Chapter XX GENERAL

No person other than a co-operative society shall trade or carry on business under any name or title of which the word “Co-operative” or its equivalent in any Indian language is part: Provided that nothing in this section shall apply to the use by any person or his successors in respect of any name or title under which he carried on business at the date on which the Co-operative Societies Act, 1912 (2 of 1912), came into operation.

Notwithstanding anything contained in this Act, the Government may by general or special order, after recording its reasons and subject to such conditions, if any, as

No suit shall be instituted against a co-operative society or any of its officers in respect of any act touching the business of society until the expiration of two months next after notice in writing has been delivered to the Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims and the plaint shall contain a statement that such notice has been so delivered or left.

Whenever under the provisions of this Act, a notice is required to be given to any person in writing, it shall be sufficient to send such notice by registered post.

The provisions of the Companies Act, 1956, shall not apply to the co-operative societies.

Every society which has been registered under the Co-operative Credit Societies Act, 1904, or the Co-operative Societies Act, 1912, or the Co-operative Societies Act, 1954, or the Punjab Co-operative Societies Act, 1961, shall be deemed to be registered under the corresponding provisions of this Act, and its bye-laws shall, so far as the same are not inconsistent with the provisions of this Act, continue in force until altered or rescinded.

(1) Save as provided in this Act, no Civil Court, or revenue court shall have any jurisdiction in respect of– (a) the registration of a co-operative society or its bye-laws or of an amendment of bye-laws; (b) the removal of a committee; (c) any dispute required under section 102 to be referred to the arbitration of the Registrar or any matter in which proceedings under section 104 have been initiated; or (d) any matter concerning the winding up and dissolution of a co-operative society. (2) While a co-operative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against the liquidator as such or against the society or any member thereof, except by leave of the Registrar and subject to such terms as he may impose. (3) Save as provided in this Act no order, decision or award, made under this act, shall be questioned in any court on any ground whatsoever.

While exercising the functions conferred on him by or under this Act, the Registrar, the arbitrator or any other person deciding a dispute under section 103 and the liquidator of a co-operative society or person entitled to audit, inspect or hold an enquiry shall have the same power as are vested in a civil court, under the Code of Civil Procedure, 1908(5 of 1908), in respect of the following matters, namely:- (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of any document; (c) proof of facts by affidavits; and (d) issuing commissions for examination of witnesses.

No suit, prosecution or other legal proceedings shall lie against the Registrar or any person subordinate to him or acting on his authority in respect of anything in good faith done or purporting to have been done under this Act.

(1) The Government may, for any co-operative society or class of such societies, make rules to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- (i) the maximum number of shares or portion of the capital of a co-operative society which may, subject to the provisions of section 6, be held by a member; (ii) the form to be used, the conditions to be complied with and the procedure for making an application for the registration of a society under section 7; (iii) the procedure to be followed in making, altering and abrogating bye-laws and the conditions to be satisfied prior to such alteration or abrogation under section 10; (iv) the procedure and the conditions for change in the form and extent of the liability of a co-operative society under section 12; (v) the condition to be complied with by persons applying for admission or admitted as members, for the election and admission of members and for the payment to be made and the interest to be acquired before the exercise of the right of membership; (vi) the manner in which funds may be raised by means of shares and debentures or otherwise; (vii) for general meeting of the members and for the procedure at such meetings and the powers to be exercised by such meetings; (viii) the prohibitions and restrictions subject to which societies may transact business with persons who are not members; (ix) to proportion of individuals and societies in the constitution of the committee of management and the general body of a co-operative society of which another co-operative society is a member; (x) the election and nomination of members of committees, the appointment or election of officers and the suspension and removal of the members and other officers and the powers to be exercised and the duties to be performed by the committees and other officers; (xi) appointment of chairman and other office-bearers of a society; (xii) the appointment and regulation of work entrusted to administrator; (xiii) prohibiting a co-operative society from electing a defaulting member on its committee or to be its representative; (xiv) the accounts and books to be kept by a co-operative society, the audit of such accounts and the charges, if any, to be made for such audit, and for the periodical publication of a balance sheet showing the assets and liabilities of a co-operative society; (xv) the statements to be submitted by a co-operative society to the Registrar, the persons by whom and the form in which such statements shall be submitted and in case of failure for the levy of expenses of preparation; (xvi) the formation and maintenance of a register of members, register of shares and register of mortgages and charges and the forms to be maintained; (xvii) the appointment of an arbitrator; (xviii) the persons by whom and the form in which copies of the entries in books of societies may be certified and for the charges to be levied for the supply of such copies; (xix) the procedure to be followed in proceedings before the Registrar, arbitrator or other persons deciding dispute; (xx) the withdrawal and expulsion of members and for the payments, if any, to be made to members who withdraw or are expelled and for the liability of past members and of the estates of deceased members; (xxi) the mode in which the value of a deceased member‘s share of interest shall be ascertained for the nomination of a person to whom such share or interest may be paid or transferred; (xxii) the payments to be made and conditions to be complied with by members applying for loans, the period for which any loan may be made and the maximum amount which may be lent to any member; (xxiii) the formation and maintenance of reserve fund and other funds and the objects to which such funds may be applied, and for the investment of any funds under the control of a co-operative society; (xxiv) the extent to which a co-operative society may limit the number of its members; (xxv) the conditions under which the profits may be distributed to the members of a co-operative society with unlimited liability and the maximum rate of dividend which may be paid by co-operative societies; (xxvi) the manner of calculation and writing off of bad debts by the co-operative societies; (xxvii) the procedure to be followed by a liquidator; (xxviii) the procedure to be followed in presenting and disposing of appeals under this Act; (xxix) the form of orders referred to in section 110; (xxx) the issue and service of processes and for proof of service thereof; (xxxi) the manner of effecting attachment; (xxxii) the custody, preservation and sale of property under attachment; (xxxiii) the investigation of claims by persons other than the defaulters to any right or interest in the attached property, and for the postponement of the sale pending such investigation; (xxxiv) the sale of perishable articles; (xxxv) the inspection of documents in the office of the Registrar or of any other officer or authority and the levy of fees for granting certified copies of the same; (xxxvi) the terms and conditions on which the Government may make share capital contribution or give assistance, financial or other, to societies and the terms and conditions on which the Government may guarantee the payment of principal and interest on debentures or bonds issued by societies or loans raised by them; (xxxvii) the manner in which funds may be raised by a society or a class of societies by means of share or debentures or otherwise and the quantum of funds so raised; (xxxviii) the form of declaration for creating a charge or mortgage; (xxxix) qualifications for members of the committee and employees of a society or class of societies and the conditions of service subject to which persons may be employed by societies; (xl) the method of communicating or publishing any order, decision or award required to be communicated or published; (xli) any other matter which has to be or may be prescribed. (3) Every rule made under this section shall be laid as soon as may be after it is made before the house of the State Legislature while it is in session for a total period of ten days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is laid, or the session immediately following, the house agrees in making any modification in the rule or that the rule should not be made, the rule shall, thereafter have effect only in modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

The Punjab Co-operative Societies Act, 1961 (25 of 1961) and the Punjab Co-operative Agricultural Development Banks Act, 1957 (26 of 1957) are hereby repealed.