(1) An appeal shall lie under this section against.
(a) an order of the Registrar made under sub-section (2) of S.7 refusing to register a society; or
(b) an order of the Registrar made under sub-section (4) and (6) or Sec.l2 refusing to register an amendment of the bye-laws of a society; or
(c) a decision of a society refusing to admit any person as a member of the society or expelling any member of the society; or
(d) an order made by the Registrar under Sec.67 apportioning the cost of inquiry held under Sec.65 or an inspection made under Sec.66; or
(e) an order of surcharge made by the Registrar under Sec.68; or
(f) an order made by the Registrar under Sec.71 directing the winding up of a society; or
(g) any order made by the Liquidator of a society in exercise of the power conferred on him by Sec.73; or
(h) any order made under Sec.76; or
(i) an order for attachment of any property made by the Registrar under Sec.78; or
(j) any order for made by any person exercising all or any of the powers of the Registrar.
(2) An appeal under sub-section (1) shall be made within sixty days from the date of the order or decision-
(a) if the order or decision was made by the Registrar, to the Government; and
(b) in other cases, to the Registrar, and the Government or the Registrar, as the case may be, may pass such order on the appeal as they or he may think fit.
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 propriety 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 revised, the Tribunal may pass such order thereon as it may deem fit:
Provided that the Tribunal shall not take any action under this section if:-
(a) the time for appeal against the decision or order has not expired; or
(b) the decision or order has been made the subject matter of an appeal:
Provided further that no order shall be made under this section unless notice has been given to all interested parties and they have been given a reasonable opportunity of being heard.
(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 fit:
Provided that no such application shall be entertained unless the tribunal is satisfied that there has been a discovery of new and important matter or 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 that there is any other sufficient reason for reviewing its order:
Provided further that no such order shall be made under this sub-section unless notice has been given to all interested parties and they have been given a reasonable opportunity of being heard.
(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.
Where an appeal is made to the Tribunal under Sec.82 or where the Tribunal calls for the record of a case under Sec.84, it may, in order to prevent the ends of justice being defeated, make such interlocutory orders pending the decision of the appeal or revision as it may deem fit.
(1) The Registrar may of his own motion or on application call for and examine the records of any officer subordinate to him not being an officer exercising the powers of the Registrar and the Government may of their own motion or on application call for and examine the records of the Registrar including any officer exercising the powers of the Registrar, in respect of any proceeding, not being a proceeding in respect of which an appeal to the Tribunal is provided by Sec.82, to satisfy himself or themselves as to the regularity of such proceedings, or the correctness, legality or propriety of any decision passed or order made thereon and if, in any case it appears to the Registrar or the Government that any such decision or order should be modified, annulled, reversed or remitted for reconsideration, he or they may pass orders accordingly:
Provided that every application to the Registrar or the Government for the exercise of the powers under this section shall be preferred within three months from the date on which the proceeding, decision or order to which the application relates was communicated to the applicant.
(2) No order prejudicial to any person shall be passed under sub-section (1) unless such person has been given an opportunity of making his representation.
(3) The Registrar or the Government, as the case may be, may suspend the execution of any decision or order pending the exercise of his or their power under sub-section (1) in respect thereof.
(4) The Registrar or the Government may award costs in proceedings under this section to be paid either out of the funds of the society or by such party to the application for revision as the Registrar or the Government may deem fit.
(1) The Government shall, by notification in the Gazette, constitute a Circle Cooperative Union for each circle in the State with the following members, namely:--
89A[(a) seven members representing the various categories of affiliated societies within the circle, elected, in such manner as may be prescribed, by the members of the committee of each such category of societies from among themselves;]
89B[(b) x x x x]
89C[(b)] two members elected, in such manner as may be prescribed, by the employees of the affiliated Cooperative Societies within the circle, from among themselves;
89C[(c)] one member elected by the women members of the committees of the affiliated societies referred to in clause (a), from among themselves;
89C[(d)] one member belonging to the Scheduled Castes or Scheduled Tribes elected by the Scheduled Caste or Scheduled Tribe members of the Committees of the affiliated societies referred to in clause (a), from among themselves;
89C[(e) the Assistant Director of Co-operative Audit having jurisdiction over the circle, ex-officio;]
89C[(f)] the Assistant Registrar of Cooperative Societies (General) having jurisdiction over the circle ex-officio, who shall be the Secretary of the Circle Cooperative Union.
(2) Each Circle Cooperative Union shall elect one of the members, other than an ex-officio member, to be its Chairman,
*(3) The term of office of an elected member shall be 90[five] years from the date on which he enters upon office.
(4) The ex-officio members shall have all the powers of an elected member.
(5) The affiliated and functioning societies alone shall have the right to vote and contest in the election in the Circle Cooperative Union.
Explanation.-- For the purpose of this sub-section a society which is carrying on activities in accordance with its principal object shall be a functioning society.]
If the Registrar is satisfied that the members of a Circle Cooperative Union persistently make default or are negligent in the performance of the duties imposed on them as per the provisions of this Act or the Rules made thereunder or commit any act which is prejudicial to the interest of that Circle Cooperative Union or wilfully disobey or fail to comply with any lawful order or direction, the Registrar may, after giving the members an opportunity to state their objections, if any, by an order in writing, remove the members and appoint an officer of the Cooperative Department not below the rank of Asst. Registrar to manage its affairs for a period not exceeding six months as may be specified in the order, which period may, at the discretion of the Registrar and for reasons to be recorded in writing be extended from time to time, so, however, that the aggregate period shall not, in any case, exceed one year or till the said Circle Cooperative Union is reconstituted, whichever is earlier.]
Where the term of office of the Circle Cooperative Union has expired and a new union has not been constituted, or where the members of the existing Circle Cooperative Union resigns enblock or where vacancies occur in the Circle Cooperative Union either by resignation or otherwise and the number of remaining members cannot constitute the quorum or where the Circle Cooperative Union fails to hold its regular meeting consecutively for six months or where the Registrar is satisfied,--
(i) that a new Circle Cooperative Union cannot be constituted before the expiry of the term of office of the existing Circle Cooperative Union; or
(ii) on the date on which the term of office of the existing Circle Cooperative Union expires; or
(iii) a new Circle Cooperative Union is prevented from entering upon office or the new Circle Cooperative Union fails to enter upon office, the Registrar may appoint an officer 91B[or an administrator or an administrative committee consisting of not more than three persons, one among them shall be the convenor] to manage the affairs of the Circle Cooperative Union, for a period of six months as may be specified in the order, which period may at the discretion of the Registrar and for reasons to be recorded in writing be extended from time to time, so, however that the aggregate period shall not in any case exceed one year or till the said Circle Cooperative Union is reconstituted, whichever is earlier.]
A committee shall remove from office the Chairman, or any other officer of the committee, if a motion expressing want of confidence in any or all of them is carried with the support of the majority of the members of such committee in accordance with the procedure as may be prescribed.]
(1) The Government shall, by notification in the Gazette, establish a State Cooperative Union.
(2) The State Cooperative Union shall consist of
(a) a general body; and
(b) a managing committee.
92A[(3) Each of the Circle Cooperative Unions, apex societies and central societies shall elect a delegate in such manner as may be prescribed, and all such delegates, the employees' representatives, the representative of the women members, the representatives of the members belonging to the Scheduled Castes or Scheduled Tribes, the ex-officio members and the Government nominees in the managing committee of the State Cooperative Union shall constitute the General Body of the State Cooperative Union.]
(4) The Managing Committee referred to in clause (b) of sub-section (2) shall consist of the following members, namely:
(a) one member from each Revenue District in the State, elected, in such manner as may be prescribed, by the delegates of the Circle Cooperative Unions, from among themselves;
92A[(b) one member elected, in such manner as may be prescribed, by the delegates of the apex societies in the State other than the Kerala State Cooperative Bank, from among themselves;]
92A[(c) two members elected by the Board of Directors of the Kerala State Cooperative Bank from among themselves;]
(d) one member elected, in such manner as may be prescribed, by the members of the Circle Cooperative Union elected under 93A[clause (b)] of sub-section (1) of Sec.88 from among themselves;
(e) one member elected, in such manner as may be prescribed, by the members of the Circle Cooperative Union elected under 93B[clause (c)] of sub-section (1) of Sec.88, from among themselves;
(f) one member elected, in such manner as may be prescribed, by the members of the Circle Cooperative Unions elected under 93C[clause (d)] of sub-section (1) of Sec.88, from among themselves;
(g) two members nominated by the Government;
(h) the Secretary of the State Cooperative Union, ex-officio.
(5) The managing committee shall elect one of its members, other than an ex-officio member, to be the Chairman of the State Cooperative Union.
*(6) The term of office of the members of the general body and of the managing committee of the State Cooperative Union shall be 93[five] years from the date on which they enter upon office.
(7) The Registrar or any officer, not below the rank of Additional Registrar of Cooperative Societies, nominated by him shall be the Secretary of the State Cooperative Union.
(8) The ex-officio members and the nominated member shall have all the powers of an elected member of the managing committee.]
If the Government are satisfied that the managing committee of the State Cooperative Union persistently makes default or is negligent in the performance of the duties imposed on it by the provisions of this Act or the rules made thereunder or commits any act which is prejudicial to the interest of the State Cooperative Union or wilfully disobeys or fails to comply with any lawful order or direction issued under this Act or the rules, the Government may, after giving the managing committee, an opportunity to state its objections, if any, by order in writing, remove the members and appoint an officer of the Cooperative Department or a committee consisting of three members to manage its affairs for a period not exceeding six months, as may be specified in the order, which period at the discretion of the Government and for reasons to be recorded in writing, be extended from time to time, so, however, that the aggregate period shall not, in any case, exceed one year or till the State Cooperative Union is reconstituted, whichever is earlier.]
Where the term of the managing committee of the State Cooperative Union has expired and a new managing committee has not been constituted or where the members of the existing managing committee resigns enblock or where vacancies occur in the managing committee either by resignation or otherwise and the number of remaining members cannot constitute the quorum or where the State Cooperative Union fails to hold its regular meeting consecutively for six months or where the Government are satisfied,--
(i) that a new managing committee cannot be constituted before the expiry of the term of office of the existing managing committee; or
(ii) that on the date on which the term of the existing managing committee expires; or
(iii) that a new managing committee is prevented from entering upon office or a new managing committee fails to enter upon office, the Government may appoint an officer of the Co-operative Department 94B[not below the rank of Additional Registrar or an administrator or an administrative committee consisting of three persons, one among them shall be the Convenor]to manage the affairs of the State Cooperative Union, for a period of six months as may be specified in the order, which period may at the discretion of the Government and for reasons to be recorded in writing, be extended from time to time, so however that the aggregate period shall not in any case exceed one year or till the managing committee is reconstituted, whichever is earlier.]
The committee shall remove from office the Chairman, the Vice Chairman or any other officer of the committee if a motion expressing want of confidence in any or all of them is carried with the support of the majority of the members of such committee in accordance with the procedure as may be prescribed.]
(1) Every Cooperative Society in the State shall, within a period of six months from the commencement of this Act, or within a period of six months from the date of its registration, whichever period expires later, get itself affiliated to the State Cooperative Union.
(2) The affiliation under sub-sec. (1) shall be in force for a period of one year from the date of affiliation and shall be renewed on the expiry of that period.
(3) The fees payable by a co-operative society for an affiliation to the State Cooperative Union or for the renewal of such affiliation shall be such as may be prescribed.
(4) If any Cooperative Society fails to affiliate to the State Cooperative Union as required by sub-section (1) or to renew such affiliation as required by sub-section (2), such society shall not be entitled to any of the privileges conferred on a co-operative society 95[under Chapter.V of this Act].
(1) The functions of the State Cooperative Union shall be:--
(a) to organise, assist and generally develop co-operative Societies;
(b) to carry on co-operative propaganda, and
(c) to spread 96A[to establish educational institutions and] education on Cooperative principles and practices.
96[(d) to participate in the developmental activities and decentralised planning of the local authorities;
(e) to organise training programmes for the employees of the societies and for the members of the committee and to ensure their participation in such programmes.]
(2) The State Cooperative Union shall perform such other functions as may be prescribed.
(1) Notwithstanding anything contained in this Act or in the bye-laws of the Cochin Central Cooperative Institute Ltd., the Malabar Cooperative Institute Ltd. and the South Kerala Cooperative Union Ltd. all properties and all rights of whatever kind used, enjoyed or possessed by and all interests of whatever kind owned by or vested in or held by them and all liabilities legally subsisting against them shall on and from the date of commencement of this Act and subject to such directions as may be issued by the Registrar by general or special order made in this behalf, pass to the Kerala State Cooperative Union Ltd.
(2) The duties performed and the functions discharged by the aforesaid societies shall be performed and discharged by the Kerala State Cooperative Union Ltd., and the employees of the said societies shall become the employees of the Kerala State Cooperative Union Ltd.
(3) The management of the Kerala State Cooperative Union Ltd. shall, notwithstanding anything contrary in the bye-laws thereof, be vested in a committee consisting of all the members of the Board of Directors of the aforesaid societies including the Kerala State Cooperative Union Ltd.
On a date to be notified by the Government after the formation of the State Cooperative Union under S.89 all properties and all rights of whatever kind used, enjoyed or possessed by and all interests of whatever kind owned by or vested in or held by and all liabilities legally subsisting against the Kerala State Cooperative Union Ltd, shall subject to such directions as may be issued by the Registrar, vest in the state Cooperative Union so formed and all the employees of the Kerala State Cooperative Union Ltd., shall become the employees of the State Cooperative Union.
(1) No person other than a 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 in part without the sanction of the Government.
Provided that nothing in this section shall apply in any area to the use by any person or his successor-in-interest of any name or tittle under which he carried on business at the date on which the Cooperative Societies Act, 1912 (Central Act 2 of 1912), the Cooperative Societies Act (Travancore Act X of 1089) or the Cochin Cooperative Societies Act, XXVI of 1113, as the case may be, came into operation in that area.
(2) Any person carrying on any trade or business in contravention of sub-section (1) shall be punishable with fine which may extend to 97[five thousand] rupees
.
(3) Any member or past member or the nominee, heir, or legal representative of a deceased member of a society who contravenes the provisions of S.35 by disposing of any property in respect of which the society is entitled to have a first charge under that section or does any other act to the prejudice of such claim, shall be punishable with fine which may extend to 97[five thousand] rupees.
(4) The committee of a society or an officer or member thereof wilfully making a false return or furnishing false information or failing to produce cash balance on demand or failing to make the records available for audit, inquiry or inspection, 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 99[ten thousand] rupees.
99A[(4A) Any officer or custodian, willfully fails to handover custody of books, accounts, documents, records, cash, security and other property belonging to a society of which he is an officer or custodian, to an authorised officer such as Administrator, Administrative Committee, Liquidator, Auditor, or to any person authorised in this behalf by the Registrar or by the Director of Cooperative Audit, shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to five thousand rupees or with both.
(4B) Whoever, before, during or after the election of members of the committee or of office bearer or of delegates indulges in or adopt any corrupt practices mentioned hereunder shall be punishable with imprisonment which may extend up to six months or with fine which may extend up to 99B[five thousand] rupees or with both.
(a) fraudulently defaces or fraudulently destroys any nomination paper; or
(b) fraudulently defaces, destroys or removes any list, notice or other document affixed by or under the authority of the Cooperative Election Commission or the Electoral Officer or the Returning Officer; or
(c) fraudulently defaces or fraudulently destroys any ballot paper or the official mark or the ballot box or any identity card for election relating to any society; or
(d) supplies any forged ballot paper or forged identity card; or
(e) fraudulently put any other matter other than ballot paper in the ballot box which he is not authorised by law; or
(f) commits any criminal offence against the Electoral Officer or the Returning Officer or the Polling Personnel or other office bearers and employees of a society; or
(g) offers any gift or promise with the intention to influence members to vote in favour of him or to any other person; or
(h) compel any person to withdraw or not to withdraw from being a candidate at an election to any society.]
(5) any employer or officer who, without sufficient cause:
(a) fails to deduct any amount as required by sub-section (2) of S.37;or
(b) fails to pay to a society the amount deducted by him under that sub-section within a period of seven days from the date on which such deduction is made, shall be punishable with fine which may extend to 1[ten thousand] rupees.
(6) If any person collecting the share money for a society in formation does not deposited the same in the State Cooperative Bank, 2A[x x x x], or Postal Savings Bank or in any other bank approved by the Registrar within fourteen days of its receipt, he shall be punishable with fine which may extend to 2[ten thousand] rupees.
(7) If any person collecting the share money for a society in formation makes use of the funds so raised for conducting any trade or business in the name of the society to be registered or otherwise he shall be punishable with fine which may extend to 3[ten thousand] rupees.
6[(7A) Any Chief Executive and the Committee of the Co-operative society who contravenes the provisions of sub-section (3) of section 59 shall be punishable with fine which may extend to ten thousand rupees.]
4[(8) If any officer, employee, agent, servant of a society or any other person dealing with the society misappropriates or unauthorisedly or illegally keeps any money belonging to that society, he shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to twice the amount of money involved in the offence].
4A[(8A) If any person dishonestly or fraudulently makes or executes or cause to make or execute, any false or improper document or valuation certificate or project report or register or cause to register any fictitious company or firm or society in order to support any application for loan and thereby induces any society to deliver any loan to him or to any other person which causes loss to the society, he shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to twice the amount of money involved in the offence.
(8B) If any officer, employee, member, agent or servant of a society or any other person abets, connives or conspires the commission of an offence punishable under sub-section (8A), he shall be punishable with imprisonment for a term which may extend to three years and with fine which may extend to twice the amount of money involved in the offence.]
(9) The provisions of this section shall be without prejudice to any action that may be taken against the offenders under any other law for the time being in force.
5[(10) The Vigilance Officer appointed under section 68A shall have power of litigation and power to make complaints before a court of law in respect of offences mentioned in sub-sections (2), (3), (4), (5), 7[(6), (7) and (7A)]of this section subject to section 95.
(11) Amount of fine mentioned in sub-sections (4), (5), (6), (7), (8), (8A) and (8B) of this section shall not be met from the funds of the society.]
4BA[(1) The offences punishable under sub-sections (4A), (4B), (8), (8A) and (8B) of Section 94 shall be cognizable.]
(2) Where a sentence of fine is imposed under sub-section (8), (8A) or (8B) of section 94, the court in fixing the amount of the fine shall take into consideration the amount involved in the offence, the amount or value of the property, if any, which the accused person has obtained by committing the offence and the loss caused to the society.
(3) When a court imposes a sentence of which fine forms a part, the court may, when passing judgment, order the whole or any part of the fine recovered to be applied in the payment to the society as compensation for any loss caused by the offence.
(4) No prosecution shall be instituted under sub-sections 4BB[(2), (3), (4), (5), (6), (7) and (7A)] of section 94 without the previous sanction of the Registrar.]
(l) If the person committing any offence under this Act is a company, the Company as well as every person in charge of and responsible to the company for the conduct of its business at the time of the commission of the offences shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all the diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributed to any neglect on the part of any Director, Manager, Secretary or other Officer of the Company, such Director, Manager, Secretary or other Officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Explanation:-For the purpose of this section,--
(a) 'Company' means any body corporate and includes a firm or other association of individuals or a society or a co-operative society;
(b) 'Director' in relation to firm, means partner in the firm].
Every society shall have an address registered in accordance with the rules to which all notices and communication may be sent and shall sent to the Registrar, notice of any change thereof within thirty days of the change.
Every society shall keep a copy of this Act, the rules and its bye-laws open to inspection free of charge at all reasonable times at the registered address of the society.
(1) In exercising the functions conferred on it or him by or under this Act, the Tribunal, the Registrar, the Arbitrator or any other person deciding a dispute and the liquidator of a society shall have all the powers of a civil Court while trying a suit under the Code of Civil Procedure, 1908 (Central Act 5 of 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) receiving evidence on affidavits; and
(d) issuing commissions for examination of witnesses.
(2) In the case of any affidavit, any officer, appointed by the Tribunal, the Registrar, the arbitrator or any other person deciding a dispute or the liquidator, as the case may be, in this behalf may administer the oath to the deponent.
In cases where parties have been heard, the order, decision or award made or given by the Registrar, the Tribunal, the Cooperative Arbitration Court, the Arbitrator, the liquidator or any officer or other person under this Act, shall be pronounced on the day on which the case is finally heard or on some future day of which due notice shall be given to the parties or the date shall be pronounced openly on the day of final hearing.]
No civil or revenue Court shall have any jurisdiction in respect of any matter for which provision is made in this Act.
The Government may, if they are satisfied that it is necessary to do so in the public interest, by general or special order for reasons to be recorded, exempt any society or any class of societies from any of the provisions of this Act or direct that such provisions shall apply to such society or class of societies subject to such modifications as may be specified in the order.
Any register of list of members or shares kept by any society shall be prima facie evidence of the following particulars entered therein:--
(a) the date on which the name of any person was entered in such register or list as a member;
(b) the date on which any such person ceased to be a member.
(1) Notwithstanding anything contained in the Indian Evidence Act a copy of any entry in a book of a society regularly kept in the course of its business shall, if certified in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of such entry and shall be admitted as evidence of the matters; transactions and accounts therein recorded in the same manner and to the same extent as the original entry itself is admissible.
(2) A society may grant copies of any documents obtained and kept it in the course of its business, or of any entries in such documents; and any copy so granted shall, when certified in such manner as may be prescribed, be admissible in evidence for any purpose in the same manner and to the same extent as the original document, or the entries therein as the case may be.
(3) No officer of a society and no officer in whose office the books of a society are deposited after liquidation shall, in any legal proceedings to which the society or liquidator is not a party, be compelled to produce any of the society's books or documents, the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded except under order of the Court, the Tribunal or the arbitrator made for special cause.
Every notice or order issued or made under this Act may be served on any person, by properly addressing it to the last known place of residence or business of such person preparing and posting by registered post a letter containing the notice or order and, unless the contrary is proved, such service shall be deemed to have been effected at the time at which the letter would be delivered in the ordinary course.
No act of a society or any committee or of any officer shall be deemed to be invalid by reason only of the existence of any defect in the constitution of the society or the committee or in the appointment or election of the officer or on the ground that such officer was disqualified for his appointment:
Provided that nothing in this section shall be deemed to apply to any act done by any society or committee or officer in cases where such defect or disqualification was previously declared by a competent authority.
No suit, prosecution or other legal proceedings shall lie against any officer or the Government for anything which is in good faith done or purporting to be done under the provisions of this Act or the rules or the bye-laws.
(1) If any difficulty arises in giving effect to the provisions of this Act, as amended by the Kerala Co-operative Societies (Amendment) Act, 2023, the State Government may, by general or special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as which appear it to be necessary or expedient for removing the difficulty:
Provided that no such order shall be made after the expiry of a period of two years from the commencement of the Kerala Co-operative Societies (Amendment) Act, 2023.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before the Legislative Assembly.]
The provisions of the Companies Act, 1956 (Central Act 1 of 1956), shall not apply to any Cooperative Society.
4E[(1) It shall be the duty of every police officer, as defined in the Kerala Police Act, 1960 (5 of 1961), to assist and protect the Registrar, the Director of Cooperative Audit, and the Vigilance Officer appointed under this Act or any Officer subordinate to them in exercising the powers, duties and function conferred on them under the Act, if any such officer demands the assistance and protection of a police officer as above.]
(2) Any police officer who omits or refuses to perform any duty imposed on him under sub-section (1) shall be deemed to have committed an offence under clause (d) of Sec.41 of the Kerala Police Act, 1960 (5 of 1961).
(1) The Government may, for the whole or any part of the State and for any class of societies, after previous publication, by notification in the Gazette, make rules 5[either prospectively or retrospectively by] 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 of the following matters, namely:
(i) the applicant to whom the order refusing the registration of a society may be sent by the Registrar;
(ii) the procedure and conditions for change in the form and extent of the liability of a society;
(iii) the matters in respect of which a society shall or may make bye-laws;
(iv) the procedure to be followed for amendment of bye-laws by a society;
(v) the qualifications or disqualifications of individuals who may be admitted as members of societies;
(vi) the payment to be made and the interests to be acquired before the exercise of the right of membership;
(vii) the appointment by a society of one of its members to represent and vote on its behalf at a meeting of another society of which it is a member;
(viii) the maximum number of shares or portion of the share capital of a society which may be held by an individual member;
(ix) the procedure for the nomination of a person to whom the share or interest of a member on his death may be transferred or the value thereof may be paid;
(x) the mode in which the value of a deceased members' share shall be ascertained;
(xi) the election of members of the committee by the general body of a society;
(xii) the requisitioning of a general body meeting of a society;
(xiii) the remuneration payable to a new committee or administrator or administrators appointed by the Registrar under S.32 or S.33;
(xiv) the qualifications or disqualifications for membership of the committee of a society;
(xv) the qualifications of employees of societies;
(xvi) the prohibition against officers of a society being interested in contracts with the society;
(xvii) the matters connected with the direct and indirect partnership of the Government in societies;
(xviii) the rate at which dividend may be paid by societies;
(xix) the constitution of the Cooperative Education Fund, the payment to be made to the fund by a society out of its net profit and the mode of its investment;
(xx) the mode of investment of funds of a society;
(xxi) the objects of the reserve fund of a society and the mode of its investment;
(xxii) the mode of disposal of the reserve fund of a society on its winding up;
(xxiii) the extent to which and the conditions subject to which a society may receive deposits and loans;
(xxiv) the restrictions on transaction by a society with non members'
(xxv) the restrictions on grant of loans by a society against its shares;
(xxvi) the form and standards of fluid resources to be maintained by societies accepting deposits and granting cash credits;
(xxvii) the procedure to be followed in proceedings before the Registrar, arbitrator or other person deciding disputes;
(xxviii) the conditions subject to which the assets of a society shall vest in a liquidator and the procedure to be adopted in the winding up of a society;
(xxix) the procedure for the recovery of amounts due or payable to a society;
(xxx) the mode of making attachment before judgement;
(xxxi) the manner of registering the address of a society;
(xxxii) the account books and registers to be kept by a society, and power of the Registrar to call for any returns or to direct the accounts and books to be written up;
(xxxiii) the manner of certification of entries in the books of a society and of copies of documents kept by it in the course of its business;
(xxxiv) the statements and returns to be furnished by a society to the Registrar;
(xxxv) the restrictions on persons appearing as legal practitioners;
(xxxvi) the inspection of documents and the levy of fees for granting certified copies thereof;
(xxxvii) procedure to be followed in, and the fees for, audit and arbitration under this Act; and
(xxxviii) any other matter required or allowed by this Act; or be prescribed.
(3) Every rule made under this section shall be laid as soon as may be after it is made before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following the Legislative Assembly agree that the rule should be either modified or annulled, 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 prejudiced to the validity of anything previously done under that rule.
The Madras Cooperative Societies Act, 1932 (VI of 1932), as in force in the Malabar District referred to in sub-section (2) of S.5 of the State Reorganisation Act, 1956 (Central Act 37 of 1956) and the Travancore - Cochin Cooperative Societies Act, 1 951 (X of 1952) are repealed.
(2) Notwithstanding the repeal of the Madras Cooperative Societies Act, 1932 and the Travancore- Cochin Cooperative Societies Act, 1951 and without prejudice to the provisions of Ss. 4 and 23 of the Interpretation and General Clauses Act, 1125 (VII of 1125):
(i) all appointments, rules and orders made, notifications and notices issued, and suits and other proceedings instituted, under any or the Acts hereby repealed shall, so far as may be, be deemed to have been respectively made, issued and instituted under this Act;
(ii) any society existing in the state on the date of commencement of this Act which has been registered or deemed to be registered under any of the aforesaid repealed Acts shall be deemed to be registered under the Act, and the bye-laws of such society shall, so far as they are not inconsistent with the provisions of this Act, continue in force until altered or rescinded.
| 1[THE SCHEDULE 1] [See Section 80 (3A)] | |
| 1. | The Kerala State Co-operative Bank Ltd., Thiruvananthapuram. |
| 2. | The Kerala State Co-operative Agricultural and Rural Development Bank Ltd., Thiruvananthapuram. |
| 3. | The Kerala State Federation of Scheduled Caste / Scheduled Tribes Development Co-operative, Thiruvananthapuram. |
| 4. | The Kerala state Co-operative Housing Federation Ltd., No. 4330, Ernakulam. |
| 5. | The Kerala State Co-operative Milk Marketing Federation Ltd., Thiruvananthapuram. |
| 6. | The Kerala State Co-operative Marketing Federation Ltd., Ernakulam |
| 7. | The Kerala State Co-operative Rubber Marketing Federation Ltd., Ernakulam. |
| 8. | The Kerala Kera Karshaka Sahakarana Federation Ltd No. 4370 (Kerafed). |
| 9. | The Kerala State Co-operative Federation for Fisheries Development Ltd. (Matshyafed), Thiruvananthapuram. |
| 10. | The Kerala State Co-operative Consumer Federation Ltd., Ernakulam. |
| 11. | The Kerala State Cashew Workers Apex Industrial Co-operative Society Ltd. [IND (ST)] Kollam. |
| 12. | The Kerala State Handloom Weaver’s Co-operative Society Ltd., No. H. 232, Thiruvananthapuram. |
| 13. | The Kerala State Handicraft Apex Co-operative Society Ltd., No. H. 231, Ernakulam. |
| 14. | The Kerala State Co-operative Coir Marketing Federation Ltd., Alappuzha. |
| 15. | The Kerala State Co-operative Textile Federation Ltd., INDMT (ST) (TEXFED) Thrissur. |
| 3[16. | Kerala State Women Co-operative Federation Limited (VANITHAFED). |
| 17. | Kerala State Co-operative Tourism Federation Limited (TOURFED). |
| 18. | Kerala State Labour Co-operative Federation Limited (LABOURFED). |
| 19. | Kerala State Co-operative Hospital Federation Limited (HOSPITALFED).] |
| 2[16 | x x x x ] |
| 2[17 | x x x x ] |
| 2[18 | x x x x ] |
| 2[19 | x x x x ] |
| 2[20 | x x x x ] |
| 2[21 | x x x x ] |
| 2[22 | x x x x ] |
| 2[23 | x x x x ] |
| 2[24 | x x x x ] |
| 2[25 | x x x x ] |
| 2[26 | x x x x ] |
| 2[27 | x x x x ] |
| 2[28 | x x x x ] |
| 2[29 | x x x x ] |
1. Schedule shall be numbered by Act 8 of 2013 w.e.f. 14-02-2013.
2. Serial Numbers 16 to 29 and entries against it in Schedule I are omitted by Act 1 of 2019.
3. Added by ACT 9 OF 2024 published in K.G.Ext. No.1829 dt. 07/06/2024 (w.e.f. 07/06/2024).
1[Schedule II [See clause (eccc) of Section 2] | |
Co-operative Principles | |
1. | Open and Voluntary membership |
2. | Democratic Member Control |
3. | Member Economic Participation |
4. | Autonomy and Independence |
5. | Education, Training and Information |
| 6. | Co-operation among Co-operatives |
7. | Concern for community |
1. Inserted by Act 8 of 2013 w.e.f. 14-02-2013.
SCHEDULE III [See sub-section (4) of Section 69] | |||
| Description of Dispute or Suit | Period of limitation | Time from which period begins to run | |
1. | For money receivable for money lent | Three years | when repayment period is over |
2. | For money lent under an agreement that it shall be payable on demand | Three years | when loan is made |
3. | For money deposited under an agreement that it shall be payable on demand, including money for a member or a customer in the hands of society | Three years | when demand is made |
4. | For the price of work done by the parties to the dispute, where no time has been fixed for payment | Three years | when work is done |
5. | By a surety against the principal debtor | Three years | when the surety pays the creditor |
6. | By a surety against a co-surety | Three years | when the surety pays anything in excess of his own share |
7. | For the balance of money advanced in payment of goods to be delivered | Three years | when goods ought to be delivered |
8. | For the price of goods, goods sold and delivered where no fixed period of credit is agreed upon | Three years | The date of the delivery of the goods |
9. | For the price of goods, goods sold and delivered to be paid for after the expiry of a fixed period of credit | Three years | when period of credit expires.] |
ACT 9 OF 2024 |
THE KERALA CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2023 |
An Act further to amend the Kerala Co-operative Societies Act, 1969. (dc) “consortium” means a formal association of co-operative societies formed based on a common objective for establishing a new entity for raising funds for providing financial assistance for public purpose with the approval of State Government;”. “(od) “Primary Co-operative Society” means a society having jurisdiction over any specified area in one revenue district or more than one districts in the State and having individuals, other societies, State Government and Local Self Government as its members;”. (b) in clause (e) for the words and symbols “, he may register the society and its bye-laws within a period of ninety days from the date of receipt of the application.”, the symbol and word “; and” shall be substituted. (iii) in sub-section (2) , after the words and symbol “societies may,”, the words and symbol “with the prior approval of the Registrar,” shall be inserted and for the words “two third”, the word “simple” shall be substituted. (2B) Any society/bank which had availed any financial assistance from Government, shall include nominees of Government of Kerala in the board of directors of the subsidiary institutions, as may be prescribed. (1C) The Registrar shall conduct audit, inspection and verification of records in such societies, in the manner as may be prescribed. “(2) If the general body of a society has decided to enhance the share value, the right of a member to continue in membership will remain for a period of five years from the date of enhancement of value of share but shall be allowed to exercise his rights as a member only upon remitting the enhanced value of the shares held.”. (iii) in sub-section (1C), for the words “ten thousand rupees”, the words “twenty- five thousand rupees” shall be substituted. Provided also that such co-opted members of a co-operative society shall also be members of the board and such members shall be excluded for the purpose of counting the total number of directors specified in sub-section (1A): (ii) In sub-section (2) of section 28B, for the words “Special Secretary to Government” the words and symbol “Special Secretary to Government, Law Department” shall be substituted. (b) in clause (d), for the words “who need not be members of the society”, the words “who shall be from among the members of the society” shall be substituted and the third proviso and Explanation I shall be omitted and in Explanation II the number “II” shall be deleted; (3) A technical cell with professional and technical team as prescribed shall be established in the office of the Registrar, in consultation with the Government, to inspect the security, reliability, data protection and other aspects connected with software and hardware.”. (2) There shall be earmarked to the fund,-- (i) in sub-section (4), after the first proviso, the following proviso shall be added, namely:-- 33. Amendment of section 64.-- In section 64 of the principal Act,-- “(9) If the result of the audit held under this section discloses any defect in the working of the society, the Committee shall take steps to rectify the defects and irregularities pointed out in the audit report, if any, and place the audit report along with the action taken report before the general body meeting to be held every year and explain therein the said defects or the irregularities. The Committee shall continue to take steps for rectification of all the defects and the irregularities in the audit report and appraise the general body meetings every year till all the defects and the irregularities are rectified. The Committee shall send a report of action taken to the Director of Co-operative Audit and to the Registrar within fifteen days from the date of the general body meeting.”. “(d) The person/persons related to or involved in the inquiry shall be issued a notice, indicating the matter of inquiry and he/they shall be provided an opportunity of being heard, with proper notice by registered post or in person.”. (2B) The report of such inspections shall be communicated in writing to the apex, central and federal societies and all primary co-operative societies concerned, within a period of thirty days and the Committee and the chief executive of the society concerned shall be under an obligation to file a para-wise satisfactory compliance report before the Registrar within a period of forty five days from the date of such communication.”. (b) the following proviso shall be added, namely:-- “(2) The Registrar shall suggest remedial action to Government to restructure the activities, if necessary, based on the report of inspection.". 45. Amendment of section 76.-- In section 76 of the principal Act, after the words, figures and bracket “sub-section (2) of section 68”, the words, figures and letter “or every order of the Ombudsman, provided under section 69A, or an order” shall be inserted. “(1) Notwithstanding anything contained in this Act or the rules made thereunder or in the bye-laws of any society relating to the recruitment of officers and servants thereof, but subject to section 80BB, the Government shall, by notification in the Gazette, constitute a Co-operative Examination Board for the conduct of written examination for all direct recruitment to the posts of and above the category of Junior Clerks in all co-operative societies, Boards and other institutions under the control of the Registrar: 53. Amendment of section 91.-- In section 91 of the principal Act, in clause (c) of sub-section (1), before the words “to spread”, the words “to establish educational institutions and” shall be inserted. 55. Amendment of section 95.-- In sub-section (4) of section 95 of the principal Act, for the brackets, figures, symbols and word “(2), (3), (4), (5), (6) and (7)”, the brackets, figures, symbols, word and letter “(2), (3), (4), (5), (6), (7) and (7A)” shall be substituted. 56. Insertion of new section 106A.-- In the principal Act, after section 106, the following section shall be inserted, namely: -- |
GOVERNMENT OF KERALA Co-operation (B) Department ORDER | |
| G.O.(P)No.20/2025/Co-op | Dated, Thiruvananthapuram 1st March, 2025 17th Kumbham, 1200. |
S. R. O. No. 240/2025 WHEREAS, section 70A of the Kerala Co-operative Societies Act, 1969 (21 of 1969) as it existed before the commencement of the Kerala Cooperative Societies (Amendment) Act, 2023 (9 of 2024), read with sub-rule (4) of rule 67 of the Kerala Co-operative Societies Rules, 1969, provides that the presiding officer of the Co-operative Arbitration Court shall be an Advocate having not less than seven years bar experience and who shall be appointed by Government for a period of three years; AND WHEREAS, sub-section (2) of section 70A of the said Act was amended as per the Kerala Co-operative Societies (Amendment) Act, 2023 (9 of 2024) to the effect that the presiding officer of the Arbitration Court shall be an officer of and above the rank of a Munsiff-Magistrate of the judicial service and the said provision came into force on 7th June, 2024; AND WHEREAS, Government as per Notification issued under G.O. (P) No.232/2024/Co-op. dated 31st December, 2024 and published as S.R.O. No.1203/2024 in the Kerala Gazette Extraordinary No. 4134 dated 31st December, 2024 have issued the Kerala Co-operative Societies (Second Amendment) Rules, 2024 for effecting the amendment made to the Kerala Cooperative Societies Act, 1969; AND WHEREAS, Government has taken steps to appoint the presiding officer of the Co-operative Arbitration Court as per the amended provisions of the Act, in consultation with the Hon’ble High Court of Kerala; AND WHEREAS, the presiding officer of the Co-operative Arbitration Court (Northern), who was appointed in pursuance of Notification issued under G.O.(P) No.254/2023/Co-op. dated 26th December, 2023 and published as S.R.O. No.1388/2023 in the Kerala Gazette Extraordinary No.4190 dated 26th December, 2023 and the presiding officer of the Co-operative Arbitration Court (Southern), appointed in pursuance of Notification issued under G.O.(P) No.45/2024/Co-op. Dated 7th March, 2024 and published as S.R.O. No.253/2024 in the Kerala Gazette Extraordinary No.884 dated 7th March, 2024 continued to exercise their official duties even after 7th June, 2024, the date of commencement of the Kerala Co-operative Societies (Amendment) Act, 2023 till 23rd June, 2024 and 8th September, 2024 respectively; AND WHEREAS, difficulties have arisen in giving effect to the provisions of sub-section (2) of section 70A of the Act, in so far as it relates to the uninterrupted functioning of the Co-operative Arbitration Courts; NOW, THEREFORE, in exercise of powers conferred by section 106A of the Kerala Co-operative Societies Act, 1969 (21 of 1969), the Government of Kerala hereby makes the following order to remove the difficulties, namely:-- 1. Short title and commencement.-- (1) This order may be called the Kerala Co-operative Arbitration Court (Removal of Difficulties) Order, 2025. (2) It shall come into force at once. 2. Modifications.-- In sub-section (2) of section 70A of the Kerala Cooperative Societies Act, 1969, the following Explanation shall be inserted, namely:-- "Explanation.-- For the removal of doubts, it is hereby clarified that the duties performed by the presiding officers of the Co-operative Arbitration Court (Northern) and the Co-operative Arbitration Court (Southern), who were in office at the time of coming into force of the Kerala Co-operative Societies (Amendment) Act, 2023, for the periods from 7th June, 2024 to 23rd June, 2024 and from 7th June, 2024 to 8th September, 2024 respectively shall be deemed to have been done under this Act.". Explanatory Note (This does not form part of the Order, but is intended to indicate its general purport.) Sub-section (2) of section 70A of the Kerala Co-operative Societies Act, 1969 as amended by the Kerala Co-operative Societies (Amendment) Act, 2023 provides that, the presiding officer of the Arbitration Court shall be an officer of and above the rank of a Munsiff - Magistrate in the Judicial Service and the said provision came into force on 7th June, 2024. As per section 70A of the Act as it existed before the commencement of the Kerala Co-operative Societies (Amendment) Act, 2023 (9 of 2024), read with sub-rule (4) of rule 67 of the Kerala Co-operative Societies Rules, 1969, the presiding officer of the Co-operative Arbitration Court shall be an Advocate having not less than 7 years bar experience and who shall be appointed by Government for a period of three years. The presiding officer of the Co-operative Arbitration Court (Northern), who was appointed in pursuance of Notification issued under G.O. (P) No.254/2023/Co-op. dated 26th December, 2023 and published as S.R.O. No.1388/2023 in the Kerala Gazette Extraordinary No.4190 dated 26th December, 2023 and the presiding officer of the Co-operative Arbitration Court (Southern), appointed in pursuance of Notification issued under G.O.(P) No.45/2024/Co-op. dated 5th March, 2024 and published as S.R.O. No.253/2024 in the Kerala Gazette Extraordinary No.884 dated 7th March, 2024 have continued to exercise their official duties even after 7th June, 2024, the date of commencement of the Kerala Co-operative Societies (Amendment) Act, 2023 till 23rd June, 2024 and 8th September, 2024 respectively. Difficulties have arisen in giving effect to the amended provisions of subsection (2) of section 70A of the Act, in so far as it relates to the functioning of the Co- operative Arbitration Courts. Now, the Government have decided to remove the difficulty in this regard by issuing an order invoking the provisions of section 106A of the said Act. This order is intended to achieve the above object. |
GOVERNMENT OF KERALA Co-operation (B) Department ORDER | |
| G.O.(P)No.158/2025/Co op | Dated, Thiruvananthapuram 13th November, 2025 27th Thulam, 1201 |
S. R. O. No. 1306/2025 WHEREAS, under sub-section (1) of section 28 or sub-section (3) of section 88 or sub-section (6) of section 89 of the Kerala Co-operative Societies Act, 1969 (21 of 1969), as the case may be, the general body of a society shall constitute a committee for a period of five years in accordance with the bye-laws and entrust the management of the affairs of the Co-operative Society, the Circle Co-operative Unions and the State Co-operative Union respectively to such Committee; AND WHEREAS, rule 35A of the Kerala Co-operative Societies Rules, 1969 prescribes the procedure regarding conduct of election to the committee of societies by the State Co-operative Election Commission, Rule 129 of Kerala Co-operative Societies Rule, 1969 prescribes the procedure regarding conduct of elections to the committee of Circle Co-operative Unions and Rule 151 of Kerala Co-operative Societies Rule, 1969 prescribes the procedure regarding conduct of elections to the Committee of State Co-operative Unions and by virtue of the said rule, it is the duty of the officers of the Co-operation Department to make arrangements for a free and fair election to the Cooperative Society; AND WHEREAS, the Registrar of Co-operative Societies has reported that in view of the General Election to the Local Bodies in the State, it may not be possible for the officers of the Co-operative Department of the State, to function as Electoral Officers and Returning Officers to conduct election to the committee of Co-operative Societies, Circle Co-operative Unions and State Co-operative Union, as provided in rule 35A, 129 and 151 of the Kerala Co-operative Societies Rules, 1969, as they have to attend the duties in connection with the general election and has requested to extend the term of the committee of the Co-operative Societies, Circle Co-operative Union and State Co-operative Union where election are due for a period upto 90 days; AND WHEREAS, the Government are of the opinion that in the context of the general election to the Local Bodies in the State as regards the State of Kerala is concerned, the members of the Co-operative Societies, Circle Cooperative Unions and State Co-operative Union are not in a position to participate in the election and the department officers are not in a position to function as Electoral Officers and Returning Officers and to conduct elections to the committee of Co-operative Societies as provided in rule 35A, 129 and 151 of the Kerala Co-operative Societies Rule, 1969: AND WHEREAS, the Government is convinced that in the said circumstances there would be practical difficulty to conduct elections in Cooperative Societies, Circle Co-operative Unions and State Co-operative Union as provided under rule 35A, 129 and 151 of the Kerala Co-operative Societies Rules, 1969; AND WHEREAS, the Government have considered the matter in detail and are satisfied that for the administrative convenience and in public interest, it is necessary to extend the term of the Committees of the Co-operative Societies except Kerala State Co operative Bank, Circle Co-operative Unions and State Co-operative Union where election are due for the period from 1011-2025 to 07-02-2026 or where the election process has already been started, the Co-operative Election Commission will initiate steps to conduct elections to Societies those term expired after 07-02-2026; AND WHEREAS wherever there is specific direction of Hon'ble High Court to conduct election, the matter may be brought to the notice of the Hon'ble High Court; NOW, THEREFORE, in exercise of the powers conferred by section 101 of the Kerala Co-operative Societies Act, 1969 (21 of 1969), the Government of Kerala hereby direct that the provisions of sub-section (1) of section 28 of the said Act, shall apply to all Co-operative Societies except, Kerala State Co operative Bank, sub-section (3) of section 88 shall apply to all Circle Cooperative Union and sub-section (6) of section 89 shall apply to State Cooperative Union where election are due for a period from 10-11-2025 to 0702-2026 or where the process of elections have already been started but not been completed with the modification of substituting the words "five years and 90 days" for the words "five years", the co-operative election commission take steps for conducting election in the case of the societies after 07-02-2026 as per the provisions of Kerala Co-operative Societies Act, 1969.
| |
Explanatory Note (This does not form part of the order, but is intended to indicate its general purport.) It is the duty of the Officers of the Co-operation Department under rule 35A,129 and 151 of the Kerala Co-operative Societies Rules, 1969 to arrange for the conduct of free and fair election to the Co-operative Societies, Circle Co-operative Unions and State Co-operative Union. Since the officers of the Co-operation Department will be engaged as the Electoral/Returning Officers for conducting election to the Local Bodies scheduled on 09-12-2025 and 1112-2025, their services may not be readily available for conducting election to the Co-operative Societies, Circle Co-operative Union and State Co-operative Union. Therefore, the Government have considered the matter in detail and are of the view that it is necessary in public interest, to extend the term of Committee of the Co-operative Societies except Kerala State Co operative Bank, Circle Co-operative Union and State Co-operative Union in the State for a period of 90 days from 10.11.2025 to 07.02.2026 in respect of those Societies and Co-operative Union where election to Committees are due or where the election process has already started, but not been completed on conditions that wherever there is a specific direction of the Hon'ble High Court to conduct election, the matter shall be brought to the notice of the Hon'ble High Court. This is for avoiding administrative vacuum in the said Co-operative Societies and Co-operative Unions. This order is intended to achieve the above object. |
(1) A Cooperative society shall be registered only with limited liability;
Provided that this sub-section will not affect the rights and liabilities of societies with unlimited liability which are in existence at the time of commencement of this Act.
(2) The word "limited" or its equivalent in any Indian language shall be the last word in the name of a society registered under this Act with limited liability.
(1) An application for the registration of a Cooperative society shall be made to the Registrar in such forms as may be prescribed and the applicant shall furnish to him such information about the society as he may require.
(2) Every such application shall conform to the following requirements, namely:-
(a) the application shall be accompanied by three copies of proposed bye-laws of the society;
(b) where all the applicants are individuals, the number of applicants shall not be less than twenty-five each of such persons being a member of a different family
(c) the application shall be signed by every one of the applicant who is an individual 21B[as specified under clause (a) of sub-section (1) of section 16] and by a person duly authorised on behalf of the Government or any society or other body of persons which is an applicant.
Explanation.-- For the purpose of this clause, the expression "member of a family" means wife, husband, father, mother, grand father, grand mother, step father, step mother, son, daughter, step son, stepdaughter, grandson, grand daughter, brother, sister, half brother, half sister and wife of brother or half brother.
(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 area of operation of the proposed society and the area of operation of another society of similar type do not overlap;
(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; 4[x x x x]
(e) that the proposed society complies with the requirements of sound business 1[; and ]
5[(f) that the proposed credit societies have collected two lakhs and fifty thousand rupees and non-credit co-operative societies have collected one lakh rupees as the minimum share capital;
he may register the society and its bye-laws within a period of sixty days from the date of receipt of the application:
Provided that the requirement of minimum share capital in this clause shall not be applicable to co-operative societies of Scheduled Castes/ Scheduled Tribes, Fisheries, Vanitha, Transgenders, Primary Anand Pattern Milk Co-operative Societies, Schools, Colleges and Traditional Industrial co-operative societies.]
(2) Where the Registrar refuses to register a society, he shall communicate the order of refusal together with the reasons therefor within 6[fifteen days] of such order to such of the applicants as may be prescribed.
(3) An application for registration of a society shall be disposed of by the Registrar 2[within 7[sixty days]] from the date of receipt of the application.
3[(4) Where an application for registration of a society is not disposed of within the time specified in sub-section (3), the applicant may make representation --
(a) before the Registrar, if the application for registration is made to a person on whom the powers of the Registrar is conferred under sub-section (2) of Section 3, or
(b) before the Government, if the application for registration is made before the Registrar,
and the Registrar or the Government, as the case may be, shall within sixty days from the date of receipt of such representation, issue directions, to the authority concerned, to take appropriate decision on the application for registration and the authority concerned shall comply with such directions.]
24A[(1)] Where a Cooperative society is registered under this Act, the Registrar shall issue a certificate of registration signed and sealed by him, which shall be conclusive evidence that the said society is duly registered under this Act.
24B[(2) Notwithstanding anything contained in sub-section (1), where the Registrar is satisfied that the original registration certificate is irrecoverably lost and a duplicate certificate could not be issued as the files or records regarding the registration of the co-operative society was lost, after registration, the Registrar shall issue a certificate stating the registration number and date of registration of a co-operative society, on the basis of the details available in the audit certificate and the records available with the Registrar, signed and sealed by him, which shall be conclusive proof that the said society is duly registered and it shall be treated as a certificate of registration.]
(1) Every Primary Cooperative Society or Central Cooperative Society may within such time and in such manner, as may be prescribed, apply for affiliation to the concerned Apex society or Central Society as the case may be.
(2) Where the Apex Society or Central Society does not, within 3[forty five days] from the date of receipt of the application for affiliation, determine whether such affiliation should be given or not, such affiliation shall be deemed to have been given to the applicant society from the date on which the said period of 3[forty five days] expires.
(3) When the Apex or Central Society, as the case may be, rejects an application for affiliation under sub-section (1), the aggrieved society may file an appeal before the Registrar against such rejection within thirty days from the date of receipt of the order of rejection and the Registrar shall dispose the appeal within sixty days from the date of appeal.]
2[(4) Notwithstanding anything contained in this Act or the rules made thereunder or the bye-laws of a Regional Cooperative Milk Producers' Union, the Anand Pattern Milk Cooperative Societies having a regular elected Managing Committee and doing the business of milk procurement and sales within the area of operation of the Regional Cooperative Milk Producers' Union shall be admitted as members of the Regional Cooperative Milk Producers' Union.]
The registration of a 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 contracts, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it was constituted.
25A[Provided that the Government and the Registrar shall have power to regulate 25B[x x x x] the working of a society for the economic and social betterment of its members and the general public.]
Every co-operative society,--
(a) shall paint or affix its name, register number and the address of its registered office and keep the same painted or affixed in conspicuous position, in letters easily legible to members in vernacular language and in English language, on the outside of every office or place in which its business is carried on;
(b) shall have its name engraved in legible characters on its seal with common emblem; and
(c) shall have its name and address of its registered office, mentioned in legible characters in all its business letters in all its bill heads and letter paper, and in all its notices and other official publications, and also have its name so mentioned in all bills of exchange, hundies, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the co-operative society, and in all bills of parcels, invoices, receipts and letters of credit of the co-operative society.]
(1) A society may, by an amendment of its bye-laws, change its name.
(2) Where a society changes its name, the Registrar shall enter the new name in the register of Cooperative societies in the place of the former name and shall amend the certificate of registration accordingly.
(3) The change of name of a society shall not affect any rights or obligations of the society or render defective any legal proceedings by or against it; and any legal proceedings which might have been continued or commenced by or against the society by its former name may be continued or commenced by its new name.
(1) Subject to the provisions of this Act and the rules a society may, by an amendment of its bye-laws, change the form or extent of its liability.
(2) When a society has passed a resolution to change the form or extent of its liability it shall give thereof in writing to all its members and creditors and notwithstanding the provisions of S.24 or any bye-laws or contract to the contrary, any member or creditor shall, during a period of two months from the date of service of notice upon him, have the option of withdrawing his shares, deposits of 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 given his assent to the change.
(4) an amendment of the bye-laws of a society changing the form or extent of its liability shall not be registered or take effect until either-
(a) the assent thereto all members and creditors has been given or deemed to have been given; 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) No amendment to any bye-law of a society shall be valid unless such amendment has been registered under this Act.
(2) The provisions of section 7 specifying the conditions to be satisfied before registration of bye-laws of a society by the Registrar shall, mutatis mutandis, apply also to the registration of amendments to bye-laws;
Provided that the Registrar shall before registering an amendment of any bye-law consult-
(a) The State Cooperative Union if the bye-laws to be amended are that of an Apex society or a Central society; or
(b) The circle Cooperative union if the bye-laws that are to be amended are that of any other society; and
(c) The financing bank if the society is indebted to the financing bank.
(3) The Registrar shall forward to the society a copy of the registered amendment together with a certificate of registration signed and sealed by him, and such certificate shall be conclusive evidence that the amendment has been duly registered.
(4) Where the Registrar refuses to register amendment of the bye-laws of a society, he shall communicate the order of refusal, together with the reasons thereof, within seven days of the order to the society.
25D[(4A) An application to register an amendment of the bye-laws of a society shall be disposed of by the Registrar, within ninety days from the date of receipt of the same.
(4B) Where an application to register an amendment of the bye-laws of a society is not disposed of within the time specified in sub-section (4A), the society may make a representation;
(a) before the Registrar of Cooperative Societies, if the application to register the amendment of the bye-laws is made to a person on whom the powers of the Registrar is conferred under sub-section (2) of S.3; or
(b) before the Government if the application for registration of the amendment of the bye-laws is made before the Registrar, and the Registrar or the Government, as the case may be, shall within sixty days from the date of receipt of such representation, issue directions to the authority concerned, to dispose of the same.]
26[(5) x x x x
(6) x x x x
(7) x x x x]
An amendment of the bye-laws of 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.
Every co-operative society shall make its bye-laws consistent with the provisions of this Act and rules and no provision in the bye-laws of a co-operative society shall be contrary to the provisions of the Act and the Rules.]
(1) A society may, 4[with the prior approval of the Registrar,] 1[x x x x] by a resolution passed by a 5[simple] majority of the members present and voting at a general body meeting of the society;
(a) transfer its assets and liabilities in whole or in part to any other society;
(b) divide itself into two or more societies.
(2) Any two or more societies may 1[x x x x] 6[with the prior approval of the Registrar,] by a resolution passed by a 5[simple] majority of the members present and voting at a general body meeting of each such society, amalgamate themselves and form a new society
7[(2A) Notwithstanding anything to the contrary contained in any other law in force or in the rules or in the bye-laws of any society, one or more societies may merge with any other society by a resolution passed by simple majority at the general body meeting of each such society:
Provided that before effecting such merger a resolution of the society with whom it has to merge shall give its approval permitting such merger by a resolution passed by simple majority of the general body meeting of such society.]
(3) The resolution of a society under sub-section (1) 8[,sub-section (2) or sub-section (2A)] shall contain all particulars of the 9[amalgamation, merger, transfer or division], as the case may be.
(4) When a society has passed any such resolution, it shall give notice thereof in writing to all its members and creditors and, notwithstanding the provisions of section 24 or any bye-law or contract to the contrary, any member or creditor shall, within a period of two months 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.
(5) Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have given his assent to the proposals contained in the resolution.
(6) A resolution passed by a society under this section shall not take effect until either-
(a) the assent thereto of all the members and creditors has been given or deemed to have been given; 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 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.
10[(8) Detailed scheme of transfer of assets and liabilities and the scheme of merger, as the case may be, prepared by the society and approved by the Registrar as per sub-section (1), sub-section (2) or sub-section (2A) shall be published by the Registrar and the Society.]
2[(8) x x x x
(9) x x x x]
(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, the District Cooperative Banks may by a resolution passed by a simple majority of the members present and voting at the special general body meeting of the members, transfer its assets and liabilities in whole to the Kerala State Cooperative Bank and such transfer shall take effect from the date on which the Registrar approves the resolution.
(2) The resolution shall contain particulars of the assets and liabilities to be transferred.
(3) When a District Cooperative Bank has passed any such resolution, under sub- section (1), it shall give notice thereof in writing to all its members within seven days from the date of resolution, notwithstanding anything contained in the provisions of Section 24 or any rules or any bye-laws and sub-rules or any contract to the contrary, any member shall, within a period of thirty days from the date of issuance of the said notice, have the option of withdrawing his shares, deposits or closing loans, as the case may be:
Provided that any other debtor or creditor shall be informed of such resolution through publication of notice in two leading daily newspapers in vernacular language within seven days from the date of resolution that they have the option to withdraw deposit, loans, as the case may be, within a period of thirty days from the date of publication of notice.
(4) Any member or creditor or debtor who does not exercise his option within the period specified in sub-section (3) shall be deemed to have given his assent to the proposals contained in the resolution.
(5) On and from the date of approval of transfer of assets and liabilities of each District Cooperative Bank by the Registrar, all the assets and liabilities as it stood immediately before the transfer shall without any further act, instrument or deed, stand transferred to and vested in the Kerala State Cooperative Bank.
(6) On and from the date of approval of transfer of assets and liabilities of each of the District Cooperative Bank by the Registrar, all pending suits or legal proceedings by or against such Banks shall be continued by the Kerala State Cooperative Bank.]
(1) A co-operative society may by a resolution passed at general body meeting by a majority of members present and voting, promote, one or more subsidiary institutions, which may be registered under any law for the time being in force, for the furtherance of its stated objects with the prior approval of Registrar.
(2) Any subsidiary institution promoted under sub-section (1) shall exist only as long as the general body of the co-operative society deems its existence necessary; Provided that a co-operative society, while promoting such a subsidiary institution shall not transfer or assign its substantive part of business or activities undertaken in furtherance of its stated objects to such subsidiary institutions.
Explanation.-- For the purpose of this section,--
(a) An institution shall be deemed to be a subsidiary institution where the co-operative society,--
(i) controls the management or board of directors or members of governing body of such institutions; or
(ii) holds more than half in nominal value of equity shares of such institutions.
(b) a subsidiary institution shall not include a partnership firm.
3[(2A) The share capital contribution or financial assistance to the subsidiary institution shall be met from the balance net profit of the society, as provided under sub-section (2) of section 56 and any further investment in subsidiary institutions from the society/bank other than share capital shall be released as loan as per the norms as may be specified by the Registrar.
(2B) Any society/bank which had availed any financial assistance from Government, shall include nominees of Government of Kerala in the board of directors of the subsidiary institutions, as may be prescribed.
(2C) The Registrar shall conduct audit, inspection and verification of records in the subsidiary institutions, as may be prescribed.
(2D) Any share capital contribution or financial assistance to the subsidiary institutions from the society/bank shall be allotted with the prior approval of the Registrar based on the resolution passed by the general body of the society/bank concerned.
(2E) Transferring funds or leasing of assets of the society to its subsidiary institutions shall be made with the prior approval of the Government based on the resolution passed by the general body of the society/bank.]
(3) The annual reports and audited accounts of any such subsidiary institution shall be placed each year before general body meeting of the promoting co-operative society.]
4[(4) Notwithstanding anything contained in the foregoing provisions of this section, no subsidiary institution shall be promoted under this section on or after the commencement of the Kerala Co-operative Societies (Amendment) Act, 2023 and the existing subsidiary institutions registered and working immediately before the commencement of the Kerala Co-operative Societies (Amendment) Act, 2023 shall continue its operation subject to the foregoing provisions in sub-sections (1) to (3) and in the manner as may be prescribed.]
(1) Any two or more co-operative societies with prior permission of the Registrar, may by resolution passed by the majority of the members present and voting at a general body meeting of each of such co-operative societies, may enter into partnership to carry out any one or more specific business. Written notice of the general body meeting shall be given to each member before fifteen clear days of such meeting.
2[(1A) Detailed project report for the formation of such partnership of co-operative societies shall be prepared by the societies concerned and the same shall be submitted to the general bodies of such societies for approval.
(1B) The project report approved by the general bodies of the societies shall be submitted to the Government through the Registrar for the approval of the formation of such partnership of co-operative societies, in the manner as may be prescribed.
(1C) The Registrar shall conduct audit, inspection and verification of records in such societies, in the manner as may be prescribed.
(1D) In the case of raising of fund for such partnership prior sanction of the Government shall be obtained by the partnership of co-operative societies, in the manner as may be prescribed.]
(2) The partnership shall be in the interest of the members of the co-operative society or the co-operative societies or shall be in the public interest or shall be in the interest of the co-operative movement in general and it does not mean to be a partnership firm registered under Indian Partnership Act, 1932 (Central Act 9 of 1932).]
(1) Where the whole of the assets and liabilities of a society are transferred to another society in accordance with the provisions of section 14, the registration of the first mentioned society shall stand cancelled and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more societies are amalgamated into a new 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 amalgamating society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a society is divided into two or more societies in accordance with the provisions of section 14, 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.
1[(4) Where one or more societies are merged with another society in accordance with the provisions of section 14, the registration of each of the merging society shall stand cancelled and shall be deemed to have been dissolved and shall cease to exist as a corporate body.]
(1) No person shall be admitted as a member of a society except the following, namely:--
(a) an individual--
(i) Who has attained the age of eighteen years;
Provided that this sub-clause shall not apply in the case of a society formed exclusively for the benefit of the students of any school or college.
(ii) Who is not of unsound mind;
(iii) Who is a resident within, or is in occupation of land in the are of operation of the society;
29AB[(ia) in the case of Youth Co-operative Societies, who has not attained the age of forty-five years:
Provided that on attaining forty-five years, the membership of such members shall cease to exist and they shall become associate members of the society.]
(b) any other society;
27[(ba) local self government]
(c) the Government; and
(d) any body of persons, whether incorporated or not and whether or not established by or under any law, if such body is approved by the Government in this behalf by general or special order;
Provided that in a society formed for the promotion of the economic interest of its members through a specified activity no person other than who is likely to be benefited directly by such activity may be admitted as a member of such society unless such admission is permitted specifically by rules.
Provided further that where a society is formed exclusively for the benefit of persons engaged in any particular industry, no person who is not an actual worker in the industry shall be admitted in excess of such percentage of the total membership of the society as may be prescribed.
Provided also that the Coffee Board, the Rubber Board and any other statutory or non-statutory Board, committee or Corporation constituted for the purpose of the development of an industry, may be admitted as a member of a society engaged in marketing and processing of the products of the industry concerned and formed for the workers and growers of such industry, so however that no such Board, Committee or Corporation shall be admitted as a member of a Cooperative credit society.
28[Provided also that in the case of hospital Cooperative societies, industrial and commercial establishments and other organisations registered under any other law may be admitted as members.
Explanation.-- For the purpose of this sub-section hospital Cooperative society means a society, the main object of which is to run a hospital or to conduct medical or paramedical courses or to run medical shops;]
29AA[Provided also that in the case of Anand Pattern Milk Cooperative Societies, no dairy farmers other than those who own one or more milch cows or buffaloes and residing within the area of operation of the society or running dairy farms in their own land or in leased land within the area of operation of the society and pouring milk not less than ninety days within a period of one hundred and twenty days in a year to the society, shall be admitted as members.]
(2) Membership in any society other than a society formed for the benefit of the Scheduled castes or the Scheduled Tribes shall not be refused merely on the ground that a person belongs or does not belong to a particular religion, race, community, caste, sect or denomination. A decision on an application for membership shall be taken within two months from the date of receipt of the application.
29[(2A) Where an application for membership in a society is not disposed of within the time specified in sub-section (2), the Registrar shall be bound, on the written request of the applicant, to determine whether such membership shall be given or not;
(2B) Where the Registrar does not, within one month of the date of receipt of such written request, determine whether such membership should be given, or not, the applicant may make a representation,--
(a) before the Registrar, if the request referred to sub-section (2A) is made to a person on whom, the powers of the Registrar is conferred under sub-section (2) of S.3; or
(b) before the Government, if the request referred to in sub section (2A) is made to the Registrar,
and the Registrar or the Government, as the case may be shall, within thirty days from the date of receipt of such representation, determine whether such membership should be given or not.]
(3) Where a person is refused admission as a member in a society, the decision refusing admission together with the reasons thereof shall be communicated by the society to that person within a period of fifteen days from the date of the decision.
(1) No member shall be eligible to continue to be an active member of an Anand Pattern Milk Cooperative Society if he/she-
(a) is not pouring milk not less than five hundred litres to the society for one hundred and eighty days during the preceding twelve months; and
(b) is not owning at least one milch cow or buffalo, by rearing them in a cattle shed or in a farm set up either in his/her own land or in a leased land, within the area of operation of the society.
(2) Only an active member referred to in sub-section (1) shall be eligible to become a member of the committee of an Anand Pattern Milk Cooperative Society and to continue as a member of such committee.]
(1) Any member of a society, who has acted adversely to the interest of the society 29B[or has failed to comply with the provisions of the bye-laws], may be expelled upon a resolution of the general body passed at a special meeting convened for the purpose by the votes of not less than two-thirds of the total number of members present and voting at the meeting.
(2) No member shall be expelled under sub-section (1) without being given an opportunity of making his representation.
(3) A copy of the resolution expelling a member shall be communicated to the member within a period of fifteen days from the date of passing of the resolution.
29C[(4) The expulsion from membership may involve forfeiture of shares held by the member.
(5) No member of the society who has been expelled under sub-section (1) shall be eligible for re-admission as a member of that society, for a period of one year from the date of such expulsion.]
(1) A society may admit any individual as a nominal or associate member.
30[x x x x]
31[x x x x]
32[Provided 33[x x x x] that a Hospital Cooperative Society may admit any other society as nominal or associate member.
Explanation.-- The term 'Hospital Cooperative Society' shall have the same meaning as in the Explanation to the fourth proviso to sub-section (1) of S.16]
33AA[x x x x]
33AB[x x x x]
(2) Nominal or associate member shall not be entitled to any share, in any form whatsoever, in the assets or profits of the society or to be elected to the committee of a society.
33AC[(3) Save as provided in this section, a nominal or associate member shall have such privileges and rights of a member and be eligible to enjoy various services including credit facilities provided by the societies and be subject to such liabilities of a member, as may be specified in the bye-laws of the society.]
1[(1)]No member of a society shall exercise the rights of a member unless he has made such payments to the society in respect of membership or has acquired such interest in the society, as may be prescribed by the rules or the bye-laws.
2[(2) If the general body of a society has decided to enhance the share value, the right of a member to continue in membership will remain for a period of five years from the date of enhancement of value of share but shall be allowed to exercise his rights as a member only upon remitting the enhanced value of the shares held.]
Every society shall keep open to inspection for its members, free of charge, at all reasonable times, at the registered address of the society.
(a) an up-to-date copy of the Kerala Cooperative Societies Act, 1969;
(b) an up-to-date copy of the Kerala Cooperative Societies Rules, 1969;
(c) an up-to-date copy of the bye-laws of the society;
(d) a register of members;
(e) the latest audited balance sheet of the society; 2[x x x x]
(f) the accounts of the society in so far as they relate to his or her transaction 3[; and]
4[(g) summary of defects included in the latest statutory audit report along with the rectification report approved by the Committee and general body of the society.]
Notwithstanding anything contained in any other provision of this Act or any other law, 2[every member] of a society shall have one vote in the affair of the society:
Provided that--
(a) a member admitted within sixty days immediately prior to the date of election shall not have the right to vote;
(b) a nominal or associate member shall not have the right to vote.
(c) where the Government is a member of the society, each person nominated by the Government on the committee of the society shall have one vote each including the right to vote for election of office bearers of the society;
(d) an ex-officio member on the committee of a society shall have one vote but shall not have right to vote for election 5[and removal]of office bearers of the society;
(e) in the case of an equality of votes, the chairman shall have and exercise a second or casting vote.
3[x x x x]
Explanation.-- 4[x x x x]
(1) Every member of a society shall exercise his vote in person.
(2) Notwithstanding anything contained in sub-section (1), a society or corporation or a statutory or non-statutory Board, committee or other body of persons which is a member of another society may, subject to any rules made under this Act, appoint one of its members to vote on its behalf in the affairs of that society.
(1) In any society no member other than the Government, any statutory or non-statutory Board, Committee or Corporation approved by the Government in this behalf or any other society, shall hold more than such portion of the total share capital of the society, not exceeding one fifth thereof, as may be prescribed:
Provided that the Government may, by notification in the gazette, specify in respect of any class of societies a higher maximum than one fifth of the share capital]
2[Provided further that the maximum amount of share capital that an individual member can hold in an Urban Co-operative Bank having Reserve Bank of India licence is limited to five per cent of the value of total paid-up share capital of the bank.]
(1) The transfer of a share or interest of a member in the capital of a society shall be subject to such condition and restrictions as to the maximum holdings as are specified in section 22.
(2) No transfer by a member of his share or interest in a society shall be valid unless--
(a) the member has held such share or interest for not less than three years; and
(b) the transfer is approved by the committee of the society.
Subject to the other provisions of this Act, no withdrawal by a member of his share in a society shall be valid unless--
(a) the member has held such share for not less than three years; and
(b) such withdrawal is in accordance with the bye-laws of the society.
(1) on the death of a member of a society, the society shall transfer the share or interest of the deceased member to the person or persons nominated in accordance with the rules or the bye-laws or, if no person has been so nominated, to such person as may appear to the Committee to be the heir or legal representative of the deceased member.
Provided that such nominee, heir or legal representative, as the case may be, is admitted as a member of the society.
Provided further that nothing in this sub section shall prevent a minor or a person of unsound mind from acquiring by inheritance or otherwise the share or interest of a deceased member in a society.
(2) Notwithstanding anything contained in sub-section (1), any such nominee, heir or legal representative, as the case may be, may require the society to pay to him the value of the share or interest of the deceased member ascertained in accordance with the rules or the bye-laws and the society shall pay the amount to the nominee, heir or legal representative, as the case may be, on receipt of such requisition.
(3) A society may pay all other moneys due to the deceased member from the society to such nominee, heir or legal representative, as the case may be.
(4) All transfers and payments made by a society in accordance with the provisions of this 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 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 the deceased member, on the date of his death; shall continue for a period of 1[three] years from such date.
(2) Where a society is ordered to be wound up under section 71, 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) Subject to the provisions of this Act, the rules and the bye-laws, the final authority of a society shall vest in the general body of the members:
Provided that nothing contained in this sub-section shall affect the exercise by the committee or any officer of a society of any power conferred on such committee or such officer by this Act or rules or the bye-laws.
(2) Notwithstanding anything contained in sub-section (1), where the area of operation of a society is not less than such area as may be prescribed, or where the society consists of such number of members as may be prescribed, the society may provide by an amendment of its bye laws for the constitution of a smaller body consisting of such number of members of the society as may be prescribed, elected in accordance with the rules (hereinafter referred to as the representative general body) to exercise all or any of the powers of the general body as may be specified in the bye-laws except the power to conduct election of members of the committee, and any reference by whatever form of words, in this Act to the general body or a meeting thereof shall where a representative general body has been constituted under this sub-section, have effect in respect of the powers exercisable by the representative general body as if such reference were a reference to the representative general body or a meeting thereof, as the case may be.
Provided that the representative general body shall not alter any provision in the bye-laws relating to its constitution or powers.
(3) The exercise of any power by the representative general body shall be subject to such restrictions and conditions as may be specified in the rules or the bye-laws.
*(1) The general body of a society shall 39[constitute a committee], for a period 39A[of] 40[five years], in accordance with the bye-laws and entrust the management of the affairs of the society to such committee.
40A[Explanation.-- Notwithstanding anything contained in the bye-laws, for the purpose of calculating the term of committee, five years from the date of election will be taken to be the term of the committee.]
Provided that in the case of society registered after the commencement of this Act, the persons who have signed the application to register the society may appoint a committee to conduct the affairs of the society for a period of three months from the date of registration or for such further period as the Registrar may consider necessary; but the committee appointed under this proviso shall cease to function as soon as a committee has been constituted in accordance with the bye-laws:
41[Provided further that where the bye-laws so provide, the Government or the Registrar may nominate all or any of the members of the first committee, including the President or Chairman, for a period not exceeding 42[twelve months.]
42A[Provided also that the election to 45BC[the committees of all Primary Agricultural Credit Societies and all primary] societies shall not be conducted on ward basis irrespective of any provisions to the contrary contained in the bye-laws of 45BD[such society]]
43[x x x x]
44[44A[(1 A) Notwithstanding anything contained in the bye-laws of the Society, the number of the members of the committee shall not be less than seven and shall not exceed 44AA[fifteen] in the case of primary Cooperative Societies and 44AB[twenty one] in the case of all other types of co-operative societies.]
44B[x x x x]
(1B) Notwithstanding anything contained in the bye-laws of any Federal Cooperative Society, the number of individuals in the society and the Committee thereof shall not exceed twenty five percent of the total number of members in the society or in the Committee, as the case may be 44BB[subject to the limit specified in sub-section (1A) of Section 28.]
44C[(1C) Notwithstanding anything contained in the bye-laws of a Primary Credit Society or an Urban Cooperative Bank, one seat in the committee of each such society shall be reserved for the members having a deposit of 45BE[twenty-five thousand rupees] and above.]
45BF[(1CA) Notwithstanding anything contained in the Act, rules or the bye-laws of the society, two seats in the Committee of each society shall be reserved for members who shall not exceed the age of forty years on the date of filing of nomination for election, of whom one shall be from the non-reserved category and one shall be a woman from the reservation category provided in sub-section (1) of section 28A.]
44CC[(1D) Notwithstanding anything contained in this Act or in any judgment, decree or order of any Court, the registration of any Primary Cooperative Agricultural and Rural Development Bank without the bifurcation of area, assets and liabilities of the society and the constitution of the committee pursuant to any such registration without such bifurcation shall be void and the Registrar shall appoint Special Officer for each of such societies which were registered without bifurcation of area, assets and liabilities.
45A[(1DA) Notwithstanding anything contained in this Act or in any judgment, decree or order of any Court, the registration of any Primary Tourism Cooperative Society without bifurcation of area, assets and liabilities of the society and the constitution of the Committee pursuant to any such registration without such bifurcation shall be void and the Registrar shall appoint a Special Officer for each of such societies.]
(1E) The Special Officer so appointed shall,--
(i) take into custody or bring under his control, the property, effects and actionable claims to which the erstwhile society is or appears to be entitled to and shall take steps as may be necessary or expedient to prevent loss or deterioration of or damage to, such property, effects and claims;
(ii) take such steps for the bifurcation of area, assets and liabilities of the society and also shall take all steps to register new society with the members of the society so bifurcated and constitute the committee;
45BG[(iii) such bifurcation shall be completed within a period of one year from the date of issue of bifurcation order by the Registrar.]
45AA[(1F) x x x x]
44CD[(1G) Notwithstanding anything contained in the bye-laws of a society, the Committee in office shall co-opt two persons or representatives who are/were in paid service of a Commercial Bank, Kerala State Co-operative Bank, an Urban Co-operative Bank, Kerala State Agriculture and Rural Development Bank, a Primary Co-operative Agricultural and Rural Development Bank, erstwhile District Co-operative Banks or a Service Co-operative Bank in the Managerial Cadre or Specialization in Co-operation/ Co-operative Management, Management, Agriculture, Economics, Commerce, Public Finance, Law, Rural Development and Information Technology as members of the Committee of such society:
Provided that the number of such co-opted members shall not exceed two in addition to the maximum limit specified in sub-section (1A):
Provided further that such co-opted members shall not have the right to vote in any election of the co-operative society in their capacity as such member and is not eligible to be elected as office bearers of the board:
Provided also that such co-opted members of a co-operative society shall also be members of the board and such members shall be excluded for the purpose of counting the total number of directors specified in sub-section (1A):
Provided also that if the Committee does not co-opt the persons as specified within a period of six months from the date on which the Committee is constituted, the Government or the Registrar, as the case may be, with due notice as may be prescribed shall make such nominations as specified in the sub-section.]
45AA[(1H) x x x x]
44CB[x x x x]
44CE[(1J) Notwithstanding anything contained in the bye-laws of the society, casual vacancy of an elected member of the committee shall be filled up by nomination by the Committee out of the same class of members, if the term of office of the board is less than half of its original term.]
45B[(1K) Notwithstanding anything contained in this Act or Rules made thereunder or Bye-laws, in a Regional Milk Producers Union having jurisdiction over more than one revenue district, the members of the Committee representing each revenue district shall be elected by the member societies of that particular revenue district itself from among themselves.]
(2) Notwithstanding anything contained in any law for the time being in force, a person shall be disqualified for appointment as, or for being, a member of a committee-
(a) if he is a member of the committee of 44D[more than one society of the same type; or]
(b) if he is a member of the committee of 44E[more than two societies of different types;]
Provided that nothing contained in this sub-section shall be deemed to disqualify a person for election as, or for being, a delegate of a society.
45BH[(2A) Notwithstanding anything to the contrary contained in the Act, rules or in the bye-laws of a credit society, no member of the Committee of a society shall be eligible for election to the Committee for more than three consecutive terms, irrespective of whether the term is in full or in part.
Explanation.-- For the purpose of this sub-section, "credit society" means the Kerala State Co-operative Bank Limited, Primary Agricultural Credit Societies, Service Co-operative Banks, Regional Co-operative Banks, Rural Banks, Farmer's Service Co-operative Banks, Urban Co-operative Banks, The Kerala State Co-operative Agricultural and Rural Development Bank Limited, Primary Co-operative Agricultural and Rural Development Bank, Urban Co-operative Societies, Agricultural Improvement Co-operative Societies, Employees Credit Societies, Rural Co-operative Societies, Primary Housing Co-operative Societies and Kerala State Housing Federation.]
(3) Nothing contained in clause (a) of sub-section (2) shall be deemed to disqualify a member of the committee of a society for appointment as, or for being, a member of the committee of the apex or central society of the same type. 45BI[or more than two societies of different types]
Provided that no member of a committee shall be the President or Chairman of more than one society of the same type.
(4) The members of a committee may be paid honorarium at such rates, as may be prescribed.
45[(5) The quorum for a meeting of a committee shall be such number of members just above fifty per cent of the total number of members of that committee.]
45BB[(6) Notwithstanding anything contained in this Act or the rules made thereunder or the bye-laws of a Regional Cooperative Milk Producers' Union or in any other law, judgement or Decree or Orders of any Court or Tribunal for the time being in force, no President of an Anand Pattern Milk Cooperative Society which is a member of a Regional Cooperative Milk Producers' Union, shall be eligible to hold office as a member of the committee of the Regional Cooperative Milk Producers' Union for more than three terms or fifteen years whichever is higher:
Provided that the provisions of this sub-section shall not apply to members of the committee of the Regional Cooperative Milk Producers' Union holding office as such on the date of commencement of the Kerala Cooperative Societies (Amendment) Act, 2021 till the completion of their original term of five years:
Provided further that the provisions in the above proviso shall not apply to the members of the committee whose tenure was extended beyond their original term of five years.
(7) Notwithstanding anything contained in this Act or the rules made thereunder or the bye-laws of a Regional Cooperative Milk Producers' Union or in any other law, judgement or Decree or Orders of any Court or Tribunal, for the time being in force, the President of an Anand Pattern Milk Cooperative Society, which is a member of the Regional Cooperative Milk Producers' Union shall be eligible to contest the elections to the committee of the Regional Cooperative Milk Producers' Union and hold office as a member of the committee of the Regional Cooperative Milk Producers' Union, only if the Anand Pattern Milk Cooperative Society to which he/she belongs, satisfies the following conditions, namely:-
(a) the society is placed in audit classification A or B, as prescribed, during the last audit conducted; and
(b) supply milk procured and pooled by the member society to the Regional Cooperative Milk Producers' Union subject to a minimum quantity as fixed by the committee of the Regional Cooperative Milk Producers' Union:
Provided that the provisions of this sub-section shall not apply to those member societies for a period of two years which are revived after long duration of inactivity and those Primary Dairy Cooperative Societies whose bye-laws were amended to Anand Pattern, either from the date of restart of the society or from the date of registration of amendment of bye-laws to Anand Pattern model bye-laws.
(8) Notwithstanding anything contained in this Act or the rules made there under or the bye-laws of a Regional Cooperative Milk Producers' Union or in any other law, judgement or Decree or Orders of any Court or Tribunal, for the time being in force, the delegate of the member Anand Pattern Milk Cooperative Society to attend the general body meetings and to contest the elections to the managing committee of the Regional Cooperative Milk Producers' Union shall be the President of member Anand Pattern Milk Cooperative Societies only.]
47[(1) Notwithstanding anything contained in this Act, the rules or the bye-laws, there shall be reserved in the committee of every society, 47A[three of the total seats for women members] and one seat for a member belonging to the Scheduled Castes or the Scheduled Tribes.]
(2) Nothing contained in sub-section (1) shall prevent the women members and members belonging to the Scheduled Castes or Scheduled Tribes from being elected to the non-reserved seats in the committee.]
48[(3) Where there is no representation of women or members belonging to Scheduled Castes or Scheduled Tribes in the committee of a Society including those of the societies formed exclusively for the benefit of women and for persons belonging to Scheduled Castes or Scheduled Tribes, the Government or the Registrar shall nominate women and persons belonging to Scheduled Castes or Scheduled Tribes to the elected committee from among the members of such societies.]
(4) A person nominated to the committee of a society or Bank shall have all the powers of a member elected to such committee and shall hold office during the pleasure of the Government or the Registrar, as the case may be.]
Notwithstanding anything contained in the bye-laws of any Urban Cooperative Bank, there shall be reserved not less than two seats in the committees of such banks for members who possess experience in banking or professional qualifications:
Provided that this section shall not be applicable to the committees of Urban Cooperative Banks constituted prior to the commencement of the Kerala Cooperative Societies (Amendment) Act, 2010.
Explanation:-For the purpose of this section,--
(i)"members who possess experience in banking" means members who are or were in paid service of a Commercial Bank, State Cooperative Bank, District Cooperative Bank, an Urban Cooperative Bank or a Service Cooperative Bank in the managerial cadre.
(ii)"professional qualifications" means membership in the Institute of Chartered Accountants of India or Masters Degree in Business Administration or Membership in the Institute of Cost and Works Accountants of India or Masters Degree in Commerce with experience in banking or experience in the inspection or audit of banks, including Cooperative Bank.]
(1) A committee constituted under sub-s. (1) of S.28 shall elect from themselves a President, a Vice-President, a Treasurer or any other officer, by whatever name he is designated in the manner as may be prescribed.
(2) A committee shall remove from office the President, Vice- President or the Treasurer or any other officer of the committee 49A[or a delegate of the society who has been appointed by the committee] if a motion expressing want of confidence in any of all of them is carried with the support of the majority of the members of such committee in accordance with the procedure as may be prescribed.]
48BA[Notwithstanding anything contained in this Act or the rules made there under or the bye-laws of a Regional Cooperative Milk Producers' Union or in any other law, judgement or Decree or Orders of any Court or Tribunal, for the time being in force, no President of an Anand Pattern Milk Cooperative Society shall be eligible to hold office as President or Chairman of a Regional Cooperative Milk Producers' Union for more than two consecutive terms, whether in full or in part.
(4) Notwithstanding anything contained in this Act or the rules made thereunder or the bye-laws of an Anand Pattern Milk Cooperative Society or in any other law, Judgement or Decree or Orders of any Court or Tribunal, for the time being in force, either the President or the Vice President of Anand Pattern Milk Cooperative Societies shall be women members.]
50A[(1) Notwithstanding anything contained in this Act or in the rules, the Government shall by notification in the Gazette, constitute a State Cooperative Election Commission for the superintendence, direction and control of the preparation of electoral rolls and for the conduct of all elections to co-operative societies 50BC[, the state co-operative union and the circle co-operative unions] including election to the President/Vice President and Representative General Body.]
50AA[x x x x]
50B[(2) The State Cooperative Election Commission shall consist of not more than three members, one among them shall be the State Chief Cooperative Election Commissioner and others shall be Commissioners. The State Chief Cooperative Election Commissioner shall be an officer not below the rank of 50BD[Special Secretary to Government, Law Department]. The Commissioners shall be persons, who are or have been Officers of the Department of Co-operation, not below the rank of Additional Registrar of Cooperative Societies. The appointment of State Chief Cooperative Election Commissioner and the Commissioners shall be for a period of five years from the date of assumption of office or sixty two years, whichever is earlier;
Provided that, in the case of officers in service, the Chief Election Commissioner and the Commissioners shall vacate their offices on their date of superannuation:
Provided further that,
(i) the State Cooperative Election Commission shall in consultation with the Registrar have power to fix, alter or revise the maximum and minimum limit of election expenses to be spent by different classes of societies by special or general order;
(ii) the Election Commission may fix fee or cost for election process, in accordance with rules made in this behalf;
(iii) the procedure for payment of election fee or cost shall be such, as may be prescribed.]
(3) The State Cooperative Election Commission shall, in consultation with the Government 50BA[and the Registrar], designate or nominate officers and employees of the Government to assist the Commission in the conduct of election to the Committee 50BA[and Representative General Body] of such society.
(4) Subject to the provisions of this Act, the Government may by rule, make provision with respect to all matters relating to, or in connection with elections to the committee 50BA[and Representative General Body] of a society.]
(1) A general body meeting of a society shall beheld 50C[within a period of six months of close of the financial year] for the purpose of:--
(a) approval of the budget with reference to the programme of the activities of the society prepared by the committee for the ensuing year;
(b) election, if any, in the prescribed manner of the members of the committee other than nominated members;
(c) consideration of the audit report 50D[and the report and follow up action of the committee thereon] and the annual report;
50E[(ca) review of operational deficit/loss, if any, and programme to reduce such deficit; or loss.
(cb) approval of the programme of activities of the society prepared by the committee for the ensuing year;
(cc) review of annual report and 50G[audited accounts] of any subsidiary-organisation, if any;
(cd) amendment of bye-laws;
50H[(ce) consideration of detailed list of all liabilities of members of the Committee and the employees of the society, and their family members, due to the society for the previous financial year.
Explanation.-- For the purpose of this clause, "family members" means husband, wife, their children including adopted children and parents ; and]
(cf) any other information required by the Registrar in pursuance of the provisions of the Act;]
(d) disposal of the net profit; and
(e) consideration of any other matter which may be brought forward in accordance with the bye-laws.
50I[(2) The Registrar or any person deputed by him and the Director of Co-operative Audit or any person deputed by him may have the right to attend in the committee and in the general body meeting of any society.]
50F[(3) Where the board of a co-operative society fails to convene the annual general meeting within the period specified in sub-section (1), the Registrar or the person authorised by him in this behalf shall be competent to convene such annual general meeting within a period of ninety days from the date of expiry of the period mentioned in sub-section (1) and the expenditure incurred on such meeting shall be borne by the co-operative society.
(4) Members of the Board who, in the opinion of the Registrar, were responsible for not convening the annual general meeting within the stipulated period shall be disqualified for one term for being elected as committee members and to continue as members of a society in addition to being liable for any other provisions under this Act:
Provided that the Registrar shall, before passing order under this sub-section, afford a reasonable opportunity of being heard to each such person, who in his opinion were responsible for not convening the annual general meeting within the specified period.
(5) A notice of the general meeting stating the place, date and hour of the meeting together with the agenda shall be given to every member, as may be prescribed.]
(1) The committee of a society may at any time, call a special general body meeting of the society and shall call such meeting within one month after 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 prescribed.
(2) If a special general body meeting of a 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 power to call such meeting and that meeting shall be deemed to be a meeting called by the committee.
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Registrar or any person authorised by him in this behalf may, at any time, call a special general body meeting of the society in such manner and at such time and place within the area of its operation as he may direct and such meeting shall be deemed to be a meeting called by the committee.
(4) Notwithstanding anything contained in the bye-laws of a society, the Registrar or any person authorised by him in this behalf may, at any time summon a meeting of the committee of the society and that meeting shall be deemed to be a meeting called in accordance with the bye-laws of the society and shall have power to transact all business which can be transacted at a meeting of the committee under the bye-laws of the society and such other business as is specially mentioned in the requisition made by the Registrar or the person authorised.
(5) The Registrar or any other person deputed by him shall have the right to attend the committee or general body meeting of any society convened in accordance with the provisions of this section.
(1) Where the Government--
(a) have subscribed to the share capital of an apex or a central society; or
(b) have assisted indirectly in the formation or augmentation of the share capital of an apex or a central society; or
(c) have guaranteed the repayment of principal and payment of interest on debentures issued by an apex or a central society; or
(d) have guaranteed the repayment of principal and payment of interest on loans and advances to an apex or a central society;
51A[the Government or any other authority shall have the right to nominate not more than two persons to the committee of an Assisted Apex or Central Society]
(2) A person nominated to the committee of an apex or a Central society under sub-section (1) shall hold office during the pleasure of the Government or the specified authority, as the case may be.
51B[(2A) The person nominated under sub-section (1) shall not be eligible to hold the office of the president/chairman or vice-president/vice-chairman of the Apex or Central Society nor will be eligible for being sent as the delegate of the Apex or Central Society.]
(3) A person nominated to the committee of an apex or a Central society under sub-section (1) shall not take part 51D[in the voting for the election of office bearers and] in the discussion of any no-confidence motion or vote on any such motion.
51C[(4) x x x x]]
52[(1) If the Registrar, after an inquiry by himself or through his subordinates or on a report of the financing bank, or the Vigilance and Anti Corruption Bureau of the Government or the Vigilance Officer or other wise is satisfied that the committee of any society,--
(a) persistently makes default or is negligent in the performance of the duties imposed on it by this Act or the rules or bye-laws or does anything which is prejudicial to the interests of the society; or
(b) willfully disobeys or fails to comply with any lawful order or direction issued under this Act or the rules; or
53A[(ba) willful disobedience of execution of orders etc., referred to in section 76 of the Act ; or]
(c) makes any payment contrary to this Act or the rules or the bye-laws or causes any loss or damage to the assets of the society by breach of trust of willful negligence; or
52A[(d) misappropriates or destroys or tampers with the records or causes the destruction of records to cover up any misconduct or malpractice,
he may, after giving the committee an opportunity to state its objections, if any, by order in writing, remove the committee and appoint in its place, one administrator or an administrative committee consisting of not more than three individuals, one among them as convener, 53B[who shall be from among the members of the society], to manage the affairs of the society for a period not exceeding six months 52AA[x x x x]
52AB[Provided that in the case of co-operative society, carrying on the business of banking, the provisions of the Banking Regulation Act, 1949 (Central Act 10 of 1949) shall also apply:
Provided further that in the case of a co-operative society, carrying on the business of Banking, appointment of administrator/administrative committee shall not exceed one year in the aggregate:]
52AC[x x x x]
52AD[Explanation 53C[x x x x]:--] A notice and an order given as per this clause to the President, in his absence to the Vice President or any committee member who is holding charge of President or Vice President or to the Chief Executive of a society shall be treated as an order given to the committee of the society.]]
52B[(e) Every member of the committee superseded under this section shall from the date of order of such supersession stand disqualified to contest in the election to or to be nominated to the committee of any Society or to be appointed as an administrator in any society for 53D[next one term].]
(2) The Registrar shall consult the financing bank and Circle Cooperative Union or State Cooperative Union as the case may be before passing an order under sub-section (1).
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2) it shall not be necessary to give an opportunity to the committee to state its objections and to consult the Unions and financing banks, in cases where the Registrar is of the opinion that it is not reasonably practicable to do so, subject however to the condition that in such cases the period of supersession shall generally be for six months and in case a new committee, cannot be constituted or enter upon office in accordance with the bye-laws of the society within the period of supersession the period may be extended for a further period not exceeding six months--
(a) in the case of a Cooperative society only after consulting the Circle Cooperative Union concerned; and
(b) in the case of an Apex Society and a Central Society only after consulting the State Cooperative Union.
(4) The Committee or administrator or administrators so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, 53[have power to exercise all or any of the powers and functions] of the committee or of any officer of the society and take such action as may be required in the interests of the society. 53E[including enrollment of members, provided such members shall not have voting rights unless an elected committee ratifies the membership.]
(5) The Committee or administrator or administrators shall, before the expiry of its or his or their term of office, arrange for the constitution of a new committee in accordance with the bye- laws of the society.
(6) Every order made by the Registrar under sub-section (1) shall be communicated to the Circle Cooperative Union.
(1) Where the term of office of a committee has expired and a new committee has not been constituted, or 54[where a no-confidence motion is passed by the general body against the existing committee or where the existing committee resigns enbloc or where vacancies occur in the committee either by resignation or other wise and the number of remaining members cannot constitute the quorum for the meeting of the committee, or where the committee fails to hold its regular meeting consecutively for six months or where the Registrar is satisfied.]
(a) that a new committee cannot be constituted before the expiry of the term of office of the existing committee; or
54A[(aa) there is stalemate in the constitution or functions of the committee.]
55[(b) that a new committee is prevented from entering upon office or a new committee fails to enter upon office, on the date on which the term of office of the existing committee expires, the Registrar may, either suo motu or on the application of any member of the society, after intimating the Circle Cooperative Union, appoint one administrator or an administrative committee consisting of not more than three individuals, 55A[62A[who shall be from among the members of the society], one among them as convener,] to manage the affairs of the society, for a period not exceeding six months as may be specified in the order, which period may, at the discretion of the Registrar and for reasons to be recorded in writing, be extended, from time to time, so, however, that the aggregate period shall not, in any case, exceed one year or till a new committee enters upon office, whichever is earlier.]
(i) a new committee consisting of not more than three members of the society; or
(ii) 56[not more than three Administrators who need not be] members of the society to manage the affairs of the society 57[for a period not exceeding six months as may be specified in the order, which period may at the discretion of the Registrar and for reasons to be recorded in writing, be extended, from time to time, so, however, that the aggregate period shall not, in any case, exceed one year or till a new committee enters upon office, whichever is earlier]
Provided that before making such order, the Registrar shall publish a notice on the notice board of the head office of the society inviting objections to the making of the order within a period specified in the notice and consider such objections.
Provided further that it shall not be necessary to publish such notice in cases where the Registrar is satisfied that it is not reasonably practicable to do so.
58[Provided also that, where a committee, Administrator or Administrators, as the case may be, is in office at the commencement of the Kerala Cooperative Societies (Amendment) Act, 1992, the Registrar may extend the term of such committee, Administrator or Administrators, as the case may be, for a further period not exceeding one year from the date of such commencement]
59[Explanation.-- For the purpose of this sub-section, a tender of resignation by a member of the committee shall have the effect of terminating his membership from the committee.]
60[(1A) Notwithstanding anything contained in sub-section (1), where on receipt of a report from the Registrar, the Government are satisfied that a new committee cannot be constituted or cannot enter upon office of the society before the expiry of the term of office of the 55B[administrator or administrative committee], as the case may be appointed by the Registrar under sub-section (1) and that it is necessary in the public interest to manage the affairs of the society and to enable a new elected committee to enter upon office, the Government may, by notification in the Gazette, for reasons to be recorded, permit the Registrar to extend the term of the said 55B[administrator or administrative committee], as the case may be, for a further period not exceeding one year in the aggregate or till a new committee enter upon office, whichever is earlier.]
(2) The 55C[administrator or administrative committee] appointed under 61[sub-sections (1) & (1A)] shall, subject to the control of the Registrar and to such instructions as he may from time to time give, 62[have power to exercise all or any of the powers and functions] to the committee or of any officer of the society 62B[including enrollment of members] and take all such action as may be required in the interest of the society. 62C[The members so enrolled shall not have voting right unless an elected Committee ratifies such membership and if the Committee does not ratify any such membership, shall specify the reasons thereof for such denial.]
(3) The 55C[administrator or administrative committee] shall arrange for the constitution of a new committee or for the entering upon office of the new committee as the case may be.
(1) If the committee of a 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 a new committee or Administrator or Administrators is or are appointed under section 33 or if the society is ordered to be wound up under section 71 and the outgoing members of the committee refuses to hand over charge of the records and property of the society to the new committee or Administrator or Administrators or the liquidator, as the case may be, or if an outgoing president or secretary who is the custodian of the records and property to the society refuses to hand over charge of the records and properties of the society to his successor, the new committee or administrator or administrators or the liquidator or the President or Secretary may with the previous sanction of the Registrar apply to the Magistrate within whose jurisdiction the society functions, for securing the records and properties 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 of the society 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 or Administrators or the liquidator or the President or Secretary, as the case may be.
(3) Where the Registrar or any other officer not below the rank of the Assistant Registrar of Cooperative societies authorised by him in this behalf in the course of audit, inspection, inquiry or supervision is of opinion that there is room to suspect gross negligence of duties, misappropriation or misuse of funds of the society or irregularity in recording proceedings or keeping accounts or books or is satisfied that the records, registers or the account books of a society are likely to be tampered with or destroyed and the funds and property of a society are likely to be misappropriated or misapplied, he shall have power to take possession of any or all of the books, registers, securities or documents cash in hand or account books of the society and remove such seized records and property and to deal with them in any manner as may be directed by the Registrar.
(4) The Registrar or other officer seizing the records and property of a society under sub-section (3) shall prepare an inventory of the records and property seized in duplicate with his signature and require the officer, employee or members of the society from whose custody the records and property are seized to affix his signature in witness thereof and, if such officer or employee or member refuses to sign, then the Registrar or the officer seizing the records and property shall cause two or more persons to sign the inventory as witnesses to the correctness thereof. A copy of the inventory prepared under this section shall be delivered to the officer, employee or member of the society from whose custody the records and property were seized.
(1) All co-operative societies shall prepare and keep the books of accounts and financial statements in the form in the generally accepted accounting principle for preparing profit and loss account and balance sheet, which enable double entry book keeping system, as may be prescribed.
(2) The Registrar shall issue necessary guidelines for installation, maintenance and use of common software to all co-operative societies, as may be prescribed.
(3) A technical cell with professional and technical team as prescribed shall be established in the office of the Registrar, in consultation with the Government, to inspect the security, reliability, data protection and other aspects connected with software and hardware.]
(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 society by any member or past member or deceased member shall be a first charge--
(a) upon the corps or other agricultural produces of such member for the raising of which the loan was taken from the society by such member; and
(b) upon any cattle, fodder for cattle, agricultural or industrial implements or machinery, or raw materials for manufacture, supplied or purchased in whole or in part out of any loan given, the society, or on any article manufactured from raw materials so supplied or purchased.
(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 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 provision of sub-section (2) shall be void.
(4) The charge created under sub-section (1) shall be available as against any claim of the Government arising from any loan granted by them after the grant of the loan by the society.
Notwithstanding anything contained in this Act or any other law for the time being in force;
(i) a member who makes an application for a loan to a society of which the majority of the members are agriculturists shall, if he owns any land or holds any land as a tenant entitled to fixity of tenure, make a declaration in the prescribed form, which shall state that the applicant thereby creates a charge on the land owned by him or on his interest in the land held by him as tenant and specified therein, for the payment of the amount of the loan which the society may make to the member on the application and future loans if any, that may be made to him, from time to time, by the society together with interest on such loan or loans;
(ii) a declaration made under clause (i) may be varied or cancelled at any time by the member, with the previous written permission of the society in favour of which such charge has been created;
(iii) no member shall alienate the whole or any part of the land or his interest in the land specified in the declaration made under clause (i) or varied under clause (ii) until the whole amount borrowed by the member together with interest thereon is paid to the society in full;
Provided that standing crops on any such land may be alienated with the previous permission in writing of the society.
Provided further that it shall be lawful to a member to mortgage such land or any part thereof in favour of the Government or a Land Mortgage Bank.
Provided also that if a part of the amount borrowed by a member is paid the society with the approval of the financing bank to which it may be indebted may, on an application from the member, release from the charge created by the declaration made under clause (i) or varied under clause (ii) such a part of the land or of the interest in land specified in the declaration as it may deem proper, with due regard to the security of the balance of the amount of loan outstanding from the member.
(iv) any alienation made in contravention of clause (iii) shall be null and void;
(v) subject to the claims of the Government in respect of basic tax or any money recoverable as land revenue and to the claims of the Government or the Land Mortgage Bank in respect of any money payable under mortgage in favour of the Government or Land Mortgage Bank and to the prior claims of any person in whose favour alienation of the land or interest in land specified in the declaration made under clause (i) or varied under clause (ii) has been effected and duly registered, before the date of the grant of the loan by the society, there shall be a first charge in favour of the society on such land or interest for and to the extent of the dues owing by him on account of the loan;
(vi) a declaration made under clause (i) or any variation or cancellation thereof under clause (ii) or any release under the third proviso to clause (iii) shall be sent by the society, by registered post, to the Sub Registrar having jurisdiction over the area in which the land is situated, and the Sub Registrar shall register such declaration or variation or cancellation or release and issue a copy thereof to the society:
(vii) any declaration made under clause (i) or any variation or cancellation thereof under clause (ii) or any release under the third proviso to clause (iii), which has not been registered under clause (vi), shall be null and void.
Explanation.-- In this section:--
(a) "basic tax" means the tax imposed under the provisions of the Kerala Land Tax Act, 1961 (13 of 1961);
(b) "Land Mortgage Bank" means the Kerala Cooperative Central Land Mortgage Bank Ltd, or a primary mortgage bank as defined in the Kerala Cooperative Land Mortgage Banks Act, 1960 (1 of 1960).
Notwithstanding anything contained in any other provisions of this Act, charge on movable or immovable property of a borrower in favour of the 62BA[Kerala State Cooperative Bank] 62BB[x x x x] or a Primary Agricultural Credit Society or Primary Housing Society 62B[or an Urban Cooperative Bank or any Primary Cooperative Bank or any Primary Cooperative Societies dealing with credit activities] may be created by Gehan in respect of which the provisions of sections 62BC[9 to 15 (both inclusive) and 19 to 28 (both inclusive)] of the Kerala State Cooperative Agricultural and Rural Development Banks Act, 1984 (20 of 1984), as amended from time to time, shall apply with the modification of substituting the words "62BA[Kerala State Cooperative Bank] 62BB[x x x x]", "Primary Agricultural Credit Society or Primary Housing Society", 62B[or and Urban Cooperative Bank or any Primary Cooperative Societies dealing with credit activities] "Society" and "said Bank or "Society", respectively, for the words, "Agricultural and Rural Development Bank", "primary bank", "bank" and "said banks" occurring in the said sections.
Explanation.-- For the purpose of the section, Gehan means a special charge on movable or immovable property, in favour of the 62BA[Kerala State Cooperative Bank] 62BB[x x x x] or a Primary Agricultural Credit Society or a Primary Housing Society 62B[or an Urban Cooperative Bank or any Primary Cooperative Societies dealing with credit activities] by a mere declaration in writing by the borrower, for securing the payment of money advanced or to be advanced by way of loan, which will have all the characteristics of a valid mortgage.]
(1) Notwithstanding anything contained in any law for the time being in force, a member of a society, may execute an agreement in favour of the society providing that his employer or the officer disbursing his salary or wages 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 debts or other demand owing by the member to the society.
(2) On the execution of such an agreement the employer or the officer disbursing the salary or wages of any such member as is referred to in sub-section (1) shall, if so required by the society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement and pay the amounts so deducted to the society within seven days from the date of the deduction.
62C[Provided that this sub-section shall not apply if the employees, whose salary is to be deducted, are not informed at least thirty days in advance, by notice duly acknowledged, about the dues on loan or award amount.]
A society shall have a charge upon the share or interest in the capital and on the deposits of a member or past member or deceased member and on any dividend, bonus or profit payable to a member or past member or the estate of a deceased member in respect of any debt or outstanding demand owing to the society and may set-off any sum credited or payable to a member, past member or the estate of a deceased member in or towards payment of any such debt or outstanding demand:
Provided that no financing bank to which a society is affiliated shall have a charge upon any sum invested in the financing bank as reserve fund by the society if the bank is not the sole creditor of the society, or be entitled to set off any such sum credited or payable to the society towards any debt due from such society.
(1) Subject to the provisions of section 38, the share or interest of a member in the capital of a society shall not be liable to attachment or sale under any decree or order of a Court in respect of any debt or liability incurred by him and a receiver under any law relating to insolvency shall not be entitled to, or have any claim on, such share or interest.
(2) The reserve fund of a society invested by such society in accordance with the provisions of section 57 shall not be liable to attachment under any decree or order of a Court in respect of any debt or liability incurred by the society.
(1) The Government may, by notification in the Gazette, remit in respect of any class of societies:-
(a) the stamp duty chargeable under the Kerala Stamp Act, 1959 (17 of 1959), in respect of any instrument executed by or on behalf of a 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 the Act, in cases where, but for such remission the 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 fees.
(2) The Government may, by notification in the Gazette, exempt any class of societies from taxes on-
(a) agricultural income;
(b) sale or purchase of goods; and
(c) professions, trades, calling, and employments.
Nothing in clause (b) and (c) of sub-section (1) of section 17 of the Indian Registration Act 1908 (Central Act 16 of 1908) or sections 54 and 59 of the Transfer of Property Act, 1882 (Central Act 4 of 1882), shall apply to--
(a) any instrument relating to shares in a society, notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(b) any debentures 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 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
(c) any endorsement upon or transfer of any debenture issued by any such society.
(1) The Government may subscribe directly to the share capital of a society with limited liability.
(2) Notwithstanding any agreement to the contrary, the Government shall not be entitled to a dividend on the shares of any such society at a rate higher than that at which such dividend is payable to any other share holder of the society.
The Government may provide moneys to a society for the purchase of shares in other societies with limited liability.
(1) An apex society which is provided with moneys by the Government under section 43 shall, with such moneys, establish a fund to be called the "Principal State Partnership Fund"
(2) An apex society shall utilise the Principal State Partnership Fund for the purpose of:--
(a) directly purchasing shares in other societies with limited liability; or
(b) providing moneys to a central society to enable that society to purchase shares in other societies with limited liability (hereinafter in this Chapter referred to as primary societies) or
(c) making payments to the Government in accordance with the provisions of this Chapter, and for no other purpose.
(1) A central society which is provided with moneys by an apex society from the Principal State Partnership Fund shall, with such moneys, establish a fund to be called the "Subsidiary State Partnership Fund".
(2) A central society shall utilise the Subsidiary State Partnership Fund for the purpose of--
(a) purchasing shares in primary societies; or
(b) making payments to the apex society in accordance with the provisions of this Chapter, and for no other purpose.
No shares in a society shall be purchased from the moneys in the Principal State Partnership Fund or the Subsidiary State Partnership Fund except with the previous approval in writing of the Government.
Where any shares in a society are purchased by--
(a) the Government; or
(b) the apex society or a central society from the Principal State Partnership Fund or the Subsidiary State Partnership Fund, as the case may be, the liability in respect of such shares shall in the event of the society being wound up, be limited to the amount paid in respect of such shares.
An Apex society which has purchased shares in other societies from the moneys in the Principal State Partnership Fund and a Central society which has purchased shares in primary societies from the moneys in the Subsidiary State Partnership Fund shall be entitled only to such dividend on the said shares as is declared by the society concerned and is payable to other share holders of that society.
(1) If a society in which shares are purchased from the moneys in the Principal State Partnership Fund is wound up or is dissolved, the Government shall not have any claim against the apex society which purchased the shares in respect of any loss arising from such purchase; but the Government shall be entitled to any moneys received by the apex society in liquidation proceedings or on dissolution, as the case may be.
(2) If a society in which shares are purchased form the moneys in the Subsidiary State Partnership Fund is wound up or is dissolved, neither the Government nor the apex society shall have any claim against the central society which purchased the shares in respect of any loss arising from such purchase; but the apex society shall be entitled to any moneys received by the central society in liquidation proceedings or on dissolution, as the case may be and such moneys shall be credited to the Principal State Partnership Fund.
(1) All moneys received by an apex society in respect of shares of other societies purchased form the moneys in the Principal State Partnership Fund on redemption of such share or by way of dividends or otherwise shall be credited to that Fund.
(2) All moneys received by a central society in respect of shares of primary societies purchased form the moneys in the Subsidiary State Partnership Funds on redemption of such shares or by way of dividends or otherwise, shall in the first instance be credited to that fund and then transferred to the Apex society which shall credit them to the Principal State Partnership Fund.
(3) All moneys referred to in sub-section (1) or sub-section (2) shall Notwithstanding that the shares stand in the name of the apex society or the central society, as the case may be, be paid to the Government.
(4) Save as provided in sub-section (3), the Government shall not be entitled to any other return on the moneys provided by it to an apex society under S.43.
(5) Any amount to the credit of the Principal State Partnership Fund or the Subsidiary State Partnership Fund and the investment thereof shall not form part of the assets or liabilities of the apex society or central society, as the case may be. The balance sheet of any such society shall separately show the amounts to the credit of the Principal State partnership Fund or the Subsidiary State Partnership Fund or the investment thereof, as the case may be.
(1) If any apex society which has established a Principal State Partnership Fund is wound up or is dissolved, all moneys to the credit of, or payable to, that fund shall be paid to the Government.
(2) If a central society which has established a Subsidiary State Partnership Fund is wound up or is dissolved, all moneys to the credit of, or payable to, that Fund shall be credited or paid, as the case may be, to the Principal State Partnership Fund from which it received moneys under clause (b) of sub-section (2) of S.44.
Subject to the foregoing provisions of this Chapter,
(a) the Government may enter into an agreement with an Apex society setting out the terms and conditions on which it shall provide moneys to the apex society for the purpose specified in S.43;
(b) an Apex society may, with the previous approval of the Government, enter into an agreement with a central society, setting out the terms and conditions on which it shall provide moneys to that society from the Principal State Partnership Fund for the purpose specified in clause (b) of sub-section (2) of S.44.
Notwithstanding anything contained in any law for the time being in force, the Government may-
(a) give loans or make advances to societies;
(b) guarantee the repayment of principal and payment of interest on debentures issued by a society;
(c) guarantee the repayment of share capital of a society and dividends thereon at such rates as may be specified by the Government;
(d) guarantee the repayment of principal and payment of interest on loans and advances to a society;
(e) guarantee the repayment of deposits received by the society and payment of interest on such deposits; and
(f) give financial assistance in any other form, including subsidies, to any society.
The provisions of Ss.43 to 52 shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force.
No part of the funds other than the net profits of a society shall be paid by way of bonus or dividend or otherwise distributed among its members;
Provided that a member may be paid such remuneration, allowances or honoraria and on such scale as may be laid down by the bye-laws for any services rendered by him to the society.
(1) A society shall, out of its net profits in any year.
(a) transfer an amount not be in less than fifteen percent of the net profits to the reserve fund; and
(b) credit such portion of the net profits, not exceeding five per cent, as may be prescribed, to the Cooperative Education Fund referred to in clause (xix) of sub-section (2) of S.109;
62E[(c) ten per cent of the net profit to the Cooperative Member Relief Fund as may be prescribed.]
64F[(d) credit five percent of net profit to the Professional Education Fund maintained by the Registrar.]
63[x x x x]
(2) The balance of the net profits may be utilised for all or any of the following purpose namely:-
(a) payment of dividends to members on their paid up share capital at such rate 64[not exceeding 64A[twenty five] per cent] as may be prescribed.
(b) Payment of bonus to members on the amount or volume of business done by them with the society, to the extent and in the manner specified in the bye-laws;
64B[(c) seven percent of the net profit to Agricultural Credit Stabilization Fund"; ]
64G[x x x x]
(d) Donations of amounts not exceeding ten per cent of the net profits for any charitable purpose as defined in S.2 of *Charitable Endowments Act, 1890 (Central Act 6 of 1890) ; and
64C[(e) balance of net profit may be utilised for any or all of the purposes specified in the bye-laws of the societies except for payment of bonus to employees.]
64D[(3) Notwithstanding anything contained in section 18 of this Act, in the case of 64E[Kerala State Cooperative Bank] the term 'member' shall include nominal and associate members, for the purpose of clause (a) of sub-section (2).]
The immovable property acquired by a society through a sale by the sale officer or through any legal proceedings for realisation of loan amount shall be disposed of by the society within seven years from the date of acquisition with prior sanction of the General body and the Registrar.]
2[Provided that, if the immovable property is to be utilized for activities connected with the objectives of the society, it shall seek the prior approval from the Registrar based on the resolution of the general body of the society.]
A society may invest or deposit its funds--
(a) in Government Savings Bank; or
(b) in any of the securities specified in S.20 of the Indian Trust Act, 1882 (Central Act 2 of 1882); or
(c) in the shares or securities of any other society approved for the purpose by the Registrar by general or special order; or
(d) in any bank approved for the purpose by the Registrar; or
(e) in any other prescribed manner.
(1) The Government may, notification in the Gazette, frame a scheme to be called the Cooperative Welfare and Development Scheme for the establishment of a fund under this Act and there shall be established, as soon as may be after the framing of the scheme, a Fund to be called Cooperative Development and Welfare Fund, in accordance with the provisions of this Act and the scheme;
65A[(2) A society shall contribute to the Fund at such rates as may be specified in the scheme.]
(3) There shall be credited to the Fund:-
(a) the contribution to be paid by the Society under sub-section (2); and
(b) any other amount which, under the provisions of the scheme, shall be credited to the Fund.
(4) Subject to the provisions of this Act and the scheme, the Cooperative Development and Welfare Fund shall be utilised for payment of grant or loans to societies for the following purposes, namely:-
(i) for the purpose of safeguarding the interests of the societies against any loss or damage to their assets and properties, despite reasonable precautions to prevent such loss or damage;
(ii) for utilising for the developmental activities of the societies; and
(iii) for any other purpose as may be specified in the scheme.
(5) Subject to the provisions of this Act the scheme may provide for the following matters, namely:-
(i) the time and manner in which contribution shall be made to the Fund by the societies;
(ii) rate of contribution;
(iii) the administration of the Fund;
(iv) the purpose for which the Fund may be utilised for developmental activities of the societies;
(v) the conditions under which the Fund may be expended for payment of reliefs to the societies;
(vi) the manner in which the accounts of the Funds shall be kept; and
(vii) any other matter which is to be provided for in the scheme or which may be necessary or proper for the purpose of implementing the scheme.
(1) The Government may, by notification in the gazette, frame a scheme to be called "the Deposit Guarantee Scheme" specifying the purpose of the scheme and shall be administered in such manner, as may be specified therein.
(2) A society may contribute to the Deposit Guarantee Scheme at such rates as may be provided in the said scheme.
65AA[(3) All societies covered under the Deposit Guarantee Scheme shall enroll and contribute towards the scheme within six months from the date of commencement of the Kerala Cooperative Societies (Amendment) Act, 2013 failing which the societies have no right to accept deposit from depositors and the Registrar shall be competent to issue prohibition order, restraining the society from accepting deposits for such period specified in the order:
Provided that before making such order, the Registrar shall give an opportunity to the chief executive of the society to state his objection, if any, to the proposed action.
(4) Notwithstanding anything contained in sub-section (3) the Registrar may exempt any society for a period up to one year by a general or special order from enrolling such societies under the Deposit Guarantee Scheme with reasons to be recorded:
Provided that if any society violate the prohibition order under sub-section (3) the Registrar shall be competent to demand a sum of rupees five thousand only as penalty. If any society fails to pay such penalty, within two weeks from the date of receipt of demand notice, the Registrar shall be competent to issue direction to the financing bank to recover the amount from the account maintained in the financing bank by the society, or to recover the amount under the provisions of the Kerala Revenue Recovery Act, 1968 (15 of 1968). If the violation is a continuing one, a further penalty of rupees one thousand for every day shall be levied, after the first day during which the violation continues.]
(1) The Government may, by notification in the Gazette, frame a scheme to be called the "Consortium Lending Scheme" for the purpose of providing loans for 1[public purposes and for] infrastructure development to societies, local authorities, development authorities or similar institutions on Government guarantee subject to such terms and conditions, as may be specified in the scheme.
(2) A society may contribute to the Consortium Lending Scheme, at such rates, as may be specified in the scheme.]
(1) The Government may, by notification in the Gazette, frame a scheme to be called the "Cooperative Risk Fund Scheme" for the establishment of a Fund for meeting the loan liability of those members who have availed loans from the co-operative societies and died within the repayment period of such loans.
(2) The types of societies and the types of loans covered by the scheme, the rate and manner of contribution towards the fund by the societies, the manner of administration and utilization of the fund and the maintenance of books of accounts in respect of the fund and its audit shall be such as may be specified in the scheme.]
2[(3) All societies covered under the Cooperative Risk Fund Scheme shall contribute towards the scheme at the rate specified in the scheme within three months from the date of commencement of the Kerala Cooperative Societies (Amendment) Act, 2013 failing which the societies have no right to issue loans to members and general public and the Registrar shall be competent to issue prohibition order, restraining the society from providing loans:
Provided that before making such order, the Registrar shall give an opportunity to the chief executive of the society to state his objection, if any, to the proposed action:
Provided further that if any society violate the prohibition order, the Registrar shall be competent to demand a sum of rupees five thousand only as penalty. If any society fails to pay such penalty, within two weeks from the date of receipt of demand notice, the Registrar shall be competent to issue direction to the financing bank to recover the amount from the account maintained in the financing bank by the society, or to recover the amount under the provisions of the Kerala Revenue Recovery Act, 1968 (15 of 1968).]
(1) The Government may, by notification in the Gazette, frame a scheme to be called "the Co-operative Revival Fund Scheme" for establishing a fund for the purpose of reviving societies which are weaker or remain in dormant position due to certain extraordinary situation by providing financial assistance subject to such terms and conditions to be specified in the scheme and shall be administered in such manner as may be prescribed.
(2) There shall be earmarked to the fund,--
(a) an amount which is not more than fifty percent of the reserve fund, referred to in clause (a) of sub-section (1) of section 56; and
(b) not more than fifty per cent of the Agriculture Credit Stabilization Fund set apart by Agricultural Credit Societies from their net profit; as and when required;
(c) such fund that may be granted by Government from time to time; and
(d) any other amount which under the provisions of the scheme may be credited to the fund.]
A society shall receive deposits and loans only to such extent and under such conditions as may be prescribed or as maybe specified in the bye-laws.
(1) A society shall not make a loan to any person or a society other than a member:
66[66B[Provided that the above restriction shall not be applicable to the Kerala State Co- operative Bank:]
Provided further that, with the general or special sanction of the Registrar, a society may make loans to another society.]
(2) Notwithstanding anything contained in sub-section (1), a society may make a loan to a depositor on the security of his deposit.
66C[(2A) A society shall not sanction loans or advances exceeding the individual maximum borrowing power fixed by the Registrar and as provided in the bye-laws of the society. For any contravention of this provision, the Chief Executive and the Committee of the co-operative society concerned shall be liable for punishment, provided in sub-section (7A) of section 94 of the Act.]
66A[(3) Granting of loans to members or to non-members under sub-section (2) and recovery thereof shall be in the manner as may be specified by the Registrar.]
The valuation of immovable property to be pledged as security to a co-operative society shall be valued by an officer/officers authorised by the Committee in cases where the loan amount is below ten lakhs and where the loan amount exceeds ten lakhs, by a panel of five members consisting of two officers including the Chief Executive Officer of the society and two members of the Committee and an independent valuer authorised by the Committee.]
Societies shall follow the norms, as may be prescribed, while acquiring movable and immovable properties by utilizing the own fund of the society.]
Save as is provided in Ss.58 and 59, the transactions of a society with persons other than members shall be subject to such restrictions, if any, as may be prescribed.
(1) A society shall establish a contributory provident fund for the benefit of its employees, to which shall be credited all contributions made by the employees and the society in accordance with the rules or the Employees Provident Funds Act, 1952 (Central Act 19 of 1952) whichever is more beneficial.
67[Provided that the contributory provident fund established under this sub-section shall not apply to the employees of such society to which the provisions of the Self Financing Pension Scheme framed under sub-section (1) of section 80A are made applicable and such society shall establish a Provident Fund in such manner and subject to such conditions or restrictions, as may be prescribed, for the benefit of such employees;]
(2) A 68[Provident Fund, whether contributory or not] established by a society under sub-section (1)--
(a) shall not be used in the business of the society;
(b) shall not be form part of the assets of the society;
(c) shall not be liable to attachment or be subject to any other process of any Court or other authority;
(d) shall be deposited in the financing bank of the area.
The employees of a society shall be entitled to gratuity at such rates and on such conditions as prescribed.
(1) The Registrar shall supervise or cause to be supervised by a person authorised by him by general or special order in writing in this behalf, the working of every society as frequently as he may consider necessary. The supervision under this sub-section may include an inspection of the books of the society.
(2) The Registrar may, on his own motion, or on the application of a creditor of a society, inspect or direct any 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 on the application of a creditor unless the applicant-
(a) satisfies the Registrar that the debt is a 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 a sum as security for the costs of the proposed inspection as the Registrar may require.
69I[(2A) The Registrar may authorize special team of officers under his control for the inspection of apex, central and federal co-operative societies and all other primary co-operative societies.
(2B) The report of such inspections shall be communicated in writing to the apex, central and federal societies and all primary co-operative societies concerned, within a period of thirty days and the Committee and the chief executive of the society concerned shall be under an obligation to file a para-wise satisfactory compliance report before the Registrar within a period of forty five days from the date of such communication.]
(3) Where the inspection under sub-section (2) is made on the application of the creditor, the Registrar shall communicate the result of such inspection to such creditor.
69F[(4) The Registrar or any person authorised by him under sub-section (l) or sub-section (2) shall at all reasonable time have free access to and have power to inspect the books, records, accounts, documents, securities, cash balance and other properties belonging to the society and may summon any person in possession of or responsible for the custody of such books, records, accounts, documents, securities, cash balance and other properties, to produce the same for inspection at any place at the Headquarters of the society or any branch thereof or where there is no working office for the society, at the office of the Registrar or at the office of any of his .subordinate officers.
(4A) It shall be the duty of every officer and employee of the society to co-operate with and assist in such supervision or inspection, to furnish any information that may be required for the purpose and to produce the books, records, cash balance etc. referred to in sub-section (4), on demand by such officer, failing which it shall be treated as an offence under sub-section (4) of section 94.]
(5) The Registrar or the person authorised by him under sub-section (1) or sub-section (2) may, by order in writing, direct the society or its officers to take such action as may be specified in such order within the time that may be mentioned in such order.
69J[x x x x]
(7) Apex Society or Federal Cooperative Society or a financing bank shall have the right to inspect the books of any registered society which is affiliated to it, through its officers.
(8) An officer of an Apex Society or Federal Cooperative Society or a financing bank, inspecting the books of a society shall at all reasonable times have the access to the books, accounts, documents, securities, cash and other properties belonging to the society and may call for such information, statements and returns as may be necessary to ascertain the financial condition of the society and the safety of the sums lent to it.
(9) An officer referred to in sub-section (8) shall also have power to summon any person in possession of or responsible for the custody of any books, accounts, documents, securities, cash and other properties referred to in that sub-section to produce the same for inspection or verification at any place at the head-quarters of the society or any branch thereof.
(10) Apex Society or Federal Cooperative Society or the financing bank may also report to the Registrar about the action to be taken against the society as a result of the inspection by its officers.
69G[(11) Notwithstanding anything contained in sub-sections (1) and (2) above, the Registrar or his subordinate officers authorized by him under sub-section (1), shall have power to hold an enquiry with necessary records of a society, on any petition received, and to inspect the affairs of a society periodically, in such cases, the inspecting officers shall have the same powers as specified in sub-section (4).
Explanation 1:--The "affairs of a society" for the purpose of this subsection includes, among other things, matters relating to administration, management and the business of a society.
Explanation 2:--The duty of the officers and chief executive of a society and the nature of offences and penalties mentioned in 69H[sub-section (4A)] shall be applicable to this sub-section also.]
Subject to the provisions of the Act and the Rules made thereunder the Registrar may issue general directions and guidelines to any or all of the co-operative societies in furtherance of the purposes of the Act or for implementing Government policies for the benefit of the members and the general public.]
If the Registrar, in the course of any enquiry under Section 65 or on inspection under Section 66 or on audit under section 64 or on the report of Vigilance Officer appointed under section 68A, is satisfied that any officer other than the President, Vice President, Chairman, Vice Chairman and member of the committee of any society has done any act detrimental to the interest of the society or its members and that there is reason to believe that such officer has indulged in misappropriation, manipulation of accounts, forgery, destruction or tampering of records of the society, he may, for the reasons to be recorded in writing issue a direction to the committee of the said society to suspend the officer or officers responsible for the offence forth with.]
2[(1)] Every co-operative society shall file returns, within six months of the closure of every financial year, before the Registrar, containing the following particulars, namely:--
(a) a comprehensive annual report of its activities;
(b) its audited statements of accounts;
(c) plan for surplus disposal as approved by the general body of the co-operative society;
(d) list of amendments to the bye-laws of the co-operative society, if any;
(e) declaration regarding date of holding of its general body meeting and conduct of elections when due; and
4[(f) rectification reports approved by the Committee on audit report and the resolution of the General Body of the society.]
3[(g)] any other information required by the Registrar in pursuance of any of the provisions of this Act or the rules.
5[(2) Every co-operative society shall submit quarterly returns on the credit activities, duly certified by the chief executive of the co-operative society, which will be duly reviewed by the Registrar and the rectification report shall be submitted on the basis of the report evaluated by the Registrar after each quarter. If any society fails to submit the returns on time, the Registrar shall have the power to impose fine not exceeding Ten Thousand Rupees based on the classification and category of the Society as may be prescribed.]
Where an inquiry is held under S.65, or an inspection is held under S.66 on the application of a creditor, the Registrar may, by order, apportion the cost, or such portion of the cost, as he may deem fit, between the society to which the society concerned is affiliated, the society, the member or creditor demanding an enquiry or inspection, and the officers or former officers of the society:
Provided that:--
(a) no order of apportionment of the cost shall be made under this section unless the society or the person sought to be made liable to pay the costs thereunder has had a reasonable opportunity of being heard.
(b) The Registrar shall state in writing the grounds on which the costs are apportioned.
(1) If in the course of an audit, inquiry, inspection or the winding up of a society 2[or on the basis of the report of the Vigilance Officer], 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, has made any payment contrary to the Act and the rules or the bye-laws, or has caused any loss or damage in the assets of the society by breach of trust or wilful negligence or mismanagement or has misappropriated or fraudulently retained any money or other property belonging to such society or has destroyed or caused the destruction of the records, 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 this behalf, to inquire into the conduct of such person.
(2) Where an inquiry is made under sub-section (1), the Registrar may, after giving the person concerned an opportunity of being heard, by order in writing, require him to repay or restore the money or other 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[(3) Where the money, property, interest, cost or compensation is not repaid or restored as per sub-section (2), 3[within a period of sixty days] the Registrar shall take urgent steps to recover such amounts from the concerned persons as arrears of public revenue due on land as specified in section 79 of the Act.]
4[Provided that such period may, at the discretion of the Registrar and for reason to be recorded in writing, be extended from time to time, however that the extended period shall not exceed sixty days.]
(1) The Government shall appoint an officer, not below the rank of Deputy Inspector General of Police, as Vigilance Officer with powers to enquire into and investigate the cases of misappropriation, corruption and any other major irregularities in the society as may be referred to him by the Registrar.
(2) The Vigilance Officer shall conduct the inquiry and investigation in such manner, as may be prescribed.
(3) The Vigilance Officer shall be under the administrative control of the Registrar of Cooperative Societies.
Provided that the powers of the Registrar of Cooperative Societies under this section shall not be conferred on any other person.]
(1) The Government or the Registrar, as the case may be, may forward the cases of misappropriation or irregularities or corruption in the society which comes under the provisions of the Indian Penal Code, 1860 or/and of the Prevention of Corruption Act, 1988, to the Police or Vigilance and Anti-Corruption Bureau, as the case may be, for investigation and further action.
(2) The Registrar shall be the authority to accord sanction for inquiry/enquiry or investigation and also for taking cognizance of an offence under the Prevention of Corruption Act, 1988 against the members of the Committee and/or officers and servants of the society.
(3) In the case of Chief Executive Officers appointed by the Government, the Secretary to Government, Co-operation Department shall be the sanctioning authority.]
(1) Notwithstanding anything contained in any law for the time being in force, if a dispute 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, a past member or deceased member and the society, its committee or any officer, agent or employee of the society; 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 society; or
(e) between a society and the members of a society affiliated to it; or
(f) between the society and a person, other than a member of the society, who has been granted a loan by the society or with whom the society has or had business transactions or any person claiming through such a person; or
(g) between the society and a surety of a member, past member, deceased member or employee or a person, other than a member, who has been granted a loan by the society, whether such a surety is or is not a member of the society; or
2[(h) between the society and a creditor of the society; or]
3[(i) between the co-operative society and its subsidiaries under section 14AA; or
(j) between the members of the partnership formed under section 14B, such dispute shall be referred to the Co-operative Arbitration Court constituted under section 70A in the case of non-monetary disputes and to the Registrar, in the case of monetary disputes; and the Arbitration Court, or the Registrar, as the case may be, shall decide such dispute and no other court or other authority 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 also be deemed to be disputes, 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 the Board of Management or any officer of the society;
Explanation.-- A dispute arising at any stage of an election commencing from the convening of the general body meeting for the election shall be deemed to be a dispute arising in connection with the election.
(d) any dispute arising in connection with employment of officers and servants of the different classes of societies specified in sub-section (1) of S.80, including their promotion and inter se seniority.
(3) No dispute arising in connection with the election of the Board of Management or an officer of the society shall be entertained by the Cooperative Arbitration Court unless it is referred to it within one month from the date of the election.
1[(4) All monetary disputes mentioned in Schedule III to the Act shall be filed within the time limit specified in the said Schedule.]
(1) The Government may, by notification in the official Gazette, frame a scheme to be called the "Kerala Cooperative Ombudsman Scheme" with the object of enabling redressal of complaints relating to deficiency in banking or other services rendered by co-operative societies 73E[x x x x]
(2) The Government may appoint one or more persons as Ombudsman or Ombudsmen to carry out the functions entrusted to them by or under the scheme.
(3) The term of office of the Ombudsman or Ombudsmen, as the case may be, shall be three years from the date of their entering office or 73D[attaining the age of sixty five years], whichever is earlier.
73C[(4) The Ombudsman or Ombudsmen so appointed under sub-section (2) shall be a person or persons having minimum of ten years of Bar practice and having experience and expertise in banking or co-operative field.]
(5) The functions, powers, duties etc. of the Ombudsman shall be such, as may be specified in the scheme.
(6) The Ombudsman shall be under the control of the Government.]
(1) The Cooperative Arbitration Court, on receipt of reference of a dispute under sub-section (1) of Sec.69, shall pass an award 74A[within one year] in accordance with the provisions of this Act and the rules and the bye-laws made thereunder and such award shall, subject to the provisions of Sec.82, be final.
(2) The Cooperative Arbitration Court may, pending award of a dispute referred to it under Section 69, make such interlocutory orders as it may deem necessary in the interests of justice.
(3) The Cooperative Arbitration Court shall have the same powers as are vested in a civil Court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), while trying a suit in respect of the following matters, namely:-
(i) the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath;
(ii) the discovery and production of any document or other material object producible as evidence;
(iii) the reception of evidence on affidavits;
(iv) issuing of any commission for the examination of any witness; and
(v) any other matter which may be prescribed.
(4) The Registrar may on receipt of the reference of a dispute under sub-section (1) of Sec.69--
(a) elect to decide the dispute himself; or
(b) transfer it for disposal to any person who has been invested by the Government with powers in that behalf; or
(c) refer it for disposal to an arbitrator appointed by the Registrar:
Provided that a transfer under clause (b) or a reference under clause (c) shall not be made to a person equal or superior to him in rank.
(5) The Registrar may withdraw any reference transferred under clause (b) of sub-section (4) or referred under clause (c) of that sub-section and he may elect to decide the dispute himself or transfer it to any other person under clause (b) of sub-section (4)or refer it to any other arbitrator under clause (c) of that sub-section.
(6) The Registrar or the person invested with powers in this behalf shall, decide the dispute or the arbitrator shall pass an award 74B[within a period of one year in cases where monetary matters are involved] in accordance with the provisions of this Act and the rules and the bye-laws and such decision or award shall, subject to the provisions of Sec.82, be final. Pending decision or award, the Registrar, such person or the arbitrator, as the case may be, may make such interlocutory orders, as he may deem necessary, in the interests of justice.]
(1) The Government shall constitute such number of Cooperative Arbitration Courts, as are necessary to exercise the powers and discharge the functions conferred on it under this Act.
75B[(2) The presiding officer of the Arbitration Court shall be an officer of and above the rank of a Munsiff-Magistrate of the judicial service.]
75C[Explanation.- For the removal of doubts, it is hereby clarified that the duties performed by the presiding officers of the Co-operative Arbitration Court (Northern) and the Co-operative Arbitration Court (Southern), who were in office at the time of coming into force of the Kerala Co-operative Societies (Amendment) Act, 2023, for the periods from 7th June, 2024 to 23rd June, 2024 and from 7th June, 2024 to 8th September, 2024 respectively shall be deemed to have been done under this Act.]
(3) The Government shall make rules for regulating the procedure and disposal of business of the Cooperative Arbitration Court.
75A[(4) The Government or Registrar shall appoint as many officers and employees as may be necessary, to assist the Cooperative Arbitration Court.]
(5) The officers and employees referred to in sub-section (4) shall continue to be Government servants for all purposes and their terms and conditions of service shall continue to be the same as applicable to them under the Government.]
On the constitution of a Cooperative Arbitration Court, every dispute pending before the Registrar or any person invested with the power to dispose of the dispute by the Government or the arbitrator appointed by the Registrar, in respect of non-monetary disputes, relating to the local area of jurisdiction of the Arbitration Court, shall be transferred to such Arbitration Court and the Court shall dispose of the same as if it were a dispute referred to it under Sec.69.]
(1) If the Registrar, after an inquiry has been held under section 65 or an inspection has been made under S.66 or an receipt of an application made by not less than three-fourths of the members of a society, is of opinion that the society ought to be wound up, he may, after giving the society an opportunity of making its representation and in consultation with the financing bank to which the society is affiliated and the Circle Cooperative Union, by order in writing direct it to be wound up.
(2) The Registrar may on his own motion by order in writing, direct the winding up of a society.
(a) Where it is a condition of the registration of the society that the society shall consist of at least twenty-five members and the number of members has been reduced to less than twenty five; or
(b) Where the society has not commenced working within six months of registration, unless extension of time is granted by the Registrar, or has ceased to work; or
(c) Where the number of actual workers falls below the prescribed limit in the case of a society formed exclusively for the benefit of persons engaged in a particular industry or occupation.
77[(3) If a proposal for revitalisation of a society, in respect of which an order under sub-section (2) has been passed, is received by the Registrar within a period of one year from the date of such order, the Registrar may cancel the same and allow the society to continue to exist:
Provided that this sub-section shall not apply in the case of a society which does not commence functioning within a period of six months from the date of registration.]
(1) Where the Registrar has made an order under Section 71 for the winding up of a society, he shall appoint a liquidator for the purpose and may fix his remuneration.
(2) the 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.
(3) Where an appeal is preferred under Section 78[83] against an order of winding up of a society made under Section 71 such order shall not operate thereafter until it 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 to have authority to take the steps referred to in that sub-section.
(4) Where an order of winding up of a society is set aside in appeal, the property, effects and actionable claims of the society shall re-vest in the society.
(1) Subject to any rules made in this behalf, the whole of the assets of a society in respect of which an order of winding up has been made shall vest in the liquidator appointed under Section 72 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise.
(2) The 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 society by the name of his office;
(b) to determine from time to time the contribution including debts due 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 be assets of the society;
(c) to investigate all claims against the society and subject to the provisions of this Act, to decide questions of priority arising between claimants.
(d) to pay claims against the society including interest upto the date of a 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 whether 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 a 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 to be necessary for the winding up of the affairs of the society;
(h) to carry on the business of the society so 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; and
(j) 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 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 upon and to take any security for the discharge of any such call, liability, debt or claim and give a complete discharge in respect thereof.
79[(2A) The liquidator shall complete the winding up proceedings within a 79A[two years] from the date of his appointment under sub-sec.(1) of Sec.72.
Explanation.-- In computing the period of 79A[two years], the period during which an appeal, if any, preferred against an order of winding up of a society under Sec.71 is pending, shall be excluded.]
79B[Provided that if the winding up proceedings cannot be completed within a period of two years from the date of appointment of liquidator under sub-section (1) of section 72, the liquidator shall submit a report to the Government through the Registrar stating the procedural constraints which prevent him to complete the proceedings and in such cases issue the final order with the permission of the Government, within the time stipulated by the Government as may be prescribed:
Provided however that such extension shall not exceed a period of one year.]
(3) When the affairs of a 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.
When in respect of a society which has been ordered to be wound up under Section 71 no liquidator has been appointed under Section 72 after two months from the date of such order, or if an appeal has been filed against the order of winding up, from the date of confirmation of the order in appeal or where the affairs of a society in respect of which a liquidator has been appointed under Sec. 72 have been wound up or which the Registrar is satisfied that the final winding up of the affairs of the society is not possible on account of the destruction of the records, the Registrar shall, by order in writing, cancel the registration of the society and society shall be deemed to be dissolved and shall ceased to exist as a corporate body from the date of such order of cancellation.
Notwithstanding anything contained in this Act, in the case of an insured Cooperative bank:--
(i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or reorganisation), of the bank may be made only with the previous sanction in writing of the Reserve Bank of India;
(ii) an order for the winding up of the bank shall be made by the Registrar if so required by the Reserve Bank of India in the circumstances referred to in Section 13D of the Deposit Insurance Corporation Act, 1961 (Central Act 47 of 1961);
(iii) if so required by the Reserve Bank of India in the public interest or for preventing the affairs of the bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of the bank, an order shall be made for the supersession (removal) of the committee of management or other managing body (by whatever name called) of the bank and the appointment of an administrator therefore for such period or periods, not exceeding five years in the aggregate, as may from time to time be specified by the Reserve Bank of India, and the Administrator so appointed shall, after the expiry of his term of office, continue in office until the day immediately preceding the date of the first meeting of the new committee;
(iv) no appeal, revision or review shall lie or be permissible against an order referred to in clause (i), (ii) or (iii) made with the previous sanction in writing or on the requisition of the Reserve Bank of India and such order or sanction shall not be liable to be called, in question in any manner;
(v) The liquidator or the insured co-operative bank or transferee bank, as the case may be, shall be under an obligation to repay the Deposit Insurance Corporation established under the Deposit Insurance Corporation Act, 1961, in the circumstances to the extent and in the manner referred to in Section 21 of that Act.
Explanation.-- For the purposes of this section:-
(i) "co-operative bank" means a bank as has been defined in the Deposit Insurance Corporation Act, 1961;
(ii) "insured co-operative bank" means a society which is an insured bank under the provisions of the Deposit Insurance Corporation Act, 1961;
(iii) "transferee bank" in relation to an insured co-operative bank, means a co-operative bank:
(a) with which such insured co-operative bank is amalgamated; or
(b) to which the assets and liabilities of such insured co-operative bank are transferred; or
(c) into which such insured co-operative bank is divided or converted under the provisions of Section 12 or Section 14 of the Kerala Cooperative Societies Act, 1969 (21 of 1969).
The Kerala State Cooperative Agricultural and Rural Development Bank and all primary co-operative societies/banks may open branches in their area of operation with the prior written permission of the Registrar.]
80C[(2) All primary credit societies including Primary Agricultural Credit Societies may open branches in their area of operation with the prior written permission of the Registrar.]
1[(1)] Notwithstanding anything contained in section 66, the Registrar shall inspect or cause to inspect the "affairs" of all apex, federal and central societies every year and the power of inspecting officers shall be as specified under sub-section (4) of section 66.
Explanation:-- Inspection conducted under this section shall be in addition to and not in derogation of the inspection conducted under any other law for the time being in force.
2[(2) The Registrar shall suggest remedial action to Government to restructure the activities, if necessary, based on the report of inspection.]
It shall be the duty of the chief executive of a society to supply confirmation certificate correctly and within the time limit required by the auditor in respect of any accounts maintained in that society by another society in whose favour the Auditor requires certificate.
Acceptance of deposits and lending of money by all co-operative societies and banks shall be in such manner, as may be prescribed.
Notwithstanding anything contained in any Act or Rules, no Authority or Commission, other than the Government or Registrar, shall have the power to write off agricultural or non-agricultural debts of borrowers of any society.
Every co-operative society shall establish a library:
Provided that nothing contained in this provision shall apply to a society which is working on loss for a continuous period of five years.
(1) Notwithstanding anything contained in this Act or in any other law for the time being in force, the Registrar shall order the amalgamation of District Cooperative Banks in Kerala with the Kerala State Cooperative Bank on the basis of the resolution passed by the general body as provided under Section 14A of this Act.
80BB[(a) if the general body of a District Cooperative Bank has not passed the resolution under Section 14A, the Registrar may, after consulting Reserve Bank of India, order merger of such District Cooperative Bank with Kerala State Cooperative Bank, on public interest. No order shall be passed under this clause unless,--
(i) a copy of the proposed order of merger has been sent to the member society or member societies concerned by registered post and published the same in two vernacular dailies having wide circulation in the district in which the society situates, for their objections or suggestions;
(ii) the Registrar shall consider the objections/suggestions, if any, received from the society or societies concerned or from any member or creditor of such society or societies within such period, being not less than fifteen days from the date of posting of the proposed order of merger, as may be specified by the Registrar in this behalf;
(b) the Registrar may after considering the objections/suggestions referred to in sub-clause (ii) of clause (a), make such modifications, in the proposed order as he may deem fit and the order shall contain such incidental, consequential and supplemental provisions as the Registrar may deem necessary, to give effect to the same;
(c) a member or creditor who has objected the proposed order under clause (b) shall have the option of withdrawing his share and/or deposits or close loans, as the case may be, on application, which shall be made to the society, to which its share, deposit or outstanding loan stands allocated, within a period of thirty days from such order;
(d) on merger all other relevant provisions in this chapter shall apply mutatis mutandis to the entities merged under clause (a).]
80BC[(1A) On and from the date of the passing of the order of merger by the Registrar under sub-section (1)(a), all the assets and liabilities of the District Cooperative Bank as it stood immediately before the order of merger shall, without any further act, instrument or deed, stand transferred to and vested in the Kerala State Cooperative Bank.]
(2) With the prior approval of the Government the Registrar shall bring into effect the scheme of amalgamation, proposed by the Kerala State Cooperative Bank which is to be presented to the transferor banks.
(3) On and from the date of amalgamation, the shares held by the members of the transferor banks shall be deemed to be the shares of the transferee bank as such:
Provided that the value of shares shall be on the basis of face value of shares held by the members of the transferor banks.
(4) Notwithstanding anything contained in Section 15 of this Act, on and from the date of amalgamation of the transferor banks and the transferee bank, the transferor banks shall cease to exist and its registration shall stand cancelled:
Provided that no new Registration Certificate is required for the transferee bank.
(5) The existing Board of Directors of transferor banks and transferee bank shall cease to exist on the date of amalgamation and the Government shall nominate an interim Board consisting of not more than three members for a period not exceeding one year from the date of amalgamation or till a newly elected Board of Directors takes charge, whichever is earlier.
(6) The interim board shall consist of the following members, namely:--
| (i) | an officer not below the rank of Secretary to Government | Chairperson, Ex-officio |
| (ii) | The Managing Director/Chief Executive Officer of the Kerala State Co-operative Bank | Member, Ex-officio |
| (iii) | an officer not below the rank of Additional Secretary to Government in Finance Department | Member, Ex-officio |
Notwithstanding anything contained in Chapter IX 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 society by order in writing, direct the payment of any debt or outstanding demand due to the society by any member or past member or deceased member, by sale of the property or any interest therein, which is subject to a charge under sub-section (1) of section 35;
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 of the application and has failed to pay the debt or outstanding demand within thirty days from the date of such service.
Every order made under sub-section (2) of section 68 1[or every order of the Ombudsman, provided under section 69A, or an order] or under section 75 every decision or award made under Section 70, every order made by the liquidator under section 73 and every order made by the Tribunal under Section 82, section 84, section 85 or section 86 and every order made under section 83 shall, if not carried out-
(a) on a certificate signed by the Registrar or any person authorised by him in this behalf, be deemed to be a decree of a civil Court and shall be executed in the same manner as a decree of such Court; or
(b) where the order is for the recovery of money, be executed according to the law and under the rules for the time being in force for the recovery of arrears of public revenue due on land:
Provided that any application for such recovery shall be made--
(i) to the Collector and shall be accompanied by a certificate signed by the Registrar or by any person authorised by him in this behalf;
(ii) within twelve years from the date fixed in the order, decision or award and if no such date is fixed, within twelve years from the date of the order, decision or award, as the case may be, or
(c) be executed by the Registrar or any other person subordinate to him empowered by the Registrar in this behalf, by the attachment and sale or sale without attachment of any property of the person or a society against whom the order, decision or award has been obtained or passed.
The Registrar or any person empowered by him in this behalf shall be deemed, when exercising any power under this Act for the recovery or 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, to be a civil Court for the purposes of Article 136 of the Schedule to the Limitation Act, 1963 (Central Act 36 of 1963).
If the Registrar is satisfied on an application, report, inquiry, or otherwise, that any person with intent to delay or obstruct the enforcement of any order, decision or award that may be made against him under the provision of this Act:-
(a) is about to dispose of the whole or any part of his property; or
(b) is about to remove the whole or any part of his property from the jurisdiction of the Registrar, the arbitrator, or the liquidator, as the case may be, he may, unless adequate security is furnished, by order in writing direct the attachment of the said property, any such attachment shall have the same effect as if made by a competent civil Court.
(1) All sums due from a society or from an officer or member or past member or deceased member of a society as such to the Government, including any costs awarded to the Government under any provision of this Act may, on a certificate issued by the Registrar 80C[or Director of Cooperative Audit] in this behalf be recovered in the same manner as arrears of public revenue due on land.
(2) Sums due from a society to the Government and recoverable under sub-section (1) may be recovered first, from the property of the society and 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 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 26.
(1) The Government shall classify the societies in the State according to their type and financial position.
(2) The Government shall, in consultation with the 80D[Registrar] fix or alter the number and designation of the officers and servants of the different classes of societies specified in sub-section (1).
(3) The Government shall, 80E[x x x x] make rules 81[either prospectively or retrospectively] regulating the qualification, remuneration, allowances and other conditions of service of the officers and servants of the different classes of societies specified in sub-sec.(1).83D[The appointment shall be regularised only after verifying his/her character and antecedents on subsequent police verification, as may be prescribed.]
82[(3A) Notwithstanding anything contained in this Act or the rules made or orders issued thereunder or in the bye-taws of any society relating to the recruitment and conditions of service of officers and servants of societies, all appointments of officers and servants of the societies 83E[except the chief executive of the societies] mentioned in the 82A[Schedule I] for which direct recruitment is resorted to shall be made from a select list of candidates furnished by the Kerala Public Service Commission 82AA[and in making such recruitment the reservation principles under rule 14 to 17 of the Kerala State and Subordinate Service Rules, 1958 shall be followed]. 83F[The appointment of Chief Executive of apex societies shall be made by the Government after fixing qualifications.]
82AA[(3AA) Notwithstanding anything contained in this Act or any other law, or judgment or order of any court, all appointments already made on the advice by the Kerala Public Service Commission following the reservation principles under rule 14 to 17 of the Kerala State and Subordinate Service Rules, 1958 to the societies mentioned in the schedule for which direct recruitment shall be resorted to shall be deemed to have been validly done as if such provisions were in force at that time.]
(3B) All appointments made by direct recruitment to the societies referred to in sub-section (3A) or on after the 25th day of April 1995 and before the date of publication of the Kerala Cooperative Societies (Amendment) Ordinance, 1995 (Ordinance No. l0 of 1995) shall be invalid].
83[(4) Notwithstanding anything contained in sub-section (1) or sub-section (2), ten per cent of the posts of employees of every society shall be reserved for appointment from persons belonging to the scheduled castes and scheduled tribes where the method of appointment to such posts is by direct recruitment.]
83A[(5) Notwithstanding anything contained in sub-section (1) or (2), 83G[four per cent] of the total posts of employees of every society shall be reserved for physically handicapped persons having disability of forty per cent or above, as certified by the medical board and the procedure of appointment shall be such as may be prescribed:
Provided that in societies where there are more than ten and less than 83H[twenty five] employees including cadre and sanctioned posts, there shall be reserved a minimum of one employee belonging to physically handicapped persons.
83B[(6) Government shall have power to fix or alter the maximum and minimum limit of establishment expenses of co-operative societies including the pay and allowances and other benefits of employees of co-operative societies:
Provided that societies run on net loss can give pay and allowances to its employees below the minimum limit fixed by the Government.]
(7) Notwithstanding anything contained in the bye-laws, a society shall not pay bonus to its employees exceeding the amount and the rate fixed by the Government or the Registrar from time to time.
(8) Government shall, by order, frame uniform Service Rules and Conduct Rules for the employees of any or all classes of the co-operative societies.
(9) Suspension and disciplinary action in relation to an officer, employee or servant of a co-operative society shall be such, as may be prescribed.]
83C[(10) The Government may, on mutually agreed terms and on application of a society, depute a Government servant to the service of the society for the purpose of managing its affairs and the Government servant so deputed shall exercise such powers and perform such duties as may be prescribed.]
(1) The Government may, by notification in the Gazette, frame a Self Financing Pension Scheme for the establishment of a Pension Fund for payment of pension to the employees of the societies 84A[and to the employees of the Boards constituted under the provisions of this Act] 85A[and for the employees of Co-operative Unions in the State] in the manner provided therein and may appoint different dates for the application of the scheme to different classes of societies 84B[or boards].
85[(1A) The Self Financing Pension Scheme framed under sub-s. (1) may also provide for payment of pension from the pension fund, at such rates and subject to such conditions and restrictions as may be specified therein, to persons retired from service of any society during the period between 1st January, 1974 and 3rd June,1993 and are alive.]
(2) The pension fund established under the Self Financing Pension Scheme framed under sub-section (1) shall vest in, and be administered by, such body or authority as may be specified in the said scheme.]
86B[(1) Notwithstanding anything contained in this Act or the rules made thereunder or in the bye-laws of any society relating to the recruitment of officers and servants thereof, but subject to section 80BB, the Government shall, by notification in the Gazette, constitute a Co-operative Examination Board for the conduct of written examination for all direct recruitment to the posts of and above the category of Junior Clerks in all co-operative societies, Boards and other institutions under the control of the Registrar:
Provided that the Registrar may, taking into consideration the financial capacity and viability of such society, exempt any society or class of societies from the provisions of this sub-section, in the manner as may be prescribed.]
86A[(1A) The Cooperative Service Examination Board shall also conduct competitive or qualifying examinations if any for promotion of employees in the societies, in such manner as may be prescribed.]
(2) The Examination Board shall consist of not more than three members and the term of the Board shall be five years. The powers and functions and other conditions of appointment of the members of the Board and the procedures to be followed by the Board for the conduct of examination and the preparation of list of candidates to be interviewed for appointment shall be such as may be prescribed.
(3) All appointments shall be made by the committee concerned from the list of candidates after conducting an interview of the candidates and making a select list therefrom in such manner as may be prescribed.
(4) Notwithstanding anything contained in sub section (3A) of section 80 and in sub section (1) of this section, the committee of a society may, with the prior approval of the Registrar, appoint persons who are professionally or technically qualified or persons with experience and expertise to posts requiring such technical or professional qualifications on contract basis or by the method of deputation for such period, but not exceeding five years, as may be specified.]
(1) Notwithstanding anything contained in this Act or the rules made thereunder Government shall, by notification in the Gazette, constitute Recruitment Committees which shall be the competent committees for the entire selection and recruitment process of all permanent employees of the Regional Cooperative Milk Producers' Union.
(2) The Recruitment Committee for undertaking the selection process of all employees other than the Managing Director shall consist of not more than eight members. The Secretary to Government in charge of Dairy Development Department shall be the Chairman of the Committee and the Managing Director of the apex body of the Regional Cooperative Milk Producers' Union, appointed by the Government, shall be the Convenor of the Committee. The other members shall be as follows, namely:-
(i) Registrar of Dairy (Cooperatives);
(ii) Chairman of the Apex Society;
(iii) Joint Director (General), Dairy Development Department or Joint Secretary to Government, Dairy Development Department, Government of Kerala;
(iv) An expert from Dairy Industry, nominated by the Government;
(v) Chairman, Regional Cooperative Milk Producers' Union;
(vi) Managing Director, Regional Cooperative Milk Producers' Union.
(3) The Recruitment Committee for undertaking the selection process of the Chief Executive or the Managing Director of the Regional Cooperative Milk Producers' Union shall consist of not more than four members. The Secretary to Government in charge of Dairy Development Department shall be the Chairman of the Committee and the Chairman of Regional Cooperative Milk Producers' Union shall be the Convenor of the Committee. The other members shall be the Managing Director of the apex society and an expert from dairy Industry, nominated by the Government.]
(1) The Government may, by notification in the Gazette, frame a Scheme to be called the Kerala Co-operative Employees' Welfare Scheme for the establishment and management of a Fund by name "the Kerala Co-operative Employees' Welfare Fund" and there shall be established, as soon as may be, after framing of the Scheme, a fund in accordance with the provisions of this Act and the Scheme.
(2) The Welfare Fund established under the Scheme shall vest in the Kerala State Co-operative Employees' Welfare Board and be administered by such body or authority as may be specified in the Scheme.
(3) Subject to the provisions of this Act, the Scheme may provide for the following matters, namely:--
(i) the management and administration of the Kerala State Co-operative Employees' Welfare Fund;
(ii) powers and functions of the authority or body to be constituted thereunder; and
(iii) the composition and pattern of the establishment set up of the Kerala State Co-operative Employees' Welfare Board constituted under the Scheme.]
(1) The Government shall, by notification in the Gazette, constitute a Board to be called "the Kerala State Co-operative Employees' Welfare Board" for implementing the welfare schemes for the regular employees, commission agents and the persons working in the capacity of any other name on commission basis in a Co-operative society registered or deemed to be registered under this Act and coming under the administrative control of the Registrar of Co-operative Societies as well as other departments of the State Government in accordance with the provisions of this Act and the Scheme.
(2) The Board constituted under sub-section (1) shall provide for the constitution of a Welfare Fund and specify therein, the manner in which its fund Shall be raised and administered for the welfare of the employees and the rates of contribution to be paid by the employees and the co-operative societies towards the fund.
(3) The Board may provide money and other aids to the employees in their indigent conditions and for the following purposes, namely:--
(i) for the payment of financial assistance to the family of the deceased employees;
(ii) for the payment of medical assistance to the employees who have undergone treatment for diseases to be specified therein;
(iii) for refund of the contributions made by the employees oh their retirement or relief on other grounds;
(iv) for the grant of advances to the employees for meeting their medical expenses;
(v) for awarding cash prizes to the children of employees at such rates and subject to such conditions as may be specified therein; and
(vi) for any other purposes provided for in the Scheme or which may be found necessary or proper for the implementation of the Scheme.
(4) The Government may make rules with regard to the terms and conditions of the services of the employees of the Kerala State Co-operative Employees' Welfare Board.
(1) Notwithstanding anything contained in the Rules for the constitution and administration of the Kerala State Co-operative Employees' Welfare Board issued under G. O. (Rt.) No. 383/86/Co-op. dated 30th September, 1986, on and from the date of constitution of the Kerala State Co-operative Employees' Welfare Board under sub-section (1) of Section 80D, all assets and liabilities of the existing Kerala State Co-operative Employees' Welfare Board shall, be transferred to the Kerala State Co-operative Employees' Welfare Board constituted under the said sub-section.
(2) On and from the date of constitution of the Kerala State Co-operative Employees' Welfare Board under sub-section (1) of Section 80D, the existing Kerala State Co-operative Employees' Welfare Fund constituted under G. O. (Rt.) No. 383/86/Co-op. dated 30th September, 1986 shall vest in the Kerala State Co-operative Employees' Welfare Board constituted under the said sub-section and the control and supervision of the existing fund shall be with the said Board.]
(1) The Government shall constitute a single member Tribunal to exercise the powers and discharge the functions conferred on the Tribunal under this Act.
(2) A person shall not be qualified for appointment as a member of the tribunal unless he is or has been holding the post of a District Judge in the State.
(3) The term, salary and allowance and other conditions of service of the member shall be such as may be decided by Government from time to time.
(4) The Government shall make rules for regulating the procedure and disposal of the business of the Tribunal.
Every proceeding pending before the Tribunal immediately before the commencement of this Act shall stand transferred to and will be decided by the Tribunal constituted under this Act:
Provided that all such proceedings relating to orders passed by the Registrar under Ss.32 and 33 of the Act, shall be sent to the Government for their decision.
Explanation.-- 'Proceeding' includes any appeal, revision petition or application for review].
88[(1) Any person aggrieved by
(a) an award of the Cooperative Arbitration Court, under sub-section (1) of Section 70; or
(b) an order of the Registrar made under clause (ii) of sub-section (8) or clause (ii) of sub-section (9) of Section 14; or
(c) any decision of the Registrar made under sub-section (6) of S.70; or
(d) any decision under sub-section (6) of S.70 of the person invested with powers in that behalf, by the Government; or
(e) any award of the Arbitrator under sub-section (6) of S.70; may, within sixty days from the date of such decision or award, as the case may be, appeal to the Tribunal, may pass such orders on the appeal as it may deem fit]
88A[(1A) The Tribunal shall pass an order under sub-section (1) within six months with direction to communicate the copies thereof within fifteen days to the parties thereof.]
(2) An order passed by the Tribunal under sub-section (1) shall be final.
Subject to the provisions of this Act, a Cooperative society which has as its object the promotion of the economic interest of its members or of the interests of the public in accordance with Cooperative principles, or a society established with the object of facilitating the operations of such a society, may be registered under this Act.
21A[Provided that no co-operative society shall be registered if it is likely to be economically unsound, or the registration of which have an adverse effect on development of co-operative movement.]