Chapter II REGISTRATION OF CO-OPERATIVE SOCIETIES

(1) The Chief Commissioner may appoint a person to be the Registrar of Co-operative Societies for the Union territory and may appoint other persons to assist him. (2) The Chief Commissioner may, by general or special order, confer on any person appointed to assist the Registrar all or any of the powers of the Registrar under this Regulation. (3) Every person appointed to assist the Registrar shall exercise the powers conferred on him under sub-section (2), subject to the general superintendence direction and control of the Registrar. An application for registration of a co-operative society shall be made in the form prescribed in Appendix "A" and shall specify the name and address of one of the applicants to whom the Registrar may address his correspondence under rule 5 or rule 6.

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

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

(2) Whether the liability of the members of any co-operative society is limited or unlimited by shares, the liability of the Government or of a credit agency which has taken shares in such co-operative society, shall be limited to the share capital subscribed by the Government or such credit agency as the case may be.

(3) The word “limited” or its equivalent in any Indian language shall be suffixed to the name of every society registered under this Regulation with limited liability. An application for registration shall be accompanied by three copies of the bye-laws which the Co-operative Society proposes to adopt. Such copies of bye-laws shall bear the signature of not less than two of the applicants, duly authorised by the members of the proposed co-operative society. A special general meeting called by the Registrar or any person authorised by him in writing shall be held in such manner and at such time and place as may be directed by him.

No society, other than a society of which a member is a co-operative society, shall he registered under this Regulation unless it consists of at least ten persons (each of such persons being a member of a different family), above the age of eighteen years and residing in the area of operation of the society. Explanation:- For the purposes of this section, the expression “member of a family” means wife, husband, father, mother, grandfather, grandmother, step-father , step-mother, son, unmarried daughter, unmarried step daughter, step-son, grandson, unmarried grand-daughter , unmarried sister, unmarried half –sister, brother, half-brother and wife of brother or half –brother. (1) Before passing final order under section 8, the Registrar may call for such further information from the applicants or make such independent enquiries as he may deem necessary.

(2) After the Registrar is satisfied with regard to the matters stated in sub-section (1) of section 8, he may register the co-operative society and its bye-laws. A copy of the registered bye-laws shall be returned by him to the co-operative society. When the Registrar or any person authorised by him calls a special general meeting of the co-operative society, the mater for the consideration for such a meeting may also be laid down by him and such matter shall be considered at the meeting so called.

No member, other than the Government or a co-operative society, shall hold more than such portion of the share capital of a co-operative society, subject to a maximum of one-fifth , as may be prescribed or have or claim any interest in the shares of such society exceeding ten thousand rupees. An order passed by the Registrar refusing registration of a co-operative society shall be communicated by registered post or by any other means deemed fit to the applicant referred to in rule 3. Where the movable properties to be attached is the salary or allowance or wages of a public officer or of a servant of a local authority or a firm or a company or any other institution, the Recovery Officer may on receiving a report from the Sale Officer, order the employer concerned that the amount shall subject to the provision of section 60 of Code of Civil Procedure, 1908 (5 of 1908) be with-held from such salary or allowance or wages either in one payment or by monthly instalments as the recovery officer may direct and upon the notice of the order, the officers or employer shall with-hold and remit to the Sale Officer the amount due under the order or the monthly instalments, as the case may be. If at a general meeting or special general meeting, there is no quorum within one hour of the time fixed for the meeting, it shall be adjourned and fresh general meeting or special general meeting, as the case may be, shall be re-convened, after giving due notice. If at the re-convened meeting also, there is no quorum within one hour of time appointed for the meeting, then at the end of one hour members present shall constitute quorum.

(1) For the purposes of registration of a co-operative society under this Regulation, an application shall be made to the Registrar in the prescribed form.

2) The application shall be signed:- a) in the case of a society of which no member is a co-operative society, by at least ten persons qualified in accordance with the requirements of section 5: and.

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

3) The application shall be accompanied by a copy of the proposed bye-laws of the society and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Registrar may require. Where an application for registration of a co-operative society is refused by the Registrar, an appeal, if made, shall be signed by all the persons who had signed in the application for registration:

Provided that where an application for registration was signed by more than ten persons, the appeal shall be signed by at-least two third of the persons who has signed the application for registration subject to a minimum number of ten such persons. (i) Where the property to be attached consists of a share or interest of the defaulter in movable property belonging to him and another as co-owner, the attachment shall be made by a notice to the defaulter, prohibiting him from transferring the share or interest or charging it in any way. (ii) Where the property to be attached is a negotiable instrument not deposited in a court nor in the custody of a public officer, the attachment shall be made by actual seizure and the instrument shall be brought to the officer of the Recovery Officer ordering the attachment and be held subject to his further order. (iii) Where the property to be attached is in the custody of any court or public officer, the attachment shall be made by a notice to such court or officer requesting that such property or any interest or dividend becoming payable hereon may be held subject to further orders of the Recovery Officer issuing the notice; Provided that where such property is in the custody of court, any question of title or priority arising between the decree holder and any other person not being the defaulter claiming to be interested in such property by virtue of any assignment, attachment or otherwise shall be determined by such court. Every resolution at general meeting or special general meeting shall be passed by the majority of votes of the members present.

(1) If the Registrar is satisfied-

a. that the application complies with the provisions of this Regulation and the rules;

b. that the objects of the proposed society are in accordance with section 4;

c. that the proposed bye-laws are not contrary to the provisions of this Regulation and the rules; and

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

2) When the Registrar refuses to register a society, he shall communicate the order of refusal together with the reason therefore, to such of the applicants as may be prescribed. 3) The application for registration shall be disposed of by the Registrar within a period of 3 months from the date of receipt thereof by him. 4) Where the Registrar fails to dispose-off an application for registration within the period specified in sub-section (3), he shall be deemed to have refused to register the society and nothing in sub sections (2) shall apply to such refusal. (1) A Co-operative society shall make bye-laws in respect of the following matters:-

(a) name and address of the co-operative society; (b) area and operation: (c) the objects of the co-operative society: (d) the manner in which the funds may be raised and the maximum share capital which any one member may hold and the purpose to which the funds may be made applicable: (e) the qualification for membership and terms for admission of members: (f) the nature and the extent of the liability of the members: (g) withdrawals and expulsion of members, and the payments, if any, to be made to such members: (h) transfer of shares or interest of the members: (i) general meetings and procedures and powers of such meetings: (j) procedures of election to the committee: (k) appointment, suspension and removal of the officers of the co-operative society and members of the committee: (l) constitution of the committee and procedure for holding its meetings: (m) powers and duties of the committee and officers of the co-operative society: (n) the privileges, rights, duties and liabilities of members: (o) the consequence of defaults in payments of any sum due by a member: (p) authorisation of an officers of the co-operative society to sign documents and to institute and defend suits and other legal proceedings on behalf of the society: (q) the constitution and maintenance of various funds as required to be maintained under the provisions of Regulation, Rules and bye-laws: and (r) Disposal of profits:

Provided that if in the opinion of the Registrar the bye-laws of any co-operative society do not contain provisions with regard to the matters specified in clause (i) and (1) or contain insufficient provision with regard to these matters, the provisions prescribed in appendix "B" shall apply to such society as if the said Appendix had been part of the bye-laws registered under section 8:

Provided further that if there is any inconsistency in the bye-laws framed by the society with regard to the aforesaid matters and the provisions contained in appendix "B" the bye-laws of the society shall prevail in so far as they are inconsistent with the provisions contained in appendix "B".

(2) The bye-laws of a co-operative society may further provide for such matter as are incidental to the organisation of the society and the management of its business. (j) procedures of election to the committee:

(k) appointment, suspension and removal of the officers of the co-operative society and members of the committee:

(l) constitution of the committee and procedure for holding its meetings:

(m) powers and duties of the committee and officers of the co-operative society:

(n) the privileges, rights, duties and liabilities of members:

(o) the consequence of defaults in payments of any sum due by a member:

(p) authorisation of an officers of the co-operative society to sign documents and to institute and defend suits and other legal proceedings on behalf of the society:

(q) the constitution and maintenance of various funds as required to be maintained under the provisions of Regulation, Rules and bye-laws: and

(r) Disposal of profits:

Provided that if in the opinion of the Registrar the bye-laws of any co-operative society do not contain provisions with regard to the matters specified in clause (i) and (1) or contain insufficient provision with regard to these matters, the provisions prescribed in appendix "B" shall apply to such society as if the said Appendix had been part of the bye-laws registered under section 8:

Provided further that if there is any inconsistency in the bye-laws framed by the society with regard to the aforesaid matters and the provisions contained in appendix "B" the bye-laws of the society shall prevail in so far as they are inconsistent with the provisions contained in appendix "B".

(2) The bye-laws of a co-operative society may further provide for such matter as are incidental to the organisation of the society and the management of its business. (i) Where the property to be attached is a decree either for the payment of money or for sale in enforcement of a mortgage or charge the attachment shall be made by the order of the Registrar if the decree sought to be attached is under section 56 or by an arbitrator. (ii) Where the property is to be attached is a decree of the nature referred to in clause (i) the attachment shall be made by the issue of a notice by the Recovery Officer to the holder of such decree, prohibiting him from transferring or charging the same in any way. (iii) The holder of a decree attached under this sub-rule shall give the Recovery Officer executing the decree such information and aid may reasonably be required. (iv) On the application of the holder of a decree sought to be executed by the attachment of another decree the Recovery Officer making an order of attachment under this sub-rule shall give notice of sub order to the defaulter bound by the decree attached, and no payment of adjustment of the attached decree made by the defaulter is contravention of such order after receipt of notice thereof, either through the said Recovery Officer or otherwise, shall be recognised so long as attachment remains in force.

Where a society is registered under this Regulation the Registrar shall issue a certificated of registration signed by him, which shall be conclusive evidence that the co-operative society therein mentioned is duly registered under this Regulation, unless it is proved that the registration of the society has been cancelled. Subject to the provisions of section 10 and rule 8, a society may from time to time, amend its bye-laws. Where the movable property to be attached is: (a) a debt due to the defaulter in question; or (b) a share in the capital of a corporation or a deposit invested there in; or (c) other movable property and in the possession of the defaulter, except property deposited in or in the custody, of any civil court, the attachment shall be made by a written order signed by the Recovery Officer prohibiting;

1) No amendment of any bye-laws of a co-operative society shall be valid until the same has been registered under this Regulation.

2) Every proposal for such amendment shall be forwarded to the Registrar in the prescribed manner and if the Registrar is satisfied that the proposed amendment:- (i) is not contrary to this Regulation or to the rules:

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

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

Provided that not order refusing to register the amendment of bye-laws shall be passed except after giving the co-operative society an opportunity of making its representation. 3) The Registrar shall forward to the co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered, 4) Where the Registrar refuses to register an amendment of the bye-laws of a co-operative society, he shall communicate the order of refusal together with the reasons therefore, to the society in the prescribed manner. 5) An amendment of the bye-laws of a registered society shall take effect from the date, if any, specified in the amendment and where no such date is specified, the amendment shall take effect from the date on which it is registered. 6)(i) Where the Registrar is satisfied that for the purpose of altering the area of operation of a co-operative society or for the purpose of improving the services rendered by it or for any other purpose specified in the rules, an amendment of the bye-laws is necessary, he may after consulting, in the prescribed manner, the credit agency, if any, to which the society is affiliated, by notice in writing, call upon the society to show cause, within such time as may be specified in the notice, why the amendment should not be made. (ii) If within the time specified in the notice referred to in clause (i), the co-operative society fails to make the amendment, the Registrar may, after giving the society an opportunity of making its representations, register the amendment and issue to the society a copy of such amendment. (iii) Any amendment of the bye-laws registered under clause (ii) shall have the same effect as an amendment of the bye-laws registered under sub-section (2) unless the registration is cancelled in pursuance of a decision in appeal. No amendment under rule 9 shall be carried out save in accordance with a resolution passed at a general meeting of the co-operative society of which due notice or the intention to discuss the amendment in the meeting has been given to its members. No amendment under rule 9 shall be carried out save in accordance with a resolution passed at a general meeting of the co-operative society of which due notice or the intention to discuss the amendment in the meeting has been given to its members.

Provided that no such resolution shall be valid unless it is passed by a majority of members present at the general meeting at which not less than two third of members for the time being of the co-operative society are present:

Provided further that amendment of bye-laws on the lines of model bye-laws previously approved by the Registrar may be adopted by a majority at an ordinary general meeting.

(1) A co-operative society may, by an amendment of its bye-laws, change its name but such change shall not affect any right or obligation of the society or of any of members or past members 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. (2) Where a co-operative society change its name, the Registrar shall enter the new name on the register of co-operative societies in place of the former name and shall amend the certified or registration accordingly. Three copies of the amendment adopted by a co-operative society under rule 10 signed by two officers of the co-operative society, duly authorised by the general meeting in this behalf, shall be submitted to the Registrar along-with an application for registration, duly signed as aforesaid, together with a copy of the resolution passed in the general meeting to that effect. Such copies of the amendments shall be accompanied by a certificate signed by any one of the above two officers of the co-operative society to the effect that the provisions of the rule 10 have been complied with. (1) After the counting of the votes has been completed, the candidate who secures a majority of votes shall be declared elected by the Returning Officer or the Presiding Officer, as the case may be. If the number of votes in favour of two or more candidates are equal, the mater shall be decided by lots drawn by the Returning Officer or the Presiding Officer, as the case may be. (2) When the result of the election has been declared, the Returning Officer or the Presiding Officer as the case may be, shall prepare a consolidated list of elected candidates, including those declared elected unopposed, and communicate the names of persons elected under his signature to the Assistant Registrar concerned and in the case of Central or Apex Co-operative Societies, such a list shall also be sent to the Registrar. The Returning Officer or the Presiding Officer, as the case may be shall also direct the Manager to exhibit the list of the names of the persons elected at some conspicuous place at the registered office of the society for a minimum period of seven days after declaration of result of the election.

(1) Subject to the provision of this Regulation and the rules, a co-operative society may, by an amendment of its bye-laws, change the form or extent of its liability. (2) When a co-operative society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its members and creditors and, notwithstanding any bye-laws or contract to the contrary, any member or creditor shall, during a period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be. (3) Any member or creditor who does not exercise his option within the period specified in sub-section (2) shall be deemed to have assented to the change. (4) An amendment of a bye-law of a co-operative society changing the form or extent of its liability shall not be registered or shall not take effect until either (a) all the members and creditors have assented, or deemed to have assented, to the change: or (b) all claims of the members and creditors who exercise the option referred to in sub-section (2) within the period specified therein have been met in full or otherwise satisfied. On receipt of an application for registration, together with other documents referred to in rule 11, the Register shall examine the amendment proposed by the co-operative society and if he is satisfied that the amendment is not contrary to the Regulation or the rule and is in the interest of the society and the co-operative movement, he may register the amendment and issue to the co-operative society a copy of the amendment duly certified by him under section 10. Where Registrar is of opinion that the proposed amendment may be accepted subject to any modification, he may indicate to the society such modification after explaining in writing his reasons therefor. (1) The Registrar may issue such instructions as may be necessary for the purpose of drawing of election programme, filling of nomination papers, withdrawals of nomination papers, allotment of symbols, manner of voting, counting and other relevant matters to facilitate the holding of election in respect of a co-operative society or class of co-operative societies. (2) If any dispute arises in connection with election of any officer of co-operative society, it shall be referred to within thirty days of the declaration of the result of such election to the Registrar in same manner as provided in rule 55 of the rules.