Vidhi Codex

section 18

Power to direct amalgamation, division and reorganization in public interest, etc:-

The Maharashtra Co-operative Societies Act 1960
Corporate1960178 of 165 sections available26 chapters
Read full ActSections

Chapter II REGISTRATION

Statutory text
  1. (1) Where the Registrar is satisfied that it is essential in the public interest or in the interest of the co-operative movement, or for the purpose of securing the proper management of any society, that two or more societies should amalgamate or any society should be divided to form two or more societies or should be reorganized then notwithstanding anything contained in the last preceding section but subject to the provisions of this section, the Registrar may, after consulting such federal society as may be notified by the State Government by order notified in the Official Gazette, provide for the amalgamation, division or reorganization of those societies into a single society, or into societies with such constitution, property rights, interests and authorities, and such liabilities, duties and obligations as may be specified in the order.
  2. (2) No order shall be made under this section, unless-
    • (a) a copy of the proposed order has been sent in draft to the society or each of the societies concerned;
    • (b) the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions and objections which may be received by him within such period (not being less than two months from the date on which the copy of the order as aforesaid was received by the society) as the Registrar may fix in that behalf, either from the society or from any member or class of members thereof, or from any creditor or class of creditors.
  3. (3) The order referred to in sub-section (1) may contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation, the division or reorganization.
  4. (4) Every member or creditor of or other person interested in, each of the societies to be amalgamated, divided or reorganized who has objected to the scheme of amalgamation, division or reorganization, within the period specified, shall be entitled to receive, on the issue of the order of amalgamation, division or re-organisation his share or interest if he be a member and the amount in satisfaction of his dues if he be a creditor.
  5. (5) On the issue of an order under sub-section (2), the provisions in sub-sections (2), (3) and (4) of section 17 shall apply to the societies so amalgamated, divided or re-organised as if they were amalgamated, divided or reorganised under that section, and to the society amalgamated, divided or reorganised.
  6. (6) Nothing contained, in this section shall apply for the amalgamation of 3two or more co- operative banks or two or more primary agricultural credit societies. 18-A. Amalgamation of Co-operative Banks.—
  7. (1) Where the Registrar is satisfied that it is essential in the public interest, or in order to secure the proper management of one or more co-operative bonks that two or more such banks should be amalgamated, then notwithstanding anything contained in section 17, the Registrar may, after consulting such federal society or other authority as may be notified by the State Government in the Official Gazette, by order provide for the amalgamation of those banks into a single bank, with such constitution, property, rights, interests and authorities, and such liabilities, duties and obligations as may be specified in the order. Such order may provide for the reduction of the interest or rights which the members, depositors, creditors, employees and other persons may have in or against any bank to be amalgamated to such extent as the Registrar considers necessary in the interest of such persons for the maintenance of the business of that bank having due regard to the proportion of the assets of such bank, to its liabilities. Such order may also contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation of the banks.
  8. (2) No order shall be made under sub-section (1), unless-
    • (a) a copy of the proposed order has been sent in draft to each of the banks concerned;
    • (b) the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions or objections which may be received by him within such period (not being less than two months from the date on which the copy of the proposed order was received by the banks) as the Registrar may fix in that behalf, either from the banks or any members, depositors, creditors, employees or other persons concerned.
  9. (3) On the issue of an order under sub-section (1), notwithstanding anything contained in this Act or in any law for the time being in force or in any contract, award or other instruments for the time being in force, the provisions thereof, shall be binding on all banks and their members; depositors, creditors, employees and other persons having any rights, assets, or liabilities in relation to all or any of the banks concerned.
  10. (4) Notwithstanding anything contained in the Transfer of Property Act, 1882 or the Registration Act, 1908, the order issued under subsection (1) shall be sufficient conveyance for transfer or vesting the rights, assets and liabilities of the banks concerned as provided in the order.
  11. (5) The amalgamation of banks under this section shall not affect any rights or obligations of the banks so amalgamated or render defective any legal proceedings, which might have been continued or commenced by or against any such banks; and accordingly, such legal proceedings may be continued or commenced by or against the amalgamated banks.
  12. (6) Where two or more banks have been amalgamated, the registration of the bank in which the other banks are amalgamated may be continued and the registration of the other banks may he cancelled, or where the amalgamated bank is newly registered, the registration of all the amalgamating banks shall be cancelled.
  13. (7) Any order made by the Registrar under this section shall be final and conclusive, and shall not be called in question in any Court. 18-B. Amalgamation of primary agricultural credit societies.—
  14. (1) Where the Registrar is satisfied that it is essential-
    • (a) For ensuring economic viability of one or more primary agricultural credit societies ;
    • (b) For avoiding overlapping or conflict of jurisdictions of such societies in any area;
    • (c) In order to secure the proper management of one or more such societies
    • (d) In the interest of the credit structure or co-operative movement in the State as a whole :
    • (e) in the interest of the depositors ; or
    • (f) for any other reason in the public interest, that two or more primary agricultural credit societies should be amalgamated, then notwithstanding anything contained in section 17, the Registrar may, after consulting such federal society or other authority as may be notified by the State Government in this behalf, by order published in the Official Gazette, provide for the amalgamation of those societies into a single society. The constitution, property, rights, interests and authorities and the liabilities, duties and obligations of the amalgamated society shall be such as may be specified in the order. Such order may provide for the reduction of the interest or rights which the members, depositors, creditors, employees and other persons may have in, or against, any society to be amalgamated to such extent as the Registrar considers necessary in the interest of such persons for the maintenance of the business of that society, having due regard to the proportion of the assets of such society, to its liabilities. Such order may also contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation of the societies.
  15. (2) No order shall be made under sub-section (1), unless-
    • (a) a copy of the proposed order has been sent in draft to each of the societies concerned ;
    • (b) the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions or objections which may be received by him within such period (not being less than two months from the date on which the copy of the proposed order was received by the societies) as the Registrar may fix in that behalf, either from the societies or any members, depositors, creditors, employees or other persons concerned.
  16. (3) When any order is made by the Registrar under sub-section (1), the provisions of sub- sections (3) to (7) (both inclusive) of Section 18-A shall, mutatis mutandis apply to such order, in the same manner as they are applicable to any order made by him under sub-section (1) of that section. 18-C. Reorganization of societies on account of alteration of limits of local areas in which they operate.—
  17. (1) Where the area of operation of any society or societies is restricted to any district, Taluka, municipal area or any other local area and such area is divided into two or more areas, or merged in any other area, or is diminished or increased or otherwise altered, under any law for the time being in force and the State Government is satisfied that in the public interest or in the interest of the co-operative movement, or in the interest of the society or societies, or for the purpose of proper demarcation of area of operation for the societies in each area, it is essential to reorganise any such society or societies, the State Government may by an order, published in the Official Gazette, and in such other manner as it deems fit, provide for division of any existing society into two or more societies, amalgamation of two or more existing societies into one society, dissolution of any existing society or reconstitution of any existing society, affected by the territorial changes.
  18. (2) An order made under sub-section (1) may provide for all or any of the following matters namely :—
    • (a) The division of an existing society into two or more societies and the area of operation of each society;
    • (b) the amalgamation of two or more existing societies into one society and area of its operation ;
    • (c) the dissolution of any existing society ;
    • (d) the reorganization of any existing society and the area of its operation ;
    • (e) the removal of the committee of any existing society and the appointment of an administrator or an interim committee of management, to manage the affairs of the existing society of the new society or societies, under the control and direction of the State Government, for a period not exceeding two years, as may be specified in the order or until the successor committee of the concerned society is duly constituted, whichever is earlier: Provided that the period of two years may be extended by the State Government from time to time, so however that the total period does not exceed three years in the aggregate; Provided further that, it shall be competent for the State Government to alter and appoint, from time to time, during the said period or extended period and for any reason whatsoever, any other Administrator or an interim committee of management or any or all the members of such committee, as it deems fit, notwithstanding that the term of extended term of office of the Administrator or an interim committee of management or of any or all the members of such committee has not expired.
    • (f) in the case of an existing federal society, the transfer of any of its members societies as member of another federal society named in the order;
    • (g) the transfer, in whole or in part, of the assets, rights and liabilities of any existing society, including the rights and liabilities under any contract made by it, to one or more societies and the terms and conditions of such transfer ;
    • (h) the substitution of any such transferee for the existing society, or the addition of any such transferee, as a party to any legal proceeding or any proceeding pending before an officer or authority, to which the existing society is a party; and the transfer of any proceedings pending before the existing society or its officer or authority to any such transferee or its officer or authority;
      • (i) the transfer or re-employment of any employee of the existing society to, or by, such transferee and the terms and conditions of service applicable to such employees after such transfer or re-employment: Provided that, the terms and conditions of any such employee shall not be made less favorable than those applicable to him while in the service of the existing society, except with the previous approval of the State Government;
    • (j) the application of the bye-laws of the existing society to one or more societies without any modifications or with such modifications as may be specified in the order;
    • (k) All incidental, consequential and supplementary matters as may be necessary or expedient to give effect to the order made under this section.
  19. (3) Notwithstanding anything contained in the Transfer of Property Act, 1882, or the Registration Act, 1908, the order issued under this section shall be sufficient conveyance for transfer of the assets, rights and liabilities of the existing society as provided in the order.
  20. (4) Any order made by the State Government under this section shall be final and conclusive and shall not be called in question in any Court.
  21. (5) Except otherwise provided by this section or by any order issued there under, the provisions of this Act and the rules and orders issued there under, shall in all other respects apply to the existing societies and the new or reorganised societies formed under this section.

Study data processing for this section.

Some statutory text is still being prepared for this language version.

PDF: pending for this language.