The Manipur Co-Operative Societies Act, 1976

THE MANIPUR CO-OPERATIVE SOCIETIES ACT, 1976 (MANIPUR ACT NO. 14 OF 1976) An Act to consolidate and amend the law relating to Co-operative Societies. BE it enacted by the Legislature of the State of Manipur in the Twenty-seventh year of the Republic of India as follow :—

In this Act, unless the context otherwise requires— (1) “Agricultural Marketing! Society” means a. society. (9.) the object of Which is the marketing of agricultural produce and the supply of implements and other requisites for agricultural production, and (b) not less than three fourths of the members of which are agriculturists, or societies formed by agriculturists ; (2) “Arbitrator” means a person appointed under this Act to decide disputes referred to him by the Registrar or Registrar’a nominee or Board of Nominees. (3) “Auditor” means a. person appointed by the Registrar or by a. society to audit the accounts of the society, (3)A. “Board” means the Board of Management ofva society. (4) “Bonus” means payment made in cash or kind, out of the profits of a. society to a, member, or to :1. person who is not a member, on the basis of his contribution (including any contribution in the form of labour or service) to the business of the society, and in the case of a farming society, on the basis both of such contribution and also the value or income 01-, as the cn.an may be, the area of the lands of the members brought twrcther for joint cultiVation as may be decided by the society ; (5) “Bye-laws” means bye-luws registered under this Act and for the time being in force, and includes registered amendments of such bye-Iaws ; (6) “Central Bank” means a. Co-operative Bank, the objects of Which include the creation of funds to be loaned to other Societies ; (7) “Committee” means the Committee of management, or other directing body, to which the management of the affairs of a society is entrusted. (8) “Company” means a. company as defined in the Companies Act, 1956, and includes 3. Banking Company and also any Board, corporation or other corporate body, constituted or established by any Central, State or Provincial Act for the purpose of the development of any industry- ; (9) “Consumers’ ‘Society” means a society the object of-which is— (a) the procurement, production or processing, and distribution of goods, to, or the performance of other services for, its members as 33180 other customers, and (b) the distribution among its members and customers, in the proportion prescribed by rules or by the bye-laws of the Society, of the profits accruing from such procurement, pro- duction or processing; and distribution ; (10) “Co-operative Bank” means a. society registered under this Act and doing the business of banking, as defined in clause (b) of sub-section (1') of section ‘5 of the Banking Companies Act, 1949 ; (11) "‘C’o-operative Year” means the year ending on the M day of June or in case of any Society or clase of societies the accounts of which are with the previous sanction of the Registrar, balanced on any other day, the year ending on such day. (12) "Dividend” means the amount paid, out of the profits of a. soeiety, to a. member in proportion to the shares held by him - (l3) “Farming Society” means a society in Which, with the object of increasing agricultural production, employment and income and the better utilisation of resources, lands are brought together and jointly eultivated by .5111 the members, such lands (a) being owned by or leased to the members (or some of them), or (b) coming in possession of the society in any other manner whatsoever; ‘ (14‘) “Federal Society” means a. society— (a) not lesa than five members of Which are themseiyes Societies ; and (b) in Which the voting rights are so regulated that the: mem- bers which are societies have not less than four fifths of the total number of votes in the general meeting of‘ such soeiety ; , (15) “Firm” means a firm registered under the Indian Partnership Act, 1932 ; K ' (16) “General Society” means a society not falling, inlany of the classes of societies defined by the other clauses of this section ; (17) “Housing Society” means a society the object of. whichis providing members with dwelling houses ; (18) “Liquidator” means a personapjpointed‘ as liquidator under this Act ; (19) "goeal Authority” means Municipality, Town Committee or Uram Panehayztt : (20) (a) “Member” means a person joining in an application for the registration of a Oo-operative Society which is subse- quently registered, or a,- person duly admitted to member- ship of a society after registration, and includes a nominal, associate or sympathiser member ; (11) “Associate Member” means a member Who holds jointly a share of a. society with others, but whose name does not stand in the share certificate ; ' (c) “Nominal Member” means a person admitted to member- ship as such after registration in accordance With bye- 1aws ; (d) “SympathiSer Member” means a person who sympathises the aims and objects of the society and who is admitted by the society as such member ; (21) “Officer” means a person elected or appointed by a. society to {my office of such society according to its bye-laws ; and includes a Chairman, Viee-Chairman, President, Vice-President, Managing Director, Manager, Secretary, Treasurer, member ofthe Board and any other ' person elected or appointed under this Act, the» rules and the bye-laws, to give directions in regard to the business of such society. (22) “Prescribed” means prescribed by trules ; (23) “Processing Society” means a society the objects of which is the processing of goods ; (2L) “Producers’ Society” means a society the objects of Which is the production and disposal of goods or the colleetive disposal of the labour of the members thereof ; (25) “Registrar” means a person appointed to be the Registrar of Qo-opemtive Societies under this Act ; ’ ' . _, (26) “Resources Society” means a society, the'object of which. is the obtaining; for its members of credit, goods or services required by them ; (27) “ 11.11108” means rules made under this Act ', (28) “Society” means a‘Co-operetive Society registered, or deemed to be registered, under this Act ; ,__.._-.,.,-- (29) “Society with limited liability” means a society having th liability of its members limited by its bye-laws ; (30) “Society With unlimited liability” means a society the men- bers of which are, in the event of its being wound up, jointly and severally liable for and in respect of its obligations and to contribute to any deficiency in the assets of the society ; (31) “State” means State Govei'hment of Manipur ; . (32) “Tribunal” means the Manipur Co-operative Tribunal cona- tituted under this Act ; . (33) “Working capital” means funds at the disposal of a. society inclusive of paid up share capital, funds, built out of profits, and money raised by borrowing and by deposits.

Notwithstanding anything contained in this Act the State Govamment may by special order in each case, exempt subject to such conditions (if any) as it may impose. any society from any of the requirements of this Act as to registration.

(1) For the purpose of registration, an application shall be made to the Registrar in the prescribed form, and shall be accompanied by four copies of the proposed bye-laws of the society. The persons by whom, or on Whose behalf such application is made. shall furnish such information in regard to the society, as the Registrar may require. (2) The application shall be signed— (a) in the case of a society other than a federal society, by at least ten persons (each of such persons being a member of a difi'erent family), Who are qualified under this Act, and (b) in the case of a federal society, by at least five Societies. No signature to an application on behalf of a society shall be valid, unless the peracn signing is a member of the committee of such a. society, and is authorised by the committee by resolution to sign on its behalf the application for registration of the society and its bye-laws; and a copy of such resolution is appended to the application.

(1) If it appears to the Registrar that an amendment of the bye-laws of the society is necessary or desirable in the interest of such society, he may call upon the society; in the manner prescribed, to make the amendment within Such time as he may specify. (2) If the society fails to make the amendment Within the time specified, the Registrar may, after giving the society an opportunity of being heard register such amendment, and issue to the society a copy of such amendment certified by him, With effect from the date of the registration of the amendment in the manner aforesaid, the bye-laws shall be deemed to have been duly amended accordingly; and the bye-laws SO amended shall, subject to appeal (if any) be binding on the society and its members.

(1) A society may, by reSOlution passed at a general meeting, and With the approval of the Registrar, change its name; but such change shall not affect any right or obligation of the society, or of any of its members; and any legal proceedings pending before any person, authority or court may be continued by or against the society, under its new name. (2) Where a Society changes its name, the Registrar shall enter the name in its place in the register of societies and shall also amend the certificate of registration accordingly.

(1) Subject to the provision of this Act and the Rules, a society may by amendment of its bye-laws, change the form or extent of its liability. (2) When a society has passed a resolution to change the form or extent of its liability, it shall giVe notice thereof in writing to all its member and creditors and notwithstanding anything in any bye-law or contract to the contrary, any member or creditor shall, during a period of one month from the date of serving of such notice upon him, have the option of withdrawing his shares, deposits or loans. (3) (a) Any member or creditor Who does not exercise his option Within the period Specified in sub-section (2), Shall be deemed to have assented to the change. (b) An amendment of the bye-laws of a society, changing the form or extent of its liability, shall not be registered or take effect until, either— (i) all members and creditors have assented, or deemed to have aSSented, thereto as aforesaid, or (ii) all claims of members and creditors who exercise the option given by sub-Section (2) within the period specified therein have been met in full or otherwise satisfied.

(1) A society may, with the previous approval of the Registrar, by resolution passed by two-thirds majority of the members present and Voting at a Special general meeting held for the purpose, decide :— (a) to amalgamate with another society ; (b) to transfer its assets and liabilities, in Whole or part, to any other society ; (c) to divide itself into two or more societies, or (d) to convert itself into another class of society ; Provided that when such amalgamation, transfer, division or conversion, aforesaid, involves, a transfer of the liabilities of a Society to any other society, no order on the resolution shall be passed by the Registrar, unless he is satisfied that :— (i) the society, after passing such resolution, has given notice thereof in such manner as may be prescribed, to all its members, creditors and other persons whose interest are likely to be affected (hereinafter, in this Section referred to as “other interested perSOns” ), giving them the option, to be exercised within one month from the date of Such notice, of becoming members of any of the new societies, or continuing their membership in the amalgamated or converted society, or demanding payment of their share or interest or dues, as the case may be, (ii) all the members and creditors and other interested person, have assented to the decision, or deemed to have assented thereto by virtue of any member or creditor or any other interested persons, have assented to the decision, or deemed to have assented thereto by virtue of any member or creditor or any other interested person failing to exercise his option within the period specified in clause (i) aforesaid, and (iii) all claims of members and creditors and other interested persons, who exercise the option within the period specified, have been met in full or otherwise satisfied. (2) Notwithstanding anything contained in the Transfer of Property Act, 1882, or the Indian Registration Act, 1908, in the event of division or conversion, the registration of the new societies or, as the case may be, of the converted society, and in the event of amalgamation, on the amalgamation the reSolutions of the societies concerned with amalgamation, shall in each case be sufficient conveyance to vest the assets and liabilities of the original Society or amalgamating societies in the new societies or converted or amalgamated Society, as the case may be. (3) The amalgamation of societies, or division or conversion of a society shall not affect any rights or obligation of the societies so by or against the amalgamated society, or, as the case may be, the converted society, or the new societies. (4) Where two or more societies have been amalgamated, or a society has been divided or converted, the registration of such societies or society shall stand cancelled on the date of registration of the amalgamated society, or the converted society, or the new societies between Which the society may have been divided.

(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 reorganised then not withstanding anything contained in the last preceding section but subject to the provisions of this section, the Registrar may after consulting such federal society as he thinks necessary provide for the amalgamation, division or reorganisation of these societies into a single society with such constitution, property, rights, interests and authorities, and such liabilities, duties and obligations, as may be specified in the order. (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) The order referred to in subsection (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, division or re-organisation. (4) Every member or creditor of each of the societies to be amalgamated, divided or re-organised, Who has objected to the scheme of amalgamation, division or reorganisation, within the period specified, shall be entitled to receive on the issue of the order of amalgamation or reorganisation his share or interest if he be a member, and the amount in satisfaction of his dues if he be a creditor. (5) On the issue of an order under sub-section (1), the provisions in subsections (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 re-organised under the section, and to the society amalgamated, divided or re-organised.

Where a proposal for a compromise or arrangement :— (a) between a society and its creditors, or

(1) No society shall, Without sufficient cause, refuse admission to membership to any person duly qualified therefor under the provisions of this Act and its bye-laws. (2) Any person aggrieved by the decision of a, society, refusing him admission to its membership, may appeal to the Registrar. (3j The decision of the Registrar in appeal, shall be final and the Registrar shall communicate his decision to the parties within fifteen days from the date thereof.

(i) Notwithstanding anything contained in section 22, a. society may admit any person as a nominal, associate or sympathiser member. (ii) A nominal or sympathiser member shall not be entitled to any share In any form whatsoever in the profits or assets of the society as Such member. A nominal or sympathiser member shall ordinarily not have any of the privileges and rights of a member, but such a member, or an associate member, may, subject to the provisions of sub-seetion (8) of section 27,‘ have such p=~ivileges and rights and be subject to such liabilities of a member, as may be specified in the bye-laws of the society.

A person shall cease to be a member of a society on his resignation from the membership thereof being accepted, or on the transfer of the whole of his share or interest in the society to another member, or on his death, or removal or expulsion from the Society.

(1) Subject to the proviSion of the last preceding section as to the maximum holding of shares and to any rules made in this behalf, 3. transfer of, or charge on, the share or interest of a member in the share capital of a Society shall be subject to Such conditions as may be prescribed. (2) A member shall not transfer any share held by him or his interest in the capital or property of any Society, or any part thereof, unless— (a) he has held such share or interest for not less than one year ; (b) the transfer is made to a member of the society or to a person whose appiication for membership has been accepted by the society. (3) Notwithstanding anything contained in sub~Seciions (I) and (2), where a. member is allowed to resign, or is expelled, or ceases to be a member on account of his being disqualified by this Act or by the rules made thereunder or by the bye-Iaws of the society, the society may acquire the share or interest of such member in the share capia’al by paying for it at the Value determined in the manner prescribed, provided that the total payment of share capital of a society in any financial year for such purposes does not exceed ten per cent of the paid up share mcapital of the society on the last day of the financial year immediately preceding. Explanation :— The right to forfeit the share or interest of any expelled .nember in the share capital by virtue of any bye-laws of the Hmsicty, shall not be affected by the aforesaid provision. (4) Where the State Government is a member of a society the wmriutions contained in this Section shall not apply to any transfer nm'lu by it nfits share or interest in the capital of the society ; and Hum, Howrnment may, notwithstanding anything contained in this Act, wil iulmw from the society its share capital at any time, after giving to Hm mmiety notice thereof not less than three months.

Notwithstanding anything contained in any law for the time being in force, the dues of a society from a member, in insolvency proceedings against him, shall rank in order of priority next to the dues payable by him to Government or to a local authority.

(1) A society may, by resolution passed by three-fourths majority of the members entitled to vote who are present at a general meeting held for the purpose, expel a member for acts Which are detrimental to the interest or proper working of the society. Provided that no such resolution shall be valid, unless the member concerned is given an opportunity of representing his case to the general body, and no resolution shall be effective unless it is approved by the Registrar. (2) No member of a society Who has been expelled under the foregoing sub-section shall be eligible for readmission as a member of that Society, or for admission as a member of any other society for a period of one year from the date of Such expulsion ; Provided, the Registrar may, on an application by the society and in special circumstances, sanction the re-admission 0r admiseion, within the said period, of any such member as amember of the said society 01‘ of any other society, as the case may be.

The registration of society shall render it a body corporate by the name under which it is registered, With perpetual succession and a common seal, and With poWer to acquire, held and dispose of property, to enter into contracts, to institute and defend suits and other legal proceedings, and to do all such things as are necessary for the purpose for which it is constituted.

Every society shall have an address, registered in accordance With the rules, to Which all notices and communications may be sent, and the society shall send notice in writing to the Registrar of any change in the said address, Within thirty days thereof.

(1) Every society shall keep a register of its members, and enter therein the following particulars, viz. (3,) the name, address and occupation of each member ; (b) in the case of a Society having share capital, the share held by each member ; (c) the date on Which each person was admitted as member ; (d) the date on Which any person ceased to be a member ; (e) such other particulars as may be prescribed ; Provided that, where a society has by or under this Act, permitted a member to transfer his share or interest on death to any person, the register shall also show against the member concerned the name of the person entitled to the share or interest of the members, and the date on Which the nomination was recorded. (2) The Register shall be prima-facie evidence of the date on which any person was admitted to membership, and of the date on Which he ceased to be a member.

The State Government, by notification in the Official Gazette may, in the case of any society or class of societies, remit- (a) the stamp duty With which, under any law relating to stamp duty for the time being in force, instruments executed by or on behalf of a society or by an officer or member thereof, and relating to the business of the societymy class oi such instruments, or awards of the Registrar or his nominee or board of nominees under this Act are respectively, chargeable. (b) any fee payable by or on behalf of a society under the law relating to the registration of documents and to court fees, for the time being in force, and (c) any other tax or fee or duty ( or any portion thereof ) payable by or on behalf of a society under any law for the time being in force, Which the State Government is competent to levy.

A society shall receive deposits and loans from members and other persons, only to such extent, and under such conditions, as r‘: ay be prescribed or specified by the bye-laws of the society.

(1) A cO-operative society shall not make a loan to any person other than a member ; provided that with a general or Special sanction of the Registrar, 3, Co-operative Society may make a loan to another co-operatiVe society. (2) Notwithstanding anything contained in sub-Section (1), a co-operative society may make a loan to a depositor Within his deposit on its sec urity.

Save as is provided in this Act, the transactions of a society with persons other than members, shall be subject to such restrictions, if any, as may be prescribed.

A Society shall have a charge upon the share or interest in the capital and on the deposits, of a member or deceased member, and upon any dividend, bonus or profits, payable to any such member in respect of any debt due from Such member or his estate to the society ; and the soeiety may set off any sum credited or payable to such member in or towards payment of any such debt: Provided that, no co-operative bank shall have a charge upon any sum instead with it by a society out of the provident fund established by it under section 71, or its reserve fund ; and no co-operative bank shall be entitled to set off any such sum towards any debts due from the society.

(1) Notwithstanding anything (contained) in any other law for the time being in force, but subject to any prior claim of Govern. ‘ment in respect of land, revenue or any money recoverable as land revenue and to the provisions of sections 60 and 61 of the Code of Civil Procedure, 19089

The State Government may, under appropriation make bye-law, provide moneys to society for the purchase directly or indirectly of shares in other societies with limited liability, (A society to which moneys are so provided for the aforesaid purpose is hereinafter in this Chapter referred to as an ‘Apex Society”).

(1) An Apex Society which is provided with moneys as aforesaid shall, with such moneys, establish a, Fund to be called the “Principal State Partnership Fund”. (2) An Apex Society shall utilise the Principal State Partnership Fund for the purpose of—(a) directly purchasing shares in other societies with limited liability ; (b) providing moneys to a, Society to enable that society (hereinafter in this Chapter referred to as a “Central Society”) to purchase shares in other societies with limited liability (the latter societies being hereinafter in this Chapter referred to as ‘Primary Societies”). (c) making payable to the State Government in accordance with the provisions of this Chapter ; and for no other purpose.

(1) A Central Society which is provided with money by an Apex Society from the Principal State Partnership Fund shall, with such moneys, establish a Fund to be called the “Subsidiary State Partnership Fund”. (2) A Central Society shall utilise the Subsidiary State Partnership Fund for the purpose of —(a) purchasing shares in Primary societies ; (b) making payments to the Apex Society in accordance with the provisions of this Chapter ; and for no other purpose.

Shares shall not be purchased in a society from the moneys in the Principal State Partnership Fund or the Subsidiary State Partnership Fund, except with the previous approval of the State Government.

Where any shares are purchased in a society by—(a) the State Government ; or (b) an Apex Society from the Principal State or a, Central Society from the Subsidiary State Partnership Fund, as the case may be ;

Subject to the foregoing provisions of this Chapter— (a) the State Government may enter into an agreement With an Apex society setting out the terms and conditions on which it shall provide moneys to the Apex society for the purpose specified in Section 51. (b) an Apex society may, with the previous approval of the State Government, enter into an agreement with a Central society setting out the terms and conditions on Which it shall provide moneys to that Society from the Principal State Partnership Fund for the purp08e specified in clause (b) of sub-section (2) of section 52.

Notwithstanding anything contained in any law for the time being in force, but subject to such conditions as the State Government by general or special order may specify in this behalf, the State Government may— (a) give loans to a society ; (b) guarantee the payment of the principal of debentures issued by a. society, or of interest thereon, or both, or the repayment of the share capital of the society to its member ; or the payment of dividend thereon at such rate as may be Specified by the State ; (c) guarantee the repayment of loans given by a. Co—operative Bank to a society ; (d) guarantee the repayment of the principal, and payment of interest on, loans and advances given by the Reserve Bank of India, or the Industrial Finance Corporation of india, or any other authority constituted under any law for the time being in force ; or (e) provide financial assistance, in any other form (including subsidies), to a society.

The provisions of sections 51 to 61 (both inclusive) in this Chapter shall have efl‘ect notwithstanding anything inconsistent therewith contain in any other law for the time being in force.

No part of the funds, other than the net profits of a society shall be paid by way of bonus or dividend, or otherwise distributed among its members ; Provided that, a member may be paid remuneration on such Scale as may be laid down by the bye-laws, for. any services rendered by him to the society.

(1) Every society Which does, or can, derive a profit from its transactions, shall maintain a reserve fund. (2) In the case of a Resource or Producer’s society at least one-fifth of the net profit of the Society each year, and in the case of any other society at least one-tenth of the net profits of the society each year, shall be carried to the Reserve Fund; and such reserve fund shall not be used in the business of the society or may, subject to the provisions of section 70, be invested, as the State Government may by general or special order direct, or may, With the previous sanction of the Registrar, be used in part for some public purpose likely to promote the objects of this Act, or some such purpose of the State, or of local interest.

After providing for the reserve fund as provided in Section 66, and for the educational fund as provided in section 68, a Society may set aside a sum not exceeding twenty 'per cent, of its net prefitsand utilise, with the approval 'of the State» Cesoperative Union as may be notified by the State Government in this behalf from time to time, the ‘whole or part of such sum in contributing to any Co-operative purpose, or any charitable purpose within the meaning of section 2 of the Charitable Endowments Act, 1890 or to any other public purpose.

A Society shall invest or deposit its funds in one or more of the following :— (a) in a Central Bank, or the State Co-operative Bank ; (b) in any of the securities specified in section 20 of the Indian Trustee Act, 1882 ; (c) in the shares, or security bonds, or debentures issued by any other society With limited liability ; (d) in any banking company, approved for this purpose by the Registrar, and on such conditions as the Registrar may from time to time impose ; (e) in any other mode permitted by the rules, or by general or special order of the State Government.

(1) Any society may estabiish for its employees a provident fund, into Which shall be paid contributions made by its employees and by the society. Such provident fund shall not be used in the business of the society, nor shall it form: part of the assets of the society ; but shall be invested under the provisions of the last preceding section, and shall be administered, in the manner prescribed. (2) Notwithstanding anything contained in the foregoing subsection a provident fund estabiished by a society to which the Employees’ Pro-vident Fund Act, 1952 is applicable shall be governed by the Act;

Subject to the provisions in this Act and the Rules, the final authority of every secie‘ty shall vest in the- general body of members in a general meeting, summoned in such a manner as may be specified in the rules and the bye-I—aws.

The management ofevery society shall: vest in. a Board consti‘ tuted in accordance With this Act, the rules and bye«laws, Which shall exercise suehipowers and perform such; duties as may be. _eonferred-- or imposed byfthis Act. the rules: and-thebyex-laws.

(1) The qualifications for the appointment of a Manager, Secretary, Accountant or any other officer of a society shall be such as may from time to time, be prescribed. (2) The State Govt may nominate a Government servant not below the rank of class-II officer to work as Managing Director/General Manager/Manager as the case may be of a Co-operative Institution wherein the State Government have contributed to its share capital, guaranteed loans to the tune of Rs. 3 lakhs (Rupees three lakhs) or above or if the society has incurred loss to the extent of 25 p.c. of its paid up capital. The officer so nominated shall be deemed to be on deputation with the society and his salary and allowance as determined by the State Government shall be paid from the fund of the society. The officer so deputed shall be the ex-officio member of the Board and shall have the right to vote. The officer shall be the Chief Executive Officer of the society and have the following assignments; amongst others:— (a) To have general control over the administration of the society. (b) To convene meetings of the management Board and General Body. (c) To receive all moneys and securities on behalf of the society and to make arrangements for the proper maintenance and custody of cash balance and other properties of the institution. (d) To endorse and transfer promissory notes, Government securities and to endorse, sign and negotiate cheque and other negotiable instruments on behalf of the institution. (e) To be responsible for the conduct, supervision and management of the day to day business and transaction of the society. (f) To sign all deposits, receipts and operate the accounts of the society with banks. (g) To sign bonds, and agreement in favour of the society. (h) To determine the powers, duties and responsibilities of the employees of the society. (i) To institute, conduct, defend compound or abandon any suit or other legal proceedings by or against the society or otherwise concerning the affairs of the society and also to compound and allow time for payment or satisfaction of any claims or demand by or against the society: (j) Subject to the regulations if any, Which may be framed by the Board to enter into negotiations and Sanction contracts the value of Which may be determined by the Board from time to time, (k) To delegate all or any of the said powers to an employee or employees of the society subject to the ultimate control and authority being retained by him. (3) The Registrar may constitute a common cadre authority/Society or maintaining cadres of personnel for employment as Secretaries/Managers/other paid-employees of the Co-operative Institutions,

(1) No act of the society or committee or any officer done in good faith in pursuance of the business of the society shall be deemed to be invalid by reason only of some defect subsequently discovered in the organisation of the society, or in the constitution of the Board, or in the appointment or election of an officer, or on the ground that such officer was disqualified for his office. (2) No Act done in good faith by any person appointed under this Act, the rules and the bye-laws shall be invalid merely by reasons of the fact that his appointment has been cancelled by or in consequence of any order Subsequently passed under this Act, rules and the bye-laws. (3) The Registrar shall be the authority to decide if any act was done in good faith in pursuance of the business of the society ; and his decision thereon shall be final.

(1) If, in the opinion, of the Registrar, the Board of any society persistently makes default, or is negligent, in the performance of the duties imposed on it by this Act or the Rules of the bye-laws, or commits any act Which is prejudicial to the interests, of the Society or its members, or Willfully disobeys directions issued by him for the purposes of securing proper implementation of Co-operative production; and other development programmes approved or undertaken by Government, or is otherwise not functioning properly, the Registrar may, after giving the Board an opportunity of stating its objects, (if any). Within fifteen days from the date of issue of notice by order in writing remove the Board, and :— (a) appoint a Board, consisting of three or more members of the society, in its place, or (b) appoint one or more administrators, Who need not be members of the society, to manage the affairs of the Society for a period (not exceeding two years) specified in the order. Which period may, at the discretion of the Registrar, be extended from time to time, so however that the total period does not exceed five years in the aggregate. (2) The Board or administrator so appointed shall, subject to the control of the Registrar and to such instructions as he, may from time to time give, have power to exercise all or any of the functions of the Board or of any officer of the society, and take all such action as may be required in the interest of the Society. (3) If at any time during any period, extended period referred to in sub-section (1), it appears to the Registrar, that it is no longer necessary to continue to carry on the affairs of the society as aforesaid, the Registrar, may by an order published in the Official Gazette, direct that the management shall terminate ; and on such order being made, the management of the Society shall be handed over to a new Board duly constituted. (4) The Committee or administrator shall, at the expiry or termination of its or his terms of office. arrange for the constitution of a new Board in accordance with the bye-laws of the society. (5) All acts, done or proposed to be done by the Committee or administrator during the period the affairs of the society carried on by the Committee or administrator appointed under sub-section (1), shall be binding on the new Board: (6) The entire Board of Directors of a Central Co-operative Bank, Urban Co-operative Bank and Primary Land Development Bank and Primary Agricultural Credit Co-operative Society shall stand automatically disqualified if the amount of default or the total number of defaulters exceeds 60 p. c. of the total demand or the total number of indebted societies/members in the case of Central Co-operative Bank, Urban Co-operative Bank and 70 p. c. of the total demand/or the total number of indebted members in the case of primary Agricultural credit co-operative Societies for a continuous period of 2 (two) years. (7) On being discovered or declared to be disqualified under sub-section (6). The Registrar shall appoint a Special officer who should be charged with the responsibility for managing the affairs of such Banks/Primary Society as long as is necessary but not exceeding 2 (two) years. The officer appointed in the Bank or in the society shall be Vested with the powers of Registrar under section 156 in respect of individual defaulters at the primary level. If the position of the overdues of the institutions whose management is entrusted to the special officer does not improve even after the tenure of two years, the management of the institution shall not be restored to the elected representative and alternative institutional arrangement should be made for the provision of agricultural credit and the tenure of the office of the special officer may be extended by one year. Necessary arrangement should be made for liquidation of the society and for extension of the area of an adjoining viable society so as to enable the. latter to meet the credit needs of the non-defaulters and new members from the area or the Bank may by-pass the society and may undertake to finance the cultivators directly through its branch. (8) All the Cooperative Institutions registered are to submit proceedings of the general body, Board of management and any other committees and subcommittees to the Registrar, Co-operative Societies, Manipur within 15 (fifteen) days from the date of the meeting. If in the opinion of the Registrar there is anything in the proceedings which is contrary to the provisions of the Act and Rules and the bye-laws of the society. he may annul such proceedings by an order in writing but of course he shall issue a show cause notice to the concerned officer or the Board etc.

(1) The Registrar may direct any Society or class of Rocietiee, to keep proper books of accounts with teepeet to all sums of money received and expended by the society and the matters, in respect of Which the receipt and expenditure take place, all sales and purchases of goods by the society, and the assets and liabilities of the society, and to furnish such statements and returns and to produce such records as may be required from time to time ; and the officer or officers of the Society shall be bound to comply with his order within the period specified therein. (2) Where any society is required to take any action under this Act, the rules or bye-iaws, or to comply with an ordervmade under the foregoing sub-section and such action is not taken :— (a) within the time provided in this Act, the rules or the bye-laws, or the order, as the case may be, or (b) where no time is so provided, within such time, having regard to the nature and extent of the action to be taken as the Registrar may specify by notice in writing, the B egistrar may himself, or through a person authorised- by him, take such action, at the expense of the society ; and such expense shall be recoverable from the society as if it were an arrear of land revenue. (3) Where the Registrar takes action under sub-section (2), the Registrar may call upon the officer or officers of the society, whom he considers to be responsible for not cemplying with the provisions of this Act, the rules or the bye-laws, or the order made under subsection (1), and, after giving Such officer or officers an opportunity of being, heard, may require him or them to pay to the society the expenSee paidbr payable by it to the State Government as a result of their failure to take aetion anti to pay to the assete of the society such sum not exceeding twenty-five rupees as the Registrar may think fit, for each day until the Registrar’s directions are carried out.

(1) Where the Registrar is satisfied that the books and records of a society are likely to be suppressed, tempered with or destroyed, or the funds and property of a Society are likely to be misappropriated or misapplied, the Registrar or the person antheriised by him may apply to therEXecutiVe Magistrate within whose jurist diction the society is functioning for seizing and taking posseseienof the records and property of the society. (2) On receipt of an application under sub-subtion (1), the Magistrate may authorise any police offier, not below the rank of a Sub-lnspector, to enter and search any place where the recerds and property are kept or likely to be kept, and to seize them and hand over possesion thereof to the Registrar or the person authorised by him, as the case may be.

(1) The Registrar may, of his own motion, by himself, or by a person duly authorised by him in writing in this behalf, hold an inqulry into the constitution, working and financial conditions of a society. (2) The Registrar shall hold such an inquiry— (a) on the requisition of amember society in the case of an affiliating society, or (b) on the a plication b the majority of the members of the Board of the somety, or (c) on the application of one-third of the members of the society, or (d) on the requisition of the creditors repreSenting half of the borrowed capital of the society. (3) (a) All officers, members and past members of the society in respect of which an enquiry is held, and any other person who, in the opinion of the officer holding the inquiry is in possession of information. books and papers relating to the Society, shall furnish such information as is in their possession,and produce all books and papers relating to the society which are in their custody or power and otherwise give to the officer holding an inquiry all assistance in connection with the inquiry which they can reaSOnably give. (b) If any such person refuses to produce to the Registrar or any person authorised by him under sub—section (1), any book or papers which it is his duty under clause (a) to produce or to answer any question which is put to him by the Registrar 01' the persan authorised by the Registrar in pursuance of sub-elause (a) the Registrar or the person authorised by the Registrar may certify the refusal and the Registrar, after hearing any statement Which may be olfered in defence, punish the defaulter With a. penalty not exceeding five hundred rupees. Any sum imposed as penalty under this section shall on the application by the Registrar or the person authorised by him, to a Magistrate having jurisdiction, be recoverable by the Magistrate as if it were a fine imposed by himself. (4) The remit of any inquiry under this section shall be communicated to the society whose affairs have been investigated. (5) It shall be eempetent for the the Registrar to withdraw any inquiry from the officer to whom it is entrusted, and to hold the inquiry himself 01' entrust it to any other person as he deems fit.

(1) Notwithstanding anything contained in the Indian Limitation Act, 1963, but subject to the specific provisions made in this Act, the period of limitation in the case of a dispute referred to the Registrar under the last proceedings section shall— (a) when the dispute relates to the recovery of any sum, including interest thereon, due to a society by a member thereof, be computed from the date on which such member dies or ceases to be a member of the society ; (b) When the dispute is between a society or its committee, and any past committee, any past or present officer, or past or present agent, or past or present servant or the nominee, heir or legal representative of a deceased officer, deceased agent or deceased servant of the society, or a member, or past member, or the nominee, heir or legal representative of a deceased member, and when the dispute relates to any act of omission on the part of either party to the dispute, be six years from the date on Which the act of omission With reference to which the dispute arose, took place ; (c) when the dispute is in respect of any matter touching the constitution, management or business of a society which has ordered to be Wound up under section 102, or in respect of which a nominated committee or an administrator has been appointed under section 78 be six years from the date of the order issued under Section 102, or section 78 as the case may be ; (d) when the dispute is in respect of an election of an office-bearer of the societv, be one month from the date of the declaration of the result of the election. (2) The period of limitation in the case of any other dispute except these mentioned in the foregoing sub-section which are required to be referred to the Registrar under the last preceding Section shall be regulated by the provisions of the Indian Limitation Act, 1963, as if the dispute were a suit, and the Registrar a Civil Court. (3) Notwithstanding anything contained in sub-seetions (1) and (2) the Registrar may admit a dispute after the expiry of the limitation period, if the applicant satisfies the Registrar that he had sufficient cause for not referring the dispute within such period and the dispute so admitted shall be a dispute which shall not be barred on the ground that the period of limitation had expired.

Any party aggrieved by any decision of the. Registrar or his nominee or board of nominees under the last preceding Section, or an order passed under Section 95 may Within two months from the date of the decision or order, appeal to the Tribunal.

Every order passed by the Registrar or a, person authorised by him under sectien 88 or by the Registrar, his nominee or board of nominees under section 95 or 9,, every order passed in appeal under the last preceding section, every order passed by a, Liquidator under section 105, every order passed by the State Government in appeal against orders passed under section 105 and every order passed in revision under section 154:, shall, if not carried out— (a) on a certificate signed by the Registrar or a, Liquidator, be deemed to be a decree of a. Civil Court, and shall be executed in the same manner as a. decreee of such court, or (b? be executed according to the law and under the rules for the time being in force for the recovery of arrears of land revenue ; Provided that any application for the reQOVery in such manner of any sum shall be made to the Collector, and shall be accompanied by a, certificate signed by the Registrar, such application shall be made within twelve years from the date fixed in the order and if no such date is fixed, from the date of the order.

Any private transfer 01' delivery of, or encumbrance or charge 01n, property made or created after the issue of the certificate of the Registrar or Liquidator, as the case may be, under section 98 shall be null and void as against the society on Whose application the said certificate Was issued.

(1) When in any execution of an order sought to be execu- ted under section 98, any property cannot be sold for want of buyers, if such property is in occupancy of the defaulter or some perSOn in his behalf, or of some person claiming under a. title created by the defaulter subsequently to the iSSue of the certificate of the Registrar or Liquidator under clause (a) or (b) of section 98, the Court, Collector or the Registrar, as the case may he. may, notwithstanding anything contained in any law for the time being in mate, direet that the eaid pfflperty 01‘ any yortion. thereef shalt he treheiferred t0 the Society Which has applied for the ezeeutiea of the mid order, in the manner prescribed. (2) Where property is tr. nsterreai to that» society under the fore- going sub-sec tien, or where 'px‘operty is 801d under section 98, the Court, the Collector 01' the Registrar, as the eeSe be, may, in accordance With the rules, piece the Society or the purehz-teer, as the (332.5272 may be, in possession of the property transferred or 3036; (3) Subject to such rules as may Ee made is this heheif, and to any rights, encumbrances, eharges 01’ eguitiee QaWfiLHy subsisting in favour of any person, such praqaerty or portion theseof shall be held under sub-section (1) by the said seciety on such terms and conditions as may be agreed upon between the Gourt, the Coileeter or the Registxet, as the case may be, and the aii society. Subject to the general or special orders of the State Govei‘hment, the {‘Soiieeter or the Registrar may delegate to an officer, net below the rank of the Sub-S‘ieputy Collector or the Assistant Registrar, powers exercisab‘ie by the Collector 01‘ the Registrar under this seeti=;n.

(1) If the Registrar,— (a) after an inquiry has been held under section 8 or an inspection has been made under section 84c or on the report of the Auditor auditing the accounts of the society, or (b) on receipt of an application made upon a resolution carried by three-fourths of the members of the society present at a special general meeting called for the purpose, or (c) of his own motion, in the case of a society which— (i) has not commenced working, or (ii) has ceased working, or (iii) possesses shares or members’ deposits not exceeding five hundred rupees, or (iv) has ceased to comply with any conditions as to registration and management in this Act or the rules or the bye-laws, is of the opinion that a society ought to be wound up, he may issue an interim order directing it to be wound up. (2) A copy of such order made under sub-section (1) shall be communicated, in the prescribed manner, to the society calling upon it to submit its explanation to the Registrar within a month from the date of the issue of such order, and the Registrar, on giving an opportunity to the society of being heard, may issue a final order, vacating or confirming the interim order.

(1) When an interim order is passed under the last preceding section or a final order is passed under that section for the winding up of a society, the Registrar, may, in accordance with the rules, appoint a person to be Liquidator of the society, and fix his remuneration. (2) On issue of the interim order, the officers of the society shall hand over to the Liquidator the custody and control of all the property, effects and actionable claims to which the society is or appears to be entitled and of all books, records and other documents pertaining to the business of the society and, shall have no access to any of them. (3) When a final order is passed confirming the interim order, the officers of the society shall vacate their offices, and while the winding up order remains in force, the general body of the society shall not exercise any power. (4) The person appointed under this section as Liquidator shall, subject to the general control of the Registrar, exercise all or any of the powers mentioned in section 105. The Registrar may remove such person and, appoint another in his place, without assigning any reason. (5) The whole of the assets of the society shall on the appointment of Liquidator under this section vest in such Liquidator, and notwithstanding anything contained in any law for the time being in force, if any immovable property is held by a Liquidator on behalf of the Society, the title over the land shall be completed as soon as the mutation of the name of his office is effected, and no Court shall question the title on the ground of dispossession, want of possession or physical delivery of possession. (6) In the event of the interim order being vacated, the person appointed as Liquidator shall hand over the property, effects and actionable claims and books, records and other documents of the society to the officers who had delivered the same to him. The acts done, and the proceedings shall, after the interim order has been cancelled under the preceding section, be continued by the officers of the society.

The Liquidator appointed under section 103 shall have power subject to the rules and the general supervision, control and direction of the Register :— (a) to institute and defend any suit and other legal proceedings civil or criminal, on behalf of the society, in the name of his office ; (b) to carry on the business of the Society, so far as may be necessary for the beneficial winding up of the same ; (c) to sell the immovable and movable property and actionable claims of the society by public auction or private contract with power to transfer the whole or part thereof to any person or body corporate or sell the same in parcels ; (d) to raise, on the security of the assets of the society, any money required ; (e) to investigate all claims against the society and, subject to the provisions of the Act, to decide questions of priority arising out of such claims, and to pay any class or classes of creditors in full or rateably according to the amount of such debts, the surplus being applied in payment of interest from the date of liquidation at a rate to be approved by the Registrar, but not exceeding the contract rates. ; (f) to make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claims, present or future, whereby the Society may be rendered liable; (g) to compromise all calls or liabilities to calls and debts and liabilities capable of resulting in debts and all claims present or future, certain or contingent, subsisting or supposed to subsist between the society and a contributory or alleged contributory or other debtor or person apprehending liability to the society, and all questions in any way relating to or effecting the assets or the winding up of the society on such terms as may be agreed, and take any security for the discharge of any such call, liability, debt, or claim, and give a complete discharge in respect thereof ; (h) to determine from time to time, after giving an opportunity to answer the claim, the contribution to be made or remaining to be made by the members or past members or by the estates, nominees, heirs or legal representatives of deceased members, or by any officer, past officer or the estate or nominees, heirs, or legal representatives of deceased officer to the assets of the society, such contribution being inclusive of debts due from such members or officers ; (i) to issue requisitions, under section 98 ; (j) to get disputes referred to the Registrar for decision by himself or his nominee or board of nominees ; (k) to determine by what persons and in what proportion the cost of the liquidation shall be borne ; (l) to fix the time or times within which the creditors shall prove their debts and claims or be included for the benefit of any distribution made before those debts or claims are proved ; (m) to summon and enforce the attendance or witnesses and to compel the production of any books, accounts, documents, securities, cash or other properties belonging to or on the custody of the society by the same means and in the same manner as is provided in the case of Civil Court under the Code of Civil Procedure, 1908 ; (n) to do all acts, and to execute in the name and on behalf of the society all deeds, receipts and other documents, as may be necessary to such winding up ; (o) to take such action as may be necessary under section 19, with the prior approval of the Registrar, if there is reason to believe that the society can be reconstructed.

After expiry of the period for appeal against the order made under sub-section (1) of section 102 or where the appeal has been dismissed the order for winding up shall be effective and shall operate in favour of all the creditors and of all the contributories of the Society, as if it had been made on the joint petition of creditors and contributories of the society. When a winding up order becomes effective, the Liquidator shall proceed to realise the assets of the Society by sale or otherwise and no dispute shall be commenced or, if pending at the date of the winding up order, shall be proceeded with, against the Society except by leave of the Registrar and subject to such terms as the Registrar may impose. The Registrar, may of his own motion, however, entertain or dispose of any dispute by or against the Society.

(1) The winding up proceedings of the society shall be closed within three years from the date of the order of the winding up, unless the period is extended by the Registrar ; Provided that, the Registrar shall not grant any extension for a period exceeding one year at a time and four years in the aggregate and shall, immediately after the expiry of seven years from the date of the order for winding up of the society, deem that the Liquidation

This Chapter shall apply to— (a.) Co-operative Banks advancing loans, other than short term loans for purposes herein enumerated (hereinafter referred to as Land Development Banks) that is to say :— (i) land improvement and productive purposes ; (ii) the creation, rebuilding or repairing of house for agricultural purposes; (iii) the purchase or acquisition of title to agricultural lands by tenant purchasers or tenants under the Manipur Land Revenue and Land Reforms Act, 1960 and any corresponding law for the time being in force in any part of the State ; or (iv) the liquidation of debts under law for the time being in force in any part of the State ; and (b) any other co-operative bank permitted by the Registrar under Section 142 to function as a Land Development Bank. Explanation 1.—For the purposes of this section, short term lan means a. loan for a duration of less than 15 months. Explanation 2.—Land improvement and productive purposes means any work, construction or activity which adds to the productivxty of the land and, in particular, includes the following, that is to say — (a) construction and repair of wells (including tube wells), tanks and other work for the storage, supply or distribution of water for the purpose of agriculture, or for the use of men and cattle employed in agriculture ; (b) renewal or reconstruction of any of the foregoing works, or alterations therein, or additions thereto ; (c) preparation of land for irrigation ; (d) drainage, reclamation from rivers or other waters, or protection from floods or from erosion or other damage by water, of land used for agricultural purposes, or waste land Which is cultivable ; (e) bunding and similar improvements ; (f) reclamation, clearance and enclosure or permanent improvement of land for agricultural purposes ; (g) horticulture ; (h) purchase of oil engines, pumping sets and electrical motors for any of the purposes mentioned herein ; (i) purchase of tractors or other agricultural machinery ; (j) increase of the productive capacity of land by addition to it of special variety of Soil ; (k) construction of permanent farm-houses, cattle-sheds, and sheds for processing of agricultural produce at any stage ; (l) purchase of machinery for crushing sugarcane, manufacturing gur or khandsary or sugar ; (m) purchase of land for consolidation of holdings under the Manipur Land Revenue and Land Reforms Act. 1960. (n) such other purposes as the State Government may, from time to time, by notification in the Official Gazette, declare to be improvement or productive purpose for the purpose of this Chapter.

There shall be a State Land Development Bank for the State of Manipur, and eswmany Primary Land Development Bank as may be deemed necessary.

(1) The Register, or any other persan appointed by the State Government in this behalf, shall be Trustee for the purpose of securing the fulfilment of the obligations of the State Development Bank to the holders of debentures issued by it. (2) The Trustee shall be a corporation sole by the name of the Trustee for the debentures in respect of which he is appointed, and Shall have perpetual Succession and a common seal, and in his corporate name may sue and be sued. (3) The powers and functions of the Trustee shall be governed by the provisions of this Act, and the instrument of trust executed between the State Land Development Bank and the Truetee, as modified from time to time by mutual agreement between the State Land Development Bank and the Trustee.

A written order by the Land Development Bank or persons or Board authorised under the bye-iaws of the Bank to make loans for all or any of the purposes specified in section 111, granting a loan to or with the consent of a. person mentioned therein, for the purpose of carrying out the work Specified therein, for the benefit of the land or for the productive purpose specified therein, shall for the purPOSe of this Act, be conclusive of the following matters, that is to Say :---- (a) that the work described or the purpose for which the loan is granted, is an improvement or productive purpose, as the case may be, within the meaning of section 111. (b) that the person had at the date of the order a right to make such an improvement, or incur expenditure for productive purpose, as the case may be ; and (c) that the improvement is one benefiting the land specified and productive purpose concerns the land offered in security, or any part thereof as may be relevant.

(1) A mortgage executed in favour of a Land Development Bank, shall have priority over any claim of the Government arising from a loan granted after the execution of the mortgage under the Land Improvement Leans Act, 1883, or the Agriculturists’ Loans-Aet, 1884, or under any other law for the time being in force. (2) Notwithstanding anything contained in the law for the time being in force, Where a mortgage in favour of a Land Development Bank is in respect of land in Which a tenant purchaser or tenant has an interest, the mortgage may be against the security of such interest, and the rights of the mortgage shall not be affected by the failure of the tenant purchaser or tenant to comply with the requirements of such law, and the sale of the land and his interest therein under such law shall be subject to the prior charge of the Land Development Bank.

The mortgages executed in favour of, and all other assets transferred to a Land Development Bank, by the members thereof, with effect from the date of such execution or transfer, be deemed to have been transferred by such Land Development Bank to the State Land Development Bank,and shall vest in the State Land Development Bank.

(1) Notwithstanding anything contained in the Transfer of Property Act, 1882 or any other law for the time being in force, 110 mortgager of property mortgaged to a Land Development Bank, shall eXcept With the prior consent in writing of the bank, and subject to such terms and conditions as the bank may impose lease or create any tenancy rights on any such property : Provided that, the rights of the Land Development Bank shall be enforceable against the tenant purchaser, the leasee or the tenant, as the case may be, as if he himself were a mortgagor. (2) Where land, mortgaged with possession to a Land Development Bank, is in actual possession of a tenant, the mortgagor or the Land Development Bank shall give notice to the tenant to pay rent to the Land Development Bank during the currency of the lease and the mortgage, and on such notice being given, the tenant shall be deemed to have attorned to the Land Development Bank.

Notwithstanding anything contained in section 121 all moneys due under the mortgage shall unless otherwise directed by the State Land Development Bank or the trustee, and communicated to the mortgagor, be payable by the mortgagor to the Land Development Bank, and such payments shall be as valid as if the mortgage had not been so transferred and the Land Deveiopment Bank shall in the absence of specific direction to the contrary, issued by the State Land DeVelopment Bank or trustee and communicated to the Bank, be entitled to sue on the mortgage or take any other proceeding for the recovery of moneys due under the mortgage.

Where any property mortgaged to a Land Development Bank is 'wholly or partially destroyed, or for any reason the security is rendered insufficient and the mortgagor, having been given a reasonable opportunity by the bank to provide further security enough to render the whole security sufficient, or to -repay sneh portion of loan as may be determined by the bank has failed to provide such security or to repay such portion of loan, the whole of the loan shall be deemed to fall due at once ; and the bank shall be entitled to take action against the mortgagor under section 132 or section 133 for the recovery thereof. Eepianation :—Seeurity shall be deemed insufi‘icient Within the meaning of this section, unless the value of the mortgaged property (including improvements made thereon) exceeds the amount for the time being due on the mortgage by such proportion as may be specified in the rules, reguiations or the bye-laws of the Land Development Bank.

The proceeds of every sale effected under section 133 and confirmed under the preceding section shall be applied first in payment of all costs, charges and eXpenses incurred in connection With the sale or attempted sales, secondly, in payment of any or all interest due on account of the mortgage in consequence whereof the mortgaged property was sold, and thirdly, in payment of the principal due on account of the recovery. If there remain any residue from the preceeds of sale, the same shall be paid to the person proving himself interested in the property sold, or if there are more such persons then one, then to such persons upon their joint receipt or according to their respective interest therein as may be determined by Land DevelopmentBank : Provided that, before any Suoh payments are made the unsecured dues owing— (a) from the mortgage! to the Land Development Bank may be adjusted, and (b) from any member or past member to whom the mortgagor is indebted may also be adjusted under the Written authority given by such member and past member, and after holding such inquiry as may be deemed necessary.

(1) Where a sale of mortgaged property has become abso= lute under section 134 and the sale proceeds have been received in full by the Land Development Bank, the bank shall grant a certificate to the purchaser in the prescribed form, certifying the property sold, and sale price, the date of its sale, the name of the person who at the time of the sale is declared to be the purchaser, and the date on Which the sale became absolute ; and upon the production of such certificate the Sub-Registrar appointed under the Indian Registration Act, 1908, within the limits of whose jurisdiction the whole 01' any part of the property specified in the certificate is situated, shall enter the contents of such certificate in his register rel’ating to immovable property. (2) (a) Where the mortgaged property sold in the occupancy of the mortgagor, or of some person on his behalf or some persons claim 311ng under a title created by the mortgager, subsequent to the mortgage in favour of the State Land Development Bank or a Land Development Bank and a certificate in respect thereon has been granted under the foregoing sub-seetion the Revenue Officer shall, on the application of the purchaser, order delivery to be made by putting such purchaser or any person who he may appoint to receive delivery, on his behalf, in poseession of the property. (b) Where the property sold is in the occupancy of a tenant or other person entitled to occupy the Same, and a certificate in respect thereof has been granted upon the feregoing sub-sectien, the Revenue Officer, shall, on the application of the purchaser and after notiee to eunh tenants or other person, order the deliVery to be made by affixing copy of the certificate of sale in a conspicuous place on the property and preclaimingto the occupant by heat of drum or other customary mode at some convenient place, that the right title and interest of the mortgagor have been transferred to the purchaser. (3) Where any property is sold in the exercise or purported exera eise of a power of sale under section 133, the title of the purchaSer shall not be questioned on the ground that the circumstances required for authorising the sale had not arisen, or due notice of the sale was not given, or the poWer of sale was otherwise improperly or irregularly exercised : Provided that, any person who sufi‘ers damage on account of nna uthorised, improper or irregular exercise of such povver shall have a remedy in damages against the Land Development Bank.

(1) Notwithstanding anything contained in Section 91 on an application made by a Land Development Bank for the recovery of arrears of any sum advanced by it tn any of its members and on its furnishing a statement of accounts in reapect of the arrears, the Registrar may, after making Such enquiries as he deems fit, grant a certificate for the recovery of the amount stated therein to be due as arrears. (2) A certificate by the Registrar under eub-seetion (1) shall be final and conclusive as to the arrears due. The arrears stated to be due therein ehall be recoverable according to the law for the time being in force for the recovery of arrears of land revenue. (3) It shall be competent for the Registrar or a person authorised by him to direct conditional attachment of the property of the mart- gagor until the arrears due to the Land Devalopment Bank together with interest and any incidental charges incurred in recoVery of such arrears, are paid or security for payment of such arrears is furnished to the satisfaction of the Registrar and the provisions of section 95 shall apply mutatis mutandis to conditional attachment of any property made or to be made under this section.

(1) Any ameunt due to a. Land Development Bank (inclu- a’iEmg ease of recovery thereof) shall on an application by it in this behalf be recoverable by the Revenue Officer, or any officer Specially autherieeti by the Revenue Office: in this behalf; in all or any of the following modes namely :-\n(a) from the borrower as if they were arrears of land revenue due by him ; (b) out of the land for the benefit of Which the loan has been granted as if they were arrears of land revenue due 1n respect of that land ; (c) from a. surety (if any) as if they were arrears of land revenue due by him ; (d) out of the property comprised in the collateral security (if any) according to the procedure for the realisation of land revenue by the sale of immovable property other than the land on which the revenue is due.

At any sale of movable or immovable property, held under the pmviaions e‘f this ChapterS no officer or emyloyee of a, Land De= who hem Bank 01‘ the State Land Development Bank, except on behalf of the Bank of whiah he is an officer or an employee, and no pemoa haying any duty to perform in connection with such sale, shall ei‘o’aar direei‘iy or indirectly bid for or acquire or attempt to ecquire any interest in such property.

Nothing contained in any law for the time being in force in any pert. of the State shall apply to any alienation in favour of the Land DeVelopment Bank.

(1) It shall be competent for the State Governmeni? to conetibube one or more Guarantee Funds on such terms and conditions as ii; may deem fit, for the purpose of meeting losses that might arise as a. result of loana being made by the Land Development Banks on tibiae “be immovable property subsequently found to be defective or for any other purposes under this Chapter, for which in the opinion of the Stem Government, it) is necessary to provide for or create a. separate Guarantee Fund.\n(2) The State Land Development Bank and the Land Development Beaks shell contribute be such funds at such rate as may be prescribed, mad the constitution, maintenance and utilisation of such Funds shall be governed by such rules, as may be made by the State Government in this behalf.

It shall be competent for the Registrar to permit any cou Oyemtive bank to function as a. Land Development Bank under such terms and conditions and for such period as he may deem fit.

The provisions of sections 102 and 103 of the Transfer of Property Act, 1882, end of any rules made under section 104 thereof, shall apply, so far as may he, in respect of all notices to be served under this Chayber,

(1) The Tribunal may, either on the application of the Registrar, or on the application of any party interested, review its own order in any case, and pass in reference thereto such order as it thinks just : Provided that, no such application made by the party interested shall be entertained, unless the Tribunal is satisfied that there has been the discovery of new and important matter of evidence, which after the exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when, its order was made, or that there has been some mistake or error, apparent on the face of the record or for any other sufficient reasons ; Provided further that, no such order shall be varied or revised, unless notice has been given to the parties interested to appear and be heard in support of such order. (2) An application for review under the foregoing sub-section by any party, shall be made within ninety days from the date of the communication of the order of the Tribunal.

(1) In exercising the functions conferred on it by or under this Act, the Tribunal shall have the same powers as are vested in a Court in respect of,-- (a) proof of facts by affidavit, (b) summoning and enforcing the attendance of any person and examining him on oath, (c) compelling discovery or the production of documents and (d) issuing commissions for the examination of witnesses. (2) In the case of any such affidavit, any officer appointed by the Tribunal in this behalf may administer the oath to the deponent.

(1) An Appeal against an order or decision under section 4, 9, 11, 12, 13, 14, 17, 29, 35, 73 and 105 shall lie,-- (a) if made or sanctioned or approved by the Registrar or the Additional or Joint Registrar on whom powers of the Registrar are conferred, to the State Government. (b) if made or sanctioned by any person other than the Registrar, or the Additional or Joint Registrar on whom the powers of the Registrar are conferred to the Registrar. (2) An Appeal against an order or decision under sections 79, 85 and 88, and any order passed by the Registrar for paying compensation to a society, and any other order for which an appeal to the Tribunal has been provided under this Act shall lie to the Tribunal. (3) An appeal under sub-section (1) or (2) shall be filed within two months of the date of the communication of the order or decision. (4) Save as provided in this Act, no appeal shall lie against any order, decision or award passed in accordance with this Act; and every such order, decision or award shall be final, and where any appeal has been provided for, any order passed on appeal shall be final and no further appeal shall lie against it.

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 have done by him by or under this Act.

(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 bye-laws, or the amendment of its bye-laws, or the dissolution of the board of a society, or the management of the society on dissolution thereof ; or (b) any dispute required to be referred to the Registrar, or his nominee, or board of nominees, for decision ; (c) any matter concerned with the winding up and dissolution of a society. (2) While a Society is being wound up, the Suit or other legal proceedings 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) 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 Court upon the merits, or upon any other ground whatsoever except for want of jurisdiction.

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 causes 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) 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) In particular, and without prejudice to the generality of the foregoing power, such rules may— (i) subject to the provisions of section 3, 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 bye-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 ; (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 the membership ; (vii) prescribe in the case of a federal society, or class of federal societies, the proportion of individual members or society members in such society or class of societies and the proportion of individual members to society members in the board of such society or class of Such 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 procedures 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 procedure for registering the address of a society and the change of its address. (xvi) provide for the formation and maintenance of a register of members, and where the liability of members is limited by shares, of a register of shares and a list of members ; (xvii) provide for securing that the share capital of any society shall be available 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 ; (xviii) provide for the procedure to be adopted by a society with limited liability in order to reduce its share capital ; (xix) 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 ; (xx) regulate the manner in which funds may be raised by a society or class of societies by means of shares or debenture or otherwise and the quantum of funds so raised ; (xxi) 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 ; (xxii) prescribe the manner of recalling a loan ; (xxiii) prescribe the limits for granting credit by a non-credit society or a class of non-credit Societies ; (xxiv) prescribe the prohibitions and restrictions subject to Which societies may trade or transact business with persons Who are not members ; (xxv) 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 the property to the charge shall be used in its satisfaction ; (xxvi) provide for giving reasonable notice of the charge under section 48 ; (xxvii) prescribe the procedure by Which a society shall calculate and write off bad debts ; (xxviii) prescribe the sums Which, in addition to those referred to in section 65(1), shall be deducted from profits before arriving at the profits for the purpose of section 65(2) ; (xxix) provide for the formation and maintenance of reserve fund, and the objects to which such fund may be applied and for the investment and used of any fund including reserve fund under the control of a society ;

Notwithstanding anything contained in this Act, in the case of an insured co-operative bank-