Chapter VI PRIVILEGES OF CO-OPERATIVE SOCIETIES

1. (1) Notwithstanding anything contained in any law for the time being in force, but subject to any prior claim of the Government in respect of land revenue or any money recoverable as land revenue,-
   • (a) any debt or outstanding demand owing to a co-operative society by any member, past member, deceased member, or a person who executed guarantee thereof for repayment of such debt or demand shall be a first charge upon the crops and other agricultural produce, cattle, fodder for cattle, agricultural or industrial implements, or machinery, raw materials for manufacture and any finished products manufactured from such raw materials, or the property or interest in the assets created out of loan/debt, or property mortgaged as security, belonging to such member, past member or the guarantor/surety thereof or forming part of the assets of the deceased member, as the case may be;
   • (b) any outstanding demands or dues payable, to a co-operative society formed with the object of providing its members with dwelling houses, by any member or past member in respect of rent, shares, loans or purchase money or any other rights or amount payable to such society shall be a first charge upon his interest in the immovable property of the society.
2. (2) The charge created under sub-section (1) shall be available as against any claim of the Government arising from a loan granted under the Rajasthan Agricultural Loans Act, 1956 (Act No. 1 of 1957) after the grant of the loan by the society.
3. (3) No person shall transfer or alienate any property which is subject to a charge under sub-section (1) except with the previous permission in writing of the co-operative society which holds the charge and any transfer of property made in contravention of this sub-section shall, notwithstanding anything contained in any other law for the time being in force, be void.

Notwithstanding anything contained in this Act or in any other law for the time being in force -

1. (a) any person, who makes an application to a society of which he is a member for a loan other than a short term loan or for a bank guarantee and/or a person, who executes a guarantee for such person, shall make a declaration in the prescribed form, which shall state that the applicant and/or guarantor thereby creates a charge on the immovable property owned by him/them and specified therein for the payment of the amount of the loan, advances or guarantee, as the case may be, which the society may make to the member in pursuance of the application and for all future advances, if any, required by him from time to time which the society may make to him as such member, subject to such maximum as may be determined by the society together with interest on such amount of the loan and advances or guarantee;
2. (b) a declaration made under clause (a) may be varied at any time by a member or guarantor thereof with the consent of the society in favour of which such charge is created and shall, subject to any prior claim of the Government in respect of land revenue or any money recoverable as land revenue or of a landholder in respect of rent or any money recoverable as rent, have the same effect as if the property covered by the declaration were mortgaged to the society for the repayment of the loan and advances therein specified and, notwithstanding anything contained in the Registration Act, 1908 (Central act 16 of 1908) or in any other law for the time being in force, the registration of such declaration shall not be compulsory;
3. (c) no member shall alienate the whole or any part of the immovable property specified in the declaration made under clause (a) until the whole amount borrowed by the member together with interest thereon is paid in full and any alienation of property made in contravention of this clause shall be void;
4. (d) subject to the prior claims of the Government in respect of land revenue or any money recoverable as land revenue or to the claims of Land Development Bank in respect of its dues, there shall be a first charge in favour of the society on the immovable property specified in the declaration made under clause (a) for and to the extent of the dues owing by him on account of the loan and advances; and
5. (e) an entry relating to a charge created by a declaration under clause (a) on the agricultural holding of the person making the declaration shall, upon an application made, at any time after such declaration, by such person or by the society, in whose favour the charge is created, to the Tehsildar either direct or through the village Patwari or Land Records Inspector, be made in the annual register maintained under Chapter VII of the Rajasthan Land revenue Act, 1956 (Act No. 15 of 1956) in the manner provided for in that Chapter and the rules made thereunder and for that purpose, such application shall be deemed to be a report under section 133 of that Act.

1. (1) Notwithstanding anything contained in this Act or in any other law for the time being in force, every member of a joint farming society as classified under the rules, whose lands have been pooled in the manner set out in the bye-laws of the society concerned, shall execute an agreement with the joint farming society specifying the period for which the land shall vest in the joint farming society, and the basis on which the share of his income shall be determined and such other matters as may be specified in the bye-laws.
2. (2) Notwithstanding anything contained in this Act or any other law for the time being in force, no agreement executed under sub-section (1) shall be valid unless such agreement is registered by the SubRegistrar, having jurisdiction over the area in which the lands are situated.
3. (3) The lands pooled by an agreement under sub-section (1), shall, after the expiry of the period of the agreements, revest in the members, as were before the agreement: 51[ Provided that where the land is allotted or leased or rented by the Government, or a municipal or some other local body or any other organisation of the Government, such land shall be surrendered back to the concerned, where the society has ceased using the land for the purpose for which it was originally allotted or leased or rented.]

1. (1) Notwithstanding anything contained in any law for the time being in force, a member of a co-operative society may execute an agreement, in such form as may be prescribed, in favour of the society providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.
2. (2) On the execution of such an agreement the employer shall, if so required by the co-operative society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement and pay the amounts so deducted to the society within fourteen days from the date of the deduction.
3. (3) Where a requisition in writing from any society registered or deemed to be registered under any law in force in any State, in respect of a member of the society who for the time being is employed in this State, is received by the employer, the requisition shall be acted upon as if it had been made by a society in the State.
4. (4) After receipt of a requisition made under the foregoing subsection, the employer at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the society, the employer shall be personally liable for the payment thereof and the amount shall be recoverable on behalf of the society from him as arrears of land revenue and the amount so due shall rank in priority in respect of such liability of the employer as wages in arrears.
5. (5) The provisions of this section shall also apply to all such agreements of the nature referred to in sub-section (1) as were in force on the date of the commencement of this Act.
6. (6) Nothing contained in this section shall apply to persons employed in Railways as defined in Article 366 of the Constitution of India and Mines and Oil fields.

1. (1) A co-operative society shall have a charge upon the share or interest in the capital and on the deposits of a member or a past member and on any dividend, bonus or profits payable to a member or a past member in respect of any debt or outstanding demand owing to the cooperative society and may set off any sum credited or payable to a member towards payment of any such debt or outstanding demand: Provided that no financing bank to which a co-operative society is affiliated shall, have a charge upon any sum invested in the financing bank as reserve fund by the society if the bank is not the sole creditor of the society, or be entitled to set off any such sum credited or payable to the society towards any debt due from such society.
2. (2) Subject to the provisions of sub-section (1), the share or interest of a member in the capital of a co-operative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt, or liability incurred by such member or past member, and an official assignee or a receiver under any law relating to insolvency shall not be entitled to, or have any claim on, such share or interest.

1. (1) The Government may, by notification in the Official Gazette, remit in respect of any class of co-operative societies -
   • (a) the stamp duty chargeable under any law for the time being in force in respect of any instrument executed by or on behalf of a co-operative society, or by an officer or member thereof and relating to the business of such society, or any class of such instruments or in respect of any award or order made under this Act, in cases where, but for such remission, the co-operative society, officer, or member, as the case may be, would be liable to pay such stamp duty: Provided that nothing in this clause shall apply in respect of bills of exchange, cheques, promissory notes, bills of lending, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts;
   • (b) any fee payable under any law for the time being in force relating to registration of documents or court fees:
   • (c) any tax, surtax, duty or surcharge levied or imposed -
     • (i) by or under any law for time being in force; or
     • (ii) by any local authority.
2. (2) Nothing in clauses (b) and (c) of sub-section (1) of Section 17 of the Registration Act, 1908 (Central Act 16 of 1908) shall apply to -
   • (a) any instrument relating to shares in a co-operative society, notwithstanding that the assets of the society consist in whole or in part of immovable property; or
   • (b) any debentures issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property except it so far as it entitles the holder to the securing afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
   • (c) any endorsement upon or transfer of any debenture issued by any such society.