Chapter VII Chapter VII

Penalties and Procedure

Offences. –

1. (1) It shall be an offence under this Act it-
   • (a) an officer or member of a registered society The election of the new society established under sub-section
2. (2) of section 41 intentionally neglects or refuses to do any act required to be done, or to furnish any information required to be furnished, by this Act or by any rule; or
   • (b) an officer or member of a registered society or any person appointed under sub-section
3. (2) of section 41 willfully makes a false return or furnishes false information.
4. (2) Any officer or member of registered society 1[or any person appointed under sub-section
5. (2) of section 41] guilty of an offence under sub-section
6. (1) shall be punishable with fine which may extend to fifty rupees.

1. (1) On election of new secretary or on supersession of cooperative society or on expiry of the term of the office bearers of a cooperative society, the outgoing secretary or the person holding charge of the office of the cooperative society shall hand over charge of his office and all papers and properties in his possession as secretary or in charge of the said society to the new secretary or the officer directed by the prescribed authority to take charge of the affairs of the said society.
2. (2) If the outgoing secretary of a cooperative society or the person holding charge of the office of secretary fails or refuses to hand over charge of his office as required under sub-section
3. (1) above, the prescribed authority or any officer empowered by it in this behalf, may by an order in writhing direct the outgoing Secretary or the person holding charge of the office of Secretary to hand over immediately the charge of his office and all papers and properties in his possession as such secretary to the new secretary in case of fresh election, and in case of supersession or on expiry of the term of office to the officer appointed to manage the affairs of the society.
4. (3) If the person to whom a direction has been issued under sub-section
5. (2) fails to comply with the said direction he shall be punishable with the imprisonment which may extend up to the period of six months or a fine or a fine of Rs. 500, or with both.
6. (4) The offence under sub-section
7. (3) shall be cognizable.
8. (5) If it is so required, the prescribed authority may, by order in writhing, authorise any officer to forcibly take possession with the help of local police and Magistrate, of all papers and properties from the secretary or the person holding charge of the office of secretary and hand them over to the new secretary in case of fresh election and to the officer of the State Government appointed to run the affairs of the society in case of its supersession or expiry of the term of office bearers where fresh election in still to be held. 45A. Production of records by the Secretary or person in charge of the office of a Cooperative Society Production of records by the Secretary or person in charge of the office of a Cooperative Society.-
9. (1) The Secretary of a Cooperative Society shall, on direction by Registrar or by any other Gazetted officer of Cooperative department, forthwith hand all records and documents of the Society as the Registrar or the officer mentioned above may required for inspection or enquiry relating to the affairs of the said Cooperative Society,
10. (2) If the Secretary of the person in charge of the office of the Cooperative Society fails, refuses of avoids to hand over the documents as required under foregoing sub-section
11. (1) he shall be punishable with imprisonment for a period which my extend up to six months or with a fine of Rs. 500/- or with both, and such an offence shall be cognizable.
12. (3) When a person to whom a direction has been issued sub-section
13. (1) of this section fails, refuses of avoids of furnish all records and documents of that Society with the help of police and magistrate.

Prohibition of the use of the word ‘cooperative’ -

1. (1) No person or society other than a registered society shall trade or carry on business under any name of title of which the word cooperative is part without the sanction of the State Government. Provided that nothing in this section shall apply to the use by any person or his successor in interest of any name or title under which he traded or carried on business at the date on which the Cooperative Society Act. 1912, Came into operation.
2. (2) Any officer or member of a society or any person who contravenes the provisions of sub-section
3. (1) shall be punishable with fine which may extend to fifty rupees, and, in the case of a continuing offence, with a further fine of five rupees for each day on which the offence is continued after conviction therefore.

Cognizance of offences. -

1. (1) No Court inferior to that of a Magistrate of the second class shall try any offence under this Act.
2. (2) Every offence under this Act shall, for the purpose of the code of criminal Procedure, 1898 2[ 5 of 1898)] be deemed to be non-cognizable.
3. (3) No Prosecution for an offence under this Act shall be instituted without the previous sanction of the Registrar, and the Registrar shall not sanction the prosecution of any person unless he has given such person an opportunity of being heard.

Disputes. -

1. (1) If any dispute touching the business of a registered society (other than a dispute regarding disciplinary action taken by the society or its managing committee against a paid servant or the society) arises.-
   • (a) amongst members, past members, persons claiming through members, past members or deceased members, and sureties of members, past members or deceased members, whether such sureties are members or non-members; or
   • (b) between a member, past member, persons claiming through a member, past member or deceased member, or sureties of members, past members or deceased member, whether such sureties are members or non-members and the society, its managing committee or any officer, agent or servant or the society; or
   • (c) between the society or its managing committee and any past or present officer, agent or servant of the society; or
   • (d) between the society and any other registered society; or
   • (e) between a financing bank authorized under the provisions of subsection
2. (1) of section 16 and a person who is not a member of a registered society; such dispute shall be referred to the Registrar; Provided that no claim against a past member or the estate of a deceased member shall be treated as a dispute if the liability of the past member or of the estate of the deceased member has been extinguished by virtue of section 32 or section 63. Explanation.-
3. (1) A claim by a registered society for any debt or demand due to it from a member, non-member past member or the nominee, heir or legal representative of a deceased member or non-member or from sureties or members, past members or deceased members, whether such sureties are members or non-members, shall be a dispute touching the business of the society within the meaning of this sub-section even in case such debt or demand is admitted and the only point at issue is the ability to pay or the manner of enforcement of payment. Explanation.-
4. (1) The question whether a person is or was a member of a registered society or not shall be a dispute within the meaning of this sub-section.
5. (2) The Registrar may on receipt of such reference.-
   • (a) decide the dispute himself; or
   • (b) transfer it for disposal to any person exercising the powers of a Registrar in this behalf; or
   • (c) subject to any rules refer it for disposal to an arbitrator or arbitrators.
6. (3) Subject to any rules, the Registrar may withdraw any reference transferred under clause
   • (b) of sub-section
7. (2) or referred under clause
   • (c) of the said subsection and deal with it in the manner provided in the said sub-section.
8. (4) The appointment of an arbitrator or arbitrator and the procedure to be followed in proceedings before the Registrar or such arbitrators shall be regulated by rule.
9. (5) In the case of dispute involving property which is given as collateral security, it shall be competent to the person deciding such dispute to issue mortgage award which shall have the same force as a mortgage decree of a competent Civil Court.
10. (6) Any person aggrieved b any decision given in dispute transferred or referred under clause
    • (b) or
    • (c) of sub-section
11. (2) may, within three months from the date of such decision, appeal to the Registrar.
12. (7) The Registrar, in the case of dispute under this section, shall have the power of review vested in a civil Court under section 144 and under Order XL VII, rule 1 of the Code of Civil Procedure, 1908, and shall also have the inherent jurisdiction specified in section 151 of the said Code.
13. (8) The Registrar may where it appears to him advisable, either of application or of his own motion, state a case and refer it to the District Judge for decision, and the decision of the District Judge shall be final.
14. (9) Save as expressly provided in this section, a decision of the Registrar under this section, and subject to the orders of the R3gistrar on appeal or review, a decision given in a dispute transferred or referred under clause
    • (b) or
    • (c) of subsection
15. (2) shall be final.

Registrar, liquidators and arbitrators to have certain powers of Civil Court. – Subject to any rules, the Registrar, any person authorized to hold an inquiry under section 35 or an inspection under section 36, any liquidator, any person exercising the powers of a Registrar, of any arbitrator or arbitrators appointed under section 48, shall in so far as such powers are necessary for carrying out any of the purposes of this Act, have power to summon and enforce the attendance of witnesses and parties concerned and to examine them upon oath and to compel the production of any books, accounts, documents or property by the same means and, so far as may be, in the same manner as if provided in the case of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908).

Attachment of property. –

1. (1) Where the Registrar is satisfied on the application of the liquidator or of a society that any person with intent to defeat or delay the execution of any order that may be passed against him under section 44 or 48.
   • (a) is about to dispose of the whole or any part of his property, or
   • (b) is about to remove the whole or any part of his property from the local limits of the jurisdiction of the Registrar, the Registrar may, unless adequate security is furnished to his satisfaction, direct the attachment of the said property or such part thereof , as he thinks, necessary, any such attachment shall have the same effect as if it had been made by a competent court.
2. (2) An order of attachment passed under sub-section
3. (1) shall, on the application of the

Enforcement of orders Enforcement of orders. – Orders passed under section 44, 48 and 50 shall in addition to any other method of enforcement provided under this Act, on application be enforced as follows :-

1. (a) when passed by the Registrar, a liquidator or by an arbitrator or arbitrators, by any Civil Court having local jurisdiction in the same manner as a decree of such Court:
2. (b) when passed by the District judge, in the same manner as a decree of the district judge made in the suit pending before him.

Recovery of sums due. – any sum payable by any person or by any registered society -

1. (a) as fees for an audit held under section 33,
2. (b) in accordance with an order of the Registrar under section 39 apportioning the costs of an inquiry of inspections,
3. (c) in accordance with an order passed under Section 40.
4. (d) in accordance with an order of the Registrar or of a liquidator passed under section 44, or
5. (e) in accordance with an order, decision or award passed or made under section 48.
6. (f) As an amount due from member, past member or the nominee, heirs, or legal representative of the deceased member or a primary cooperative society shall be recoverable, as a public demand in any area, in which the Bihar and Orissa Public Demands Recovery Act, 1914 ( B.& O. Act 4 of 1914), is in force or as an arrear of land revenue throughout the whole of the State and the Registrar or other person authorized by him in this behalf, shall be deemed to be the person to whom such public demand is due or to whom such arrear of land revenue is payable.

Recovery of sums due to the Government. – All sums due from a registered society or from an officer or member, past or present of from his sureties or from the estate of a deceased member of a registered society or from his sureties as such to the Government including any casts awarded to the Government may be recovered in the same manner as arrears of land-revenue.

Property from which sums due from a society can be recovered. – All sums due from a registered society to the Government and all sums recoverable from a registered society under section 33,39,44 or 48 may be recovered firstly, from the property of the society, secondly, in the case of a society, the liability of the members of which is limited, from the members, past members or estates of deceased members, or their sureties subject to the limit of their liability; and thirdly, in the case of other societies from the members, past members, or estates of deceased members or their sureties to such extent or in such proportion as may be determined by the Registrar.

Liability of past members. – Notwithstanding anything contained in sections 53 and 54, the liability of past members and of the estates of deceased members shall in all cases be subject to the provisions of sections 32 and 63.

Power of revision by Registrar. – The Registrar may, on application or of his own motion, Revise any order passed by a person exercising the powers of a Registrar or by a liquidator under section 44 provided such order has been passed within a period not exceeding six months: Provided that the Registrar shall have no power to revise any order against which appeal has been provided under provisions of this Act,”

Bar of jurisdiction of Court. –

1. (1) Save in so far as expressly provided in this Act., no Civil or Revenue Court shall have any jurisdiction in respect of any matter concerned with the winding up or dissolution of the registered society or suspension of the Managing Committee of a registered society under its cat, or of any dispute required by section 48 to be referred to the Registrar or of any proceedings, under Chapter VII A.
2. (2) While a society is in liquidation, no suit or other legal proceeding shall be proceeded with or instituted against the liquidator as such or against the society or any member thereof on any matter touching the affairs of the society, except by leave of the Registrar and subject to such terms as he may impose.
3. (3) No order of the State Government, District judge, Registrar, a person appointed to assist the Registrar, liquidator, or an arbitrator or arbitrators purporting to be one, which under any provision of this Act is declared to be final shall be liable to be challenged, set aside, modified. revised, or declared void in any Court upon merits or upon any ground whatsoever except want of jurisdiction.