Chapter VII CO-OPERATIVE FARMS

Any ten or more persons of a village or two or more contiguous villages holding between them, either as land-owners or tenants, rights in and possession over fifty acres or more in such village or contiguous villages and desiring to start a Co-operative Farm comprising the land so held and possessed by them may apply in writing in the prescribed form to the Registrar of Co-operative Societies in Karnataka (hereinafter referred to as the Registrar) for the registration thereof.

Explanation.—More than one Co-operative Farm may be registered in any village under this Chapter.

An application for the registration of a Co-operative Farm shall be accompanied by extracts from the record of rights or other records showing the total area with the survey numbers of all the fields held by each of the applicants in the village or contiguous villages and shall contain such other particulars as may be prescribed.

(1) After making such enquiry as may be prescribed, the Registrar shall, unless he is satisfied that it is not in the best interests of all concerned to do so, register the Co-operative Farm under the Karnataka Co-operative Societies Act, 1959, and grant a certificate of registration. (2) The Registrar shall cause a copy of the certificate to be forwarded to the Deputy Commissioner for such action as may be prescribed.

(1) When a Co-operative Farm has been registered as provided in section 91, the possession of all lands in the village or contiguous villages held by a member, in respect of which the Co-operative Farm is registered shall, for so long as the registration of the Co-operative Farm is not cancelled, stand transferred to the Co-operative Farm, which shall thereupon hold such land and may use it for agricultural purposes. (2) If any person is admitted as a member of a Co-operative Farm after its registration, the possession of the lands held by and in the possession of such member in respect of which he becomes a member, shall stand transferred to the Co-operative Farm. (3) No member of a Co-operative Farm shall withdraw his membership unless he satisfies such conditions as may be prescribed. (4) On the withdrawal of membership of a Co-operative Farm by any person, the possession of the lands in respect of which he had become a member shall, subject to such restrictions and conditions as may be prescribed, be transferred by the Co-operative Farm to such person.

When a certificate of registration in respect of any Co-operative Farm has been granted as provided in section 91, the provisions of the Karnataka Co-operative Societies Act, 1959, and the rules made thereunder shall, so far as they are not inconsistent with the provisions of this Act or of the rules made thereunder, be applicable thereto.

Every application under section 90 shall be accompanied by a copy of the proposed bye-laws of the Co-operative Farm and such bye-laws shall be deemed to be the bye-laws required to be filed under the provisions of the Karnataka Co-operative Societies Act, 1959.

The Registrar may, at any time on an application made by a majority of the members of a Co-operative Farm, or on his own motion after giving notice to the Farm in such manner as may be prescribed, and after giving an opportunity to the Farm to be heard amend the bye-laws.

Nothing in this Chapter shall be deemed to cause the right of ownership of a land-owner in the land contributed by or on his behalf to a Co-operative Farm to cease to vest in him.

Every member of a Co-operative Farm shall be entitled to such rights and privileges, be subject to such obligations and liabilities, and be bound to discharge such duties as may be prescribed.

Subject to such exceptions as may be prescribed, every member shall be bound to contribute to the Co-operative Farm to the extent and in the manner prescribed,— (i) funds, (ii) personal labour, (iii) agricultural implements, agricultural stock, and such other articles as may be prescribed.

A Co-operative Farm shall, as from the date on which it is constituted, or the date on which a new member is admitted, be liable for the payment of all the land revenue, cesses, water rate, betterment contribution and local rates, payable by the land-owner in respect of the land, the possession of which is transferred to it under section 92.

Any person, who is a resident of the village or contiguous villages in which a Co-operative Farm is situate may be admitted as a member thereof upon such terms and conditions as may be prescribed.

When a member whose land is held by a Co-operative Farm dies, his heirs shall be deemed to have become members of the Co-operative Farm.

(1) A Co-operative Farm shall be entitled to such concessions and facilities as may be prescribed. (2) Without prejudice to the generality of the foregoing provision, the prescribed concessions and facilities may include,— (a) reduction of land revenue; (b) reduction of or exemption from agricultural income tax; (c) free technical advice from experts employed by the Government; (d) financial aid and grant of subsidies and loans with or without interest; and (e) priority in irrigation from State irrigation works. (3) For purposes of this section, Co-operative Farm shall be deemed to include a co-operative society registered before the appointed day under the law relating to registration of co-operative societies, as a co-operative farming society.