Chapter VIII Chapter VIII

Miscellaneous

Registrar and other officers to be public servants :- The Registrar, a person exercising the powers of a Registrar, a person authorized to make an inspection under section 34 or 36 or to hold an inquiry under section 35,a liquidator and an arbitrator or arbitrators to whom any dispute is referred under section 48, shall be deemed to be public servants within the meaning of section of the Indian Penal Code (45 of 1860).

Proof of entries in societies book. –

1. (1) A copy of an entry in a book, register of list of a registered society regularly kept in the course of business, shall, if certified in such manner as may be prescribed by the rules, be admissible in evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case where, and to the same extent as. The original entry would, if produced, have been admissible to prove such matters, transactions and accounts.
2. (2) In the case such societies as the State Government may, be general or special order, direct, no officer of a society shall in any legal proceeding to which the society is not a party, be compelled to produce any of the society’s books, the contents of which can be proved under sub-section (1), or to appear as a witness to prove the matters, transaction and accounts therein recorded unless by order of the Courts or a Judge mad for special cause.

Delegation of power to hear appeals. – The State Government may, by general or special order, delegate its power of hearing appeals under the provisions of this Act, to any authority specified in such order.

Compulsory affiliation of registered societies to a Cooperative Federation. –

1. (1) the registered cooperative society in accordance with the provisions of Rules framed under the Act shall be affiliated to Bihar Cooperative Federation in such manner and on such condition as has been directed by the Rules for the purpose.
2. (2) The organization and activities of Bihar Cooperative Federation shall be regulated, under rules framed under the provisions of this Act, and for which affiliation under sub-section
3. (1) is compulsory.

Exemptions from requirements as to registration. –

1. (1) Notwithstanding anything contained in this Act, the State Government may, by special order in each case and subject to such conditions, if any, as it may impose, exempt any society from any of the requirements of this Act as to registration.
2. (2) The State Government may by general or special order exempt any registered society from any of the provisions of this Act, or may direct that such provisions shall apply to such society with such modifications as may be specified in the order.

Limitation. – Notwithstanding any of the provisions of the Indian Limitation Act, 1908 (9 of 1908), the period of limitation for debt including interest due to a registered society by a member there of shall be computed from the date on which such member dies of ceases to be a member of the society.

Power to exempt from income tax, stamp duty and registration fees. –

1. (1) The Central Government, by notification in the official Gazette, may in the Case of any registered society or class of registered societies, remit the income- tax payable in respect of the profits of the society, or of the dividends or other payment received by the member of the society on account of profits.
2. (2) The Collecting Government may be notification remit, in the case of any registered society or class of registered societies-
   • (a) the stamp duty with which under any law for the time being in force, instruments executed by or on behalf of a registered society or by an officer or member thereof and relation to the business of such society or any class of such instruments or decisions, awards or orders of the Registrar or of any arbitrator under this Act, are respectively chargeable, and
   • (b) any fee payable under the law of registration for the time being in force.

Exemption from compulsory registration of instrument relating to shares and debentures of a registered society Exemption from compulsory registration of instrument relating to shares and debentures of a registered society.– Nothing in clauses

1. (b) and
2. (c) of sub-section

1. (1) of Section 17 of the Indian Registration Act, 1908 shall apply to –
2. (1) any instrument relating to shares in registered society notwithstanding that the assets of such society consist in whole or in pat of immovable property; or
3. (2) any debenture by any such society and not creating, declaring assigning or extinguishing any, right, title or interest to or in immovable property except in so far as it entitles the holders to the security afforded by a registered instrument where by its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
4. (3) any endorsement upon or transfer of any debenture issued by any such society

65 B. Removal of difficulty. - If any difficulty arises in giving effect to the provisions of this Act the State Government may, association may require, by order published in official Gazette, to anything not inconsistent with the provisions of this Act for purpose of removing the difficulty.

Power to make rules. – The State Government may for the whole or any part of the State and for any registered society or a class of registered societies, make rules to carry out all or any of the purpose of this Act.

In particular and without prejudice to the generality of the foregoing power, such rules may-

1. (i) Prescribes the forms to be used and the conditions to complied with in the making of application for the registration of a society and the procedure in the mater of such applications;
2. (ii) Prescribes the conditions to be complied with by persons applying for admission or admitted as members and provided for the election and the admission of member and the payment to be made and the interests to be acquired before the exercise of the right of membership.
3. (ii) Prescribes the extent to which a society may limit the number of its members and, subject to the provision of section 29, prescribe the maximum number of shares or portion of the capital of society, which may be held by a member;
4. (iii) Prescribes the condition of acceptance of registration of members and prescribe for the expulsion of member and for the payments, if any to made to members who withdraw or are expelled;
5. (iv) prescribes the condition of acceptance of registration of members and prescribe for the expulsion of member and for the payments, if any to be made to members who withdraw or are expelled;
6. (ii) provide for the general meeting of the members and for the procedure at such meetings and the powers to be exercised by such meeting ;
7. (iii) prescribe the matters in respect of which is a society may or shall make bye-laws, and the procedure to be followed in making, altering and abrogating bye-laws and the conditions to be satisfied prior to such making, alteration or abrogation;
8. (iv) prescribe the manner in which managing committees and sub –committees thereof shall be constituted, and provide for the appointment, suspension and removal of the members of managing committees and other officers, and for the procedure at meetings of managing committees and for the powers to be exercised and the duties to be performed by managing committees and other officers.
9. (v) prescribe the conditions under which a society may be prohibited form appointing a defaulting member of any society to its managing committee of to the managing committee of any other society and from allowing him to exercise his right of membership in the society or to represent it in on other society:
10. (vi) prescribe the procedure to be followed when societies change the forum or extent of their liability, and provide for the amalgamation and division of societies and prescribe the conditions of such amalgamation and division;
11. (vii) prescribe the conditions and terms under which and regulate the manner in which funds may be raised by means of shares deposits of debentures or otherwise.
12. (viii) prescribe the conditions to be complied with by members applying for loans, the period for which loans may be made, the amount which may be lent and the manner of re payment;
13. (ix) provide for the deposit or investment of any funds under control of a society;
14. (xiii) prescribe the conditions, prohibitions and restrictions to which societies may –

1. (a) transact business with persons who are not members; or
2. (b) make advances against movable property;
   • (xiv) prescribe the method of calculating the working capital and the net profits and the conditions under which such profits may be distributed, and the maximum rate of dividend which may be paid by any society or cooperative societies;
   • (xv) provide for the formation and maintenance of reserve funds and the objects to which such funds may be applied and for the writing off of bad debts.
   • (xvi) prescribe the condition for refund of share money and transfer of shares;
   • (xvii) provide for the mode in which the value of a deceased member’s interest shall be ascertained, and for the manner of nomination of a person to whom such interest may be paid or transferred; (xviii) provide for the information and maintenance of a register of members and where the liability of members is limited by shares, of a resister of shares and share-holders;
   • (xix) prescribe the forms to be used and the accounts and registers to be kept and the reports and returns to be submitted by a society and provide for the persons by whom such reports and returns shall be submitted, and in case of failure to submit and such reports or returns, for the levy of the expenses of preparing them;
   • (xx) prescribe rules for audit under section 33 and for the periodical publication of balance-sheets showing the assets and liabilities of a society;
3. (xxi) provide for the persons by whom and the form in which copies of entries in records and registers of societies may be certified and for the charge to be levied for the supply of such copies;
4. (xxii) provide for the custody and destruction of records and registers; (xxiii) provide for the procedure to be followed in the appointment or removal of and for the payment of remuneration to, a liquidator.
5. (xxiv) prescribe the procedure to be followed by the liquidator and provide for the manner of disposal of the surplus, if any, of the society;
6. (xxv) prescribe the procedure to be followed in presenting and disposing of appeals under this Act;
7. (xxvi) prescribe the procedure to be followed in the appointment of an arbitrator or arbitrators and in proceeding before the Registrar any person exercising the powers of a Registrar and an arbitrator of arbitrators including the transfer, reference and withdrawal of cases; (xxvii) prescribe the procedure and condition for exercise of the powers conferred by section 49: xxviii provides for all matters expressly requited or allowed by this Act to be prescribed by rules. [xxix] provides for all matters expressly required or allowed by this Act be prescribed by rules.

1. (3) The power to make rules conferred by this section is subject to the condition to the rules being made after previous publication.
2. (4) All rules made under this Section shall be published in the official Gazette and on such publication shall have