The Multi-State Cooperative Societies Act, 1984

CHAPTER XIV: MISCELLANEOUS

98. Copy of Act, rules and bye-laws etc., to be open to inspection -

Every multi-State cooperative society shall keep a copy of this Act, the rules and its bye-laws and also a list of its members, open to inspection free of charge at all reasonable times at the registered address of the society.

99. Power to exempt multi-State Cooperative Societies from conditions as to registration -

(1) Notwithstanding anything contained in this Act, the Central Government may, by general or special order, for reasons to be recorded therein, and subject to such conditions, if any, as may be specified therein exempt any multi-State cooperative society or class of such societies from any of the requirement of this Act relating to registration;

(2) (a) The Central Government may, by general or special order and for reasons to be recorded therein;

(i) exempt any multi-State cooperative society or any class of such societies from any of the provisions of this Act or of the rules; or

(ii) direct that such provisions shall apply to such society or class of societies with such modifications not affecting the substance thereof as may be specified in the order;

Provided that no order shall be made under sub-clause(ii) so as to prejudice the interests of such society or class of such societies without a reasonable opportunity being given to make representation in the matter.

(b) Every order made under clause (a) shall be published in the Official Gazette.

100. Liquidator to be public servant -

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

101. Notice necessary in suits -

No suit shall be instituted against a multi-State cooperative society or any of its officers in respect of any act touching the constitution, management or the business of the society until the expiration of ninety days next after notice in writing has been delivered to the Central 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.

102. Certain Acts not to apply -

(1) The provisions of the Companies Act, 1956 and the Monopolies and Restrictive Trade Practices Act, 1969 shall not apply to multi-State cooperative societies.

(2) The multi-State cooperative societies registered or deemed to be registered under the provisions of this Act shall not indulge in monopolistic and restrictive trade practices, as defined in the Monopolies and Restrictive Trade Practices Act, 1969.

103. Savings of existing multi-State Cooperative Societies -

(1) Every multi-State cooperative society existing immediately before the commencement of this Act which has been registered under the Cooperative Societies Act, 1912 or under any other Act relating to cooperative societies in force, in any State or in pursuance of the provisions of the Multi-unit Cooperative Societies Act, 1942, shall be deemed to be registered under the corresponding provisions of this Act, and the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, or the rules, continue to be in force until altered or rescinded.

(2) All appointments, rules and orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the Acts referred to in sub-section (1) shall, in so far as they are not inconsistent 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 the registration of a multi-State cooperative society shall be deemed, unless the society has already been finally liquidated, to be an order made under section 77 for its being wound up.

104. Power to amend second Schedule-

91) f the Central Government is satisfied that any multi-State cooperative society should be designated as a national cooperative society or any national cooperative society specified in the second Schedule should be omitted from the said Schedule, it may, by notification, amend the said Schedule so as to include there in such multi-State cooperative society or exclude therefrom such national cooperative society, and thereupon the said Schedule shall be deemed to have been amended accordingly.

(2) A copy of every notification made under sub-section (1) shall be laid before each House of Parliament as soon as may be after it is made.

105. Bar of jurisdiction of courts-

(1) Save as otherwise provided in this Act, no court shall have jurisdiction in respect of -

(a) the registration of a multi-State cooperative society or its bye-laws or of an amendment of the bye-laws;

(b) the removal of board of directors;

(c) any dispute required under section 74 to be referred to the Central Registrar; and

(d) any matter concerning the winding up and the dissolution of a multi State cooperative society.

(2) While a multi-State cooperative 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 or against the society or any member thereof, except by leave of the Central Registrar and subject to such terms and conditions as he may impose.

(3) Save as otherwise provided in this Act, no decision or order made under this Act shall be questioned in any court.

106. Powers of civil court -

(1) In exercising the functions conferred on him by or under this Act, the Central Registrar, or any other person deciding a dispute under section 76 and the liquidator of a multi-State cooperative society and a person entitled to audit, inspect or hold an inquiry under this Act, 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 Central Registrar, or any other person deciding a dispute or the liquidator, as the case may be, may administer oath to the deponent.

107. Indemnity -

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

108. Opening of branches -

(1) Notwithstanding anything contained to the contrary in any law relating to cooperative societies in force in a State, a multi-State cooperative society, not being a cooperative bank, may open branches or places of business in any place in India.

(2) Where a multi-State cooperative society opens branches or places of business in any State under sub-section (1), the Registrar of Cooperative Societies in such State shall not exercise any jurisdiction in relation to such branches or places of business nor shall call for any returns or information therefrom.

109. Power to make Rules-

(1) The Central Government may, by notification, make rules to carry out the provisions of the Act.

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

(i) the form to be used, the particulars to be given and the conditions to be complied with in the making of applications under section 6 for the registration of a multi-State cooperative society and the procedure in the matter of such applications.

(ii) the number of the applicants and the manner in which the order of refusal to register a multi-State cooperative society and its bye-laws shall be communicated under sub-section (2) of section 7;

(iii) the manner in which the order of refusal to register any amendment of the bye-laws shall be communicated under sub-section (4) of section 9 and section 18;

(iv) the procedure and conditions for change in the extent of the liability of a multi-State cooperative society under section 13;

(v) the matters in respect of which a multi-State cooperative society may make bye-laws and the procedure to be followed in making, altering and abrogating bye-laws under section 9 or section 18 and the conditions to be satisfied prior to such making, alteration or abrogation.

(vi) the conditions to be complied with under section 19 by persons applying for admission as members, for the election and admission of members and the payment to be made and the interest to be acquired before the exercise of the right of membership;

(vii) the number of individuals who may be admitted as members of the National Cooperative Union of India Limited, New Delhi as required by section 19 and their qualifications;

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

(ix) the votes of members, as required by section 22;

(x) the maximum number of shares of a multi-State cooperative society which may subject to the provisions of section 24, be held by a member;

(xi) the constitution and powers of a smaller body representing the general body under section 29.

(xii) general meeting of the members under section 30, the period within which such meeting be called and the procedure at such meetings and the powers to be exercised by such meetings;

(xiii) the proportion of individuals and multi-State cooperative societies in the constitution of the board of directors and the general body under section 32;

(xiv) the election of members of the boards under section 35 and nomination of members to such boards under section 41, the appointment, or election of officers and the powers to be exercised and the duties to be performed by the boards and other officers;

(xv) the restrictions and conditions subject to which honorarium may be paid under section 38 to the elected chairman or president of the board of directors for services rendered;

(xvi) the additional measures and acts which may be taken or, as the case may be, done by the board under section 42;

(xvii) the number of meetings of the board, the venue of such meetings and the number of committees or sub-committees for purposes of sections 43 and 46;

(xviii) the appointment and regulation of work entrusted to persons replacing the board in pursuance of section 48;

(xix) the constitution of a body of persons under section 50 for the preparation of a list of persons eligible for appointment to the posts of Chief Executive and other management posts in national cooperative societies and the amount of the maximum pay-scale applicable to such posts;

(xx) the recruitment, remuneration, allowances and other conditions of service of officers and other employees of national cooperative societies under section 50;

(xxi) prohibiting a multi-State cooperative society from electing a defaulting member, or a representative of defaulting member-society, on its board;

(xxii) the returns to be submitted by a multi-State cooperative society to the Central 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, the levy of expenses of preparing it.

(xxiii) the persons by whom and the form in which copies of entries in books of multi-State cooperative societies may be certified under section 56 and the charges to be levied for the supply of such copies;

(xxiv) the terms and conditions on which the Central Government may make share capital contribution or give financial or other assistance to multi-State cooperative societies under section 59 and the terms and conditions on which the Central Government may guarantee the payment of the principal or interest on debentures issued by multi-State cooperative societies or loans or deposits raised by them;

(xxv) the procedure to be followed in proceedings before the Central Registrar 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 interest, and the levy of expenses relating to such proceedings;

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

(xxvii) 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 members;

(xxviii) the formation and maintenance of reserve funds and other funds under section 61 and the objects to which such funds may be applied, and the investment of any funds under the control of a multi-State cooperative society under section 62;

(xxix) the conditions under which profits may be distributed under section 61 to the members of a multi-State cooperative society and the maximum rate of dividend which may be paid by multi-State cooperative societies;

(xxx) the prohibitions and restrictions subject to which multi-State cooperative societies may, under section 65, transact business with persons who are not members;

(xxxi) the accounts and books to be kept by a multi-State cooperative society and the audit of such accounts and the charges, if any, to be made for such audit under section 67 and the periodical publication of a balance sheet showing the assets and liabilities of a multi-State cooperative society;

(xxxii) the calculation and writing off of bad debts by multi State Cooperative societies;

(xxxiii) the appointment of persons for settlement of disputes under section 76;

(xxxiv) the procedure to be followed by a liquidator appointed under section 80 in respect of provisions of section 81.

(xxxv) the manner in which the surplus assets may be divided amongst the members of the multi-State cooperative society under section 82;

(xxxvi) the procedure for execution of decisions under section 85;

(xxxvii) the procedure to be followed in presenting and disposing of appeals under section 90;

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

(xxxix) the manner of effecting attachment;

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

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

(xlii) the immediate sale of perishable articles;

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

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

(xlv) the procedure under section 95 for reconstitution and reorganisation of societies which become multi-State cooperative societies consequent on reorganisation of a State;

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

(xlvii) the manner and the periodicity or returns of pending cases of registration of multi-State cooperative societies and amendments of bye-laws to be sent by the Central Registrar to the Central Government;

(xlviii) any other matter which is required to be, or may be prescribed.

(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 sessions 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 or anything previously done under that rule.

110. Repeal-

The Multi-unit Cooperative Societies Act, 1942 is hereby repealed.