Vidhi Codex

The Jammu and Kashmir Co-operative Societies Act, 1989

The Jammu and Kashmir Co-operative Societies Act, 1989

Corporate1989184 sections

This Act provides the legal framework for the formation, management, and regulation of co-operative societies in the Union territory of Jammu and Kashmir. It applies to all registered co-operative entities, including banks, federations, and primary societies, ensuring they operate according to established rules and bye-laws. By governing these organizations, the law aims to promote their economic and social welfare, protect the interests of members and creditors, and maintain orderly financial structures within the region's credit system.

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  1. 1. Short title, extent and commencement.
  2. 2. Definitions.
  3. 3. The Registrar.
  4. 4. Societies which may be registered.
  5. 5. Application for registration of Co-operative Societies.
  6. 6. Registration.
  7. 7. Registration certificate.
  8. 8. Registration with limited or unlimited liability.
  9. 8A. Conversion
  10. 9. Amendment of the bye-laws of Co-operative Society
  11. 10. Power to direct amendment of bye-laws.
  12. 11. Change of name of Co-operative Society
  13. 12. When amendment of bye-laws comes into force.
  14. 13. Change of liability.
  15. 14. Amalgamation, transfer of assets and liabilities and division of Cooperative Societies.
  16. 15. Cancellation of registration certificate of Co-operative Societies in certain cases.
  17. 16. Re-organisation of Societies.
  18. 17. Persons who may become members.
  19. 18. Nominal or associate members.
  20. 19. Member not to exercise rights till due payment made.
  21. 20. Votes for members.
  22. 21. Manner of exercising vote.
  23. 22. Restrictions on holding of shares.
  24. 23. Restriction on transfer of shares or interest.
  25. 24. Transfer of interest on death of member.
  26. 25. Liability of a past member and estate of deceased member.
  27. 26. Final authority in a Co-operative Society.
  28. 27. Annual general meeting.
  29. 28. Special general meeting.
  30. 29. Election and nomination of members of Committees.
  31. 29A. Bar to election, nomination and continuance as member of Committees.
  32. 29B. Qualification for membership of the Committees
  33. 30. Supersession/removal of Committee.
  34. 30A. Transitional provision.
  35. 30B. Transitory provision for revival of certain Cooperative Banks.
  36. 31. Securing possession of records.
  37. 32. Acts of Co-operative Societies not to invalidate by certain defects.
  38. 32A. Autonomy in all financial and internal administrative matters.
  39. 33. Co-operative Societies to be bodies corporate.
  40. 34. First charge of Co-operative Society on certain assets.
  41. 35. Declaration for creating charge.
  42. 36. Charge and set off in respect of shares or interest of members in the capital or a Co-operative Society.
  43. 37. Shares or interest not liable to attachment.
  44. 38. Register of members.
  45. 39. Proof of entries in Co-operative societys books.
  46. 40. Exemption from compulsory registration of instruments.
  47. 41. Exemption from certain taxes, fee and duties.
  48. 42. Deduction from salary to meet societys claim in certain cases.
  49. 43. Direct partnership of Government in Co-operative Societies
  50. 44. Indirect partnership of Government in Co-operative Societies.
  51. 45. Principal Government Partnership Fund.
  52. 46. Subsidiary Government Partnership Fund.
  53. 47. Approval of Government of purchase of shares
  54. 48. Liability to be limited in respect of certain shares.
  55. 49. Restriction on amount of dividend.
  56. 50. Indemnity of apex and central societies
  57. 51. Disposal of share capital and dividend etc.
  58. 52. Disposal of Principal Government Partnership Fund and Subsidiary Government Partnership Fund on winding up of an apex or a central society.
  59. 53. Principal Government Partnership Fund and Subsidiary Partnership Fund not to form part of assets.
  60. 54. Agreement by Government and apex societies subject to the foregoing provisions of this Chapter.
  61. 55. Other forms of Government aid to Co-operative societies.
  62. 56. Provisions of this Chapter to over-ride other laws.
  63. 57. Fund not to be divided.
  64. 58. Procedure for calculation of profits.
  65. 59. Disposal of net profits.
  66. 60. Investment of funds
  67. 61. Restriction on loans.
  68. 62. Instructions on borrowings.
  69. 63. Restriction on other transactions with non-member.
  70. 64. Audit.
  71. 65. Communication of defects in audit to Co-operative society
  72. 66. Inspection of books of a Co-operative society.
  73. 67. Inquiry by Registrar
  74. 68. Costs of inquiry.
  75. 69. Surcharge.
  76. 70. Dispute which may be referred to arbitration.
  77. 71. Recovery of money by Financing Bank.
  78. 72. Reference of disputes to the authorities or arbitration.
  79. 73. Recovery of sums advanced.
  80. 73A. Registrar’s obligations.
  81. 74. Winding up of Co-operative Societies.
  82. 75. Liquidator
  83. 76. Powers of liquidator.
  84. 77. Cancellation of registration of a Co-operative Society.
  85. 78. Definitions.
  86. 79. State and other Agriculture and Rural Development Banks.
  87. 80. Powers of Agriculture and Rural Development Bank to advance loans and to hold lands.
  88. 81. Appointment of Trustee and his powers and functions.
  89. 82. Trustee to be a Corporation sole
  90. 83. Issue of debentures by the Board.
  91. 84. Powers to borrow money by issue of bonds or by way of loan.
  92. 85. Charge of debentures holders on certain properties.
  93. 86. Guarantee by Government of Principal of, and interest on debentures bonds etc
  94. 87. Security for loans
  95. 88. Mode of dealing with applications for loans
  96. 89. Other Guarantees by the Government.
  97. 90. Order granting loan conclusive of certain matters.
  98. 91. Priority of mortgage over certain claims.
  99. 92. Right of Agriculture and Rural Development Bank or of the State Agriculture and Rural Development Bank to purchase mortgaged property
  100. 93. Mortgages executed in favour of Agriculture and Rural Development Bank to stand vested in State Agriculture and Rural Development Bank.
  101. 94. Registration of mortgages in favour of Agriculture and Rural Development Bank.
  102. 95. Restriction or lease and transfer
  103. 96. Recovery of loans by Agriculture and Rural Development Bank.
  104. 97. Power of Agriculture and Rural Development Bank to receive money and grant discharges.
  105. 98. Right of Agriculture and Rural Development Bank to pay prior debts of Mortgagor.
  106. 99. Distraint when to be made.
  107. 100. Power of sale when to be exercised.
  108. 101. Power of Agriculture and Rural Development Bank where mortgaged property is destroyed or security becomes insufficient.
  109. 102. Power of Board or of Trustee to distrain and sell property etc.
  110. 103. Title of purchaser not to be questioned on the ground of irregularity etc.
  111. 104. Mortgage not to be questioned on insolvency of mortgagor.
  112. 105. Appointment of Receiver and his powers.
  113. 106. Mortgager’s powers to lease.
  114. 107. Registration of documents executed on behalf of an Agriculture and Rural Development Bank or of the State Agriculture and Rural Development Bank.
  115. 108. Delegation of certain power by the Board.
  116. 109. Sections 102, 103 and 104 of the Transfer of Property Act, 1882 to apply to notice under this Chapter.
  117. 110. Power of the Board to make regulations.
  118. 111. Mortgage Bank to be Agricultural Class.
  119. 112. Over-riding effect.
  120. 113. Housing Co-operative Societies.
  121. 114. Definition for purposes of this Chapter
  122. 115. Issue of debentures.
  123. 116. Appointment and powers of trustee.
  124. 117. Vesting property in trustee.
  125. 118. Guarantee by Government of principal of, and interest on debentures.
  126. 119. Guarantee Fund.
  127. 120. Rights of debenture holders.
  128. 121. Raising of loans from Government and funding agencies at National and International levels.
  129. 122. Accepting of deposit.
  130. 123. Distraint when to be made.
  131. 124. Distraint how to be effected.
  132. 125. Sale of property distrained.
  133. 126. Power of sale of mortgage and property when and how to be exercised.
  134. 127. Application for sale and manner of sale.
  135. 128. Application to set aside sale.
  136. 129. Disposal of sale proceeds.
  137. 130. Grant of certificate to purchaser
  138. 131. Delivery of property to purchaser.
  139. 132. Appointment and power of receiver.
  140. 133. Title of purchaser not impeachable for irregularities.
  141. 134. Eviction of defaulter member and tenants etc. and applicability of the Residential and Commercial Tenancy Act, 2012.
  142. 135. Appointment of Sale Officers.
  143. 136. Mortgages executed in favour of Housing Society to stand vested in Housefed.
  144. 137. Requirement when property mortgaged is destroyed or security is rendered insufficient etc.
  145. 138. Power of Board and Trustee to direct distraint sale.
  146. 139. Mortgage not to be questioned in insolvency of mortgagor.
  147. 140. Right of Housing Society to pay prior debts of mortgagor.
  148. 141. Power of Housing Society regarding mortgages transferred to Housefed.
  149. 142. Mortgages executed by Manager of Joint Hindu Family.
  150. 143. Non-applicability of Land Acquisition Act to Lands of Housing Societies
  151. 144. Proof of document or entries in documents.
  152. 145. Application of this Chapter to loans advance by Housing Society from funds not borrowed from Housefed.
  153. 146. Application of provisions of Transfer of Property Act, Samvat 1977 to notices.
  154. 147. Officers of Housing Societies and Sale Officers not to bid at sales.
  155. 148. Delegation of powers of Board.
  156. 149. Board’s power of supervision
  157. 150. Regulation under this Chapter.
  158. 151. Power to make rules.
  159. 152. Enforcement of charges.
  160. 153. Execution of orders etc.
  161. 154. Attachment of property before award or order.
  162. 155. Registrar or person empowered by him to be civil court for certain purposes.
  163. 156. Recovery of sum due to Government.
  164. 157. Constitution of Co-operative Appellate Tribunal.
  165. 158. Constitution of Co-operative Appellate Tribunal.
  166. 159. Limitation for appeal.
  167. 160. Revision.
  168. 161. Review.
  169. 162. Interlocutory orders.
  170. 163. Offences.
  171. 164. Cognizance of offences
  172. 165. Address of a Co-operative Society
  173. 166. Copy of Act, Rules and Bye-laws to open to inspection.
  174. 167. Prohibition against the use of the word “Co-operative”.
  175. 168. Notice necessary in suits.
  176. 169. Travelling and other allowances etc.
  177. 170. Securities etc.
  178. 171. Companies Act not to apply.
  179. 172. Saving of existing societies.
  180. 173. Indemnity.
  181. 174. Power of Civil Court
  182. 175. Bar of Jurisdiction of Courts.
  183. 176. Power to make rules.
  184. 177. Repeal and savings.

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