or order is to be served in such manner as he thinks fit.

(Attachment of movable property other than agricultural produce in possession of debtor)

(1) Where property to be attached is movable property, other than agricultural produce, in the possession of the debtor, attachment shall be made by actual seizure and the attaching officer shall keep the property in his own custody or in the custody of one of his subordinates, or of a receiver, if one is appointed under sub-rule (2) and shall be responsible for the due custody thereof :

Provided that when the property seized is subject to speedy and natural decay or when the expense keeping it in custody is likely to exceed its value, the attaching officer may sell at once. (Attachment of immovable property)

(2) Where it appears to the officer ordering conditional attachment under section 56 to be just and convenient, he may appoint a Receiver for the custody of the movable property attached under sub-rule (1) and his duties and liabilities shall be identical with those of a Receiver appointed under Order XI of Schedule 1 to the Code of Civil Procedure, 1908.

(3)

(i) Where the property to be attached is immovable, the attachment shall be made by an order prohibiting the debtor from transferring or charging the property in any way, and all persons from taking any benefit from such transfer or charge.

(ii) The order shall be proclaimed at some place on or adjacent to such property by the beat of a drum or other customary mode, and a copy of the order shall be fixed on a conspicuous part of the property and then upon a conspicuous part of village abadi and also where the property is and paying revenue to the Government in the office of the Collector of the district in which the land is situated.

No person being a member of a co-operative credit society or any society dispensing credit other than a land mortgage bank or general financing society or sale society shall be a member of any other society of a similar type without the general or special sanction of the Registrar, or the Deputy Registrar or the Assistant Registrar and where a person has become a member of two or more societies, any or all such societies shall be bound to remove him from membership upon receiving a written requisition from the Registrar or the Deputy Registrar or the Assistant Registrar to that effect.

(1) No consumers society shall, without sufficient cause refuse admission to membership to any person duly qualified therefor under its by-laws.

(2) Any person aggrieved by the decision of consumer societies refusing admission to him of its membership may appeal to the Assistant Registrar, Cooperative Societies, Delhi.

(3) The decision of the Assistant Registrar, Co-operative Societies, Delhi in appeal shall be final.

No society may take any action which would involve the society in the discussion or propagation of controversial opinions of a religious character, and the Registrar may prohibit any action or rescind any resolution which in his opinion is of such a tendency.

The Registrar shall keep a Register of the names and addresses of all registered societies and shall record a copy of the registered by-laws and subsequent amendments to the by-laws of such societies.

(1) A member of consumers society who carries on business of the kind carried by such society shall not be eligible to be a member of the Committee of such society without the general sanction of the Assistant Registrar, Cooperative Societies, Delhi.

(2) Where such person has been elected a member of the Committee of such society without the sanction of the Assistant Registrar, Co-operative Societies, Delhi, such person shall cease to be a member of such society upon receipt by the Committee of a written requisition on this behalf from the Assistant Registrar, Co-operative Societies, Delhi.

(3) A member is not eligible for the Committee of any co-operative society, if :

(a) he is under 21 years of age except in registered societies in colleges and schools where he may be 18 years of age;

(b) except in a producers society he holds any office of profit under the society or receives any honorarium; or

(c) (in a resource society), he lends money on his own account.

(4) A member of the Committee shall cease to hold office, if :

(a) he ceases to be a shareholder; or

(b) he is declared insolvent or applies for insolvency; or

(c) he becomes of unsound mind; or

(d) he is convicted of any offence involving dishonesty or moral turpitude; or

(e) he resigns and his resignation is accepted by the Committee;

(f) except in producers society, he accepts any office of profit under the society or receives any honorarium; or

(g) in a credit society, he lends money on his own account.

(1) Notwithstanding anything contained in the by-laws of a society, Government may, by an order published with the reasons therefor in the Delhi Government Gazette

(a) remove all the members of the Committee of a society, and appoint a new Committee in their place; or

(b) remove any of the members of the Committee of a society, and appoint one or more members, as the case may be, in the place of the members so removed

(2) When Government has appointed a new committee under clause (a) of sub-rule (1), Government may direct that the members of such Committee shall hold office for a period not exceeding three years from the date of their appointment. The member or members appointed under clause (b) of sub-rule (1) shall hold office so long only as the member or members, in whose place he is or they are appointed, would have held office, if the vacancy or vacancies had not occurred.

(3) The Committee or the member so appointed shall, during the period in which they hold office under sub-rule (2) perform the duties and exercise the powers of the members of the Committee of the society. (4) The by-laws relating to the meeting of a committee of the society, shall apply to the meeting of the new committee appointed under clause (a) of sub- rule (1) except that the quorum shall be three.

The Registrar, Liquidators or Assistant Registrar acting under clause (a) or clause (b) of section 59 of the Act shall, at the same time that he signs a certificate effecting any property, issue a proclamation in the form prescribed in Schedule B annexed hereto and, in the case of immovable property shall also forward a copy of the proclamation of the Tehsildar of the Tehsil in which the property is situated.

(1) When in execution of an order sought to be executed under Section 59, any property cannot be sold for want of buyer, if such property is in the possession of the defaulter, or of some person on his behalf, or of some person claiming it under a title created by the defaulter subsequently of the issue of the certificate by the Registrar, Liquidator or Assistant Registrar under clause (a) or (b) of sub-section (1) of the said section, the officer conducting execution shall as soon as practicable report the fact to : (a) the Court or the Collector, as the case may be, and (b) the society which applied for the execution of the said order.

(2) On receipt of a report under sub-rule (1) the society may within six months from the date of the receipt of the report, or within such further period as may for sufficient reason be allowed in any particular case by the Court or the Collector, as the case may be, submit an application in writing to the Court or the Collector, as the case may be stating the terms and conditions on which it agree to take over such property.

(3) On receipt of an application under sub-rule (7) notes shall be issued to the defaulter and to all persons known to be interested in the property, including those whose names appear in the Record of Rights as persons holding interest in the property about the intended transfer.

(4) On receipt of such a notice, the defaulter, or any person owning such property, or holding an interest therein by virtue of a title acquired before the date of the issue of a certificate under Section 59 may within one month from the date of the receipt of such notice deposit with the Court or the Collector, as the case may be, for payment to the society a sum equal to amount due under the order sought to be executed together with interest thereon and such additional sum for payment of cost and other incidental expenses as may be determined in this behalf by the Court or Collector, as the case may be.

(5) On failure of the defaulter, or any person interested or any person holding any interest in the property to deposit the amount under sub-rule (4) the Court or the Collector, as the case may be, shall direct the property to be transferred to the society on the conditions stated in the certificate in the form prescribed in the Schedule annexed hereto.

(6) The certificate granted under sub-rule (5) shall state whether the property is transferred to the society in full or partial satisfaction of the amount due to it from the defaulter.

(7) If the property is transferred to the society in partial satisfaction of the amount due to it from the defaulter, the Court or the Collector, as the case may be, shall on the production, by the society of a certificate signed by the Registrar, recover the balance due to the society in the manner prescribed in section 59.

(8) The transfer of the property under sub-rule (5) shall be affected as follows:

(i) In the case of movable property :

(a) where the property is in the possession of defaulter himself or has been in possession on behalf of the Court or the Collector, it shall be delivered to the society;

(b) where the property is in possession of some person on behalf of defaulter, the delivery thereof shall be made by giving notice to the person in possession directing him to give actual peaceful possession to the society and prohibiting him from delivering possession of the property to any other person; and

(c) the property shall be delivered to a person authorised by the society to take possession on behalf of the society,

(ii) In the case of movable property :

(a) where the property is a growing or standing crop, it may be delivered to the society before it is cut and gathered and the society shall be entitled to enter on the land and to do all that is necessary for the purpose of tending, cutting and gathering it;

(b) where the property is in the possession of the defaulter or of some person on his behalf or some person claiming under a title created by the defaulter subsequent to the issue of certificate under Section 59, the Court of the Collector, as the case may be, shall order delivery to be made by putting the society or any person whom the society may appoint to receive delivery on its behalf in actual possession of the property and if need be by removing any person who illegally refuses to vacate the same after holding an enquiry as provided in rules 13A to 13C of the Rules, regulating execution of decrees transferred to the Collector under Section 68 of the Code of Civil Procedure, 1908; and

(c) Where the property is in the possession of a tenant or other person entitled to hold the same by a title acquired before the date of issue of a certificate under Section 59, the Court or the Collector, as the case may be, shall order delivery to he made by affixing a copy of the certificate of transfer of the property to the society in some conspicuous place on the property and proclaiming to such person by beat of drum or other customary mode at some convenient place, that the interest of the defaulter has been transferred to the society.

(9) The society shall be required to pay expenses incidental to sale including the cost of maintenance of livestock, if any, according to such scale as may be fixed by the Government from time to time.

(10) Where land is transferred to the society under clause (ii) (a) of sub-rule (8) before a growing or standing crop is cut and gathered, the society shall pay the current year's land revenue on the land.

(11) The society shall forthwith report any transfer of property under clause (ii) (b) or (c) of sub-rule (8) to the village patwari for information and entry in the Record of Rights.

(12) The society to which property is transferred under sub-rule (5) shall maintain for each defaulter a separate account showing all the expenses incurred including payment of outside encumbrances, land revenue and other dues on the property and all the income derived from it.

(13) The society to which property is transferred under sub-rule (5) shall use its best endeavour to sell the property as soon as practicable to the best advantage of the society, as well as that of defaulter, the first option being always given to the defaulter who originally owned the property. The sale shall be subject to confirmation by the Assistant Registrar. The proceeds of the sale shall be applied to defraying the expenses of the sale and other expenses incurred by the society and referred in sub-rules (9) and (12) and to the payment of the arrears due by the defaulter under the order in execution, and the surplus (if any) shall then by paid to the defaulter.

(14) Until the property is sold, the society to which the property is transferred under sub-rule (5) shall use its best endeavour to lease it or to make any other use that can be made of it so as to derive the largest possible income from the property.

(15) When the society to which property is transferred under sub-rule (5) has realised all its dues under the order in execution of which the property was transferred from the proceeds of the management of the property, the property, if unsold, shall be restored to the defaulter.

(1) In societies of the following classes namely, Central Banks, Banking Unions, Mortgage Banks, Commission Shops and other federal societies, consumers, producers and multipurpose societies, the appointment of officers and staff (other than members of the Committee) shall be subject to such directions as the Registrar may from time to time issue in regard to their technical and educational qualifications and in regard to the deposit of security.

(2) Except with the previous sanction of the Registrar, no relative of any member of Committee or of the Honorary Secretary of the society in question shall be appointed to such office.

Explanation. Relative includes, anyone related to the person concerned or to his wife through a common ancestor not more remote than a great grandfather, or anyone married to a person so related.

Power to make rules under section 17 in respect of clauses (h), (i) and (1) is delegated to the Registrar of Co-operative Societies.

SCHEDULE (See rule 2) SCHEDULE 'A'

(See rule 2) Form of application of registration of co-operative societies

Name of proposed society.

Address to be registered.

Class of society.

Is liability limited or unlimited?

Area of operation.

No. of members at present.

What is the occupation of members?

Capital with details of shares, deposits, fees, etc.

Number and value of share proposed to be used.

Managing Committee,

We, the undersigned, apply that the above society may be registered under Section 10 of the Bombay Co-operative Societies Act, 1925, as extended to the State of Delhi. We enclose herewith three copies of the proposed by-laws duly signed.

S.No.

Name of member

Father's name

Caste

Age

Profession

Residence

Signature

SCHEDULE SCHEDULE 'B'

Form of proclamation to be issued prohibiting any private transfer or delivery of or encumbrance or charge on the property made or created after the issue of a certificate under Section 59 A. In case of immovable property.

Whereas Society has obtained an award or awards under section 54 or an order or orders of Liquidator under Section 50 of the Bombay Co-operative Societies Act, 1925, as extended to the State of Delhi for an amount of Rs against and purpose to execute the same sale of the undermentioned property of the said defaulter or defaulters and whereas the said society has obtained a certificate dated the for execution of the award or the order, as the case may be, under Section 59 of the said Act, notice is hereby given that any private transfer or delivery or encumbrance or charge on the property made or created after the issue of the certificate shall be null and void as against the said society.

Description of the Property

Date of award for order

Name of the parties against whom award or order has been passed and certificate under section 59 has been issued

Survey No.

Area

Assessment

Remarks

The notice shall be proclaimed at some place on or adjacent to such property by beat of drum or other customary mode, and a coy of the said notice shall be fixed on conspicuous part of the property and then upon a conspicuous part of village abadi and also where the property is land revenue paying to the Government, in the office of the Collector of the District in which the land is situated.

B. In the case of movable property, a similar notice may be given with necessary change as to the description of the property. A copy of notice shall be delivered to the defaulters.

SCHEDULE 'C'

Form of certificate for transfer of property under section 59A (See rule 58)

In the case of immovable property:

Whereas in execution of award or awards passed under Section 54 or an order or orders made by the Liquidator under Section 50 of Bombay Cooperative Societies Act, 1925, as extended to the State of Delhi, in favour of Society an order was made on the day of 20 for the sale of the under mentioned property of the person or persons (defaulter or defaulters) and whereas the Court or Collector is satisfied that the said property cannot be sold for want of buyers.

It is hereby ordered under sub-section (1) of section 59A of the said Act that the right, title and interest of the defaulter shall vest in the said society and shall be delivered to the society subject to the terms and conditions laid down in the schedule hereto annexed.

Description of the property

Survey No.

Area of assessment

Nature of right, title and interest of the defaulter

Details of encumbrances to which property is subject.

The said property is transferred to the society in full/partial satisfaction of the amount due to it from the defaulter.

Given under my hand and the seal of the Court of the Collector this day of 200

Court or Collector In the case of movable property :

(The Form will be similar with necessary change as regards the description and delivery of the property).

In exercise of the powers conferred by section 97 of the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972), the Lt. Governor is pleased to make the following rules, namely

1. These rules may be called the Delhi Co-operative Societies Rules, 1973.

2. These rules extend to the whole of the Union territory of Delhi.

(3) These rules shall come into force with effect from the 2nd April, 1973.

In these rules, unless the context otherwise requires :

(i) The expression "The Act" means the Delhi Co-operative Societies Act, 1972, (Act No. 35 of 1972);

(ii) "Borrowed capital" means the total loans, deposits and other borrowings of a co-operative society including the debentures subscribed and paid-up;

(iii) "Co-operative year" means the year ending on the 22. Subs, vide Noti. No. F. 66/Policy/Res/97-98/1861 dt. 6.8.1997. [31st day of March) or in the case of any co-operative society or class of co-operative societies the accounts of which are, with the previous sanction of the Registrar, balanced on any other day, the year ending on such day;

(iv) "Decree" means any decree of a civil court and includes any decision, award or order referred to in section 29, section 30, section 59, section 61 section 70, section 76, section 78 and section 79;

(v) "Decree -holder' means any person in whose favour a decree has been passed or a decision, award or order capable of execution under Section 71 has been made;

(vi) "Default" means failure on the part of the co-operative society, member or other persons to repay to the Financing Bank or any other cooperative society, a loan or any other amount due to it within the time fixed for repayment or to return to the co-operative society within the time fixed for finished goods in respect of raw material advanced or to keep any other obligation for the fulfilment of which time limit has been specified in the by-laws;

(vii) "Defaulter" means any co-operative society, member or other person committing default;

(viii) "Defunct Society" means a co-operative society classified as such during the course of an audit or enquiry or inspection or after reasons to be recorded in writing declared as such by the Registrar.

11. Omitted Vide Noti. No. F47/9/GH/Coop/419 dt. 26.2.1992. (ix) [xxx]

(x) "Form" means a form prescribed by the rules;

(xi) "General Body" in relation to any co-operative society means all the members of the co-operative society and in relation to a co-operative society which has provided for the constitution of a representative, general body, all the delegates or representatives constituting the representative general body elected in accordance with the provisions of the by-laws or such a cooperative society or the rules approved by the Registrar and the word "member" in relation to general body or general meeting wherever occurring in these rules or by-laws of such a co-operative society shall always be construed as such delegate or representative;

(xii) "General Meeting" means a meeting of the general body;

{(xii-a) "Government" means Lt. Governor.]

(xiii) "Government dues" include : (i) audit fee leviable for audit under section 53, (ii) cost of enquiry leviable under Section 57, (iii) loans, share capital, subsidy and grant-in-aid refundable under the terms of any agreement executed between the co-operative society and the President of India, (iv) arbitration fee, etc., (v) any other amount spent or to be spent by the Government on conducting elections of a committee, process fees and diet charges for civil arrest, imprisonment and civil confinement of the defaulters and contribution;

(xiv) "Judgment-debtor" means any person against whom a decree has been passed or decision, award or order capable of execution under Section 71 has been made;

(xv) "M.C.L." means the extent to which a co-operative society may receive deposits, loans and advances from non-members;

(xvi) "Model by-laws" means a set of by-laws approved and proposed by the Registrar for general adoption by a class of co-operative society;

22. Subs, vide Noti. No. F. 66/Policy/Res/97-98/1861 dt. 6.8.1997. (xvi-a) "Near relative' means father-mother, husband, wife, son, daughter- son-in-law, daughter-in-law, sister, brother, brother-in-law, sister-in- law.)

(xvii) "Net Profit" of a co-operative society means the profit remaining after allowing for the following charges, namely

(a) Establishment charges, contingent charges, interest payable on loans and deposits at approved rates and audit fee approved by the Registrar;

Explanation. Where the Registrar has powers under the rules to prescribe the qualification, number and the pay and allowances of the employees of a cooperative society, the "Establishment Charges" shall mean the "Establishment Charges" determined on the number of employees fulfilling the prescribed qualifications on the rates as may be determined by the Registrar from time to time.

(b) All usual working charges such as repairs, rent, taxes and the like, bounties or subsidies received, depreciation and irrecoverable book debts written off with the prior approval of the Registrar.

(c) Capital expenditure written off either wholly or in part;

(d) Capital loss actually incurred and not adjusted against funds created out of profits;

(e) Provisions for estimated bad debts, if any;

(f) Any other charges allowed by the Registrar in writing;

(xviii) "Official Gazette" means the Delhi Gazette;

(xix) "Order" means any order made by the Registrar in exercise of his powers under the Act, the rules and the by-laws;

(xx) "Owned Capital" means the paid-up share capital, reserve fund, any other reserve which has been created out of profits and undistributed and un-appropriated profits, if any;

(xxi) "Paid-up Share Capital" means such portion of the subscribed share capital as is actually paid-up in cash and/or credited as paid-up;

(xxii) "Persons" include the Government, a Co-operative Society, a Firm, a Joint Stock Company, or any other body corporate law constituted under any loss for the time being in force.

(xxiii) "Primary Society" means a co-operative society whose membership consists of :

(a) individuals;

(b) individuals and Government;

(c) individuals and the Financing Bank;

Explanation : "Individual" shall mean natural born person competent a contract and not specifically disqualified from the membership of a cooperative society under the rules and its by-laws.

(xxiv) "Promoter" means person or persons who take(s) part in the process of the organisation and promotion of a co-operative society and signs the application for registration;

(xxv) "Schedule" means the Schedule appended to these rules;

(xxvi) "Section" means the section of the Act;

(xxvii) "Share" means share in the capital of the co-operative society;

(xxviii) "Working Capital" includes such portion, of the reserved fund, other reserves appropriated out of profits, paid-up share capital, loans and deposits received by a co-operative society and debentures issued by a co-operative society as have not been locked up in buildings and other fixed assets; and

(xxix) "Words and expressions" defined in the Act and used, but not defined, in these rules, shall have the meanings assigned to them in the Act;

(2) Unless otherwise specified in the rules and the by-laws of a cooperative society :

(a) words importing the masculine gender include the feminine gender;

(b) words in singular include their plural and vice versa;

(c) expressions referring to writing include printing, typing, lithography photography and other methods of representing or reproducing words in a visible form;

(d) with reference to a person who is unable to sign his name, the word "signature shall include his "Thumb-impression" or other mark duly attested to signify his signature, and

(e) when any rule or any by-law of a co-operative society requires the determination of one-half, one-third or other fraction of a number and that number is not evenly divisible by two, three or such other figures as may be required, the number next below, which is evenly divisible by two, three or such other figure shall be taken for the original number.

Persons Appointed to Assist the Registrar and Position of Government Servants.

(1) Persons appointed to assist the Registrar under Section 3 may be designated as the Additional Registrar, Jt. Registrar, Deputy Registrar or Assistant Registrar.

(2) The Lt. Governor may confer on any person appointed to assist the Registrar all or such of the functions and powers of the Registrar under the rules as may be specified by him by order made in writing.

(3) The Registrar may appoint other field and ministerial staff to enable him or other officers or to whom powers of the Registrar have been conferred to carry on his functions efficiently and for the promotion of the co-operative movement.

[(4), (5) and (6)]

(1) Subject to the provisions of sub-section (1) of section 4, a co-operative society formed with the object of facilitating the operation of anyone of the classes or sub-classes hereinafter given shall be classified as a co-operative society of that class or sub-class, namely :-

(a) "Resource-Society" means a co-operative society formed with the objects of obtaining for its members the credit, goods or services required by them, such as :

(i) Thrift and Urban Credit Co-operative Society,

(ii) Agricultural Credit Co-operative Society,

(iii) Agricultural Non-Credit Co-operative Society.

(iv) Multipurpose Co-operative Society which includes amongst its primary objects specified in (ii) and (iii) above.

(v) Urban Thrift and Credit Co-operative Bank.

(vi) Co-operative Bank.

(vii) Co-operative Land Mortgage Bank.

(viii)

(i) Industrial Producers Co-operative Society.

(ii) Weavers' Co-operative Society.

(iii) Labour and Construction Co-operative Society.

(iv) Industrial Processing Co-operative Society.

(v) Motor Transport Co-operative Society.

(vi) Industrial Service Co-operative Society.

(b) "Producers' Society" means a Co-operative Society formed with the object of producing and dispensing of goods as the collective property of its members and includes a Co-operative Society formed with the object of the collective disposal of the labour of the members of such co- operative society.

(c) "Consumers' Society" means a co-operative society formed with the object of obtaining and distributing goods to or of performing services for its members, as well as to other consumers within the area of operation specified in the by-laws, and of dividing among its members and customers in a proportion prescribed by the rules or by the by-laws of such co-operative society, the profits accruing from such supply and distribution.

(d) "Housing Society" means a co-operative society formed with the object of providing its members with dwelling houses subject to the provisions of these rules and on the conditions to be determined by the Lt. Governor from time to time and may be of any of the following types :-

(i) Tenant Ownership Housing Co-operative Society where land is held either on leasehold or freehold basis by the co-operative society and the houses are to be owned by members.

(ii) Housing Finance Co-operative Society which has its principal object of raising funds, providing finance to its members for construction of houses and, or purchase of residential plots according to scheme and plan approved by the prescribed authority after mortgage of immovable property in favour of a co-operative society.

(iii) Tenant Co-partnership Housing Co-operative Society which holds both lands and buildings either on lease hold or free hold basis and allots them to the members.

(iv) Plot holders Housing Co-operative Society which acquires land either on leasehold or freehold basis, develops it into a residential area according to lay out plan approved by the prescribed authority and sells residential plots to its members on the leasehold or freehold basis.

(v) Flat Owners Housing Maintenance Co-operative Society, where the flats are owned by individuals in the Multi-Storeyed Buildings on leasehold or freehold basis.

(e) "Processing Society" means a co-operative society, the object of which is the processing of goods by mechanical or manual process.

(f) "Marketing Society" means a co-operative society formed for the purpose of marketing agricultural or other produce and includes amongst its objects, the supply of the requisites of such production.

(g) "Joint Farming Society" means a co-operative society in which with the object of increasing agricultural production, employment, income and better utilisation of resources, land held by members is pooled together and is jointly cultivated by the members on behalf of the society.

(h) "Collective Farming Society" means a co-operative society in which with the object of increasing agricultural production land is acquired from outside in the name of the co-operative society and is collectively and jointly cultivated by the members themselves on behalf of the co- operative society.

(i) "Co-operative Union" means a co-operative society which has as its principal object the undertaking of Co-operative Education, propaganda and training.

(2) Every Co-operative Society shall be classified by the Registrar in accordance with sub-rule (1).

(3) The Registrar may sub-divide any class of Co-operative Societies into categories with reference to the composition of their membership, the nature of business transacted by them or the articles handled by them or any other similar consideration.

(4) If any co-operative society classified as aforesaid is a federal society, it may be classified as Apex or Central Co-operative Society.

(5) If any question arises as to the class to which a co-operative society belongs within the meaning of this rule, the question shall be referred to the Registrar whose decision shall be final.

(1) Any co-operative society may, at a meeting of its general body specially called for the purpose, of which at least seven clear days' notice has been given to its members, resolve to convert itself by an amendment of its by-laws into a co-operative society of a class different from the one to which it belongs. The said resolution (hereinafter in this rule referred to "as the preliminary resolution") shall include the amendments to the by-laws proposed for adoption by this co-operative society.

(2)

(i) A copy of the preliminary resolution shall be sent to all members and creditors of the society.

(ii) Any member of the co-operative society may, notwithstanding any bylaws to the contrary by notice given to the co-operative society within a period of one month from the date of receipt by him, of the preliminary resolution intimate his intention to withdraw his share capital from the co-operative society.

(iii) Any creditor of the co-operative society may, notwithstanding any agreement to the contrary, by notice given to the co-operative society within the period referred to in clause (ii) intimate his intention to demand a return of the amount due to him.

(3) After the expiry of two months from the date of despatch of the preliminary resolution to all the members and creditors of the co-operative society, a meeting of the members of the co-operative society, of which at least fifteen clear days' notice shall be given to its members shall be convened for considering the preliminary resolution. If, at such meeting, the preliminary resolution is confirmed by a resolution passed by a majority of not less than two- thirds of the members present and voting either without changes or with such changes as, in the opinion of the Registrar, are not material, he may, on receipt of a copy of such resolution certified in the manner specified in the rules and subject to the provisions of section 11, register the amendment to the by-laws adopted by the co-operative society. On such registration, the conversion shall be deemed to have taken effect. The opinion of the Registrar as to whether the changes made in the preliminary resolution are or are not material shall be final.

(4) At the meeting referred to in sub-rule (3), provision shall be made by an other resolution for :-

(i) the payment of the share capital of all the members who have given notice under clause (ii) of sub-rule (2), and

(ii) there satisfaction of the claims of all the creditors who have given notice under clause (iii) of sub-rule (2) :

Provided that no member or creditor shall be entitled to such repayment or satisfaction until the preliminary resolution is confirmed as provided in sub- rule (3).

(5) If, in the opinion of the Registrar, the provision made for the repayment of the share capital of the members and the satisfaction of the claims of creditors referred to in sub-rule (4) is not satisfactory, the Registrar may refuse to register the amendment to the by-laws adopted by the cooperative society.

(1) Every application for registration of a co-operative society under subsection (1) of section 7 shall be made in Form (1) in Hindi or English, and shall subject to the provisions of sub-rules (2) and (3), be duly signed by the applicants, and be accompanied by :-

(a) Four copies of the proposed by-laws of the co-operative society duly signed by each of the persons who sign the application for registration.

(b) A certificate from the Financing Bank that the amount of share capital raised by the promoters has been deposited in the name of the proposed co-operative society in suspense account.

(c) A list of persons who have contributed to the share capital together with the amount contributed by each of them, and the entrance fee paid by them.

11. Subs vide Noti. No. F-66/Policy/RCS/97-98/1861 Dt. 16.8.1997. [(d) The scheme showing the details explaining how the working of the cooperative society will be economically sound and where the scheme envisages the holding of immovable property by the co-operative society, the description of immovable property proposed to be purchased, acquired or transferred to the co-operative society. The scheme shall be drawn in accordance with the viability norms for registration of different classes/types of societies as given in Schedule VII to these rules. These norms can be modified by the Registrar from time to time].

(e) Such other documents as may be specified in the model by-laws, if any.

(f) A declaration on oath from each of the promoters to the effect that he is not a member of the family of any other promoter joining in the application for registration within the meaning of Explanation given below section 5.

(g) In the case of housing co-operative society, an affidavit from each of the promoter members :

(i) that he does not own a residential house or plot of land for construction of a residential house thereon in his name or in the names of his wife or dependent children on leasehold or freehold basis in the Union territory of Delhi;

(ii) that he or his wife or any of his dependent children is not a member of any other housing society; and

(iii) that he or his wife or any of his dependent children is not dealing in the business of purchase or sale of house/land in the Union territory of Delhi directly or indirectly either as a principal or an agent.

(h) A statement showing financial position of each of the promoters.

(i) Certified copy of the resolution of the promoters which shall specify the name and address of one of the applicants to whom the Registrar may address his correspondence under the rules before registration and despatch or hand over registration documents referred to in sub-rule (3) of rule 8.

(2) Where any member of a co-operative society to be registered is a registered co-operative society, a member of the committee of such a registered co-operative society shall be authorised by the committee by a resolution to sign the application for registration and the by-laws on its behalf, and a copy of such resolution shall be appended to the application.

(3) Where any member of a co-operative society to be registered is a firm, company, corporate body, society registered under the Societies Registration Act, 1869, or public trust registered under any law for the time being in force relating to registration of public trusts, or a local authority, then such firm, company, corporate body, society, public trust or local authority shall duly authorise any person to sign the application for registration and the by-laws on its behalf, and a copy of such authority shall be appended to the application.

(4) The application shall be sent to the Registrar by registered post, or delivered by hand.

(5) On receipt of an application under rule 6, the Registrar shall enter particulars of the application in the register of applications to be maintained in Form 2, give a serial number to the application and issue a receipt in acknowledgement thereof.

(1) On receipt of an application under rule 6 and before passing final order under Section 9, the Registrar may call for such further information from the applicants or make such independent enquiries as he may deem fit.

11. Subs by Notification No. F. 16 (9)/80/Co-op./Legal/88/227, Published in Delhi Gazette, Part IV, dt. 9.9.1988. [(2) The Registrar may give, whenever necessary, reasonable time not exceeding one month to the promoters to modify the proposed by-laws before finally registering the Co-operative Society which should be within the limit prescribed under Section 9 of the Act].

(3) On registering a co-operative society and its by-laws under sub-section (1) of section 9, the Registrar shall, as soon as may be, notify the registration of the co-operative society, a certificate of registration in Form 3 signed by him and bearing his official seal and containing the registration number of the cooperative society, and the date of its registration. The Registrar shall also furnish the co-operative society a copy of the by-laws approved and registered by him with a certificate in the following form recorded on the last page of the by-laws after the signatures of the promoters : Certified that these by-laws have been registered under Section 9 (1) of The Delhi Co-operative Societies Act, 1972 at page.... Volume No.... this... day of... 20...... Signature................ Seal.......................

(4) The documents referred in sub-rule (3) shall be delivered to a person authorised or shall be despatched by post under "acknowledgement due" registered cover.

(1) The Registrar shall maintain a register in Form 4 of all co-operative societies registered or deemed to be registered under the Act.

(2) The Registrar shall divide the register into several parts, one for each of the following classes of co-operative societies :-

(a) Resources.

(b) Producers.

(c) Agricultural.

(d) Housing.

(e) Consumers.

(f) Federal.

(3) The Registrar shall assign for each class or sub-class of co-operative society a code symbol for giving registration No. to the co-operative society and the co-operative society shall be registered from the date specified in the certificate of registration.

(4) All the existing co-operative societies shall be deemed to be registered under the Act, and shall first be entered in the register under distinct code symbol assigned to a class of co-operative society to which the existing cooperative society belongs in chronological order with reference to the date of earlier registration deemed to be the registration under the Act. A list of all such co-operative societies shall be published in Form 5 in the Official Gazette soon after the publication of the notification under sub-section (3) of section 1.

(5) If the particulars of any existing co-operative society deemed to be registered under the Act are not so published or published under classification different from the aims and objects in the existing registered by-laws, the existing co-operative society shall make an application in writing to the Registrar within 30 days of the publication of the list referred to in sub-rule (4) for the publication of its name in the Official Gazette.

(6) On receipt of the application under sub-rule (5), the Registrar, after making such enquiries as may be deemed fit by him, shall pass appropriate order thereon.

(7) After entering the existing co-operative society in the register, new cooperative society to be registered under the Act shall be entered in the register.

(8) The Registrar shall keep in separate guard files in loose left system in respect of each part of the register referred to in sub-rule (2) wherein copies of registered by-laws of the co-operative society shall be kept in chronological order of the registration. Each page in this file shall be serially numbered. Each volume of this file shall be given its distend serial number.

Every co-operative society shall commence working within three months from the date of its registration.

The report to be made by the Registrar to the Lt. Governor under the proviso to sub-section (3) of section 9 shall be in Form 6.

Without prejudice to the generality of the power under sub-section (2) of section 9, the Registrar may refuse to register a co-operative society on anyone of the following grounds :

(1) No co-operative society shall be registered by the name which is identified with or which nearly resembles the name by which a co-operative society is in existence and has been previously registered or the name is in contravention of any law for the time being in force.

(2) No proposal for the registration of a co-operative society may be accepted by the name which is likely in the opinion of the Registrar, to deceive or mislead the members of the public as to its nature or identity.

(3) The Registrar may not consider the proposal favourably if in his opinion the aims and objects of the co-operative society are similar to those of a co-operative society already functioning in that area satisfactorily.

(4) Except otherwise permitted, the members of a co-operative society do not reside within the area of its operation or in the opinion of the Registrar are drawn from heterogeneous elements.

(5) If in the opinion of the Registrar area of operation of a co-operative society extends over an unmanageable area.

(6) The proposal for registration of a co-operative society is against the principles of co-operation.

(7) Any other ground considered just and equitable by the Registrar.

(1) The Registrar may require a co-operative society to make bye-laws in respect of all or any of the following matters, namely :

(a) the name of the co-operative society, address of the co-operative society and its branches;

(b) the area of operation;

(c) the objects of the co-operative society;

(d) the manner in which and the limit up to which the funds of the cooperative society may be raised the maximum share capital which anyone member may hold and the purpose to which the funds would be made applicable;

(e) the terms and qualifications for admission to membership;

(f) the privileges, rights, duties and liabilities of members including nominal, associate and sympathiser members;

(g) the consequences of default of members;

(h) conditions regarding sale or disposal of produce of members, wherever applicable;

(i) in the case of Credit Co-operative Societies :

(i) the maximum loan admissible to a member;

(ii) the maximum rates of interest on loans to members;

(iii) the conditions on which loans may be granted to members and penalties for misapplication of loans so advanced;

(iv) the procedure for granting extension of time for the repayment of loans and advances;

(v) the consequences of default;

(vi) the circumstances under which a loan may be recalled;

(j) in the case of non-credit co-operative societies, the mode of conducting business, such as manufacture, purchase, sale, stock-taking and other like matters;

(k) in the case of a composite co-operative society, that is to say, society having both credit and non-credit functions, matters referred to in clauses (i) and (j);

(l) the mode of holding meetings of the general body and of the committee;

(m) the procedure for expulsion of members;

(n) the manner of making, altering and abrogating by-laws;

(o) the mode of appointment either by election or otherwise and removal of members of the committee and other officers, if any, their duties and powers;

(p) the Chairman's or President's powers, duties and functions and his removal on his losing support of the majority;

(q) the method of recruitment, the conditions of service and the authority competent to fix, revise or regulate the scale of pay and allowances of salaried officers and servants of the co-operative society and the procedure to be followed in the disposal of disciplinary cases against them;

(r) the mode of custody and investment of funds and mode of keeping the accounts and records;

(s) the manner in which penalty should be levied on a member who is found to be guilty of breach of by-laws;

(t) the disposal of net profits;

(u) appointment of a provisional committee, where necessary;

(v) the mode of appointment and removal of committee and its powers and duties;

(w) the mode of convening annual and special general meetings, issue of notices, and the business which may be transacted thereat;

(x) in the event of winding up of the society, the purpose for which surplus, if any, shall be utilised.

(y) the conduct of election to the committee and other bodies of the cooperative society as provided in the by-laws, including the number of members to be elected by different constituencies and appointment of returning officer;

(z) any other matter incidental to the management of its business.

(2) A co-operative society may make by-laws for all or any of the following matters, that is to say :

(a) the circumstances under which withdrawal from membership may be permitted;

(b) the procedure to be followed in cases of withdrawal, ineligibility and death of members;

(c) the conditions, if any, under which the transfer of share or interest of member may be permitted;

(d) the method of appropriating payments made by members from whom moneys are due,

(e) the authorisation of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the co-operative society;

(f) the constitution and maintenance of various funds as required to be maintained under the provisions of the Act, rules and by-laws;

(g) constitution of representative general body consisting of delegates of members of the society and the mode of election of such delegates to exercise the powers of the general body and to specify the powers which may be exercised by such representative general body.

When a co-operative society has been registered, the by-laws of the cooperative society as approved and registered by the Registrar shall be the bylaws of the society.

The Registrar shall make model by-laws of each class or sub-class of a cooperative society which may be adopted with or without changes, if any.

(1) Subject to the provisions of this rule, the by-laws of a co-operative society may be amended by passing a resolution at a meeting of its general body held for that purpose.

(2) The co-operative society shall give due notice in accordance with its bylaws to all the members for considering any amendment thereof.

(3) An amendment shall be deemed to have been duly passed, if a resolution in that behalf is passed at a meeting of its general body by not less than two- thirds of the members present thereat, and voting.

(4) After the resolution is passed, a copy thereof shall, within a period of two months from the date of the meeting at which the resolution was passed, be furnished to the Registrar along with :

(a) a copy of the relevant by-laws in force with amendments proposed to be made in pursuance of the resolution, together with reasons justifying such amendments;

(b) four copies of the text of the by-laws as they would stand after amendment, signed by the officers duly authorised in this behalf by the committee of the society;

(c) a copy of the notice given to the members of the society of the proposal to amend the by-laws;

(d) such other information as may be required by the Registrar.

11. Subs, vide Noti. No. F. 66/Policy RCS/97-98/861 Dt. 6.8.1997. [(5) On receipt of the copy of the resolution and other particulars referred to in sub-rule (4), the Registrar shall examine the amendment proposed by the

(1) If it appears to the Registrar that an amendment of a by-law of a cooperative society is necessary or desirable in the interest of such co-operative society, he may call upon the co-operative society to make the amendment.

(2) The Registrar may be serving a notice in Form 7 call upon a society to make an amendment within a period not exceeding sixty days by convening a general body meeting the society.

(3) After the expiry of the period specified in the notice under sub-rule (2), and if the society fails to make the amendment, the Registrar after giving the co-operative society an opportunity of being heard, may register the amendment and issue to the co-operative society a copy of such amendment certified by him with a certificate signed by him. With effect from the date of registration, the amendment is binding on the co-operative society and its members subject to appeal, if any. All amendments of the by-laws relating to the same co-operative society when registered by the Registrar shall be assigned a consecutive number in chronological order and shall be noted in index to the by-laws to be maintained by the co-operative society in the registration file.

Each co-operative society shall keep at its registered address a registration file containing :

(a) Registered by-laws.

(b) An index of amendment of by-laws.

(c) All registered amendments to the by-laws duly entered in the index along with certificates of registration of amendments.

(d) Certificate of registration.

(e) A copy of the Act.

(f) A copy of Rules.

The above shall be open for inspection at all times during working hours to the Registrar or any other officer authorised by him and every member of the society.

(1) The name of a co-operative society may be changed under section 14 so however that it does not refer to any caste or religious [or religion] denomination and is not inconsistent with the object of the co-operative society.

(2) Every change in the name of a co-operative society shall be made by an amendment of its by-laws and shall be notified in the Official Gazette.

(3) After the change in the name is approved by the Registrar, the Cooperative Society shall send the original registration certificate for amendment to the Registrar, who shall return the same to the co-operative society duly amended.

(1) The change of liability of a co-operative society from unlimited to limited and vice versa or in terms of multiple of share capital, shall be secured by passing a resolution in that behalf at a general meeting of the co-operative society indicating in clear terms the manner of changing the liability. The cooperative society shall give 30 days' notice in writing of such meeting to all its members and creditors and furnish them with copies of the resolution proposed to be moved at the meeting. After the resolution is duly moved and passed, a copy thereof shall be sent to the Registrar within three months of its passing.

(2) Every notice to be given by the co-operative society under sub-section (2) of section 14 shall be sent by post under certificate of posting or otherwise to the address of each of its members and creditors as recorded in the book of the cooperative society. A copy of such notice shall be exhibited on the notice board of the co-operative society and a copy shall also be sent to the Registrar for exhibition on the notice board in his office; and thereupon, notice of the resolution to change the form or extent of its liability shall be deemed to have been duly given to all its members and creditors, notice not being sent to their correct address or notice not being received by them, notwithstanding.

(3) For the purpose of determining the claims of a member under clause (b) of sub-section (4) of section 14, the value of a share of a member in a cooperative society shall be ascertained as follows :

(a) In the case of a co-operative society with unlimited liability, the value of the share shall be the actual amount received by the cooperative society in respect of such share.

(b) In the case of the co-operative society with limited liability, the value of the share shall be the amount arrived at by a valuation based on the financial position of the co-operative society as shown in the last audited balance sheet, provided that it shall not exceed the amount actually received by the co-operative society in respect of such share.

Explanation : For purposes of this rule, form of liability refers to limited or unlimited while 'extent' of liability means : (a) face value of share, (b) the multiple of the value of shares subscribed, and (c) value limited as to particular amount (such as guarantee liability), etc.

(4) Any member or creditor desiring to exercise his opinion under sub-section (2) of section 14 shall inform the co-operative society accordingly in writing and where he does not propose to withdraw his entire shares or deposits/the member or creditor shall clearly indicate in writing the extent of his withdrawal. The option once exercised shall be final and shall not be revoked. The co-operative society shall examine and draw up a scheme for orderly payment of all the claims in an equitable manner including shares, the value of which shall be ascertained in accordance with the provisions of sub-rule (3). The scheme may also provide for settlement of claims by mutual agreement. Where the Registrar does not approve the scheme on the ground of impracticability or undesirability, the resolution passed by the society under sub-rule (1) shall be ineffective, and the form and extent of liability of a cooperative society shall not be deemed to be changed in accordance with the resolution passed aforesaid.

(5) After the Registrar approves the scheme, the co-operative society shall make payments to members and creditors as provided in clause (b) of subsection (4) of section 14 and make a report to that effect to the Registrar and furnish the Registrar with a proposal to amend the by-laws of the cooperative society duly passed in that behalf. On receipt of the proposal, the Registrar shall register the amendment in accordance with the provisions of section 11.

(1) Every co-operative society desiring to effect amalgamation, transfer of assets and liabilities, division or conversion, shall make an application to the Registrar in that behalf giving full details about such amalgamation, transfer, division or conversion, as the case may be.

(2) On receipt of the application referred to in sub-rule (1), the Registrar may invite opinions from members and shareholders or creditors or from any other person who in the opinion of the Registrar is interested in the affairs of the co-operative society and may call for such further information or particulars from the co-operative society as he may deem necessary.

(3) On receipt of such application, the Registrar may, after examining the details furnished in the application and after considering all suggestions received by him in response to his invitation referred to in sub-rule (2), and other particulars which he may call upon the co-operative society to furnish, give his approval to the amalgamation, transfer, division or conversion, as the case may be, in the interest of the co-operative society.

(4) After the receipt of the approval of Registrar under sub-rule (3), the cooperative society shall convene a special general meeting by giving notice of at least 15 clear days to all its members and creditors and pass a resolution for amalgamation, transfer of assets and liabilities, division or conversion, as the case may be, by two-third majority of the members present and voting at the meeting. The resolution so passed shall contain the purpose and the full scheme indicating how the proposed amalgamation, transfer or division or conversion would be useful to the co-operative society and be given effect to. Where the scheme does not involve transfer of liabilities of the co-operative society to another co-operative society, a statement to that effect shall be made in the application to be made under sub-rule (1). Where the scheme involves transfer of liabilities of the co-operative society, the co-operative society shall give written notice in Form 8 to all the members, creditors and other persons whose interests are likely to be affected by such transfer. The notice shall also be published in at least one newspaper in English and one in vernacular language in circulation in the Union territory of Delhi and a copy thereof shall be exhibited on the notice board in the office of the co-operative society and the Registrar.

(5) Within one month from the date of notice referred to in sub-rule (4), the members, creditors and other persons whose interests are likely to be affected by the transfer of the liabilities of the co-operative society may exercise their option as required by sub-section (4) of section 15 in writing duly signed by them and delivered or caused to be delivered to the co-operative society, failing which they shall be deemed to have assented to the transfer of liabilities of the co-operative society to another co-operative society. The option once exercised shall be final and shall not be revoked.

(6) The co-operative society shall meet in full or otherwise satisfy all claims of members and creditors and other interested persons who exercise the option.

(7) For the purposes of determining the claims of a member under clause (b) of sub-section (6) of section 15, the value of the share of a member shall be ascertained as follows :-

(a) in the case of a co-operative society with unlimited liability, the value of a share shall be the actual amount received by the cooperative society in respect of such share.

(b) in the case of a co-operative society with limited liability, the value of a share shall be the amount arrived at by a valuation based on the financial position of the co-operative society as shown in the last audited balance sheet provided that it shall not exceed the actual amount received by the co-operative society in respect of such share.

(8) The co-operative society shall submit a report to the Registrar of the action taken by it and request him to give effect to its decision for amalgamation, transfer, division or conversion by registering the amalgamated or converted co-operative society or the new co-operative society, as the case may be, and cancelling the registration of the co-operative societies which have been amalgamated, divided on converted.

(9) On receipt of the report from the co-operative society under sub-rule (8), the Registrar shall, after satisfying himself that the procedure has been properly followed, register the amalgamated, divided or converted cooperative societies and cancel the registration of the co-operative societies which have been amalgamated, divided or converted.

(1) Before issuing any order under sub-section (1) of section 16 providing for the amalgamation, division or reorganisation of any co-operative society or societies, the Registrar shall prepare a draft scheme in respect of such amalgamation, division or reorganisation stating in particular the manner in which the new committee or committees of the co-operative society or societies resulting from such amalgamation, conversion or reorganisation shall be constituted and the by-laws which such co-operative society or societies shall follow. The Registrar shall send a copy of the draft of the order proposed to be issued by him under sub-section (1) of section 16 to the co-operative society or each of the co-operative societies concerned calling upon it or class of members thereof or from any creditor or class of creditors to submit such objections or suggestions together with its own or their own suggestions and objections within a period of not less than two months from the date on which the copy of the draft aforesaid was received by it or them.

(2) The Registrar shall consider all such suggestions and objections and make such modifications in the draft order as may seem to him desirable in the light of those suggestions or objections and then issue a final order under subsection (1) of section 16.

(3) Any member or creditor of each of the co-operative societies to be amalgamated, divided or reorganised who has objected to the scheme of amalgamation, division or reorganisation within the period specified in sub- rule (1), may apply to the Registrar for payment of his share or interest, if he be a member, and the amount in satisfaction of his dues, if he be a creditor. Such application shall be separate and distinct from the objection or suggestion which he may have submitted to the co-operative society or the Registrar under clause (b) of sub-section (2) of section 16. It shall be competent for the Registrar to nominate an officer not below the rank of an Assistant Registrar to investigate such applications and to determine the payments required to be made to the members or creditors, as the case may be.

(4) Subject to the provisions of the Act, the rules and the by-laws, the Registrar may by order require the co-operative society concerned to meet in full or satisfy otherwise all due claims of the members and creditors and thereupon the co-operative society shall be bound to meet in full or satisfy otherwise all due claims of the members and creditors within such time as may be specified by the Registrar in the order.

(1) Where in the case of defunct societies or a co-operative society which is being wound up, a proposal for compromise or arrangement.

(a) between a co-operative society and its creditors; and

(b) between the co-operative society and its members, is received, the Registrar may on the application of the co-operative society or any member or of any creditor of the co-operative society or of the liquidator, order reconstruction of the co-operative society in the manner hereinafter given.

(2) An application for reconstruction of a co-operative society under sub- rule (1) may be made in Form 9. On receipt of such application, the Registrar may taking into consideration the compromise or arrangement for reconstruction of the co-operative society, if he thinks fit, prepare a draft order indicating:

(i) the manner in which the amounts payable by the co-operative society to its creditors should be paid and the amounts recoverable from its debtors and members should be recovered;

(ii) the manner in which the share capital, if any, of such member should be reduced;

(iii) the manner in which the scheme of reconstruction should be implemented; and

(iv) the manner in which the by-laws of the co-operative society will stand amended in order to give effect to the scheme of reconstruction.

A copy of the draft order shall be exhibited on the notice board of the cooperative society and a copy thereof shall be exhibited on the notice board of the office of the Registrar inviting objections and suggestions from all those interested within a specified time, which shall not exceed one month.

(3) After taking into consideration the objections and suggestions (if any) received, the Registrar may issue an order approving such reconstruction or staying further proceedings in respect of such reconstruction. On issue of an order approving the reconstruction the co-operative society shall stand reconstructed and the by-laws of the co-operative society shall be modified to that effect and to that extent.

(4) After the order referred to in sub-rule (3) has been made by the Registrar, the order of liquidation already passed shall be deemed to have been withdrawn with effect from the date of the order under sub-rule (3).

Where an application for registration of an amendment in the by-laws of a cooperative society is rejected by the Registrar under sub-section (4) of section 11, the appeal, if any, shall be made only after the committee has reconsidered the matter in a meeting and has decided to prefer an appeal which shall be signed by the officer of the society authorised in this behalf by the committee. A copy of the resolution of the committee shall be attached with the memorandum of appeal.]

In case of vacancy in a housing society including group housing society where lay out and building plans have been approved by the competent authority, the same shall be filled by the committee by notifying in a leading daily newspaper of Delhi in Hindi and English. In case the number of applications are more than the notified vacancies, the membership shall be finalised through draw of lot in the presence of authorised representative of the Registrar.

Before making an order cancelling the registration of a co-operative society under sub-section (5) of section 9, the Registrar shall give to the society reasonable opportunity of being heard.

11. Subs vide Noti. No. F-66/Policy/RCS /97-98/1861 dt. 6.8.1997.

(1) No person shall be admitted as a member of a co-operative society unless-

(i) he has applied in writing in the form laid down by the co-operative society or in the form specified by the Registrar, if any, for membership along with a declaration on oath that he is not a member of any other co-operative society having similar objects;

(ii) his application is approved by the committee of the co-operative society in pursuance of the powers conferred on it in that behalf and subject to such resolution as the general body may in pursuance of the powers conferred on it in that behalf from time to time pass, and in the case of nominal, associate, by an officer of the society authorised in that behalf by the committee;

(iii) he has fulfilled all other conditions laid down in the Act, the Rules and the By-laws; and

(iv) in case of a firm, company or body corporate, society registered under the Societies Registration Act, 1860, a public trust registered under any law for the time being in force relating to registration of public trust or a local authority, the application for membership is accompanied by a resolution authorising it to apply for such membership and the sanction of the Lt. Governor has been accorded.

(1) No person shall be eligible for admission as a member of a co-operative society if he----

(a) has applied to be adjudicated an insolvent or is an undischarged insolvent; or

(b) has been sentenced for any offence other than an offence of a political character or an offence not involving moral turpitude and dishonesty and a period of five years has not elapsed from the date of expiry of the sentence;

11. Subs, vide Noti. No. F. 66/Policy/RCS /97-98/1861 dt. 6.8.1997. [(c) in the case of membership of a housing society :-

(i) owns a residential house or a plot of land for the construction of a residential house in any of the approved or un-approved colonies or other localities in the National Capital Territory of Delhi, in his own name or in the name of his spouse or any of his dependent children, on leasehold or freehold basis or on power of attorney or on agreement for sale:

Provided that disqualification of membership as laid down in sub-rule (1) (c) (i) shall not be applicable in case of co-sharers of property whose share is less than 66.72 sq. metres of land:

Provided further that the said disqualification shall not be applicable in case of a person who has acquired property on power of attorney or through agreement for sale and on conversion of the property from leasehold to freehold on execution of conveyance deed for it, if such person applie for the membership of the housing society concerned].

(ii) he deals in purchase or sale of immovable properties either as principal or as agent in the Union Territory of Delhi; or

(iii) he or his spouse or any of his dependant children is a member of any other housing society except otherwise permitted by the Registrar.

(2) Notwithstanding anything contained in the rules or the by-laws of the co-operative society, if a member becomes, or has already become, subject to any disqualifications specified in sub-rule (1), he shall be deemed to have ceased to be member from the date when the disqualifications were incurred.

(3) A member who ceases to be a member of a co-operative society under sub-rule (2) shall not be entitled to exercise rights of membership or incur liability as member with effect from the date referred to in sub-rule (2) but as from the date he becomes a creditor of the co-operative society in respect of the amount due to him on account of paid up share capital, deposit, cost of land deposited or any other amount paid-by him to the co-operative society as its member. As from the date of his ceasing to be a member of the society under sub-rule (2), the amount standing to his credit shall be paid to him by the co-operative society within 3 months and when the co-operative society is already under liquidation, the amount due to him will be credited as a debt due to a third party from the co-operative society.

(4) If any question as to whether a member has incurred any of the disqualifications referred to in sub-rule (1) arises, it shall be referred to the Registrar for decision. His decision shall be final and binding on all concerned. The power of the Registrar under this rule shall not be delegated to any other person appointed to assist the Registrar.

The following shall be the terms and conditions on which persons referred to in section 20 (1) (d) may be admitted as a member of a co-operative society :-

(1) The number of such persons admitted to the membership of a cooperative society shall not exceed 5 per cent of its total membership at any time.

(2) The head office of such persons shall be within the area of operation of the co-operative society.

(3) Such persons shall carry on their business within the area of operation of the co-operative society.

(4) Such persons purchase at least 10 shares in the capital of the cooperative society.

(5) The aims and objects of such persons are not contrary to those of the cooperative society.

(6) Such persons do not carry on competing business with that of the cooperative society within the local limits specified in the by-laws or by the Registrar.

(7) Any other condition which the Lt. Governor may notify :

Provided that in case of Urban Co-operative Banks the Registrar may permit enrolment of such persons as member not exceeding 5% of the total number of members after considering the financial position of the Urban Co-operative Banks concerned.

(2) In accordance with the procedure laid down in its by-laws and these rules for admission of any member, a co-operative society may admit minors and persons of unsound mind inheriting share or interest of deceased members as its members through their legal representatives or guardians respectively. The members so admitted will enjoy such rights and liabilities as are laid down in the by-laws of the co-operative societies that are consistent with the Act and rules.

No individual/primary society, being a member of a primary co-operative society/federal society of any class shall be a member of any other co-operative society of the same class without the general or special permission of the Registrar, and where an individual/ primary society has become a member of two co-operative societies of the same class, either or both of the co-operative societies shall be bound to remove him from membership after giving proper opportunity to such individual/primary society in writing. The individual/primary society shall, however, have the right to appeal to the Registrar against the order of the society within thirty days after the receipt of the order of the termination of membership. The decision of the Registrar shall be final and binding on all concerned].

No co-operative society shall admit members within one month prior to the ate of a meeting of its general body.

(1) On receipt of an application for membership, the co-operative society shall enter particulars of the application in the register of applications in the following form, giving a serial No. to the application and shall issue a receipt in acknowledgement thereof:-

S. No.

Date of receipt of application

Name & Address of applicant

Decision of the committee

Date of resolution of committee

22. Ins. by Noti. No. F. 16 (9) /80/Co-op. /Legal /88/227. Published in Delhi Gazette (Extra), Part IV, dt. 9.9.1988.

(2) A co-operative society shall dispose of an application received for admission as member as early as possible and in no case later than the expiration of one month from the date of receipt of application by the society. In case of refusal to admit, such society shall communicate its decision together with reasons, therefore, to the applicant which shall be despatched to the applicant under register post:

Provided that in case of Federal Society or financing Bank, period of disposing of application from the date of its receipt shall be three months.]

(3) The appeal to the Registrar against the order for refusal to admit a member shall be made within 30 days of the date of communication of refusal.

11. Subs, vide Noti. No. F. 66/Policy/RCS/97-98/1861 dt. 6.8.1997.

[(4) The person whose application for membership has been approved by the managing committee of a co-operative society shall deposit the membership fee and the amount of qualifying share (s) necessary to become a member within 14 days of the information of admission as a member of the society sent to him in person or by Registered Post. If no such amount is deposited within the stipulated period the resolution of the managing committee approving the membership of the person concerned shall become void and inoperative.

(a)

(1) In a co-operative society with unlimited liability, a member, who is not indebted to a co-operative society and is not a surety for an unpaid debt, may withdraw from the co-operative society after giving such notice to the secretary of the co-operative society as may be laid down in the by-laws of the co-operative society.

(2) In a co-operative society with unlimited liability, a member, who withdraws or is otherwise removed or expelled from the society, shall be entitled to repayment without interest of any money paid by him or his predecessor-in-interest towards the purchase of shares after such period as may be laid down in the by-laws.

(3) Notwithstanding anything contained in the by-laws, no member of a co-operative society with limited liability shall ordinarily be permitted to seek withdrawal or refund of his shares :

Provided that where the co-operative society has created a share transfer fund out of its net profits, its managing committee may, keeping in view the overall interest of the co-operative society, allow withdrawal of shares :

Provided further that such withdrawal of shares at any time shall not exceed five per cent of the aggregate paid-up share capital of the society, excluding Government contributions, as it stood on the 30th June of the preceding year.

(b) Withdrawal of Members.

(1) Subject to the provisions of the Act, the rules and the bye-laws of a cooperative society, a member may withdraw from the society after giving three months notice to the secretary of his intention to resign his membership of the society.

(2) No resignation of a member shall be accepted by the society unless the member has paid in full his dues, if any, to the co-operative society and has also cleared his liability, if any, as surety to any other member or otherwise.

(3) Any member, whose resignation has been accepted by the co-operative society, or any heir or legal representative of a deceased member, may demand refund of the share capital held by such member or deceased member and the co-operative society shall, subject to the provisions of section 25 or section 26, as the case may be, and subject to the provisions of the by-laws, refund the amount within six months from the date of acceptance of the resignation, or as the case may be, the date of demand by the heir or legal representative of the deceased member.

(4) In all cases where share capital is to be refunded, valuation of the shares to be refunded shall be made in accordance with the provisions contained in rule 32.

(5) Irrespective of the nature of liability of a co-operative society, the share capital subscribed by the Government in a co-operative society or by a Central or Apex Co-operative Financing Institution will be retired in such a manner and during such period as may be determined by the Registrar from time to time.

(1) Where a member of a co-operative society ceases to be a member thereof the sum representing the value of his share or interest in the share capital of the society to be paid to him or his nominee, heir or legal representative, as the case may be, shall be ascertained in the following manner, namely :-

(i) in the case of a co-operative society with unlimited liability, it shall be the actual amount received by the society in respect of such share or interest;

(ii) in the case of a co-operative society with limited liability, it shall be the amount arrived at by a valuation based on the financial position of the society as shown in the last audited balance sheet preceding the cessation of membership:

Provided that the amount so ascertained shall not exceed the actual amount received by the society in respect of such share or interest.

(2) Where a person is allotted a share by a co-operative society, the payment required to be made, therefore, shall not exceed the face value of the share notwithstanding anything contained in the by-laws of the society.

(3) When a share is transferred by a member to another member duly admitted as a member of a co-operative society, the transferee shall not be required to pay anything in excess of the value of the share determined in accordance with sub-rule (1).

Every co-operative society shall maintain a register of membership, showing :-

(a) the name, address and occupation of each member, and a statement of shares held by him;

(b) the date on which the member's name was entered in the register after depositing membership fee and share money;

(c) the date on which any person ceased to be a member; and

(d) the nominee appointed by a member.

(1) No transfer of shares shall be effective unless-

(a) it is made in accordance with the provisions of the by-laws; and

(b) a clear fifteen days notice in writing is given to the co-operative society indicating therein the name of the proposed transferee, his consent, his application for membership, where necessary, and the value proposed to be paid by the transferee.

(2) After the transferee has made payment of the value of the shares so transferred and paid the value of any interest to be transferred to the society, as may be agreed upon between the transferee, the transferor and the society, transfer shall be registered in the books of the society. The transferee shall thereupon become the member of the society and shall acquire all rights of the membership and shall hold such interest as from the date approved by the managing committee.

(3) Thereafter and after all liabilities of the transferor due to the society are discharged, the transferor shall be paid the value of his shares transferred to the transferee determined in accordance with rule 32 and the value of the other interest transferred provided the value shall not exceed the amount actually paid by the transferor in acquiring such interest in the society.

(4) The transferee shall hold such share subject to charge, if any.

34A. When membership of a cooperative housing society may be transferred. Without prejudice to the provisions of the Act and these rules and by-laws of the society, the membership of a member of a co-operative housing society may be transferred to a person who has acquired freehold rights in respect of a property related to such membership in that society :

Provided that in the intervening period till a person acquires freehold rights of the property, the rights of the original member shall remain suspended in the society without prejudice to the mortgage charge of the financing institution, if the original member has raised loan for the property :

Provided further that the above provision shall become operative I immediately on intimation of the said transaction by the transferee to the committee of the concerned society and the Registrar for which due acknowledgement of the receipt of the communication shall be obtained by the transferee :

Provided also that the Registrar, every year shall fix and notify the transfer fee to be paid by the transferee to the society, the money so received shall be part of "Common Good Fund" for the society and shall be utilised only for common purposes, for which a separate account shall be maintained by the concerned society.

(1) For the purpose of transfer of his share or interest under sub-section (1) of section 26, a member of a co-operative society may, by A document signed by him or by making a statement in any book kept for the purpose by the society, nominate any person or persons. Where the nomination is made by a document, such document shall be deposited with the society during the member's lifetime and where the nomination is made by a statement, such statement shall be signed by the member and attested by one witness.

(2) The nomination made under sub-rule (1) may be revoked or varied by any other nomination made in accordance with that sub-rule.

(3) The record of nomination shall be kept by a co-operative society in such manner as may be laid down in the by-laws.

(4) When a member of a co-operative society nominates more than one person, he shall, as far as practicable, specify the amount to be paid or transferred to each nominee in terms of whole share and the interest accrued in the society.

(5) The value of the share or interest transferred or paid to a nominee or nominees shall be determined on the basis of the sum actually paid by the member to acquire such share or interest unless the by-laws provided for calculation on a different basis.

(6)

(i) Where the member of a co-operative society has not made any nomination, the society shall, on the member's death, by a public notice exhibited at the office of the society invite claims or objections for the proposed transfer of the share or interest of the deceased within the time specified in the notice.

(ii) After taking into consideration the claim or objections received in reply to the notice or otherwise, and after making such inquiries as the committee considers proper in the circumstances prevailing, the committee shall decide as to the person who in its opinion is the heir or the legal representative of the deceased member and proceed to take action under section 26, subject to any appeal which may be filed to the Registrar by any person claiming the share or interest of deceased member within 30 days of the decision of the committee. The orders of the Registrar on such appeal shall be final and binding upon all concerned.

(7) If the committee refuses to transfer the share or interest of the deceased member to his nominee or his successor-in-interest, or fails to take a decision on the application of such nominee or the successor-in-interest, as the case may be, within 30 days of the date of such refusal or the date of such application, a nominee or any person claiming to be a Successor-in-interest application, a nominee or any person claiming to be a successor-in-interest of the deceased member shall file an appeal to the Registrar, who after hearing the society and the applicant or any other person interested, shall pass such order as he may deem fit and on such condition as be may impose and order made by the Registrar shall be final and binding on all concerned.

Notwithstanding anything contained in the by-laws, any member who has been persistently defaulting in payment of his dues or the payment of claims made by a housing society for raising funds to fulfil its objects, has been failing to comply with the provisions of the by-laws regarding sales of his produce through the society or, other matter in connection with his dealings with the society or who, in the opinion of the committee, has brought disrepute to the society or he has done other acts detrimental to the interest or proper working of the society, the society may by a resolution passed by a majority of not less than three-fourths of the members entitled to vote who are present at a meeting of the committee held for the purpose, expel a member from the society

Provided that prior to placing the matter before the meeting of the committee, the member concerned shall be served with three registered notices in this regard and in case of member of a housing society, also a public notice in a leading newspaper regarding the proposed expulsion shall be given fifteen days prior to holding of the committee's meeting :

Provided further that no resolution shall be valid unless the member concerned has been given an opportunity of representing his case in the . committee of the society."

11. Subs, vide Noti. No. 66/Policy/RCS/97-98/1861 dt. 6.8.1997.

[(2) [xxx] omitted].

(3) When a resolution passed in accordance with sub-rule (1) or (2) is sent to the Registrar or otherwise brought to his notice, the Registrar may consider the resolution and after making such enquiry as to whether full and final opportunity has been given under sub-rule (1) or (2) give his approval and communicate the same to the society and the member concerned within a period of 6 months. The resolution shall be effective from the date of approval.

(4) Expulsion from membership may involve forfeiture of shares held by the member. The share shall be forfeited with the prior permission of the I Registrar. In that event, the value of the share forfeited shall be credited to the reserve fund of the society.

(5) No member of a co-operative society who has been expelled under the foregoing sub-rules shall be eligible for re-admission as a member of that society or for admission as a member of any other society of the same class for a period of three years from the date of such expulsion :

Provided that the Registrar may, on an application either by the society or the member expelled and in special circumstances, sanction the re-admission or admission, within the said period, of any such member as a member of the said

11. Subs, vide Noti. No. 66/Policy/RCS/97-98/1861, dt. 6.8.1997.

36A. Penalty for belated payment or equalisation charges for new membership on enrolment at the advanced stage of construction, and payment of interest to a member who has resigned his membership in a group housing cooperative society.

(1) In case of default in payment of demand in co-operative group housing society by the members, equalisation charges on enrolment as a member against vacancy and payment of interest on resignation by member, the maximum rate of interest charges shall be as under, which shall be approved by a resolution of the general body of the society.

(a) For default of payment of instalment upto six months- @ 12% per annum.

(b) For default of payment of instalment upto one year- @ 15% per annum.

(c) For default of payment of instalment for more than one year- @ 18% per annum.

(d) Equalisation charges/interest to be charged from the member enrolled at the advance stage of construction- @ 24% per annum.

(e) Interest to be paid by a group housing society to a resigned/expelled member on the amount deposited after deducting the administrative expenditure incurred by the society- @ 7% per annum.

("2) The Registrar shall be competent to review the above rates periodically].

(1) Every co-operative society shall prepare a list of its members as on the last day of each co-operative year. The last shall be kept open at the office of the society, during office hours for inspection by any member of the society. The list of members shall be revised thirty days prior to the date of the meeting fixed for the election of the committee of the society and shall include the members admitted and exclude the members removed during the period commencing from the date when the list was last revised and ending with the date of the revision of the list.

22. Subs, vide Noti. No. 66/Policy/RCS/97-98/1861, dt. 6.8.1997.

[(2) A list drawn in accordance with sub-rule (i) shall be supplied by the society to the member on payment of Rs. 10/- per 100 members or part thereof].

(3) A copy of the list shall be sent to the Registrar free of charge at least 14 days before the general meeting fixed to elect the members of its committee,

No member including the primary society in case of federal society shall be eligible to vote at the meeting fixed for any election, if on that date thirty days prior to such meeting a member is a defaulter to the society or is a representative of defaulting society against whom a decree has been passed under section 61.]

(1) No member of a co-operative society, who is in arrears to the society in respect of any loan taken by him, for such period as is specified in its by-laws or in any case for a period exceeding three months, shall be appointed to represent the society in any other co-operative society and to vote on its behalf in such other co-operative society.

(2) Where a member of a co-operative society so appointed falls in arrears to the society for the period specified in sub-rule (1), subsequent to his appointment, he shall cease to be representative of the society as from the end of the said period.

Without prejudice to the provisions of section 27, a person shall cease to be a member of a co-operative society on his resignation from the membership thereof being accepted or on the transfer of the whole of his share or interest in the society to another member, or on his death, removal or expulsion of incurring any of the disqualifications specified in the Act and the Rules.

(1) A member of a co-operative society or any member of the public may inspect the following documents in the office of the Registrar, and may obtain certified copies thereof, on payment of the following fees :- Per 200 words or less. Per 200 words or less.

(i)

Application for registration of co-operative society

0.75 P

(ii)

Certificate of registration

0.75 P

(iii)

By-laws of societies

0.75 P

(iv)

Amendment of by-laws of a society

0.75 P

(v)

Order of cancellation of the registration of a society

0.75 P

(vi)

Audit report of a society

1.00P

(vii)

Annual balance sheet

1.00P

(viii)

Order under section 59

0.75 P

(ix)

Order referring a dispute for decision

0.75 P

(x)

Order of supersession of a committee or removal of any member thereof.

0.75 P

(xi)

Any decision, order, award, and judgment against which an appeal is provided

0.50 P

(2) A member of the co-operative society or a member of public can inspect all or any of the documents referred to in sub-rule (1) after paying inspection fee of Rs. 1. The inspection fee of any of the above documents will be for all or any of these documents which shall be specified in the application for inspection.

(3) An application accompanied by a receipt for the approximate amount deposited with the Registrar, of the charges for inspection or obtaining copy, shall be made to the Registrar specifying the nature of document required. All such applications shall be complied within a fortnight of the receipts of the application. Any deficiency in copying charges shall be made up at the time of taking delivery of the copy. If the receipt for deposit of the amount is not attached, the application will not be considered valid.

(4) A copy of any of the documents referred to in sub-rule (1) shall be certified by the Assistant Registrar as true copy of the original with the following endorsement made thereon :-

(i) Date of receipt of application,

(ii) Date on which the copy was ready for delivery,

(iii) Date on which delivered,

(iv) Copying charges,

(v) Certified to be true copy of the original. Prepared by.......................... Signature Asstt. Registrar. Checked by.......................Seal Where under any rule or order a copy of any decision, order, award, and judgment is required to be attached with the memorandum of appeal, only a copy having the endorsement referred to in this sub-rule and signed by the Assistant Registrar shall be a valid copy for that purpose.

Every co-operative society shall maintain accounts and books for the purpose of recording business transactions by it and close them every year on the 11. Subs, by Noti. No. F. 16 (9) /80/ Coop./Legal/Published in Delhi Gazette (Extra), Part IV,dated 18.5.1989. [31st March by the 30th April]. Each closing entry in the cash book in each ledger account shall be signed by the President, the Secretary and the Treasurer or any other approved members of the society authorised by the managing committee. The closing balances which are thus authenticated shall be carried forward to the following year commencing on the 1st April. For the purposes of calling the annual general body meeting as provided in section 29, the date fixed for making up the accounts for the year shall be the 30th April of each year.

Every co-operative society shall keep and maintain the following accounts and books for the purpose of recording the business transacted by it:-

(a) Minute books for recording the proceedings of the general body.

(b) Register of applications for membership containing the name and address of the applicant, the date of receipt of application, the number of shares applied for and in case of refusal, and the date of communication of the decision refusing admission to the applicant.

(c) Admission book, showing the name and address of each member, the date of admission, the shares taken by him and the amount paid by him towards such shares and the amount of share capital, if any, refunded to him together with the date of each such payment and refund.

(d) Nomination register.

(e) Cash book, showing daily receipts and expenditure, and the balance at the end of each day.

(f) Receipt book, containing forms in duplicate, one of each set to be issued for money received by the society and the other to serve as counterfoil.

(g) Voucher file, containing all vouchers for contingent expenditure incurred by the society, log numbered serially and filed chronologically.

(h) Ledger of borrowings, showing deposits and other borrowings of all kinds,

(i) In the case of societies issuing loans :-

(i) Loan ledger, showing the number and date of disbursement of each loan issued to members, the amount of loan, the purpose for which it is granted and the date or dates of repayment, distinguishing principal and interest.

(ii) Liability register, showing the indebtedness of each member to the society whether on account of loan taken directly by hm or on account of loan for which he stands as surety.

(j) In the case of a society with unlimited liability, property statement of members showing the assets and liabilities of each individual member on the date of his admission with full details of the property including the survey number of the lands, the statement being revised as often as may be necessary and in any case at least once in three years and such statements being entered in a register in a stitched volume,

(k) In the case of a society, the working capital of which exceeds twenty thousand rupees, general ledger showing receipts and disbursements and the outstandings under various heads from day to day.

(l) In the case of a Co-operative Bank, register of fluid resources showing the immediate liabilities of the society and the extent of fluid resources available to which the Bank Regulation Act, 1949 applies according to the instructions of the Reserve Bank,

(m) Monthly register of receipts and disbursements,

(n) Register of dividend.

The Registrar may, by order in writing, direct any co-operative society to get any or all of the accounts and books required to be kept by it under rule 43 written up to such date, in such form and within such time as he may direct. In case of failure by any co-operative society to do so, the Registrar may depute an officer subordinate to him to write up the accounts and books. In such case it shall be competent for the Registrar to determine, with reference to the time involved in the work and the emoluments of the officer deputed to do so, the charges which the society concerned shall pay to the Government and to direct its recovery from the society.

(1) For the purpose specified in sub-section (1) of section 41, a copy of any entry in a book of a society regularly kept in the course of business shall be certified :-

(i) by the President or Secretary and by not less than two members of the committee.

(ii) where an order has been passed under section 32 dissolving the committee and appointing an administrator by the Registrar, or any officer authorised by him.

(iii) where an order has been passed under sub-section (1) of section 66 appointing a liquidator of the society by the liquidator.

(2) Every certified copy shall bear the seal of the co-operative society.

(1) Every co-operative society shall prepare for each co-operative year :-

(a) a statement showing the receipts and disbursements for the year in Form 11;

(b) a profit and loss account in Form 12;

(c) a balance sheet in Form 13; and

(d) such other statement of return as may be specified by the Registrar from time to time.

(2) Every balance sheet of a co-operative society shall give a true and fair view of the state of affairs of the society as at the end of the cooperative year. Every profit and loss account of the society shall give a true and fair view of the profit and loss of the society for the cooperative year. Every co-operative society shall submit to the Registrar annually within 11. Subs, by Noti. No. 16 (9)/80/Coop/Legal Published in Delhi Gazette (Extra) Part IV. dt.18.5.1989. [April] each year a copy of each of the statements specified in sub-rule (1).

Explanation. For purposes of this sub-rule any reference to balance sheet or profit and loss account, shall include any subsidiary statements or documents annexed thereto and any notes thereon.

(3) Without prejudice to sub-rule (1) every consumers' society and every producers' society, any other society, if so, required by the Registrar by order shall submit to him annually within such time as may be specified in that order, a statement of verification of the stock at the close of the preceding co-operative year of articles in which the society transacts business.

(4) In case of failure by any society to submit any statement or return specified in sub-rule (1), (2) or (3) within the time specified therein, the Registrar may depute an officer to prepare the necessary statement or return. In such cases it shall be competent for the Registrar to determine with reference to the time involved in the work and the emoluments of the officer deputed to do so, the charges which the society concerned shall pay to the Government and to direct its recovery from the Society.

The books and records of a co-operative society shall be preserved as is set forth in Schedule I or as may from time to time be directed by the Registrar. A list of record destroyed from time to time shall be prepared and kept by the Secretary.

(1) The Committee of a co-operative society shall specify which of the officers of a Society shall :-

(a) keep the books of account;

(b) keep other books and registers; and

(c) prepare returns and statements :

Provided that a person charged with the keeping of accounts shall not be the incharge of cash.

(2) If the committee of a co-operative society has not specified the officers required to be specified in sub-rule (1) notwithstanding anything contained in the by-laws of the society, the following officers shall be responsible for keeping accounts, records, etc. indicated against each, namely :-

(a) Treasurer He shall keep or cause to be kept all the books of accounts and vouchers and shall prepare or cause to be prepared annual profit and loss account, receipt and disbursement account and the balance sheet. Whosoever may be writing these books of accounts, they shall always be deemed to be in his custody, possession, power and control. He shall be responsible for their safe delivery to his successor after making a list of documents handed and taken over.

(b) Secretary He shall keep or cause to be kept all other records of the society and shall be responsible for preparation and submission of various returns to the Registrar. Whosoever may be keeping these records, these shall always be deemed to be in his custody, possession, power and control. He shall be responsible for making over the charge of this record to his successor under proper charge report to be signed by the relieving and the relieved officers.

(c) Cash Cash balance in hand shall always remain in the hands of the Treasurer or any other official appointed by the committee and such treasurer or official authorised shall sign the cash book against closing cash in hand."

(1) Every co-operative society shall from time to time determine at a meeting of the committee the minimum members of paid staff required for its business. The committee shall prescribe their qualifications and experience and the emoluments. The committee shall be competent to appoint, dismiss or remove any paid staff.

(2) The minimum paid staff of a co-operative bank and any co-operative society with a working capital or annual transactions of rupees five lacs or over shall be :

(i) One Secretary or Manager.

(ii) One Accountant,

(iii) One Cashier.

(1) In the co-operative societies of all classes including Financing Bank, the appointment of paid staff shall be subject to such directions as the Registrar may from time to time issue in regard to their technical and educational qualifications and in regard to their minimum number and pay and allowances and security deposits.

(2) No society of the class referred to in sub-rule (1) shall appoint any person as its paid officer or servant in any category of service, unless he possesses the qualifications prescribed by the Registrar from time to time. No society shall retain in service any paid officer or servant if he does not acquire the qualifications within such time as the Registrar may direct. The Registrar may, for special reasons, relax in respect of any paid officer or servant or a class of officers servants the provisions of the rule in regard to qualifications etc.

(3) 11. Subs. vide Noti. No. 66/Policy/RCS/97-98/1861 dt. 6.8.1997. [No near relative of any member of a committee or a member of the committee of financing bank to which the society is indebted shall be appointed as its paid staff. ]

Explanation.-'Relativeincludes anyone related to the person concerned or to his wife through a common ancestor not more than a grant-father or anyone married to a person so related.

(1) Without prejudice to the provisions of sections 29 and 30, the meetings which shall be convened by a co-operative society of its general body shall be:-

(a) preliminary general meeting;

(b) annual general meeting; and

(c) special general meeting.

(2) Notwithstanding anything contained in the Act, rules and by-laws, every co-operative society shall within a period of not less than one month and not more than three months from the date of its registration, hold a general meeting which shall be called "preliminary general meeting". In this meeting the following business shall be discussed and decided :-

(a) approval of allotment of shares, amount .collected and amount spent in connection with registration of the society before registration;

(b) election of members of the committee; and

(c) programme of activities and the budget estimates for the ensuing year.

(3) Without prejudice to the provisions of section 29, every co-operative society shall hold a meeting of its general body which shall be styled as its "Annual General Meeting" at the intervals and in accordance with the provisions specified below :-

(a) the first annual general meeting shall be held within eighteen months of its registration.

(b) the next annual general meeting shall be held by the society within six months of [15th April] following the expiry of the co-operative year in which the first annual general meeting was held and thereafter an annual general meeting shall be held within six months after 15th July following the expiry of each co-operative year;

(c) except in the case where in the exercise of his powers under section 29, the Registrar has extended the time for holding the annual general meeting by any co-operative society, not more than fifteen months shall elapse between the date of one annual general meting and that of the next.

22. Subs, vide Noti. No. F. 66/Policy/RCS /97-98.1861 /dt. 6.8.1997. (d) Where a managing committee of the society fails to hold the general body meeting within the prescribed time limit referred to above, the Registrar, shall call a general body meeting of the society to transact the business as provided under section 29 and the expenditure incurred thereon shall be a charge on the delinquent members of the committee of the society who have failed to conduct the general body meeting of the society within the prescribed time limit. The said amount shall be recoverable as arrears of land revenue from such delinquent members of the committee of the society by the Registrar.]

(4) A requisition for a special general meeting to be convened under section 30 shall state the object of the meeting, time and date of the meeting, and shall be signed by the members or the Registrar, as the case may be, and shall be sent to the registered office of the society. On receipt of the requisition as aforesaid, it shall be considered by the committee of the society which shall convene the special general meeting or direct its Secretary to convene the special general meeting. At special general meeting no business other than that specified in the notice shall be transacted.

(1) A co-operative society with limited liability may, if its area of operation extends to the whole of the Union territory of Delhi or its

(2) Where a co-operative society so provides in its by-laws to constitute a representative general body, it shall with the permission of the Registrar, divide its members into different groups on a territorial or other basis.

(3) The by-laws of such a society may specify the number or proportion of the members of the representative general body who may be elected to represent each such group :-

(a) by all the members of the society :

(b) by only that particular group of members of the society to which such representatives belong.

(a) ceases to be a member of the society; or

(b) resigns his office as a delegate.

(1) Notwithstanding anything contained in the by-laws, the quorum for a general meeting shall be one-third of the total number of members subsisting as such on the date of notice of the meeting subject to a minimum of ten members;

(2) No business shall be transacted at any general meeting unless there is a quorum at a time where the business of the meeting is due to commence.

11. Ins. by Noti. No. F. 16(9) /90/Coop./Legal/88/227, Published in Delhi Gazette (Extra) Part IV, dt. 9.9.1988.

[(3) If within an hour from the time appointed for the meeting, a quorum is not present, the meeting shall stand adjourned for one hour on the same day, which would be specified in the notice calling the meeting, but if the meeting is called upon the requisition of members of the Society (not of the Registrar), it shall stand dissolved :

Provided that at the adjourned meeting, no quorum shall be necessary.

(4) If at any time during the meeting sufficient number of members is not present to form a quorum, the Chairman/President of the meeting on his own motion or on his attention being drawn to this fact, shall adjourn the meeting at such convenient time, date and place as he thinks fit, and the business to be transacted at the adjourned meeting shall be transacted in the usual manner even if no quorum is there present.

(1) Without prejudice to the provisions of section 29, the general meeting alone shall have the powers to transact the following business :-

(a) fixing the maximum credit limit of a co-operative society subject to the approval of the Registrar.

(b) election, suspension and removal of members of the committee other than the nominated members :

Provided that an interim vacancy of the committee may be filled up by co-option by the remaining members of the committee till the election is held,

(c) Expulsion of the members.

(1) A resolution which is put to the vote of a general meeting shall be decided by a show of hands unless (whether before or after the declaration of the result of the show of hands) a poll is demanded by at least ten members and agreed to by the Chairman and if no poll is demanded, a declaration by the Chairman of such meeting that a resolution has been carried or lost and an entry to that effect in the minutes of the proceedings shall, for the purposes of the Act, be conclusive proof of the fact that such resolution has been duly carried or lost but it shall not be proof of the number or proportion of the votes recorded in favour of or against such resolution.

(2) If a poll is demanded, the votes shall be taken in such manner and at such time as the Chairman of the meeting directs subject to any provision in the by-laws in this behalf, and the result of such poll shall be deemed to be the decision regarding the resolution over which the poll is demanded.

(3) Subject to the rules and the by-laws, when a poll is taken, the voting may be by ballot, if the Chairman of the meeting so decides.

(4) When a poll is taken the number of members voting for or against a resolution shall be recorded in the minutes of the proceedings.

(1) Annual general meeting of a co-operative society may be called by giving not less than 14 days' notice in writing.

(2) Special general meeting of a co-operative society may be called by giving not less than seven days' notice in writing.

(3) Notwithstanding anything contained in the by-laws, when a general meeting is called under the proviso to sub-section (1) of section 29, or in pursuance of sub-section (2) of section 30, the Registrar may determine the period of notice for such meeting, the time and place of the meeting and the subject to be considered thereat. The Registrar may preside over such meeting or authorise any person to so preside.

(4) Notice of every general meeting of a co-operative society shall be given to every member of the society either personally or by sending it by post to him at his registered address in the Union territory of Delhi, or if he has no registered address in Delhi to the address, if any, out of Delhi supplied by him to the society for giving notices to him. Where the notice is sent by post, service thereof shall be deemed to be effected after the expiry of forty-eight hours after the letter containing the notice is posted by properly addressing, prepaying and posting it, provided that where a member has intimated to the society in advance that notice of a general meeting should be sent to him by registered post with or without acknowledgement due and has deposited or has given undertaking to deposit with the society a sum sufficient to defray the expenses of doing so, the service of the notice shall not be deemed to be effected unless it is sent by registered post.

11. Subs. vide Noti. No. F 1 (13)/AR (L) /RCS/Coop./140 Dt. 8.11.1993.

[(5) In ail Co-operative Societies including the class of Co-operative Societies prescribed for the purpose of sub-section (1) of Section 31, one post shall be reserved for women in the Managing Committee.]

(6) The notice of an annual general meeting shall be accompanied by a copy each of audited balance sheet and profit and loss account together with the audit report therein relating to the preceding year and the report of the committee.

(1) Every co-operative society shall cause minutes of proceedings of general meetings to be entered in a book kept for that purpose.

(2) Unless the minutes are drawn up and are duly signed by the Chairman immediately or corrections, shall be drawn up and shall be signed by the Chairman of the meeting within four working days from the time when the meeting terminated. The minutes so signed shall be evidence of the proceeding of the meeting.

(3) Until the contrary is proved, every general meeting of a society in respect of the proceedings whereof minutes have been so recorded shall be deemed to have been duly called and held.

(1) Notwithstanding anything contained in these rules or the by-laws and without prejudice to the generality of the powers of the Lt. Governor in sub-section (1) of section 31, election of members of the committee of a class of society specified below shall be conducted in the manner given in Schedule II, namely :-

(a) Federal Society,

(b) Financing Bank.

(c) Consumers' Society

(d) T and C Urban Co-operative Banks.

11. Subs. vide Noti. No. F 1 (13)/AR (L) /RCS/Coop./140 Dt. 8.11.1993. (e) Housing societies.

(f) Any other society whose membership exceeds two hundred.]

(2) Notwithstanding anything contained in the by-laws, the election of the members of the committee of a society of any class not falling under classes specified in sub-rule (1) shall be by show of hands in the manner given in Schedule III unless a poll is demanded in which case it shall be held by secret ballot.

11. Ins. by Noti. No. 16 (9)/80/Coop. /Legal/88/227 Published in Delhi Gazette (Extra) Part IV, dt. 9.9.1988.

(3) Every cooperative society shall hold elections of its committee in the manner as prescribed in Sub-Rule (1) or (2) above, as the case may be, within 30 days from the expiry of one year from the date of last election of its committee :

Provided that in case a co-operative society fails to conduct election of its committee within the period specified above, the Registrar may after issuing the requisition under section 30 (1) of the Act, appoint an election officer to call a Special General Body Meeting of the co-operative society and hold election of its committee provisionally within 60 days from his appointment :

"Provided for the reason beyond the control of the election officer, he may conduct the election of the committee, after the expiry of 60 (sixty) days by taking extension of time from the Registrar : The Registrar may grant extension of time for conducting election specifying the reasons for such extension.

(4) Notwithstanding anything contained in Rule 62 hereinafter provided, where the Registrar appoints election officer under Sub-Rule (3), he shall order the election of all the members of the Committee irrespective of their terms of retirement provided thereunder :

Provided that all such elections shall be conducted by secret ballot by the Election Officer appointed by the Registrar irrespective of any provisions made thereunder in Sub-Rules (1) and (2) and Schedule II and III and Rule 58.]

Provided that in the case of a federal cooperative society, the primary society shall be asked to intimate the name of its delegate who is not a defaulter to the society, or any other society on or before the prescribed date for the purpose fixed by the returning officer appointed by the Lt. Governor . In respect of the delegate so nominated by a primary society, his details alongwith photograph, a copy of the resolution of the primary society shall be forwarded to the returning officer so as to reach his office on or before the prescribed date. If any society has not responded to the notice of the returning officer upto the prescribed date and time , the said primary society shall not be eligible to participate in the elections to be conducted thereafter.

22. Subs. vide Noti. No. 66/Policy/RCS 197-98/1861, dt. 6.8.1997. [

(5) In all cooperative societies, including the class of cooperative societies prescribed for the purpose of sub-section (1) of section 31, two posts shall be reserved for women in the committee.

Provided that in case no woman comes forwed to contest the election, the committee shall be competent to co-opt women member (s) subsequently within a period of one month of the election.]

58A. For the purpose of sub-section (1) of section 31, the classes of cooperative societies are prescribed as under :-

(1) Societies constituted under the Multi-unit Co-operative Societies Act, 1942.

(2) Federal Co-operative Societies.

(3) Financing Bank.

(4) Urban Thrift and Credit Banks.

No person shall be eligible for election as a member of the Committee if-

(a) he is in default to any co-operative society in respect of any sum due from him to the society.

(b) he has, directly or indirectly, any interest in any contract to which the co-operative society is a party except in transaction made with the cooperative society as a member in accordance with the objects of the society as stated in the bye-laws.

(c) he has, at any time, during a period of one year prior to the date of scrutiny of nomination papers, when engaged in any private business, trade or profession of any description which is carried on by the society.

[(d) He has committed any offence involving dishonesty or moral turpitude during the period of five years prior to the date of scrutiny of nomination paper or he has been ordered to repay or restore the property or money or any part thereof under sub-section (2) of section 59 by the Registrar.]

(e) he is subject to any of the prohibitions contained in rule 60.

11. Subs, by Notification No. F-2/Legal/Co-op/94/1105-1109 dt. 15.7.1994.

[(f) he, during a period of 12 months preceding the date of filing of nomination papers, has been carrying on, through agencies other than the co-operative society of which he is a member, the same business as is being carried on by the co-operative society.

(g) he is a member of an elected committee of any co-operative society which has ceased to function or which has not fulfilled its objects as stated in its by-laws and has been included in the list of 'D' class societies maintained by the Registrar, or is a member of an elected committee of a society which is under winding up process;

(h) he has ceased to be a member of an elected committee of any cooperative society within a period of one year preceding the date of inclusion of such society in the list of 'D' class societies maintained by the Registrar on the operation of order of winding up of such society under section 63;

(i) he incurs any other disqualification laid down in the by-laws of the society;

22. Ins. by Noti. No. 16 (9)/80/Co-op/Legal/88/227. Published in Delhi Gazette (Extra) Part IV,dt. 9.9.1988.

[(j) He is near relative of the paid employee of the society. Explanation : For the purpose of this clause, the expression near relative shall include father, mother, wife, husband, sons, daughter, son-in-law, daughter-in-law, sister, brother and children of son, daughter brother or sister.

(k) he has not completed minimum period of one year from the date of acquiring membership in the society in case of an urban co-operative bank.]

(1) a person shall not be eligible to contest election for the committee/board of directors of any class of co-operative society simultaneously on two seats :

Provided that if a sitting member contests the election for another seat, he shall resign from that seat before filing the nomination paper. 11. Subs, vide Noti. No. 66/Policy/RCS/97-98/1861 dt. 6.8.1997.

A member of the committee shall cease to hold his office as such if he :-

(a) continues to be in default in respect of any sum due from him to the cooperative society for such period as may be laid down in the by-laws;

(b) ceases to be a member;

(c) is declared insolvent;

(d) becomes of unsound mind;

(e) is convicted of an offence involving dishonesty or moral turpitude; or

(f) becomes subject to any disqualification which would have presented him from seeking election, had he incurred that disqualification before election.

(1) Without prejudice to the provisions of the bye-laws no officer of a cooperative society shall have an interest, directly or indirectly, otherwise than as such officer-

(a) in any contract made with the society; or

(b) in any property sold or purchased or leased by or to the society; or

(c) in any other transaction of the society except as investment made or as loan taken from the society or the provision of residential accommodation by the society to any paid employee of the society.

(2) No officer of a co-operative society shall purchase, directly or indirectly, any property of a member of the society sold for the recovery of his dues to the society.

(3) The prohibition contained in this rule shall continue to apply for a period of two years after a person ceases to be an officer of the society.

Omitted

A delegate of one society sitting on the committee of another society shall vacate his seat in such committee :-

(a) if the society which elected him as a delegate withdraws him or elects another delegate in his place; or

(b) if the committee of the society which elected him as a delegate has been superseded; or

(c) if the society of which he is a delegate becomes defunct or commits default and continues to be a defaulter for a period exceeding three months; or

(d) if the affairs of the society of which he is a delegate are ordered to be wound up.

Notwithstanding anything contained in the by-laws of the Financing Bank, the maximum strength of the Board of Directors shall be sixteen including three Government nominees, nominated by the Government. The remaining thirteen Directors shall have five institutional Directors and eight elected Directors as under :-

(a) Institutional Directors.

(i) One seat reserved for Urban Cooperative Banks Federation,

(ii) One seat for Delhi State Cooperative Union,

(iii) One seat for Delhi Cooperative Housing Finance Corporation Ltd.

(iv) One seat for Delhi State Agricultural Cooperative Marketing and Supply Federation Ltd.

(v) One seat for Delhi State Women Cooperative Marketing and Services Federation Ltd.

(b)Elected representatives.

(i) Two representatives of Urban Thrift and Credit Cooperative Societies.

(ii) One representative by Rural Cooperative Societies except Delhi State Cooperative Agricultural Marketing and Supply Fedretion Ltd.

(iii) One representative by Weavers(Handloom)cooperative Societies.

(iv) One representative by Inustrial/Labour/Transport/Cooperative societies including individual member.

(v) One representative of Weaker sections cooperative societies,

(vi) One representative of SC/ST Cooperative societies (Reserved),

(vii) One representative of Women Cooperative Societies other than Federations (Reserved).

(1) A committee of a co-operative society shall exercise all the powers of the society and discharge all the duties as may be specified in its bylaws by means of resolutions passed at its meetings. No resolution shall be passed by circulation.

(2) A committee shall meet as often as required but a meeting shall be held at least once in every month, in case of Primary Societies and once in three months in case of Federal Societies and Financing Bank provided that where the committee fails to hold meeting for 3 consecutive months in case of Primary Co-operative Societies and 9 months in case of Federal Societies and Financing Bank, the Registrar may appoint the Election Officer for conducting the Election of the managing committee of such primary society, Federal Society or Financing Bank.

11. Subs by Noti. No. F 16 (9)/80/Coop. /Legal / 88/227. Published in Gazette (Extra), Part IV dt. 9.9.1988.

(3) Notice of every meeting shall be given to every member of the committee in writing under the signature of the President or Secretary at least 5 days prior to the scheduled date of meeting which must be served either personally or by post under certificate of posting. Whether the notice is sent by post services thereof shall be deemed to be effective after the expiry of 48 hours after the letter containing the notice is posted properly, addressing, pre-paying, posting it. Provided that where a member has intimated to the society in advance that notice of a committee meeting should be sent to him by Registered Post with or without acknowledgement due and has deposited or has given undertaking to deposit with the society a sum sufficient to defray the expenses of doing so the service of notice shall not be deemed to be effective unless it is sent by Registered Post. However, in case of an emergent meeting, the service of such notice of the emergent meeting must be ensured at least 24 hours before the scheduled date and time of the meeting.]

11. Subs, vide Noti. No. F 66/Policy/RCS/97-98/1861/ dt. 6.8.1997.

[4) If a member of the committee of a society fails to attend its three mandatory meetings (monthly)/quarterly) consecutively, he shall be given notice of it by registered post and shall be deemed to have vacated his office and from that date shall cease to be a member of the committee. The vacancy shall be filled in by co-option by other members of the committee.]

(5) Notwithstanding anything contained in the by-laws of any cooperative society, the committee of a cooperative society shall cause minutes of all proceedings of its meeting to be entered in the book for the purpose in handwritten at the spot in presence of members present and voting. The minutes of each meeting shall contain the names of the members present, names of the members, if any, dissenting from or not concurring in any of its resolutions. At the end of the minutes each member present and voting shall sign them. If the minutes are not made and recorded in this manner, they shall not be considered valid and under such circumstances, it shall be presumed that no meeting was held :

Provided that in case of urban cooperative banks, urban thrift and credit societies and co-operative federations, the proceeding shall be signed by the Chairman of the meeting and shall be confirmed in the next meeting of the committee.

(1) The notice to show cause why the committee of a co-operative society should not be removed under section 32 shall contain the grounds on which the proposed action is contemplated and shall be addressed to the Chairman/President of the society and sent to him at his last known address, if any, or at the registered address of the society by registered post. The service of the notice shall be complete as soon as the letter containing this notice is posted.

(2) As soon as the order removing the committee is made by the Registrar under section 32, all the members of the committee shall be deemed to have vacated their respective offices from the date of the order and shall hand over charge of the assets and liabilities and record of the society to a person appointed by the Registrar or to the Administrator appointed by him.

(1) A declaration required to be made under clause (i) and clause (ii) of section 37, shall be in Form 14.

(2) A register of such declaration shall be kept by the co-operative society in Form 15.

(3) A charge on any immovable property created by a member in favour of a cooperative society for amounts borrowed or likely to be borrowed by him : from time to time, shall, subject to the provisions of clauses (iv) and (vi) of section 37 continue in force till the person creating the charge ceases to be a member of the society.

(4) Where a member of a society creates a charge on his land or on his interest in any land as a tenant by declaration under section 37, the society may, if compelled to make use of such property for the recovery of the loan granted to such member against the security of such property or onterest in the property, utilise the whole or any portion of such property which may be sufficient to satisfy the amount due with interest and any incidental expenses incurred in that connection.

(5) Where a charge is created by a member on his land or on his interest in any land as a tenant by declaration under section 37, the society shall record or cause to be recorded such particulars of charge in the Record of Rights maintained by the village officers of the village where such property is situated. Such recording of the charge in the Record of Rights of the village shall be treated as a reasonable notice of such charge created under section 37.

(6) Without prejudice to the generality of the powers given in Explanation below section 371 [Financial Bank] all agricultural credit and non-credit co-operative societies shall come within the purview of section 37 from the commencement of the rules.

22. Subs. vide Noti. No. F 66/Policy/RCS/97-98/1861/ dt. 6.8.1997.

(1) A cooperative society shall receive deposits and loans only to such extent according to the following parameters or as per provisions contained in the by-laws. The general body of a society shall be competent to fix the maximum credit limit in respect of the society based on the audited accounts and the committee of a society shall be competent to fix the maximum credit limit of an individual borrower."

(ii) for the opening part of sub-rule (2) reading as "Without prejudice to the generality of the powers of the Registrar under sub-rule (1) the M.C.L. of the cooperative society may be fixed by the general body at any limit but not exceeding the limits given below", the following shall be substituted, namely :-

"(2) The M.C.L. of a cooperative society may be fixed by the general body at any limit but not exceeding the limits given below":-

(i) Society other than Consumers, Housing and Financing Bank.

(a) Society classified 'A' during the last audit. Seven times the paid-up share capital plus accumulated reserves and undistributed profits minus the total of losses and loans falling overdue payable to Financing Bank and other agencies.

(b) Societies classified 'B' and 'C' during the last audit. Five times the paid-up share capital plus accumulated reserves and undistributed profits minus the total of losses and loans fallen overdue payable to Financing Bank and other agencies.

(c) Societies classified 'D' in the last audit and newly registered societies. Three times the paid-up share capital less loss and overdues. Explanation.-The classification of societies as (A) (B) (C) and (D) shall be made on the norms specified in Schedule VI (Annexed),

(ii) Consumer Societies. Against hypothecation or pledge of goods, the M.C.L. will be equal to the aggregate of paid-up share capital, accumulated reserves, undistributed profits and value of the goods in stock hypothecated or pledged,

(iii) Housing Societies Twenty times the paid-up share capital plus accumulated reserves and profits provided the repayment of principal and interest is secured by mortgage or pledge of tangible assets and securities,

(iv) Financing Bank. Fifteen times the paid-up share capital plus accumulated reserves minus losses, actual bad debt and overdue interest recoverable.

Provided that the Registrar may reduce or increase the above M.C.L. at the time of according his approval.

(3) A co-operative society which accepts deposits and loans from members alone and has no liability to any person other than the members, may receive deposits and loans from the member in excess of the limit referred to in sub-rule (2) if the excess amount is deposited in the fixed deposit account with the Financing Bank or is invested in Govt. securities specified in section 20 of the Indian Trust Act, 1882 provided that the amount so deposited or invested or any part thereof is not withdrawn or otherwise utilised except for the payment of the deposit accepted in excess of the aforesaid limit.

(1) Every co-operative society, which has a share capital, shall provide in the by-laws the maximum amount of such share capital, the number of shares into which it is divided, the class of shares, the face value of each share of each class and the rights and liabilities attaching to each class of shares and where the full amount of the shares is not payable on allotment, the amount and the number of instalments in which it is required to be paid and such other incidental matters.

(2) Any co-operative society, which is authorised under its by-laws to raise funds by the issue of debentures and bonds may, with the prior sanction of the Registrar , frame regulations regarding the maximum amount to be raised by the issue of debentures and bonds, the class or classes of debentures and bonds, the face value of each debenture or bond, the date on which the debentures or bonds are to be redeemed, the rate at which interest is payable, the terms and conditions regarding transfer of debentures and bonds and other incidental matters.

(3) The total amount of debentures and bonds issued at any time together with the other liabilities incurred by the society, shall not exceed the maximum amount which the society can borrow under the provisions of rule 68, and its by-laws.

(4) The Registrar may, by general or special order, lay down such additional conditions as he deems fit, subject to which and the extent upto which any co-operative society or class of co-operative societies may receive deposits, issue debentures or raise loans from any creditor other than the Financing Bank.

Every co-operative society which obtains any portion of its working capital by deposits, shall :-

(i) maintain such liquid resources and in such form as may be specified by the Reserve Bank of India in the case of Urban Thrift and Credit Banks and Financing Bank and by the Registrar in case of other Societies; and

(ii) utilise only such portion of its working capital in lending business and distribute its assets in accordance with such standards as may be specified from time to time by the Registrar.

(1) In case of grant of loans against security movable or immovable property, the lending co-operative society shall maintain such margin as the Registrar may, by general or special order, direct from time to time with reference to different commodities, securities or classes of cooperative societies.

(2) It shall be lawful for a society to grant loans without taking security of movable or immovable property if the purpose for which the loans given in considered production-worthy or credit-worthy, and it is reasonably expected that the loans will be repaid by the loanee. The Registrar may issue directions to the co-operative societies to ensure that credit-worthy purposes indicated above receive finance from the societies without any difficulties on the one hand, and without being detrimental to the financial interest of the societies on the other.

(3) Except with the general or special permission of the Registrar, the loan advanced to a member by a society, or to a co-operative society by the Financing Bank, shall be subject to such conditions as may be laid down by the Registrar, with the approval of the Financing Bank, including the maximum amount to be advanced and the period of repayment, both in regard to total advances to members and societies as also against different types of securities.

(4) No society shall carry on transactions on credit or sanction trade credit to its members or to non-members except in accordance with the general directions that may be issued by the Registrar in that behalf.

(5) In the matter of grant of loans to societies by the Financing Bank or to members by primary co-operative societies, the Registrar may lay down, with the approval of the Financing Bank, the procedure regarding receiving applications, assessing credit needs, making inquiries in respect of the production programme for which such loan is required and the procedure for finally sanctioning the loan as also the rates of finance to be followed from year to year and the nature of inquiries to be made for the purpose of financing of different crops and imposition of certain conditions regarding proper utilisation of loan and sale of agricultural produce through specified co-operative organisations before such finance is granted.

(6) The Registrar may by general or special order prohibit or regulate grant of loan by the Financing Bank or a co-operative society where such grant is considered neither in the interest of the co-operative society not in the interest of the development of cooperative movement on sound lines.

(1) Every member of a co-operative society applying for a loan from the cooperative society shall be required to hold shares in such manner and in such proportion to the amount of loan applied by him as may be specified in the by-laws of the co-operative society.

(2) Subject to the maximum limit specified in the by-laws, a loan to be granted to a member of a resource society, and the period of its repayment shall be in accordance with the standard laid down by the Registrar. A loan in excess of the maximum amount may be granted to a member with the previous sanction of the Registrar.

(1) No co-operative society whose objects do not include grant of loan or financial accommodation to its members shall grant loans or sanction credit to any member without the sanction of the Registrar :

Provided that any co-operative society which has as some of its objects, supply of goods or services required by members for production purposes, may supply goods or provide service on credit against sufficient security on condition that the cost of the goods supplied or services provided shall be recoverable from the amount of the sale proceeds of the agricultural produce or other goods produced by the members.

(2) A consumer co-operative society may sell goods on credit to its members and other customers upto the extent of deposits received from them.

(1) Notwithstanding anything contained in the agreement entered into with the borrowing member, the committee of a co-operative society shall be entitled, after giving a week's notice to such member, to recall the entire loan amount immediately, when it is satisfied that the loan given has not been applied for the purpose for which it was given or there has been breach of any of the conditions for grant of such loan.

(2) Nothing in this rule shall be deemed to preclude the Registrar from directing the co-operative society to recall a loan of his own motion, when it is brought to his notice that the loan given by the society has been misapplied or conditions thereof have not been followed. The Registrar may make in the matter such inquiries as he may deem necessary and after giving a show cause notice to the co-operative society issue, with the prior approval of the Financing Bank, necessary directions to the co-operative society. The directions issued by the Registrar in this respect shall be complied with by the co-operative society.

The shares of society shall not be hypothecated to that society but its members as a security for a loan.

No society shall make any loan to a member on a bond secured by the suretyship of a non-member, provided that the Registrar may for special reasons, exempt any society by name from the operation of this rule.

The Registrar may , from time to time, issue such directives as he considers necessary for the successful conduct of the business of a co-operative society or class of co-operative societies.

(1) Loans and subsidies to a co-operative society or class of co-operative societies may be granted by Government by a general or special order from time to time.

(2) An application by a co-operative society for a loan or subsidy or both from a Government Department or a Government sponsored agency shall be made through the Registrar. While forwarding the application, the Registrar shall record his opinion regarding the eligibility of the cooperative society for the said loan or subsidy or both, its financial position and the desirability of sanctioning to the society the said loan or subsidy or both.

(3) A co-operative society receiving Government loan or subsidy or a society in which a share or shares have been subscribed or liability by way of guarantee has been undertaken by the Government, shall furnish such information and submit such returns as the sanctioning authority or the Registrar may, from time to time, require.

(4) In case of default in repayment of loans, the financing bank shall charge a penal rate of interest not exceeding 1% ( per cent) per annum over and above the normal rate of interest from the defaulting societies.

(5) In case of default in repayment of loans by the members of any class of societies, the penal rate of interest shall be charged not exceeding 3 per cent per annum, by the co-operative society over and above the normal rate of interest from the date of default.

11. Subs, by Noti,. No. F. 16 (9)/98-Coop. /Legal /1796. dt. 9-6-1998. ["Explanation.-Sub-rules (4) and (5) of the rule shall be applicable to a financing bank only in case of default in repayment of loans and subsidies granted by Government routed through such bank to a co-operative societiy or class of co-operative societies or in case of default in repayment of such loans or subsidies by the members of any class of societies."]

(1) No dividend shall be declared or paid except out of net profits left after making the contribution towards reserve fund required to be made under the provisions of section 46 and sub-rule (3). In no co-operative Society, the dividend shall exceed [18%] per annum on paid-up sharecapital. Dividend shall be payable at such rate not exceeding this limit to the registered shareholder, as may be approved by the general body and not otherwise. Shareholders/members will have no right to the dividend unless declared and approved by general body. The dividend shall be paid to all members within three months of the approval by the general body. No dividend shall be paid by the cooperative society while any claim due from the co-operative society to a depositor or lender remains unsatisfied.

(2) Notwithstanding anything contained in the rules and the by-laws of the society, the Registrar may by a general or special order direct that a co-operative society shall not pay dividend or shall pay dividend at a reduced rate.

(3) In the case of an agricultural credit co-operative society, 10 per cent of net profits after contribution to the reserve fund under the proviso to section 46 shall be credited to Agricultural Stabilisation Fund to be utilised for enabling the borrowers to make postponement of repayment of loans on account of famine, drought or such other unforeseen causes. Any subsidy for special bad debt reserve given by the Government shall also be credited to this Stabilisation Fund.

(4) Any distribution of the remaining balance of profits under section 46 and after the distribution of dividend under sub-rule (1) shall be in accordance with the by-laws of the society regarding such distribution. It shall be in proportion to the wages earned by each member in the case of a producers' society, and to the amount of goods purchased by each member, or where it is so provided in the by-laws by each member or customer in the case of a consumers' society. It shall also be in proportion to the amount of rent paid by each member in the case of a Housing Society, may be in proportion to the goods obtained or sold through the society by each member, or to the loans borrowed from and the deposits made with the society by each member.

(5) Any cooperative society which pays dividend may give incentive/gift to its members, with the approval of the general body, not exceeding five per cent of its net profit subject to a maximum of two hundred rupees per member :

Provided that primary urban cooperative banks shall be governed by directions of the Reserve Bank of India in this behalf :

Provided further that the house building and group housing societies shall not be eligible to give incentive/gift.

Every co-operative society shall credit a sum calculated at two per cent of its net profits subject to a maximum of Rs. 2,500 every year for contribution to the Co-operative Education Fund to be administered by the Registrar. This fund shall be kept with State Bank of India and the Lieutenant Governor shall nominate a committee with Registrar as Chairman, with one officer from the office of the Registrar, 6 Representatives of contributing societies, two representatives of Delhi State Cooperative Union and Principal of the Cooperative Training Institute which shall advise the Registrar for the Administration of Co-operative Education Fund. Any such amount payable by the society shall be a charge on the funds of the society." 11. Subs, vide Noti. No. 66/Policy/RCS/97-98/1861 dt. 6.8.1997.

80-A. Subject to the provisions of section 47. A co-operative society may, with the sanction of the Registrar, contribute a sum out of its net profits, in the National Defence Funds other funds of national importance or welfare schemes of the Government.]

In addition to the manner specified in section 49, a cooperative society may invest or deposit its funds-

(a) with the Financing Bank;

(b) in the shares of the Reserve Bank;

(c) with the Nationalise d Commercial Bank;

(d) in any other manner permitted by the Registrar;

(e) with the State Bank of India; and

A co-operative society may, subject to the approval of the general body and to such conditions as the general body may impose, use in its business, the reserve funds:

(i) upto one fourth of its reserve fund when the owned capital is less than the borrowed capital;

(ii) upto one half of its reserve fund when the owned capital is equal to or exceeds the borrowed capital; and

(iii) the entire reserve fund when there is no borrowed capital:

Provided that in the case of clause (i) and (ii) the balance fund shall be invested in an approved mode of investment as per the provisions of the Act, the rules and the by-laws of the society.

No co-operative society shall write off in whole or in part any debt or other sums due to it without the previous sanction of the Registrar :

11. Subs, vide Noti. No. 66/Policy/RCS/97-98/1861 dt. 6.8.1997.

[Provided that the committee of the society shall be competent to write off the bad debts from the bad debts funds created out of profits subject to the limit of ten per cent or ten thousand rupees per annum whichever is more.

(1) The audit of accounts of societies shall be conducted by departmental auditors appointed by the Registrar or by certified auditors appointed by the Registrar from time to time on such terms and conditions as he deems fit:

Provided that the Registrar shall draw the panel of departmental auditors and certified auditors in advance, at least, six months before the close of the year so that statutory audit of society is complete in time to enable the society to hold its annual general body meeting as provided under section 29 and also to file income tax returns as prescribed under the law. Where the total sales, turnover or gross receipts of a society exceeds Rs. 40,00,000/- (or figure as amended from time to time as per Income-Tax (Law) in a year, a Tax Audit under section 44 (AB) of the Income Tax Act shall also be conducted by the certified auditors for which additional fee shall be paid as prescribed by the Registrar from time to time. An auditor can undertake the audit of a society for a maximum period of three years. It shall be the duty of the society to select an auditor from the panel approved by the Registrar and inform about the selection to the Registrar within fifteen days of selection through the registered post. If the society fails to get its statutory audit completed within six month's of the close of the cooperative year, the Registrar shall be competent to get the audit conducted at the cost risk and liability of the members of the committee of a society who have failed to get the audit of the society conducted in time. The fee shall be a charge against the delinquent officials of the committee of the society and shall be recoverable as an arrears of land revenue.

(a) a Chartered Accountant within the meaning of the Chartered Accountants Act, 1949;

(b) a person who holds a Government diploma in co-operative accounts or a Government diploma in co-operation and accountancy; or

(c) a person who has served as an auditor in the Co-operative Department of any State Government or under the Registrar and whose name has been included by the Registrar in the panel of certified auditors maintained and published by him in the Official Gazette at least once in every year.

11. Subs, by Noti. No. F. 16 (9)/80/Coop. /Legal /88/227, Published in Delhi Gazette (Extra), Part IV dt. 9.9.1988.

[(2) While fixing charges on account or services rendered by the auditors which are payable to them, the Registrar shall besides other, things, have regards to the turnover of sale or working capital of the society.

(3) The amount fixed under clause (1) above which is payable to the department auditors shall be deposited in the Government Account and the amount payable to the certified auditors, appointed by the Registrar, shall be paid to them directly as per provisions contained in Schedule IV of these Rules.]

(4) Previous intimation shall be given to the society before the audit is commenced.

(5) The officers and employees of the society shall give the audit officers all assistants necessary for the completion of the audit and for this purpose in particular prepare such statements and take such action with regard to the verification or examination of its accounts as he may require.

(6)

(i) The audit report shall state :-

(a) whether or not the audit officer has obtained all the information and explanations which he required;

(b) whether or not in his opinion the balance sheet and the profit and loss account referred to in the report are drawn up in conformity with the law;

(c) whether or not such balance sheet exhibits a true and correct account of the state of affairs of the society according to the best of his information and the explanations given to him and as shown by the books of the society;

(d) whether in his opinion, books and accounts have been kept by the society as required under the Act, the rules and the bylaws; and

(e) whether there has been any material impropriety or irregularity in the expenditure or in the realisation of money due to the society.

(ii) Where any of the matters referred to in sub-clause (a), (b) (c) or (d) of clause (6) (i) is answered in the negative or in the affirmative with any remarks, the report shall state the reason for such answer with facts and figures, in support of such reasons.

(7) The audit report shall also contain Schedules with full particulars of:-

(i) all transactions which appear to be contrary to the provisions of the Act, the rules or the by-laws of the society;

(ii) all sums which ought to have been brought have not been brought into account by the society;

(iii) any material impropriety or irregularity in the expenditure or in the realisation of money due to the society;

(iv) any money or property belonging to the society which appears to the auditor to be bad or doubtful debt; and

(v) any other matters specified by the Registrar in this behalf.

(8) The summary of audit report as prepared by audit shall be read out in general meeting. The audit report together with its accompaniments shall be open to inspection by any member of the society. The Registrar may, however, direct that any portion of the audit report which appears to him to be of objectionable nature or not justified by facts shall be expunged and the portion so expunged shall not form part of the audit report.

(9) The audit officer shall examine the monetary transactions of a society in so far as may be necessary for the purpose of ascertaining whether there has been any material impropriety or irregularity in the expenditure on the realisation of moneys due to the society and whether any transaction infringes any provisions of the Act, rules or by-laws, or any directions of the managing committee. In case of difference of opinion between the audit officer and the society in regard to the propriety of any of its monetary transactions, the Registrar shall decide the matter and his decision shall be final.

(10) If the result of the audit held under the last preceding rules discloses any defects in the working of a society, the society shall, within three months from the date of audit report, explain to the Registrar the defects or the irregularities pointed out by the auditor, and take steps to rectify the defects and remedy irregularities, and report to the Registrar in Form 16 the action taken by it thereon. This compliance report shall continue to be submitted till all the defects are rectified or irregularities remedied to the satisfaction of the Registrar. The Registrar may also make an order directing the society or the officers to take such action as may be specified in the order to remedy the defects, within the time specified therein, where the society concerned is a member of a federal society.

(1) A co-operative society shall pay on or before the 11. Ins. by Noti. No. 16(9)/80/Coop./Legal/88/277. Published in Delhi Gazette (Extra) Part IV, dt.9.9.1988. [31st December] of each year, an audit fee at such rates as may be fixed by the Registrar with the prior approval of the Lt. Governor.

(2) The Registrar shall have power to increase the prescribed audit fee, in special cases, for reasons to be recorded in writing. The Registrar may, at his discretion, remit either wholly or in part the audit fee payable by any society.

22. Subs, by Noti. No. F. 16(9)/80/Coop/Legal, Published in Delhi Gazette (Extra) (Part IV) dt 18.5.1989.

[(3) Audit fee shall be credited to Audit Fee Fund to be controlled by the Registrar as per provision contained in Schedule IV.J

(1) An order authorising an inspecting officer under section 54 Inquiry Officer under section 55 or inspecting officer under section 56 shall among other things constitute the following :-

(a) the name of the person authorised to conduct the inquiry or inspection;

(b) the name of the society whose affairs are to be inquired into or whose books are to be inspected;

(c) the specific point or points on which the inquiry or inspection is to be made, the period within which the inquiry or inspection is to be completed and report submitted to the Registrar.

(d) cost of inquiry;

(e) any other matter relating to the inquiry or inspection.

(2) A copy of every order authorising inspection under section 54, inquiry under section 55 or Inspection under section 56 shall be supplied to he Financing Bank.

(3) If the inquiry or inspection cannot be completed within the time specified in the order referred to in sub-rule (1) the person conducting the inquiry or inspection shall submit an interim report stating the reasons for failure to complete the inquiry or inspection and the Registrar if he is satisfied, grant such extension of time for the completion of the inquiry or inspection as the may deem necessary or he may withdraw the inquiry or inspection from the officer to whom it is entrusted and hold the inquiry or inspection himself or entrust it to such other person as he deems fit.

(4) On receipt of the order referred to in sub-rule (1) the person authorised to conduct the inquiry or inspection shall proceed to examine the relevant books of account and other documents in possession of the society or any of its officers members, agents or servants and obtain such information or explanation from any such officers, members, agents or servants of the society in regard to the transaction and working of the society as he deems necessary for conduct of such inquiry or inspection.

(5) The person authorised to conduct the inquiry or inspection shall submit his report to the Registrar, on all the points mentioned in the order referred to in sub-rule (1) of rule 86. The report shall contain his findings and the reasons therefor supported by such documentary or other evidence as recorded by him during the course of his enquiry or inspection. He shall also specify in his report the cost of the inquiry or inspection together with reasons and recommend the Registrar the manner in which the entire cost of a part thereof may be apportioned, amongst the parties specified in section 57. The Registrar shall pass such orders thereon as may be considered just after giving a reasonable opportunity of being heard to the person or persons concerned.

(6) If the result of any inquiry held under section 55 or an inspection made under section 56 discloses any defects in the working of the society, the Registrar may bring such defects to the notice of the society and if the society is a member of a Federal Society to the notice of the Federal Society. The society shall submit a rectification report in Form 16 and shall continue to submit such rectification reports to the Registrar till all the defects are rectified or the irregularities are remedied to the satisfaction of the Registrar.

(7) The Registrar may also make an order, directing the society or its officers or the federal society to take such action, as may be specified, in the order to remedy the defects within the time specified therein.

(1) On receipt of the report made by the auditor, or person authorised to make inspection under section 54 or enquiry under section 55 or inspection under section 56, or by the liquidator or otherwise, the Registrar or any other person authorised by him may make such further inquiries as he may deem necessary regarding the extent to which the person who has taken any part in the organisation or management of a society or any deceased past or present, officer of the society has misapplied or retained, or become liable or accountable, for any money, property of the society, or has committed misfeasance or breach of trust in relation to the society.

(2) On the completion of the further enquiries under sub-rule (1), where necessary, the Registrar or the person authorised by him shall issue a notice to the person or persons concerned furnishing him on them with particulars of the acts of misapplication, retention, misfeasance or breach of trust and the extent of his or their liability involved therein and calling upon him or them to put in statements in his or their defence within fifteen days of the date of issue of the notice.

(3) On receipt of the statements referred to in sub-rule (2), the Registrar or the person authorised by him, if he is satisfied that there are reasonable grounds for holding the person or persons liable, shall frame charges.

(4) The person or persons concerned shall, after the charges are framed, be asked to put in his statement in defence and to indicate the documentary or oral evidence which he would like to produce. The Registrar or the person authorised by him may permit production of other documentary or oral evidence, if considered necessary, subsequently.

(5) The Registrar or the person authorised by him, shall thereafter record the evidence led by the society or the liquidator or the person or persons concerned and take on record the documents proved by them, and shall thereafter fix a date for hearing arguments of the parties.

(6) On the day fixed for hearing under sub-rule (5), the Registrar or the person authorised by him, shall hear the arguments and may pass his final orders on the same day or on any day fixed by him within twenty days from the date on which the hearing was completed. On the day so fixed, the Registrar or the person authorised by him, as the case may be, shall make his final order either ordering repayment of the money or return of the property to the society together with interest at such rate as may be specified by him or to contribute such amount to the assets, of the society by way of compensation in regard to misapplication, retention, misfeasance or breach of trust as may be determined or may reject the claim submitted on behalf of the society.

(7) The Registrar or the person authorised by him, may also provide in his order for the payment of the cost of the proceedings under this rule or any part of such cost as he thinks just.

(8) The Registrar or the person authorised by him shall furnish a copy of his order, under sub-rule (6) to the party concerned within ten days of the date on which he makes his final order.

(1) Where a party to a dispute referred to in sub-section (1) of section 60 desires to have the dispute determined in accordance with the said section, the party shall apply to the Registrar in writing in Form 17 stating inter alia, (i) all the facts constituting the cause of action, (ii) names and addresses of the other parties, (iii) facts showing that the subject-matter of dispute is not barred by limitation, (iv) relief claimed in terms of money or otherwise. Each statement in the application shall have separate consecutive paragraphs serially numbered. At the end of the application there shall be made verification with the place and date of verification.

11. Subs. vide Noti. No. 66/Policy/RCS /97-98/1861 dated 6.8.1997.

(2) A party referring the dispute under sub-section (1) of section 60 to the Registrar shall pay a fee of rupees one hundred plus the process-fee at the rate of rupees ten for each party which shall be deposited in advance in the Financing Bank in the name of the Registrar in "Settlement and Executive Service Expenses Fund", the original of pay-in-slip for the deposit of this account shall be attached with the application for reference of a dispute. The application for reference of a dispute shall be delivered in the office of the Registrar personally and receipt obtained or by registered post alongwith as many spare copies of the application as there are parties on the opposite side :

Provided that the Registrar shall be competent to revise the fee and process fee for referring the dispute under sub-section (1) of section 60 from time to time.]

(3) On receipt of the application, the Registrar shall enter it in a register in Form 18 and allot case No. on the application.

(4) If the Registrar is satisfied that the application is maintainable under section 60, he shall by an order, admit the application for decision of the dispute in accordance with the Act and Rules and record his findings on the following points 22. Subs, vide Noti. No. 66/Policy/RCS/97-98/1861 dt. 6.8.1997. [within forty-five days of the receipt of the case.]

(i) whether there is a dispute;

(ii) whether the dispute comes within the purview of sub-section (1) of section 60;

(iii) whether the dispute is between parties mentioned in clauses (a), (b), (c) and (d) of sub-section (1) of section 60; or

(iv) whether the dispute is within time according to sub-section (4) of section 60.

(5) After the application has been admitted by the Registrar and after the claimant has deposited the arbitration fee in the manner and according to the scale of fees fixed by him, the application along with his orders thereon shall be referred for decision to the arbitrator. Explanation.-The expression "Arbitrator" wherever occurring in these rules, means the authority mentioned in sub-section (1) of section 61 whether the authority may be the Registrar himself.

(6) The Registrar or the arbitrator, as the case may be, shall have power to appoint or remove a guardian for the party to the dispute who is a minor or who by reasons of unsoundness of mind or mental infirmity, is incapable of protecting his interest.

(7) In these proceedings, the arbitrator shall fix the date, hour and the place of hearing of the dispute.

(8) The arbitrator may issue summons or notices at least fifteen days before the date fixed for the hearing of the dispute requiring

(i) The attendance of the parties concerned and of witnesses, and

(ii) the production of all books and documents relating to the matter in dispute.

(9) Summons or notices may be served by:-

(i) registered post; or

(ii) personal service through the Secretary or a member of the staff of the society or any of the parties to the dispute; or

(iii) affixing a copy of the summons or notice at the last known place of residence or business of the person concerned, when he refuses to sign that acknowledgement or he cannot be found.

(10) Service of summons or notice on the Secretary or Principal executive officers by whatever designation known, shall be regarded as service on that society.

(11) Where the serving officer delivers or tenders a copy of the summons personally to the person summoned or to an agent or other person on his behalf, he shall require the signature of the person to whom the copy is so delivered or tendered in token of acknowledgement of service endorsed on the original summons.

(12) The service officer shall, in all cases, in which the summons has been served under clauses (ii) and (iii) of sub-rule (9), make an endorsement on, or annex to, the original summons, a return, stating the time when and the manner in which the summons was served and the name and address of the person, if any, identifying the person concerned and witnessing the delivery or tender of the summons.

(13) The sufficiency of proof of service of the summons or notice shall be decided by the authority which issued the same.

(14) In the case of absence of any party to the dispute duly summoned, the dispute may be decided ex parte.

11. Subs. by Noti. No. F. 16 (9)/80/Coop./Legal/88/227. Published in Delhi Gazette (Extra), Part IV, dt. 9.9.1988.

[(1) The arbitrator shall make a memorandum of the statements of the parties who attended and of such witnesses are examined and upon the evidence so recorded and after consideration of any documentary evidence produced by either party shall make an award in accordance with justice, equity and good conscience, he shall record his award signed and date it within a period of three months and shall communicate it the party concerned. In case the arbitrator is unable to decide the case and make the award within three months he shall seek extension of the period in writing from the Registrar by making an application to him].

(2) The award shall contain the number of reference, the names and description of the parties and particulars of the disputes and shall specify clearly the relief granted, the amount decreed, the future interest allowed, if any, and the costs awarded.

(3) If no award is made immediately upon the conclusion of the hearing of the parties, the arbitrator shall fix the date and place of delivery of the award and shall, except for reasons to be recorded in writing, deliver the award on the date so fixed.

(4) The award shall be communicated to the parties by :-

(a) pronouncement of the award, or

(b) registered post to any party which may be absent on such date.

(5) The arbitrator shall have power to order the expenses of determining a dispute or the cost of either party, to be paid by such party or parties to the dispute as he may think fit :

Provided that the expenses or the cost so awarded shall not exceed 22. Subs. vide Noti. No. 66/Policy/RCS/97-98 /1861 dt. 6.8.1997. [7.5%] of the awarded amount over the arbitration fee deposited by the claimant with the Registrar.

(6) The original records of the dispute and the proceedings before the arbitrator shall be delivered to the Registrar by the arbitrator, after the decision or award has been delivered.

(7) Any document or record tendered by a party may on application be returned to the party after the disposal of the appeal, if any, or after the period of appeal.

On an application by any party to the arbitration proceedings pending before an arbitrator, the Registrar may for reasons to be recorded in writing withdraw the reference from the arbitrator appointed and may decide the dispute himself and give an award in the manner provided in rule 89 or make fresh appointment.

(1) For the purpose of clause (c) of sub-section (1) of section 61, the Registrar may appoint any person who fulfils such qualification as may be specified by the Registrar to perform the duties of the arbitrator for dispute for a period to be specified in the order, which shall not ordinarily exceed one year but may be extended by the Registrar by further special order for further periods not exceeding one year at a time.

(2) For the purpose of sub-rule (1) of section 91, the Registrar shall appoint Arbitrators from amongst:-

(a) gazetted officers including retired, of any department under the Delhi Administration or Central or State Govt, or

(b) officers, paid staff or members of any co-operative society with at least 3 years experience having academic qualification of not less than a Degree from any University or Diploma in Co-operative Education, or

(c) Chartered Accountants.

11. Subs. vide Noti. No. 66/Policy/RCS/97-98 /1861 dt. 6.8.1997. [(d) Officers of local bodies public sector, undertakings; etc.]

(1) The Registrar shall have power to require the person referring a dispute under sub-section (1) of section 60 to deposit in advance with

TABLE A

(Schedule of Fee for an Arbitration)

In respect of disputes relating to claims of money referred to under section 60.

(i) Fee payable by a party on account of arbitration is as follows : (a) in case of claim below Rs. 100 ... Rs. 25.

(b) in case of claim for Rs. 100 or above... 3% of the claim Rs. 200 and maximum of Rs. 5000] (ii) In case of dispute of non-monetary nature... a fee of not less than Rs. 100 and not more than [Rs. 150] in each case, as may be considered reasonable by the Registrar.

The arbitrator may be paid out of the fee recovered under sub-rule (1) of rule 92, such fee as the Registrar may think proper.

No fee shall be payable to an arbitrator till the dispute referred to him is finally decided.

The Registrar may, in his discretion, remit the whole or any part of the fees collected under sub-rule (1).

All fees for services rendered in respect of arbitration or execution proceedings payable by a party shall be deposited in the Financing Bank in the "Settlement and Execution Services Expenses Fund" which shall be administered by the Registrar in accordance with the Regulations contained in Schedule IV.

[Omitted]

(1) Before passing the order under section 63, the Registrar shall give an opportunity to the society to show cause against the proposed order. The show cause notice shall be sent to the President of the Society at its registered address under registered post. The service of this notice will be complete after 48 hours of the posting of the letter properly addressed and pre-paid, containing the notice. The notice shall state the grounds on which the order under section 63 is proposed to be made.

(2) After considering the reply from the society which shall be supported by the resolution of its committee, or if no reply is received by the Registrar within fifteen days of the service of the notice under sub-rule (1), he shall proceed to pass the order under section 63.

(3) The order passed under section 63 and sub-section (1) of section 66 shall be communicated to the President of the society in the manner specified under sub-section (4) of section 63, at the registered address of the society. The communication will be complete as soon as the letter containing the order is so posted.

(4) The order referred to in sub-rule (3) shall also be published in the Official Gazette.

(5) The order referred to in sub-rule (3) shall take effect from the ate of order notwithstanding whether or not it is published in the Official Gazette and shall operate in favour of all creditors, contributories, debtors and any other person having custody, possession and control over any asset or record of the society.

(1) Where a liquidator is appointed under sub-section (1) of section 66, the Registrar may limit or restrict his powers by order appointing him or by subsequent order but, otherwise, he shall have the same powers as a liquidator is given in the Act.

(2) The Registrar may remove the liquidator at any time without assigning any reasons and may appoint another liquidator. The liquidator on his removal shall hand over all the property, documents, records, etc relating to the society under liquidation to his successor or to any person nominated by the Registrar in this respect. A charge report to be signed by the relieved and relieving officer shall be drawn and a copy of the same duly signed shall be forwarded to the Registrar.

(3) The liquidator shall be described by the style liquidator of particular society in respect of which he acts and not by his individual name.

(1) The liquidator shall, as soon as the order of winding up of a cooperative society takes effect, publish by such means as he may think proper, a notice requiring all claims against the co-operative society, the winding up of which has been ordered to be submitted to him within one month of the publication of the notice. All liabilities recorded in the account book of a cooperative society shall be deemed ipso facto to have been duly submitted to him under this sub-rule.

(2) The liquidator may fix time within which the creditors are to prove their debts or claims. If no claim is made within two months of the date of order of winding up, the liquidator may refuse to entertain such claims.

(3) The liquidator soon after his appointment shall take charge of the books of account and other documents of the society and all its assets. There shall be prepared immediately on the relevant date a statement as to affairs of the society containing the following particulars :-

(a) the assets of the society stating separately the cash balance in hand and at the Bank, if any, and the negotiable securities, if any, held by the society;

(b) its debts and liabilities;

(c) the names and addresses and occupations of its creditors stating separately the amount of secured and unsecured debts and in the case of secured debts, particulars of the securities given;

(d) the debts due to the society and the names, residence and occupations of the persons from whom they are due and amount due; and

(e) such other information as may be called by the Registrar.

(4) The statement required to be prepared under sub-rule (3) shall be made on the basis of the record of the society, audit reports, and on the basis of the statements made by the members of the committee at the relevant date or by the person who is at that date, the Manager, Secretary or Treasurer or other officer of the Society. The liquidator shall examine them on oath. This statement shall be submitted by the liquidator to the Registrar within twenty-one days of the date of his appointment or within such extended time not exceeding three months from the date of the said order.

(5) The liquidator shall, after setting the assets and liabilities of the cooperative society as they stood on the date on which the order for winding up is made, proceed next to determine the contribution to be made by each of its members or by the estates of nominees, heirs or legal representatives of deceased members or by any officers or former officers to the assets of the society under clauses (b) and (c) of subsection (2) of section 67. Should necessity arise, he may make a subsidiary order regarding such contributions and such order shall be enforceable in the same manner as the original order.

(6) As soon as practicable after orders under sub-rule (5) have been passed, the liquidator shall settle a list of contribution with powers to rectify the membership register in pursuance of any order which may be passed by the arbitrator or the Registrar in accordance with the provision of the Act and the rules, and shall cause the assets to be collected.

(7) In setting the list referred to in sub-rule (6), the liquidator shall distinguish between those who are contributories in their own rights and those who are contributories as being representatives of or liable for the debts of others.

(8) The liquidator may at any time after his appointment require any contributory for the same being on the list of contributories any trustee, banker, agent or officer of the society to pay, deliver, surrender or transfer forthwith to the liquidator any money, property or books or paper in his hands to which the society is prima facie entitled.

(9) No contributory for the time being on the list shall be allowed by way of set off any money claimed to be due to him or to the estate he represents, from the society in respect of any independent dealing or contract with the society.

(10) All funds in charge of the liquidator shall be deposited in the Financing Bank in the current account to be opened in the name of the society under liquidation which shall be operated upon by the liquidator. All funds received by him relating to the society under liquidation shall be deposited by him in this account within 24 hours of their receipt. All payments on account of the society shall be made by cheques drawn by the liquidator in favour of the payee. The liquidator may keep with him a cash balance of Rs. 20 to meet petty expenses on liquidation proceedings.

(11) Any order passed by the liquidator under clauses (b) and (c) of subsection (2) of section 67 shall be submitted by him to the Registrar for his approval. The Registrar may confirm or modify such order or refer it back to the liquidator for further enquiry or action.

(12) Any person untruthfully so stating himself as the creditor or the contributory of the society shall be guilty of the offence under section 182 of the Indian Penal Code, 1860 (Act XIV of 1860) and shall on the application of the liquidator be punished accordingly.

Subject to the provisions of rule 98 as to the preferential payments, the assets of the society shall be applied in order of priority as given below for payment of the liabilities :-

(1) Pro rata payment of all outside liabilities.

(2) Pro rata repayment of loans and deposits of members.

(3) Pro rata refund of share capital.

(4) Pro rata payment of dividend on the shares at the rate not exceeding 6 per cent per annum for the period of liquidation.

(1) In the winding up proceedings, there shall be paid in priority to all other debts and liabilities of the society under liquidation :-

(a) all Government dues, all revenues, taxes, ceases and rates due from the society to the Central Government or to the local authority at the relevant date and having become due and payable within two years next before that date;

(b) all wages or salary of any employee in respect of services rendered to the society and due for a period not exceeding two months within the twelve months next before the relevant date subject to maximum of Rs. 500; and

(c) the debts mentioned in the foregoing clauses (a) and (b) shall rank equally amongst themselves and be paid in full, unless the assets are insufficient to them, in which case they shall abate in equal proportion.

A creditor of the society under liquidation may apply to the liquidator for payment of interest on any debt due to him from the society up to the date of order of the Registrar for winding up. The rate at which the interest may be paid shall be in the case of Financing Bank, the contract rate and in any other case, the rate which may be fixed by the Registrar which shall not exceed the contract rate. Provided that if any surplus assets remain after all the liabilities including the liabilities on shares have been paid off, further interest to rate not exceeding contract rate may be allowed by the Registrar to the creditors from the date mentioned above till the date of repayment of the principal.

If any liability cannot be discharged by the liquidator owing to the whereabouts of the claimant not being known or any other cause, the amount representing such undischarged liabilities shall be deposited in the name of the Registrar with the Financing Bank and shall remain at the disposal of the creditors for a period of three years from the date of winding up order; thereafter this amount shall be treated as surplus amount which shall be utilized in the manner mentioned in rule 105. The Registrar may under special circumstances pay them liabilities claimed even after the stipulated period of three years.

(1) The liquidator shall keep such books and accounts as may be laid down by the Registrar or audit officer.

(2) The liquidator shall during the tenure of his office but not less than twice in a year prepare an account of his receipts and payments as Liquidator. A senior auditor shall be appointed by the Registrar as the audit officer who shall audit these accounts on behalf of the Registrar. When accounts are audited by the audit officer, one copy shall be kept by the audit officer and the other returned to the liquidator with his report. The liquidator shall produce for purposes of audit all vouchers and accounts and shall furnish such information as may be required by the audit officer. The liquidator shall rectify all irregularities and defects pointed out by the audit officer to his satisfaction and shall submit to him a rectification report.

(3) No audit fee shall be charged for audit of the accounts under this rule.

Whenever it is considered necessary by the liquidator to defend or to institute any legal proceedings for and on behalf of the society under liquidation, he shall approach the Registrar who shall after considering all the facts and circumstances of the case, provide the services of the legal practitioner at the cost of the society under liquidation. If the Registrar or the Government has been impleaded in such proceedings the cost of defending them by the Registrar or the Government shall also be paid out of the funds of the society. If no funds are available with the liquidator, arrangements shall be made at Government expenses but the cost of such arrangements shall be ultimately recovered from the contributories and paid to the Government as preferential debt under clause (a) of sub-rule (1) of rule 98.

The liquidator shall make a report to the Registrar for purposes of taking action under section 59, where, in his opinion, any fraud has been committed by any person in the promotion, organisation, registration or management of the society under liquidation in relation to the society since its registration or any deficiency in the assets of the society has been caused by the breach of trust, or wilful negligence or by retaining any money or other property belonging to the society. This report shall be submitted to the Registrar as soon as practicable after preparation of the statement referred to in sub-rule (3) of rule 96. On receipt of this report, the Registrar shall proceed to take action under section 59.

(1) Any transfer of shares in a society under liquidation made within six months next before the relevant date except transfer of shares to the deceased members, heirs or nominee, shall be void and not binding upon the liquidator notwithstanding anything contained in the Act, rules or the by-laws of the society.

(2) Any transfer of property, movable or immovable delivery of goods, payment, execution or other acts relating to property made, taken or done by or against a co-operative society within six months next before the relevant date, which, had it been made, taken or done by or against an individual within three months before the presentation of an insolvency petition on which he is adjudged insolvent, would be deemed in his insolvency a fraudulent preference, shall in the event of the co-operative society being wound up, be deemed a fraudulent preference of its creditors and contributories and be invalid accordingly.

(1) The winding up proceedings of a society shall be closed within one year from the date of the order of the winding up, unless the period is extended by the Registrar :

Provided that the Registrar shall not grant any extension for a period exceeding six months at a time and three years in the aggregate, and shall immediately after the expiry of three years from the date of the order for winding up of the society, deem that the liquidation proceedings have been terminated if there are no central amounts due to the Government or the Financing Bank by the society and pass an order terminating the liquidation proceedings.

Explanation.-In the case of co-operative society which is under liquidation at the time of commencement of the Act, the order for winding up of the society shall be deemed for the purpose of this rule to have been passed on the date of such commencement.

(2) Notwithstanding anything contained in the foregoing sub-rule, the Registrar shall terminate the liquidation proceedings on receipt of the final report from the liquidator. The final report of the liquidator shall state that the liquidation proceedings of the society have been closed, and how the winding up has been conducted and the property and the claims of the society have been disposed of and shall include a statement showing a summary of the account of the winding up including the cost of liquidation, the amount (if any) standing to the credit of the society in liquidation, after paying off its liabilities including the share or interest of members, and suggest how the surplus should be utilised.

(3) The liquidator before submitting the final report may call a meeting of general body of the society and place the report before it if permitted by the Registrar.

The surplus assets, as shown in the final report of the liquidator of a society which has been wound up, may either be divided by the Registrar, with the previous sanction of the Lt. Governor, amongst its members in such manner as may be prescribed or be devoted to any object or objects provided in the by-laws of the society, if they specify that such surplus shall be utilised for the particular purpose or may be utilised for both the purposes. Where the surplus is not so divided amongst the members and the society has no such bylaws, the surplus shall vest in the Registrar, who shall hold it in trust and shall transfer it to the reserve fund of a new society registered with a similar object, and serving more or less an area which the society to which the surplus belonged was serving if considered feasible and advisable by the Registrar :

Provided that, where no such society exists or is registered within three years of the cancellation of registration of the society whose surplus is vested in the Registrar, or where the Registrar does not think it desirable and feasible to do so, the Registrar may distribute the surplus, in the manner he thinks best, among any or all of the following :-

(a) an object of public utility and of local interest as may be recommended by the members in general meeting;

(b) a federal society with similar objects to which the society of which registration has been cancelled, was eligible for affiliation, or where no federal society exists, the State federal society which may be notified in this behalf by the State Government; and

(c) any charitable purpose as defined in Section 2 of the Charitable Endowments Act, 1890.

The expression "relevant date" as appearing in this Chapter shall mean the date of order of winding up made under sub-section (1) of Section 63.

All the books and records of a co-operative society whose registration has been cancelled may be destroyed under the orders of the Registrar after the expiry of a period of three years from the date of cancellation.

The order made by the Registrar under sub-section (1) of Section 69 shall also be published in the Official Gazette.

(1) Every application under Section 70 shall be made in Form 19 and shall be signed by a person authorised by the committee of a co-operative society. It shall be accompanied by an inventory of the property to be sold containing a reasonably accurate description of the same

(2) No application under sub-rule (1) shall be entertained unless the society making the application deposits the necessary fee for expenses of sale of the property which shall be 5 per cent of the outstanding debt or demand of the society against the defaulter in respect of which the application is made irrespective of the fact whether that much amount is recovered or not by sale of the property subject to charge.

(3)On receipt of the application referred to in sub-rule(1), the Registrar or any other officer authorised by him in this behalf in writing by special or general order (hereinafter referred to as the Sales Officer, which shall include his successor or assigns) shall, if he is satisfied that the particulars set forth in the application are correct and prepare a demand notice in duplicate in Form 20, setting forth the name of the member, past member or the nominee, heir or legal representative of the deceased member, the amount due from him together with the interest and cost, if any, and the description of the property or interest in property for the sale of which the application has been made by the society, and calling upon him to remit within seven days from the date of service of the notice total amount due under the demand. The Sales Officer shall serve or cause to be served the demand notice upon the member, past member or the nominee, heir or legal representative of the deceased member if he is present or upon some adult male member of his family or upon his authorised agent, or when such service cannot be effected, shall affix or cause to be affixed a copy of the demand notice on some conspicuous part of his residence or the place where the property subject to charge is kept. If the member or past member or nominee, heir or legal representative of the deceased member, fails to pay the debt or outstanding demand within the period aforesaid, the Sales Officer shall proceed to sell the property.

(4) The provisions of rules in Part III of this Chapter shall, in so far as they are not repugnant to the subject or context, apply to the sale of the property or interest in the property as if the society which made the application is a decree holder and the member, past member or the nominee, heir or legal representative of the deceased member, is a defaulter or judgment-debtor.

(1) Where any decision, award or order providing for the recovery of money is executable by the Collector under clause (a) of Section 71, it shall be executed by a Revenue Officer empowered by the Collector by general or special order to do so (hereinafter referred to as the "Recovery Officer" which shall include his successors and assigns) in accordance with the provisions of the Punjab Land Revenue Act (Act XVII of 1887), which shall include any other Act for the time being in force in the Union territory of Delhi relating to recovery of land revenue, the rules, orders or regulations issued thereunder from time to time (hereinafter referred to as the "Land Revenue Code").

(2) When any decree holder desires to have the decree executed through the Collector under clause (a) of Section 71, he shall apply to the Registrar in Form 21 for the issue of a certificate for the recovery of the decretal amount as arrears of land revenue. The application shall be delivered in the office of the Registrar personally and a receipt obtained or sent by registered post.

11. Subs. by Noti. No. 16(9)/80/Co-op./Legal/88/227.

[(3) Soon after the receipt of the above application, the Registrar shall call for original records of the arbitration and shall check up if the decision or the award had ben given in accordance with the rules and shall check up contents of the application with reference to the relevant original records of the case. If he is satisfied about the correctness of the award/decision and the application, he or any officer authorised by him shall issue certificate in Form 22 to the decree holder. In case the Registrar is satisfied that the decision/award is in contravention of the provision of the Act and Rules, he may refer the arbitration case back to the arbitrator for necessary rectifications(s).]

(4) Within a period of 60 days soon after the issue of the certificate referred to in sub-rule (3), the decree holder shall apply in Form 23 to the Recovery Officer delivered in person and a receipt obtained or sent by registered post. The application shall be accompanied by :

(a) a certified copy of the award;

(b) original certificate issued by the Registrar under sub-rule (3); and

(c) receipted pay-in-slip for deposit of execution fee in the State Bank of India:

Provided that the Registrar may extend the period of 60 days after hearing the decree-holder in person for the reasons for delay."

(5) If the application mentioned in sub-rule (4) is complete in all respects and is accompanied by all the documents, the same shall be entered in the Demand Register and given a distinctive case number and shall be dealt with by the Recovery Officer as if it is a suit filed by the decree-holder against the judgment-debtor. This case number shall be quoted in all processes issued in the case from time to time. He shall thereafter issue various processes for the recovery of the decretal amount according to the Land Revenue Code.

(6) The decree-holder shall deposit in the "Settlement and Execution Expenses Fund" an initial lump sum of Rs. 25 for issue of process in the execution case. Thereafter, a fee of 5 per cent shall be charged on all sums recovered by the Recovery Officer from the judgment-debtor which shall be credited to the aforesaid fund.

(1) All amounts recovered from the judgment-debtors by the Recovery Officer shall first be deposited in the current account to be kept in his official designation in the State Bank of India which shall be operated by him. The payment to decree-holder of all amounts recovered on his behalf during the course of execution proceedings shall be made by the Recovery Officer by crossed cheque drawn on the above current account against the deposits relating to the decree-holder after deducting the recovery fee of 5 percent on the gross amount recovered, within 7 days of the receipt of amount.

(2) The Recovery Officer shall keep separate personal ledger account of each decree-holder in which all the relevant details of recoveries made with names of defaulters from whom made, payments made to decree-holder from Published in Delhi Gazette (Extre) Part VI. dt. 9.9.1988. time to time and expenses recovered shall be entered. Individual entries in these ledgers shall be attested by the Recovery Officer in token of its correctness.

(3) A cash book shall be kept in which all recoveries and deposits made in the bank through the bailiffs and all payments made through the bank shall be entered in chronological order on rendition of account by each bailiff at least once a week. The entries in the cash book and those in the personal ledger accounts shall be interlinked by giving corresponding ledger folio numbers.

(4) A separate account of receipt and issue of receipt books shall be, kept by the Recovery Officer. The receipt books shall remain in the personal safe custody of the Recovery Officer.

(5) Each bailiff shall deposit the amount recovered by him in the State Bank of India in the current account of the Recovery Officer. Each bailiff shall render to the Accountant appointed by the Recovery Officer a true and faithful account of all receipts and deposits made by him which shall be entered in the cash book with full clarity and all the entries made in the cash, book shall then be attested by the Recovery Officer. Any unusual delay in deposit of the amount in the State Lank by any bailiff shall be brought to the personal notice of the Recovery Officer by the Accountant.

(6) The Recovery Officer shall be responsible for the maintenance of true and correct accounts of the recoveries and deposits. He shall also act as the controlling officer in respect of the staff maintained and paid out of the "Settlement and Execution Expenses Fund" in accordance with the regulation of the Fund.

(1) All money payable under the certified award shall be paid as follows :

(a) with the Recovery Officer or with any person authorised by him against official receipt.

(b) out of the court to the decree-holder. Where any payment is made under clause (a). notice of payment shall be made by the Recovery Officer to the decree holder.

(2) Where any money payable under the Award under execution by the Recovery Officer is paid by the judgment-debtor out of court to the decree-holder or the award is, otherwise adjusted in whole or in part to the satisfaction of the decree-holder, the decree-holder shall certify payment or adjustment to the Recovery Officer and he shall record such payment or adjustment in the personal ledger account maintained by him.

(3) The judgment-debtor may also inform the Recovery Officer of such payments or adjustments and apply to him to issue a notice in Form 24 to the decree-holder to show cause on a day to be fixed by the Recovery Officer, why such payment or adjustment should not be recorded in the personal ledger account of the decree-holder as having been paid or adjusted in the execution proceedings, and if after service of such notice, the decree-holder fails to show cause, the Recovery Officer may record the payment and/or adjustment in the above manner. A payment or adjustment which has not so been recorded as aforeaid, shall not be recognised by the Recovery Officer executing the award.

The Recovery Officer executing the award may recover in addition to the decretal amount from the judgment-debtor the cost of execution as arrears of land revenue and pay such amount to the decree-holder.

Where any property to be sold in realization of any decree is situated outside the Union territory of Delhi, the decree shall be forwarded for execution in accordance with the provisions of the Revenue Recovery Act, 1890 (Act 1 of 1890) to the Collector of that District where the property of judgment-debtor/defaulter is situated.

(1) Where any decree-holder desires to have the decree executed under provisions of clause (b) of Section 71, he shall apply to the Registrar or the officer authorised by the Registrar in this behalf by a special or general order (hereinafter referred to the "Recovery Officer"), in Form 25 which shall be signed by the decree-holder. The decree-holder shall indicate whether he desires to proceed against the person of the defaulter or against his movable or immovable property or both and shall state in what way he wants the assistance of the Registrar according to the Act and rules.

(2) On receipt of the application referred to in sub-rule (1), the Recovery Officer shall call for original record and shall verify the correctness and genuineness of the particulars set forth in the application with the records.

(3) Without prejudice to the provisions of the Code of Civil Procedure, 1908 (Act No. V of 1908), the Recovery Officer shall, on being satisfied about the correctness and genuineness of the application received by him, order execution of the decree :-

(a) by delivery of any property specifically decreed;

(b) by attachment and sale or sale without attachment of any property;

(c) by arrest and detention in person; and

(d) in such other manner as the nature of relief granted may require.

(4) Whether in these proceedings under clause (b) of Section 71, any person requires the issue of any process, or objects to any process issued or proposed to be issued, or requires the adjournment of any proceedings, he shall pay the fee as fixed in Schedule. IV which may be revised by the Registrar from time to time. Thereafter the Recovery Officer shall issue processes. The provisions of Sections 36 to 74, 135, 135A and Order XXI in the First Schedule of the Code of Civil Procedure, 1908 (Act V of 1908) shall mutatis mutandis apply to the executions ordered under clause (b) of Section 71. The decree-holder shall indicate whether he wishes to proceed in the first instance against the property of the defaulter or against his person.

(5) Without prejudice to the generality of the foregoing sub-rule, a demand notice stating therein the relief claimed by the decree-holder shall be prepared in duplicate in Form 26 by the Recovery Officer who shall send a copy of the application filed by the decree-holder and the demand notice to the defaulter.

Unless the decree-holder has indicated under sub-rule (4) of rule 116, the order in which the property of the defaulter shall be proceeded against, the execution shall ordinarily be taken in the following manner, namely :-

(i) movable property of the defaulter shall be first proceeded against, but nothing in this clause shall preclude the immovable property being proceeded against simultaneously in case of necessity; and

(ii) if there is no, movable property, or if the sale proceeds of the movable property, or properties attached and sold are insufficient to meet in full the demand of the decree-holder, the immovable property mortgaged to decree-holder or other immovable property belonging to the defaulter, may be proceeded against.

In the seizure and sale of movable property, the following rules shall be observed:-

(i) The Recovery Officer shall, after giving previous notice to the decree-holder, proceed to the village where the defaulter resides or the property to be distrained is situated and serve the demand........upon him in Form 27. If the demand together with the interest and all expenses is not at once paid, the Recovery Officer shall make the distress and shall immediately deliver to the defaulter a list or inventory of the property distrained and an intimation of the place, day and hour at which the distrained property will be brought to sale if the amounts due are not previously discharged. If the defaulter is absent, the Recovery Officer shall serve the demand notice on some adult male member of his family, or on his authorised agent, or when such service cannot be effected, shall affix a copy of the demand notice on some conspicuous part of his residence. He shall then proceed to make the distress and shall fix the list of the property attached on the usual place of residence of the defaulter endorsing thereon the place where the property may be lodged or kept and an intimation of the place, day and hour of sale if the amounts due are not previously discharged.

(ii) After the distress is made, the Recovery Officer may arrange for the custody of the property attached with the decree-holder or otherwise,

(iii) If the Recovery Officer requires the decree-holder to undertake the custody of the property, he shall be bound to do so and any loss incurred owing to his negligence shall be made good by the decree-holder. If the attached property is livestock, the decree-holder shall be responsible for providing the necessary food therefor.

(iv) The Recovery Officer may, at the instance of the defaulter or of any person claiming an interest in such property, leave it in the village or place where it was attached, in the charge of such defaulter or person if he enters into a bond in Form 28 with one or more sufficient sureties for the production of the property at the place of sale when called for.

(v) The distress shall be made after sunrise and before sunset and not at any other time.

(vi) The distress levied shall not be excessive, that is to say, the property distrained shall be as nearly as possible proportionate to the sum due by the defaulter together with interest and all expenses incidental to the distraint, detention and sale.

(vii) If crops are ungathered products of the land belonging to a defaulter are attached, the Recovery officer may cause them to be sold when fit for reaping or gathering or at his option may cause them to be reaped or gathered in due season and stored in proper place until sold. In the latter case, the expenses of reaping or gathering and storing such crops or products shall be defrayed by the owner upon his redeeming the property or from the proceeds of the sale in the event of its being sold.

(viii) The Recovery Officer shall not work the bullocks or cattle, or make use of the goods or effects distrained, and he shall provide the necessary food for the cattle livestock, the expenses attending which shall be defrayed by the owner upon his redeeming the property, or from proceeds of the sale in the event of its being sold.

(ix) The Recovery Officer may force upon any stable, cow house, granary, godown, out house or other building and he may also enter any dwelling house, the outer door of which may be open and may break open the door of any room in such dwelling house for the purpose of attaching property belonging to a defaulter and lodged therein, provided always that it shall not be lawful for the Recovery Officer to break open or enter any apartment in such dwelling house appropriated for the occupation of women except as hereinafter provided.

(x) Where the Recovery Officer may have reason to suppose that the property of a defaulter is lodged within a dwelling house, the outer door of which may be shut, or within any apartments appropriate to women which, by the usage of the country, are considered private, the Recovery Officer shall represent the fact to the officer-in-charge of the nearest police station. On such representation, the officer-incharge of the said station shall send a Police Officer to the spot in the presence of whom the Recovery Officer may force to open the outer door of such dwelling house in like manner as he may break open the door of any other room within the house. The Recovery Officer may also in the presence of the Police Officer, after due notice given for the removal of women and, after furnishing means for their removal in suitable manner (if they be women of rank who according to the customs of the country cannot appear in public) enter the rooms for the purpose of distraining the property of the defaulter, if any, deposited therein but such property, if found, shall be immediately removed from such rooms, after which they shall be left free to the former occupants,

(xi) The Recovery Officer shall on the day previous to and on the day of sale cause proclamation in Form 29 of the time and place of the intended sale to be made by beat of drum in the village in which the defaulter resides and in such other place or places as the Registrar may consider necessary to give due publicity to the sale.

(xii) No sale will take place until after the expiration of the period of fifteen days from the date on which the sale notice has been served or affixed in the manner specified in clause (i), provided that where the property seized is subject to speedy and natural decay, or where the expenses of keeping it in custody are likely to exceed its value, the Recovery Officer may sell it at any time before the expiry of the said period of fifteen days unless the amount due is sooner paid,

(xiii) At the appointed time, the property shall be put up in one or more lots as the Recovery Officer may consider advisable, and shall be disposed of to the highest bidder :

Provided that it shall be open to the Recovery Officer to decline to accept the highest bid where the price offered appears to be unduly low or for other sufficient reasons :

Provided further, that the Registrar or the Recovery Officer may, in his discretion, adjourn the sale to a specified day and hour, recording his reasons for such adjournment, where a sale is so adjourned for a longer period than seven days, a fresh proclamation under clause (xi) shall be made unless the defaulter consents to waive it.

(xiv) Where the property is sold for more than the amount due, the excess amount, after deducting the interest and the expenses of process and the other charges shall be paid to the defaulter,

(xv) The property shall be paid for in cash at the time of sale or as soon thereafter as the officer holding the sale shall appoint and the purchaser shall not be permitted to carry away any part of the property until he has paid for it in full.

(xvi) Where the purchaser fails in the payment of the purchase money, the property shall be resold.

(xvii) Where it is proved to the satisfaction of any civil court of competent jurisdiction that any property which has been distrained under these rules has been forcibly or clandestinely removed by any person, the court may order forthwith such property to be restored to the Recovery Officer.

(xviii) Where prior to the day fixed for the sale, the defaulter or any person acting on his behalf or any person claiming an interest in the property attached, pays the full amount due including interest and other costs incurred in attaching the property the Recovery Officer shall cancel the order of attachment and release the property forthwith.

(xix) No member of the committee of a society having the debt or outstanding demand for which the sale is being made, shall without the express permission of the Registrar bid either directly or indirectly for the purchase of the property which is subject to charge under Section 36.

(xx) No officer or other person having a duty to perform in connection with any sale shall, whether directly or indirectly bid for, acquire or attempt to acquire any interest in the property sold.

(xxi) Where the property is sold, of which actual seizure has been made, it shall be delivered to the purchaser. Where the property sold is in the possession of any person delivery thereof the purchaser shall be made by giving notice to the person in possession him delivering possession of the property to any other person except the purchaser.

Where the movable property to be attached is the salary or allowance or wages of a public officer or of a servant of railway administration or local authority or a firm or a company, the Recovery Officer may order in Form 30 that the amount shall, subject to the provisions of Section 60 of the Code of Civil Procedure, 1908 (Central Act V of 1908), be withheld from such salary or allowance or wages either in one payment or by monthly instalments as the Recovery Officer may direct and upon notice of the order, the officer or other person whose duty is to disburse such salary or allowances or wages shall withhold and remit to the Recovery Officer, the requisite amount.

(1) Where the property to be attached is a decree either for the payment of money or for sale in enforcement of a mortgage or charge, the attachment shall be made-

(a) if the decree sought to be attached was passed by the Registrar or by any person to whom a dispute was referred by the Registrar under Section 61, on the order of the Registrar on the application of the Recovery Officer;

(b) if the decree sought to be attached was passed by a court and has not been sent for execution to any other court by the issue to such court of a notice by the Recovery Officer, requesting such court to stay the execution of its decree unless and until-

(i) the Recovery Officer cancels the notice, or

(ii) the holder of the decree sought to be executed by the Registrar or the judgment-debtor thereof applies to the court receiving such notice to execute its own decree; and

(c) if the decree sought to be attached is pending execution in a Court which did not pass the same, by the Recovery Officer seeking to attach such decree in execution, sending the notice referred to in clause (b) to such Court, whereupon the provisions of that clause shall apply in the same manner as if such Court had passed the decree and the said notice had been sent to it in pursuance of the said clause.

(2) Where the Registrar makes an order under clause (a) of sub-rule (1) or when a Court receives a notice under clause (b) or (c) of the said sub-rule, the Registrar or the Court shall, on the application of the decree-holder who has got the decree attached or his defaulter proceed to execute the attached decree and apply the net proceeds in satisfaction of the decree being executed by the Recovery Officer.

(3) The holder of a decree sought to be executed by the attachment of another decree of the nature specified in sub-rule (1) shall be deemed to be the representative of the holder of the attached decree and to be entitled to execute such attached decree in any manner lawful for the holder thereof.

(4) The holder of a decree attached under this rule shall give the court or the Recovery Officer executing the decree such information and aid as may reasonably be required.

(5) On the application of the holder of a decree sought to be executed by the attachment of another decree, the Recovery Officer shall give notice of such order to the judgment-debtor bound by the decree attached, and no payment or adjustment of the attached decree made by the judgment debtor in contravention of such order after receipt of notice thereof, shall be recognised so long as the attachment remains in force.

(1) Where the movable property to be attached is-

(a) a debt due to the defaulter in question,

(b) a share in the capital of a corporation or a deposit invested therein, or

(c) other movable property not in the possession of the defaulter except property deposited in or in the custody of any Civil Court, the attachment shall be made by a written order signed by the Recovery Officer prohibiting-

(i) in the case of the debt, the creditor from recovering the debt and the debtors from making payment thereof,

(ii) in the case of the share or deposit, the person in whose name the share or the deposit may be standing from transferring the share or deposit or receiving any dividend or interest thereon, and

(iii) in the case of the other movable property except as aforesaid, the person in possession of it from giving it over to the defaulters.

(2) A copy of such order shall be sent in the case of the debt, to the debtor, in the case of the share or deposit, to the proper officer of the corporation and in the case of the other movable property, (except as aforesaid), to the person in possession of such property. As soon as the debt referred to in clause (a) of sub-rule (1) or the deposit referred to in clause (b) of that sub-rule matures, the Recovery Officer may direct the person concerned to pay the amount to him. Where the share is not withdrawable, the Recovery Officer shall arrange for its sale through a broker. Where the share is withdrawable, its value shall be paid to the Recovery Officer as soon as it becomes payable. In the case of the other movable property referred to in clause (c) of sub-rule (1), the person concerned shall place it in the hands of the Recovery Officer, as soon as it becomes deliverable to the defaulter.

In the attachment and sale or sale without attachment of immovable property, the following rules shall be observed :-

(i) The application presented under rule 116 shall contain a description of the immovable property to be proceeded against, sufficient for its identification and in case such property can be identified by boundaries or numbers in record of settlement or survey, the specification of such boundaries or numbers and the specification of the defaulter's share or interest in such property to the best of the belief of the decree-holder and so far as he has been able to ascertain it.

(ii) The demand notice issued by the Registrar under sub-rule (5) of rule 116 shall contain the name of the defaulter, the amount due including the expenses, if any, and the time allowed for payment and in case of nonpayment, the particulars of the properties to be attached and sold or to be sold without attachment as the case may be. After receiving the demand notice, the Recovery Officer shall serve or cause to be served a copy of the demand notice upon the defaulter or upon some adult male member of his family at his usual place of residence coupon his authorised agent, or if such personal service is not possible shall fix a copy thereof on some conspicuous part of his last known residence, or on some conspicuous part of the immovable property about to be attached and sold or sold without attachment, as the case may be :

Provided that where the Recovery Officer is satisfied that a defaulter with intent to defeat or delay the execution proceedings against him is about to dispose of the whole or any part of his property, the demand notice issued by the Registrar under sub-rule (5) of rule 116 shall not allow any time to the defaulter for the payment of the amount due by him and the property of the defaulter shall be attached forthwith.

(iii) If the defaulter fails to pay the amount specified in the demand notice within the time allowed, the Recovery Officer shall proceed to attach and sell or sell without attachment, as the case may be, the immovable property noted in the application for execution in the manner hereinafter specified.

(iv) Where the attachment is required before sale, the Recovery Officer shall, if possible, cause a notice of attachment to be served on the defaulter personally. Where the personal service is not possible, the notice shall be affixed in some conspicuous part of the defaulter's last known residence, if any. The fact of attachment shall also be proclaimed by beat of drum or other customary mode at some place on or adjacent to such property and at such other place or places as the Registrar may consider necessary to give due publicity to the sale. The attachment notice shall set forth that unless the amount due with interest and expenses be paid within the date therein mentioned, the property will be brought to sale. A copy of the notice shall be sent to the decree-holder, where the Recovery Officer so directs, the attachment shall also be notified by public proclamation in a local newspaper.

(v) Proclamation of sale shall be published by affixing a notice in the office of the Registrar at least thirty days before the date fixed for the sale. Such proclamation shall state the decree-holder and the defaulter, the time and place of sale and also shall specify as fairly and accurately as possible :-

(a) the property to be sold;

(b) any encumbrance to which the property is liable; and

(c) every other matter which the Recovery Officer considers material for a purchaser to know in order to judge the nature and value of the property.

(vi) When any immovable property is sold under these rules, the sale shall be subject to the prior encumbrances on the property, if any. The decreeholder shall, when the amount for the realisation of which the sale is held, exceeds Rs. 100, furnish to the Recovery Officer within such time as may be fixed by him or by the Registrar an encumbrance certified from the Registration Department for a period of not less than twelve years prior to the date of attachment of the property sought to be sold. The time for production of the encumbrance certificate may be extended at the discretion of the Recovery Officer or the Registrar. The sale shall be by public auction to the highest bidder, provided that it shall be open to the Recovery Officer to decline to accept the highest bid where the price offered appears to be unduly low or for other reasons and provided also that the Recovery Officer may in his discretion, adjourn the sale to a specified day and hour, recording his reasons for such adjournment. Where a sale is so adjourned for a longer period than seven days, a fresh notice shall be issued unless the defaulter consents to waive it. The sale shall be held after the expiry of not less than thirty days calculated from the date on which notice of the proclamation was affixed in the office of the Registrar and the place of sale shall be the village where the property to be sold is situated or such adjoining prominent place of public resort as may be fixed by the Recovery Officer.

(vii) A sum of money equal to 25 per cent of the price of the immovable property shall be deposited by the purchaser in the hands of the Recovery Officer at the time of the purchase, and in default of such deposit, the property shall forthwith be resold.

(viii) The remainder of the purchase money and the amount required for the general stamp for the certificate shall be paid within fifteen days from the date of sale :

Provided that the time for payment of the cost of the stamp, may, for good and sufficient reasons, be extended at the discretion of the Registrar upto thirty days from the date of sale :

Provided further that in calculating the amount to be paid under this clause, the purchaser shall have the advantage of any set off to which he may be entitled.

(ix) In default of payment within the period mentioned in clause (viii), the deposit may, if the Registrar thinks fit, after defraying the expenses of the sale be forfeited to the Government and the defaulting purchaser shall forfeit all claims to the property or to any part of the sum for which it may subsequently be sold.

(x) Every resale of immovable property in default of payment of the amounts mentioned in clause (viii) within the period allowed for such payment shall be made after the issue of fresh proclamation in the manner and for the period hereinbefore specified for the sale,

(xi) Where a decree-holder purchases the property, the purchase money and the amount due on the decree shall be set off against one another, and the Recovery Officer shall enter up satisfaction of the decree in whole or in part accordingly.

(xii) Where prior to the date fixed for sale, the defaulter or any person acting on his behalf or any person claiming an interest in the property sought to be sold tenders payment of the full amount due together with interest and other expenses incurred in bringing the property to sale, including the expenses of attachment, if any, the Recovery Officer shall forthwith release the property after cancelling, where the property has been attached, the order of attachment.

(1) Where immovable property has been sold by the Recovery Officer, any person either owning such property or holding an interest therein by virtue of a title acquired before such sale may apply to have the sale set aside on his depositing with the Recovery Officer

(a) for payment to the purchaser, a sum equal to 2 percent of the purchase money, and

(b) for payment to the decree-holder, the amount of arrears specified in the proclamation of sale as that for the recovery of which the sale was ordered together with interest thereon and the expenses of attachment, if any, and sale and other costs due in respect of such amount less any amount which may since the date of such proclamation have been received by such decree-holder.

(2) If such deposit and application are made within thirty days from the date of sale, the Registrar shall pass an order setting aside the sale and shall repay to the purchaser the purchase money so far as it has been deposited, together with the 2 percent deposited by the applicant :

Provided that if more persons than one have made deposit and application under this rule, the application of the first depositor to the Recovery Officer shall be accepted.

(1) At any time within thirty days from the date of the sale of immovable property, the decree-holder or any person entitled to share in a rateable distribution of the assets or where interests are effected by the sale, may apply to the Registrar to set aside the sale, on the ground of a material irregularity or mistake or fraud in publishing or conducting the sale :

Provided that no sale shall be set aside on the ground aforesaid unless the Registrar is satisfied that the applicant has sustained substantial injury by reason of such irregularity, mistake or fraud.

(2) If the application is allowed, the Registrar shall set aside the sale and may direct a fresh one.

(3) On the expiration of thirty days from the date of sale if no application to have the sale set aside is made under rule 123 or under sub-rule (1) of this rule or if such application has been made and rejected, the Registrar shall make an order confirming the sale :

Provided that if he shall have reason to believe that the sale ought to be set aside notwithstanding that no such application has been made on grounds other than those alleged in any application which has been made are rejected, he may after recording his reasons in writing set aside the sale.

(4) Whenever the sale of any immovable property is not so confirmed or is set aside, the deposit or the purchase money, as the case may be, shall be returned to the purchaser.

(5) After the confirmation of any such sale, the Recovery Officer shall grant a certificate of sale bearing his seal and signature to the purchaser.

(6) Such certificate shall state the property sold and the name of the purchaser and it shall be conclusive evidence of the fact of the purchase in all courts and tribunals, where it may be necessary to prove it and no proof of the seal or signature of the Recovery Officer shall be necessary unless the authority before whom it is produced shall have reason to doubt its genuineness.

Where any lawful purchaser of immovable property is resisted and prevented by any person other than a person not being the defaulter claiming in good faith to be in possession of the property on his own account, from obtaining possession of the immovable property purchased, any court of competent jurisdiction on application and production of the certificate of sale provided for by rule 124 shall cause the proper process to be issued for the purpose of putting such purchaser in possession, in the same manner as if the immovable property purchased has been decreed to the purchaser by a decision of the court.

The Recovery Officer may sell the whole or any portion of the immovable property of a defaulter in discharge of money due provided always that so far as may be practicable, no larger section or portion of the immovable property shall be sold than may be sufficient to discharge the amount due with interest, and expenses of attachment, if any, and sale.

Where an attachment has been made under these rules, and private transfer or delivery of the property attached or of any interest therein and any payment to the defaulter of any debt, dividend or other moneys contrary to such attachment shall be void as against all claims enforceable under the attachment.

Explanation- For the purposes of this rule, claims enforceable under an attachment include claims for the rateable distribution of assets.

Every person making a payment towards any money due for the recovery of which application has been made under these rules shall be entitled to a receipt for the amount signed by the Recovery Officer or other officer empowered by the Registrar. Such receipt shall state the name of the person making the payment and the subject-matter in respect of which the payment is made.

(1) Where any claim is preferred to, or any objection is made to the attachment of any property attached under those rules on the ground that such property is not liable to such attachment, the Recovery Officer shall investigate the claim or objection and dispose of it on merits.

(2) Where the property to which the claim or objection relates, has been advertised for sale, the Recovery Officer may postpone the sale pending the investigation of the claim or objection.

Where any property had been attached in execution of a decree but by reason of the decree-holder's default, the Recovery Officer is unable to proceed further with the application for execution, he shall either dismiss the application or for any sufficient reason adjourn the proceedings to a future date. Upon the dismissal of such application, the attachment shall cease.

Where assets are held by the Recovery Officer and before the receipts of such assets, demand notices in pursuance of applications for execution of decree against the same defaulter have been received from more than one decree-holder and the decree-holders have not obtained satisfaction, the assets after deducting the cost of realisation, shall be rateably distributed by the Recovery Officer among all such decree-holders in the manner provided in Section 73 of the Code of Civil Procedure, 1908 (Central Act V of 1908).

(1) Attachment of property prior to award of decree shall be made in the manner provided in the foregoing rules of this Chapter.

(2) Attachment made under sub-rule (1) shall not affect the rights existing prior to the attachment of persons not parties to the proceedings in connection with which the attachment was made, nor bar any person holding a decree against the person whose property is attached from applying for the sale of the property under attachment in execution of such decree.

(3) Where property is under attachment by virtue of the provisions of this rule and a decree is subsequently passed against the person whose property is attached, it shall not be necessary to file an application for execution of such decree and to apply for re-attachment of the property.

Where an attachment has been made, any private transfer or delivery of the property attached or of any interest therein and any payment to the judgement-debtor of any debt dividend or other moneys contrary to such attachment, shall be void as against all claims enforceable under the attachment.

Explanation : For the purposes of this rule, claims enforceable under an attachment include claims for the rateable distribution of assets.

(1) A judgment-debtor may be arrested in execution of a decree at any hour and on any day, and shall as soon as practicable, be brought before the Recovery Officer and his detention may be in the civil prison or in the Central Jail :

Provided firstly, that for the propose of making an arrest under this rule, no dwelling house shall be entered after sunset and before sunrise :

Provided secondly, that no outer door of a dwelling house shall be broken open unless such dwelling house is in the occupancy of the judgment-debtor and he refuses or in any way prevents access thereto, but when the officer authorised to make the arrest has duly gained access to any dwelling house, he may break open the door of any room in which he has reason to believe the judgment-debtor is to be found :

Provided thirdly, that, if the room is in the actual occupancy of a woman who is not the judgment-debtor and who according to the customs of the country does not appear in public, the officer authorised to make the arrest shall give notice to her that she is at liberty to withdraw, and after allowing a reasonable time for her to withdraw, and giving her reasonable facility for withdrawing, may enter the room for the purpose of making the arrest :

Provided fourthly, that, where the decree in execution of which a judgment-debtor is arrested, is a decree for the payment of money and the judgment-debtor pays the amount of the decree and the costs of the arrest to the officer arresting him, such officer shall at once release him.

(2) The Lieutenant Governor may, by notification in the Official Gazette, declare that any person or class of persons whose arrest might be attended with danger of inconvenience to the public shall not be liable to arrest in execution of a decree otherwise than in accordance with such procedure as may be prescribed by him in this behalf.

(3) Where a judgment-debtor is arrested in execution of a decree for the payment of money and brought before the Recovery Officer, he shall inform him that he may apply to be declared an insolvent, and that he may be discharged if he has not committed any act of bad faith regarding the subject of the application and if the complied with the provisions of the law of insolvency for the time being in force.

(4) Where a judgment-debtor expresses his intention to apply to be declared an insolvent and furnishes security to the satisfaction of the Recovery Officer that he will within one month so apply, and that he will appear, when called upon, in any proceeding upon the application or upon the decree in execution of which he was arrested, the Recovery Officer may release him from arrest, and if he fails so to apply and to appear, the Recovery Officer may either direct the security to be realised or commit him to the civil prison in execution of the decree.

Notwithstanding anything in this part, the Recovery Officer shall not order the arrest or detention in the civil prison of a woman in execution of a decree for the payment of money.

(1) Every person detained in the civil prison in execution of a decree shall be so detained :

(a) where the decree is for the payment of a sum of money exceeding fifty rupees, for a period of six months, and

(b) in any other case, for a period of six weeks, provided that he shall be released from such detention before the expiration of the said period of six months or six weeks, as the case may be.

(i) on the amount mentioned in the warrant for his detention being paid to the Recovery Officer;

(ii) on the decree against him being otherwise fully satisfied;

(iii) on the request of the person, on whose application he has been so detained and if the Recovery Officer is fully satisfied that the decree was satisfied; or

(iv) on the omission of the person, on whose application he has been so detained, to pay subsistence allowance:

Provided also that he shall not be released from such detention without the order of the Recovery Officer.

(2) A judgment-debtor released from detention under this rule shall not merely by reason of his release be discharged from his debt, but he shall not be liable to be rearrested under the decree in execution of which he was detained in the civil prison.

The provisions of rules 116 to 136 shall apply in regard to the recovery of any sum due to the Government from a society or from an officer, former officer, member or past or deceased member of a society in pursuance of a demand issued by the Registrar or by any authority competent to issue such demand including any costs awarded to the Government in proceedings under the Act as if the Government were a decree-holder and the society or officer, former officer, member or past or deceased member of a society, as the case may be, was a defaulter, subject to the following modifications, namely :-

(1) The Registrar may, of his own motion, take any steps which he may deem suitable in the matter of such recovery in accordance with the provisions of those rules and without any application having been made to him in that behalf under those rules.

(2) It shall not be necessary to deposit any sum by way of costs as required by these rules.

(3) It shall not be necessary for the Recovery Officer to give the decree-holder previous notice.

(4) It shall not be necessary to send a copy of the attachment notice to the decree-holder.

(5) It shall not be necessary to give notice of the proclamation of sale to the decree-holder.

The Recovery Officer shall not go behind the decree or the certificate issued by the Registrar pursuant of proviso to clause (a) of Section 71. He shall not alter it nor shall entertain any objection as to validity or legality or correctness of the decree or the certificate under execution :

Provided that a decree passed against a person who was dead at the time of passing the decree without bringing his legal representative on the record shall not be executed :

Provided further that where terms of a decree are ambiguous, it will be competent for the Recovery Officer to ascertain its precise terms first before issuing any process for execution.

(1) All questions arising between the parties to the arbitration proceedings in which award was made or amount certified to be recovered as arrears of land revenue, and relating to execution, discharge, or satisfaction of the decision, award or order under execution shall be determined by the Recovery Officer, executing the decree, award, decision or order.

(2) Where a question arises as to whether a person is, or is not the legal representative of a party, such question shall be decided by the Recovery Officer for purposes of execution, discharge or satisfaction of the decree, award, decision or order under execution.

(1) A decree-holder will have the right to execute his decree in order to realise the fruits of his litigation and for that purpose he may make any number of applications in succession. The Recovery Officer shall not refuse execution unless this application is barred by article 136 of the Indian Limitation Act, 1963 (Act No. 36 of 1963).

(2) Notwithstanding anything contained in the by-laws or these rules, if in the opinion of the Registrar any co-operative society is reluctant to take or does not take execution against judgment-debtor due to false sympathy or otherwise, the Registrar may, by an order in writing authorise any officer of the Financing Bank to call and to send the award or orders obtained by the co-operative society for execution. The financing bank thereupon shall take action for the execution of such decree as if it is a decree-holder itself.

(1) The liquidator shall take necessary action to get the decree in favour of a co-operative society in respect of which he has been appointed the liquidator, executed, in accordance with the provisions of this Chapter.

(2) Any order issued by the liquidator against any contributory shall be executed in the manner prescribed in rules 111 to 115 provided that he shall not be required to deposit the execution charges alongwith the application for execution.

A decree-holder applying to execute a decree shall give the Registrar and Recovery Officer such information and aid as may reasonably be required.

A tribunal constituted by the Lt. Governor, under sub-section (1) of Section 78 shall be called the Delhi Co-operative Tribunal whether it consists of one or more members (hereinafter referred to as the "Tribunal").

(1) Where the Tribunal consists of only one member, he shall be designated as "Presiding Officer of the Tribunal" and where the Tribunal consists of more than one member, one of them shall be designated as President and others as members of the Tribunal.

(2) The Presiding Officer or the President of the Tribunal shall be a person who has been a judge of any High Court, or a retired Distt. Judge or a person who has for not less than 10 years been an advocate or a pleader, or who has held the office of the Registrar, Joint Registrar or Deputy Registrar for not less than continuous period of three years at a time, or has not less than five years' judicial experience at his credit. Provided that the Lt. Governor shall be competent to relax the qualifications in case of any person otherwise qualified in his opinion which shall not be called in question in any Civil or Revenue Court.

(3) The other member(s) of the Tribunal shall be non-official closely associated with co-operative movement provided that at the time of his appointment as a member, he shall neither be holding any office of profit under the Central Government, Delhi Administration, any local authority or of any co-operative society, the Committee of a Cooperative Society or its paid officer, nor he shall be a member of the committee of any co-operative society other than an educational cooperative society or a federal society which in the opinion of the Registrar is not a business institution.

(1) The Presiding Officer or the President of the Tribunal shall ordinarily hold office for a period of not less than two years and not more than five years as the Lt. Governor may specify by notification in the Official Gazette. If no such term is specified, he shall hold office for a period of two years from the date of his appointment.

(2) The other members of the Tribunal shall hold office for a period of one year. They will be eligible for re-appointment.

(3) The Presiding Officer, President and any other member of the Tribunal, may resign his office at any time.

(4) The Lt. Governor may also terminate the appointment of the Presiding Officer, President or any other member of the Tribunal at any time without assigning any reason, or giving any notice, if in the opinion of the Lieutenant Governor he is unable or unfit to continue to perform the duties of his office or he has accepted any office or appointment without his prior approval.

(5) If any vacancy by leave of absence, deputation, death, resignation, expiry of the period of appointment, termination of the appointment, or for any other cause whatsoever, such vacancy shall be filled up by a person qualified for appointment.

The Presiding Officer, the President or other member of the Tribunal may with the previous permission of the Lt. Governor hold any other office, appointment or employment of evocation or carry on any profession or business, provided that holding of such office, employment evocation or carry on such profession or business is not inconsistent with his position on the Tribunal.

The proceedings of the Tribunal shall be governed as far as practicable by the provisions of the Code of Civil Procedure, 1908 (Central Act V of 1908).

The place of the Headquarter and the time of sitting of the Tribunal shall be notified by the Registrar in the Official Gazette.

Where the Tribunal consists of more than one member, the decision of the majority shall prevail. Where the members are equally divided, the decision of the President shall be the decision of the Tribunal in that case.

(1) An appeal under sub-section (2) of Section 76 or an application for revision under sub-section (6) of Section 78 and Section 80 shall be either presented in person or sent by registered post to the appellate or revising authority.

(2) The appeal or the application for revision shall be in the form of a memorandum and shall be accompanied by the original or certified copy of the order appealed from or sought to be revised.

(3) Every appeal or application for revision shall-

(a) specify the name and address of the appellant or applicant and also the name and address of the respondents, as the case may be;

(b) state by whom the order appealed from or sought to be revised was made;

(c) set forth concisely and under distinct heads, the grounds of objection to the order appealed from or sought to be revised together with a memorandum of evidence;

(d) state precisely the relief which the appellant or the applicant claims; and

(e) give the date of the order appealed from or sought to be revised.

(4) Where an appeal under sub-section (2) of Section 76 is preferred after the said expiry of sixty days specified in sub-section (2) of the said section, it shall be accompanied by a petition supported by an affidavit setting forth the facts on which the appellant relies to satisfy the appellate authority that he had sufficient cause for not preferring the appeal within the said period of sixty days.

(5) On receipt of the appeal or the application for revision, the appellate or revising authority shall as soon as possible examine it and ensure that-

(a) the person presenting the appeal or the application has the locus standi to do so;

(b) it is made within the prescribed time-limit; and

(c) it conforms to all the provisions of the Act and these rules.

(6) The appellate or revising authority may call upon the appellant or the applicant for revision to remedy the defects, if any, or furnish such additional information as may be necessary, within a period of fifteen days of the receipt of the notice to do so. If the appellant or the applicant for revision fails to remedy the defects or furnish the additional information called for within the said period, the appeal or the revision petition may be dismissed.

(7) The revising authority may, before passing orders under sub-section (6) of Section 78 or under Section 80, obtain from any subordinate officer such further information in regard to the enquiry or the proceedings for the purpose of verifying the regularity of such proceedings or the correctness, legality or propriety of any decision passed or order made therein. The revising authority may also call for and obtain from the parties connected with such enquiry or proceedings such information as is necessary with reference to the examination of the records of enquiry or proceedings and the information obtained from the subordinate officer.

(8) In the proceedings before the appellate or revising authority, legal practitioners shall be entitled to appear to represent parties.

(9) The appellate or revising authority shall on the basis of the enquiry conducted and with reference to the records examined pass such order on the appeal or on the application for revision as may seem just and reasonable.

(10) Every order of the appellate or revising authority under sub-section (2) of Section 76 or sub-section (6) of Section 78 or Section 80, as the case may be, shall be in writing and it shall be communicated to the appellant or applicant, to such other parties as in the opinion of that authority are likely to be affected by the decision or order and to the officer concerned against whose order the appeal or the application for revision was made.

(1) Every application under sub-section (1) of Section 79 shall be in the form of a memorandum setting forth concisely and under distinct heads the new and important facts which, after the exercise of due diligence, were not then within the knowledge of the applicant or could not be produced by him when the order was made or mistakes or errors apparent on the face of the record of other reasons on the basis of which review is sought. It shall be accompanied by a memorandum of evidence.

(2) The application shall be accompanied by the original or a certified copy of the order to which the application relates.

(3) No application for review shall be entertained unless it is accompanied by such additional number of copies as there are parties to the original order.

(4) The application shall, so far as it may be necessary, be disposed of by the Tribunal or Registrar or Lt. Governor in such manner as may be deemed fit, provided that no order prejudicial to any person shall be passed unless such person has been given an opportunity for making his representation.

The forms of various processes to be issued by any authority in exercise of its powers under sub-section (1) of Section 94 shall be those given in Schedule V and may be modified or altered by such authority according to exigency.

(1) The following documents shall be treated as public documents :-

(a)The Registration Register.

(b) The Registration certificate of a society,

(c) The registered by-laws of the society including registered amendments.

(d) Any order cancelling the registration of the society.

(e) Annual accounts of the society as audited by the Registrar.

(f) Any decision of the Registrar or award of the Arbitrator.

(2) Without prejudice to the provisions of Sections 123,124,128 and 131 of the Indian Evidence Act, 1872, all the public documents shall be open to inspection by any member of the public on payment of a fee of Rs. 1 for each occasion for any lawful purpose.

(1) Notwithstanding anything contained in these rules, the procedure laid down in this rule shall apply to a society in which either shares have been subscribed by the Government or liability by way of guarantee for borrowing exceeding fifty per cent of the working capital of the society has been undertaken by the Government :

Provided that it shall not be incumbent upon such a society to follow the procedure laid down in clauses (i) and (ii) if its working capital does not exceed Rs. 1,00,000 or it does not have another cooperative society as its member.

(2)

(i) Notice of all general body meetings shall be given to the Registrar. The Registrar may, of his own motion or on a reference made to him, declare the proceedings of the general meetings as invalid, if he is satisfied that the meeting was held without proper notice or without all the members not having received the notice for the meeting or if the meeting was not conducted at the appropriate place and time.

(ii) No matter shall, except with the permission or direction or directions of the Registrar be considered either in a meeting of a general body or committee or in a meeting of any smaller body set up if the agenda of which is not circulated to all members at least fifteen clear days or seven days in advance, respectively,

(iii) Should a difference of opinion in respect of any matter arise between a nominated member of the committee and other members thereof, the opinion of the nominated member shall be recorded in the minutes of the proceedings of the meeting in the words of the nominated member and the proceedings shall also be got signed from the nominated member. The Chairman, shall, as soon as possible, make a reference to the Lt. Governor and if no reference is made within seven days of the date of the meeting, the Registrar may, on receipt of a report from a nominated member make a reference to the Lt. Governor for getting his decision which shall be final on the issue on which difference of opinion was so recorded.

(3) In a society in which shares have been subscribed by the Government, the Registrar may, after such inquiry as he may deem fit and after having the person concerned a reasonable opportunity of showing cause, remove any member of the committee who has been guilty of any act or omission resulting in financial loss to the society.

The Lieutenant Governor may, by general or special order, exempt any society or any class of societies from any of the provisions of these rules or may direct that such provisions shall apply to such society or class of societies with such modifications and/or conditions as may be specified in the order.

(1) The Financing Bank shall render free of charge such banking services to the Registrar as he may require to carry out the purposes of the Act and the rules.

(2) Without prejudice to the generality of the foregoing sub-rule (1), the Financing Bank shall render the following banking services to the Registrar, namely :-

(a) maintenance of "Audit Fee Recovery Fund" in which all receipts and payments on account of audit fee leviable under the rules shall be booked;

(b) maintenance of "Settlement and Execution Expenses Fee Fund" in which all receipts relating to the fees leviable under the rules for settlement of disputes and execution of decrees, and payment from the Fund shall be recorded;

(c) current account to be opened in the name of societies under liquidation to be operated upon by the liquidator;

(d) current account of the Recovery Officer for temporary credit of dues on account and payment to decree-holders;

(e) current account of the Registrar relating to surplus funds of society whose registration has been cancelled. This account shall be called "Registrar Co-operative Societies Liquidation Account";

(f) Registrar Co-operative Societies Suspense Account for keeping amount of unclaimed amounts from the assets of society under liquidation; and

(g) Suspense Accounts of Societies under registration.

(3) All the above Funds shall be administered by the Registrar in accordance with the Regulations contained in Schedule IV.

(4) The Financing Bank would have no claim over the amount standing to the credit of the above accounts and funds from time to time. The Registrar may, however, allow in his discretion some service charges.

(5) All cheques deposited for credit to various funds and accounts referred to above shall be cleared through the Clearing House and proceeds thereof credited to various funds and accounts. Financing Bank shall issue pass books separately for each fund and account and shall supply the information of the transactions as may be required by the Registrar.

(6)The provisions of this rule shall apply to all funds held by the Financing Bank at the commencement of these rules relating to deposits held by it under the above heads.

If any doubt arises as to the interpretation of any of the provisions of these rules, the matter shall be referred to the Lt. Governor or such other officer as may be specified by the Lt. Governor by a general or special order in this behalf, and the Lt. Governor or such other officer shall decide the same.

The Delhi-Cooperative Societies Rules, 1950 are hereby repealed.

Provided that any action taken, order issued, by-laws made under the provisions of the rules hereby repealed shall, in so far as it is not inconsistent with the provisions of these rules, be deemed to have been taken, issued or made under the provisions of these rules.

FORM

[See sub-rule (1) or rule 6]

Form No. 1

[See sub-rule (1) or rule 6]

Application for registration of a co-operative society.

Application for registration of a co-operative society.

Application No. . Place

To

Date

(Designation of Registrar and other Officer Exercising the powers of the Registrar).

We, the undersigned, submit herewith a proposal for the registration of the Co-operative Society, the particulars of which are given below alongwith enclosures as indicated below :

(1) Name of the proposed society.

(2) Address to be registered.

(3) Whether liability limited or unlimited.

(4) Area of operation.

(5) Objects of the Society.

(6) Classification or Sub-classification.

(7) Total share capital to be subscribed and raised.

(8) No of shares to be issued for subscription and face value of each share.

(9) No. of shares issued up to the time of application and the total paid-up share capital at this date.

(10) Extent of liability of members over and above the value of shares held by each of them.

(11) Entrance fee collected.

(12) Amount deposited in the Delhi State Co-operative Bank Ltd.

(13) Language in which accounts or proceedings of the meetings shall be kept.

(14) List of documents enclosed.

[See sub- (1) of rule (6)]

We declare that the statements given above including that given in the enclosures are true and correct to the best of our knowledge and no material has been concealed therefrom or misrepresented thereon

SI.No. Full Name Whether individual or corporated body Age Nationality Place of residence No. of Shares subscribed and the amount paid in the share capital. Signature (where thumb impression, name, address and signature of two witnesses

1.

2.

Certified that all the persons who have signed the application are personal known to me and have signed in my presence.

Verification :

Certified that President and Secretary are known to me and they have signed in my presence.

Signature of the President Secretary Name and address of applicant elected as Members of Managing Committee :-

SI. No. Name Address Occupation Office to elected which Signatures 1. 2. 3. 4. 5. 6. 7 8. 9

Verification 2 :

The above persons have signed in my presence who were identified by

Shri-------------------------who is personally known to me.

Place : Signature.

Date : Stamp.

Notes :

(1) Verification (1) and (2) can be signed by a Gazetted Officer, Member of Parliament, Member of D.M.C., Member of Metropolitan Council, Delhi.

(2) Name of the society should not have any caste or religion name and should not resemble with that of any registered co-operative society.

FOR OFFICIAL USE

Received by the registered post on ------------...................----------by --------------------------in the office of the Registrar or by hand from Shri------------------------------------------entered in the register of application at S.No.................

(Signature of Officer receiving)

Received registration proposal No. ----------on-------------------for registration of--------------------------Society Ltd. (Proposed) alongwith the enclosure referred to above from.---------------by post.

Place : Assistant Registrar

Date : (Signature & Stamp)

Form

[See sub-rule (5) of rule 6 ]

Form No. 2

[See sub-rule (5) of rule 6 ]

Register of applications for registration received in the office of the Registrar/Additional/Joint/Deputy/Assistant Registrar

S.No.

Name of the proposed society

Place, Village and Distt.

Date of Receipt

Date of Acknowledgement

How received by post/hand delivery

No. and date on which additional in-formation is called.

1. 2. 3. 4. 5. 6. 7.

Prescribed day by which information is called

Date on which information received

No. and date of the report if any, sent to Govt., if the society is not registered within 3 months.

No. and date of registration

Order under Initials which registration is refused.

Remarks

8. 9. 10. 11. 12. 13. 14.

Form

[See sub-rule (3) of rule 7]

Form No. 3

[See sub-rule (3) of rule 7]

Office of the Registrar Co-operative Societies, Delhi Administration,

Delhi

.

In the matter of application for registration of a Co-operative Society under the Delhi Co-operative Societies Act, 1972.

Certificate

I do hereby certify that pursuant to the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972), a society by the name and type, of------------------- Society Ltd., with registered address-----------------------------------District- ......-...............-......................in the Union Territory of Delhi has been registered in my office at S. No. ---------.........on.........-------. The by-laws filed by the said society have also been duly registered. Given this---------------------day of -------------------at Delhi under my seal and signature.

Signature Stamp

Form

[See sub-rule (1) of Rule 8]

Form No. 4

[See sub-rule (1) of Rule 8]

Register of Co-operative Societies registered or deemed to be registered under the Act.

Part. . District.

Registered Sr. No.

Full Name & Address of the Society

Area of operation

Date of registration

Application No.

Class of societies as per rules

Sub-Classes.

1. 2. 3. 4. 5. 6. 7.

Page No. and date of Govt. Gazette notifying registration

Initials of Registrar

Date of winding up by the Registrar

Page No. and date of Govt. Gazette notifying winding up

No. and date of cancellation

Initials of the officer authoris-ed by the Registrar to keep the Register

Remarks

8. 9. 10. 11.. 12. 13. 14.

Form

[See sub-rule (4) of rule 8]

Form No. 5

[See sub-rule (4) of rule 8]

Statement showing the particulars of the Co-operative Societies deemed to have been registered under the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972)

S. No.

Existing registration No.

Date of registration

Name and address of registration

Classification under the rules

Objects

1. 2. 3. 4. 5. 6.

(See rule 10)

To,

The Special Secretary (Co-operation),

Delhi

Administration, Delhi,

Sub : Registration proposal No.------------report regarding ------------------

Sir,

I received a proposal for registration of a Co-operative Society by the name and style of---------------Co-operative Society Ltd.,--------------------- on which was registered in my office at S. No. -----------of the register of applications. It may not be possible to dispose of this proposal within a period of three months as laid down in sub-section (3) of section 9 of the Delhi Cooperative Societies Act, 1972 (Act No. 35 of 1972) for the following reasons, that is to say :

(1) The promoters have not been able to collect the share capital which is necessary for the successful working of the society.

(2) The promoters have not given information called for from them within the specified time.

(3) Details regarding immovable property proposed to be purchased/acquired/ transferred to the society are not given by the promoters.

(4) The concurrence of other departments regarding the feasibility of the scheme has not been received.

(5) The promoters have not been able to give detailed working of the scheme which they propose to implement.

(6) Any other reasons.

2. In the circumstances would request that Lt. Governor, Delhi may please be moved to allow me to register the society after the above requirement (s)

is/are fulfilled within a further period up to------------------.

ASSISTANT/DEPUTY/JOINT/ADDITIONAL REGISTRAR OF COOPERATIVE SOCIETIES

Submitted through the Joint/Additional Registrar/Registrar of Cooperative Societies for onward transmission of Government. N.B.The reasons for delay to be given in the body of the letter should be self-explanatory. Other reasons, if any, for the delay in the registration of the society should also be mentioned.

FORM

[See sub-rule (2) of rule 16]

[Form No. 7]

[See sub-rule (2) of rule 16]

By Registered Post A. D. Notice under rule 16(2)

To,

The Chairman,

...................-..........Co-operative Society

Sir,

It appears to me that an amendment/amendment of the by-laws of your society as indicated in the attached statement is/are desirable in the interest of your society.

I am to request you to consider this/these amendment/amendments in the interest of the society and to call upon you by this notice under rule. 16(2) of the Delhi Co-operative Societies Rules, 1973, to take necessary steps to make the amendments to the by-laws of your society within a period not exceeding sixty days from the date of receipt of this notice, failing which action will be taken as provided under Section 11(2) of the Delhi Co-operative Societies Act, 1972.

Yours faithfully,

Registrar of Co-operative Societies,

No...................

Date................

(Seal of the Officer)

Statement accompanying notice under rule 16(2)

S.No. The exact wording of existing by-laws By-laws as it would read after amendments Exact wordings of by-laws, if it is a new one Reasons why amendment (s) is considered necessary. 1 2. 3. 4. 5.

Form

[See sub-rule (4) of rule 20]

Form No. 8

[See sub-rule (4) of rule 20]

Notice to members, creditors and other person whose interest will be affected by the amalgamation/transfer of assets and liabilities / conversion/ division.

Notice is hereby given as required by sub-section (4) of Section 15 of the Delhi Co-operative Societies Act, 1972 by the ..................Society registered under No. --------------dated-------------and having its registered office at--------------------------to all members/creditors/persons interested that the Society, after obtaining the approval of the Registrar and a preliminary resolution to that effect having been passed by a special general meeting of the society held on--------------has decided to amalgamate itself with-------society, convert itself into------society, divide itself into (1)----- (2) -----------societies, transfer its assets and liabilities to-------------------- society. The details regarding the transfer of liabilities of the society to be amalgamated, transferred, converted or divided are given in the Schedule given below:

1. Applicable to societies amalgamating, transferring assets and liabilities or converting:

(1) Name of the society or societies.

(2) Statement showing the assets and liabilities of the society (to be enclosed).

(3) Names of members and creditors.

N.B. : Information should be given separately in respect of each society which is affected by the amalgamation, transfer of assets and liabilities or conversion.

II. Applicable to societies to be divided.

(1) Name of the society.

(2) Present area of operation.

(3) Statement showing assets and liabilities (to be enclosed).

(4) Names of members.

(5) Names of creditors.

III. Applicable to societies which will stand divided, particulars of (1) --......-.................Society.

(i) Assets and liabilities which will remain with the society after division (statement to be enclosed).

(ii) Proposed area of operation, (iii) Names of members who will remain with the society.

(iv) Names of creditors who will remain with the society. Particulars (2) ---------------Society of :

(i) Assets and liabilities which will remain with the society after division (statement to be enclosed).

(ii) Proposed area of operation.

(iii) Names of members who will remain with the society, (iv) Names of creditors who will remain with the society. Any person whose interest is affected by the proposed amalgamation/transfer of assets and liabilities, division or conversion may send his objections, if any, and give intimation of his option to become a member of any of the new societies to continue his membership in the amalgamated or converted society to demand payment of share or interest or dues, to the office of the society within one month from the date of this notice.

2. If no option is exercised and if no objection is received within one month, it will be assumed that the interested persons have assented to the decision.

(By order of the Managing Committee).

Place : Secretary

Dated:

Form

[See sub-rule (2) of rule 22]

Form No. 9

[See sub-rule (2) of rule 22]

Application for reconstruction of society

To,

The Registrar of Co-operative Societies, -----------------------------------------

In the special general meeting of ------------------------------------society at---------------------------------------called for the purpose of reconstruction of the society, the society has approved a compromise/arrangement with its creditors and/or members on the following lines :

(1) By reducing the claims of creditors.

(2) By reducing the value of the share capital.

(3) By revaluation of assets.

A detailed scheme worked out on the above lines is enclosed with a copy of the resolution passed by the special general meeting of the society referred to above.

We would request that the scheme of reconstruction of the society may please be approved and orders issued to that effect.

Chairman/Member/Creditor/Liquidator

Society.

[See rule 37]

Form No. 10

[See rule 37]

List of members of ------------------------------Co-operative Societies Ltd.

Address ..........................-.................

S.No. Membership No. Name in full Father's Husband's Name Address Name of the nominee, if any. 1. 2. 3. 4. 5. 6.

Form

(See Rule No. 46)

Form No. 11

(See Rule No. 46)

Name of the Co-operative Society;

Address:

Registration No. :

Receipt and Expenditure Account for the year ending the 30th June, 20------

(From 1.7.20 --------to 30.6.20------)

Receipts Expenditure Rs. P. Rs. P. 1. Share receipts 1. Share Capital withdrawn 2. Loans and deposits by members 2. Members' deposits withdrawn 3. Loans and deposits from non-members 3. Loans repaid to Government 4. Loans and deposits from primary societies. 4. Loans repaid to Central societies. 5. Loans and deposits from Government 5. Loans repaid to other Societies. 6. Loans and deposits from central societies. 6. Loans repaid to non-members. 7. Loans and deposits repaid by members. 7. Loans granted to members (individuals). 8. Loans and deposits repaid by banks and societies :(a) Central Banks (b) Other Societies 8. Loans granted to banks and societies :(a) Central Banks (b) Other Societies 9. Interest received. 9. Interest paid on loans and deposits.

Receipts Expenditure

Rs. P. Rs. P.

11. Other Income 11. Stock bought.

12. Purchase of :

(a) Members' products

(b) Non-members' products

13. Establishment and contingent charges.

14. Other items.

15. Carried to Reserve Fund.

Total

Total

Opening Balance Cash in hand Closing Balance : Cash in hand

Cash in Bank Cash in Bank

Grant Total Grand Total

Form

[See Rule 46]

Form No. 12

[See Rule 46]

Name of the Society..........................................

Address.............................................................

Registration No.................................................

PROFIT AND LOSS ACCOUNT For the year ending the 30th June, 20..

Last Year's figures Rs. P. Expenditure This Year's figures Rs. P. Last Year's figures Rs. P. Income This Year's Rs. P. 1. 2. 3. 4. 5. 6.

1. Interest 1. Interest received

(a) Paid Rs. (a) On loans and advances

(b) Payable Rs. (b) On investments

2. Bank Charges 2. Dividend received on shares

3. Salaries & allowances of staff. 3. Commission.

4. Contribution to staff 4. Miscellaneous income :

(a) Share transfer fees.

(b) Rent.

(c) Rebate in interest.

(d) Sale of forms

(e) Other items

Land income and expenditure accounts.

5. Salary & Allowances of Managing Director.

6. Attendance fee and Travelling Expenses of Directors and Committee Members

7. Travelling expenses of staff

8. Rent, rates and taxes.

9. Postage, telegram and telephone charges.

10. Printing & Stationery.

11. Audit Fees.

12. (Contingencies) general expenses.

13. Bad debts written off or provisions made for bad debts.

14. Depreciation on fixed assets.

15. Land income and expenditure.

16. Other items.

17. Net profit carried to Balance

Form

[See rule 46]

Form No. 13

[See rule 46]

Balance Sheet of.....................................Co-operative Society Ltd.

as on 30th June, 20....

Instructions in accordance with which liabilities should be made.

Liabilities Figures for the Figures for the Previous Year Current Year

Assets Figures for Figures for the Previous Current Year

Instructions in accordance with which assets should be made out.

1 2 3 4

I. Contributed by Govt. and by co-operative societies and different classes of individual members shall be shown separately. Terms of redemption or conversion of any redeemable preference shares should be mentioned.

I. Share Capital: Authorised Share of Rs....each subscribed (distinguishing between the various classes of capital and stating the particulars specified below in respect of each class), share of Rs ..... each. Less-Calls in arrears Add-calls in advance. LA. Subordination towards shares.

I. Cash and Bank balance : (a) Cash in Hand, (b) Cash in Bank, i) Current Account, ii) Savings Bank Account, iii) Call deposit on Bank.

I. Fixed deposits and call deposits with Central Banks and other approved bankers should be shown under the heading "Investments" and not under the heading "Cash and bank balance."

II.a) Statutory Reserve Fund and other reserves and funds shall be shown separately, b) Additions and deductions since last Balance Sheet to be shown under each of the specified heads, c) Funds in the nature of reserves and Funds created out of any profit for specific purposes should be shown separately, III. Staff Provident Fund and any other Insurance or Bonus Funds maintained for the benefit of the employees should be shown separately. IV. The nature of the security should be specified in each case where loans have been granted by Government or State Co-operative or Central Banks. A mention thereof should also be made together with the maximum amount of such guarantee loans from: (1) Government (2) State Co-op.

n. Reserve Fund and other funds a) Statutory reserve Fund, b) Building Fund c) Special Development Fund, d) Bad and Doubtful Debts Reserve e) Investment Depreciation f) Dividend Equalisation Fund, g) Bonus Equalization Find h) Reserve for overdue interest i) Other funds.III. Staff Provident Fund.IV. Secured Loans(a) Debentures (b) Loans, overdrafts and cash credit from Banks, (c) Loans from Government (d) Other secured Loans.

II. Investments: a) Government Securities, b) Other Trustee Securities, c) Non-Trustee securities, d) Shares of other Co-operative Societies, e) Shares, Debentures or Bonds of Companies registered under the Companies Act.f) Fixed Deposits.III. (1) Investment of Staff Provident Fund. (2) Advances against Staff Provident Fund.IV. Loans and Advances : (a) Loans, (b) Overdrafts (c) Cash credits : (i) Against pledge of goods. (ii) Clear (of which overdue Rs...) 2. Loans due by managing committee members Rs .......Loans by Secretary and other employees Rs .......

n. The nature of each investment and the mode of valuation (cost of market value) should be mentioned. If the book value of any security is less than the market value, a remark to that effect should be made against each item. in. Quoted and unquoted - securities should be shown separately.

IV. In case of Central Banks and other federal societies, loans due by societies and individual members should be shown separately.

1 2 3. 4. 5. 6.

Banks or Central Banks, State Bank of India and other Banks should be shown separately. V.VI.

Deposits from Societies and individuals should be shown separately.VII. V. Unsecured Loans : (a) Loans, Cash credits and overdrafts from Central Banks (b) From Government, (c) From Others, (d) Bills Payable. VI. Deposits: (a) Fixed deposits, (b) Recurring deposits, (c) Thrift or saving deposits, (d) Current deposits, (e) Deposits at call, (f) Other Deposits, (g) Credit balance in each credit and over-drafts as accounts. VII. Current Liabilities and previous : (a) Sundry Cre-ditors (b) Outstanding Creditors, i) for purchases, ii) for expenses, including sa-laries of staff rent, taxes, etc. (c) Advances, recoveries for the portion for which value has still to be given viz. unexpired subscriptions, premiums, commission, etc.

V. Sundry debtors : (1) Credit Sales (2) Advances (3) Others.VI. Current Assets. (1) Stores and spare parts. (2) Loose tools. (3) Stock-in-trade. (4) Works in progress.VII. Fixed deposits : (a) Lands and Buildings, (b) Lease-holds, (c) Railway sid-ing. (d) Plants and machinery(e) Loose tools, tackles and other equip-ments (f) Dead stock, (g) Furniture & fittings, (h) Livestock, (i) Vehicles, etc.

VI. Mode of valuation and stock shall be stated and the amount in respect of raw materials, partly finished and finished goods and store required for consumption should be stated separately. M o d e of valuation of works-in-progress as shallbe stated.VII. Under each head the original cost and the additions thereto and deductions therefrom made during the year and the total depreciation on written off or provided upto the end of the year should be stated.

1 2 3 4 5. 6.

VIII.IX.X.XI. Contingent liabilities which have not been provided for should also be mentioned in the Balance Sheet by way of a footnote.

VIII. Unpaid dividendsIX. Interest accrued due but not paid.X. Other liabilities (to be specified.)XI. Profit and Loss Accountant : Profit for last year less-appropriation. Add-current profits.

VIII. Mescellan- VIII. eous expen-ses and losses (1) Goodwill (2) Preliminary expenses (3) Expenses connected with the issue of shares and debentures including underwriting charges, brokerage, etc. (4) Deferred revenue expenditure. IX. Other items : IX. (a) Prepaid expenses, (b) Interest accrued but not due. (c) Other items (to be specified). X. Profit and Loss X. Account : Accumulated Losses not written off from the reserve or any other fund

XI. Current losses XL

Form

[See sub-rule (1) of Rule 67]

Form No. 14

[See sub-rule (1) of Rule 67]

Form of Declaration

I--------------------------------(age -----------------) s/o, D/o, W/o-------- ...................................residing at----------------having been admitted to the membership of ......................................................-...... Co-operative Society Ltd., with unlimited liability.

(1) Being desirous of borrowing loan from the said society.

(2) having borrowed loan from the said society before the date of the coming into force the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972) make this declaration as required under Section 37 of Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972).

that I (1) own 1 and specified in the Schedule.

1(2) have interest as a tenant in and I hereby create a charge on the said (1) Land in favour of the abovesaid co-operative society for the payment of loan Intrest

which the society may make and for all future advances, if any, which the has made society has made to me subject to the maximum amount of Rs..............together may make with interest on such amount of loan and advances.

Schedule

Description of land

(1) Name of village.

(2) Khasra No.

(3) Kind of land.

(4) Share in land.

(5) Extent.

(6) Remarks, if any.

In witness whereof I,--------------------------------hereunder set my hand this.............-.........day of ..............20...........--and signed and delivered by the above named in presence of witnesses.

Witness: (1) Applicant's Signatures.

(2) Borrower's

Note : (1) or (2) strike off which is not applicable.

Form

[See sub-rule (2) of rule 67]

Form No. 15

[See sub-rule (2) of rule 67]

Register of Declaration under Section 37 of the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972)

Sr. No. Date of entry in the register. Name of the Member. Date of declaration Name of Village in which land situated. 1. 2. 3. 4. 5.

Description of land

KhasraNo. Area Kind of land Share inland Extent Remarks Amount of loan supplied borrowed Remarks, if any Signatu: res of Chair-man/Officer 6(i) 6(ii) 6(iii) 6(iv) 6(v) 6(vi) 7. 8. 9.

Form

[See sub-rule (6) of Rule 86]

Form No. 16.

[See sub-rule (6) of Rule 86]

Rectification Report on the Audit/Enquiry Report.

Name and address of society......................................................... Period of audit covered---------------------------Date of audit------------------- No. and date of communication of audit report/ remarks.....-...................................... Sr. No. of objection in enquiry Report. Observation made by the Auditor Enquiry Officer. Explanation of the Society. No. and date of the resolution of Committee approving the reply. 1. 2. 3. 4.

Form

[See sub-rule (1) of Rule 88]

Form No. 17

[See sub-rule (1) of Rule 88]

Before Shri ............................................Joint/Deputy/Asstt.

Registrar Co-operative Societies, Delhi Administration, Delhi.

Arbitration Case No.---------20.

In the matter of reference of dispute under Section 60 of the Delhi Co-operative

Societies Act, 1972 (Act No. 35 of 1972)

1.

2.

3.

Versus Claimant.

1.

2.

3.

Defendants.

(Name, father's name, occupation and complete postal address of the claimant and defendants).

Claim

1. Facts showing that the matter in dispute falls within the scope of section 60(1) and is between the parties mentioned therein.

2. Facts showing that the reference is within time as provided under Section 60(4).

3. Facts constituting the cause of action.

4. Relief either simple or in the alternative which the claimant claims.

5. List of documents to be filed alongwith the claim :

(1) Copy of the resolution of the Managing Committee if the society is the claimant.

(2) Pay-in-slip for deposit of application fee with the Financing Bank. (Claim will be divided in paragraphs consecutively numbered).

Signature...............

Claimant through to-------------------

Verification from Societies

Verified at Delhi this--------day of -------- 20. that the contents of this claim are true to the best of information and knowledge (derived from the record of the society which are believed to be true and kept in the regular course of its business).

For Society--------------

For others

Verified at Delhi this -------day of------20that the contents of above claims are true to the best of my information and knowledge believed to be true.

Claimant--------------

Form

[See sub-rule (3) of Rule 88]

Form No. 18

[See sub-rule (3) of Rule 88]

Arbitration Cases Register

S. No. of the case Date of institution of the case Name(s) of claimant Name(s) of defendants Nature of claim in brief Date of Registrar's Orders. 1. 2. 3. 4. 5. 6. Brief decision of Registrar Sign, of Asstt. Registrar If admitted, date of reference to Arbitrator Name of Arbitrator Date of decision by Arbitrator 7. 8. 9. 10. 11. Date of application for issue of certificate for execution Date on which certificate under Section 71 issued Asstt. Registrar's Signature 12. 13. 14.

Form

[See sub-rule (1) of rule 10]

Form No. 19

[See sub-rule (1) of rule 10]

To,

The Registrar,

Co-operative Societies,

Delhi

Administration, Delhi.

Application under Section 70 of the Delhi Co-operative Societies Act, 1972.

Case No.-------

Claimant Society

Versus

Defaulter.

I, having been authorised by the Managing Committee of--------------------- Co-operative Society Ltd., by its resolution No. -------dated the------20----, a copy of which duly certified signed as true copy of the original is enclosed, submit as under:

(1) That the defaulter who is a member/post member/deceased member of the claimant society has to owe to it a sum of Rs.-------principal and Rs.------- interest till the date of application on account of------and that this amount is still outstanding against him in the books of the claimant society.

(2) That the claimant society has acquired a first charge on the property described in the Schedule annexed-------------herewith for repayment of the above mentioned debt/outstanding demand against the defaulter, which belonged to him/ formed part of the estate of deceased member in the head of his legal representative.

(3) That the property described in the annexed Schedule is Saleable under Section 70 of the Act.

It is prayed that an order may be made directing aforesaid defaulter to pay aforesaid amount to the claimant society with further interest at-------per cent p.a. from the date of this application till realisation and other expenses for the sale as may be assessed by the sales officer, failing which the amount claimed should be paid out of the sale proceeds of the property described in the annexed Schedule in accordance with the provisions of the Act and the rules.

Dated : through Claimant Society.

Verification

Verified that the contents of this application are true to the best of my knowledge and belief and nothing thereon has been concealed or misrepresented.

Verified at Delhi this------------day of ---------20-----

Signature.................

For Claimant Society.

Annexure

Schedule of properties subject to charge under Section 36 of the Act

SI.No. Brief description of the property Name and address of the person in whose custody, possession or control Place at which the property is lying/deposited /standing. Another information

I declare that what is stated in the above description is true to the best of my knowledge and belief and so far as I have been able to ascertain the interest of the judgment-debtor in the property herein specified.

Signature----------------

Form

[See sub-rule (3) of rule 110]

Form No. 20

[See sub-rule (3) of rule 110]

NOTICE

In the matter of sale of property of the judgment-debtor under Section 70 of the Delhi Cooperative Societies Act, 1972.

Case No.-------20-----

Claimant Society

Versus

Defaulter

Demand for the recovery of a sum of Rs.----------------------------

Whereas the claimant society has applied to the Registrar for the sale of the property described in the annexed Schedule in payment of a sum of Rs.---- as principal, Rs.-------------as interest upto the date of application, plus further interest at-------------% p. a. till realisation and the cost of these proceedings, claimed to be due by the defaulter to the Claimant Society. And whereas it is claimed that the claimant has first charge on the property of the defaulter foresaid. Now, in pursuance of the proviso to Section 70 of the Delhi Co-operative Societies Act, 1972 and the rules thereunder, notice is hereby given to you to appear before the Sales Officer on the------------day of--------20-----to show cause why the order under Section 70 of the Act should not be made. Take notice that if you admit the claim or fail to "show cause" against this demand notice on the aforementioned date and time, the amount now claimed by the claimant society should be paid within seven days of receipt of this notice by you with the Sales Officer failing which the property described in the Schedule annexed should be sold and the claim satisfied out of the sale-proceeds of the property according to rules.

Form

[See sub-rule (2) of rule 111]

Form No. 21

[See sub-rule (2) of rule 111]

Application for the issue of Certificate under proviso to clause (a) of Section 71 of the Delhi Co-operative Societies Act, 1972.

In the matter of Arbitration Case No.

Claimant Society

Versus

Defaulter

To,

The Registrar,

Co-operative Societies,

Delhi

Administration, Delhi.

Sir,

The claimants have obtained an award against the defendants jointly/severally in the sum of Rs. as principal, Rs. as interest upto and Rs. as cost totalling Rs. With future interest at-% p. a. on the principal amount till realisation.

2. The amount covered by the award is desired to be recovered as arrears of Land Revenue under clause (a) of Section 71 of the Act. A certificate under proviso to this clause may be issued to the decree-holder to enable him to apply for the execution of the award through the Collector.

Place.. (Full Name and Address)

Signature Date-.

Form

[See sub-rule (3) of Rule 111]

Form No. 22

[See sub-rule (3) of Rule 111]

In the matter of Arbitration Case No..

Decree-holder (s)

Versus

Judgment-debtor (s)

Certificate

I hereby certify pursuant to proviso to clause (a) of Section 71 of the Delhi Co-operative Societies Act, 1972 that a sum of Rs. principal plus R s..-as interest uptoand Rs. as cost totalling Rs.----------------is recoverable from the judgment-debtor above named jointly and severally as arrears of land revenue according to the law for the time being in force in the Union territory of Delhi relating to recovery of land revenue.

Given this day of20.at Delhi.

Signature

Seal

Form

[See sub-rule (4) of rule 111]

Form No. 23

[See sub-rule (4) of rule 111]

In the court of Recovery Officer, Co-operative Societies, Delhi.

Details of award

(1) Arbitration Case No.

(2) Date of award.

(3) Whether any appeal preferred against the award.

(4) Payment or adjustment already made, if any, against the decretal amount.

(5) Amount of award with other monetary reliefs granted in the award.

Principal R s. Interest up to . R s. Cost of Principal amount R s. Total R. s. Future interest at - % p.a. R s. ------------- From Till realisation.

(6) Amount certified by the Registrar to be recoverable as arrears of land revenue.

Principal R s. Interest up to . R s. Cost of Principal amount R s. Total R. s. Future interest at - % p.a. R s. -------------- From Till realisation.of principal amount

(7) Previous aplication, if any, with execution case No..and date and results thereof.

(8) Against whom to be executed.

(9) Mode of execution.

(1) Where attachment and sale of property is required Details given in the annexed Schedule.

(2) Where attachment and sale of immovable property.

Details given in the annexed Schedule.

(10) Name of the person who would assist the executing officer on behalf of the decree-holder.

We/I declare that whatever is stated above in true to our/my knowledge and belief. We/I also undertake to bear all legal expenses if in pursuance of the execution proceedings any legal proceedings are filed by any person against the Recovery Officer which have our/my authority to defend them on our/my account. We/I also undertake that if execution is made by arrest or civil imprisonment, we shall pay all the charges for subsistence and maintenance allowance for the confinement/imprisonment of the judgment-debtor.

Delhi

Signature

Date Decree-holder.

Recovery Case No..20..

(1)

(2)

(3)

Decree-holder

Versus

(1)

(2)

(3)

Judgment-debtor

In the matter of recovery of decretal amount as arrears of land revenue under clause (a) of Section 71 of the Delhi Co-operative Societies Act, 1972.

We/I hereby apply for the execution of the award details of which are given hereinafter in accordance with the law for the time being in force relating to the recovery of land revenue. We/I undertake to bear all expenses for the execution of this award as may be assessed by the Recovery Officer:

SCHEDULE

When Attachment and Sale of movable/immovable property is sought.

MOVABLE PROPERTY

Name of articles Name and address of the person in whose custody, possession or control.

IMMOVABLE PROPERTY

We/I declare that what is stated above is true to the best of our/my knowledge and belief.

Signature.

Decree-holder

Form

[See sub-rule (3) of rule 113]

Form No. 24

[See sub-rule (3) of rule 113]

(Notice to show-cause why a payment or adjustment should not be recorded).

Recovery Case No.

.. Decree-holder

.. Versus

Judgment holder

Whereas the execution of the award in the above named case, the judgment-debtor has applied to the Recovery Officer that a sum of Rs. recoverable under the award has been paid/adjusted to the decree-holder or of Court and that the same should be recorded by the Recovery Officer as having been paid by the judgment-debtor against the award being executed.

Now this notice is given to the decree-holder to appear before the Recovery Officer on..day of-..200..to show cause why the payment/adjustment aforesaid should not be recorded as claimed by the judgment-debtor.

If the decree-holder fails in this respect, an experte order is liable to be passed.

Given under the hand and the seal thisday of-.200..

Recovery Officer.

Form

[See sub-rule (1) of rule 116Z]

Form No. 25

[See sub-rule (1) of rule 116 Z]

Application of execution under clause (b) of Section 71 of the Delhi

Cooperative Societies Act, 1972 (Act 35 of 1972).

To,

The Registrar,

Co-operative Societies,

Delhi

Administration,

Delhi

.

In the matter of case No

1.

2 Decree-holder

Versus

1.

2. Judgment-debtor.

We/I hereby apply under clause (b) of Section 71 of the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972) for the execution of the decision/award/ order details of which are given hereinafter and a certified copy of which is enclosed:

(1) Arbitration Case No.

(2) Date of decision/award/order.

(3) Whether appeal preferred.

(4) Relief claimed.

(5) Against whom to be executed.

(Full name and address to be given).

(6) Mode of execution.

(i) If execution is to be made by attachment or sale of movable or immovable property of the judgment-debtor, give full details and the names of persons in whose possession and custody.

(ii)If by arrest and detention (specify the place where the judgment-debtor shall be found).

(iii)Name of the person who would assist the executing officer.

Signature

Verification and under orders

Verified at Delhi this.day of.200 that the above statements are true to the best of my knowledge and belief. I undertake to bear all expenses in execution of the decision/award/order.

Signature

Form

[See sub-rule (4) of rule 116]

Form No. 26

[See sub-rule (4) of rule 116]

In the matter of execution proceedings under clause (b) of Section 71 of the Delhi Co-operative Societies Act, 1972 (Act No 35 of 1972)

(1) Decree-holder.

Versus

(2) Judgment-debtor.

Demand Notice

Whereas the decree-holder applied to the Registrar, under clause (b) of Section 71 of the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972) for the execution of the award/order given in case No..

(Certified copy of which is enclosed).

And whereas the judgment-debtor named above is required to comply with the decision/award/order mentioned above and has not so far complied with the same.

Now, in exercise of my powers, I call upon the judgment-debtor to appear before me on...atin my office to show cause why the decision /award/order aforesaid should not be executed according to the provisions of the Code of Civil Procedure, 1908 (Act No. V of 1908) by attachment of his property/by arrest or detention of the judgment-debtor.

Given under my seal and signature this.day of.200.

Signature

Seal.

Form

[See clause (1) of rule 118]

Form No. 27

[See clause (1) of rule 118]

Before Shri.Recovery Officer, office of the Registrar,

Cooperative Societies, Delhi.

Execution Case No

Decree-holder

Versus

Judgment-debtor.

Warrant of attachment of movable property in execution of the decree. To,

The Bailiff, Whereas the judgment debtor above named was ordered by decree dated the ....................passed by ....................in Arbitration Case No..................to pay the amount in the margin and whereas the said sum of Rs..................has not been paid.

Decretal Amount Rs. P. These are to command you to attach

(i) Principal the movable property of the said

(ii) Interest judgment-debtor as set forth in

(iii) Costs. Schedule hereinto annexed or which

(iv) Cost of execution shall be pointed out to you by the

(v) Further interest decree-holder or his representative or Total agent, and unless the said

judgment-debtor shall pay to you the said sum of Rs. together with Rs. the cost of this attachment to hold the same until further orders from the Recovery Officer.

You are further commanded to return this warrant on or before the day of....200 with an endorsement certifying the day on which and the manner in which it has been executed or why it has not been executed.

Given under my hand and the seal this day of. ..200.

Seal

Recovery Officer

SCHEDULE

Description of property,

Seal

In whose custody

Recovery Officer.

Form

[See clause (IV) of Rule 118]

Form No. 28

[See clause (IV) of Rule 118]

Form of Bond with sureties for the production of the property at the place of sale in execution of decree.

Decree-holder

Versus

Judgment-debtor

Execution Case No.

Know all men by these presents, that we (1) S/o. .resident of .(Judgment-debtor)

(2)....................S/o...................................Resident of .(Surety No. 1) and (3). ..S/o. .Resident of. (Surety No. 2) are jointly and severally bound to the Recovery Officer in the above mentioned execution case in the sum Rs.....................to be paid to the said Recovery Officer or his successor in office for the time being. For which payment to be made we bind ourselves, and each of us, in the whole, we and each of our heirs, executors and administrators jointly and severally these presents.

Dated this. .day of.. 200 signed and delivered to the said Recovery Officer at Delhi. Witnesses :

(1) Signature

(Name and address)

(2) Signature

(Name and address)

(Name and address)

Judgment-debtor

(Name and address)

Sign. (2) Surety (1)

(Name and address)

Surety (2) Sign. (3)

Whereas in the above execution case the property given in the attached Schedule has been attached by the order of the Recovery Officer in the above execution case and whereas the said property has been attached and left in the charge of the judgment-debtor above named and whereas the said judgment debtor is required and undertake to produce the said property at the place, date and time of the sale when called for by the order of the Recovery Officer.

Now the condition of the obligation is such that if the above bounded judgment-debtor produces the said property in saleable and good condition on the date and place as may be specified by the order of the Recovery Officer, then this obligation shall be void, otherwise it shall remain in full price and virtue.

Signed and delivered by the above bounded tin the presence of witness this day of.200.

(1)

Sign. (1)

(2)

Sign. (2)

(3)

Sign. (3)

Form

[See clause (XI) of Rule 118]

Form No. 29.

[See clause (XI) of Rule 118]

Execution Case No..

Decree-holder

Versus

Judgment-debtor

Proclamation for sale

Notice is hereby given under clause (XI) of Rule 118 of the Delhi

Co-operative Societies Rules, 1973 that an order has been passed by the Recovery Officer for the sale of the attached property mentioned in the annexed Schedule in satisfaction of the claim of the decree-holder in Arbitration Case

No. mentioned in the margin. The sale will be by public

Auction and the property will be put to sale in lots. The sale will be of

Relief claimed the property of the judgment debtor.

In the absence of an order for postponement the sale will be held by (Bailiff) at (time) on (date) at (place) for the event of the relief claimed and specified in the margin and the cost of attachment or sale being tendered or paid before the knocking down of a lot, the sale will be stopped.

At the sale the public generally are invited to bid either personally or by duly authorised agents.

Given under my hand and seal this...........day of.................200.

Recovery Officer

Form

[See rule 119]

Form No. 30

[See rule 119]

Order to attach Salary of Public Officer or Servant of Railway or Local Authority.

Execution Case No.

Decree-holder

Versus

Judgment-debtor

To,

Where as...(Judgment-debtor) is a (Office of the Judgment-debtor) receiving his salary and allowances at your hand or on your account and whereas. ..decree-holder in the said case has applied to the Recovery Officer for the attachment of the salary and allowances of said Shri.....to the extent of R s.. (decretal amount) fue to him under the decree, you are hereby required to withold the said sum of Rs. from the salary and allowances of the said Shri. ...in monthly instalments of Rs. and to remit the said sum of monthly instalments to me.

Given under my hand and seal of the Court this. ..day of. ...200.

SCHEDULE (Rule 47) SCHEDULE I

(Rule 47)

Reservation and Destruction of Account Books and Registers

"TO BE RETAINED PERMANENTLY"

1. Cash Book.

2. General Ledger.

3. Loan Ledger.

(a) Short-term Loan

(b) Long-term loan

4. Ledger of shares or share registers.

5. Ledger for fixed deposits.

6. Ledger for saving deposit.

7. Ledger for provident deposits.

8. Ledger for investments.

9. Ledger for Provident Fund.

10. Ledger for Societies Reserve Fund.

11. Ledger for Societies Charity Fund.

12. Ledger for Audit Fee.

13. Ledger for Dividend.

14. Share Transfer Register.

15. Call Register of Shares.

16. Stock Book of forms and furniture.

17. Acquitance Roll.

18. Register for issuing cheque books.

19. Register for issuing pass books.

20. Register of specimen signatures of depositors and their nominees.

21. Register of members.

Register of Preference shareholders

Register of Ordinary Shareholders.

22. Register of Directors.

23. Minute Book.

24. Register of officers and their services.

25. Register of organisations.

26. Register of liquidated societies.

27. Register of office bearers of affiliated societies and their specimen signatures.

28. Audit Notes and audit statements.

29. Register of Pronotes.

30. Catalogue (library).

31. Register of letters received.

32. Register of letters issued.

33. Lists of record destroyed from time to time.

TO BE RETAINED FOR 6 YEARS

1. Register of disputed cases.

2. Register of Court Fees.

3. Ledger for suspense deposits.

4. Ledger for temporary deposits.

5. Registrar of Bills of Contingent Register.

6. Collection Register.

7. Register of assessment of normal credit of members.

8. Notice Book of directors' meeting.

9. Visitors' Books.

10. Officer Order Book.

11. Receipt Books (containing counterfoil).

12. Vouchers.

TO BE RETAINED FOR 3 YEARS

1. Budget estimates.

2. Returns and Statements.

3. Service Books of Office after quitting service.

4. Register of inspection of affiliated societies.

5. Register of Rectification Reports.

6. Register of Property and debt statements.

TO BE RETAINED FOR 2 YEARS

1. Casual Leave Register.

2. Attendance Register.

3. Register of payment of travelling allowance.

4. Register of noting dates of withdrawal of deposits.

SCHEDULE[Rule-58 (1)] SCHEDULE II

[Rule-58 (1)]

MODE OF ELECTION OF MEMBERS OF COMMITTEE OF IMPORTANT AND APEX CO-OPERATIVE SOCIETIES

(1) The Committee in office shall meet forty five days in advance of the date of expiration of its term and by resolution determine, the date, time and place for convening a general body meeting for the conduct of election of its successor committee.

It shall immediately send a copy of such resolution to the Registrar by registered post. The elections shall be held at a general meeting of the Society convened after giving a notice of not less than fourteen days to the members.

On the day fixed for holding the general meeting for election of members of the committee, the President or Vice-President, if they are not candidates seeking election to the committee, shall preside over the meeting. In case they are also candidates seeking elections to the committee, the general meeting shall elect a member who is not a candidate seeking election to the committee as Chairman to preside over the meeting hereinafter referred to as the "Presiding Officer."

(2) The notice of the general meeting shall be sent to the members by any of the following modes, namely :

by local delivery.

by post under certificate of posting.

by circulation among the members.

Notice of the general meeting shall also be affixed to the notice board of the society and branches of the society, if any. The notice shall contain information regarding:

the number of vacancies to be filled by election, any area of constituency that is specified in the by-laws from which the members are to be elected,

(iii) the qualifications, if any, specified in the by-laws for eligibility for membership of the committee.

(iv) the date on which, the place at which and the hours between which nomination papers shall be filed by the members, such date being not less than seven clear days before the date fixed for elections or if that day happens to be a public holiday the next succeeding day which is not a public holiday.

Explanation : The term "public holiday" means any day which is a public holiday under Section 25 of the Negotiable Instruments Act, 1881 (Central Act XXVI of 1881) or any day which has been notified by the Lt. Governor to be a public holiday for Government offices under Delhi Administration.

(v) the date and the hour when the nomination papers will be scrutinized, and

(vi) the date on which, the place at which, the hours between which the polling will take place.

(3) The Committee shall prepare a list of members as it stood on the date 45 days before the date fixed for the nomination and publish copies of the said list by affixing them upon the Notice Board at the Head Office of the Society and in its branches, if any, not less than ten days prior to the date fixed for nomination. The list shall specify the admission number and name of the member, name of the father or husband, as the case be, and the address of such member. A copy of the list shall be supplied by the Society to any member on payment of such fee as may be specified by the Committee. Where no fee has been specified, the Secretary or any other person authorised by the by-laws, shall supply such list on payment of an amount of [Rupees Ten only per member and part there of : ]

[Provided that defaulters list shall be prepared forty-five days before the date of the election and displayed at the notice board of the society and a copy shall be sent to the Registrar in duplicate, one for record and the other for display on the notice board in the office of the Registrar.]

(4) The nomination of a candidate for election shall be made in Forms E-I or E-II which on application, shall be supplied by the committee to any member free of cost. (Forms E-I and E-II annexed).

The proposer and seconder member shall not be a defaulter. The candidate shall make a security deposit of Rs. 1000/- for the post of President/Vice. President and for the other seats of the committee, and in case a candidate gets less than 1/6th of the votes polled, the security deposit shall be forfeited (and such candidate shall be disqualified for contesting the election in that society for a period of three years.) No member shall be eligible to contest election on two seats simultaneously. The committee may appoint an election officer to conduct the election of the society.

Every nomination paper shall be presented in person or sent by registered post acknowledgement due, by the candidate himself or by his proposer or seconder to the Secretary of the Society or if there is no Secretary, to any other officer duly authorised in this behalf by the committee so as to reach him before the date and hour specified in item (iv) of the notice referred to in clause (2). The person who receives the nomination paper shall enter on the nomination paper its serial number and certify the date and hour at which the nomination is received by him and shall immediately give a written acknowledgement for the receipt of the nomination paper which is delivered which shall bear the seal of the society. Any nomination paper which is not delivered or received on or before the date and time fixed for its receipt shall be rejected.

(5) No member shall be nominated as a candidate for elections to fill a seat on the committee if he:

is ineligible to vote, does not possess the necessary qualifications specified in the by-laws of the society for election as a member of the committee; or

(iii) is disqualified to be a member of a committee under the provision of the Act or under these rules.

(6) (i) On the day following the date fixed for the receipt of nomination papers, the committee shall meet and take up the scrutiny of the nomination papers at a meeting notwithstanding that the quorum specified in the by-laws for a meeting is not present. No member of the committee whose name has been proposed for election shall participate in such a meeting in his capacity as member of the committee when his nomination paper is scrutinised, so, however, that the proposer and the seconder of any such member may be present at the time of the scrutiny of his nomination paper.

(ii) The committee shall examine the nomination papers and shall decide objections which may be made by any person in respect of any nomination and may, either on such objection, or on its own motion and after such summary inquiry, if any, as the committee thinks necessary reject any nomination :

Provided that the nomination of a candidate shall not be rejected merely on the grounds of an incorrect description of his name or the name of his proposer or seconder, or any other particulars relating to the candidate or his proposer or seconder, as entered in the list of members referred to in clause (3), if the identity of the candidate, proposer or seconder, as the case may be, is established beyond reasonable doubt.

(iii) The committee shall give all reasonable facilities to the contesting candidates or their proposers or seconders, as the case may be, to examine all the nomination papers and to satisfy themselves that the inclusion of the name of the contesting candidate is valid, (iv) The committee shall endorse on each nomination paper its decision accepting or rejecting the same, as the case may be, and if the nomination paper is rejected, it shall record in writing a brief statement of its reason for such rejection.

(v) The committee shall not allow any adjournment of the proceedings except when such proceedings are interrupted or obstructed by riot or affray or by causes beyond its control.

(7) The lost of valid nominations as decided by the committee, names in the English alphabetical order and addresses of the candidates as given in the nomination papers, on the same day on which the scrutiny of the nomination papers, is completed.

(8) Any candidate may withdraw his candidature by notice in writing signed by him and delivered in person or through the proposer or seconder, at any time after the presentation of his nomination paper but before 5.00 p.m. on the day following the day on which the valid nominations are published under clause (7) of the Secretary of the Society or any other officer authorised under clause (4). A notice of withdrawal of candidature once given shall be irrevocable.

(9) If for any area of constituency for which election is to be held, the number of candidates whose nomination papers have been declared valid does not exceed the number of candidates to be elected for that area or constituency, the presiding officer shall, on the day fixed for holding the general meeting, announce the names of all such candidates whose nominations are valid in the general meeting and declare them to have been duly elected to the committee. If the number of candidates whose nominations are valid exceeds the number to be elected for any area or constituency. The committee shall arrange for conducting a poll on the date fixed for purpose. The committee may appoint one or more polling officers as may be necessary for conducting the poll. [Ballot paper to be used shall be as prescribed in Form 1 of this Schedule].

(10) The committee shall provide the presiding officer with ballot boxes, ballot papers, copy of the list of members referred to in clause (3) and such other articles as may be necessary for the conduct of elections. The ballot box shall be so constructed that ballot-papers can be inserted therein but cannot be taken out therefrom without the box being unlocked.

(11) A candidate contesting the election may, by a letter to the Presiding Officer, appoint an agent to represent him both where polling is held to identify the voters and to watch the recording of votes. Such letter shall contain the consent in writing of the agent concerned.

(12) Canvassing of votes by any person at the place where elections are to be conducted shall be prohibited.

(13) Immediately before the commencement of the poll, the Presiding Officer shall show the empty ballot box to such persons as may be present at the time and shall then lock it up and affix his seal. The candidate or his agent may also affix his own seal, if he so desires.

(14) Every member who desires to exercise his right to vote shall be supplied with a ballot paper containing the names of contesting candidates arranged in the English alphabetical order, either printedi, type-written or cyclostyled, according to convenience, on the ballot paper. The ballot paper shall also bear the seal of the society and also the initials of the Presiding Officer, and further contain a column, for the voter to inscribe a mark (X) against the names of persons to whom he wants to vote.

(15) Each polling station and where there is more than one polling booth at a station, each such booth shall contain a separate compartment in which the members can record their votes in secrecy.

(16) No ballot paper shall be issued to a member unless the polling officer is satisfied that the member concerned is the same person as noted in the list furnished to him. On receipt of such ballot paper, the member shall proceed to the polling compartment set apart for the purpose and indicate the person or persons in whose favour he exercises his vote by inscribing a mark(x) against the name of the candidate or candidates, as the case may be, and put the ballot paper in the ballot-box kept for the purpose with utmost secrecy. If owing to blindness or other physical infirmity or illiteracy, a member is unable to inscribe the mark on the ballot paper, the polling officer and where no such polling officer is appointed, the presiding officer shall ascertain from him the candidate or candidates in whose favour he desires to vote, inscribe the mark (X) on his behalf and put the ballot paper in the ballot box.

(17) If at any stage of the polling, the proceedings are interrupted or obstructed by any riot or affray or if at such elections, it is not possible to take the poll for any sufficient cause, the presiding officer shall have power to stop the polling recording his reasons for such an action in the minute book of the society.

(18) No voter shall be admitted after the hours fixed for the poll but a voter, who enters the premises where ballot papers are being issued before the close of the polling hours shall be issued the ballot paper and allowed to vote.

(19) The counting of votes shall take place immediately after close of the poll. If this is not possible, the ballot box shall be sealed with the seal of the presiding officer, and the contesting candidates or their agents, if they so desire, and deposited with the society for safe custody. The presiding officer shall then announce and also intimate in writing to the candidates or their agents the time and place at which the counting shall commence the next day. Votes shall be counted by or under the supervision of the presiding officer. Each candidate and his authorised agent shall have a right to be present at the time of counting. But the absence of any candidate or his agent at the time of counting shall not vitiate counting or announcement of results by the presiding officer. The number of votes secured by each candidate and the result of the elections shall be announced by the presiding officer as soon as counting is over.

The result of elections shall also be recorded in the minute book of the society and attested by the presiding officer and shall also be notified immediately on the notice board of the society. [In case of equalty of votes, the election officer/presiding officer shall declare the election result by tossing of coin].

(20) A ballot paper shall be rejected by the presiding officer if (i) it bears any mark by which the member who voted can be identified, or (ii) it does not bear the seal of the society or the initials of the presiding officer, or

(iii) the mark indicating the vote thereon is placed in such a manner as to make it doubtful to which candidate the vote has been cast.

(21) The Registrar may in respect of any society, either on his own motion or on an application from such society appoint any person as election officer to conduct the elections, if in his opinion such a course is necessary for the proper conduct of the election. Where an Election Officer is so appointed, all references to the Secretary, Presiding Officer, or the committee, as the case may be, occurring in this Schedule shall be construed as references to the Election Officer.

(22) Where an election officer is appointed to conduct the elections, the result of the elections recorded by the Presiding Officer in the minutes book under clause (19) shall also be attested by the Election Officer.

(23) After result of election has been announced, the result of the election and a report thereon shall be communicated to the Registrar.

Form 1 to Schedule II

(See paragraph 9).

Ballot paper for election of a Co-operative Society whose Elections are to be conducted under Schedule II Appended to Rule 58 of Delhi Co-operative Societies Rules, 1973.

The. Cooperative Society/Federation/Bank Ltd.

(Address) (Counterfoil)

Ballot paper for the Post of

Date of Election....

S l. No. Membership No..

S l. No... Ballot Paper

Please Mark 'X' against one of the candidates.

S l. No. Name of the Candidate Membership No. Mark for casting vote.

MODE OF ELECTION OF MEMBER OF COMMITTEE OF ALL SOCIETIES OTHER THAN REFERRED TO IN RULE 58(1)

(1) The election shall be held at a general meeting of the Society convened for the purpose of which notice not less than fourteen clear days shall be given to the members. The notice of the general meeting shall be sent to the members by any of the modes specified in the rules and shall contain information regarding:

(i) the number of vacancies to be filled by election, (ii) the area of the constituency, if any, from which members of the committee are to be elected, and

(iii) the date on which, the place and the hours at which elections will take place.

(2) Notwithstanding anything in these rules, the President or the Vice-President, if they are not candidates seeking election to the committee, shall preside over the meeting. In case they are seeking election to the committee, the general body shall elect a member who is not a candidate seeking election to the committee as chairman of the meeting for the conduct of the elections.

(3) The nominations of the candidates for election shall be made at the meeting. The chairman shall decide the objections, if any, which may be made at the time of any nomination after making such summary inquiry as he thinks necessary and announce the names of the valid nominations.

(4) If for any area or constituency for which election is to be held, the number of candidates in respect of whom valid nominations have been announced does not exceed the number of candidates to be elected for that area or constituency, the candidates for whom valid nominations have been announced shall be deemed to have been elected for that area or constituency, as the case may be, and the chairman of the meeting shall make a declaration to that effect. If the number of candidates in respect of whom valid nominations have been announced for any area or constituency exceeds the number of candidates to be elected, a poll shall be taken and the chairman shall then read out the names of the contesting candidates. He shall thereafter record the number of votes polled, for and against each such candidate, ascertained either by show of hands or by ballot, as the case may be, and record the same in the minutes book of the society. The Chairman shall announce the number of votes polled by each candidate and the result of the elections which shall also be recorded in the minutes book of the society and attested by him.

(5) Where poll is demanded by the members of the general body, a formal resolution to this effect will be put to vote and adopted.

(6) The meeting shall adjourn for a brief period to enable the chairman to make arrangements of the poll.

(7) After the counting, the general body shall again assemble where the results of the poll shall be announced as in clause 4.

Form

Form E-I

(Under Schedule II, Clause (4) under Rule 58(1) of the Delhi Co-operative

Societies Rules, 1973)

(For Federal Co-operative Societies only)

To,

The Secretary/Election Officer,

..Co-operative Federation Ltd.,

Delhi

, New Delhi.

Dear Sir,

I, a member of...Co-operative Society

Ltd. being a member of your Federation do hereby propose the name of Shri.........................who is a representative of. Cooperative Society Ltd., which is a member of your Federation, for the post of President/Vice-President/Committee Member (Director) of the Managing Committee (Board of Directors) of your-Federation for the election to be held on.

I am an authorised representative of...Co-operative Society Ltd., vide resolution No..dated.(copy enclosed).

Yours faithfully,

Name and Signature..

of the Proposer: ......

Representative of.. ..........

Co-operative Society Ltd.. ......

I, .....S/o Shri..... .. and member of...........................................Co-operative Society Ltd., which is a member of the abovenoted Federation, do hereby second the above proposal.

A copy of the Resolution No............dated............giving me authority to represent .... ......Co-operative Society Ltd., is enclosed.

Name and Signature of the.....

Seconder..

A representative of ..... ..

Co-operative Society Ltd.... ..

DECLARATION BY THE CANDIDATE

I, ...S/o Shri ......... .. Membership No. .....of. ...Co-operative Society Ltd. hereby agree to my nomination for the election as President/Vice-President/Committee Member (Director) of.... ..Cooperative Federation Ltd. I am an authorised representative of ....Co-operative Society Ltd., vide resolution no. ..... ..dated. .......(copy enclosed). I further declare that :

1. I am not an employee of the said Federation.

2. My age on . is.. ....years.......months. ...days.

3. I am eligible to vote.

4. I have not incurred any of the disqualifications for election of the Managing Committee/Board of Directors of the said Federation under the provisions of the Delhi Co-operative Societies, Act, 1972 and the Delhi Co-operative Societies Rules, 1973 and the By-laws of the Society.

5. I possess the necessary qualifications specified in the By-laws of the Federation for election as President/Vice-President/Member of the Managing Committee (Director).

Name and Signature.... ..

of the candidate........ .........

A representative of... ..........

Co-operative Society Ltd... ...............

(FOR OFFICE USE ONLY)

Received this nomination form at.a.m./p.m. on...along with copies of their resolutions mentioned therein.

Signature of the receiving officer

SEAL

ACKNOWLEDGEMENT

Received the nomination form of Shri.... ....presented by Shri. ....candidate/proposer/seconder for election to the Managing Committee/Board of Directors of...... ....Federation Ltd. at.a.m./p.m. on...alongwith copies of the resolutions.

Signature of the . ..

Receiving Officer.. ..

SEAL

Form

Form E-II

(Under Schedule Ii, Clause (4) under Rule 58(1) of the Delhi Co-operative

Societies Rules, 1973)

(FOR PRIMARY CO-OPERATIVE SOCIETIES)

To,

The Secretary/Election Officer,

.....Co-operative Society Ltd.,

Delhi/New Delhi.

Dear Sir,

I, ..S/o of Shri ... member of ... ........Co-operative Society Ltd., with membership No..hereby propose the name of Shri... ...S/o Shri. ....and a member of the Society Membership No..........,as a candidate for the post of President/Vice-President/Member of the Managing Committee of the said Society for the election to be held on..............

Name and Signature. ..

of the Proposer....... ..

Membership No.... .......

I, . ............. S/o Shri... Membership

No..................of Co-operative Society Ltd. hereby second the above proposal.

Name and Signature............................ of the Seconder.................................... Membership No...................................

DECLARATION BY THE CANDIDATE

I,...................................s/o Shri...............................Membership No.....hereby agree to my nomination for.....................election as President/Vice-President/Member of the Managing Committee of the. ...Co-operative Society Ltd.

I further declare that :

1. I am not an employee of the said society.

2. My age on....is....years. ......months.

3. I am eligible to vote.

4. I do not incur any of the disqualifications for election of the Managing Committee of the said society under the provisions of the Delhi Cooperative Societies Act and Rules, 1973 and registered By-laws of the Society.

5. I possess the necessary qualifications specified in the By-laws of the society for election as President/Vice-President/Member of the Committee.

Name and Signature. ..

of the candidate... .....

Membership No. ...........

(FOR OFFICE USE ONLY)

Received this nomination form at.. ....a.m./p.m. on.. ...

Signature of the. ..

Receiving Officer.. ..

SEAL

ACKNOWLEDGEMENT

Received the nomination form of Shri. ....presented by

Shri. .....candidate/proposer/seconder for election

at... .........a.m./p.m. on . ..

Signature of the. ..

Receiving Officer..

SEAL

SCHEDULE

SCHEDULE IV

Regulations regarding the Recovery and Deposits of Fees of Various for the services to be rendered by the Registrar to the Co-operative Societies and their members

1. Short title and application.

(1) These regulations may be called the Fees Recovery and Deposit Regulations, 1973.

(2) These regulations shall apply to all the Co-operative Societies registered or deemed to be registered under the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972) and the members, past members, heirs, legal representatives, nominees of the deceased members, agents and servants of the Co-operative Society, and the staff paid out of this fund defined under Regulation No. 3.

2. Definition.

Words and expressions defined in the Act and the Rules used in these Regulations shall have the meaning assigned to them in the Act.

3. Creation of "Settlement and Execution Expenses Fund.".

The Registrar shall create a Fund entitled "Settlement and Execution Expenses Fund" (hereinafter called the Fund) which shall be administered and operated by him. All fees realisable under the rules on reference of disputes to the Registrar under Section 60 and proceedings under Sections 70 and 71 shall be paid into this fund and all expenditure on the pay and allowances of bailiffs, process servers and other staff required to man the execution agency and payment of fees to arbitrators and other contingent expenditure relating to reference of disputes under Section 60 and proceedings under Sections 70 and 71 shall be defrayed out of this Fund.

4. Staff paid out of the Fund.

(1) The Registrar may appoint any number of bailiffs and other categories of staff required to maintain an efficient agency for recovery of dues of co-operative societies and its members, past members, their agents and servants. Registrar will be competent of prescribe their qualifications, conditions of service, the target to recovery to be achieved by them and the scale of their salary and allowances. Registrar shall be the appointing and disciplinary authority for such staff. The powers of disciplinary authority may, however, be delegated by him to any officer subordinate to him. When the disciplinary authority is not the Registrar himself, all appeals against the orders of the disciplinary authority shall lie to him and his decision in appeal shall be final. When the disciplinary authority is the Registrar himself, the appeal shall lie to another officer to be appointed by the Lt. Governor.

(2) The service of staff paid out of the Fund and under the Registrar shall not be Government service. However, any person appointed and paid out of this fund shall be deemed to be a public servant within the meaning of Section 21 of the Indian Penal Code.

(3) Any person appointed and paid out of this Fund shall have to enter into an agreement on non-judicial stamp payable by him in Annexure 'A' which shall be his contract of service.

5. Operation of Fund.

(1) The Fund shall be kept in the State Bank of India. All payments from this Fund shall be made by cheques which may be signed by any officer who may' be authorised by the Registrar.

(2) Payment into the Fund can be made by anybody who desires to make the payment. The said bank shall accept the deposits from any person and credit the same to this Fund.

(3) The bank shall supply to the Registrar or any officer authorised by him the monthly details of all deposits into and payments from this Fund and the balance standing at the end of each month.

6. Maintenance of other Accounts by the Bank

The State Bank of India shall maintain any other account as may be directed by the Registrar in connection with securing the purposes of the Act and the Rules. These accounts shall be operated by the Registrar or any other officer authorised by him.

7. Creation of Audit Fee Fund.

(1) The Registrar shall create fund called the "Audit Fee Fund" which shall be administered by the Asstt. Registrar (Audit) and maintained with Delhi State Co-operative Bank Ltd.

(2) All the co-operative societies shall deposit Audit Fee in this fund as may be assessed against them from time to time.

(3) The bank shall submit the statement every month to the Asstt. Registrar (Audit) in the following form so as to reach him by 5th of every month following the month to which the statement relates :

Date of Deposit, name of the Society and Amount Deposited.

(4) On receipt of the above statement, the Asst. Registrar (Audit) shall record the payments in relevant account of the Society and draw a cheque for the amount representing the total of all the amounts shown in the above monthly statement in favour of the Registrar, Co-op. Societies and sent it to the Cashier of his office for deposit into Government Account.

(5) [On receipt of the above statement, the Registrar shall record the payment in relevant account of the society.

(6) The amount payable to the auditor on the basis of terms and conditions fixed by the Registrar under Rule 84(1) shall be paid to them from the fund by a crossed cheque drawn by him or by any other officer authorised by him on receipt of their audit report and accepted by the Registrar. The amount payable to the Departmental auditors shall be deposited with the cashier of the Registrar Office for deposit in the Government Account. The amount payable to other auditors shall be paid to them directly by a crossed cheque.]

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\ Form 'A' Summon in arbitration proceedings to the defendant to answer claim.

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\ Form 'B' Summon to legal representative to be added when defendant dies during pendency of arbitration proceedings.

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\ Form'C' Summon for attendance/production of record in any enquiry/inspection / arbitration /liquidation.

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\ Form 'D' Proclamation requiring attendance/production of records.

Form 'E' Warrant of attachment of property.

Warrant of arrest.

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Form 'H' Order of release from Civil Imprisonment.

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Summons for Disposal of Claim under section 60 of the Delhi Co-operative

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To,

Whereas a dispute under Section 60 of the Delhi Co-operative Societies

Act, 1972 (Act No. 35 of 1972) has been referred against you for......................... a copy of which is enclosed, you are hereby summoned to appear before me (Designation of the Officer) in room No............on.........(date) at................(time) to answer all material questions relating to the dispute.

You may be accompanied by a person able to answer all such questions. As the date fixed for your appearance is appointed for the final disposal of the suit you must be prepared to produce on that day all the witnesses upon whose evidence and all the documents upon which you intend to rely in support of your defence.

Take notice that, in default of your appearance on the day before mentioned the matter will be heard and determined in your absence.

Given under my hand and seal this.................day of...........200.

Signature

(Seal of Office)

Form 'B'

Summon to Legal Representative of a Deceased Defendant Arbitration Case No.

Claimant Versus Defendant

To,

Whereas the claimant referred a dispute for decision under Section 60 of the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972) against the defendant and whereas the claimant has referred to me that while the dispute is pending, the defendant has since deceased and made an application alleging that you are the legal representative of the said..................deceased, and desiring that you be made the defendant in his stead.

You are hereby summoned to attend the proceedings pending before me on......................(date), at..........(time), at ...........................(place) to defend the said proceedings and in default of your appearance, the said dispute will be heard and determined in your absence.

Given under my hand and seal this............day of.............200.

Signature

(Seal of Office)

Form 'C

Summons to Witness

In the matter of enquiry under section 55/Inspection under Sections 54, 56 Arbitration proceedings under Section 60/Liquidation proceedings under Section 63 of the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972) in (names of the societies/names of parties).

To,

Whereas your attendance is required in the Enquiry/ Inspection/ Liquidation/Arbitration proceedings pending before me.

Now in exercise of my powers under Section 94 of the Delhi Co-operative Societies Act, 1972 (Act No. 35 of 1972), you are hereby required personally to appear before me on the (date), at ......................(time), at.................(place) and to bring with you the record and documents mentioned in the annexed list. If you fail to comply with this order without lawful excuse, you will be subject to consequences of non-attendance laid down in Section 32 and rule 12 of Order XVI of the Code of Civil Procedure, 1908.

Given under my hand and seal this............day of.............200.

Signature

(Seal of Office)

Form 'D'

Proclamation Requiring Attendance

Whereas an Enquiry under Section 55/Inspection under Sections 54, 56/Arbitration under Section 60/Liquidation under Section 63 of the Delhi Cooperative Societies Act, 1972 (Act No. 35 of 1972) is pending.

And whereas it has been made to appear before me that the summons issued to Shri.............................to appear before me and to produce documents could not be served upon him in the manner prescribed by law, and whereas it appears that the evidence and record/documents required of him are material and he absconds and keeps out of way for purposes of evading the service of the summons, this proclamation is issued requiring the attendance and production of record before me on.............(date), ..............at...............(time), at.................... (place)..................and from day to day until he shall have to depart and if the aforesaid person fails to attend or attends but fails to produce the required record on the date and hour aforesaid, he will be dealt with according to law.

Given under my hand and seal this............day of.............200.

Signature

(Seal of Office)

Form 'E'

Warrant of Attachment of Witness (Order 16, Rule 10, Code of Civil Procedure, 1908)

In the matter of

To,

The Bailiff...................

Whereas Shri......................has not, after the expiration of the period limited in the proclamation issued for his attendance/production of record, appeared/produced record before me, you are hereby directed to hold under attachment the property belonging to the said Shri.....................to the value Qli...........................and k> submit a return accompanied with an inventory thereof within.............day.

Given under my hand and seal this............day of.............200.

Signature

(Seal of Office)

Form 'F'

Warrant of Committal.

(Under Order 16, Rule 10 of Code of Civil Procedure, 1908)

In the matter of Enquiry under Section 55 / Inspection under Section 54, 56/Arbitration under Section 60 /Liquidation under Section 63 of the Delhi Co- operative Societies Act, 1972 (Act No. 35 of 1972).

Whereas Shri.......................has been duly served with a summons but failed to attend or attended but failed to produce the record/absconds and keeps out of the way for purpose of avoiding service of the summons.

You are hereby ordered to arrest and bring the said Shri.................... before me.

You are further ordered to return this warrant on or before the..................... day of............200 with an endorsement certifying the day on and the manner in which it has been executed or the reasons why it has not been executed.

Given under my hand and seal this............day of.............200.

Signature

(Seal of Office)

Form 'G'

Warrant of Committal

(Under Order 16 of Code of Civil Procedure, 1908

In the matter of/Enquiry under Section 55/Inspection under Section 54, 56/Arbitration undef Section 69/Liquidation under Section 63 of the Delhi Co- operative Societies Act, 1972 (Act No. 35 of 1972).

To,

The Officer-in-charge of Jail at.............................

Whereas Shri................................................... who attendance for evidence/production of record which is material in the proceedings pending before me, has been arrested and brought before me in custody and whereas said Shri-----------------------------------failed to produce documents and his evidence cannot be taken; and whereas said Shri.................................has been called upon to give security to my satisfaction for his appearance/production of record/documents on.........................day of.....................200 which he has failed to do.

This is to require you to receive the said Shri.............................into your custody in Civil Prison until further orders from me.

Given under my hand and seal this............day of.............200.

Signature

(Seal of Office)

Form 'H'

Release Order under Section 69(3) of the Punjab Land Revenue Act, 1887 as applicable to Delhi

In the Court of Shri......................................

Distt.

Case No........... Year ...........20.....................

The Superintendent of Jail,

Name of judgment-debtor...................................................... son of Shri.................................................. Caste ............................. Village/Tehsil...................................

Whereas the abovenamed who was sent to the civil imprisonment for nonpayment of dues by this Court on.................has made the payment or has given surety and has asked for exemption from payment for..............days, as such he may not be kept under your custody now.

Therefore, you are hereby ordered to release the said person on receipt of this order.

Given under my hand and seal this Court............day of.............200.

Signature

Collector Grade I/II

(Seal of Office)

SCHEDULE Rule 68(2)

DELHI

CO-OPERATIVE SOCIETIES RULES, 1982

SCHEDULE VI

Rule 68(2)

The following shall be criteria for determining classification of societies which shall be made after each audit by the Auditor.

THRIFT AND CREDIT CO-OPERATIVE SOCIETIES

'A' Class :

1. Defaulters are not more than 10% including the cases of renewal of loans.

2. Contribution to Compulsory Deposit is regular to the extent of 90% of the total number of members.

3. Repayments of loans to lending Institutions are regular.

4. General Body Meeting is held in accordance with section 29.

5. Profits are distributed in accordance with Section 46 and rule 79.

6. All statutory registers are maintained properly.

'B' Class:

1. Defaulters are not more than 25% including renewal of loans.

2. Contribution to Compulsory Deposit is regular to the extent of 75% of the total number of members.

3. Repayments of loans to lending Institutions are regular.

4. General Body Meeting is held in accordance with section 29.

5. Profits are distributed in accordance with Section 46 and rule 79.

6. All statutory registers are maintained properly.

'C' Class:

1. Defaulters are not more than 40% including renewal of loans.

2. Contribution to Compulsory Deposits is regular to the extent of 75% of the total number of members.

3. General Body Meeting is held in accordance with Section 29.

'D' Class:

1. All other societies.

INDUSTRIAL CO-OPERATIVE SOCIETIES

'A' Class:

1. 80% of the members are actual workers.

2. 70% of the members are engaged in the business of the society.

3. The Government and Bank loans are utilised properly and repayment is regular.

4. Contribution of the Compulsory Deposit is regular upto 90% if provided in the By-laws.

5. All purchases of raw material are made under the guidance and supervision of the Managing Committee and production is carried out on economic basis resulting in net profit.

6. All statutory registers are maintained properly.

7. General Body Meeting is held in accordance with Section 29.

'B' Class:

1. 80% of the members are actual workers.

2. 50% of the members are engaged in the business of the Society.

3. The Government and Bank loans are utilised properly and overdue amount is not more than 25% of the loan.

4. All statutory registers are maintained properly.

5. General Body Meeting is held in accordance with Section 29.

Class:

1. 80% of the members are actual workers.

2. 40% of the members are engaged in the business of the society.

3. General Body Meeting is held in accordance with Section 29.

'D' Class:

1. All other societies.

TRANSPORT CO-OPERATIVE SOCIETIES

'A' Class:

1. 80% of the members are actual workers.

2. Outside liabilities are repaid regularly.

3. All the workers employed are members of the society..

4. Running in profit after providing sufficient depreciation on vehicles.

5. General Body Meeting is held in accordance with Section 29.

6. Profits are distributed in accordance with Section 46 and rule 79.

7. All statutory registers are maintained properly.

'W Class:

1. 70% of members are actual workers.

2. All the workers employed are members of the society.

3. Outside liabilities are not overdue more then 10% of the total.

4. Running in profit after providing sufficient depreciation on vehicles.

5. General Body Meeting is held in accordance with Section 29.

6. Profits are distributed in accordance with Section 46 and rule 79.

7. All statutory Registers are maintained properly.

Class:

1. 40% of the members are actual workers.

2. 80% of the workers employed are members.

3. Outside liabilities are not overdue exceeding 30% of the total.

4. General Body meeting is held in accordance with Section 29.

'D' Class:

1. All other societies.

MARKETING CO-OPERATIVE SOCIETIES

/A/ Class:

1. It covers at least 75% of the Agricultural Credit and Multi-purpose Societies in its area of operation.

2. In case of individual members, it should not exceed more than 10% of the total membership.

3. Credit facilities are adequate to meet the requirement and credit is linked properly with the marketing for which sufficient godown arrangements are available.

4. Seeds and agricultural implements are supplied by the Society.

5. Daily market rates are collected and members informed.

6. Outside borrowings are repaid regularly.

7. Running in profits and the same are allocated in accordance with Section 46 and rule 79.

8. General Body Meeting is held in accordance with Section 29.

9. All statutory registers are maintained properly.

'B' Class:

1. It covers at least 50% of the Agricultural Credit and Multi-purpose Societies in its area of operation.

2. All other conditions as for 'A' Class given above are fulfilled.

'C' Class:

1. It covers at least 25% of Agricultural Credit and Multi-purpose Societies in its area of operation.

2. The credit is linked with marketing.

3. General Body Meeting is held in accordance with Section 29.

4. Profits are distributed in accordance with Section 46 and Rule 79.

'D' Class:

1. All other societies.

CONSUMERS' CO-OPERATIVE SOCIETIES

'A' Class :

1. The sales are more than five times of the Working Capital of the Society.

2. The stock register is kept up-to-date and physical verification of stock is done half-yearly.

3. Repayments of dues to Co-operative Bank or Wholesale Store or any other Institution are regular.

4. Sales are made on cash basis and credit sales do not exceed more than 10% of the total sales and recoveries for such credit sales are regular.

5. Expenses of the store are not more than 3.5% of the total sales.

6. General Body Meeting is held in accordance with Section 29.

7. Running in profit and profit is allocated in accordance with Section 46 and rule 79.

8. All statutory Registers are maintained properly.

'B' Class;

1. Sales are more than three times of the Working Capital of the Society.

2. The stock register is kept up-to-date and physical stock taking is done at the close of the year.

3. Repayments of dues to Co-operative Bank or Wholesale Store or any other Institution are regular and overdue is not more than 25% of the total.

4. Sales are made on cash basis and credit sales to not exceed more than 20% of the total sales and recoveries for such credit sales are regular.

5. Expenses of the stores are not more than 40% of the total sales.

6. General Body Meeting is held in accordance with Section 29.

7. Running in profit and profit is allocated in accordance with Section 46 and rule 79.

8. All statutory Registers are maintained properly.

'C Class:

1. The stock register is kept up-to-date.

2. Repayment of dues to Co-operative Bank or Wholesale Store or any other Institution are regular, overdues are not more than 50%.

3. General Body Meeting is held in accordance with Section 29.

'D' Class;

1. All other consumers' societies.

HOUSING CO-OPERATIVE SOCIETIES

'A' Class:

1. All the members have filed the prescribed affidavits.

2. Land money and development/construction charges are deposited by all the members regularly.

3. No dispute for allotment of land or any other matter.

4. General Body Meeting is held in accordance with Section 29.

5. All statutory registers are maintained properly.

'B' Class:

1. All the members have filed the requisite affidavit.

2. Land money has been deposited by 90% of the members.

SCHEDULE[See Clause (d) of sub-rule (1) of rule 6] [SCHEDULE VII]

[See Clause (d) of sub-rule (1) of rule 6] VIABILITY NORMS

s. no.

Class/Type of the Society

Membership Nos.

Share Capital (R s.)

Area of Operation

Remarks

1.

Urban Bank

3000

60,00,000.00

N.CT.D

Subject to the norms prescribed by the RBI from time to time

2.

Urban Credit (a) Salary earner

50

25,000.00

Officer/Establishment

(b) Urban Credit (General)

200

1,00,000.00

N.C.T.D

3.

Consumers Store

100

1,00,000.00

District

4.

Industrial (P) Coop

15

1,00,000.00

District

Handloom Coop

15

25,000,00

N.C.T.D.

Industrial Leather Coop

15

25,000.00

District

Industrial

Women Coop.

15

25,000.00

District

Industrial

Other weaker sections

15

25,000.00

District

5.

Industrial Service

15

50,000.00

District

6.

Group Housing/Housing

60

60,000.00

N.C.T.D.

7.

Agricultural Service/Credit

100

25,000.00

Rural villages

8.

Dairy poultry, Piggery, etc.

15

25,000.00

Rural Villages

9.

Transport

15

1,50,000.00

N.CT.D.

10.

Labour

15

50,000.00

N.C.T.D.

In exercise of the powers conferred by section 96 of the Delhi Co-operative Societies Act, 1972 the Lt. Governor is pleased to make the following rules, namely:

(i) These rules may be called the Delhi Rules Primary -Co-operative Societies Service Rules, 1979.

(ii) They shall come into force at once.

In these rules, unless the context otherwise requires,

(i) "Bank" means the Delhi State Co-operative Bank Ltd.

(ii) "Cadre" means a group of posts of Secretaries/managers of primary agricultural credit societies.

(iii) "Cadre Committee" means a committee constitued by the Lieutenant Governor for controlling the cadre under rule 3.

(iv) "Cadre Officer" means a member of the service appointed by Cadre Committee.

22. Substituted vide Notification No. F.34(32)/80-PandS-Coop/566, dated 26.4.1982. [(v)

(i) "Direct Recruitment" means recruitment made through a competitive examination held by the Cadre Committee.

(ii) "Transfer on Deputation" means taking services of the officials of equivalent status on deputation from the Bank or Delhi Administration for a fixed period and on such terms and conditions as the Cadre Committee may decide from time to time.]

(vi) "Cadre Fund" means a fund created for the administration of cadre and maintained with the Delhi State Co-operative Bank Ltd., consisting of :

[(a) contribution by the Primary Co-operative Societies at the rate of 1 percent of the loan borrowed by the Society from the Bank during the year.]

(b) contribution by the Delhi State Co-operative Bank Ltd., at the rate of 0.50 percent of the loan distributed to the Primary Cooperative Society of Rural Delhi or Rs. 1 lakh, whichever is more.

(c) grants and subsidies from the Government.

(d) the deficit, if any, worked out after Government grant shall be shared equally by the Delhi State Co-operative Bank and the Primary Co-operative Societies.

(vii) "Lieutenant Governor" means the Lieutenant Governor of the Union territory of Delhi.

The Cadre Committee shall consist of :

(a) Registrar of Co-operative Societies, Delhi Administration Chairman;

(b) Chairman/Administrator of the Bank-Member;

(c) Two representatives of the Rural Primary Co-operative Societies nominated by the Registrar of Co-operative Societies, Delhi Administration Members;

(d) General Manager of the Bank Member Secretary.

(a) The Member Secretary of the Cadre Controlling Committee shall be appointing authority of the Cadre Officer.

(b) The Strength of the cadre shall be determined by the Cadre Committee from time to time. The posts may be created for such period as may be deemed expedient.

(1) The relative seniority of all direct recruits shall be determined in order of merit in which they are selected for such appointment on the recommendations of the Cadre Committee; persons appointed as a result of earlier selection will be placed senior to those appointed as a result of subsequent selection.

(2) Where persons recruited initially on a temporary basis are confirmed subsequently in an order different from the order of merit indicated at the time of their appointment, seniority shall follow the order of confirmation and not the original order of merit.

(3) After their confirmation in accordance with the special representation/orders the Scheduled Castes/Tribes Officers will rank senior to the temporary officers of the cadre notwithstanding that the latter had been recruited earlier to that cadre or had secured a higher order of merit in the same selection than the former. The seniority of such Scheduled Castes/Scheduled Tribes Officers amongst the permanent officers of that cadre will follow the order of their confirmation.

(4) If any difficulty arises in giving effect to the above provisions, the Cadre Committee may, by order, as occasion requires do anything which appears it to be necessary for the purpose of removing the difficulty.

Recruitment to the Service shall be made by transfer on deputation of official holding analogous posts in Delhi Administration and the Delhi State Co-operative Bank in the ratio of 70% and 30% respectively failing which by direct recruitment.

(a) Essential qualifications for direct recruitment :

(i) Degree from a University in Economics/Agriculture.

(ii) Knowledge of Hindi.

(b) Desirable qualification for direct recruitment:

(i) Rural background.

(c) Age Limit.

(i) Between 18 years to 30 years (relaxable in case of Scheduled Castes/Tribes) in accordance with the rules and other orders of the Government of India, issued from time to time.

(ii) Substantive appointments shall be made in order of seniority of the temporary officers of the grade on the recommendation of the Cadre Committee except when for reasons to be recorded in writing, a temporary cadre officer is not considered fit for such appointment in his turn.

(d) Special provision for the members of Scheduled Castes and Scheduled Tribes. Appointment to the cadre shall be subject to orders regarding special representation in the service for Scheduled Castes and Scheduled Tribes issued by the Government of India from time to time.

The Cadre Committee shall draw up a panel which shall not exceed thrice the number of the clear vacancies.

No candidate shall be appointed in the cadre unless certified medically fit by a qualified medical practitioner, approved by the Cadre Committee/medical. The fee shall be borne by the candidate.

(1) No person who has more than one wife having or who, having a spouse living, marriages in any case in which such marriage is void by reasons of its taking place during the lifetime of such spouse, shall be eligible for appointment to the Service.

(2) No woman, whose marriage is void by reasons of her husband having a wife living at the time of such marriage or who has married a person who has a wife living at the time of such marriage, shall be eligible for appointment to the Service :

Provided that the Lt. Governor if satisfied that there are special grounds for doing so exempt any person from the operation of this rule.

(1) Every person appointed to the service shall be on probation/trial for a period of two years.

(2) The Cadre Controlling Committee may, in the case of any person, extend the period of probation, but the total period of extension of probation/trial shall not save where it is necessary by reasons of departmental or legal proceedings pending against the officer, exceed twice the period specified as probation/trial period.

(3) A person on probation/trial shall be liable to be discharged from the grade of the service at any time without assigning any reason, provided that if he holds a lien on any permanent post of the service under the Delhi Administration, or lower grade of the Service he shall be liable to be reversed to that post/grade.

(1) An officer shall have to undergo training in co-operation as and when deputed by the Cadre Controlling Committee to a school/college imparting training in co-operation.

(2) Before proceeding of training, the officer shall have to execute a bond in favour of the Cadre Controlling Committee that he will serve the committee for a period of at least three years on successful completion of he training, otherwise he will repay to the Cadre Controlling Committee all money spent on his training.

(3) The entire sum spent on such training shall be borne by the Cadre Controlling Committee. The services of those who do not complete the training successfully shall be terminated.

(1) All permanent cadre officers shall retire on attaining the age of 58 years.

(2) A permanent cadre officer may resign after giving three months notice and a temporary employee may resign after one month's notice, or make payment in lieu of notice.

(3) The competent authority may terminate a permanent cadre officer after three months' notice and a temporary cadre officer after one month's notice or make payment equivalent to one month's pay in lieu of notice.

(4) Every cadre officer shall at all times :

(a) maintain integrity.

(b) do nothing which is unbecoming of a cadre officer.

(c) Every cadre officer shall take all possible steps to ensure integrity and devotion to duty.

(d) Every cadre officer in the performance of his official duties or in the exercise of powers conferred on him will not act otherwise than in his best judgment; when he is acting under direction obtain the directions in writing wherever practicable; to obtain the direction in writing he shall obtain written confirmation of the direction as soon thereafter as possible.

(e) No cadre officer or his family (including dependent relations) shall be a member or otherwise associated with any political party or any organisation which takes part in, subscribe in aid of, or assist in any other manner, any political movement or activity.

(f) No cadre officer shall converse or otherwise interfere with, or use his influence in connection with or take part in, an election to any legislature or local authority.

(g) No cadre officer shall join or continue to be a member of an association the objects or activities of which are prejudicial, to the interests of the sovereignty and integrity of India or public order or morality.

(h) No cadre officer shall ask or accept without the previous sanction of the Cadre Committee contributions to, or otherwise associate himself with the raising of funds or other collections in cash or kind in pursuance of any object whatsoever.

(i) Save as otherwise provided in these rules, no cadre officer shall accept or permit any member of his family or any other person acting on his behalf to accept any gift, except on occasions such as weddings, anniversaries, funerals, or religious functions, when the making of a gift is in conformity with the prevailing religious or social practice. A cadre officer accepts gifts from his near relatives but he shall make a report to the Secretary of the Cadre Committee if the value of any such gift is more than Rs. 100.

(j) No cadre officer shall take or abet the giving or taking of dowry or demand directly or indirectly from the parents or guardians of a bride or bridegroom, as the case may be, any dowry.

(k) No cadre officer shall, except with the previous permission of the Secretary of the Cadre Committee engage directly or indirectly in any trade or business or negotiate or undertake any other employment.

(l) A cadre officer shall so manage his private affairs as to avoid habitual indebtedness.

(m) A cadre officer on his first appointment to any service or post, shall submit a return of his assets in such form as may be prescribed by the Cadre Committee giving full particulars regarding :

(i) The immovable property inherited by him, or owned or acquired by him or held by him on lease or mortgage, either in the name of any member of his family or in the name of any other person,

(ii) Shares, debentures including bank deposits inherited by him or similarly owned, acquired or held by him.

(iii) Other movable property inherited by him or similarly owned, acquired or held by him.

(iv) Any debts and other liabilities incurred by him directly or indirectly.

(v) Every cadre officer shall submit an annual return on the prescribed form about the property inherited by him, owned or acquired by him or held by him on lease or mortgage either in his own name or any member of his family or in the name of any other person,

(vi) No cadre officer without prior permission of the Cadre Committee shall acquire or dispose of any movable or immovable property; the value of which exceeds Rs. 2,000 by lease, mortgage, purchase, sale, gift or otherwise, either in his own name on in the name of any member of his family.

(n) No cadre officer shall, having a spouse living enter into or contract a marriage with any person, unless it is permissible under his/her personal law and the personal law of the other party.

(o) A cadre officer who married or marries a person other than of Indian Nationality shall forthwith intimate the fact to the Administration through Secretary, Cadre Committee.

(p) Every cadre officer shall ensure that the number of his/her children does not exceed three.

(q) A cadre officer shall refrain from consuming any intoxicating drink or drugs in a public place and shall not appear in public places in the state of intoxication.

(5) The Secretary of the Cadre Committee may suspend the cadre officer and inflict minor punishment, after seeking his explanation in writing. The appeal against the said order shall lie to the chairman of the committee. The major punishment may be awarded to a cadre officer after holding any inquiry, by the chairman of the committee and appeal against such order shall be to the cadre committee. Minor punishment includes, warning, censure, stoppage of one increment without cumulative effect. Major punishment includes stoppage of increment to a maximum of two with cumulative effect, dismissal, termination and removal from service.

The officers shall have to tender cash security of Rs. 5,000 or execute fidelity bond for Rs. 5,000 in favour of the Member Secretary, Cadre Controlling Committee.

(1) Leave cannot be claimed as a matter of right.

(2) When the exigencies of public service so require leave of any kind may be refused or revoked by the authority competent to grant it, but it shall not be open to that authority to alter the kind of leave due and applied for except at the written request of the cadre officer.

(3) Except as otherwise provided in these rules, any kind of leave under these rules may be granted in combination with or in continuation of any other kind of leave. However, casual leave shall not be combined with any other kind of leave.

(4) A cadre officer shall not take up any employment elsewhere during leave period without obtaining the previous permission of the Chairman, Cadre Committee.

(5) A leave account shall be maintained in Form No. 1 for each cadre officer by the Secretary of the Cadre Committee and no leave shall be granted to a cadre officer unless admissibility has been obtained from the employee/officer entrusted with the work.

(6) Leave shall not be granted to a cadre officer whom the competent authority has decided to dismiss, remove or compulsory retire from service.

(7) An application for leave on medical grounds shall be accompanied by a medical certificate in Form No. 2 given by authorised Medical Attendant.

(8) When a medical authority has reported that there is no reasonable prospect that the cadre officer will ever be fit to return to duty if he is on duty, be invalidated from service from the date of relief of his duties, which would be arranged without delay if he is on leave, he shall be invalidated from service on the expiry of such leave.

(9) Leave ordinarily begins on the day on which the transfer or charge is effected and ends on the date preceding that on which the charge is resumed.

(10) When the day preceding the day on which a cadre officer begins or immediately following the day on which his leave expires is a holiday or one of a series of holidays, the cadre officer shall be deemed to have been permitted the benefit of such holiday/holidays.

(11) Unless the authority competent to grant leave extends the leave, the cadre officer who remains absent after the end of the leave is entitled to no leave salary for the period of such absence and that period shall be debited against his leave account as though it were half pay leave to the extent of such leave is due, the period in excess of such leave due being treated as extraordinary leave.

(12) Wilful absence from duty after the expiry of leave renders the official liable to disciplinary action.

(a) Earned Leave. The leave account of every cadre officer shall be credited with earned leave, in advance in two instalments of 15 days each on the first day of January and July every calendar year. The leave at the credit, at the close of the previous year shall be carried forward to the next half year, subject to the condition that the leave so carried forward plus the credit for the half year do not exceed the maximum of 180 days.

(b) Half pay leave. A cadre officer shall be entitled for half pay leave on completion of one year service. He shall be entitled for 20 days half pay leave for each completed year of service. The leave may be granted on medical certificate.

(c) Commuted leave. Commuted leave, not half pay leave, may be granted on medical certificate on the following conditions :

(i) the authority competent to grant leave is satisfied that there are reasonable prospects of the cadre officer returning to duty on expiry of leave,

(ii) when commuted leave is granted, twice the amount of such leave shall be debited against the half pay leave due. Half pay leave upon maximum of 180 days may be allowed to be commuted during the entire services.

(d) Extraordinary leave. Extraordinary leave may be granted in special circumstances :

(i) when no other leave is admissible.

(ii) when other leave is available but officer applies in writing for the grant of extraordinary leave.

(e)

(1) A female cadre officer may be granted maternity leave by an authority competent to grant leave for a period of ninety days from the date of its commencement. During such period she shall be paid leave salary equal to the pay drawn immediately before proceeding on leave.

(2) Maternity leave may be granted in case of miscarriage including abortion, subject to the following conditions :

(i) the leave does not exceed six weeks, and

(ii) the application for leave is supported by a Medical Certificate. Maternity leave shall not be debited against her leave account.

(f) Casual Leave. There shall be 12 casual leave in a calendar year. More than three continuous days casual leave shall not be ordinarily sanctioned by the competent authority.

(g) Special Casual Leave,

(i) Male Cadre Officer undergoing vasectomy operation under the family welfare programme may be granted special casual leave not exceeding six working days. If the Cadre Officer undergoes vasectomy operation for the second time on account of the failure of the first operation special casual leave not exceeding six days may be granted against on production of certificate from the Medical authority concerned to the effect that the second operation was performed due to the failure of the first operation.

(ii) Female cadre officer who undergoes tubectomy operations whether puerperal or non-puerperal may be granted special casual leave not exceeding 14 days.

(iii) Female cadre officer who have insertions of intrautrine contraceptive device may be granted special casual leave on the day of IVCD insertion.

(iv) Female cadre officers who undergo salpingectomy operation after medical termination of pregnancy may be granted special casual leave not exceeding 14 days.

(v) Competent authority for sanction of casual leave will be the Chairman of the Society in which the cadre officer is posted. For other types of leave the competent authority will be the Secretary of the Cadre Committee.

(1) On completion of 240 days service, provident fund shall be deducted from the salary of the officers as per provisions contained in the Provident Fund Act, 1925 as amended from time to time.

(2) The rates of deduction, contribution by the Cadre Committee, rate of interest, advances, repayment, appointment of nominee shall all be regulated by the provisions regarding, Provident Fund in the service rules of the bank.

The officers who complete five years service shall be granted gratuity as per rules applicable to the employees of the Bank.

The Cadre Controlling Committee may transfer the Cadre officers from one society to another society in its discretion.

The scale of pay attached with the post of the managers of the society will be as under; Rs. 158-6-170-10-200-13-226-14-240-15-285-20-345-25-420-30-480. The pay scale shall be revised subject to the Administrative approval of the Registrar. In addition to the pay, the employees shall be entitled for such allowances and at such rates, as the other employees of the Bank, in the similar scale, are receiving.

The duties of Secretary/Manager appointed under this cadre shall be that:

(i) he shall be custodian of records, securities and other properties of the society. The records of the Society shall be kept in the office of the society;

(ii) he shall maintain correctly and up-to-date the prescribed registers and also to certify copies of entries in the books;

(iii) he shall procure applications from members for loan, prepare loan application on behalf of the Society, put it up before the Managing Committee for approval and seek sanction from the Bank;

(iv) he shall procure from the borrowers the due execution of bonds with security as required under the by-laws;

(v) he shall prepare all receipts, vouchers, documents required by the Managing Committee of the Society and Financing Bank, the Registrar according to the by-laws and the rules;

(vi) he shall sign on behalf of the society and conduct its correspondence;

(vii) he shall be the ex-officio member of the Managing Committee shall watch the proper utilization of the loan and other facilities and make timely report to the Incharge, Area Inspector, Sub-Inspector and the Bank Field Supervisor;

(viii) he shall be responsible for the timely financing, recovery and action against defaulters;

(ix) he shall convene and attend Managing Committee and General Body meetings in accordance with the Act, Rules and the By-laws. He shall record the proceedings and sign them and seek other signatures as laid down in the Act, Rules and the by-laws;

(x) he shall be in overall control of the staff appointment by the society with the aroval of the Registrar;

(xi) he shall prepare the annual statements and submit to the Bank and the Registrar within the prescribed period;

(xii) he shall be responsible for submission of all information required by the Registrar, Bank or any office;

(xiii) he shall be allowed to incur contingent expenditure within limits prescribed by the Managing Committee;

(xiv) he shall be responsible to the President of the Society for day to day working;

(xv) he shall be under the overall supervision of the General Manager; and

(xvi) such other duties as may be assigned to him from time to time by the President of the Society, General Manager of the Bank, the Registrar Co-operative Societies and the Cadre Committee.

In regard to matters not specifically covered by these rules or orders issued thereunder, the members of cadre shall be governed by the rules, regulations and orders applicable to the employees of the Bank.

If any question arises as to interpretation of these rules, the same shall be decided by the Chairman of the Cadre Controlling Committee.

Where the Lt. Governor is of the opinion that it is necessary and expedient so to do, he may, by order and for reasons to be recorded in writing, relax any of the provisions of these rules.