The Maharashtra Cooperative Societies Rule 1961
Chapter II - Registration
Rule No 3 to 18C
1 Rule No 3. [****]
2 Rule No 4. Application for registration and registration fees
(I) Every application for
registration of a society under Section 8 shall be made in Form 'A' in Marathi, Hindi
or English, and shall, subject to the provisions of sub-section (2) of Section 8 and
sub-rules (2) and (3), be signed by the applicants and shall, in addition to four
copies of the proposed bye-laws of the society, be accompanied by:
(a) a list of persons who have contributed to the share capital, together
with the amount contributed by each of them, and the entrance fee paid by
them;
(b) a certificate from the Bank or Banks stating the credit balance therein
in favour of the proposed society;
(c) be economically sound and, where the scheme envisages the holding of
immovable property by the society, the description of such property proposed to
be purchased, acquired or transferred to the society;
(d) such other documents as may be specified in the model bye-laws, if
any, framed by the Registrar;
3 (e) the registration fees at the following rates, namely; —
4 [
4 [
| (i) Agricultural Societies | (a) Marketing Societies | Rs. 1250 |
| (b) Other Agricultural Societies | Rs. 150 | |
| (ii) Crop Protection Societies | Rs. 250 | |
| (iii) Lift Irrigation Societies | Rs. 250 | |
| (iv) Consumers' Societies | (a) Canteens | Rs. 500 |
| (b) (i) Rural Area | Rs. 150 | |
| (ii) Urban Area | Rs. 250 | |
| Wholesale Consumer Stores | Rs. 2500 | |
| Departmental Consumer Stores | Rs. 1600 | |
| (v) Co-operative Banks | (a) Central Bank | Rs. 5000 |
| (b) Other Banks (excluding Salary Earners' Co-operative Societies) | Rs. 2500 | |
| (c)Salary Earners' Co-operative Societies | Rs. 500 | |
| (vi) Farming Societies | (a) Collective Farming Societies | Rs. 150 |
| (b) Joint Farming Societies | Rs. 150 | |
| (c) Dairy Farming Societies | Rs. 150 | |
| (vii) Housing Societies (excluding societies of Backward Class persons) | (a) Tenant Ownership Housing Societies | Rs. 2500 |
| (b) Tenant Co-partnership Housing Societies | Rs. 2500 | |
| (c) Other Housing Societies | Rs. 2500 | |
| (viii) Housing Societies of Backward Class Persons | Rs. 50 | |
| 5 (viii-a) Housing Societies of Lok Awas Yojana | Rs. 50 | |
| (ix) Processing Societies | (a) Agricultural Processing Societies (excluding Sugar Factories and Spinning Mills) | Rs. 1250 |
| (b) Industrial Processing Societies | Rs. 500 | |
| (x) Co-operative Sugar Factories | 25,000 | |
| (xi) Co-operative Spinning Mills | 15,000 | |
| (xii) Producers' Societies | (A) Industrial Producers Societies | Rs. 150 |
| (xiii) Resources Societies | (a) Credit Resource Societies (excluding Salary Earners* Societies) | |
| (i) Agriculture | Rs. 150 | |
| (ii) Urban Credit Societies | Rs. 250 | |
| (b) Non-credit Resource Societies | Rs. 150 | |
| (c) Service Resource Societies | Rs. 150 | |
| (xiv) General Societies | (a) Social | Rs. 250 |
| (b) Commercial | Rs. 1250 | |
| (xv) Societies not falling under any of the above entries | Rs. 500 |
(2) Where any member of a society to be registered is a registered society, a
member of the committee of such registered society shall be authorised by that
committee by a resolution to sign the application for registration and the bye-laws on
its behalf, and a copy of such resolution shall be appended to the application.
(3) Where any member of a society to be registered is a firm, company, other
corporate body, society registered under the Societies Registration Act. 1860, or
local authority or public trust registered under any law for the time being in force for
the registration of such trusts, then such firm, company, corporate body, society,
local authority or public trust, as the case may be, shall duly authorise any person to
sign the application for registration and the bye-laws on its behalf, and a copy of the
resolution giving such authority shall be appended to the application.
(4) The application shall be sent to the Registrar by registered post or delivery
by hand.
Rule No 5. Registration
(1) On receipt of an application under Rule 4, the Registrar shall
enter particulars of the application in the register of application to be maintained in
Form 'B', give a serial number to the application and issue a receipt in
acknowledgement thereof.
(2) The Registrar may give, wherever necessary, opportunity to the promoters
to modify the proposed bye-laws before finally registering the society or rejecting the
application for registration of the society.
(3) On registering a society and its bye-laws under sub-section (1) of Section 9,
the Registrar shall as soon as may be, notify the registration of the society in the
Official Gazette and grant to the society, a certificate of registration signed by him
and bearing his official seal and containing the registration number of the society,
and the date of its registration. The Registrar shall also furnish the society with a
certified copy of the bye-laws approved and registered by him.
Rule No 6. Form of report under Section 9(2)
The report to be made by the Registrar
to the State Government under sub-section (2) of Section 9 shall be in Form 'C'
Rule No 7. Refusal of Registration
Where any society does not furnish the information
in regard to the society as required by the Registrar or fulfil any of the conditions laid
down in the Act or these rules, the Registrar may refuse to register that society.
Rule No 8. Matters in respect of which Registrar may direct society to make bye-laws or society may make by-laws
(1) The Registrar may require a society to make
bye-laws in respect of all or any of the following matters, that is to say—
(a) the name of the society and address of the society and its branches;
(b) the area of operation;
(c) the objects of the society;
(d) the manner in which and the limit up to which the funds of the society may be raised, the maximum share capital which any one member may hold and the purpose to which the funds would be made applicable;
(e) the terms and qualifications for admission to membership;
(f) the privileges, rights, duties and liabilities of members including nominal, associate and sympathiser members;
(g) the consequences of default in payment of any sum due by a member;
(h) conditions regarding sale or disposal of produce of members, wherever applicable;
(i) in the case of credit societies -
(k) in the case of a composite society, that is to say, society having both credit and non-credit functions, matters referred to in clauses (i) and
(l) the mode of holding meetings, of the general body and of the committee;
(m) the procedure for expulsion of members;
(n) the manner of making, altering and abrogating bye-laws;
(o) the mode of appointment either by election or otherwise and removal of members of the committee and other officer, if any, their duties and powers;
(p) the Chairman's powers, duties and functions and his removal on his losing support of the majority;
(q) the method of recruitment, the conditions of service and the authority competent to fix, revise or regulate the scale of pay and allowances of salaried officers and servants of the society and the procedure to be followed in the disposal of disciplinary cases against them;
(r) the mode of custody and investment of funds and mode of keeping the accounts and records;
(s) the disposal of net profits;
(t) the manner in which penalty should be levied on a member who is found to be guilty of breach of bye-laws;
(u) appointment of a provisional committee, where necessary;
(v) the mode of appointment and removal of committee and its powers and duties;
(w) the mode of convening annual and special general meetings, issue of notices, and the business which may be transacted thereat;
(x) in the event of winding up of the society, the purpose for which surplus assets, if any, shall be utilised;
(y) the conduct of elections to the committee and other bodies of the society as provided in the bye-laws, including the number of members to be elected by different constituencies and appointment of Returning Officer;
(z) any other matters incidental to the management of its business.
(b) the area of operation;
(c) the objects of the society;
(d) the manner in which and the limit up to which the funds of the society may be raised, the maximum share capital which any one member may hold and the purpose to which the funds would be made applicable;
(e) the terms and qualifications for admission to membership;
(f) the privileges, rights, duties and liabilities of members including nominal, associate and sympathiser members;
(g) the consequences of default in payment of any sum due by a member;
(h) conditions regarding sale or disposal of produce of members, wherever applicable;
(i) in the case of credit societies -
(i) the maximum loan admissible to a member;
(ii) the maximum rates of interest on loans to members;
(iii) the conditions on which loans may be granted to members and penalties for misapplication of loans so advanced;
(iv) the procedure for granting extension of time for the repayment of loans and advances;
(v) the consequences of default in payment of any sum due;
(vi) the circumstances under which a loan may be recalled;
(j) in the case Of non-credit societies, the mode of conducting business such
as manufacture, purchase, sale, stock taking and other like matters;
(ii) the maximum rates of interest on loans to members;
(iii) the conditions on which loans may be granted to members and penalties for misapplication of loans so advanced;
(iv) the procedure for granting extension of time for the repayment of loans and advances;
(v) the consequences of default in payment of any sum due;
(vi) the circumstances under which a loan may be recalled;
(k) in the case of a composite society, that is to say, society having both credit and non-credit functions, matters referred to in clauses (i) and
(l) the mode of holding meetings, of the general body and of the committee;
(m) the procedure for expulsion of members;
(n) the manner of making, altering and abrogating bye-laws;
(o) the mode of appointment either by election or otherwise and removal of members of the committee and other officer, if any, their duties and powers;
(p) the Chairman's powers, duties and functions and his removal on his losing support of the majority;
(q) the method of recruitment, the conditions of service and the authority competent to fix, revise or regulate the scale of pay and allowances of salaried officers and servants of the society and the procedure to be followed in the disposal of disciplinary cases against them;
(r) the mode of custody and investment of funds and mode of keeping the accounts and records;
(s) the disposal of net profits;
(t) the manner in which penalty should be levied on a member who is found to be guilty of breach of bye-laws;
(u) appointment of a provisional committee, where necessary;
(v) the mode of appointment and removal of committee and its powers and duties;
(w) the mode of convening annual and special general meetings, issue of notices, and the business which may be transacted thereat;
(x) in the event of winding up of the society, the purpose for which surplus assets, if any, shall be utilised;
(y) the conduct of elections to the committee and other bodies of the society as provided in the bye-laws, including the number of members to be elected by different constituencies and appointment of Returning Officer;
(z) any other matters incidental to the management of its business.
(2) A society may make bye-laws for all or any of the following matters, that is
to say -
(a) the circumstances under which withdrawal from membership may be
permitted;
(b) the procedure to be followed in cases of withdrawal, ineligibility and death of members;
(c) the conditions, if any, under which the transfer of share or interest of a member may be permitted;
(d) the method of appropriating payments made by members from whom moneys are due;
(e) the authorisation of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the society;
(f) the constitution and maintenance of various funds as required to be maintained under the provisions of the Act, rules and bye-laws;
(g) constitution of representative body consisting of delegates of members of the society and the mode of election of such delegates to exercise the powers of the general body of members and to specify the powers which may be exercised by such smaller body.
(b) the procedure to be followed in cases of withdrawal, ineligibility and death of members;
(c) the conditions, if any, under which the transfer of share or interest of a member may be permitted;
(d) the method of appropriating payments made by members from whom moneys are due;
(e) the authorisation of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the society;
(f) the constitution and maintenance of various funds as required to be maintained under the provisions of the Act, rules and bye-laws;
(g) constitution of representative body consisting of delegates of members of the society and the mode of election of such delegates to exercise the powers of the general body of members and to specify the powers which may be exercised by such smaller body.
Rule No 9. First bye-laws of a society
When a society has been registered the bye-laws of
the society as approved and registered by the Registrar shall be the bye-laws of the
society.
Rule No 10. Classification and sub-classification of societies
(1) After registration of a society, the Registrar shall classify the society into one or other of the following
classes and sub-classes of societies prescribed below according to the principal object
provided in its bye-laws:
| Class 1 | Sub-Class 2 | Examples of societies falling in the class or sub-class, as the case may be 3 |
|---|---|---|
| 6 [1 Agricultural Society | (a) Marketing Society | All Purchase and Sale Unions and Marketing Societies of Agricultural Produce |
| (b) Other Agricultural Societies | Dairy and Cattle Breeding Societies | |
| 1A Crop Protection Society | ... | ... |
| IB Life Irrigation Society | ... | ... ] |
| 2 Consumers' Society | ... | Stores and Canteens |
| 3 Co-operative Bank | (a) Central Bank | District Central Banks 7 [***] |
| (b) Other Banks | Urban Banks 7 [***] | |
| 8 [3A. Land Development Bank having provisions in their bye-laws to advance loans to Co-operative Societies] | ||
| 4 Farming Society | (a) Collective Farming Society | Farming societies where major area of lands is acquired from outside agency for cultivation by members. |
| (b) Joint Farming Society | Societies where the major area of land brought together for cultivation is held by members. | |
| 9 [(c) Dairy Farming Society | Farming societies undertaking dairy activities complimentary to their arable farming activities or vice versa. | |
| 5 Housing Society | (a) Tenant Ownership Housing Society | Housing Societies where land is held either on lease-hold or freehold basis by Societies and houses are owned or are to be owned by members. |
| (b) Tenant Copartnership Housing Society | Housing Societies which hold both land and buildings either on leasehold or free-hold basis and allot them to their members. | |
| (c) Other Housing Societies | House Mortgage Societies and House Construction Societies | |
| 6 Processing Society | (a) Agricultural Processing Society | Societies, which process agricultural produce like Cooperative Sugar Factories and Oil Mills. |
| (b) Industrial Processing Society | Wool, Processing and, Tanners' Societies | |
| 7 Producers' Society | (a) Industrial Producers' Society | Weavers', and Carpenters' Societies |
| (b) Labourers' Industrial Society | Forest Labourers' Societies and Labour Contract Societies | |
| (c) 10 [*****] | ||
| 8 Resource Society | (a) Credit Resource Society | 11 [Agricultural Credit, Thrift, Urban-Credit and Salary Earners' Societies] |
| (b) Non-Credit Resource Society | Seeds and Implements and Agricultural Requisites Societies | |
| (c) Service Resource Society | Service Co-operative and Multipurpose Co-operative Societies, | |
| 9 General Society | (a) Social | Better Living Societies and Education Societies |
| (b) Commercial | Insurance and Motor Transport Societies | |
| (c) Other | Not fallings in either of the above sub-classes |
(2) If the Registrar alters the classification of a society from one class of society
to another, or from one sub-class thereof to another, he shall issue to the society a
copy of his order as in the case of an amendment of the bye-laws.
Rule No 11. Maintenance of register
(1) The register to be maintained by the Registrar under sub-section (4) of Section 9 shall be in Form 'D'
(2) The Registrar shall divide the register into parts, one for each district in the
State. A society shall be registered in that part, for a district in which its head office
is situate.
(3) The Registrar shall assign for each district and each class or sub-class of
societies, a code symbol, for giving registration numbers to the societies and the
societies shall be registered from the dates specified by him.
Rule No 12. Amendment of bye-laws
(1) Subject to the provisions of this rule, byelaws
of a society may be amended by passing a resolution at a general meeting of
the society held for that purpose.
(2) The society shall give due notice in accordance with its bye-laws to all the
members for considering any amendment thereof.
(3) An amendment shall be deemed to have been duly passed, if a resolution in
that behalf is passed at a general meeting by not less than two-thirds of the
members present thereat, and voting.
(4) After the resolution is passed, a copy thereof shall, within a period of two
months from the date of the meeting at which the resolution was passed, be
furnished to the Registrar along with, —
(a) a copy of the relevant bye-laws in force with amendments proposed to be
made in pursuance of the resolution, together with reasons justifying such
amendments.
(b) four copies of the text of the bye-laws as it would stand after amendment, signed by the officers duly authorised in this behalf by the committee of the society;
(c) a copy of the notice given to the members of tne society of the proposal to amend the bye-law;
(d) such other information as may be required by the Registrar.
(b) four copies of the text of the bye-laws as it would stand after amendment, signed by the officers duly authorised in this behalf by the committee of the society;
(c) a copy of the notice given to the members of tne society of the proposal to amend the bye-law;
(d) such other information as may be required by the Registrar.
(5) On receipt of a copy of the resolution and other particulars referred to in
sub-rule (4), the Registrar shall examine the amendment proposed by the society
and if he is satisfied that the amendment is not contrary to the Act or the rules and
is in the interest of the society and co-operative movement, he may register the
amendment and issue to the society a copy of the amendment certified by him under
sub-section (2) of Section 13. Where the Registrar is of opinion that the proposed
amendment may be accepted subject to any modification, he may indicate to the
society such modification after explaining in writing
his reasons therefor.
Rule No 13. Manner of calling upon society to make amendment to bye-laws
(1)Subject to the provisions of this rule, the Registrar may by serving a notice in Form
'E' call upon a society to make such amendment to the bye-laws of the society as he
considers to be necessary or desirable in its interest, within a period not exceeding
two months from the date of service of notice. The notice shall state the exact
amendment which the society should make.
(2) For the purposes of sub-section (2) of Section 14, the Registrar shall send a
copy of the notice to the State Federal Society duly notified under that sub-section
with a request to offer its comments on the amendment within such time as may be
specified by him. If the State Federal Society fails to offer its comments within the
specified time, it may be presumed by the Registrar that the said society has no
objection to the amendment.
(3) If after considering the comments of the State Federal Society, if any, the
Registrar considers that there is no objection to registering the amendment, he shall
send a written notice in Form 'F' by registered post to the registered address of the
society calling upon it to show cause in writing, or through a properly authorised
representative to appear before the Registrar on the date specified in the notice, as
to why the proposed amendment should not be registered within the time specified
in the notice in Form 'E'
(4) After the expiry of the period specified in the notice in Form 'E' and after
considering the reply, if any, of the society and the views, if any, of the State Federal
Society on such reply, the Registrar may, after considering the objections of the
society (if any) to the proposed amendment, register the amendment.
Rule No 14. Change in name of society
(1) The name of a society may be changed under Section 15 so however that it does not refer to any caste or religious denomination
and is not inconsistent with the objects of society.
(2) Every change in the name of a society shall be made by an amendment of its bylaws
and shall be notified in the Official Gazette.
(3) After the change in the name is approved by the Registrar, the society shall send
the original registration certificate for amendment to the Registrar, who shall return
the same to the society duly amended.
(4) The Registrar shall enter the new name in the register of societies maintained by him.
Rule No 15. Change of liability:
(1) The change of liability of a society from unlimited to
limited, and vice versa, or in terms of multiple of share capital, shall be secured by
passing a resolution in that behalf at a general meeting of the society indicating in
clear terms the manner of changing the liability. The society shall give thirty days'
notice in writing of such meeting to all its members and creditors and shall furnish
them with copies of the resolution proposed to be moved at the meeting. After the
resolution is duly moved and passed, a copy thereof shall be sent to the Registrar
within thirty days of its passing.
(2) Every notice to be given by the society under sub-section (2) of Section 16
shall be sent by post under certificate of posting or otherwise to the address of
each of its members and creditors as recorded in the books of the society. A copy of
such notice shall be exhibited on the notice-board of the society and a copy shall also
be sent to the Registrar for exhibition on the notice board in his office: and
thereupon, notice of the resolution to change the form or extent of its liability shall
be deemed to have been duly given to all its members and creditors, notice not
being sent to their correct address or notice not being received by them,
notwithstanding.
(3) For the purpose of determining the claims of a member under clause (b) of sub-section (4) of Section 16,
the value of a share of a member in a society shall be
ascertained as follows: -
(a) In the case of a society with unlimited liability, the value of a share
shall be the actual amount received by the society in respect of such share;
(b) In the case of a society with limited liability, the value of a share shall be the amount arrived at by a valuation based on the financial position of the society as shown in the last audited balance sheet, provided that it shall not exceed the actual amount received by the society in respect of such share.
(b) In the case of a society with limited liability, the value of a share shall be the amount arrived at by a valuation based on the financial position of the society as shown in the last audited balance sheet, provided that it shall not exceed the actual amount received by the society in respect of such share.
(4) Any member or creditor desiring to exercise his option under sub-section
(2) of Section 16 shall inform the society accordingly in writing, and when he does
not propose to withdraw his entire shares or deposits, the member or creditor shall
clearly indicate in writing the extent of his withdrawal. The society shall examine and
draw up a scheme for orderly payment of all claims in an equitable manner including
shares, the value of which shall be ascertained in accordance with the provisions of
sub-rule (3). The scheme may also provide for settlement of claims by mutual
agreement. Where the Registrar does not approve the scheme on the ground of
impracticability or undesirability, the resolution passed by the society under sub-rule
(I) shall be ineffective, and the form and extent of liability of a society shall not be
deemed to be changed in accordance with resolution passed aforesaid.
(5) After the Registrar approves the scheme, the society shall make payments
to members and creditors as provided in clause (b) of sub-section (4) of Section 16,
make a report to that effect to the Registrar and furnish the Registrar with a
proposal to amend the by-laws of the society duly passed in that behalf. On receipt
of the proposal, the Registrar shall register the amendment in accordance with the
provisions of Section 13.
Rule No 16. Amalgamation, transfer of assets and liabilities, division or conversion of societies
(1) Every society desiring to effect amalgamation, transfer of assets
and liabilities, division or conversion shall make an application to the Registrar in
that behalf, giving full details about such amalgamation, transfer, division or as the
case may be, conversion.
(2) On receipt of such application, the Registrar may, after examining the
details furnished in the application and other particulars which he may call upon the
society to furnish, give his approval to the amalgamation, transfer, division or
conversion, if he considers such amalgamation, transfer, division or conversion, as
the case may be, to be in the interest of the society,
(3) After the receipt of Registrar's approval under sub-rule (2), the society
shall convene a special general meeting by giving notice of at least 15 clear days to
all its members and creditors and pass a resolution for amalgamation, transfer of
assets and liabilities, division or conversion, as the case may be, by two-third
majority of the members present and voting at the meeting. The resolution so
passed shall contain the purpose and the full scheme indicating how the proposed
amalgamation, transfer, division or conversion would be useful to the society and be
given effect to. Where the scheme does not involve transfer of liabilities of the
society to another society, a statement to that effect shall be made in the application
to be made under sub-rule (1). Where the scheme involves transfer of liabilities of
the society, the society shall give written notice in Form 'G' to all its members,
creditors and other persons whose interests are likely to be affected by such
transfer. The notice shall also be published in at least one newspaper in circulation in
the district in which the society's office is situated and a copy thereof shall be
exhibited on the notice-board in the society's and Registrar's office.
12 [Provided that the State Government may, in the case of any society, dispense
with the giving of such notice, regard being had to the extent of liabilities, the
financial position of the society and its members and other relevant factors
pertaining to such society.]
(4) Within one month from the date of notice referred to in sub-rule (3), the
members, creditors and other persons whose interests are likely to be affected by
the transfer of the society's liabilities may exercise their option as required by clause
(f) of the provison to sub-section (0 of Section 17 failing which they shall be deemed
to have assented to the transfer of liabilities of the society to another society.
(5) The society shall meet in full and otherwise satisfy all claims of members
and creditors and other interested persons who exercise the option.
(6) The society shall submit a report to the Registrar of the action taken by it
and request him to give effect to its decision for amalgamation, transfer, division or
conversion by registering the amalgamated or converted society or the new society,
as the case may be, and canceling the registration of the societies which have been
amalgamated, divided or converted.
(7) On receipt of the report from the society under sub-rule (6), the Registrar
shall, after satisfying himself that the procedure has been properly followed, register
the amalgamated, divided or converted societies and cancel the registration of the
societies which have been amalgamated, divided or converted.
Rule No 17. Direction by Registrar for amalgamation, division and reorganisation of societies
(1) Before issuing any order under sub-section (1) of Section 18
providing for the amalgamation, division or reorganisation of any society or societies,
the Registrar shall prepare a draft scheme in respect of such amalgamation, division
or reorganisation stating in particular the manner in which the new committee or
committees, of the society or societies resulting from such amalgamation, conversion
or reorganisation shall be constituted and the by-laws which such society or societies
shall follow. The Registrar shall then consult such federal society as may be notified
by the State Government in the Official Gazette, and after considering the
suggestions, if any, that will be made by such federal society, shall send a copy of
the draft of the order proposed to be issued by him under sub-section (i) of Section
18, to the society or each of the societies concerned calling upon it or them to invite
objections or suggestions from any member or class of members thereof or fro n any
creditor or class of creditors and to submit such objections and suggestions together
with its own or their own suggestions and objections within a period of not less than
two months from the date on which the copy of the draft aforesaid was received by it
or them.
(2) The Registrar shall consider all such suggestions and objections and make
such modifications in the draft order as may seem to him desirable in the light of
those suggestions or objections and then issue a final order under sub-section (I) of
Section 18.
(3) Any member or creditor of each of the societies to be amalgamated, divided
or reorganised, who has objected to the scheme of amalgamation, division or
reorganisation within the period specified in sub-rule (i), may apply to the Registrar
for payment of his share or interest, if he be a member, and the amount in
satisfaction of his dues, if he be a creditor. Such application shall be separate and distinct from the objection or
suggestion which he may have submitted to the society or the Registrar under clause
(b) of sub-section (2) of Section 18. It shall be competent for the Registrar to
nominate an officer not below the rank of a Deputy Registrar to investigate such
applications and to determine the payments required to be made to the members or
creditors, as the case may be.
(4) Subject to the provisions of the Act, the rules and the by-laws, the Registrar
may by order require the society concerned to meet in full or satisfy otherwise all
due claims of the members and creditors and thereupon the society shall be bound
to meet in full or satisfy otherwise all due claims of the members and creditors within
such time as may be specified by the Registrar in the order.
Rule No 18. Reconstructions of a society
(1) An application for reconstruction of a
society under Section 19 may be made, in Form 'H' On receipt of such application,
the Registrar may. taking into consideration the compromise or arrangement for
reconstruction of the Society, if he thinks fit, prepare a draft order indicating—
A copy of the draft order shall be exhibited on the notice board of the society and a copy thereof shall be exhibited on the notice board of the Registrar's Office inviting objections and suggestions from all those interested within a specified time, which shall not exceed one month.
(i) the manner in which the amounts payable by the society to its creditors
should be paid and the amounts recoverable from its debtor-members should be
recovered;
(ii) the manner in which the share capital, if any, of such members should be reduced;
(iii) the manner in which the scheme of reconstruction should be implemented and
(iv) the manner in which the by-laws of the society will stand amended in order to give effect to the scheme of reconstruction.
(ii) the manner in which the share capital, if any, of such members should be reduced;
(iii) the manner in which the scheme of reconstruction should be implemented and
(iv) the manner in which the by-laws of the society will stand amended in order to give effect to the scheme of reconstruction.
A copy of the draft order shall be exhibited on the notice board of the society and a copy thereof shall be exhibited on the notice board of the Registrar's Office inviting objections and suggestions from all those interested within a specified time, which shall not exceed one month.
(2) After taking into consideration the objections and suggestions (if any)
received, the Registrar may issue am order approving such reconstruction or staying
further proceedings in respect of such reconstruction. On issue of an order approving
the reconstruction, the society shall stand reconstructed and the by-laws of the
society shall be modified to that effect and to that extent.
13 [Rule No 18A. Conditions for realising the assets and liquidating the liabilities of the de-registered society by the Official Assignee:
(1) The Official Assignee shall work under the general control, superintendence and directions of the Registrar
(2) He shall have the following powers for the purposes of realising the assets
and for liquidating the liabilities of society which is de-registered under the
provisions of subsection (i) of Section 21 A. namely.—
(a) he shall have powers to institute and defend any suit and other legal
proceedings, civil and criminal, on behalf of the de-registered society in the
name of his office;
(b) to carry on the business of the society, so far as may be necessary for
the beneficial completion of the de-registration proceedings;
(c) to sell such immovable and movable property and actionable claims of
the de-registered society generally by public auction or in exceptional cases by
private contract with prior approval of the Registrar;
(d) to investigate all the claims against the de-registered society and
subject to the provisions of the Act, to decide questions of priority arising out of
such claims and to pay any class or classes of creditors in full or retable
according to the amount of such debts. However, the Official Assignee shall pay
all the liabilities in the following priority, namely—
(i) his salaries, remuneration, allowances and other claims;
(ii) wages and other payments to be made to the employees of the deregistered society including arrears;
(iii) expenses required for beneficial completion of de-registration proceedings;
(iv) taxes, charges, fees and revenues, etc. payable under any other law for. the time being in force and such other dues which are recoverable as arrears of land revenue;
(v) any dues payable under the decree of any Court;
(vi) deposits;
(vii) loans payable to Government of India;
(viii) loans payable to the State Government;
(ix) any other dues payable to the Government of India;
(x) any other dues payable to the State Government;
(xi)loans guaranteed by the Government of India;
(xii) loans guaranteed by the State Government;
(xiii) secured loans;
(xiv) unsecured loans;
(xv) shares of Government of India;
(xvi) shares of State Government;
(xvii) shares of any financial institution:
(xviii) shares of Co-operative Societies;
(xix) shares of other body corporates;
(xx) shares of members.
(ii) wages and other payments to be made to the employees of the deregistered society including arrears;
(iii) expenses required for beneficial completion of de-registration proceedings;
(iv) taxes, charges, fees and revenues, etc. payable under any other law for. the time being in force and such other dues which are recoverable as arrears of land revenue;
(v) any dues payable under the decree of any Court;
(vi) deposits;
(vii) loans payable to Government of India;
(viii) loans payable to the State Government;
(ix) any other dues payable to the Government of India;
(x) any other dues payable to the State Government;
(xi)loans guaranteed by the Government of India;
(xii) loans guaranteed by the State Government;
(xiii) secured loans;
(xiv) unsecured loans;
(xv) shares of Government of India;
(xvi) shares of State Government;
(xvii) shares of any financial institution:
(xviii) shares of Co-operative Societies;
(xix) shares of other body corporates;
(xx) shares of members.
(e) to make any compromise or arrangement, with creditors or persons
claiming to be the creditors of having or alleging themselves to have any claims,
present or future, whereby he may be rendered liable;
(f) to compromise all calls, or liabilities to calls, and debts and liabilities
capable of resulting in debts, and all claims present or future, certain or
contingent, subsisting or supposed to subsist between him and contributory or
alleged contributory or other debtors or person apprehending liability to him and
all questions in any way relating to or affecting the assets of de-registration
proceedings on such terms as may be agreed, and to take any security for the
discharge of any such calls, liability, debt or claim and give a complete discharge
in respect thereof:
(g) to determine from time to time, after giving an opportunity to answer
the claims, the contribution to be made, or remaining to be made by the
members or past members of the de-registered society or by the estates,
nominees, heirs or legal representatives of the deceased members of deregistered
society, or by the officer, post officer of the estate or nominee, heirs
or legal representatives of deceased officer to the assets of de-registered
society, such contribution being inclusive of debts and dues from such members
or officers of the de-registered society;
(h) to determine from whom and in what proportion the cost of deregistration
and that of the proceedings of de-registration shall be borne;
(i) to fix the time or times within which the creditors shall prove their debts
and claims;
(j) to summon and enforce the attendance of witnesses and to compel the
production of any books, accounts, documents/securities, cash or other
properties belonging to the society de-registered which have vested in him but
are in the possession of any person or body corporate by same means and in the
same manner as provided in the case of civil case under the Code of Civil
Procedure. 1908;
(k) to do all acts and to execute in his name on behalf of the society deregistered
all deeds, receipts and other documents as may be necessary for
finalisation of proceedings of de-registration.
(3) Immediately on his appointment, the Official Assignee shall proceed to
realise the assets of the society de-registered by sale or otherwise and liquidate the
liabilities.
(4) The Official Assignee, during the tenure of office, present accounts of his
receipts, not less than twice in each year, to the Registrar. The Registrar shall cause
the accounts to be audited in such manner as he thinks fit and for the purpose of
audit, the Official Assignee shall furnish to the Registrar with such accounts and
information as he. or the person appointed by him, may require.
(5) The Official Assignee shall on demand and on payment of such fee as he
may determine supply a copy of audited account to contributory.
(6) The Official Assignee shall pay such fees as the Registrar may direct for the
audit of accounts and books kept by him or by the society de-registered.
(7) He shall be held liable for any irregularities which might be discovered in the
course or as a result of audit or otherwise in respect of transaction subsequent to his
taking over the charge as Official Assignee and may be proceeded against as if it
were an act against which action should be taken under Section 88.
Provided that no such action shall be taken unless the irregularities have caused or likely to cause the loss, damage and have occurred due to gross negligence or an act of omission or commission in carrying out duties and functions assigned to him.
Provided that no such action shall be taken unless the irregularities have caused or likely to cause the loss, damage and have occurred due to gross negligence or an act of omission or commission in carrying out duties and functions assigned to him.
(8) He shall, after settling assets and liabilities of the society de-registered as
they stood on the date of his appointment, proceed to determine the contribution to
be made or remaining to be made to the assets of the society de-registered by any
person and the property of such person and call upon each of them by order to pay
the amount specified in such order as contribution and as cost of the proceedings
after de-registration as determined under this rule after approval of the Registrar.
Every such order shall be submitted for approval to the Registrar who may modify it
or refer it back to the Official Assignee for further enquiry or further action.
(9) If the sum assessed against any person is not covered, the Official Assignee
may issue subsidiary order or orders against any other person or persons to the
extent of the liability of each for the debts of the society de-registered until the
whole amount due from such person is recovered. The provision of foregoing rule
shall mutatis mutandis apply to such order.
(10) He shall submit the progress report and such other reports and statements
to the Registrar, as the Registrar may require.
(11) He may empower one or more persons by general or special order in
writing to make collection and to grant valid receipts on his behalf.
(12) He shall have power to call meetings of creditors and contributories and it
shall be obligatory on all such persons to attend such meetings.
(13) The Official Assignee may, at any time, be removed by the Registrar and he
shall on such removal hand over all the property and documents to such persons as
the Registrar may direct
(14) The Official Assignee shall exercise only those powers under the Act and
these rules as may be determined by the Registrar by general or special order from
time to time and in the manner and subject to the conditions he may impose.
(15) He shall maintain such books and accounts as the Registrar may require him to
keep.
(16) He shall submit a final report to the Registrar. On acceptance of such report
by the Registrar, the Official Assignee shall, within 30 days, arrange to transfer the
entire surplus to the Registrar.
(17) On the day of acceptance of final report of the Official Assignee by the
Registrar, all the assets of the society de-registered shall stand vested in the
Registrar and the liabilities, if any, remained to have been liquidated, shall stand
liquidated.
Rule No 18B. Purposes for investment of surplus by the Registrar
(1) The Registrar shall dispose of the surplus vested in him under Rule 18A in any manner at his discretion for the following purposes, namely, -
(i) any object of public utility, welfare activity, education, relief to poor, medical
relief and for any other charitable purpose defined in Section 2 of the Charitable
Endowment Act, 1890;
(ii) any society registered with similar object which the society de-registered had.
(ii) any society registered with similar object which the society de-registered had.
(2) After the Registrar accepts final report and the surplus is transferred to him,
he may terminate the appointment of Official Assignee, and from the date of such
order the person appointed as Official Assignee shall cease to function.]
14 [Rule No 18C. Manner of issue of public notice of the proceedings of de-registration of society
(1) Where the number of members of the society is so large and it is not
possible to ascertain the correct addresses of all such members from the records of
the office of the Registrar, and in the opinion of the Registrar it is not practicable to
serve notice of hearing on each such individual member as contemplated under the
proviso to sub-section (1) of Section 21 A, a public notice of the proceedings of the
de-registration of society shall be published in two local newspapers having wide
circulation in that locality in which the
registered office of the society proposed for de-registration is situated, and of which
at least one shall be in the Marathi language. A copy of the said public notice shall be
sent to the registered address of the society by registered post acknowledgement
due together with the directives to display it in the office of the society. Such copy of
the notice shall also be displayed on the notice board in the office of the Registering
authority. If the notice sent by such registered post is returned undelivered, the
notice shall be treated as having been duly
served, but a copy of the said notice shall be displayed on the notice board in the
office of the society.
(2) Such public notice shall contain, amongst others, the following items, namely,—
(a) the reasons for initiating the proceedings for de-registration of the society;
(b) the date by which any aggrieved person may submit his written statements as to why the proposed action should not be taken; (c) the date on which and the place where the Registrar shall give an opportunity of being heard to any aggrieved person;
(d) the proposed action contemplated under the provisions of sub-sections (2) Section 21 A.]
(b) the date by which any aggrieved person may submit his written statements as to why the proposed action should not be taken; (c) the date on which and the place where the Registrar shall give an opportunity of being heard to any aggrieved person;
(d) the proposed action contemplated under the provisions of sub-sections (2) Section 21 A.]
Footnote:
1. Deleted by G. N. of 8-11-1971.
2. Subs, by G. N. of 14-2-1975.
3. Subs, by G. N. of 23-11-1982.
4. Subs, by G. N. of 2-12-2000.
5. Inserted by G.N. of 30-10-2003
6. Subs, by G. N. of 8-11-1971
7. Deleted by G. N. of 4-11-1985
8. Ins. ibid
9. Added G. N. of 8-11-1971
10. Deleted by G. N. of 8-11-1971.
11. Subs, by G. N. of 4-11-1985.
12. Added by G.N. of 17-11-1966.
13. Ins. by G.N. of 16-10-1987.
14. Ins by G.N of 1-1-1988
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