Chapter XVI MISCELLANEOUS

1. (1) It shall be the duty of each co-operative society to arrange co-operative education and training relating to basic needs of the institution, for its officers, personnel and members, and for this purpose it shall provide for sufficiently in its annual budget.
2. (2) The Registrar shall prepare working plan for co-operative education and training for various co-operative institutions of the State in coordination with federal bodies, if any, and the Rajasthan State Cooperative Union. The Registrar shall implement such plan through cooperative union of the State or any such education and training institution, which has expertise/resources for implementing such plan

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

1. (1) Every member of a co-operative society shall be entitled to inspect, free of cost, at the society's office during office hours, or at any time fixed for the purpose by the society, copy of this Act, the rules and the bye-laws, the last audited annual balance sheet, the profit and loss account, the list of the members of the committee, the register of members, the minutes of general meetings, minutes of committee meetings, and those portions of the books and records in which his transactions with the society have been recorded. (2) A society shall furnish to a member, on request in writing, and on payment of such fees as may be prescribed therefor, a copy of any of the documents mentioned in sub-section (1) within seven days from the date of payment of such fees.

1. (1) A co-operative society may grant a copy of any document or any entry in a book of a co-operative society regularly kept or obtained in the course of its business and such copy, if certified in such manner as may be prescribed, be received in any suit or legal proceedings or for any other purpose as prima facie evidence of such document or entry and shall be admitted as evidence of the matters, transactions and accounts therein recorded in the same manner and to the same extent as the original entry itself is admissible.
2. (2) No officer of a co-operative society and no officer in whose office the books of a co-operative society are deposited after liquidation shall, in any legal proceeding to which the society or the Liquidator is not a party, be compelled to produce any of the society's books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under order of the court, the Tribunal or the Arbitrator made for special cause.

1. (1) In performing the functions conferred on it by or under this Act, the Tribunal, the Registrar, the Arbitrator, or any other person deciding a dispute and the Liquidator of a co-operative society shall have all the powers of a civil court, while trying a suit, under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), in respect of the following matters, namely: -
   • (a) summoning and enforcing the attendance of any person and examining him on oath;
   • (b) requiring the discovery and production of any document;
   • (c) proof of facts by affidavits; and
   • (d) issuing commissions for examination of witnesses.
2. (2) In the case of any affidavit, any officer appointed by the Tribunal, the Registrar, the Arbitrator, or any other person deciding a dispute or the Liquidator, as the case may be, in this behalf may administer the oath to the deponent.
3. (3) The Registrar or any person empowered by him shall be deemed, when exercising any powers under this Act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step-in-aid of such recovery, to be a civil court for the purposes of Article 136 of the First Schedule to the Limitation Act, 1963 (Central Act 36 of 1963).

The Registrar, a person exercising the powers of the Registrar, a person authorised to audit the accounts of a society under section 54, or to hold an inquiry under section 55, and a person appointed as an Administrator under section 30, or as an Arbitrator under section 60, or as a Liquidator under section 63, shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code, 1860 (Central Act 45 of 1860).

1. (1) Save as provided in this Act, no civil or revenue court shall have any jurisdiction in respect of, -
   • (a) the registration of a co-operative society or of an amendment of a bye-law;
   • (b) the removal of a committee; and
   • (c) any matter concerning the winding up and the dissolution of a co-operative society or concerning the business of a society under liquidation.
2. (2) Save as provided in this Act, no order, decision or award made under this Act shall be questioned in any court on any ground whatsoever

Notwithstanding anything contained in any law for the time being in force, no legal practitioner shall appear on behalf of any party in any proceeding, other than an appeal, a revision, a review or prosecution of an offence under section 109, under this Act.

Every notice or order issued or made under this Act may be served on any person, by properly addressing it to the last known place of residence or business of such person prepaying and posting by registered post a letter containing the notice or order, or by publication of such notice or order in a Hindi newspaper having wide circulation in the area of his last known address and unless the contrary is proved, such service shall be deemed to have been effected at the time at which the letter would be delivered in the ordinary course or, as the case may be, on the date of publication of the newspaper.

No act of a co-operative society or any committee or of any officer shall be deemed to be invalid by reason only of the existence of any defect or delay in the constitution of the society or the committee or in the appointment or election of an officer or on the ground that such officer was disqualified for his appointment.

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 purporting to have been done in good faith under this Act.

1. (1) The provisions of the Companies Act, 1956 (Central Act 1 of 1956), shall not apply to co-operative societies.
2. (2) Nothing contained in the Rajasthan Relief of Agricultural Indebtedness Act, 1957 or any corresponding law for the time being in force in any part of the State shall apply to loans advanced by cooperative societies under this Act. 97[22-A. Filling of returns - Every society shall, within six months of the close of every financial year, file the following returns to the Registrar, namely :-
   • (a) annual report of its activities;
   • (b) its audited statements of accounts;
   • (c) plan for surplus disposal, as approved by the general body of the society;
   • (d) list of amendments to the bye-laws of the co-operative society, if any;
   • (e) declaration regarding date of holding of its general body meeting and conduct of elections, when due; and
   • (f) such other information, as the Registrar may require, from time to time.]

1. (1) The State Government may, for the whole or any part of the State and for any class of co-operative societies, after previous publication, make rules to carry out the purposes of this Act: Provided that any rule may be made under this section without previous publication if the State Government considers that it should be brought into force at once.
2. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
   • (i) the manner in which the application for registration of a society may be made;
   • (ii) class of societies; minimum share capital for societies, for the purpose of registration; criteria on the basis of which a society may be registered;
   • (iii) the applicants to whom the order refusing the registration of co-operative society may be sent by the Registrar;
   • (iv) the procedure and conditions for change in the form and extent of the liability of a co-operative society;
   • (v) the qualifications or dis-qualifications relating to membership of a co-operative society;
   • (vi) the manner in which the proposal for an amendment of the bye-laws or for transfer of assets and liabilities, division and amalgamation of a co-operative society shall be forwarded to the Registrar; (vii) the provision for a second or casting vote by the chairperson of a meeting of a co-operative society; (viii) the appointment by a co-operative society of one of its members to represent and vote on its behalf at a meeting of another co-operative society of which it is a member; (ix) the withdrawal, removal or expulsion of members, the payments to be made to them, the liabilities of past members and the estates of deceased members; 1 (ix-a) formation of common cadre for a class of society, including rules for its applicability and governance; (x) the procedure for the nomination of a person to whom the share or interest of a member on his death may be transferred or the value thereof may be paid; (xi) the class of persons and local authorities, which may be admitted as a nominal member in a society; the class of societies, in which the spouse of a member may be admitted as an associate member; (xii) the procedure for the admission of members of a Hindu Joint Family, and minors and persons of unsound mind inheriting the share or interest of deceased members and provision for their rights and liabilities; (xiii) the mode in which the value of a deceased member's share shall be ascertained; (xiv) 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) the inspection of documents in the Registrar's office and the levy of fee for granting certified copies of the same; (xvi) the confirmation 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) providing that the share capital of any society shall be available in such 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) regulating the manner in which funds may be raised by a society or class of societies by means of shares or debentures or otherwise and the quantum of funds so raised; (xix) the limits for loans to be granted by a society or class of societies against different classes of securities or without security and the procedure for granting loans; (xx) manner or recalling a loan; (xxi) the limits for granting credit by a non-credit society or a class of non credit societies; (xxii) the manner in which the Delegate General Body of a society may be elected; (xxiii) the requisitioning of a general meeting of co-operative society; and the time within which a general meeting shall be called; (xxiv) general meetings of the members, the procedure at such meetings and the powers to be exercised by such meetings; (xxv) the election of members of committee by the general body of a co-operative society; (xxvi) the qualifications or disqualifications for membership of a committee; (xxvii) the conditions in which a member of a co-operative society may be disqualified from voting; (xxviii) the appointment, suspension, removal, term of office and filling of casual vacancies of the members of the committee and other officers and for the appointment of Administrator under section 30 and the procedure at meeting of the committee and the powers to be exercised and the duties to be performed by the committee, Administrator and other officers; (xxix) the manner in which election of a co-operative society shall be conducted; (xxx) the procedure to be adopted by the Registrar in cases where the taking of possession of books, documents, securities, cash and other properties of a society or of a society the affairs of which have been ordered to be wound up by the Registrar or by a person entitled to the same is resisted or obstructed; (xxxi) the procedure to be adopted by taking possession of books, documents, securities, cash and other property of a society by a person acting under sections 54, 55 and 56 in cases where misappropriation of funds, breach of trust, or fraud has been committed or where it is suspected or apprehended that the books, documents, securities, cash and other properties are likely to be tempered with or destroyed or removed; (xxxii) the qualifications of a Manager, Secretary, Accountant or any other officer or an employee of the society and the conditions of their service including discipline and control; (xxxiii) the prohibition against officers of a co-operative society, being interested in contracts with the society; (xxxiv) 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; and the form of declaration to be made under section 39; (xxxv) reasonable notice of the charge under section 39; (xxxvi) the procedure by which a co-operative society shall calculate and write-off bad debts; (xxxvii) the form in which an agreement under section 41 may be executed; (xxxviii) the matters connected with the direct and indirect partnership of the Government in co-operative societies; (xxxix) the rate at which dividend may be paid co-operative societies; (xl) the period within which a co-operative society out of its net profit in a year, transfer the amount to the reserve fund; (xli) the constitution of a Co-operative Education and Training Fund and the payment to be made to that fund by a cooperative society out of its own profits and the mode of its investment and the procedure thereof; (xlii) the mode of investment of funds of a co-operative society; (xliii) maintenance and administration of the provident fund which may be established by a co-operative society for the benefit of officers and servants employed by it and for the administration of such provident fund; (xliv) the objects of the Reserve Fund of a co-operative society and the mode of its investment; (xlv) the mode of disposal of Reserve Fund of a co-operative society on its winding up; (xlvi) the extent and conditions subject to which a co-operative society may receive deposits and loans; (xlvii) the restrictions on transactions by a co-operative society with non-members; (xlviii) the restrictions on grant of loans by a co-operative society against its shares; (xlix) the forms and standards of fluid resources to be maintained by co-operative societies accepting deposits and granting cash credits; (l) the levy of audit fees on co-operative societies; (li) the procedure for conducting audit, the matters on which the auditor shall submit a report, the form in which the statement of account shall be prepared for his audit, the limits within which the auditor may examine the monetary transactions of a society, the form of audit memorandum and report; (lii) the procedure for appointment of auditors under section 54; (liii) the procedure and principles for the conduct of inquiry under section 55; (liv) the procedure for apportioning the cost of inquiry and inspection and for assessing damages against delinquent promoters under section 57 and for recovery of cost and damages; (lv) the procedure to be followed in proceedings before the Registrar, Arbitrator or other person deciding disputes; (lvi) the form in which a dispute shall be referred to the Registrar: (lvii) the issue and service of processes and the mode of proving of service thereof; (lviii) the procedure to be followed in execution of awards; (lix) the conditions subject to which assets of a co-operative society shall vest in a Liquidator and the procedure to be adopted in winding up of a co-operative society; (lx) the matters in which an appeal shall lie from the order of a Liquidator appointed under section 63; (lxi) the time within which, and the manner in which Land Development Bank may send a copy of the instrument of mortgage to the Registering Officer in order to avail the benefit under section 78; (lxii) the procedure for recovery of amounts due or payable to a co-operative society; (lxiii) the manner, in which the Registrar or Collector may take action on an application made under sub-section (1) of section 88; (lxiv) the mode of making attachment before judgement; (lxv) the investigation of claims and objections that may be preferred against any attachment effected by the Registrar; (lxvi) the procedure to be followed for the custody of property attached under section 101; (lxvii) the procedure for the distraint and sale of property mortgaged to a Land Development Bank; (lxviii) the procedure and conditions for the issue, redemption, reissue, transfer, replacement or conversion of debentures issued by a society to which Chapter XII is applicable; (lxix) the maximum amount of principal, the rate of interest and other conditions for the guarantee of debentures issued by a society to which Chapter XII is applicable; (lxx) the qualifications and methods of appointment of an officer to effect sale under section 89 and the powers and functions which such an officer may exercise; (lxxi) the appointment of a receiver of the proceeds and income of mortgaged property or sale under section 89, the conditions in which he may be appointed or removed, the powers and functions which he may exercise and the expenses of management and the remuneration which he may receive; (lxxii) the procedure according to which action may be taken by a Land Development Bank against the mortgager under section 89; (lxxiii) in case of sale of immovable property under Chapter XII - (a) the procedure for proclamation and conduct of sale and the conditions on which an attempt of sale may be abandoned; (b) the method of calculating the expenses incidental to the sale or attempted sale; (c) the procedure for the receipt of deposit and disposal of the proceeds of sale; (d) the procedure for resale if an attempted sale is abandoned or the purchase money is not deposited within the prescribed time and the penalty to be levied against the purchaser who fails so to deposit the purchase money; (e) the form and method of disposal of money by a Land Development Bank under section 91; (f) the form of a sale certificate under section 92; (g) the procedure for delivery by the court of the property purchased, to the purchaser under section 92; (h) the form of the notice referred to in section 97; and (i) the fee payable for the service of such notice and the manner of serving such notice; (lxxiv) the time within which and the procedure according to which property purchased by Land Development Bank at a sale of immovable property under Chapter XII shall be disposed of by the bank; (lxxv) constitution, maintenance and utilisation of Guarantee Funds; the Rate at which the State Land Development Bank and Land Development Banks shall contribute to the Guarantee Funds; (lxxvi) the manner in which the property or any portion thereof, ordered to be transferred to a society under section 103, shall be transferred to a society; (lxxvii) the condition of service and procedure for selection of chairman and members of the Tribunal; (lxxviii) the procedure to be followed in presenting and disposing of appeals; (lxxix) the method of communicating or publishing any order, decision or award required to be communicated or published under this Act or the rules; (lxxx) offences for contravening any of the rules; (lxxxi) the account books and registers to be kept by a cooperative society and power of Registrar to direct the accounts and books to be written up; (lxxxii) the manner of certification of entries in the books of a cooperative society and of copies of documents kept by it in the course of its business; (lxxxiii) the statements and returns to be furnished by a cooperative society to the Registrar; (lxxxiv) the restrictions on persons appearing as legal practitioners; (lxxxv) the inspection of documents and the fees to be paid to a co-operative society for granting certified copies thereof; (lxxxvi) the remuneration payable to an Administrator appointed in place of a committee removed by the Registrar; (lxxxvii) the matters expressly required or allowed by this Act to be prescribed or for which rules may be made. (3) All rules and regulations made under this Act after its commencement, shall be laid, as soon as may be after they are made, before the House of the State Legislature while it is in session for a total period of fourteen days which may be comprised in one session or two or more successive sessions, and if, before the expiry of the session in which they are so laid or the successive sessions as aforesaid, the House agrees in making any modification in the rules or regulations, as the case may be, or resolves that the rules or regulations, as the case may be, should not be made, the rules or regulations, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under these rules or regulations, as the case may be.

1. (1) A society may open a branch or a place of business outside the State of Rajasthan, or a co-operative society registered under any law in any other State may open a branch or place of business in the State of Rajasthan, with the prior permission of the Registrar. Explanation :- For the purpose of this section 'Registrar' shall not include officers on whom powers of the Registrar have been conferred under sub-section (2) of section 4.
2. (2) Every co-operative society registered under any law in any other State, and permitted to open a branch or place of business in Rajasthan under the foregoing sub-section or which has a branch or place of business in Rajasthan at the commencement of this Act, shall, within three months from the opening of such branch or place of business or from the commencement of this Act, as the case may be, file with the Registrar, a certified copy of the bye-laws and amendments and, if these are not written in English language, a certified translation thereof in English or Hindi, and shall submit to the Registrar such returns and information as are submitted by similar societies registered under this Act in addition to those which may be submitted to the Registrar of the State where such society is registered.

98[If in the opinion of the Registrar, any resolution passed at the meeting of any co-operative society or committee thereof is opposed to the objects of the society or is prejudicial to the interests of the society or its members at large, or is against the provisions of the Act, the rules or the bye-laws of the society or is otherwise in excess of the powers of the society, the Registrar, may, after giving the society an opportunity of being heard, rescind the resolution. ]

1. (1) If any difficulty arises in giving effect to the provisions of this Act or of any existing law, the Government may, as occasion may require, by order, do anything, which appears to it to be necessary for the purpose of removing the difficulty: Provided that no such order shall be made after the expiry of a period of two years from the date of commencement of this Act.
2. (2) The provisions made by order under sub-section (1) shall have effect as if enacted in this Act, and such order may be made so as to be retrospective to any date not earlier than the date of the commencement of this Act: Provided that no person shall be deemed to be guilty of an offence by reason of so much of any notification as makes any provision thereof retrospective to any date before the making thereof.

1. (1) The Rajasthan Co-operative Societies Act, 1965 (Act No. 13 of 1965) is hereby repealed.
2. (2) The repeal under sub-section (1) shall not affect the previous operation of the Act so repealed and anything done or action taken or deemed to have been done or taken (including any appointment or delegation made, application or other document filed, certificate of registration granted, agreements executed, notification, order, direction or notice issued, regulation, form or bye-law framed and registered, rule made or deemed to be made or proceeding instituted before any Registrar, Arbitrator, Liquidator, or other officer, authority or person) by or under the provisions of the repealed Act shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act, and shall continue in force unless and until superseded by anything done or any action taken under this Act.
3. (3) Accordingly, all societies registered or deemed to be registered under the repealed Act, the registration of which is in force at the commencement of this Act, shall on such commencement be deemed to be registered under this Act; and all proceedings pending immediately before such commencement before any Registrar, Arbitrator, Liquidator, or other officer, authority or person under the provisions of the repealed Act shall stand transferred, where necessary, to the Registrar, Arbitrator, Liquidator or other corresponding officer, authority or person under this Act, and if no such officer, authority or person exists or if there be a doubt as to the corresponding officer, authority or person, to such officer, authority or person as the State Government may designate and shall be continued and disposed of before such officer, authority or person in accordance with the provisions of this Act.
4. (4) Any reference to the repealed Act or to any provisions thereof or to any officer, authority or person entrusted with any functions thereunder, in any law for the time being in force or in any instrument or document, shall be construed, where necessary, as a reference to this Act or its relevant provisions or the corresponding officer, authority or person functioning under this Act, and the corresponding officer, authority or person, as the case may be, shall have and exercise the functions under the repealed Act or under the instruments or documents.