The Andhra Pradesh Co-Operative laws (Amendment) Act, 1987

1. (I) This Act may be calleh the Andhri Short tltlc Prsdesh Cc-operative Laws (Amendment; Act, 1987. 2nd Conrencc- I rent. (21 Sections 4(1>, 6, 7 to il and 13 shall cone into force OT~ such date as theStateGovern- ment may, by natification, appoint and tI~c remaining provisions shall come into fnrce at oi1r.e.

In the Andhra Pradesh to-operative Societies OF Scction HA, Aa 7 Act, 1964 (hereinafter referred to as the principal Act), in Section ISA,-

1. (1) for sub-sections (11,
2. (2) and 131, !he following subsections shall be nrbstituted, namely:- "(1) Notwithstanding anything in this Act or' the mles made thereunder or the byelaws of the society concerned, iE !he Registrar is of the opinion that it is , necessary to amalgamate or merge any society with , any other such society or to divide and restrict or transfer the area of operation of a society or to Iiqui-, date a society for any of'the folloiving purposes, I namely:- I I - .(a) for ensuring. economic viability of arid or all the societies concerned; or c
   • (b) for avoiding overlappius or conflict 04 , jurisdictions of societies in any area: or . A .i . . - : 3. -. - , .. I. -
     • • A , {c) for -securing- proper management of any 8 .spciety; or , .,
   • (d) in the interest of the co-oper2tiuz mow nlent in general and of ca-operative cridit str~icture in particular in thc State talcen as a wholz; or
   • (e) for. any ot11,er reason in the public Interest, he may identify the viable and - non-viablc societies whim may be retained or divided with consx~uc~~tial restriction of the area 01 operation or thc transfer of such arc3 or amal~amated ar liquidal-ed, as the case may be. and rnay by a notiiicntian to bc pub1is;lcd in the prcscribcd lrlnnner, specify tI~r: arc3 of otler;!tinll ; af er~cl~ such society or wcicties to be retained divided ! or nqaIgm=ited;yit!5 any nthcr socie!~ i~ldica:ei! in 1 tqi,-sgid.notlrotipn and invit: abjections or su,!kes- I :tio$.~from, .. -- .-. ~c mc-ktics or any -members, - depositorsi . b &e.!lirors, employees or other persons concerned with the &airs of each such society to be received within twc@y one days from the date.of publication of the notification. Exp1mation:-For the purpose of thi's Section,-
     • (i) the term 'Registrar' means the person on ivllo~n tile powers of die Registrar under this Section are codcrred under clause
   • (a) of section 2.
     • (ii) any society may coavcne the ~cneral body meeting within seven dzys from the date af publication of the notificiltion.
3. (2) The Registrar may, after having considered the mattcr in the light of any suggestions or objections ivhicl~ may be received by him within [he period speci- fied in sub-section
   • (i) and after making if uecessary, such modification in the proposal as he may deem fir, make an order and publish it in tb.c prescribed manner;
4. (3) On malting such an order,--
   • (i) tlle societies affected by the amalgamation,

dlall bc decmcd to i~rlvc been amalgarnaiecl with he

Society or socic'.ies with which each one is amalga- mated;

1. (ii) I11e re:istmtion of every amalgamated or clividcd sociery s11;1ll srnnd cancelIcd whereupon such socicty s11all ccasc to exist as a corporate body;
2. (iii) 111c arcn added to the area of. ,operation cf the socicty shall bc clccmed to have been -transfer- red to snch socicty to n!lich it is added:
3. (iv) llle nsscts of such amalgamated or divided society sh;~Il stand fral~sfcrred to and it3 liabilities shall dcvolr~c on, lhc ssoisty irith which it is amalga- aared aud all hmovnblz prope~ties located in the (%J.c~q 'noinber d .uch &dg&a& GI divided SC~:.'-~ mr! residing in the area -erred CFXJ Be d?emcd to haye Lm trqferred together with j& Iyns: shwe capitd, deposik to thd ' society with ~:2i& it @ amdgamated or to ~~hich the area is !ram- fcrrc d and he sW have the mmc ' rights, privileges

ard linbi'iities which he has had it^ the amalgamated

or divided wieq; -.

1. (vi) the Committee d the amalgamated or divided society shall st sd dissalved and thereupon, the Registrar shall nominate a Conmittee or appoint a person or. p,rsolls, wherever nemmy to manage the affairs of, such society for a period nof exceeding six months and armge for he conduct of elections before the expiry of the term; , (~2) it shall b mnpcket for he Registrar to alIct, by order, employees of such societies which . are an~algimatod or divided to my suciety or societies; and (1%) notwithstanding anq*g in this Ace or id any &her !xw, ~i in any coaGi!ct, award or any other i~strument for tbe time 'u~:ag in force, the pro- visions of the order of the Kcgisirar under subses- tirsns

1. (2) and
2. (3) shaU be brildiiig on all socictim and f~eir members, de-msitors, creditors, . employees and other gersons having zv,y ~jghts: assets or liabiities in dation to dl or %y of ti~c ~C~IEIX~ societies."; t2) ia subs~xgon (4), %e words "or poten-

Amendment of Section 21 In section 21, of the principal Act,--

1. (i) in sub-section (1), clause

1. (a) shall be omitted;
   • (ii) in sub-section (2), after the words "sanctioning benami loans", the words "or against whom an order of surcharge is issued under section 60" shall be inserted.

In section 31 of the principal Act,-

1. (1) in sub-section (1),-
   • (i) in clause (a),-
   • (a) the first proviso shall be omitted;
   • (b) in the second proviso, for the words "Provided further" the words "provided" shall be substituted;
   • (c) in the third proviso for the words "provided also", the words "provided further" shall be substituted.
     • (ii) in clause
   • (b) in the first proviso, the words "an Agricultural Development Bank" and "a Primary Cooperative Marketing Society" shall be omitted.
2. (2) after subsection (4), the following subsection shall be added, namely:- "(5) In the case of all primary cooperative societies, the president shall, subject to the provisions of section 21-A, be elected by the members of the general body from among themselves in the manner prescribed. The president elected under this sub-section shall be an ex-officio member of the Committee."

In section 34-A of the principal Act, after subsection (13), the following subsection shall be added namely:- "(14) The provisions of this section shall not apply in respect of president of any co-operative society elected by the members of the general body from among themselves."

In section 86 of the principal Act,-

1. (i) in subsection (3), in clause (b), after the words "until election", the expression "till the election of a President of a Primary Co-operative Society referrd in sub-section

1. (5) of section 31 shall be inserted;
   • (ii) in sub-section (4), for the expression "to committee shall be referred under sub-section
2. (1) or", the expression "shall be referred under" shall be substituted.

In section 88 of the principal Act, in sub-section

1. (1) for the words "Agricultural Development Banks to the Central Agricultural Development Bank" the words "Primary Agricultural Co-operative Societies to the financing bank and by the financing bank to the Central Agricultural Development Bank" shall be substituted.

In section 93 of the principal Act, in sub-section (2), for the expression "Andhra Pradesh Ceiling on Agricultural Holdings Act, 1961", the expression "Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973" shall be substituted.

Sections 114 A and 114 B of the principal Act shall be omitted.

Throughout the principal Act, for the words "Agricultural Development Bank" or "Agricultural Development Banks" wherever they occur, the words "Financing Bank/Primary Agricultural Co-operative Society" and "Financing Banks/Primary Agricultural Co-operative Societies" shall respectively be substituted.

1. (1) With effect on and from a date appointed by the Government under sub-section
2. (2) of section 1, the Primary Agricultural Development Banks registered under the principal Act or deemed to have been registered under that Act shall stand abolished.
3. (2) On such abolition of a Primary Agricultural Development Bank under sub-section (1), --
   • (a) all rights and assets vesting in the said Bank and all liabilities against it shall devolve on the Co-operative Central Bank of the district concerned;
   • (b) all contracts made by or on behalf of the said Bank prior to its abolition and subsisting on the date of such abolition shall be deemed to have been transferred to the Co-operative Central Bank of the district concerned;
   • (c) persons who were members of the said Bank prior to its abolition shall notwithstanding anything in section 19 or the rules or bye-laws, be deemed to be nominal members of the Co-operative Central Bank of the district concerned without the right to vote till their loans are discharged;
   • (d) the Registrar may transfer the officers and other employees who immediately before such abolition were in the service of the said Bank (including those belonging to a centralised service) to the service of the Financing Bank or a Primary Agricultural Co-operative Society in the manner prescribed: Provided that,--
     • (i) the terms and conditions applicable to such officers and other employees consequent on their absorption in the service of the Co-operative Central Bank or the Primary Agricultural Co-operative Society shall not be less favourable than those applicable to such employees immediately before such abolition as respects pay and allowances, leave, gratuity, provident fund and age of superannuation; and
     • (ii) the service rendered by any such officer or other employee under the said Bank upto its abolition shall be deemed to be service under the Co-operative Central Bank or, as the case may be the Primary Agricultural Co-operative Society and he shall be entitled to count that service for purpose of increment, leave or Provident fund and gratuity.

In the Andhra Pradesh Co-operative Societies (Amendment) Act, 1985, for Section 36, the following section shall be substituted, namely:- "Sections 36. Notwithstanding anything in the principal Act and any judgement, decree or order of any court or tribunal or other authority to the contrary, it shall be lawful for the Registrar to hold elections to the societies before the 30th June, 1987 in accordance with the provisions of the Principal Act and the rules made thereunder."

The Andhra Pradesh Co-operative Central Agricultural Development Bank (Corporation) Act, 1961 is hereby repealed:

Provided that any bank existing at the commencement of the Andhra Pradesh Co-operative Laws (Amendment) Act, 1987 which has been registered or deemed to have been registered under the repealed Act shall be deemed to have been registered under the Andhra Pradesh Co-operative Societies Act, 1964, and the bye laws of such bank shall, so far as they are not inconsistent with the provisions of the said 1964 Act or the rules made thereunder, continue to be in force, until altered or added in accordance with the provisions of the said Act and the rules made thereunder.

1. Short title and commencement

1. (1) This Act may be calleh the Andhra Pradesh Co-operative Laws (Amendment) Act, 1987.
2. (2) Sections 4(1), 6, 7 to 11 and 13 shall come into force on such date as the State Government may, by notification, appoint and the remaining provisions shall come into force at once. 2. Amendment of Section 32, Act 7 of 1964 In the Andhra Pradesh Co-operative Societies Act, 1964 (hereinafter referred to as the principal Act), in section 32, in sub-section (7), in clause (a), for the words "two years", the words "three years" shall be substituted. 3. Amendment of section 61 In section 61 of the principal Act,-
   • (i) in sub-section (3), in clause (b), after the words "till election", the expression "till the election of a President of a Primary Co-operative Society referred to in sub-section
3. (5) of section 31 shall be inserted;
   • (ii) in sub-section (4), for the expression "to committee shall be referred under sub-section
4. (1) or", the expression "shall be referred under" shall be substituted. 4. Amendment of Section 35 In section 31 of the principal Act,-
5. (1) in sub-section (1),-
   • (i) in clause (a),-
   • (a) the first proviso shall be omitted;
   • (b) in the second proviso, for the words "Provided further" the words "Provided" shall be substituted;
   • (c) in the third proviso for the words "provided also", the words "provided further" shall be substituted.
     • (ii) in clause
   • (b) in the first proviso, the words "an Agricultural Development Bank" and "a Primary Co-operative Marketing Society" shall be omitted.
6. (2) after subsection (4), the following sub-section shall be added, namely:- "(5) In the case of all primary cooperative societies, the president shall, subject to the provisions of section 21-A, be elected by the members of the general body from among themselves in the manner prescribed. The president elected under this sub-section shall be an ex-officio member of the Committee." 5. Repeal of Ordinance 5 of 1987 and Ordinance 9 of 1987 In section 34-A of the principal Act, after subsection (13), the following subsection shall be added namely:- "(14) The provisions of this section shall not apply in respect of president of any cooperative society elected by the members of the general body from among themselves."