Offences and Penalties

(1) (a) No person, other than a society, shall carry on business under any name or title of which the word "co-operative", or its equivalent in any Indian language, is part, without the sanction of the Government. (b) Any person carrying on any trade or business in contravention of sub-section (1) shall be punished with fine which may extend to two hundred rupees and in the case of a continuing offence with a fine of Rs. 5 for each day on which the offence is continuing after conviction thereof: Provided always that nothing in this section shall apply to the use by any person or his successor in interest of any name or title under which he carried on his business with the word "co-operative", or its equivalent in any Indian language, at the date of which the Sikkim Co-operative Societies Act, 1955 came into operation. (2) Any member or past member or the nominee, heir or legal representative of a deceased member of a society who contravenes the provisions of section 48 by disposing of any property in respect of which the society is entitled to have a first charge under that section or any other act to the prejudice of such claim shall be punishable with fine which may extend to two hundred rupees. (3) The committee of a society or an officer or member thereof failing to furnish any return or, furnishing false information, or any person wilfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions of this Act or wilfully does not furnish any information required from him by a person authorised in this behalf under the provisions of this Act, shall be punishable with fine which may extend to two hundred rupees. (4) Any employer, who, without sufficient cause, fails to deduct or fails to pay to a society the amount deducted by him under sub-section (2) of section 54 within a period of seven days from the date on which such deduction is made shall be punishable with fine which may extend to five hundred rupees and in the case of a continuing default with a further fine of Rs. 15 for each day on which the offence continues after conviction thereof. (5) If default is made in complying with provisions of section 18, sub-section (1) of section 33, section 37, section 60, section 61, section 62, the society, and every officer or member of committee of the society who is default shall be punishable with fine which may extend to two hundred rupees. (6) If any person - (i) after ceasing to be a member under sub-section (2) of section 22 acts as a member; or (ii) exercises the rights of member in contravention of the provisions of section 25 shall be punishable with fine which may extend to two hundred rupees. (7) If any person collecting the share money for a society in formation does not deposit the same in the State Co-operative Bank within fourteen days of its receipt, he shall be punishable with fine which may extend to five hundred rupees. (8) If any person collecting the share money for a society in formation makes use of the funds so raised for conducting any trade or business in the name of the society to be registered or otherwise, he shall be punishable with fine which may extend to five hundred rupees. (9) If any officer or member of a society misappropriates or unauthorisedly or illegally keeps any money belonging to that society he shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to one thousand rupees, or with both.