Amendment History (Excerpts)

XIII. Amending Act 16 of 1979.—In December 1968, Government constituted a Committee with the Deputy Minister for Co-operation as the Chairman and non-official Presidents of some major co-operative institutions and officers of Government as members to consider the various amendments to the Mysore Co-operative Societies Act, in the light of the policies and programmes of Government and also the experience gained by the Department of Co-operation in implementing the various provisions of the existing Act. The Committee after a detailed consideration of the working of the various classes of cooperative societies submitted its recommendations suggesting certain amendments to the Act. It is considered necessary to amend the Act as recommended by the Committee subject to certain modifications. Hence this Bill. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 16th March 1970 as No. 94 at page. 58.)

XIV. Amending Act 3 of 1980.—Under the existing provisions of the Karnataka Co-operative Societies Act, 1959, the Registrar of Co-operative Societies is empowered to get the accounts of the Co-operative Societies audited by a person authorized by him. In order to ensure that the accounts of the Co-operative Societies are audited by independent persons, the State Government has created a separate audit wing with the Chief Auditor as the head thereof. This wing has been functioning effectively since more than two years. In order to give the Chief Auditor and officers sub-ordinate to him statutory recognition it was considered necessary to amend the Co-operative Societies Act 1959 suitably. As the matter was very urgent, the Karnataka Co-operative Societies (Amendment) Ordinance 1979 (Karnataka Ordinance No. 20 of 1979) was issued. Hence this Bill to replace the said Ordinance. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 27th February 1980 as No. 139 at page 6.)

XV. Amending Act 4 of 1980.—Section 14A of Karnataka Co-operative Societies Act was first introduced by an amendment to Karnataka Co-operative Societies Act through Karnataka Co-operative Societies Amendment Act 1975. Sub-section (1) of Section 14-A contained a proviso providing for the previous sanction in writing of the Reserve Bank of India in the case of amalgamation, division, Re-organization of Co-operative Banks. This proviso was retained when further amendment were carried out by Karnataka Act 19 of 1976. When the Karnataka Act 70 of 1976 was published carrying out further amendments to the Co-operative Societies Act it is found that this proviso to sub-section (1) of Section 14-A is not found in the Karnataka Act 70 of 1976. In this amendment the sub-section (1) of Section 14-A was substituted by new provision and the proviso was left out. Hence an amendment to Section 14-A is necessary for incorporating then proviso which was left out while further amendments were made in Karnataka Act 70 of 1976. Hence this Bill. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 29th February, as No. 151 at page. 3.)

XVI. Amending Act 5 of 1984.—The Karnataka Co-operative Societies Act, 1959 has revealed in the course of working the need for some amendments on the lines of the recommendations made by K. H. Patil Committee for speedy implementation. It has become necessary to amend the provisions relating to audit, so that Government could constitute an audit board for audit of accounts of Milk Co-operative Unions and Milk Co-operative Federations in the State. It has also become necessary to amend the chapter relating to the “Land Development Bank” so that the bank could take up expeditiously developmental activities for which funds could be made available on the basis of hypothecation of moveable property. The penalties under the Act have been enhanced by way of fine, imprisonment to create a deterrant impact on the persons committing offences under the Act. Hence the Bill. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 24th February 1984 as No. 139 at page 16.)

XVII. Amending Act 34 of 1985.—It is considered necessary to amend the Karnataka Co-operative Societies Act, 1959 for speedy recovery of large amounts due from the members of various Co-operative Institutions in the State of Karnataka. The Amendment proposed enables the State Government to purchase the defaulters’ properties by Government bidding in the public auction and to dispose of such properties in such manner as Government deems fit. 2. As the matter was very urgent, and the Legislative Assembly was not in session, the Karnataka Co-operative Societies (Amendment) Ordinance, 1985 (Karnataka Ordinance No. 15 of 1985) was issued. This Bill seeks to replace the said ordinance. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 29th July 1985 as No. 405 at page 3.)

XVIII. Amending Act 34 of 1991.—It is considered necessary to omit section 101-C, since other provisions relating to recovery of Co-operative dues are found to be adequate and the purchase of immovable property by the State Government in the auctions has caused un-necessary anxiety and hardship to the farmers. Hence the Bill. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 30th September 1991 as No. 622 at page 254.)

XIX. Amending Act 25 of 1998.—Keeping in view the recommendations made by the Committee headed by Sri K. H. Patil and two other Committees and also various suggestions made by prominent co-operators and officers of the Co-operative Department, It was considered necessary to amend the Karnataka Co-operative Societies Act 1959,— (i) to define primary societies, secondary societies, federal societies and apex societies; (ii) to prohibit members of the same family from applying for registration of a co-operative society; (iii) to provide deemed registration of co-operative, society and amendment of byelaws within a period of three months from the date of receipt of the proposal; (iv) to provide for cessation of membership of a person who fails to fulfill his obligations as a member under the Act, Rules and Byelaws for a continuous period of three years; (v) to remove the powers of the Registrar to direct amalgamation, division, and re-organization of co-operative societies; (vi) to prohibit a member who is a defaulter from exercising his right to vote at a meeting of the co-operative society (vii) to remove the restrictions on holding of shares by the members of co-operative societies; (viii) to substitute section 27 to have more comprehensive provision in respect of conducting annual general meeting; (ix) to require a Committee to make arrangements for election of membership of next Committee and also to provide for consequences of default in making such arrangements; (x) to provide for nomination of only three persons in the Committee of assisted societies; (xi) to remove the powers of Government under section 30A and 30B for appointment of special officer; (xii) to do away with the Government nomination of one third of the total strength of the Committee under section 53A; (xiii) to prohibit such nominated members from contesting in the election of President, Vice-President and other office bearers of the Committee; (xiv) to provide office bearers to continue even after two terms; (xv) to make detailed provisions regarding election of President, Vice-President and other office bearers and also filling up of casual vacancy in the office of the members of the Committee; (xvi) to provide for appointment of Chief Executive of the Co-operative Society and also to specify his powers and functions; (xvii) to provide for appointment of Special Officer in case a society is not functioning on account of the number of members of the Committee falling short of the required number of quorum; (xviii) to incorporate a new Chapter VA and sections 39A to 39K to have comprehensive provisions relating to election of the members of the Committee; (xix) to remove the powers of the Government under section 121 by deleting the provision; (xx) to take power to notify model byelaws. Certain consequential amendments are also made. Hence the Bill. (Obtained from file DPAL16 LGN 97.)

XX. Amending Act 2 of 2000.— Keeping in view the recommendations made by the various Committees and the suggestions made by leading co-operators, it is considered necessary to amend the Karnataka Co-operative Societies Act, 1959, (i) to make co-operative institutions economically sound in the interest of society and its members; (ii) to bar Industrial Tribunals from entertaining disputes of the nature of industrial disputes arising under the Co-operative Societies Act, in order to avoid multiplicity of forums, and for certain other purposes. Hence the Bill. (Obtained from L.A. Bill No. 20 of 1997.)

XXI. Amending Act 13 of 2000.— Several amendments were made to the Karnataka Co-operative Societies Act, 1959 by the Karnataka Co-operative Societies (Amendment) Act, 1997 including the amendments,- (i) to deprive a nominated member's right to vote in the election of office bearers and President, Chairperson, Vice President and Vice Chairperson of the Co-operative Society; (ii) to omit section 30B which provides for power to give direction in public interest;