Chapter XIV MISCELLANEOUS

1. (1) Unless otherwise provided by this Act, all sums due from a society or from an officer or member and a past member or deceased member of a society as such to the Government, may be recovered according to the law and under the rules for the time in force or the recovery of arrears of land revenue.
2. (2) Sums due from a society to the Government and recoverable under the foregoing sub-section may be recovered, firstly from the property of the society, secondly in the case of a society of which the liability of the members is limited, from the members or past members or the estate of deceased members subject to the limit of their liability, and, thirdly, in the case of societies with unlimited liability, from the members or past members or estate of deceased members.
3. (3) The liability of past members or estate of deceased members shall in all cases be subject to the provisions of section 33.

1. (1) The Registrar or any officer subordinate to him and empowered by him in this behalf or an officer of such society as may be notified by the State Government, who is empowered by the Registrar in this behalf may, subject to such rules as may be made by the State Government, but without prejudice, to any other mode of recovery provided by or under this Act, recover—
   • (a) any amount due under a decree or order of a Civil Court obtained by a society;
   • (b) any amount due under a decision, award or order of the Registrar, Co-operative Court or Liquidator or Co-operative Appellate Court;
   • (c) any sum awarded by way of costs under this Act;
   • (d) any sum ordered to be paid under this Act as a contribution to the assets of the Society;
   • (e) any amount due under a certificate granted by the Registrar under sub-section (1) or
2. (2) of section 101 or under subsection (1) of section 137; together with interest, if any, due on such amount or sum and the costs of process according to the scales of fees laid down by the Registrar from time to time, by the attachment and sale or by sale without attachment of the property of the person against whom such decree, decision, award or order has been obtained or passed.
3. (2) The Registrar or the officer empowered by him shall be deemed, when exercising the powers under the foregoing sub-section, or when passing any orders on any application made to him for such recovery, to be Civil Court for the purposes of Article 136 in the Schedule to the

Power to exempt societies from provisions of Act.— The State Government may, by general or special order, exempt any society or class of societies from any of the provisions of this Act, or of the rules made there under, or may direct that such provisions shall apply to such society or class of societies with such modifications not affecting the substance thereof as may be specified in the order. Provided that, no order to the prejudice of any society shall be passed without an opportunity being given to such society to represent its case

The State Government may, by notification in the Official Gazette, and subject to such conditions (if any) as it may think fit to impose, delegate all or any of the powers of the Registrar under this Act to any federal authority or to an officer thereof or any other authority or to any officer of the Zilla Parishad constituted under the Maharashtra Zilla Parishads and Panchayat Samitis Act, 1961 and such authorities and officer of the Zilla Parishad shall work under the general guidance, superintendence and control of the Registrar specified in the notification.

1. (1) No society shall open a branch or a place of business outside the State of Maharashtra, and no co-operative society registered under any law in any other State shall open a branch or a place of business in the State of Maharashtra, without the permission of the Registrar.
2. (2) Every co-operative society registered under any law in any other State, and permitted to open a branch or a place of business in the Maharashtra State under the foregoing sub-section, or which has a branch or a place of business in the Maharashtra State at the commencement of this Act, shall, within three months from the opening of such branch or place of business or from the commencement of this Act, as the case may be, file with the Registrar a certified copy of the bye-laws and amendments and, if these are not written in English language, a certified translation thereof in English or Hindi, and shall submit to the Registrar such returns and information as are submitted by similar societies registered under this Act in addition to those which may be submitted to the Registrar of the State where such society is registered.

1. (1) On the election of a new Committee and its Chairman, the retiring Chairman, in whose place the new Chairman is elected, shall hand over charge of the office of the Committee and all papers and property, if any, of the society in possession of the committee or any officer thereof, to the new Chairman of the Committee.
2. (2) If the retiring Chairman fails or refuses to hand over charge, or to hand over the papers and property of the society as aforesaid, the Registrar, or any person empowered by him in this behalf, may by order in writing direct him to forthwith hand over such charge and property.
3. (3) If the retiring Chairman to whom direction has been issued as aforesaid, does not comply with such direction, he shall on conviction be punished with simple imprisonment which may extend to one month or with fine which may extend to five hundred rupees or with both; and the Registrar may, on the retiring Chairman’s failure to comply with such direction, take order for seizing the records and property and handing it over to the new Chairman, in the manner provided in section 80.

Notwithstanding anything contained in this Act or the rules or by-laws made there under, a member of the State Legislature or of a committee under the Hyderabad District Municipalities Act, 1956, or a member of a Zilla Parishad or Panchayat Samiti under the Maharashtra Zilla Parishad and Panchayat Samitis Act 1961, while holding the office of chairman or members of the Committee of a society to which appointment is made by the State Government, or the office of liquidator or the office of nominee of the Registrar whether appointed individually or to aboard of nominees, shall not be entitled to receive any remuneration other than traveling allowance, the daily allowance or such other allowance which is paid to the holder of any such office for the purpose of meeting the personal expenditure incurred in attending the meeting of the committee or body, or in performing any other functions as the holder of such office.

Subject to the provisions of section 160A, no member of the committee of any society shall be entitled to receive from the society the traveling allowance, the daily allowance or such other allowances of fees which are paid to the members for attending meetings of its committee, or for performing any other functions as such members, at a rate higher than the maximum rate prescribed in this behalf and different maximum rates may be prescribed for different societies or class of societies or for different purposes.

The Registrar, a person exercising the powers of the Registrar, an officer as defined in clause

1. (20) of section 2, or a person appointed as an Official Assignee under sub-section (2) of section 21 A, or as an Administrator under section 77A or 78, or a person authorised to seize books, records or funds of a society under sub-section (3) of section 80, or to audit the accounts of a society under section 81 or to hold an inquiry under section 83, or to make an inspection under section 84, or 89A or to make an order under section 88, or a person appointed as a member constituting a Cooperative Court under section 91A or the Co- operative Appellate Court under section 149 or a Liquidator under section 103, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

No suit, prosecution or other legal proceedings shall lie against the Registrar or any person subordinate to him or acting on his authority, in respect of anything in good faith done, or purported to be done by him by or under this Act.

1. (1) Save as expressly provided in this Act, no Civil or Revenue Court shall have any jurisdiction in respect of—
   • (a) the registration of a society or its by-laws, or the amendments of its by-laws, or the dissolution of the committee of a society, or the management of the society on dissolution thereof; or
   • (b) any dispute required to be referred to the Co-operative Court, for decision;
   • (c) Any matter concerned with the winding up and dissolution of a society.
2. (2) While a society is being wound up, no suit or other legal proceeding relating to the business of such society shall be proceeded with or instituted against the society or any member thereof, or any matter touching the affairs of the society, except by leave of the Registrar, and subject to such terms as he may impose.
3. (3) All orders, decisions or awards passed in accordance with this Act or the rules shall, subject to the provisions for appeal or revision in this Act be final; and no such order, decision or award shall be liable to be challenged, set aside, modified, revised or declared void in any

Notice necessary in suits.— No suit shall be instituted against a society, or any of its officers, in respect of any act touching the business of the society, until the expiration of two months next after notice in writing has been delivered to the Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left.

1. (1) The State Government may, for the whole or any part of the State and for any society or class of societies, make rules for the conduct and regulation of the business of such society or class of societies, and for carrying out the purposes of this Act.
2. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may-
   • (i) subject to the provisions of section, prescribe the designation of officers who shall exercise powers vested in the Registrar;
   • (ii) Prescribe the forms to be used and the conditions to be complied with in the making of applications for the registration of a society under section 8 and the procedure in the matter of such application;
   • (iii) Prescribe the matters in respect of which a society may make, or the Registrar may direct a society to make, bye-laws and the procedure to be followed in making, altering and abrogating by-laws and the conditions to be satisfied prior to such making, alteration or abrogation;
   • (iv) Prescribe the procedure to be followed and conditions to be observed for change of name or liability, amalgamation, transfer, division, conversion, or reconstruction of society;
   • (v) Prescribe the form of and procedure for an application under section 19 and the procedure for reconstruction of a society under that section; (v-a) Prescribe the conditions subject to which the Official Assignee shall realize the assets and liquidate the liabilities, under section 21-A(3); (v-b) Prescribe the manner of giving public notice and die remuneration and allowances to be paid to the Official Assignee, under section 21-A(1) and 21-A(4); (v-c) Prescribe the form of application, under section 23-(1A); (v-d) Prescribe the manner for entering into collaboration by any society or societies with any Government undertaking or any undertaking approved by Government for carrying on any business.
   • (vi) Prescribe the conditions to be complied with by a person applying for admission or admitted as a member and provide for the election and admission of members and the payment to be made and the interests to be acquired before the exercise of the right of membership.
   • (vii) Prescribe in the case of a federal society or class of federal societies the proportion of individual members to society members in such society or class of societies and the proportion of individual members to society members in the committee of such society or class of societies;
   • (viii) Subject to the provision of section 28, prescribe the maximum number of shares or portion of the capital of a society which may be held by a member;
   • (ix) Prescribe the procedure for the admission of joint members, members of a joint Hindu undivided family, and minors and persons of unsound mind inheriting the share or interest of deceased members and provide for their rights and liabilities;
   • (x) Provide for the withdrawal, removal or expulsion of members and for the payments to them and for the liabilities of past members and the estate of deceased members;
   • (xi) Prescribe the conditions and procedure for the transfer of share or interest;
   • (xii) Provide for the nomination of a person to whom the share or the interest of a deceased member may be paid or transferred;
   • (xiii) Provide for ascertaining the value of a share or interest of a past member or deceased member;
   • (xiv) Prescribe the payments to be made and the conditions to be complied with by members applying for loans, the period for which loans may be made, and the amount which may be lent to an individual member;
   • (xv) Provide for the inspection of documents in the Registrars office and the levy of fee for granting certified copies of the same;
   • (xvi) Provide for the procedure for registering the address of a society and the change of its address;
   • (xvii) Provide for the formation and maintenance of a register of members, and where the liability of members is limited by shares, or register of shares and a list of members; (xviii) Provide for securing that the share capital of any society shall be variable in such a way as may be necessary to secure that the share shall not appreciate in value and that necessary capital shall be available for the society as required;
   • (xix) Provide for the procedure to be adopted by a society with limited liability in order to reduce its share capital;
   • (xx) Prescribe the period for and terms upon which Government aid may be given to societies and terms under which the State Government may subscribe to the share capital of and guarantee the payment of the principal of and interest on debentures issued by societies;
   • (xxi) Regulate the manner in which funds may be raised by a society or class of societies by means of shares or debentures or otherwise and the quantum of funds so raised;
   • (xxii) Prescribe the limits for loans to be granted by a society or class of societies against different class of securities or without security and the procedure for granting loans;

(xxiii) Prescribe the manner of recalling a loan;

1. (xxiv) Prescribe the limits for granting credit by a non-credit society or a class of non-credit societies;
2. (xxv) Prescribe the prohibitions and restrictions subject to which societies may trade or transact business with persons who are not members;
3. (xxvi) Prescribe the conditions on which any charge in favour of a society shall be satisfied and the extent to which and the order in which property to the charge shall be used in its satisfaction;

1. (xxix) The manner in which a society shall construct its annual financial statements and the

other purposes for which a society may appropriate its net profits, under section 65;

1. (xxx) Provide for the formation and maintenance of reserve fund, and the objects to which such fund may be applied and for the investment and use of any fund including reserve fund under the control of a society;
2. (xxxi) Prescribe the conditions under which profits may be distributed as dividend and bonus among the members and non-members of a society; (xxxii) Prescribe the rate at which a society shall contribute towards the education fund of the State federal society under section 68 (xxxii-a) Prescribe the rate or rates at which, au-d the manner in which, the societies (including other corporate bodies) shall contribute towards the Co-operative State Cadre Employment Fund under section 69A; (xxxiii) Define the co-operative purpose for which a society shall, under section 69, utilise its fund; (xxxiv) Prescribe the mode of investment of funds of a society under section 70 and the proportion of investment in any security or class of securities;
3. (xxxv) Provide for the payment of contribution to any provident fund which may be established by a society for the benefit of officers and servants employed by it and for the administration of such provident fund; (xxxv-a)Prescribe the procedure for the election to notified societies, Under section 73-lC(1); (xxxv-b)Prescribe the manner of recovery of the expenses of holding elections to notified Societies by the Registrar, under sub-section 73-lC(2); (xxxv-c)Prescribe the requisition form and the manner in which the motion of no-confidence Can be brought under section 73-ID; (xxxv-d)Prescribe the manner to fill in the seat reserved for the employees by selection, or by Election by employees under section 73-BB (1); (xxxv-e)Prescribe the body of persons for selection of persons on a panel for appointment, Under section 74(2), (xxxvi) Prescribe the procedure and conditions for the exercise by a federal society of the powers conferred by this Act; (xxxvii) Provide for general meetings of the members, for the procedure at such meetings and the powers to be exercised by such meetings; (xxxviii) Prescribe the conditions in which a member of a society may be disqualified from voting;

(xxxix) Provide for the removal and appointment of the committee or its members and other officers and for the appointment of administrator under section 78 and prescribe procedure at meeting of the committee and for the powers to be exercised and the duties to be performed by the committee, administrator and other officers;

1. (xl) Prescribe qualifications for members of the committee and employees of a society or class of societies duties to be performed by, and several and joint liabilities therefore, of such members and the conditions of service subject to which person may be employed by societies; (xl-a) Prescribe the amount and nature of the security to be furnished by any officers or employees of any society or class of societies, who are required to handle cash, securities or property belonging to the society, the maximum amount of cash which may be handled or kept at a time by any officer or employee, and the amount, in excess of which, all payments shall be made by or on behalf of the society by means of a Cheque.
2. (xli) Prescribe the returns to be submitted by a society to the Registrar and provide for the person by whom and the form in which such returns shall be submitted;
3. (xlii) Provide for the persons by whom and the form in which copies of documents and entries in books of societies may be certified and the charges to be levied for the supply of copies thereof; (xliii) Provide for the procedure to be adopted by the Registrar in the cases where the taking of possession of books, documents, securities, cash and other properties of a society or of a society the affairs of which have been ordered to be wound up, by the Registrar or by a person entitled to the same is resisted or obstructed;
4. (xliv) Provide for the procedure to be adopted for taking possession of books, documents, securities, cash and other property of a society by a person acting under sections 81, 83 and 84 in cases where misappropriation of funds, breach of trust or fraud has been committed or where it is suspected or apprehended that the books, documents, securities, cash and other properties are likely o be tampered with or destroyed or removed.
5. (xlv) Prescribe the accounts and books to be kept by a society or class of societies;
6. (xlvi) Prescribe the procedure for conduction an audit, the matters on which the auditor shall submit a report, the form in which the statement of accounts shall be prepared for his audit, the limits within which the auditor may examine the monetary transactions of society, the form of audit memorandum and report and the charges, if any, to be paid by a society for audit;

(xlvii) Prescribe the procedure for appointment of auditors under section 81;

(xlviii) Prescribe the form for the rectification of defects discovered in the course of audit, inspection or inquiry;

1. (xlix) Prescribe the procedure and principles for the conduct of inquiry under section 83 and inspection under section 84;
2. (l) Prescribe the procedure for apportioning the cost of inquiry and inspection and for assessing damages against delinquent promoters under section 88 and for recovery of cost and damages;
3. (li) Prescribe the manner in which appointment shall be made and control exercised by, and the number of persons comprising, and functions to be performed by, the authority constituted under section 90, the manner of election and nomination of such persons, the fees to be paid to such authority and the manner of such payment and the procedure for and the method of calculating any cost, charges or expenses required to be levied under this Act or the rules;
4. (lii) Prescribe the qualifications of the members constituting the Co-operative Courts, provide for the terms and conditions of their appointment, prescribe the procedure to be followed in proceedings, before the Co-operative Courts for fixing, levying and collecting appropriate fees and expenses for determining the disputes (including expenses incurred by the parties to the proceedings), having regard to the services rendered or to be rendered or any expenditure incurred or likely to be incurred for the machinery set up therefore, provide for delegation of the power of fixing the scale of any such fees and expenses to the Registrar, (and all such fees and expenses being applicable to any disputes and other proceedings which may be pending immediately before the commencement of the Maharashtra Co-operative Societies (Third Amendment) Act, 1973, or which may be referred to or instituted thereafter), provide for the mode of payment of these fees and expenses whether in the form of court-fee stamps, in cash or in any other manner; and provide, for enforcing the decisions, awards or orders in such proceedings;
5. (liii) Prescribe the form in which a dispute shall be referred to the Court;
6. (liv) Provide for, the issue and service of processes and for providing of service thereof;
7. (lv) Provide for the investigation of claims and objections that may be preferred against any attachment effected under section 95;
8. (lvi) Prescribe the procedure for and the method of recovery of any sums due under this Act or the rules;
9. (lvii) Prescribe the procedure to be followed for the custody of property attached under section 95 ; (lviii) Prescribe the procedure to be followed in the execution of awards;
10. (lix) Prescribe die manner in which any property shall be delivered to, and the terms and conditions subject to which such property shall be held by a society under section 100;
11. (lx) Prescribe the procedure for attachment and sale of property for the realisation of any security given by a person in the course of execution proceedings;
12. (lxi) Prescribe the procedure and conditions for the exercise of the powers conferred under section 105 and the procedure to be followed by a Liquidator and provide for the disposal of surplus assets;
13. (lxii) Prescribe the matters in which an appeal shall lie from the order of Liquidator appointed under section 103; (lxiii) Prescribe the procedure and conditions for the issue, redemption, re-issue, transfer, replacement or conversion of debentures issued by a society to which Chapter XI is applicable;
14. (lxiv) Prescribe the maximum amount of principal, the rate of interest and other conditions for the guarantee of debentures issued by a society to which Chapter XI is applicable.
15. (lxv) Prescribe the qualifications and methods of appointment of an officer to effect sale under section 133 and the powers and functions which such an officer may exercise;
16. (lxvi) Prescribe for the appointment of a receiver of the produce and income of the mortgaged property for sale under section 133, the conditions in which he may be appointed or removed, the powers and functions which he may exercise and the expenses of management and remuneration which he may receive. (lxvii) Prescribe the circumstances in which action may be taken by an Agricultural and Rural Development Bank against a mortgagor under section 133(2):

(lxviii) Prescribe, in the case of sale of immovable property under Chapter XI-

1. (a) the procedure for proclamation and conduct of the sale and the conditions which an attempt of sale may be abandoned;
2. (b) the method of calculating the expenses incidental to the sale or attempted sale;
3. (c) the procedure for the receipt of deposit and disposal of the proceeds of sale;
4. (d) the procedure for a resale if an attempted sale is abandoned or the purchase money is not deposited within the prescribed time and the penalty to be levied against the purchaser who fails so to deposit the purchase money;
5. (e) The form and method of disposal of money by an Agricultural and Rural Development Bank under section. 135.
6. (f) the form of sale certificate under section 136;
7. (g) the procedure for the delivery by the court of the property purchased to the purchaser under section 136;
8. (h) the form of the notice referred to in section 143; and
   • (i) the fee payable for the service of such notices and the manner of serving such notices on, and of the transmitting landlords fee to, the landlord named in such notices;
9. (lxix) prescribe the time within which and the procedure according to which property purchased by an Agriculture and Rural Development Bank at a sale of immovable property under Chapter XI shall be disposed by the bank;
10. (lxx) Prescribe the procedure to be followed in presenting and disposing of appeals;
11. (lxxi) prescribe the qualifications and the period of office of members of the Co-operative Appellate Court;

(lxxii) prescribe hi the case of appeals lying to the State Government the authority to which power of hearing appeal may be delegated; (lxxiii) prescribe the method of communicating or publishing any order, decision or award required to be communicated or published under this Act or the rules;

(lxxiv) provide that the contravention of any of the rules shall be an offence under the Act;

1. (lxxv) Provide for all other matters expressly required or allowed by this Act, to be prescribed by rules.

1. (3) The power to make rules conferred by this section is subject to the condition of the rules being made after previous publication.
2. (4) All rules made under this section shall be laid for not less than thirty days before each House of the State Legislature as soon as possible after they are made, and shall be subject to such modification as the Legislature may make during the session in which they are so laid, or the session immediately following.

1. (1) The Bombay Cooperative Societies Act, 1925, in its application to the State of Maharashtra is hereby repealed : Provided that, the repeal shall not affect the previous operation of the Act so repealed and anything done or action taken or deemed to have been done or taken (including any appointment or delegation made, application or other document filed, certificate of registration granted, agreements executed, notification, order, direction or notice issued, regulation, form or bye-law framed, rule made or deemed to be made or proceedings instituted before any Registrar, arbitrator, liquidator or tribunal or other officer, authority or person) by or under the provisions of that Act shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act, and shall continue in force unless and until superseded by anything done or any action taken under this Act,
2. (2) Accordingly, all societies registered or deemed to be registered under the Act repealed the registration of which is in force at the commencement of his Act, shall on such commencement be deemed to be registered under this Act; and all proceedings pending immediately before such commencement before any Registrar, arbitrator, liquidator or tribunal or other officer, authority or person under the provisions of the repealed. Act shall stand transferred, where necessary, to the Registrar, arbitrator, liquidator or tribunal or other corresponding officer, authority or person under this Act, and if no such officer, authority or person exists or if officer, authority or person as the State Government may designate and shall be continued and disposed of before such officer, authority or person in accordance with the provisions of this Act.
3. (3) Any reference to the Act repealed or to any provisions thereof or to any officer, authority or person entrusted with any functions there under, in any law for the time being in force or in any instrument or document, shall be construed, where necessary, as a reference to this Act or its relevant provisions or the corresponding officer, authority or person functioning under this Act and the corresponding officer, authority or person functioning under this Act and the corresponding officer, authority or person as the case may be, shall have the exercise the functions under the repealed Act or under the instrument or document.

For the removal of doubt, it is hereby declared that the provisions of the Companies Act, 1956, shall not apply to societies registered or deemed to be registered; under this Act.

THE MAHARASHTRA CO-OPERATIVE SOCIETIES RULES, 1961 In exercise of the powers conferred by sub-sections (1) and (2) of Section 165 of the Maharashtra Co- operative Societies Act, 1960 (MAH.XXIV of 1961), the Government of Maharashtra hereby, after previous publication as required by sub-section (3) of that section read with Section 22 of the Bombay General Clauses Act, 1904 (BOM.1 of 1904), makes the following Rules, namely :-