Vidhi Codex

The Puducherry Co-operative Societies Act, 1972

The Puducherry Co-operative Societies Act, 1972

Corporate1972170 sections

This Act provides a comprehensive legal framework for the registration, management, financial regulation, and oversight of co-operative societies across the Union Territory of Puducherry. It applies to individuals, agricultural credit societies, land development banks, and specialized bodies such as lift irrigation groups operating within the region. By establishing clear rules for membership, governance committees, state partnership funds, financial audits, and dispute resolution mechanisms, the law ensures accountability and smooth functioning. It matters because it empowers local communities to pool resources, secure agricultural credit, improve rural infrastructure, and foster collective economic development under structured government supervision.

Start reading →Read full ActSections
  1. 1. Short title, extent and commencement
  2. 2. Definitions
  3. 3. The Registrar
  4. 4. Societies which may be registered
  5. 5. Change of liability
  6. 6. Conditions of registration
  7. 7. Power of Registrar to decide certain questions
  8. 8. Application for registration.- (1) An application for registration shall be
  9. 9. Registration
  10. 10. Evidence of registration
  11. 11. Amendment of the by-laws of the registered society
  12. 12. Power to direct amendment of by-laws
  13. 13. Change of name
  14. 14. Amalgamation, transfer or division of societies
  15. 15. Power to direct amalgamation
  16. 16. Reconstruction of societies
  17. 17. Joint ventures of societies
  18. 18. Classification
  19. 19. Conversion
  20. 20. Qualification for membership of society
  21. 21. Associate members
  22. 22. Disqualifications for membership of society
  23. 23. Right of members to services by registered society and application for redress
  24. 24. Expulsion
  25. 25. Votes of members
  26. 26. Rights of member to see book, etc.
  27. 27. Restrictions on transfer of share or interest
  28. 28. Restrictions on withdrawal of share
  29. 29. Transfer of interest on death of member
  30. 30. Liability of past member or of the estate of a deceased member
  31. 31. General meetings
  32. 32. Appointment of committee
  33. 33. Appointment of new committee or administrator on failure to constitute committee, etc.
  34. 34. Disqualifications for membership of committee
  35. 36. Removal of disqualification
  36. 37. Address of societies
  37. 38. Societies to be bodies corporate
  38. 39. First charge of society
  39. 40. Charge of immovable property or interest in the land as tenants, of members borrowing loans from certain registered societies
  40. 41. Charge and set off in respect of shares or interest of members
  41. 42. Financing bank not to have a claim on certain sums of money
  42. 43. Shares, interest, etc., not liable to attachment
  43. 44. Reserve fund and bad debt reserve not liable to attachment
  44. 45. Deduction from salary or wages
  45. 46. Exemption from compulsory registration of instruments relating to shares and debentures of registered society
  46. 47. Right to set off where a registered society purchases immovable property at a sale for any sum due to it.
  47. 48. Power to exempt from stamp duty and registration fee
  48. 49. Register of members
  49. 50. Proof of entries in societies book
  50. 51. Investment by Government in registered societies
  51. 52. Provision of funds by Government to apex society
  52. 53. Partnership of Government with apex society
  53. 54. Subsidiary State Partnership Fund
  54. 55. Approval of Government for purchase of shares
  55. 56. Liability to be limited in respect of certain shares.- Where shares are
  56. 57. Restrictions on amount of dividend
  57. 58. Indemnity of apex and central societies
  58. 59. Disposal of share capital and dividend etc.
  59. 60. Disposal of Principal State Partnership Fund and Subsidiary State Partnership Fund on winding up of an apex or central society.
  60. 61. Principal State Partnership Fund and Subsidiary State Partnership Fund not to form part of assets.
  61. 62. Agreement by Government and apex society.
  62. 63. Other forms of state aid to registered societies.
  63. 64. Provisions of this chapter to over-ride other laws.
  64. 65. Regulation of loan making policy.
  65. 66. Restrictions on borrowings.
  66. 67. Restrictions on other transactions with non-members.
  67. 68. Investment of Funds.
  68. 69. Funds not to be divided among members.
  69. 70. Properties not to be miss-used.
  70. 71. Disposal of net profits.
  71. 72. Contributory Provident Fund.
  72. 73. Gratuity.
  73. 74. Audit.
  74. 75. Inquiry
  75. 76. Inspection
  76. 77. Inspection of books by financing bank
  77. 78. Costs of inquiry and inspection
  78. 79. Registered society to pay certain expenses
  79. 80. Suspension of officer or servant of society
  80. 81. Registrar's power to give directions in the public interest, etc.
  81. 82. Surcharge
  82. 83. Supersession of committee
  83. 84. Disputes
  84. 85. Application of chapter to Land Development Banks
  85. 86. Central Land Development Bank
  86. 87. Appointment, powers and functions of Trustee
  87. 88. Issue of debentures
  88. 89. Guarantee by Government
  89. 90. Vesting of property in Trustee and debenture Holders’ charge on assets
  90. 91. Powers of Land Development Bank to advance loans and to hold lands
  91. 92. Disposal of disputes (sub-sections 3 to 7)
  92. 93. Verification of encumbrances
  93. 94. Registration of documents executed on behalf of a Land Development Bank
  94. 95. Mortgagor’s powers to lease
  95. 96. Mortgages not to be questioned on insolvency of mortgagors
  96. 97. Right of Land Development Bank to pay prior debts of mortgagor
  97. 98. Special provision for mortgages executed by managers of Joint Hindu Families, Karnavans of Marumakkattayam tarwards or tavazhis or of Nambudry illoms, etc.
  98. 99. Special provisions for mortgages by tenants in the Mahe area
  99. 100. Powers of Land Development Bank in case the mortgaged property is wholly or partially destroyed or the security is rendered insufficient
  100. 101. Distraint-When to be made
  101. 102. Distraint-How to be affected
  102. 103. Sale of property distrained
  103. 104. Power of sale when to be exercised
  104. 105. Application for sale and manner of sale
  105. 106. Application to set aside sale on deposit and confirmation of sale in default or on dismissal of such application.
  106. 107. Distribution of the proceeds of sale
  107. 108. Certificate to purchaser
  108. 109. Delivery of property to purchaser
  109. 110. Right of Land Development Bank to purchase the mortgaged property at sale
  110. 111. Appointment of Receiver and his powers
  111. 112. Title of purchaser not to be impeached on the ground of irregularity, etc
  112. 113. Recovery of sums due to the Land Development Bank
  113. 114. Officers of Land Development Bank and Sale Officers not to bid at sale
  114. 115. Power of Trustee to direct distraint and sale of produce and the sale of mortgaged property
  115. 116. Service of notice under the act
  116. 117. Sections 102, 103 and 104 of the Transfer of Property Act, 1882 to apply to such notices
  117. 118. Application of Chapter
  118. 119. Definitions
  119. 120. Declaration by members of a Lift Irrigation Society
  120. 121. Agreement regarding period of membership, sharing of expenditure, etc.
  121. 122. Prohibition against withdrawal of membership
  122. 123. Regulation of supply of water
  123. 124. Admission of transferees of land and heirs, etc., as members
  124. 125. Concessions and facilities for the small farmers’ lift irrigation society
  125. 126. Winding up and cancellation of Registration of registered societies
  126. 127. Liquidator
  127. 128. Powers of liquidator
  128. 129. Cancellation of registration
  129. 130. Bar of legal proceedings
  130. 131. Restoration of society ordered to be wound up
  131. 132. Power of Reserve Bank of India to give certain directions to Co-operative Banks
  132. 133. Power of the Registrar to recover certain sums by attachment and sale of property
  133. 134. Recovery of debts
  134. 135. Powers of financing bank to proceed against member of a registered society for recovery of moneys due to it from such society
  135. 136. Recovery of sums due to agricultural credit society
  136. 137. Registrar or person empowered by him to be civil court for certain purposes
  137. 138. Recovery of sums due to Government
  138. 139. Co-operative Tribunal
  139. 140. Appeals
  140. 141. Revision
  141. 142. Review
  142. 143. Execution of orders passed in appeal, revision or review
  143. 144. Bar of jurisdiction of Civil Courts
  144. 145. Tribunal, Registrar, etc., to have certain powers of Civil Court
  145. 146. Orders to be pronounced
  146. 147. Punishment for furnishing false information or disobeying summons or other lawful order, requisition or direction
  147. 148. Punishment for acting in contravention of section 39, 40 or 120
  148. 149. Prohibition of the use of the word "co-operative" or its equivalent
  149. 150. Punishment for failure to give effect to decisions or award in references
  150. 151. Punishment for misuse of the properties of a registered society
  151. 152. Corrupt practices.- (1) The following shall be deemed to be corrupt
  152. 153. Registrar and other officers to be public servants
  153. 154. Punishment for offences not otherwise provided for
  154. 155. Cognizance of offences
  155. 156. Securing possession of records
  156. 157. Attachment of property
  157. 158. Power to exempt societies from conditions as to registration
  158. 159. Exemption of self-reliant societies
  159. 160. Power to exempt registered societies
  160. 161. Delegation of powers of government
  161. 162. Acts of societies etc., not to be invalidated by certain defects
  162. 163. Certain Acts not to apply
  163. 164. Protection of action taken in good faith
  164. 165. Duties of Police Officer
  165. 166. Constitution of a Co-operative Advisory Council
  166. 167. Officers and employees of societies
  167. 168. Power of Government to give directions
  168. 169. Power to remove difficulties
  169. 170. Power to make rules
  170. 171. Repeals and savings

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