Vidhi Codex

The Sikkim Co-operative Societies Act, 1978

The Sikkim Coperative Socities Act, 1978

General1978125 sections

This law provides a comprehensive legal framework for the formation, registration, management, and regulation of co-operative societies across the state of Sikkim. It applies to primary agricultural credit societies, urban co-operative banks, apex state co-operative institutions, self-help groups, and their individual members. The legislation details rules governing member rights, shareholding limits, executive committee elections, financial audits, dispute resolution, and state government oversight. By establishing clear operating guidelines and institutional governance, this Act matters because it promotes democratic economic participation, strengthens rural credit structures, safeguards member savings, and encourages organized community development through self-reliance and mutual assistance across Sikkim.

Start reading →Read full ActSections
  1. 1. Short title, extent and commencement
  2. 2. Definitions
  3. 3. Registrar
  4. 4. Societies which may be registered
  5. 5. Conditions of registration
  6. 6. Application for registration
  7. 7. Power of the Registrar to decide certain questions
  8. 8. Registration
  9. 8A. Insertion of new Section 8A
  10. 9. Registration Certificate
  11. 10. Registered Societies to be bodies corporate
  12. 11. Amendment of bye-laws of a Society
  13. 12. Registrar's power to direct amendment of bye-laws
  14. 13. When amendments of bye-laws come into force
  15. 14. Change of name
  16. 15. Change of Liability
  17. 16. Amalgamation, transfer of assets and liabilities and division of societies
  18. 17. Power to direct amalgamation and reorganisation
  19. 18. Liability of resultant society to be limited
  20. 19. Cancellation of registration certificates of societies in certain cases
  21. 19A. Insertion of new Section 19A
  22. 20. Amendment of Section 20
  23. 21. Amendment of Section 21
  24. 22. Amendment of Section 22
  25. 24. Votes of members
  26. 25. Manner of exercising vote
  27. 26. Nominal members
  28. 26A. Insertion of new section 26 A
  29. 27. Member not to exercise rights till due payment made
  30. 28. Restrictions on holding of shares
  31. 29. Restriction on transfer of shares or interest
  32. 29A. Insertion of new section 29A
  33. 30. Transfer of interest on death of a member
  34. 31. Liability of past members and estate of deceased member
  35. 32. Final authority of society
  36. 33. Management of Society
  37. 34. Annual general meeting
  38. 35. Special general meeting
  39. 36. Election of members of committee
  40. 37. Term of office of a Committee
  41. 38. Disqualifications to Act as an officer of a society
  42. 39. Representation of weaker section on the committee
  43. 40. Nomination of member to the committee
  44. 41. Supersession of committee
  45. 42. Securing possession of records etc.
  46. 43. Acts of societies not to be invalidated by certain defects
  47. 44. First charge of a society on certain movable assets of member for the amount due by him
  48. 45. Noting of charge or mortgage created in the Record of Rights
  49. 46. Registration to constitute notice
  50. 46A. Registration in the records of the Sub
  51. 47. Restriction on disposal of property charged or mortgaged to a society
  52. 48. Charge and set off in respect of shares or interest of a member
  53. 49. Shares, interest, etc., not liable to attachment
  54. 50. Register of members
  55. 51. Admissibility of copy of entry as evidence
  56. 52. Exemption from compulsory registration of instruments
  57. 53. Exemption from certain taxes, fees and duties
  58. 54. Deduction from salary to meet society's claim in certain cases
  59. 55. State aid to societies
  60. 56. Registrar's power to determine terms of employment in societies
  61. 57. Funds not to be divided by way of profit
  62. 58. Contribution to charitable purpose
  63. 59. Contribution to Co-operative Education Fund
  64. 60. Investment of funds
  65. 61. Restrictions on loans
  66. 62. Restrictions on borrowings
  67. 63. Restrictions on other transactions with non-members
  68. 64. Audit of societies
  69. 64A. Insertion of section 64A
  70. 65. Inspection of societies
  71. 66. Inquiry by Registrar
  72. 67. Inspection of books of Indebted Societies
  73. 68. Costs of inquiry
  74. 69. Account of costs
  75. 70. Surcharge
  76. 71. Suspension of officer or employee of society
  77. 72. Reference of dispute to arbitration
  78. 73. Power of State Co-operative Bank to proceed
  79. 74. Powers of State Co-operative Bank to proceed
  80. 75. Winding up of Societies
  81. 76. Liquidator
  82. 77. Disputes which may be referred to arbitration
  83. 78. Priority of contributions assessed by Liquidator
  84. 79. Powers of Registrar to cancel registration of a co-operative society
  85. 80. Enforcement of charge
  86. 81. Execution of orders, etc.
  87. 82. Execution of orders of liquidator
  88. 83. Attachment before award
  89. 84. Registrar or person empowered by him to be civil court for certain purposes
  90. 85. Recovery of sums due to Government
  91. 86. Applicability of Chapter
  92. 87. Registration of State Co-operative Bank
  93. 88. Business which the State Co-operative Bank may transact
  94. 89. Government share capital
  95. 90. Committee
  96. 91. Taking over the business of the State Bank of Sikkim
  97. 92. Issue of bonds
  98. 93. Guarantee by Government of principal and interest on the bonds
  99. 94. Other Guarantee by Government
  100. 95. Right of primary agricultural credit society or the State Co-operative Bank to pay prior debts to Mortgagor
  101. 96. Power of the State Co-operative Bank to Supervise
  102. 96A. Allotment of shares and voting rights of the members of the State Co-operative Bank
  103. 97. Insured Co-operative Banks
  104. 98. Appeals
  105. 99. Revision
  106. 100. Interlocutory powers
  107. 101. Offences and Penalties
  108. 102. Offences by companies
  109. 103. Cognizance of Offences
  110. 104. Address of a society
  111. 105. Copy of the Act, rules and bye-laws to be open to inspection
  112. 106. Order to be pronounced
  113. 107. Procedure for settlement of disputes and power of the Registrar or any other person to whom a dispute is referred for decision
  114. 108. Powers of civil court
  115. 109. Bar of Jurisdiction of courts
  116. 110. Application of Limitation Act
  117. 111. Power to exempt class of societies
  118. 112. Service of notice under the Act
  119. 113. Notice necessary in suits
  120. 114. Indemnity
  121. 115. Companies Act, 1956
  122. 116. Powers to make rules
  123. 117. Amendment of Section 117
  124. 118. Repeal
  125. 119. Power to remove difficulties

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