Vidhi Codex

Bare Act

The Bihar Cooperative Societies Act, 1935

Corporate1935136 sections12 chapters

The Bihar Cooperative Societies Act, 1935, serves as the primary legal framework governing all cooperative organizations operating within the state of Bihar. Its main function is to establish rules for the registration and management of these societies to support economic cooperation among farmers, rural artisans, and other members. Unlike independent companies, these organizations function democratically, and the law ensures they function without interference from standard company regulations. It primarily targets agricultural credit societies and multi-purpose groups while also protecting existing societies from legal disruptions by automatically transferring their registration under the new system for continuity.

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Chapter I Chapter I →

  1. 1Short title and extent
  2. 2Definitions
  3. 3Indian Companies Act, 1913 not to apply
  4. 4Saving of existing Societies
  5. 5Construction of reference to Cooperative Societies Act, 1912 in enactments

Chapter II Chapter II →

  1. 6The Registrar
  2. 7Societies which may be registered
  3. 8Conditions of registration
  4. 9Application for registration
  5. 10Laws have been adopted.
  6. 11Registration
  7. 12Provide that such appeal may be filed within sixty days from the registration order.

Chapter III Chapter III →

  1. 13Societies to be bodies corporate
  2. 13APromotion of Cooperative movement by Government
  3. 13BDisplay of Name
  4. 14Registered Societies to have a managing committee etc
  5. 15Restrictions on borrowing
  6. 16Restrictions on lending
  7. 17Restrictions on other transactions with non-member
  8. 18If any, as the State Government may by rules prescribe.
  9. 19Investment of funds
  10. 20Contribution to charitable purpose
  11. 21Provided that the Registrar may, by general or special order, prohibit any society or class of societies from making any condition under this section.
  12. 22Charge and set off in respect of shares of interest of member
  13. 23AApplication of section 23 to non-members
  14. 24Transfer of interest on death of member
  15. 24APower of Registrar to sanction compromise between a registered society and its creditors
  16. 25Amendment of the bye-laws of a registered society
  17. 26Provided that such appeal shall be filed within two months from the receipt of order or non receipt of conclusive evidence.

Chapter IV Chapter IV →

  1. 27Member not to exercise rights till due payment made
  2. 28Votes of members
  3. 29Restriction on holding of members
  4. 30Share or interest not liable to attachment
  5. 31Restrictions on transfer of share or interest
  6. 32Liability of a past member and of the estate of a deceased member

Chapter V Chapter V →

  1. 33Audit
  2. 34Inspection by Registrar
  3. 35Inquiry by Registrar
  4. 36Inspection of books by Registrar
  5. 37Inspection of books by financing bank
  6. 38Power to call for documents and to issue summons
  7. 39Provided that the power under this clause shall be exercised only by such persons as are authorised by rules made in this behalf.
  8. 40Surchrge

Chapter VI Chapter VI →

  1. 41Dissolution of Managing Committee
  2. 42Winding up order
  3. 43Appeal against the order of winding up
  4. 44Liquidation and dissolution

Chapter VI-A Chapter VI-A →

  1. 44ADefinitions
  2. 44BApplication of Chapter to Land Development Bank
  3. 44CChapter.
  4. 44DTrustee to be a Corporation sole
  5. 44EIssue of debenture by the Board
  6. 44FVesting of mortgaged property in the Trustee and floating charge of debenture holders
  7. 44GGuarantee by the State Government of principal and interest on debentures
  8. 44HPriority of mortgage over claims
  9. 44IC in respect of the property of the loanee specified in the said publice notice.
  10. 44JMortgages executed in favour of Land Development Bank to Stand Vested in Trustee
  11. 44KPower of Primary Land Development Bank to receive money and grant discharge
  12. 44LRegistration of mortgage in favour of Land Development Bank
  13. 44MPower of Land Development Bank to pay prior debts of mortgagors and secure consequential reliefs
  14. 44NPower of Land Development Bank to advance loans and hold lands
  15. 44OPublic notice for entertaining objection
  16. 44PMortgage executed by managers of Hindu joint families or natural or legal guardians of minors or disabled persons
  17. 44QOrder granting loan conclusive of certain matters
  18. 44RRecovery of loan by Land Development Bank
  19. 44SProvided that such loan, interest or cost may be recoverable also by the State Cooperative Land Development Bank even if the loan has been granted by a Primary Cooperative Land Development Bank affiliated to it.
  20. 44TDistraint and sale
  21. 44UPowers of sale when to be exercised
  22. 44VPowers of Land Development Bank where mortgaged property is destroyed or security becomes insufficient
  23. 44WPower of the Board or Trustee to take action against defaulters
  24. 44XConfirmation of sale
  25. 44YDisposal of sale proceeds
  26. 44ZProvided that, before such payments are made, the unsecured dues owing from the mortgagor to the Land Development Bank may be adjusted.
  27. 44AATitle of purchaser not to be questioned on ground of irregularities, etc
  28. 44ABMortgage not to be questioned on insolvency of mortgagor
  29. 44ACAppointment of receiver and his powers
  30. 44ADRestriction on leases
  31. 44AERegistration of documents executed on behalf of a Land Development Bank
  32. 44AFDelegation of certain powers by Board
  33. 44AGProvision of the Transfer of Property Act, 1882 to apply to notice under this chapter
  34. 44AHBoard’s power of supervision over Primary Cooperative Land Development Banks
  35. 44AIPower to make rules

Chapter VI-B Chapter VI-B →

  1. 44AJApplication of the Chapter to cooperative Bank
  2. 44AKDivision, amalgamation, compromise, etc
  3. 44ALSupersession of Managing Committee of Cooperative Bank
  4. 44AMReserve Bank.
  5. 44ANReimbursement to Deposit Insurance Corporation
  6. 44AOFinality of the Reserve Bank’s sanction or requisition

Chapter VI-B Chapter VI-B →

  1. 44APProvisions of this chapter to apply to Agricultural Credit Society
  2. 44AQPower of Registrar to order Liquidation of Societies and amalgamation of several Societies
  3. 44ARAppeal from the order of the Registrar
  4. 44ASElection of new society formed after amalgamation

Chapter VII Chapter VII →

  1. 45Offences
  2. 45AHanding over charge on election/supersession/expiry of term
  3. 46Prohibition of the use of the word ‘cooperative’
  4. 47Cognizance of offences
  5. 48Disputes
  6. 49Registrar, liquidators and arbitrators to have certain powers of Civil Court
  7. 50Attachment of property
  8. 51Registrar, be executed by the Collector in whose jurisdiction the property lies, in the same manner as an order of a Revenue Court.
  9. 52Recovery of sums due
  10. 53Recovery of sums due to the Government
  11. 54Property from which sums due from a society can be recovered
  12. 55Liability of past members
  13. 56Power of revision by Registrar
  14. 57Bar of jurisdiction of Court

Chapter VII-A Chapter VII-A →

  1. 57ACases in which application for distraint may be made
  2. 57BForm of application
  3. 57CProcedure on receipt of application
  4. 57DExecution of order for distraint
  5. 57EService of demand and account
  6. 57FRights to reap etc., produce
  7. 57GSale proclamation to be issued unless demand is satisfied
  8. 57HPlace of sale
  9. 57IWhen produce may be sold standing
  10. 57JManner of sale
  11. 57KPostponement of sale
  12. 57LPayment of purchase money
  13. 57MCertificate to be given to purchaser
  14. 57NProceeds of sale how to be applied
  15. 57OCertain persons may not purchase
  16. 57PProcedure where demand is paid before the sale
  17. 57QDistraint of property which is under attachment
  18. 57RSuit for compensation for wrongful distraint and appeals
  19. 57SPower to make rules
  20. 57TInterpretation

Chapter VIII Chapter VIII →

  1. 58Registrar and other officers to be public servants
  2. 59Proof of entries in societies book
  3. 60Delegation of power to hear appeals
  4. 61Compulsory affiliation of registered societies to a Cooperative Federation
  5. 62Exemptions from requirements as to registration
  6. 63Limitation
  7. 64Power to exempt from income tax, stamp duty and registration fees
  8. 65In this sub-section” collection Government” has the same meaning as in the Indian stamp Act, 1899.
  9. 65BRemoval of difficulty
  10. 66Power to make rules

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