Deduction from salary to meet co-operative society’s claim in certain cases

(1) Notwithstanding anything contained in any law for the time being in force a member of co-operative society may execute an agreement in such form as may be prescribed in favour of the society providing that his employer or the officer disbursing his salary or wages shall be competent to deduct every month from the salary or wages payable to him, such amount as may be specified in the agreement but not exceeding one-third of the salary or wages and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society. (2) On the execution of such agreement, the employer or the officer disbursing the salary or wages of the members shall, if so required by the co-operative society by a requisition in writing and so long as the society does not intimate that the whole of such debt or other demand has been paid, make the deduction in accordance with the agreement and pay and the pay the amount so deducted to the society within fourteen days from the date of the deduction. (3) If after the receipt of requisition made under sub-section (2), the employer or the officer disbursing the salary or wages of the member at any time fails to deduct the amount specified in the requisition or makes default in remitting the amount deducted to the society, the society shall be entitled to recover any such amount from such employer or officer, as the case may be, as arrears of land revenue and the amount due from such employer or official shall rank in priority in respect of the liability of such employer or officer equal to that of the salary or wages in arrears. (4) The employer or the officer disbursing the salary or wages shall maintain such registers as may be prescribed by the Chief Commissioner or the Registrar from the time to time. (5) When a requisition in writing from any co-operative society registered or deemed to be registered in any State in respect of a member of that society who for the time being is employed in the Union Territory, is received by his employer, the requisition shall be acted upon as if it has been made by a co-operative society in the Union Territory. The net profit of a co-operative society shall be the profit remaining after allowing for the following charges in addition to those specified in clause (h) of rule 2, namely: (a) all other usual working charges such as repairs, rent, taxes, depreciation and irrecoverable amounts written off; (b) capital expenditure written off, either wholly or in part; (c) capital loss actually incurred and not adjusted against any fund created out of profits; (d) provisions for estimated bad debts, doubtful debts if any; (e) expenses incurred in connection with the meetings and elections; and (f) any other revenue expenditure.