Chapter VI PRIVILEGES OF CO-OPERATIVE SOCIETIES

A co-operative society registered under this Act shall be a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to hold property, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purpose for which it is constituted.

Any register or list of members kept by any co-operative society shall be prima facie evidence of any of the following particulars entered therein, namely:- (a) the date on which any person became a member; (b) the date on which any such member ceased to be a member; (c) the number of shares held by such member and the date from which so held; and (d) the nominees of a member, if any: Provided that every individual enrolled as a member in a primary society shall furnish his photograph, his permanent address and correspondence address to the society and shall communicate the change, if any, within a period of fifteen days of such change to the Registrar.

Any register or list of mortgages and charges kept by any co-operative society shall be prima facie evidence of any of the following particulars entered therein, namely:- (a) the date on which the mortgage or charge was created by a member in favour of the society; (b) the particulars of the land or other immovable property mortgaged or charged; and (c) the date on which declaration of the mortgage or charge was sent to the sub-registrar or revenue authority, as the case may be.

(1) A copy of any entry in a book of co-operative society regularly kept in the course of its business shall, if certified in such manner as may be prescribed, be received in any suit or legal proceeding as prima facie evidence of the existence of such entry and shall be admitted as evidence of matters, transactions and accounts therein recorded in every case where, and to the same extent as, the original entry itself is admissible. (2) No officer of a co-operative society and no officer in whose office the books of a co-operative society are deposited after liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society‘s books or documents the contents of which can be proved under this Section or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under order of the court or arbitrator made for special cause.

Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Registration Act, 1908, shall apply to – (i) any instrument relating to shares in a co-operative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or (ii) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title, or interest to or in immovable property, except in so far as it entitles the holder thereof to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or (iii) an endorsement upon or transfer of any debenture issued by any such society.

(1) The Government may, by notification, remit in respect of any class of co-operative societies – (a) the stamp duty chargeable under any law for the time being in force in respect of any instrument executed by or on behalf of a co-operative society or by an officer or member thereof and relating to the business of such society, or any class of such instruments or in respect of any award or order made under this Act, in cases, where, but for such remission the co-operative society, officer or member, as the case may be, would be liable to pay such stamp duty; or (b) any fee payable under any law for the time being in force relating to the registration of the documents or court fees. (2) The Government may, by notification, exempt any class of co-operative society from – (a) land revenue; and (b) taxes on sale or purchase of goods.

(1) Notwithstanding anything contained in any law for the time being in force, a member of a co-operative society may execute an agreement in favour of the society providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society. (2) On the execution of such agreement, the employer shall, if so required by the co-operative society by a requisition in writing and so long as the society does not intimate that the whole of such debt or demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society. Such payment shall be valid discharge of the employer for his liability to pay the amount deducted. (3) If after the receipt of a requisition made under sub-section (2), the employer at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the society, the society shall be entitled to recover any such amount from the employer as per provisions of section 110 of this Act. Explanation :- ‘employer‘ shall include an officer disbursing salary.

Notwithstanding anything contained in any law for the time being in force, the Government may – (a) subscribe to the share capital of a co-operative society; (b) give loans or make advances to a co-operative society; (c) guarantee the repayment of principal and payment of interest on debentures issued by a co-operative society; (d) guarantee the repayment of share capital of a co-operative society and dividends thereon at such rates as may be specified by the Government; (e) guarantee the repayment of principal and payment of interest on loans and advances to a co-operative society; and (f) give financial assistance in any other form including subsidies to any co-operative society.