The Multi-State Cooperative Societies Act, 1984

CHAPTER II: CENTRAL REGISTRAR AND REGISTRATION OF SOCIETIES

4. Central Registrar -

(1) The Central Government may appoint a person to be the Central Registrar of Cooperative Societies and may appoint such other persons as it may think fit to assist the Central Registrar.

(2) The Central Government may, by notification, direct that any power exercisable by the Central Registrar under this Act (other than the power of registration of a multi-State cooperative society) shall in relation to such society, and such matters as may be specified in the notification be exercisable also by any other officer of the Central Government or of a State Government as may be authorised by the Central Government subject to such conditions as may be specified there in;

Provided that no officer of a State Government shall be empowered to exercise such power in relation to a national cooperative society;

Provided further that no officer of a State Government below the rank of the Registrar of Cooperative Societies shall be empowered to exercise any power exercisable by the Central Registrar under Section 87.

5. Multi-State Cooperative Societies which may be registered -

(1) No multi-State cooperative society shall be registered under this Act, unless the main objects of the society are to serve the interests of members in more than one State.

(2) Subject to the provisions of sub-section (1), a multi-State cooperative society, which has as its objects the promotion of the economic and social betterment of its members through mutual aid in accordance with the cooperative principles or a multi-State cooperative society established with the object of facilitating the operations of other such societies or of cooperative societies or of both may be registered under this Act.

(3) The word "Limited" or its equivalent in any Indian language shall be suffixed to the name of every multi-state cooperative society registered under this Act with limited liability.

6. Application for registration -

(1) For the purposes of registration of a multi-state cooperative society under this Act, an application shall be made to the Central Registrar in such form and with such particulars as may be prescribed.

(2) The application shall be signed -

(a) in the case of a multi-State cooperative society of which all the members are individuals, by at least fifty persons from each of the States concerned;

(b) in the case of a multi-State cooperative society of which the members are cooperative societies, by duly authorised representatives on behalf of at least two such societies as are not registered in the same state; and

(c) in the case of a multi-State cooperative society of which another multi-State cooperative society and other cooperative societies are members, by duly authorised representatives of each of such societies;

Provided that not less than two of the cooperative societies referred to in clause (b) or clause (c) as the case may be, shall be such as are not registered in the same State.

(3) The application shall be accompanied by four copies of the proposed bye-laws of the multi-State cooperative society and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Central Registrar may require.

7. Registration -

(1) If the Central Registrar is satisfied -

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

(b) that the proposed multi-State cooperative society satisfies the basic criterion that its objects are to serve the interests of members in more than one State;

(c) that there is no other multi-State cooperative society having similar area of operation and identical objects;

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

(e) that the proposed multi-State cooperative society has reasonable prospects of becoming a viable unit,

he may register the multi-State cooperative society and its bye-laws.

(2) Where the Central Registrar refuses to register a multi-State cooperative society, he shall communicate the order of refusal together with the reasons therefor, to such number of the applicants and in such manner as may be prescribed.

(3) The application for registration shall be disposed of by the Central Registrar within a period of six months from the date of receipt thereof by him:

Provided that if the Central Registrar is unable to dispose of the application within the period aforesaid, he shall make a report to the Central Government stating therein the reasons for his inability to do so, and the Central Government may allow him such further period or periods as is considered necessary to dispose of such application.

8. Registration certificate -

Where a multi-State cooperative society is registered under this Act, the Central Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the society therein mentioned is duly registered under this Act, unless it is proved that the registration of the society has been cancelled.

9. Amendment of bye-laws of a multi-State Cooperative Society -

(1) No amendment of any bye-laws of a multi-State Cooperative society shall be valid, unless such amendment has been registered under this Act.

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

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

(b) does not conflict with cooperative principles; and

(c) will promote the economic interests of the members of the multi-State cooperative society,he may register the amendment within a period of six months from the date of receipt thereof by him.

Provided that if the Central Registrar is unable to register the amendment within the period aforesaid he shall make a report to the Central Government stating therein the reasons for his inability to do so, and the Central Government may allow him such further period or periods as is considered necessary to register the amendment.

(3) The Central Registrar shall forward to the multi-State cooperative 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 Central Registrar refuses to register an amendment of the bye-laws of a multi-State cooperative society, he shall communicate the order of refusal together with the reasons therefor to the Chief Executive of the society in the manner prescribed within seven days from the date of such refusal.

10. When amendment of bye-laws comes into force -

An amendment of the bye-laws of a multi-State Cooperative 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.

11. Change of name -

(1) A multi-State cooperative society may, by an amendment of its bye-laws, change its name but such change shall not affect any right or obligaton of the multi-State cooperative society or of any of its members or past members, and any legal proceedings which might have been continued or commenced by or against the multi-State cooperative society by its former name may be continued or commenced by or against its new name.

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

12. Change of address-

Every multi-State cooperative society shall have a principal place of business and an address registered in the manner prescribed to which all notices and communications may be sent and any change in the principal place of business of a multi-State cooperative society shall be made with the previous approval of the Central Registrar.

13. Liability-

(1) No multi-State cooperative society with unlimited liability shall be registered after the commencement of this Act:

Provided that where a multi-unit cooperative society with unlimited liability was functioning before the commencement of this Act, such a society shall exercise the option within a period of one year from such commencement either to continue to function as such or to convert itself into a multi-State cooperative society with limited liability by following the procedure specified in sub-sections (2) to (4).

(2) Subject to the provisions of this Act and the rules, a multi-unit cooperative society may, by an amendment of its bye-laws, change the extent of its liability.

(3) When a multi-unit cooperative society has passed a resolution to change the extent of its liability, it shall give notice thereof in writing to all its members and creditors, and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor shall, during the 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.

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

(5) An amendment of a bye-law of a multi-unit cooperative society changing the extent of its liability shall not be registered or shall not take effect until either-

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

(b) all claims of members and creditors who exercise the option referred to in sub-section (3) within the period specified therein have been met in full or otherwise satisfied.

14. Amalgamation or transfer of assets and liabilities or division of multi-State Cooperative Societies--

(1) A multi-State cooperative society may, with the prior consultation of the Central Registrar and by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of the society held for the purpose,-

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

(b) divide itself into two or more multi-State cooperative societies;

(c) divide itself into two or more cooperative societies.

(2) Any two or more multi-State cooperative societies may, with the prior consultation of the Central Registrar and by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new multi-State cooperative society.

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

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

(4) When a multi-State cooperative society has passed a resolution under sub-section (1) or sub-section (2), it shall give notice thereof in writing to all the members and creditors and, notwithstanding anything contained in the bye-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) A resolution passed by a multi-State cooperative society under this section shall not take effect until the assent thereto of all the members and creditors has been obtained.

(b) The multi-State cooperative society shall make arrangements for meeting in full or otherwise satisfying all claims of the members and creditor who exercise the option within the period specified in sub-section (4).

(7) On receipt of an application for the registration of new societies formed by division in accordance with the resolution passed under sub-section (1) or of a new society formed by amalgamation in accordance with the resolution passed under sub-section (2), the Central Registrar, on being satisfied that the resolution has become effective under sub-section (6) shall, unless for reasons to be recorded in writing he thinks fit to refuse so to do, register the new societies or society, as the case may be, and the bye-laws thereof.

(8) On the issue of an order under sub-section (7), the provisions of section 17 shall; so far as may be, apply to the multi-State cooperative society so divided or the multi-State cooperative societies so amalgamated.

(9) Where a resolution passed by a multi-State Cooperative Society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any other law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.

15. Central Registrar to prepare scheme of amalgamation or reorganisation of cooperative bank in certain cases -

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 cooperative bank, the Central Registrar, with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme -

(a) for the amalgamation of the cooperative bank with any other cooperative bank; or

(b) for the reorganisation of the cooperative bank.

16. Liability of a cooperative bank to the Deposit Insurance and Credit Guarantee Corporation -

Notwithstanding anything contained in section 14 or any other provision of this Act, were a cooperative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, is amalgamated or reorganised 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 the Act, the bank with which such insured bank is amalgamated, or the new cooperative bank found after such amalgamation, or, as the case may be, the insured bank or transferee bank shall be under an obligation to repay to the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961.

17. Cancellation of registration certificate of multi-State cooperative societies in certain cases -

(1) Where the whole of the assets and liabilities of a multi-state cooperative society are transferred to another multi-State cooperative society or to a cooperative society in accordance with the provisions of section 14, the registration of the first mentioned multi-State 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 multi-State cooperative societies are amalgamated into a new multi-State cooperative society in accordance with the provisions of section 14, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each of the amalgamating societies shall be deemed to have been dissolved and shall cease to exist as a corporate body.

(3) Where a multi-State cooperative society divides itself into two or more multi-State cooperative societies or two or more cooperative societies in accordance with the provisions of section 14, 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 or division of multi-State cooperative societies shall not in any manner whatsoever effect any right or obligation of the resulting multi-State cooperative society or societies or render defective any legal proceedings by or against the multi-State cooperative society or societies, and any legal proceedings that might have been continued or commenced by or against the multi-State cooperative society or societies, as the case may be, before the amalgamation or division may be continued or commenced by or against the resulting multi-State cooperative society or societies.

18. Conversion of cooperative society into multi-State Cooperative Society-

(1) A cooperative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a multi-State cooperative society:

Provided that no such amendment of bye-laws of a cooperative society shall be valid unless it has been registered by the Central Registrar.

(2) (a) Every proposal for such amendment shall be forwarded to the Central Registrar.

(b) If the Central Registrar, after consulting the Registrars of Cooperative Societies of the States concerned, has satisfied himself that such amendment fulfils the requirement of sub-section (2) of section 9, he may register the amendment within a period of six months from the date of receipt thereof by him:

Provided that if the Central Registrar is unable to register the amendment within the period aforesaid, he shall make a report to the Central Government stating therein the reasons for his inability to do so, and the Central Government may allow him such further period or periods as is considered necessary to register the amendment.

(3) The Central Registrar shall forward to the cooperative 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 registered.

(4) Where the Central Registrar refuses to register an amendment of the bye-laws of a cooperative society, he shall communicate the order of refusal together with the reasons therefor to the society in the manner prescribed within seven days from the date of refusal.

(5) (a) Once the amendment of bye-laws has been registered by the Central Registrar, the cooperative society shall, as from the date of registration of amendment, become a multi-State cooperative society.

(b) The Central Registrar shall forward to the cooperative society a certificate signed by him to the effect that such society has been registered as a multi-State cooperative society under this Act and also forward a copy of the same to the Registrar of Cooperative Societies of the State concerned.

(c) The Registrar of Cooperative Societies referred to in clause (b) shall thereupon make an order directing that the society had, as from the date of registration by the Central Registrar, ceased to be a society under the law relating to cooperative societies in force in that State.