Exemption from compulsory registration of instruments

Nothing in clauses (b) and (c) of sub-section 17 of the Registration Act, 1908 (16 of 1908) shall apply to – (1) any instruments relating to shares in a co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or (2) any debenture issued by any such society and not creating declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property to except in so far as it entitles the holder thereof 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 or such debentures; or (3) an endorsement upon or transfer of any debentures issued by any such society. (1) the Reserve fund of a Co-operative society or class of co-operative societies may with the specific approval of the Registrar in writing, be utilised in the business of the co-operative society. (2) Reserve Fund shall be indivisible and no member shall be entitled to claim specified share in it. Provided that in exceptional circumstances and with the prior approval of the Registrar the reserve fund may be utilized in meeting losses. (3) No co-operative society whose reserve fund has been invested or deposited in the manner prescribed in section 44, shall draw upon pledge or otherwise employee such fund except with the sanction of the Registrar previously obtained in writing.