PART II—Section 3—Sub-section (ii)

1 · , 1961 (35 of 1961) , the Central Government hereby extends t o the Union 1 territory of Dadra and Nagar Haveii the Gujarat Co-operative Societies Act , 196! (Gujarat Act No . X of 1962) , as at present in force In the State of Gujarat , subject to the following modifications , namely:—

1 · . (1) Any reference in the Act to a law not in force , or to a functionary not an existence , in the Union territory of Dadra and Nagar Haveii shall be construed ,as a refereiice to the corresponding law in force , or to the corresponding functionary in existence , in that Union territory:

2 · . In section 1 , for sub-section (3) , the following sub-section shall be substituted , namely:—

3 · . In section 2—·

4 · . In sub-section (2) of section 14 , for the words "State Co-operative Council", . J he word 'Administrator " shall ' be substituted .

5 · . In clause (d) of sub-section (1) of section 22 , in the first paragraph of section 29 and in section 43 , for the words "State Government" , the >*s/ords; "Central Government " shall be substituted .

6 · . In sub-section (1) of section 49,—

7 · In Chapter V and in sections 80 , 82(3) , 36(5) (i) and 95(2) . for the words -"State Government" , wherever they occur , the words "Central Government " shall' be substituted .

3 · . In section 66 . in sub-section (2) , the words 'to contribution to the educa -tional fund of such federal co-operative society as the State Government may ^ t.y notification in the Official Gazette specify as "the Gujarat State Co-operative Union " to the payment of rebate on the basis of support received from members and persons who are not members to its business and subject to the prescribed: conditions to payment of honoraria, ' shall be omitted .

9 · . Section 69 shall be omitted

10 · . In section 70 , the words and figures "and for the educational fund as provided in section 60, " shall be omitted , and for clauses (a) ancl (b) , the words "of the Administrator " shall be substituted ,

11 · . In section 71 . in sub-section (2) . for the words "State Co-operative Council 1

12 · . In section 81 , for the word "administrator " or "administrators " wherever it occurs , the words "Special Officer " or "Special Officers", , as the case may be. . a hall be substituted .

13 · . In section 90 , in sub-section (1) , for the words "Consolidated Fund of the Jltate" , the words "Consolidated Fund of India " shall be substituted .

14 · . In the proviso to section 103 and in section 105 , for the words "the Collec -tor" , wherever they occur , the words "the Mamlatdar " shall be substituted .

15 · . In section 106, —

17 · . In section 116. —

13 · . In sections 119 , 120 and 141 , for the words "State Government " wherever they occur , the words "Central Government " shall be substituted ,

19 · . In section 130 , for the word "Collector" , the word "Mamlatdar " an d for the word "Commissioner " the words "Collector . Dadra and Nagar Haveli " shall be substituted .

20 · . In section 139 , in sub-section (3) , for the words and figures "It shall be lawful for the Collector to take precautionary measures authorised by sections 140 to 144 of the Land Bevenue Code" , the words and figures "It shall be lawful for the Mamlatdar to take the precautionary measures authorised under subsection (4) of section 10b' " shall be substituted .

21 · . In clause (i) of sub-section (1) of section 147 , for the words "State Gov -ernment" , the words "Central Government , Administrator " shall be substituted .

22 · . In sub-section (1) of section 150 , for the words "Gujarat State Co-operative Tribunal" , the words "Dadra and Nagar Haveli Co-operative Tribunal " shall b substituted , ·

23 · . Section 15S shall be omitted .

24 · . In section 160 . for the words "State Co-operative Council" , the word 'Administrator " shall be substituted .

25 · . In section 162. in clause (b) . the words "or to any panchayat constituted under any law relating to panchayats for the time being in force " shall be omitted ,

26 · . In section 163 —

27 · . In section 164 , for the words "an administrator" , the words "Specia ^Officer" shall be substituted .

28 · . In section 163 , sub-sections (4) and (5) shall be omitted ,

29 · . Section 169 shall be omitted .

1 · . Short title , extent anil commencement. — — (I) This Act may be called the'* 1

2 · . Definitions.—In this Act , unless the context otherwise requires,—

4 · . Societies which may be registered,-—A society , which has as _ _ its object the promotion of the economic interests or general welfare of its members , or of the public , in accordance with co-operative principles , or a society established with the object of facilitating the operations of any such society , may be registered under this Act:

5 · . Registration with rimited or unlimited liability.—A society may be registered with limited or unlimited liability .

6 · . Conditions of He gist ration.—(1) No society other than a federal society shall be registered under this Act unless it consists of at least ten persons (each of such persons being a member of different family) , who are qualified to be members under .this Act and who reside in the area of operation of the society .

7 · . Fmver to exempt societies from eoadiiioiis as io registration.—Notwithstanding anything contained in this Act , the Administrator may , by special order in each case , exempt subject to such conditions , if any , as he may impose , any society from any of the requirements of this Act as to registration ,

8 · . Applfeatioa for registration,—(1) For the purposes of registration , an application shall be made to the Registrar in the prescribed form , and shall be accom -panied by rour copies of the proposed by-laws of the society . The person by ·whom , or on whose behalf, f, such application is made , shall furnish such informa -tion in . regard to the society , as the Registrar may require .

9 · . Registration and provisional registration , certificate of registration.— (1) On receipt of an application for registration from a society—

10 · . Register of societies.—The Registrar shall maintain a register in the prescribed form of all societies registered or deemed to be registered under this Act .

11 · . Power of Registrar to decide certain questions.—When , any question arises whether for the purpose of the formation or registration or continuance of a society or the admission of a person as a member of a society under this Act a person is an agriculturist or a non-agriculturist , or whether any person Is a resident in a town or village or group of villages , or whether two or more villages shall be considered to form a group , or whether any person belongs to Eniy particular tribe , class or occupation , the question shall be decided by the Registrar .

12 · . Classification of yocielies.—The Registrar may classify all societies in such manner , and into such classes , as he thinks fit; and the classification of a society under any he&el of classification by the Registrar shall be final.

13 · . Amendment of by-laws of society.— (1) No amendment of the by-laws of a society shall be valid until registered under this Act . For t\\". purpose of registration of an amendment of the by-laws , a copy of the amendment passed , in the manner prescribed , at a general meeting of the society , shall be forwarded to the Registrar .

14 · . Power to direct amendment of by-laws.—(1) If it appears to the Registrar that an amendment of the by-laws except in respect of the name or objects cf a society is necessary or desirable in the interest of such society , he may call upon the society , in the prescribed manner , to make the amendment within such time.' as he may specify .

15 · . Change of name.—(1) Subject to the provisions of the rules a society may , fey resolution passed at a general meeting , and with the approval of the Registrar* change its name but such change shall not affect any right or obligation of the society , or of any of its members , or of any of the persons who have ceased to be members; and any legal proceedings pending before any person , authority or court may be continued by or against the society , under its new name ,

16 · . Change of liability.—(.1) Subject to the provisions of this Act and . the rules, , a society may by passing a resolution and by amending its by-laws , change th e form or extent of its liability .

17 · . Amalgamation , transfer , division or conversion of societies,—(1) Subject to the provisions of the rules and the previous sanction of the Registrar a societymay , bv resolution passed by two-thirds majority of the members present and voting at a special general meeting held for the purpose , decide —

13 · , Cancellation of registration of amalgamated , divided or converted societies. — Where two or more societies have been amalgamated

19 · . Reconstruction of societies.—Where a compromise or arrangement is; proposed—

20 · . Cancellation of registration.—(I) The Registrar shall mak e an order cantelling the registration of a society if it transfers the whole of its assets and liabilities to another society , or amalgamates with another society , or divides itself into two or more societies , or if its affairs are wound up or it has not commenced business within a reasonable time of its registration or has ceased to function .

21 · . Partnership of societies.—<] j Any two or more societies may

22 · Person who may become member.—(1) Subject to the provisions of section ·25 , no person shall be admitted as a -member of a society except the following , -ihat is "to say -

24 · Ousn membership.—U) No society of such class as may be prescribed shall , without sufficient cause , refuse admission to membership to any person duly qualified therefor under the provisions of this Act and its by-laws .

25 · Nominal , associate and sympathiser member,—(1) Notwithstanding anything contained In section 22 , a society of such class as may be prescribed may admit any person as a nominal , associate , or sympathiser member:

26 · Cessation Of membrsrahipr-A person shall cease to be a member of a society on Ms resignation from the membership thereof being tendered m writing.to the -ocietv arid accented bv the society or on the transfer of the whole of his share or fnterSt^rth e society to another member , or on his death , or removal or expulsion from the society:

27 · . No rights of membership to be exercised till due payments arc made — Iso person shall exercise the rights of a member of a society , until he has made such payment to the society in respect of membership , or acquired such interest m the society , a s may be prescribed by the rules , or the by-laws of such society .

28 · Voting powers of members.—(1) No member of anv society shall have

29 · Restrictions of holding on shares—In any society , no member other than the Central Government or a society , shall hold more than such portion not exceeding one fiith of the total share capital of the society as may be prescribed:

30 · . Restrictions on transfer of share or interest.—CI) Subject to the provisions

31 · . Transfer of interest on death of memher.—<1)

32 · Share or interest not liable to attachment—-The share or interest of a member in the capital of a society , or in the loan-stock issued by a housing f n ^ff m in the funds raised by a society from its members by way of savingsdenSfts sha 1 not be hable to attachment or sale under any decree or order oi a Court for or S? respect of any debt or liability inure d by the member; and accordingly neither a Receiver under the Provincial Insolvency Act 1920 V oi 1920) no any such person or authority under any corresponding law for th e time being in force , shall be entitled to or have any claim on such share or interest .

34 · Liability of person who has ceased to *e _ _ member.—(1) Where a person has ceased to be a member of a society under section 26 ,

35 · Insolvency of members.—Notwithstanding anything contained in the Pro * vincfal Insolvency Act . 1920 . V of 1920 , or any corresponding law fo the me fefeuin force the dues of a society from a member , in insolvency pioceedings «S/bSfJhafi%H k fa order of' f' priority next to his dues , to Government or to a local authority .

36 · . Sxpnlsion

37 · . Societies to be bodies corporate.—A society on its registration shall be a body corporate by the name under which it is registered , with perpetual succession and a common seal , and with power to acquire , hold and dispose of property , to enter into contracts , to institute and defend suits and other legal proceedings , and to do all such things as are necessary for the purpose for which at is constituted .

33 · . Register of members.—·(!) Every society shall keep a register of its members , and enter therein the following particulars , that is to say,—

40 · . Copy of an Act , etc. , to be open to inspection.—Every society shall keep , at rthe registered address of the society , a copy of this Act and the rules and of its by-laws , and s list of members , open Lo inspection to the public , free of charge , during office hours or any hours rbced by the society therefor .

41 · . Admissibility 01 copy of entry as evidence.— (1) A copy ul ' any entry in any book , register ot list , regularly kept in the course of business and in the possesion of a society shall , if duly certified in such manner as may be prescribed , ·be admissible in evidence ©i the existence of the entry , an d shall be admitted as evidence of the matters and transact ions therein recorded in every case where , an d ,ro the same extent to which , the original entry would , if produced , have been -admissible to prove such matters .

43 · . Power to exempt front taxation.—The Central Government , by notification in the Official Gazette may , in the case of any society or class of societies , remit —

44 · . Restriction on borrowings.—A society shall receive deposits and loans frommembers and other persons , only to such extent , and under such conditions , as ma y be prescribed , or specified by the by-laws of the society .

45 · . Restrictions on making loans.—(1) No society shall make a loan to an y

46 · . Restrictions on other transactions with non-members.—Save as is provided

47 · . Charge and set off in respect o:f share or interest of member.—In respect of any debt to a society by any member thereof , the society shall have a charge upon the share or interest of such member in the capital of the society , upon the 'deposits . of such member with the society and upon any dividend , rebate or profits payableto such member: and the society may set off any sum credited or payable to such . member in or towards the payment of any such debt:

48 · . Prior claim of society.— (1) Notwithstanding anything contained in any other law for the time being in force , but subject to any prior claim of Government in respect of land revenue or any money recoverable as land revenue and to1 the provisions of section 60 and 61 of the Code of Civil Procedure , 1908,—

49 · . Charge on inimoyahle property of members borrowing from certain societies.—(1) Notwithstanding anything contained in this Act or in any other law for the time being in force,—·

50 · . Deduction from salary to meet society's claim in certain cases,—(1) A -member of a society may execute an agreement in favour of the society , providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer , such amount as may be specified in the agreement , and to pay to the society the amount so deducted iti satisfaction of any debt or other demand of the society against the member .

59 · . Disposal of share capital and dividend , etc.—(1) All moneys received by an Apex society in respect of the redemption of shares of other societies purchased out of the moneys in the Principal State Partnership Fund , or by way of dividends or otherwise or by way of interest , dividend or otherwise oh the balance on that fund shall be credited to that Fund .

81 · . Principal or Subsidiary State Partnership Fund not to form part of assets.— Any amount a t the credit of a Principal State Partnership Fund or a Subsidiary State Partnership Fund shall not form part of the assets of the Apex society or the Central society , as the case may be .

62 · . Agreement by Central Government an d Apex societies.—Subject to th e

63 · . Other forms of State nid to societies.—Notwithstanding

51 · . Direct partnership of Central Government in societies.—The Central Government may subscribe directly to the share capital of a society with limited liability .

53 · . Principal Stats Partnership Fund.—(1) An Apex society shall , with the moneys provided under section 52 establish a Fund to b e called the 'Principal Stale " Partnership Fund" .

1 · Chapter referred to as a ''Central society 1

54 · . Subsidiary State Partnership Fund.—(1) A Central society which is jprovided with moneys by an Avex society from the Principal State Partnership Fund shaH-J'with such moneys establish a Fund to be called the "Subsidiary State Partnership Fund" .

55 · . Approval of Central Government for purchase of shares.—Shares shall not be purchased in a society from the moneys in the Principal State Partnership Fund or the Subsidiary State Partnership Fund , except with the previous approval of the Central Government .

56 · . Liability to be limited in respect of certain shares.—Where any shares are purchased in a society by—

53 · Indemnity

64 · . Provisions of this Chapter to override other laws.—The provisions of sec-

2 · 62 (bh ili') ihiChhll hffih di pp

85 · . Fuml not to he divided.—(1) No part of the funds or assets of a society other than th e dividend equalisation fund , if any , an d the net profits thereof shall be paid by way of rebate or dividend or otherwise distributed , tc its members:

66 · . Appropriation of profits.—(1) A society earning profit , shall calculate its annual net profits by deducting from the gross profits for the year , all accrued interest which is overdue for more than six months , establishment charges , contributions , if any . towards the provident fund and gratuity fund of its employees , interest payable on loan and deposits , audit fees , working expenses including repairs , rents , taxes and depreciation , and after providing for or wrltine off bad deb is and losses not adjusted against any fund created out of profits . A society may , however , add to the net profits for the year , interest accrued in the preceding years , but actually recovered during the year . The net profits thus arrived at , together with the amount of profits brought forwarded from ' the previous vear shall be available for appropriation .

67 · . Reserve Fund. — — (1) Every society which does , or can , derive a profit front pts transactions , shall maintain a reserve fund ,

68 · . Restriction on dividend.—No society shall pay a dividend to its members at a rate exceeding 9 per cent ,

70 · . Coafrlimtien to pnblic nitrpoKC-s,—After providing for the reserve fund as provided in section 67 a So I:'<,;·: nosy set aside a sum not exceeding twenty petcent . of its net profits , an d utilise from time to time , with the approval of th e Administrator

72 · . Employees provident fund.— (1) A_ny society may establish for its employees a provident fund , into which shall be paid the contributions made by its employees and by the society . Such provident fund shall not be used m the "business of the society , nor shall " it form part of the assets of the society: but shall be invested under the provisions of section 71 and shall be administered in the prescribed manner .

73 · . Final authority of society.—Subject to the provisions in this Act and the TLiles , the final authority of every society shall vest in the general body of members in general meeting , summoned in such a manner as may be speeiflecl-Jn the by-laws: v

74 · . Committee , sis powers and functions,—The management of every society shall vest in a committee , constituted in accordance with this Act, _ the rules and by-laws , which shall exercise such powers and perform such duties as may be -conferred or imposed on it respectively by tills- Act , the rules -and the by-laws .

75 · . Handing oven 1 records and property to new Chairman on election,—(1) On t h e election of a new committee and its Chairman , the retiring Chairman in whose place the new Chairman is elected shall hand over charge of the office of tbe> committee and all capers and property , if any , of the society in possession of the committee or any officer thereof , to the new Chairman of the committee .

1 · forthwith hand over such charge and . property and the Registrar may , on the 1 retiring Chairman's failure to comply with such direction , make order Cor seizing the records and property and handing them over to the New Chairman , m the manner provided "in section 33 .

76 · . Appointment of officers and employees and their conditions of service.—The qualifications for the appointment of a manager , secretary , accountant or any otn® officer or employee of"a society and the conditions of service of such officers and employees shall be sucb as may , from time to time , be prescribed:

77 · . Annual general meeting,—(1) Every society shall , within a period or three months next after the date fixed for drawing u p its accounts for the year unae r the I'ttles for the time being in fores , eall a general meeting of its members:

78 · Special general meeting.--( 1) A special general meeting mav be called at withm l l onXonm a

75 · . Acts o'i societies , etc. , not to be invalidated fey certain defects.—(1) No act

31 · . Sttfetsessfatt of committee.—(i) If,

82 · . Registrar's power to enforce performance of obligations.—(1) It shall be the duty of every society to keep the prescribed books of accounts with respect to all sums of money received and expended by the society , an d the matters in respect of which the receipt and expenditure take place , all sales and purchases of goods by the society , an d the assets and liabilities of the society , an d to furnish such statements and returns and such records to the Registrar as the Registrar may by order direct from time to time; and the officer or officers of the society shall be bound to comply with the order within the period specified therein .

83 · Registrar's power to seize records , etc.—Where the Registrar is satisfied tha t the books and records of a society are likely to be tampered with or destroyed , or the funds and property of a society are likely to be misappropriated or misapplied the Registrar may issue an order directing a person duly authorised by nirn in writing to seize and take possession of such books and records , funds and property of the society , and the officer of the society responsible for the custody of such books , records , funds and property shall give delivery thereof to the person so authorised .

84 · Auditor.—(I) The Registrar shall audit , or cause to be audited by a person possessing prescribed qualifications and authorised by the Registrar by general or special order in writing in this behalf , the accounts of every society at least once in each year . The person so authorised shall be an auditor for the purposes of this Act .

36 · . Inquiry by Registrar.— (1) The Registrar may of his own motion himself . or by a person duly authorised by him in writing in this behalf , hold an inquiry into the constitution , working and financial conditions of a society .

89 · . Suspension of officer or servant of society n i wi , · ,. Q i ·& audit under section H4 or an inquiry under le'^nn pi ) ^ m · l h e $£# *

0 · o f a a section 87 or section 28 , it is brought to the l l n 311 -1 ! $

1 · 5 ^ ^ 0

0 · 6 *W* «

84 · '

5 · »e5y?-U) 8«

9 · 3 rower of registrar to assess 9»

87 · j o r

94 · . Powe r to enforce attendance , etc—The Registrar or the person authorised by him , when acting under sections 86 , S7 or 93 shall have the""pbwer to summon and enforce the attendance of any person to give evidence or to compel the production ot any document or otner material object by the same means and in the same TeTurf flo f fv° ^ 1908) * * ^ ° ! 9 CiV U ^ ^ m *

35 · . Constitution or recognition of f sderail society to supervise working- of aocie-

96 · . Bisjnites.—(^Notwithstanding anything contained in any other lav/ for the time being in force , any dispute touching the constitution , management or business of a society shall be referred in the prescribed form either by any of the parties to the dispute , or by a federal society to which the society is affiliated , or by a creditor of the society , to the Registrar , if the parties thereto are from amongst the following: —

97 · Limitation. — — (1) Notwithstanding anything contained in the Limitation Act , 1883 (33 of 19SS) , but subject to the specific provisions made in this Act , the period oi limitation in die case of a dispute referred to the Registrar under section 36 shall —

98 · . Settlement of disputes,—(1) If the Registrar is satisfied that any matter referred to him is a dispute , within the meaning of section 96 the 'Registrar shall subject to the rules , decide the dispute himself, f, or refer it for disposal to a nominee , or a board of nominees , appointed by the Registrar: -^

01 · nominees

01 · nominees

100 · . Attaclunani before award.—fl) Where a dispute ha s been referred to the Registrar or ms nominee or board of nominees under section 98 or und^r section 110 . or wher e the Registrar or the person authorised under section 93 hears a person against whom charges are framed under that section , the Registrar or his nominee or ooard of nominees , or as the case may be , the person so authorised under section 03 if satisfied on enquiry or otherwise that a party to such dispute or against whom proceeding * are pending under section 93 with intent to defeat delayo r obstruct the execution of any award or the carrying out of any order that

93 · may confirm the order and , after the decision in the dispute or the completion of the proceedings referred to in sub-section (1) may direct the disposal of the property so attached towards the claim if awarded .

101 · . Decision of Registrar or his m>rain'Ee,-oi " board , of nominees.—When a dis -pute is referred to the Registrar for decision , he or his nominee or board of nomi -nees may , after giving a reasonable opportunity to the parties to the dispute to be heard make an award on the dispute , on the expenses incurrea by the parties to the dispute in connection with the proceedings , an d the tees and expenses payable to the Registrar or his nominee or , as the case may be , board at nominees . Such an award shall not be invalid merely on the ground tha t it was macie alter the expiry of the period feed by the Registrar; for deeming the dispute and shall , subject to appeal or review or revision , be binding on the parties to the dispute .

102 · Appeal against decision of Registrar or his nominee or hoard of nominees.—Any party aggrieved by any decision of th e Registrar or his nominee or board of nominees under section 101 or an order passed under section 100 may , within two months from the date of the decision or order , appeal LO the Tribunal .

103 · Money how recovered.—Every order passed by the Registrar or a person authorised by him under section 93 , or by the Registrar , his nominee or hoard of nominees under section 100 or 101 , every oraer passed in appeal under section 102 , every order passed by a Liquidator under section 110 , every order passed by .-he Administrator in appeal against orders passed under section 110 , and every oicler passed in revision under section 155 , shall , if not carried out, —

104 · . Private transfer of property matte after issue of certificate void againsi society—Any private transfer or delivery of. f. or encumbrance or charge on , pro -perty made or created after th e issue of the certificate of the Registrar Liquidator or Assistant Registrar , as the case may he , under section 103 shall be n.ui.1 ancS void as against the society on whose application the said certificate was issued ,

105 · Transfer of propei-ty which cannot he sold.—(I) When in execution of an order sought to be executed under section 103 any property cannot be sold for want of buyers , if such property is in occupancy of the defaulter , or of some nerson in his behalf , or of some person claiming under a title created by the defaulter subsequently to the issue of the certificate of the Registrar , Liquidator or the Assistant Registrar , under clause (a) or (b) of section 103 , the fcpart ortn e Mamlatdar or the Registrar , as the case may be , may direct thai the said rommg or arty portion thereof shall be transferred to the society which has applied , for the execution of the said order , in the manner prescribed .

108 · . Becovery oS crap loans.—(J) Notwithstanding anything contained in sections 96 , 98 and 103 on an application made by a society undertaking the financing of crops and seasonal finance for the recovery of arrears of any sum advanced by it to any of its members on account of the financing of crop or seasonal finance an d on its furnishing a statement of accounts in respect of the arrears , the Registrar may , after making such inquiries as he deems fit , grant a certificate for the recovery of the amount stated therein to be due as arrears .

107 · . Winding up (1) If the Registrar,—

3S · (M. the opinion that a society ought to be wound up , he may mak e an interim ·order directing it to be wound tip .

103 · . Appeal against Qftfav of winding up.—m The committee , or any member , of the society ordered to be wound up , may within two months from the date or the communication to the society of the order made under section ,07 appeal if the order is mad a bv the Registrar , Additional Registrar or Joint Registry to tn -

1908 · (V of 11 he

1908 · vid

111 · . Effect of order 1 of winding up.—After the expiry of the period for appeal under section 109 against the order made under sub-section (3) of section 107 , or where the appeal has been dismissed , the order for winding up shall be effective and shall operate in favour of all creditors and of all the contributories of the society , as if it had been made on the joint petition of creditors and contributories . When a winding up order becomes effective , the liquidator shall proceed to realise the assets of the society by sale or otherwise , and no dispute shall be commenced , or if oending at the date of the winding up order , be proceeded with , against die society , except bv leave of the Registrar and subject to such terms as the Registrar m a y impose . The Registrar , may of his own motion , however , entertain or dispose " of any dispute by or against the society .

112 · Bai " oi suit in winding ui> and dissolution matters.—Save as expressly provided in this Act , no Civil Court shall take cognizance of any matter connected with the winding up or dissolution of a society under this Act; and when a winding up order has been made no suit or other legal proceedings shall lie or be proceeded with against the society or the liquidator , except by leave of the Registrar , and subject to such terms as he may impose:

113 · . Audit of Liquidator's accounts.—(i) The liquidator shall , during his tenure of office , at such times as may be prescribed , but not less than twice each year , present to the Registrar an account in the prescribed form of his receipts arid payments as liquidator . The Registrar shall cause the accounts to he audited.TH such manner as he thinks fit; and for the purpose of audit , the liquidator shall furnish the Registrar with such vouchers and information as he , or the person appointed by him , may require .

114 · . Termination of liquidation proceedings.—(1) The winding up proceedings of a society shall be closed within three years from the date of the order of the winding up , unless the period is extended by the Registrar:

116 · . Application of chapter to certain Land Mortgage Banks.—This Chapter shall appiy s S Land Mortgage Banks advancing loans , other than short term loans , for the purposes herein enumerated that is to any—

10 · months .

117 · . Deftoitions^-In this Chapter unless the context otherwise requires:—

113 · . Appointment , sowers and functions of BfWHt t Ths Registrar or where the Administrator appoints any other person in this behalf, f, such person , shall be the Suste e for the%Sos e of securing the fulfilment .of the obligations of the stat e Land Mortgage Bank to the holders of debentures issued by the State Land . Mon gage Bank .

119 · Issue of Seseniuras.—fl) With the --ovious sanction of the Central Government and the Trustee , and subject to the --lies , the State Land Mortgage Bank in the discharge of its functions issue debentures of such denominations , torsuc j period and at such rates of interest , as it may Seem expedient on the secuuty of the mortgages , or mortgages to be acquired or partly on mortgages held and partly on those to be acquired and properties and other assets of its land mortgage business .

120 · , Guarantee by Central Government.—The principal of, f, an d interest on , the debentures issued under section 119 shall , to such maximum amount as may be fixed by the Central Government and subject to such conditions as the Central Government may think lit to impose , carry the guarantee of the Central Government .

121 · . Vesting of property in trustee and debenture holders ' charge on assets.— Upon the issue of debentures under the provisions of section 119 , the mortgaged properties and other assets referred to hi sub-section (3) of section 119 held by the State Land Mortgage Bank shall vest in the Trustee; and the holders of debentures shall have a floating charge on all such mortgages and assets , an d on the amount paid under such mortgages and remaining in the hands of the State Land Mortgage Bank or of the Trustee .

122 · Priosaty of mortgage.—(1) A mortgage executed in favour of a land mortgage bank shall have priority over any claim of the Government arising from a loan granted after the execution of the mortgage under the Land Improvement Loans Act , 1883 (IX of 1883) , ov the Agriculturists ' Loans Act , 1884 (Xil of 1884) , or any other law for the time being in force .

123 · Order granting loans conclusive of certain matters.—A written order by the Land Mortgage " Bank , or persons or committees authorised under the bye-laws of the Bank to make loans for all or any of the purposes specified in section 116 granting , either before or after the commencement of this Act , alaan to or with the consent of, f, a person mentioned therein , for the purpose of carrying_out . the work specified therein , for the benefit of the land or for the productive purpose specified therein , shall for the purposes of this Act be conclusive of the following matters tha t is to say,—

124 · a&wctg&ges executed in favour of Primary Land Mortgage Banks to stand vested'in " State Latad Mortgage Bank.—The mortgages executed m tavourof , and all other assets transferred to a Primary Land Mortgage Bank by the memaers thereof shall with effect from the date of such execution or transfer be deemed to have been transferred by it to the State Land Mortgage Bank and shall vest in the State Land Mortgage Eank .

125 · . Registration of mortgage in favour of Land Mortgage Bante.—Notwithstandinp anything contained in the Indian Registration Act , 1908 (XVI of 1908) it shall not be necessary to register mortgages executed m favour oi the Land Mortgage Bnnks provided that the Land Mortgage Bank concerned sends witnm such time and in such manne r as may be prescribed , a copy of the instrument whereby immovable property is mortgaged for the purpose of securing repayment of the Urn to the Registering Officer within the local limits of whose lg»gdta m the whole or any part of the property mortgaged is situate . Such Registenn j Officer shall file a cony or copies as the case.may be m his Book No . 1 pi escribed under section 51 of the Indian Registration Act , 1908(XVI o:t IOCS) .

128 · Mortgages not to be questioned on insolvency of mo 1'tgagcrs.—Notwithstanding anvthinff contained in the Presidency-towns Insolvency Act , 191)1(111 ot 1909) or the Provincial Insolvency Act . 1920 (V of .1920) or any corre S nondm| law for the time being in force , a mortgage executed in favour of a and i tgage bank , shall not be called in question on the ground that it was not executed in good faith for valuable consideration , or on the ground that it was executed in order to give the bank a preference over other creditors of the mortgagor .

127 · , Bight of land mortgage bank to pay prior debts of mortgagor.—

1382 · (IV of 1882) by notice in

129 · Restrictions on lease.—(1) Notwithstanding anything contained in the -

1882 · (IV of 1882) or any other law for the time being

130 · . Section 8 of Act XXXH of *3PS to apply to mortgages to ian d Mort-

131 · Wow*P ot Primary Land Mortgage Sank to receive mosey awl give

133 · . Power to distrain. — — (1) If any instalment payable under a mortgage executed in favour of a land mortgage bank , or any part of such instalment , ha s remained unpaid for more than one month from the- date on which it fell due

134 · . Sale of mortgaged property.—(1) Notwithstanding anything contained in the Transfer of Property Act , 1882 (V of 1882) , the land mortgage bank or any person possessing the prescribed qualifications and authorised by the bank in this behalf shall , in case of default in payment of th e mortgage money or any part thereof , have power , in additionl to any other remedy available to the bank , t o bring the mortgaged property to sale by public auction in th e village in which the mortgaged property is situated or at the nearest place of public resort , without the iptarvention of the Court such sale shall be effected in accordance with th e presc: l&sd procedure ,

135 · . Eight of mortgage

1343 · (Bom

139 · . Confirmation of sale.—(1) On effecting a sale under section 134 , the primary land mortgage bank shall , in the prescribed manner , submit to the Stat e Land Mortgage Bank and the Registrar a report setting forth the manner in which die sale has been effected and the result of the sale , an d the State Land MortgageBank may , with the approval of th e Registrar , confirm the sale or cancel it .

137 · . Disposal of sale proceeds.—The proceeds of every sale affected unde r section 134 and confirmed under section 136 , shall be applied first in payment of all costs , charges and expenses incurred in connection with the sale or attempted sales , secondly in payment of the interest due on account of the mortgage in consequence whereof the mortgaged property was sold , an d thirdly in payment of the principal due on account of the mortgage including costs and charges incidental to the recovery . If there remains any residue from the proceeds of sale , the same shall be paid to the person proving himself interested in the property sold , or if there are more such persons than one , then to such persons upon their joint receipt or according to their respective interest therein , as may be determined by the land mortgage bank :

138 · Certificate to purchaser , delivery of property and title of purchaser.— (1) Where a sale of mortgaged property has become absolute under section 136 and the sale proceeds have been received in full by the land mortgage bank , the bank shall grant a certificate to the purchaser in the prescribed form certifying the property sold , the sale price , the date of its sale , the name of the person who at the time of the sale is declared to be the purchaser , and the date on which the sale became absolute; and upon the production of such certificate the Sub-Registrar appointed under the Indian Registration Act , 1S03 (XVI of 1D08) , within the limits of whose jurisdiction the whole or any part of the property specified in such certificate is situated , shall enter the contents of such certificate in his register relating to immovable property .

139 · . Recovery of loans on Certificate fi* Rein^tnr n i AT * ***

140 · . Collector to make recoveries during certain raeriod — m nw«« » « , u Mortgage Ban k (including the cost of such recovery) . Lan d

141 · . Provision or guarantee

143 · Exemption of officer of land mortgage banks from personal appearance

144 · Service of notice.—The provisions of sections 102 and 103 of the Transfer of

1882 · (IV of 1882)

145 · Officers of banks not to bid at sales—At any sale of movable or immov-

1 · oS'sces—(D It shall be an offence under this Act , if— f—

148 · . Punishment for offences under section 14:.—(1) Every employer or offi-

1 · o l m t yecii011 -

1 · o l m t yecii011

152 · Tribunal to have power of Civil Court.—(1) In exercising the functions · conferred on it by or under this ^ct , th e Tribunal shall have the same powers as are vested in a Court in respect of,—

153 · . Appeals.—(1) An appeal against an order or decision under sections 4

11936d · 160hll li , 9 , LI , 13 , 17 , pp

19 · , 36 , () pp

154 · . Extension of period of limitation i>3- appellate authority in certain cases,— I n all cases in which it is provided under this Act that an appeal may be filed

157 · . Kecaveiy of sums due to Government.— (1) Unless otherwise provided b y

158 · . Cffitajjetsney

2 · (f jj

160 · . Ssg'istrar's powers to issmc directions.—^) With the prior approval of the Administrator , the Registrar may , from time to time , give all or any of the societies , or any class or classes o£ societies , such directions as in his opinion are necessary or expedient for the purposes of securing the proper implementation of the production programme , linking and co-ordinating of co-operative activities such as marketing and credit , conforming to co-operative discipline with respect to the implementation of co-operative production and other developmental programme approved or undertaken by the Government · or for carrying out any of the purposes ol this Act . It shall be the duty of every society to comply with such directions .

161 · . Power to exempt societies from provisions of Act.—The Administrator may , by general or special order , to be published in the Official Gazette exempt any society or class of societies from any of the provisions of this Act , or may direct that such provisions shall apply to such society or class of societies with suchmodifications not affecting the substance thereof as may be specified in the order;

182 · . Delegation of powers of State Government and of Registrar — The &dnfi*il^^^f^w^f

163 · . Branches CM . M societies outside the State.—(1)

164 · . Registrar and otte r officers to be public servants.—The Registrar , a person exercising the powers of the Registrar , a person authorised to audit the accounts of a society under section 84 , or to hold an inquiry under section 86 . or to make an inspection under section 87 , an d a person appointed as Special Officer under section 31 or as a mominee or board of nominees under section 98 , or as a liquidator under section 108 , an d all members of the Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (XLV of 1350) .

165 · . Isdetaaiiy for acts done in good faitli.— lla suit , prosecution or other legal proceedings shall lie against the Registrar or any person subordinate to him or acting on his authority , in respect of anything in good faith done , or purported to .be done by him by or under this Act .

166 · . Bar of jurisdiction af Courts.—(1) Save as expressly provided in this Act , no Civil or Revenue Court shall have any Jurisdiction in respect of—

167 · . Notice necessary in suits,—Save as otherwise provided in this Act , no suit shall be instituted against a society , or any of its officers , in respect of any act touching the business of the society , until the expiration of two months next after notice in writing has been delivered to the Registrar or left at Ms "Officer stating the cause of action , the name , description and place of residence of the plaintiff and the relief which he claims , and the plaint shall contain a statement that such notice has ' been so delivered or left .

163 · . Sides.—(1) The Administrator may , by notification in the Official Gazette, make rules for carrying out the purposes of this Act .