Vidhi Codex

The Karnataka Co-operative Societies Act, 1959

The Karnataka Co-operative Societies Act, 1959

Corporate1959265 sections

This Act establishes the legal framework for the registration, management, and regulation of co-operative societies across the state of Karnataka. It applies to various types of organizations, including agricultural credit societies, apex societies, and banks, ensuring they operate under standardized rules. The legislation matters because it promotes financial inclusion and rural development by organizing these societies effectively. It also establishes oversight mechanisms, such as audits and board regulations, to protect members' interests and maintain the integrity of the co-operative movement in the state.

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  1. 1. Short title, extent and commencement
  2. 2. Definitions
  3. 2A. Registrar, Additional Registrars, Joint Registrars, Deputy Registrars, State Representatives and Assistant Registrars
  4. 2B. Omitted
  5. 2AA. Director of Co-operative Audit, Additional Director of Co-operative Audit, Joint Directors of Co-operative Audit, Deputy Directors of Co-operative Audit and Assistant Directors of Co-operative Audit
  6. 3. Omitted
  7. 4. Societies which may be registered
  8. 5. Registration with limited or unlimited liability
  9. 6. Application for registration of co-operative societies
  10. 7. Registration
  11. 8. Registration certificate
  12. 9. Co-operative societies to be bodies corporate
  13. 10. Change of name of co-operative society
  14. 11. Change of liability
  15. 11A. Bye-laws
  16. 12. Amendment of bye-laws of a co-operative society
  17. 13. When amendments of bye-laws come into force
  18. 14. Amalgamation, transfer of assets and liabilities and division of co-operative societies
  19. 14A. XXX
  20. 14B. Registrar to prepare scheme for amalgamation of co-operative banks in certain areas
  21. 14C. Liability of co-operative bank to the Deposit Insurance Corporation
  22. 15. Cancellation of registration certificates of co-operative societies in certain cases
  23. 16. Persons who may become members
  24. 17. Disqualification for membership
  25. 18. Nominal or associate members
  26. 18A. Cessation of Membership
  27. 18B. Cessation of directorship
  28. 19. Member not to exercise rights till due payment made
  29. 19A. Access to information
  30. 20. Votes of members
  31. 21. Manner of exercising vote
  32. 22. Omitted
  33. 23. Restrictions on transfers of shares or interest
  34. 23A. Refund of value of share
  35. 24. Transfer of interest on death of member
  36. 25. Liability of past member and estate of deceased member
  37. 26. Final authority in a co-operative society
  38. 26A. Partnership of Co-operative Societies
  39. 26B. Collaboration by Co-operative Societies
  40. 27. Annual General Meeting
  41. 27A. Participation of members in the management
  42. 27B. Returns to be filed with the Registrar
  43. 28. Special general meeting
  44. 28A. Management of co-operative societies vest in the board
  45. 28B. board to arrange for election
  46. 28C. Powers and functions of the board
  47. 28D. Foreign tours by members, directors, office-bearers and employees of a cooperative societies
  48. 29. XXX
  49. 29A. Amendment of section 29A
  50. 29B. Resignation of member of a board or office-bearer of a Co-operative Society
  51. 29C. Disqualification for membership of the board
  52. 29D. Omitted
  53. 29E. Filling up of casual vacancy in the office of members of the board
  54. 29F. Election of President, Chairperson, Vice-President, or Vice-Chairperson, etc.
  55. 29G. Amendment of section 29G
  56. 30. Supersession or suspension of the board
  57. 30A. Omitted
  58. 30B. Powers to give direction in public interest
  59. 31. Amendment of section 31
  60. 31A. Delivery of possession of records and properties of the co-operative societies
  61. 32. First charge of co-operative society on certain assets
  62. 33. Charge on land, owned by members or held as tenants by members borrowing loans from certain co-operative societies
  63. 34. Deduction from salary to meet society’s claim in certain cases
  64. 35. Charge and set off in respect of shares or interest of members in the capital of a co-operative society
  65. 36. Shares or interest not liable to attachment.
  66. 37. Exemption from certain taxes, duties and fees
  67. 38. Exemption from compulsory registration of instruments
  68. 39. Registration of documents executed on behalf of co-operative societies
  69. 39A. Conduct of elections
  70. 39B. Cost of conducting elections
  71. 39C. Corrupt practices
  72. 39D. Maintenance of secrecy of voting
  73. 39E. Officers etc. at election not to act for candidates or to influence voting
  74. 39F. Prohibition of canvassing in or near polling station
  75. 39G. Penalty for disorderly conduct in or near polling station
  76. 39H. Penalty for misconduct at the polling station
  77. 39I. Breaches of official duty in connection with election
  78. 39J. Removal of ballot papers from polling station to be an offence
  79. 39K. Other offences and penalties
  80. 39AA. Co-operative Election Commission
  81. 40. Promotion of co-operative movement
  82. 41. Direct partnership of State Government in co-operative societies
  83. 42. Indirect partnership of State Government in co-operative societies
  84. 43. Principal State Partnership Fund
  85. 44. Subsidiary State Partnership Fund
  86. 45. Approval of State Government for purchase of shares
  87. 46. Liability to be limited in respect of certain shares
  88. 47. Restriction on amount of dividend
  89. 48. Indemnity of apex and central societies
  90. 49. Disposal of share capital and dividend, etc.
  91. 50. Disposal of 'Principal State Partnership Fund' and 'Subsidiary State Partnership Fund' on winding up of an apex or a central society
  92. 51. Principal State Partnership Fund and Subsidiary State Partnership Fund not to form part of assets
  93. 52. Agreement by State Government and apex societies
  94. 53. Other forms of State aid to co-operative societies
  95. 53A. XXX
  96. 54. Control of society assisted
  97. 55. Provisions of this Chapter to override other laws
  98. 56. Mobilisation of funds
  99. 57. Net profits and their disposal
  100. 57A. Cooperative Education and Training
  101. 58. Investment of funds
  102. 59. Restrictions on borrowings
  103. 60. Restrictions on loans
  104. 61. Restrictions on other transactions with non-members.
  105. 62. Provident Fund.
  106. 63. Amendment of section 63
  107. 64. Amendment of section 64
  108. 65. Inspection of books of a co-operative society
  109. 65A. Report of inquiry, inspection and final report to be made available to a credit agency
  110. 65B. Inspection of books of co-operative society by a credit agency
  111. 66. Power to seize books and property
  112. 67. Costs of Inquiry
  113. 68. Order by the Registrar
  114. 69. Surcharge
  115. 70. Disputes which may be referred to Registrar for decision
  116. 70A. Period of limitation
  117. 71. Disposal of disputes
  118. 71A. Powers of financing bank to proceed against members of a co-operative society for the recovery of money due to it from such society
  119. 71B. Powers of credit agency to proceed against members of a co-operative society for the recovery of money due to it from such society
  120. 72. Winding up of co-operative societies
  121. 72A. Winding up of a co-operative bank if so, required by the Reserve Bank
  122. 72B. Reimbursement to the Deposit Insurance Corporation by the Liquidators
  123. 73. Liquidator
  124. 74. Powers of Liquidator
  125. 75. Cancellation of registration of a co-operative society
  126. 76. Definitions
  127. 76A. Application of Chapter to Agriculture and Rural Development Banks
  128. 76B. State and other Agriculture and Rural Development Banks
  129. 77. Appointment of Trustee and his powers and functions
  130. 78. Trustee to be a corporation sole
  131. 79. Issue of debentures
  132. 80. Charge of debenture holders on certain properties
  133. 81. Guarantee by State Government of principal of, and interest on, debentures
  134. 82. Other guarantees by State Government
  135. 82A. Powers of Land Development Banks to advance loans and to hold lands
  136. 82B. Mode of dealing with applications for loans
  137. 82C. Order granting loan conclusive of certain matters
  138. 83. Priority of mortgage over certain claims
  139. 84. Right of Agriculture and Rural Development Bank or of the State Agriculture and Rural Development Bank to purchase mortgaged property
  140. 85. Mortgages executed in favour of Agriculture and Rural Development Bank to stand vested in State Agriculture and Rural Development Bank
  141. 85A. Registration of mortgage or lease in favour of Land Development Banks
  142. 86. Power of Agriculture and Rural Development Bank to receive moneys and grant discharges
  143. 86A. Recovery of Loans by development banks
  144. 87. Right of Agriculture and Rural Development Bank to pay prior debts of mortgagor
  145. 87A. Mortgages executed by managers of joint Hindu families
  146. 87B. Restrictions on lease
  147. 88. Distraint—When to be made
  148. 89. Power of sale when to be exercised.
  149. 89A. Confirmation of sale
  150. 89B. Disposal of sale-proceeds
  151. 89C. Certificate to purchase, delivery of property and title of purchase
  152. 89D. Recovery of loans on certificate by Registrar
  153. 89E. Deputy Commissioner to make recoveries during a certain period
  154. 89F. Officers of banks not to bid at sales
  155. 89G. Section 40 of Bombay Act 28 of 1947 not to apply to alienation in favour of Land Development Banks
  156. 89H. Provision for Guarantee Funds to meet certain losses
  157. 90. Powers of Agriculture and Rural Development Bank where mortgaged property is destroyed or security becomes insufficient
  158. 91. Power of Board or of Trustee to distrain and sell property, etc.
  159. 92. Title of purchaser not to be questioned on the ground of irregularity, etc.
  160. 93. Mortgage not to be questioned on insolvency of mortgagor
  161. 94. Appointment of receiver and his powers
  162. 95. Mortgagor’s powers to lease
  163. 96. Delegation of certain powers by Board
  164. 97. Sections 102, 103 and 104 of the Transfer of Property Act, 1882, to apply to notices under this Chapter
  165. 97A. Constitution of a common cadre for the employees of primary agriculture and rural development banks
  166. 98. Power to Board of State Agriculture and Rural Development Bank to supervise Agriculture and Rural Development Bank and make regulations
  167. 98A. Special provisions for credit structure
  168. 98B. Overriding effect of Chapter XIA
  169. 98C. Approval of bye-laws
  170. 98D. Ensuring membership to Depositors
  171. 98E. Freedom in all financial and internal administrative matters
  172. 98F. Limit on State Government's subscription
  173. 98G. Restriction on number of Government Nominees
  174. 98H. Freedom for affiliation or disaffiliation with a federal society
  175. 98I. Restriction regarding area of operation
  176. 98J. Freedom of investment and deposit
  177. 98K. Freedom of borrowings
  178. 98L. Guidelines for payment of dividend
  179. 98M. Contribution to any fund
  180. 98N. Disqualification of members of the board of Co-operative Credit Structure
  181. 98O. Applicability of Section 20 and Section 29C to the election of a new board
  182. 98P. Section 98P
  183. 98Q. Election stages
  184. 98R. The Prudential norms
  185. 98S. Removal of Directors and Chief Executive Officers
  186. 98T. Omitted
  187. 98U. Audit of accounts
  188. 98V. Special audit of Co-operative Credit Structure
  189. 98W. Restriction for using the word 'Bank'
  190. 98X. Implementation of regulatory prescriptions of Reserve Bank
  191. 98Y. Omitted
  192. 99. Enforcement of charge
  193. 100. Recovery of moneys due to Societies
  194. 101. Execution of orders, etc.
  195. 101A. Transfer of property made after issue of certificate void against co-operative society
  196. 101B. Transfer of property which cannot be sold
  197. 101C. Omitted
  198. 102. Registrar or person empowered by him to be a civil court for certain purposes
  199. 103. Attachment of property before award or order
  200. 104. Recovery of sums due to Government
  201. 104A. Application of this Chapter to Co-operative Societies in other States
  202. 105. Appeals to the Tribunal
  203. 105A. Appeals relating to admission of members to societies
  204. 106. Appeals to other authorities
  205. 107. Revision by Tribunal
  206. 108. Powers of revision of State Government
  207. 108A. No appeal or revision in certain cases
  208. 109. Offences
  209. 110. Offences by Companies
  210. 110A. Power to compound offences
  211. 111. Cognizance of offences
  212. 111A. Omitted
  213. 111B. Preservation of records
  214. 112. Prohibition against the use of the word “Co-operative”
  215. 113. Address of a co-operative society
  216. 114. Copy of Act, rules and bye-laws to be open to inspection
  217. 115. Omitted
  218. 116. Orders to be pronounced
  219. 117. Procedure for settlement of disputes and power of the Registrar or any other person to whom a dispute is referred for decision under section 70
  220. 118. Bar of jurisdiction of courts
  221. 119. Application of Limitation Act
  222. 120. Power to exempt societies from conditions of registration
  223. 121. Power to exempt societies
  224. 122. Register of Members
  225. 123. Proof of entries in co-operative societies, books
  226. 124. Service of notice under the Act
  227. 125. Notice necessary in suits
  228. 126. Acts of co-operative societies not to be invalidated by certain defects
  229. 126A. Omitted
  230. 127. Indemnity
  231. 127A. Office bearers, members and employees of co-operative societies to be public servants
  232. 128. Companies Act, 1956 not to apply
  233. 128A. Constitution of a common cadre
  234. 128B. Duties of police officer
  235. 129. Powers to make rules
  236. 129A. Model bye-laws
  237. 130. Rules and orders to be laid before State Legislature
  238. 131. Repeal and savings
  239. 132. Power to remove difficulties
  240. Amendment History XIX. Amending Act 2 of 2000
  241. Amendment History XX. Amending Act 2 of 2000
  242. Amendment History XXI. Amending Act 13 of 2000
  243. Amendment History XXII. Amending Act 6 of 2001
  244. Amendment History XXIII. Amending Act 24 of 2001
  245. Amendment History XXIV. Amending Act 13 of 2004
  246. Amendment History XXV. Amending Act 6 of 2010
  247. e5. Financing Bank
  248. e6. General Body and General Meeting
  249. f. Member
  250. f1. Multipurpose Cooperative Society and National Bank
  251. f3. Nominee
  252. g. Office-bearer
  253. h. Prescribed
  254. h1. Primary society
  255. h2. Primary Agricultural Credit Co-operative Society
  256. i. Registrar
  257. i1. Reserve Bank
  258. i2. Representative, Representative General Body and Meeting
  259. j. Rules
  260. j1. Scheduled Castes, Scheduled Tribes, Secondary and State Representative
  261. j4. State Agriculture and Rural Development Bank and State Cooperative Bank
  262. j6. State Level Cooperative Society
  263. k. Tribunal
  264. l. References to enactments
  265. Schedule. Amendment History (Excerpts)

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