The Manipur Co-Operative Societies Act, 1976

THE MANIPUB COOPERATIVE SOCIETIES ACT, 1975 (MANIPUR ACT N0. 14 OF 1976) An Act to eomolidate and amend the law relating to Co-operative Societies. BE it enacted by the Legislature of the State of Manipur'1n the Twentyseventh year of the Republic of India. as follow:—— CHAPTER I PRELIMINARY 1. (1) This Act may be called the Manipur Co-operative Societies Act, 1976. (2) It extends to the whole of Manipur. (3) It shall come into force on such date the Manipur Govern- ment may, by notification in the Official Gazette, appoint. 2. In this Act, unless the context otherwise requires— (1) “Agricultural Marketing! Society” means a. society. (9.) the object of Which is the marketing of agricultural produce and the supply of implements and other requisites for agricultural production, and (b) not less than three fourths of the members of which are agriculturists, or societies formed by agriculturists ; (2) “Arbitrator” means a person appointed under this Act to decide disputes referred to him by the Registrar or Registrar’a nominee or Board of Nominees. (3) “Auditor” means a. person appointed by the Registrar or by a. society to audit the accounts of the society, (3)A. “Board” means the Board of Management ofva society. Short title, extent and oomi monument . Definitions; (4) “Bonus” means payment made in cash or kind, out of the profits of a. society to a, member, or to :1. person who is not a member, on the basis of his contribution (including any contribution in the form of labour or service) to the business of the society, and in the case of a farming society, on the basis both of such contribution and also the value or income 01-, as the cn.an may be, the area of the lands of the members brought twrcther for joint cultiVation as may be decided by the society ; (5) “Bye-laws” means bye-luws registered under this Act and for the time being in force, and includes registered amendments of such bye-Iaws ; (6) “Central Bank” means a. Co-operative Bank, the objects of Which include the creation of funds to be loaned to other Societies ; (7) “Committee” means the Committee of management, or other directing body, to which the management of the affairs of a society is entrusted. (8) “Company” means a. company as defined in the Companies Act, 1956, and includes 3. Banking Company and also any Board, corporation or other corporate body, constituted or established by any Central, State or Provincial Act for the purpose of the development of any industry- ; (9) “Consumers’ ‘Society” means a society the object of-which is— (a) the procurement, production or processing, and distribution of goods, to, or the performance of other services for, its members as 33180 other customers, and (b) the distribution among its members and customers, in the proportion prescribed by rules or by the bye-laws of the Society, of the profits accruing from such procurement, pro- duction or processing; and distribution ; (10) “Co-operative Bank” means a. society registered under this Act and doing the business of banking, as defined in clause (b) of sub-section (1') of section ‘5 of the Banking Companies Act, 1949 ; , (11) "‘C’o-operative Year” means the year ending on the M day of June or in case of any Society or clase of societies the accounts of which are with the previous sanction of the Registrar, balanced on any other day, the year ending on such day. (12) "Dividend” means the amount paid, out of the profits of a. soeiety, to a. member in proportion to the shares held by him - (l3) “Farming Society” means a society in Which, with the object of increasing agricultural production, employment and income and the better utilisation of resources, lands are brought together and jointly eultivated by .5111 the members, such lands (a) being owned by or leased to the members (or some of them), or (b) coming in possession of the society in any other manner whatsoever; ‘ (14‘) “Federal Society” means a. society— (a) not lesa than five members of Which are themseiyes Societies ; and ’ (b) in Which the voting rights are so regulated that the: mem- bers which are societies have not less than four fifths of the total number of votes in the general meeting of‘ such soeiety ; , (15) “Firm” means a firm registered under the Indian Partnership Act, 1932 ; K ' (16) “General Society” means a society not falling, inlany of the classes of societies defined by the other clauses of this section ; (17) “Housing Society” means a society the object of. whichis providing members with dwelling houses ; (18) “Liquidator” means a personapjpointed‘ as liquidator under this Act ; (19) "goeal Authority” means Municipality, Town Committee or Uram Panehayztt : (20) (a) “Member” means a person joining in an application for the registration of a Oo-operative Society which is subse- quently registered, or a,- person duly admitted to member- ship of a society after registration, and includes a nominal, associate or sympathiser member ; (11) “Associate Member” means a member Who holds jointly a share of a. society with others, but whose name does not stand in the share certificate ; ' (c) “Nominal Member” means a person admitted to member- ship as such after registration in accordance With bye- 1aws ; (d) “SympathiSer Member” means a person who sympathises the aims and objects of the society and who is admitted by the society as such member ; (21) “Officer” means a person elected or appointed by a. society . to {my office of such society according to its bye-laws ; and includes a Chairman, Viee-Chairman, President, Vice-President, Managing Director, Manager, Secretary, Treasurer, member ofthe Board and any other ' person elected or appointed under this Act, the» rules and the bye-laws, to give directions in regard to the business of such society. (22) “Prescribed” means prescribed by trules ; (23) “Processing Society” means a society the objects of which is the processing of goods ; (2L) “Producers’ Society” means a society the objects of Which is the production and disposal of goods or the colleetive disposal of the labour of the members thereof ; (25) “Registrar” means a person appointed to be the Registrar of Qo-opemtive Societies under this Act ; ’ ' . _, (26) “Resources Society” means a society, the'object of which. is the obtaining; for its members of credit, goods or services required by them ; (27) “ 11.11108” means rules made under this Act ', (28) “Society” means a‘Co-operetive Society registered, or deemed to be registered, under this Act ; ,_ _. ._ -. ,. ,- - Registrar. Societies which may be registered under this Act. Registration with limited or unlimited liabilities. Conditions of registrar tion. (29) “Society with limited liability” means a society having th liability of its members limited by its bye-laws ; (30) “Society With unlimited liability” means a society the men- bers of which are, in the event of its being wound up, jointly and severally liable for and in respect of its obligations and to contribute to any deficiency in the assets of the society ; (31) “State” means State Govei'hment of Manipur ; . (32) “Tribunal” means the Manipur Co-operative Tribunal cona- tituted under this Act ; . (33) “Working capital” means funds at the disposal of a. society inclusive of paid up share capital, funds, built out of profits, and money raised by borrowing and by deposits. CHAPTER II REGISTRATION 3. The State Government may appoint a. person to be the Registrar of Co-operative Societies for the State ; and may appoint one or more persons to assist such Registrar, and may, by general or Special order, confer on any such person or persons all or any of the powers of the Registrar under this Act. The person or persons so appointed to assist the Registrar and on whom any powers of the Registrar are conferred, shall work under the general guidance, superintendenee and control of the Registrar. 4. A society, which has as its objects the promotion of the economic interests or general Welfare of its members or of the public, in accordance with Co-Operative principles, or a society established with the object of facilitating the operations of any such society, may be registered. . ' Provided that, no society shall be registered if it is likely to be economically unsound, or the registration of which may have an adverse efl'eet on the development of the Co-operative movement. 5. A Society may be registered with limited or unlimited liability. 6. ( 1) No society, other than a. federal society, shall be registered under this Act unless it consists of at least ten persons (each of such persons being a member of a difl'erent family ), who are qualified to be members under this Act and who reside in the area of operation of the society. (2) No society with unlimited liability shall be registered unless all persons forming the society reside in the same town or village, or in the same group of villages. (3) No federal society shall be registered, unless it has at least five societies as its members. (4:) Nothing in this Act shall be deemed to effect the registration of any society made before the commencement of this Act. (5) The word “limited” or “unlimited” shall be the last word in the name of every society with limited or unlimited liability, as the case may be, which is registered or deemed to be registered under this Act. Explanation :—For the purpose of this Section and Section 8, the expression “member of a family” means a wife, husband, father, mother, grand-father, grand-mother, step—father, step-mother, son, daughter, step-son, stepdaughter, grandson, granddaughter, brother, sister, half—brother, half-sister, and Wife of brother or half-brother. 7. Notwithstanding anything contained in this Act the State Govamment may by special order in each case, exempt subject to such conditions (if any) as it may impose. any society from any of the requirements of this Act as to registration. 8. (1) For the purpose of registration, an application shall be made to the Registrar in the prescribed form, and shall be accompanied by four copies of the proposed bye-laws of the society. The persons by whom, or on Whose behalf such application is made. shall furnish such information in regard to the society, as the Registrar may require. (2) The application shall be signed— (a) in the case of a society other than a federal society, by at least ten persons (each of such persons being a member of a difi'erent family), Who are qualified under this Act, and _ (b) in the case of a federal society, by at least five Societies. No signature to an application on behalf of a society shall be valid, unless the peracn signing is a member of the committee of such a. society, and is authorised by the committee by resolution to sign on its behalf the application for registration of the society and its bye-laws; and a copy of such resolution is appended to the application. 9, (1) (a) If the Registrar is satisfied that a society has complied with the provisions of this Act and the Rules and that its proposed bye- laws are not contrary to this Act or to the Rules, he may, if he thinks fit register the society and its bye-laws within six months from the date of the receipt of the application. (b) If the Registrar is unable to dispose of an application for registration within the period mentioned in the foregoing Sub-section, he shall make report to the State Govt. Stating therein the reasons thereof ; and he shall thereafter act in accordance with such direction as may be issued to him by the State Government. Powers to exempt Io- cieties from conditions as to regis~ tration. Application for registra- tion. Registration Evidence of Registration. Power of Registrar. to decide cer- tain question, Classification of societies. Amendment of bye-laws of society. shall forthwith communicate his decision with reason thereof te- person making the application and if there be more than one, If- person who has signed first thereon. (0) Where the Registrar rerSQS to register a proposed societyq 1% (2) On the registration of a society, the Registrar shall issue tn “1 a certificate of Registration signed by him. ’ (3) A certificate of registration issued under sub-Section (2)5511 be conclusive evidence that the society therein mentioned is M3 registered unless it is provided that the registration has been canceliai (4) The Registrar shall maintain a register of all societies reg!» tered under this Act. 10. A certificate of registration signed by the Registrar, std" be conclusive evidence that the society therein mentioned, is (1;?) registered, unleSS it is proved that the registration of the society ha been cancelled. 11. When, for the purpose of the formation, or continuance. ii a society, any question arises whether a person is an agriculturist or not or whether any person resides in the area of Operation of the society at not, Such question shall be decided by the Registrar. 12. (1) The Registrar shall classify all societies into one or otha' of the classes of societies defined in section 2, and also into Such sub- classes thereof as may be prescribed by rules. (2) The Registrar, may for reasons to be recorded in writing, after the classification of a society from one class of society to another, or from one Sub-class thereof to another ; and may in the public interest and subject to such terms and conditions as may thinkfit to impose, allow any society so classified to undertake the activities of a society belonging to another class. (3) A list of all societies so classified shall be published by the Registrar every three years in such manner as the Manipur Government, may from time to time direct. 13. (1) No amendment of the bye-laws of a Society shall be Valid until registered under this Act. For the purpose of registration of an amendment of bye—laws, a. copy of the amendment passed in the manner prescribed; at a general meeting of the society? Shall be forwarded to the Registrar. (2) When the Registrar registers an amendment of the bye-iaws of a society, he shall issue to the Society a copy of the amendment certified by him, Which shall be conclusive evidence that the same is duly registered. (3) Where the Registrar refuses to register an amendment of the bye-laws of a society, he shall communicate the order of refusal together with his reasons therefor, to the society. 14. (1) If it appears ‘to the Registrar that an amenament of the bye-laws of the society is necessary or desirable in the interest of such society, he may call upon the society; in the manner prescribed, to make the amendment within Such time as he may specify. (2) If the society fails to make the amendment Within the time specified. the Registrar may, after giving the society an opportunity of being heard register such amendment, and i3sue to the society a copy of such amendment certified by him, With effect from the “date of the registration of the amendment in the manner aforesaid. the bye-laws shall be deemed to have been duly amended accordingly ; and the bye. laws S0 amended shall, subject to appeal (if any) be binding on the society and its members. 15. (1) A society may, by reSOlution passed at a general meeting, and With the approval of the Registrar. change its name; but such change shall not affect any right or obligation of the society, or of any of its members ; and any legal proceedings pending before any person, authority or court may be continued by or against the society, under its new name. ('4) Where a Society changes its name, the Registrar shall enter the name in its place in the register of societies and shall also amend the certificate of registration accordingly. 16. (1) Subject to the provision of this Act and the Rules, a society may by amendment of its bye-laws, change the form or extent of its liability. (2) When a society has passed a resolution to change the form or eXtent of its liability, it shall giVe notice thereof in writing to all its member and creditors and notwithstanding anything in any bye-law or contract to the contrary, any member or creditor shall, during a period of one month from the date of serving of such notice upon him, have the option of withdrawing his shares, deposits or loans. (3) (a) Any member or creditor Who does not exercise his option Within the period Specified in sub-section (2), Shall be deemed to have assented to the change. (b) An amendment of the bye-laws of a society, changing the form or extent of its liability, shall not be registered or take efi'ect until, either 2—— (i) all members and creditors have assented, or deemed to have aSSented, thereto as aforesaid, or (ii) all claims of members and creditors who exercise the option given by sub-Section (2} within the period specified therein: have been met in full or otherwise satisfied. _17. (1) A society may, with the previous approval of the Reglstrar, by resolution passed by two-thirds majority of the members present and Voting at a Special general meeting held 'for the 'pur- pose, decide :— ‘ 7 Power to di- rect amend- ment of bye-laws. Change of name . Change of liability. Amalgama- tion, transfer, division or conversion of societies, (a) to amalgamate with another society ; (b) to transfer its assets and liabilities, in Whole or part, toany other society ; (o) to divide itself into two or more societies, or (d) to convert itself into another class of society ; Provided that when such amalgamation, transfer, division or con-version, aforesaid, inVOlves, a transfer of the liabilities of a. Society toany other society, no order on the resolution shall be passed by theRegistrar, unless he is satisfied that :—- (i) the society, after passing such resolution, has given noticethereof in such manner as may be prescribed, to all itsmembers, creditors and other persons whose interestare likely to be affected (hereinafter, in this Sectionreferred to as “other interested perSOns” ), giving themthe option, to be exercised within one month from thedate of Such notice, of becoming members of any ofthe new societies, or continuing their membership inthe amalgamated or converted society, or demandingpayment of their share or interest or dues, as thecase may be, (ii) all the members and creditors and other interestedperson, have asswted to the decision, or deemed to haveassented thereto by virtue of any member or creditoror any other interested persons, have assented to the .decision, or deemed to have assented thereto by virtueof any member or creditor or any other interestedperson failing to exercise his option within the periodspecified in clause (i) aforesaid, and (iii) all claims of members and creditors and other inte-rested persons, who exercise the option within theperiod specified, have been met in full or otherwisesatisfied. (2) Notwithstanding anything contained in the Transfer of Pro-perty Act, 1882,, or the Indian Registration Act, 1908, in the event ofdivision or conversion, the registration of the new societies or, asthe case may be, of the converted society, and in the event of .amalgamation, on the amalgamation the reSolutions of the societies con- ;cerned with amalgamation, shell in each case be sufficient conveyance fto vest the assets and liabilitiesSof the original Society or amalgama-ting societies in the new societies or converted or amalgamated Society,as the case may be. (3) The amalgamation of societies, or division or conversion of 3a. society shall not affect any rights or obligation of the societies so by or against the amalgamated society, or, as the case may be, theconverted society, or the new societies, (4) Where two or more societies have been amalgamated, or a society has been divided or converted, the registration of such societies or society shall stand cancelled on the date of registration of the amalgamated society, or the converted society, or the new societies between Which the society may have been divided. 18. (1) Where the Registrar is satisfied that it is essential in the public interest, or in the interest of the OO-operative Movement, or for the purpose of securing the proper management of any society that two or more societies should amalgamate or any society should be divided to form two or more societies or should be reorganised then not withstanding anything contained in the last preceding section but subject to the provisions of this section, the Registrar may after con- sulting such federal society as he thinks necessary provide for the amalgamation, division or reorganisation of these societies into a single society with such constitution, property, rights. interests and autho- rities, and such liabilities, duties and obligations, as may be specified in the order. (2) No order shall be made under this section, unless :— (a) a. copy of the proposed order has been sent in draft to the society or each of the societies concerned ; (b) the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions and objections which may be received by him within such period (not being less than two months from the date on which the copy of the order as aforesaid was received by the society) as the Registrar may fix in that behalf, either from the society or from any member or class of members thereof or from any creditor or class of creditors. , (3) The order referred to in subsection (1) may contain such incidental, consequential and supplemental provisions as may in the opinion of the Registrar, be necessary to give effect to the amalgamation, division or re-organisation. (4) Every member or creditor of each of the societies to be amalgamated, divided or re-organised, Who has objected to the scheme of amalgamation, division or reorganisation, within the period specified, shall be entitled to receive on the issue of the order of amalgamation or reorganisation his share or interest if he be a member, and the amount in satisfaction of his dues if he be a. creditor. (5) On the issue of an order under sub-section (1), the provisions in subsections (2), (3) and (4) of section 1'7 shall apply, to the societies so amalgamated, divided or re-organised as if they were amalgamated, divided or re-organised under the section, and to the society amalga- mated,divided or re-organised. 19. Where a proposal for a compromise or arrangement :— (a) between a society and its creditors, or Power to direct amal- gamation, division and re-organisa- tion in pu- blic interest etc, Reconstruc- tion of societies. 10 Partnership of societies. Cancellation of registra- tion, Person who may become member. (b) between a society and its members, is approved at a special general meeting called for the purpose, the Registrar may, on the application of the society or of any member or of any creditor of the society, or in the case of a society whiehiis being wound up, of the Liquidator, order reconstruction in the prescribed manner, of the society. 20. (1) Any two or more societies, may with the prior approval of the Registrar, by resolution passed by three-fourths majority of the members present and Voting at a general meeting of each such society enter into partnership for carrying out any specific business, provided that each member has had clear ten days’ written notice of their re301ution, and the date of the meeting. (2) Nothing in the Indian Partnership Act, 1932 shall apply to such partnership. 21. The Registrar shall make an order cancelling the registration of a society if it transfers the whole of its assets and liabilities to another society or amalgamated, with another society, or divides itself into tWo or more societies or if its afi'airs are wound up, or it has not commenced business within a reasonable time of its registration, or has ceased to function if :— he is satisfied, after making such enquiry as he thinks fit that the society no longer has genuinely as its object one or more of the objects Specified in section 4 and its registration ought. in the interest of the general public, be cancelled. :The society shall, from the date of such order of cancellation, be deemed to be dissolved, andishall cease to exist as a corporate body. CHAPTER III Members and their rights and liabilities 22. (1) Subject to the provision of section 24, no person 3113,11 be admitted as a member of a society except the following that is i to say— (a) an individual, who is competent to contract under the Indian Contract Act, 1872 ; (b) a firm, company or any other body corporate constituted under any law for the time being in force, or a society registered under the Societies Registration Act, 1860 ; (c) a society registered, or deemed to be registered under this Act ; (d) the State Government ; (e) a local authority ; (f) a public trust registered under any law for the time being in force for the registration of such trusts. Provided that, the provisions of clause (a) shall not apply to an individual seeking admission to a. society exclusively formed for the benefit of students of a school or college ; Provided further that, subject to such terms and conditions as may be laid down by the State Government by general or special order, a. firm or company may be admitted as a member only of a. society Which is a. federal or urban society or Which conducts or intends to conduct an industrial undertaking ; Provided also that any firm or company, Which is immediately before the commencement of this Act a. member of a society deemed to be registered under this Act, shall have, subject to the other provisions of this Act, the right to continue to be such member on and after such commencement. Explanation :——-For the purposes of this section, an ‘urban society’ means a society the business of which mainly falls within the limits of a municipal corporation, municipality eantonment or notified area committee. (2) Money-lenders, traders and other persons Whose interests conflict with the interest of the Co-operative Institution shall not be :wlmittcd ms member. (3) In the case of Agricultural Credit Co-operative Institutions, where a farm holding is in possession of a. Hindu Joint Family, only manager of such joint family and Where such holding is in the possession of Co-tenants, only one such Co-tenant shall be eligible for membership of such society and of a cultivating household only one adult member of the household shall be eligible for admission as member. (4) Where a person is refused admission as a member of a, society the decision (With the reason therefor) shall be communicated to that person Within fifteen days of the date of the decision, or Within three months from the date of receipt of the application for admission, whichever is earlier. Provided that Where no decision is communicated Within the specified period, it shall be deemed that the admission has been refused. 23. (1) No society shall, Without sufficient cause, refuse admission to membership to any person duly qualified therefor under the provisions of this Act and its bye-laws. (2) Any person aggrieved by the decision of a, society, refusing him admission to its membership, may appeal to the Registrar. , (3j The decision of the Registrar in appeal, shall be final and the Registrar shall communicate his decision to the parties within fifteen days from the date thereof. 24. (i) Notwithstanding anything contained in section 22, a. society may admit any person as a nominal, associate or sympathiser member. (ii) A nominal or sympathiser member shall not be entitled to any share In any form whatsoever in the profits or assets of the 11 Person! Who may not be member. Restriction of member- ship, Communica- tion of deci- sion re fusing admission, Open mem— bersbip. Nominal, associate and sympathiser member. 1‘2 No rights of membership to be exer- cised till due payments are made, Voting powers of members. Restrictions on holding of shares. society as Such member. A nominal or sympathiser member shall ordi- narily not have any of the privileges and rights of a member, but such a member, or an associate member, may, subject to the provisions of sub-seetion (8) of section 27,‘ have such p=~ivileges and rights and be subject to such liabilities of a member, as may be specified in the bye- laws of the society. 25. A person shall cease to be a member of a society on his resignation from the membership thereof being accepted, or on the transfer of the whole of his share or interest in the society to another member, or on his death, or removal or expulsion from the Society. 26. No person shall exerciSe the rights of a member of a society, until he has made such payment to the Society in respect of membership, or acquired Such interest in the society, as may be prescribed by the rules, or the bye—laws of such society. 27. (1) No membor of any society shall have more than one vote in its affairs provided that, in case of an equality of Votes the Chairman shall have a casting vote. (2) Where a share of society is held jointly by more than one person, only the person whose name stands first in the share certificate, shall have the right to vote. (3) A society, Which has invested any part of its funds in the shares of another society, may appoint one of its members to vote on its behalf in the affairs of that other society; and accordingly such member shall have the right to vote on behalf of the first society. (4) A company or any other body corporate constituted under any law for the time being in force which has invested any part of its funds in the shares of a society may appoint any one its directors or officers to vote on its behalf in the affairs of such society; accordingly such director or officer shall have the right to vote on behalf of the company or body corporate. {5) Where a firm has invested any part of its funds in the shares of a. society, any one of its partners shall be entitled to vote in the afiairs of the society on behalf of the firm. (6). A local authority or public trust Which has invested any part of its funds in the shares of a sceiety, may appoint any of its members or trustees, to vote on its behalf in the affairs of that society ; and accor- dingly such person shall have the right to vote on- behalf of that local authority or the public trust, as the case may be. (7) In the case of a federal society, the Voting rights of individual members thereof shall be such as may b0 regulated by the rules made under this Act and the bye-laws, of the society. (8) ‘I'x'o nominal, associate or sympathiser member shall have the right to vote. 28. In any society, no member other than the State Government or any other society and agencies that may be authorised by the State Government shall-— (a) hold more than such portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed, or (b) have or claim any interest in the shares of the society exceeding five thousand rupees ; Provided that the State Government may, by notification in the ()ll‘icial Gazette, specify in respect of any class of societies :1. higher or lower maximum than one-fifth of the share capital or, as the case may be, a higher or lower amount than five thousand rupees. 29. (1) Subject to the proviSion of the last preceding section as to the maximum holding of shares and to any rules made in this behalf, 3. transfer of, or charge on, the share or interest of a member in the share capital of a Society shall be subject to Such conditions as may be prescribed. (2) A member shall not transfer any share held by him or his interest in the capital or property of any Society, or any part thereof, unless— (a) he has held such share or interest for not less than one year ; (b) the transfer is made to a member of the society or to a person whose appiication for membership has been accepted by the society. (3) Notwithstanding anything contained in sub~Seciions (I) and (2), where a. member is allowed to resign, or is expelled, or ceases to be a member on account of his being disqualified by this Act or by the rules made thereunder or by the bye-Iaws of the society, the society may acquire the share or interest of such member in the share capia’al by paying for it at the Value determined in the manner prescribed, provided that the total payment of share capital of a society in any financial year for such purposes does not exceed ten per cent of the paid up share mLpital of the society on the last day of the financial year immediately preceding. Explanation :— The right to forfeit the share or interest of any expelled .nember in the share capital by virtue of any bye-laws of the Hmsicty, shall not be affected by the aforesaid provision. (1) Where the State Government is a member of a society the wmriutions contained in this Section shall not apply to any transfer nm'lu by it nfits share or interest in the capital of the society ; and Hum, Howrnment may, notwithstanding anything contained in this Act, wil iulmw from the society its share capital at any time, after giving to Hm mmiety notice thereof not less than three months. :m, (1) On the death of a member of a society, the society shall trzuzehn- the share or interest of the deceased mem her to a person or peramm n: minated in accordance With the rules, or, if no person has been so nominated, to such person as may appear to the eommitee, to be the heir or legal representative of the deceased member : Restriction: on transfer or charge 0 I) share or interest. Transfer of interest on death of member. lzt Provided that, such nominee, heir or legal represwtetive as the can may be, is duly admitted as a member of the society ; ‘ Provided further that, nothing in this sub-section or in Section 2! shall prevent a minor or a person of unsound mind from acquiring l. inheritance or otherwise, any share or interest of a deceased member i a society. . (2) Notwithstanding anything contained in Snb-section (I), an such nominee, heir or legal repreSentative, a=- the cafe may be, mu require the society to pay to him the value of the share or interest 0 the deceased member, ascertained in accordance With the rules. (3) A society may pay all other moneys due to the decease member from the society to such nominee, heir or legal representatiw as the case may be. (4) All transfers and payments duly made by a society in accor dance With the provisions of this section, shall be valid and efiectu against any demand made upon the society by any other person. U . 31. The share or interest of a member in the capital of a societwhere or In-ter.“ not or in the loanstoek, issued by a housing society, or in the funds, raise liable to by way of savings deposit, shall not be liable to attachment or sale nnde BWRChmOM- any decree or order of a Court for or in respect of any debt or liabilit incurred by the member ; and accordingly .no person or authority unde any law for the time being in force, shall be entitled to or have any claim on, such share or interest. i Rights of n; embers to I 32. (1) Every member of a society shall be entitled to inSpect,i see books etc”? free of cost, at the Boeiety’s office during office hours, or any time fixedl for the purpose by the society, a copy of the Act, the Rules and thei i bye-Iaws, the last audited annual balance sheet, the profit and loss J account, a list of the memb era of the committee, a register of members“! =the minutes of general meetings, minutes of committee meetingsi 'and thosa portions of the books and resurds in which his transactions3g with the society have been :60 nded. (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 the foregoing snb-section within one month from the date of payment of such fees. 33. (1) Subject to the provisions of Subsection (2), the liability Lia‘bflity 0' of a past member. or of the estate of a deceased member of a seeietypast membet and “ta“ for the debts of the society as they stood,— i d d . .?mm‘fxse (a) 1n the case of a past member, on the date on Which he ceased to be a member, and (b) in the case of a deceased member,on the date of his death, shall, continue for a period of four yeats from such date. (2) Where a. society is ordered to be wound np under any provision of this Act, liability of a past member or of the estate of a deceased member Who ceased to be aZmember 01' died, Within tWo years immediately preceding the date of the order of Winding up, shall continue until the entire liquidation-proceedings are completed ; but such liability shall extend only to the debts of the society as they stood on the date of his ceasing to be a member or death, as the case be. 34. Notwithstanding anything contained in any law for the time being in force, the dues of a society from a member, in insolvency proceedings against him, shall rank in order of priority next to the dues payable by him to Government or to a local authority. 35. (1) A society may, by resolution passed by three-fourths majority of the members entitled to vote who are present at a general meeting held for the purpose, expel a member for acts Which are detrimental to the interest or proper working of the society. Provided that no such resolution shall be valid, unless the member concerned is given an opportunity of representing his case to the general body, and no resolution shall be effective unless it is approved by the Registrar. (2) No member of a society Who has been expelled under the foregoing sub-section shall be eligible for readmission as a member of that Society, or for admission as a member of any other society for a period of one year from the date of Such expulsion ; Provided, the Registrar may, on an application by the society and in special circumstances, sanction the re-admission 0r admiseion, within the said period, of any such member as amember of the said society 01‘ of any other society, as the case may be. CHAPTER IV INCORPORATION, DUTIES AND PRIVILEGES OF SOCIETIES 36. The registration of society shall render it a body corporate by the name under which it is registered, With perpetual succession and a common seal, and With poWer to acquire, held and dispose of pro- perty, to enter into contracts, to institute and defend suits and other legal proceedings, and to do all such things as are necessary for the purpose for which it is constituted. 37. Every society shall have an address, registered in accordance With the rules, to Which all notices and communications may be sent, and the society shall send notice in writing to the Registrar of any change in the said address, Within thirty days thereof. 38. (1) Every society shall keep a register of its members, and enter therein the following particulars, viz. (3,) the name, address and occupation of each member ; (b) in the case of a Society having share capital, the share held by each member ; 15 Insolvency of members, Expulsion of members. Societies to ‘be bodies corporate. Address of societies. Register 0! members; 16 Copy of Act etc. to be open to inspection. Admissibi- lity of copy of entry as evidence. Exemption from comv pulsory re- gistration of instruments relating to shares and debentures of society. (0) the date on Which each person was admitted as member ; (d) the date on Which any person ceased to be a member ; (e) such other particulars as may be prescribed ; Provided that, where a society has by or under this Act, per- mitted a member to transfer his share or interest on death to any person, the register shall also show against the member concerned the name of the person entitled to the share or interest of the members, and the date on Which the nomination was recorded. (2) The Register shall be prima-facie evidence of the date on which any person was admitted to membership, and of the date on Which he ceased to be a member. . 39. Every society shall keep, at the registered address of the Scele’oy a copy of this Act and the Rules and of its bye—laWS, and a list of members, open to inspection to the public, free of charge, during office hours or any hours fixed by the society thereon, 40. (l) A copy of any entry in any book, register or list, regularly kept in the course of business and in the possession of a society, shall, if duly certified in such manner as may be prescribed, be admissible in evidence of the existence of the entry and shall be admitted as evidence of the matters and transactions therein recorded in every case Where, and to the same extent to which the original entry would, if produced have been admissible to prove such matters. (2) ln the ease of such societies, as the State Government may by general or special order direct, no officer of a Society shall in any legal proceedings to Which the society is not a party, be compelled to produce any of the society’s books, the contents of which can be proved under the foregoing sub-section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, unless by order of the Court or a Judge made for special cause. 41, Nothing in elauSe (b) and (c) of sub-section (1) of section 17 of the Indian Registration Act, 1903, shall apply- (a) to any insti'ument relating to shares in a society, notwith- standing that the assets of the society consist in Whole or in part of immovable property ; or (b) to any debentures issued by any society and not creating deelaring, assigning, limiting or extinguishing any right, title 01‘ interest to or in immovable property, except in so far as it entitles the holder to the Security afi'orded by a registered instrument whereby the society has'mortgaged, conveyed or otherwise transferred the whole or part or its immovable property, or any interest therein to trustees upon trust for the benefit of the holders of such debentures ; or (c) to any endorsement upon, or transfer of any debentures issued by any society. 42. The State Government, by notification in the Official Gazette may, in the case of any society or class of societies, remit- (a) the stamp duty With which, under any law relating to stamp duty for the time being in force, instruments executed by or on behalf of a society or by an officer or member thereof, and relating to the business of the societymy class oi such instruments, or awards of the Registrar or his nominee or board of nominees under this Act are respectively, chargeable. (b) any fee payable by or on behalf of a society under the law relating to the registration of documents and to court fees, for the time being in force, and (c) any other tax or fee or duty ( or any portion thereof ) payable by or on behalf of a society under any law for the time being in force, Which the State Government is competent to levy. 43. A society shall receive deposits and loans from members and other persons, only to such extent, and under such conditions, as r‘: ay be prescribed or specified by the bye-laws of the society. 44. (1) A cO-operative society shall not make a loan to any person other than a member ; provided that with a general or Special sanction of the Registrar, 3, Co-operative Society may make a loan to another co-operatiVe society. (2) Notwithstanding anything contained in sub-Section (1), a co- operative society may make a loan to a depositor Within his deposit on its sec urity. 45. Save as is provided in this Act, the transactions of a society with persons other than members, shall be subject to such restrictions, if any, as may be prescribed. 46. A Society shall have a charge upon the share or interest in the capital and on the deposits, of a member or deceased member, and upon any dividend, bonus or profits, payable to any such member in respect of any debt due from Such member or his estate to the society ; and the soeiety may set off any sum credited or payable to such member in or towards payment of any such debt: Provided that, no co-operative bank shall have a charge upon any sum instead with it by a society out of the provident fund established by it under section 71, or its reserve fund ; and no co- operative bank shall be entitled to set off any such sum towards any debts due from the society. 47. (1) Notwithstanding anything (contained) in any other law for the time being in force, but subject to any prior claim of Govern. ‘ment in respect of land, revenue or any money recoverable as land revenue and to the provisions of sections 60 and 61 of the Code of Civil Procedure, 19089 17 Power to exempt from taxation. Restrictions on borrow- insS. Restrictions on loans. Restrictions gon other tran- sactions with non-mem— bets. Charge and of share or interest of member. Prior claim of society . 18 Charge on immovable property of members borrowing from certain societies, (8.) any debt or outstanding demand, owing to a society by any member or past member or deceased member shall be a first charge,— (i) upon to crop or other agricultural produce raised in Whole or in part Whether with or without a loan taken from the society by such member or past member or deceased member,—— , (ii) upon any cattle, fodder for cattle, agricultural or indus- trial implements or machinery, or raw materials for manufacture, or workshop, godown or place of business, supplied to or purchased by such member or past member or deceased member in whole or in part, from any loan Whether in money or goods made to him by the society, and (iii) upon any movable property Which may have been hypothecated, pledged or otherwise mortgaged by a member with the society, and remaining in his custody ; (b) any outstanding demands or dues payable to a society by any member or past member or deceased member, in respect of rent, shares, loans or purchase money or any other rights or amounts payable to such Society, shall be a first charge upon his interest in the immovable property of the society. Explanation—The prior claim of Govarnment in respect of dues other than land revenue, shall be restricted for the purpose of sub- section (1) to the 1[aSSets created by a member out of the funds in respect of which the Government has a claim. (2) No property or interest in property, which is subject to a charge under the foregoing sub-section, shall be transferred in any manner without the previous permission of the society ; and such transfer shall be subject to such conditions, if any, as the society may impose. (3) Any transfer made in contravention of snb-section (2) shall be Void. - (4) Notwithstanding anything contained in sub-sections (2) and (3), a society, which has as one of its objects the disoposal of the produce of its members, may provide in its bye-laws, or may otherwise contract with its member,s— (a) that every such member shall dispose of his produce through the society, and (b) that any member, who is found guilty of a 2[breach of the bye—laws or of any such contract, shall reimburse the society for any loss, determined. in such manner as may be specified in the bye-laws. 48. Notwithstanding anything contained in this Act or in any other law for the) time being in force,— Amendments ‘ 1, ' The word “assets” was substituted for the word "estate” by Manipur Act No, 12 ..of 1984, section 2(i). ' 2 x The word “breach” was substituted for the word “branch” by Mampur Act ' No. 12 of 1984, section 2 (ii), (a) any person who makes an application to a society 'of Which he is a, member, for a loan shall, if he owns any land or has interest in any land as a tenant, makes declaration in the form prescribed, such declaration shall state that the applicant thereby creates a charge on such land or in interest specified in the declaration for the pay- ment of the amount of the loan which the Society may make to the member in pursuance of the application and for all future advances (if any) required by him 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; (b) any perSOn who has taken a loan from a society of which he is a member, before the date of the coming into force of this Act, and who owns any land or has interest in land as tenant, and who has not already made such a declaration before the aforesaid date shall, as soon as possible thereafter make a declaration in the form and to the efiect referred to in clause (a), and no such person shall, unless and until he has made such declara- tion, be entitled to exercise any right as a member of the society ; (e) a declaration made under clause (a) or (b) may be Varied at any time by a member, with the consent of the society in favour of which sueh charge is created ; (d) no member shall alienate the whole or any part of the land or interest therein, specified in the declaration made under claUSe (a) or (b) until the whole amount, borrowed by the member together with interest thereon, is repaid in full ; Provided further that, if a part of the amount borrowed by a member is paid, the General Financing Agency may, on an application from the members, release from the charge created under the declara- tion made under clause (a) or (b) such part of the movable or immo-vable property specified in the said declaration, as it may deem proper,with due regard to the security of the balance of the amount remaining outstanding from the member ; (e) any alienation made in 1[contravention of the provisions of clause (d) shall be void ; (f) subject to the prior claim of the GOVernment in respect of land revenue or any money recoverable as land revenue, and to the charge ( if any ) created under an award made under any law for the time being in force in any part of the State, there shall be a first charge in favour of the society on the land or interest specified in the declaration made under clause (a) or (b) for and to the extent of the dues owing by him on account of the loan. Amendments ’ l. The word “contravention” was substituted for the word “contravent” byManipur Aot12 of 1984. See. 3. 19 20 Deduction from salary to meet so- ciety’s claim in certain case. Direct party nership of State Govt. in societies; (g) and in particular, notwithstanding anything contained i the Manipur Land Revenue and Land Reforms Act, 1 or any corresponding law for the time being in force, h“ Records of Rights maintained thereunder shall also inelab the particulars of every charge on land or interest creed under a declaration under clause (a) or (b) Explanation— For the purpose of this section, the eXprem't- “society” means— (i) any reSOurce society, the majority of the membersi which are agriculturists and the primary object of which is to obtain credit for its members, or (ii) any society, or any class of societies, specified in this behalf by the State Government, by a general or special order. 49. (1) A member of a. society may execute an agreement in favour of the society provided 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 to the society the amount so deducted in satisfaction of any debt or other demand of the society against the member. (2) On the execution of such agreement, the employer shall, if so required by the society by a requisition in writing, and so long as the society does not intimate that the whole of such debt or demand has been paid, made the deduction in accordance with the agreement, and pay the amount so deducted to the society, as if it were a part of the wages payable by him as required under the payment of Wages Act, 1936 on the day on which he makes payment. ' (3) If after receipt of a requisition made under the foregoing sub- section, 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 an arrear of land revenue and the amont So due shall rank in priority in respect of such liability of the employer as a wage in arrears. (4) Nothing contained in this section Shall apply to persons employed in any railways (within the meaning of the Constitution), and in mines or oil fields. CHAPTER V STATE AID TO SOCIETIES 50. The State Government may subscribe directly to share capital of a society with a limited liability, upon such terms and conditions as may be agreed upon. 51. The State Government may, under appropriation make bye- Iaw, provide moneys to society for the purchase directly or indirectly of shares in other societies With limited liability, (A society to Which moneys are so provided for the aforesaid purpose is hereinafter in this Chapter referred to as an ‘Apex Society”). 52. (1) An Apex Society which is provided With moneys as aforesaid shall, with such moneys, establish a, Fund to be called the “Principal State Partnership Fund”. (2) An Apex Society shall utilise the Principal State Partnership Fund for the purpose of—— (a) directly purchasing shares in other societies With limited liability ; (b) providing moneys to a, Society to enable that society (herein- after in this Chapter referred to as a “Central Society") to purchase shares in other societies with limited liability (the latter societies being hereinafter in this Chapter referred to as ‘ Primary Societies”). (0) making payable to the State Government in accordance with the provisions of this Chapter ; and for no other purpose. 53. (1) A Central Society Which is provided with money by an . Apex Society from the Principal State Partnership Fund shall, with Such moneys, establish a Fund to be called the “Subsidiary State Partnership Fund”. (2) A Central Society shall utilise the Subsidiary State Partnership Fund for the purpose of—- (a) purchasing shares in Primary societies ; (b) making payments to the Apex Society in accordance With the provisions of this Chapter ; and for no other purpose. 54. Shares shall not be purchased in a society from the moneys in the Principal State Partnership Fund or the Subsidiary State Partnership Fund, except With the previous approval of the State Government. 55. Where any shares are purchased in a society by— (a) the State Government ; or (b) an Apex Society from the Principal State or a, Central Society from the Subsidiary State Partnership Fund, as the case may be ; 21 Indirect part- nership of State Govt. in Societies. Principal state Partnership Fund. Subsidiary Sta to Pattnership Fund. Approval of State Go- vernment for for purchase of shares, Liability to be limited in respect of certain shares, Part- nership Fund, 22 Restriction on amount of dividend. Indemnity of Apex and Central Societies. Disposal of share capi- tal and dividend etc. Disposal of principal or subsidiary state part- nership fund on winidng up of Apex or Central society, the liability in respect of such shares shall, in the event of the soder of Which the shares are purchased is wound up, be limited to fit amount paid in respect of such shares. 56. An Apex Society which has purchasad shares in other societ'n from the moneys in the Principal State Partnership Fund, and a Cental Society which has purchaSed shares in Primary societies from thmoneys in the Subsidiary State Partnership Fund, shall be entitled only to such dividend on the said shares as is declared by the societyconcerned and is payable to other share holders of that society. 57. (1) If a society in which shares are purchased from the Principal State Partnership Fund is wound up, or is dissolved. the State Government shall not have any claim against the Apex Society which purchased the shares in respect of any loss arising from such purchase ; but the State Government shall be entitled to any moneys received by the Apex society in liquidation proceedings or on dissolution, as the case may be. (2) If a society in which shares are purchased from the Subsidiary State Partnership Fund is wound up or dissolved, neither the State Government nor the Apex Society shall have any claim against the Central Society Which purchased the shares, in respect of any loss arising from such purchase; but the Apex society shall be entitled to any money received by the Central society in liquidation proceedings or on dissolution, as the case may be, and such moneys shall be credited to the Principal State Partnership Fund. 58. (i) All moneys received by an Apex society in respect of shares of other societies purchased from the moneys in the Principal State Partnership Fund on redemption of such shares, or by way of dividend or otherwise, shall be credited to that Fund. (2) All moneys received by a Central society in respect of shares of Primary Societies purchased from the moneys in the Sn bsidiary State Partnership Fand on redemption of such shares, or by way of dividends or otherwise, shall in the first instance be credited to that fund, and then transferred to the Apex society Which shall credit them to the Principal State Partnership Fund. (3) All moneys and dividends referred to in sub—section (1) and (2) shall, notwithstanding that the shares stand in the name of the Apex society or the Central society, as the case may be, be paid to the Sate Government. (4) Save as provided in sub-section (3), the State Government shall not be entitled to any other return on the moneys provided by it to an Apex society under section 51. 59. (1) If an Apex society Which has established a Principal State Partnership Fund is wound up or dissolved, all moneys to the credit of, or payable to that Fund, shall be paid to the State Government. (2) If a Central society Which has established a Subsidiary State Partnership Fund is wound up or is dissolved, all moneys to the Credit of or payable to that Fund shall be paid and credited to the Principal State Partnership Fund, from Which it received moneysunder clause (b) of sub-section (2) of Section 52. 60, Any amount to the credit of a Principal State Partnership Fund or a Subsidiary State Partnership Fund Shall not form part of the assets of the Apex society or the Central society as the case may be. 61. Subject to the foregoing provisions of this Chapter— (a) the State Government may enter into an agreement With an Apex society setting out the terms and conditions on which it shall provide moneys to the Apex society for the purpose specified in Section 51. (b) an Apex society may, with the previous approval of the State Government, enter into an agreement with a Central society setting out the terms and conditions on Which it shall provide moneys to that Society from the Principal State Partnership Fund for the purp08e specified in clause (b) of sub-section (2) of section 52. 62. Notwithstanding anything contained in any law for the timebeing in force, but subject to such conditions as the State Govern-ment by general or special order may specify in this behalf, the State Government may— (a) give loans to a society ; (b) guarantee the payment of the principal of debentures issued by a. society, or of interest thereon, or both, or the repayment of the share capital of the society to its member ; or the payment of dividend thereon at such rate as may be Specified by the State ; (c) guarantee the repayment of loans given by a. Co—operative Bank to a society ; (d) guarantee the repayment of the principal, and payment of interest on, loans and advances given by the Reserve Bank of India, or the Industrial Finance Corporation of india, or any other authority constituted under any law for the time being in force ; or (e) provide financial assistance, in any other form (including subsidies), to a society. 63. The provisions of sections 51 to 61 (both inclusive) in thisChapter shall have efl‘ect notwithstanding anything inconsistent therewithcontain in any other law for the time being in force. CHAPTER VI PROPERTY AND FUNDS OF SOCIETIES 64. No part of the funds, other than the net profits of a societyshall be paid by way of bonus or dividend, or otherwise distributedamong its members ; 23 Principal or subsidiary State Part- nership Fund not to form part etc. Agreement by State Govt, and Apex Socie- ties. Other forms of State aid to societies. Provisions of this Chapter to override other laws. Funds not to be divided. 24 Appropria- tion of pro- fits. Reserve Fund. Butrictions on dividend. Contribution to sduca.‘ tional fund of the State Co-operative _ Union, Provided that, a member may be paid remuneration on such Scale as may be laid down by the bye-laws, for. any services rendered by him to the society. 65. (l) A society earning profit, shall calculate the net profit by deducting from the gross profits for the year, all accrued interest which is overdue for more than six months, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taXes and depreciation, and after providing for or writing off bad debts and losses not adjusted against any fund created out of profits. A society may, however add to the net profits for the year, interest accrued in the preceding years, but actually recovered during the year. The net profits thus arrived at, together . with the amount of profits brought forward from the previous year, shall be available for appropriation. (2) A society shall appropriate its profits to the reserve fund or any other funds, for payment of dividends to members on their 2 shares, for contribution to the educational fund of the State Co-operative Union Which may be notified in this behalf by the Registrar, for payment of bonus on the basis of support received from members and 3 persons Who are not members to its business, for payment of honoraria, and towards any other purpose which may be Specified j in the rules or bye-laws. Provided that no part of the profits shall be appropriated except With the approval of the annual general meeting and in conformity With the Act, Rules and Bye-laws. 66. (1) Every society Which does, or can, derive a profit from its transactions, shall maintain a reserve fund. (2) In the case of a Resource or Producer’s society at least one-fifth of the net profit of the Society each year, and in the case of - any other society at least one-tenth of the net profits of the society each year, shall be carried to the Reserve Fund; and such reserve fund 3 shall not be used in the business of the society or may, subject to the provisions of section 70, be invested, as the State Government may by general or special order direct, or may, With the previous sanction ‘ of the Registrar, be used in part for some public purpose likely to promote the objects of this Act, or some such purpose of the State, or of local interest. 67. No society shall pay dividend to its members at the rate exceeding 9 per cent. 68. 1[(1) Every society shall contribute annually towards the Education Fund of the Manipur State Co-operative Union which may be notified in this behalf by the State Government at such rate as may be prescribed and different rate may be preScribed for different societies or classes of societies depending on their financial conditions] ’[(2) Every society shall pay its contribution to the said fund, within two months ,from the date on which its accounts are adopted Amendments 1 and 2. These sub-sections of section 68 were substituted by Manipur Act 12 of ‘ 1984, see. 4, (1) and (2). . . by the general meeting, Any officer wilfully failing to comply with the requirement of this section shall be personally liable for makinggood the amount to the Manipur State Oo-operative Union,”] 69. After providing for the reserve fund as provided in Section 66, and for the educational fund as provided in section 68, a Society may set aside a sum not exceeding twenty 'per cent, of its net prefitsand utilise, with the approval 'of the State» Cesoperative Union as may be notified by the State Government in this behalf from time to time, the ‘whole or part of such sum in contributing to any Co-operative purpose, or any charitable purpose within the meaning of section 2 of the Charitable Endowments Act, 1890 or to any other public purpose. 70. A Society shall invest or deposit its funds in one or more of the following :— (a) in a Central Bank, or the State Co-operative Bank ; (b) in any of the securities specified in section 20 of the Indian Trustee Act, 1882 ; (c) in the shares, or security bonds, or debentures issued by any other society With limited liability ; (d) in any banking company, approved for this purpose by the Registrar, and on such conditions as the Registrar may from time to time impose ; (e) in any other mode permitted by the rules, or by general or special order of the State Government. 71. (1) Any society may estabiish for its employees a provident fund, into Which shall be paid contributions made by its employees and by the society. Such provident fund shall not be used in the business of the society, nor shall it form: part of the assets of the society ; but shall be invested under the provisions of the last preceding section, and shall be administered, in the manner prescribed. (2) Notwithstanding anything contained in the foregoing subsection a provident fund estabiished by a society to which the Employees’ Pro- vident Fund Act, 1952 is applicable shall be governed by the Act; CHAPTER VII MANAGEMENT OF SOCIETIES 72. Subject to the provisions in this Act and the Rules, the final authority of every secie‘ty shall vest in the- general body of members in a general meeting, summoned in such a manner as may be specified in the rules and the bye-I—aws. _ '73. The management ofevery society shall: vest in. a Board consti‘ tuted in accordance With this Act, the rules and bye«laws, Which shall exercise suehipowers and perform such; duties as may be. _eonferred-- or imposed byfthis Act. the rules: and-thebyex-laws. 25 Contribution to public purposes. Investment of funds. Employees’ provident fund. Final an - thority of society. The am:- and unctianl of the Board. 26 ofl‘ice. . . assuming charge of then office. No member can hold office beyond two terms consecutively. This provision Will not apply in the case of . Governmentnominees : Provided that the term of a Board may be extended by general or speclal order of the Registrar 1[till fresh elections are held by the Term 0‘ i (2) The BOard Will have a term of three years from the date of i i i sooiety or nominations are made by the Registrar under sub-section (4). i i Election of _ (3) efore one month of the date of expiry of the terms mentioned the members / insu ction (-), the Co-operative Society shall call an annual general of the Board meeting to elect members of the Board of management and thereupon / the members so elected shall assume the charge of their office on the expiry of the term of theretiring Board : ~ " t 'Provided that ‘the election ’of the members of the Board of management shall be conducted by an independent body or authority \ constituted by the Registrar in the manner prescribed in the rules and b. laws. $133313 ”[(4) If the society fails to call the general meeting to elect the hem of the members of the Board of management as provided in sub-section (2), the Board. Registrar may nominate Such persons as under the rules and bye-laws are qualified for being elected as members of the Board of management and the members so nominated shall replace the elected members of the Board of management on the expiry of their terms. The Board so nominated Will manage the afi'airs of the society for a period specified in the order, Which period may, at the discretion of the Registrar, be extended from time to time ; so, however, that the . ' tal period does not exceed two years in the aggregate.”] Constitution . 73.A. (I) The Board of management of the society shall be constituted with such number of members as may be Specified by the rules and bye-laws : Provided that the members of the scheduled caste, scheduled tribe and small farmers shall proportionately be represented in the Board by reservation of seats in the Board as may be prescribed in the rules and bye-laws: , Provided further that the representatives of employees and workers '[of the concerned oo-operative institution shall] be included in the Board as may be provided in rules and bye-laws. ‘[(2) Where the State Government— (a) has assisted indirectly in the formation or augmentation of the share capital of a society, or (b) has subscribed to the share capital of a co-operative society, or of the Board. w< ~< -v n. ». .; -w .. .. .. . A “ l u a u “ . m M . ) Amendments The word "til ” was substituted for the word "will" by Man, Act 12 of 1984, . sec. 5. . _ These words Were substituted for the Words in the same snb—seetion of the " principal Act by Man. Act 12 of 1984,’ sec. 5 (4), Those words were substituted for the word "may” by Man. Act 12 of1984, sec, 6(i) (2) This subsection was substituted by Man. Act 12 o! 1984, see. 6(ii). . P e e r (c) has guaranteed in repayment of principal and payments of interest on loan and advances to a co-operative society, the State Government or any authority specified by it in this behalf, shall have the right to nominate to the Board, GOVernment officials expert in the line (of the activities of the cooperative societies) to the extent of one third of the total number of its members or thlee members whichever is less: Provided that the nominees of the State Government or of the financing bank or other cooperative institutions shall not be entitled to vote at election.] 1[(3) No person shall, at the same time, be a member of the Board of more than one society of the same type or category and more than three societies of different types or categories.] “[(4) No person shall be eligible for being elected or appointed or continued as a member of the Board or any committee if he is in default in repayment or payment to any society, including co-operative ban 1;, in respect of any loan or any sum due from him either as borrower or surety for a period exceeding three months and no member of the Board or committee who has ceased to hold office as Such under this sub- secution shall be eligible for a period of one year from the date on Which he ceaSed to hold office, for re-election or appoinment as member of the Board or, as the case may be, committee of that society or for election or appointment to the Board or committee of any other society. ”] '74. The qualifications for the appointment of a Manager, Secretary, Accountant or any other officer of a society shall be such as may from time to time, be prescribed. (2) The State Govt may nominate a Government servant not below the rank of class—II officer to work as Managing Director] General Manager/Manager as the case may be of a Co-operative Ins-- titution wherein the State Government have contributed to its share capital, guaranteed loans to the tune of Rs. 3,i= lakhs (Rupees three lakhs) or above or if the society has incurred loss to the extent of 25 p.11. of its paid up capital. The officer so nominated shall be deemed to be on deputation With the society and his salary and allowance as deter- mined by the State Government shall be paid from the fund of‘ the society. The. officer- 80 'deputed shall be the ex-offioio member of the '1- Board and shall have the right to vote. The officer shall be the Chief Executive Officer of the society and have the following assignments ; amongst others: «— (a) I‘o have general ‘[cont-rol ovar the administration of the society. (b) To eonVen'e meetings of the management Board and General Body. " “ I Amendments 1. & 2, (3) and (4) These sub-sections were substituted by Man. Act 12 of 1984, section 6 (ii) 3. The word was inserted by Man. Act 12 of 1984, see. '7 (i). 27 No defaulting member or the surety of a defaulter is eligible to hold office in the Co—op. Institution. Appoint- ment of Manager, Secretary and other office bearers. 28 Constituition of common service per. sonnel of co-operative Institution; Annual general meeting, (c) To receive all moneys and «securities on behalf of the society and to make arrangements for the proper maintenance and custody of cash balance and. other- properties m“ the institution, 7 ('d‘) To endorse and transfer promissory notes, Government seen: rities and to endorse, sign and negotiate cheque and other negotiable instruments on behalf of the institution. (6) To be responsible for the conduct, supervision and manage; ment of the day to day business and 1'[tran8aetion of the sxociety= (f) To sign all deposits, receipts and operate the accounts of _ . thesooiety with banks. (g) To sign bonds, and agreement in favour of the society: (h) To determine the powers, duties and responsibilities of the , employees of the society. (i) To institute, ?[eonducm defend compound or abandon any suit or other' legal proceedings by or against the society or otherwise concerning the affairs of the society and also to compound and allow time for payment or satisfaction of any claims or demand by or against the society: (j) Subject to the regulations if any, Which may be framed by by the Board to enter into negotiations and Sanction coma tracts the value of Which may be determined by the Board from time to time, (k) To delegate all or any of the said powers to an employee or employees of the society subject to the ultimate control and authority being retained by him. (3) The Registrar may constitute a common cadre authority/Soeiety or maintaining cadres of personnel for employment asSeeretaries/Mana. ger-s/other- paid-employees of the Co-operative Institutions, 75. (1) Every society shall, Within a period of threemonths from the closeof the» co-operative year call an annual general meeting of its members : ‘ «3 Provide that, the Begis ar, may by general or special order, extend the period 1- holding such eetings for av’further period not exceeding three mo he: i Provideil further that if in the {pinion of the Registrar, no'such extension is necessaryfiorsuch rnee’tifi/gfi—0is not called by the society within the period specifiettt or Within tf‘éxtended period, if any, granted by 31mm, the Registgefif or any 996011 authoriSed by him may eall§sueh "’ "H Amendments 1: The Word “transaction” was s11bstituted“for the word‘"ettention” by Maniptir Act 12 of1984, sec. 7 (ii). 2. The word “conduct” ayes substituted for the word "conduce” by Menipur Actl? Of 1984, sec. ’7, (iii). meeting in the man prescribed, and that meeting shall be deemed tobe a general meet' g duly called by the society. (2) At every annual general meeting of society, the Board shalllay before the society a balance sheet and profit and loss account forthe year in the manner, prescribed by the Registrar by general orspecial order for any class or classes of societies. Explanation :1—- In the ease of a society not carrying on businessfor profit, an income and expenditureaceount shall be placed before thesociety at the annual general meeting instead of profit and loss account;and all references to profit and loss account, in this Act shall beconstrued in relation to such society as references, resPeetively tothe “income OVer expenditure” and “excess of expenditure overincome”. ' (3) There shall be attached to every balance sheet laid beforethe society in the general meeting, a report by its Board, withrespect to (a) the state of the society’s afi'airs; (b) the amounts, ifany, which it proposes to carry to any reserve either in suchbalance sheet, or any specific balance sheet; and (c) the amounts,if any, which it recommends, should be repaid by way of dividend,bonuS, or honoraria to honorary workers. The Board’s report shall alsodeal with any charges, Which have occurred during the year forWhich the accounts are made up in the nature of society’s» business.The Board’s report shall be signed by its Chairman 'or any othermember authorised to sign on behalf of the Board as may beprescribed by the rules and the bye-laws. (4:) At every'annual general meeting, the balance sheet, the profitand loss account, the auditor’s report and the Board’s report, shallbe placed for adoption, and such other business, including consi-deration and review of loan given to membersof theBoard and theirnear relatives and other employees of the society fortaking 01' directingto take action to recover any due in ease-of resource society Will betransacted as may be laid down in the bye-laws and of Which duenotice has been given. (5) If default is made, in calling a.general meeting within. thepericd,('or, as the case may be,‘ , ' Xprescribed undereub-seemfimg), (3.) or (4), theRegistrar may by order declare, to any officer or member of theBoard whose duty it was to call such a meeting to comply withsub-sections (2), (3) or (4), and who without reasonable excuse failedto comply with any of the aferesaid' subsections disqualified for bein perimi not exeeeding three years, as he may specify in such an orderand, 1f the officer is a servant to the society, impose. penalty on’ him toan amount not exceeding one hundred rupees. Before making an orderunder this sub-section the Registrar shall give, or cause to be given, La reasonable opprtunity to the peracn concerned of showing causeagainst the action proposed to be taken in regard to him. 29‘ 30 Special gene- ral meeting. Act of socie~ ties etc. not to be invalidated by certain defects. (6) Any penalty imposed under sub-section (5) or under the next succeding section, may be recovered in the manner provided by the Code of Criminal Procedure, 1973, for the recovery of fines imposed by a Magistrate, as if such fine was imposed by the Magistrate himself. 1[(7) No defaulting member or his surety, who is in default in payment of any loan or payment of any sum due to any society, including co-operative bank, for a period exceeding three months shall be entitled to vote in the general meeting of the society, including co- operatiVe bank, and no such peracn shall be eligible to be a member of the Board or committee of anyeo-operative institutions.”] 76. (1) A special general meeting may be called at any time ”L... by the Chairman or by a majority of the Directors and shall be called within one month--—- (i) on a, requisition in writing of one-fifth of the members of the society or of members the number of which is specified in the bye-laws for the purpose, whichever is lower, or (ii) at the instance of the Registrar ; or (iii) in the case of a society, which is a member of a federal society. at the instance of the Board or Committee of such Federal Society. (2) Where any officer or a member of the Board, Whose duty it was to call such a. meeting, the Registrar may by order declare such officer or members disqualified for being a member of the Board for such period not exceeding three years, as may specify in such order!; and if the officer is a. servant of the society he may impose on him a. penalty not exceeding one hundred rupees. Before making an order under this sub-section, the Registrar shall-give, or cause to be given a reasonable 'opportunity to the person concerned of showing cause against the action proposed to be taken in regard to him. (3) If a. special general meeting of a society is not called in accordance With the requisition referred to in sub-seetion (1) the Registrar or any persan authorised by him in this behalf, shall have power to call such meeting, and that meeing shall be deemed to be a meeting duly called by a. Board. (4) The Registrar shall have poWe: to order that the expenditure incurred in calling a. meeting under snb-section (3), shall be paid out of the funds of the society or by such persons who, in the opinion of the Registrar, were responsible for the refusal or failure to convene the meeting.‘ - ' 77. (1) No act of the society or cominittee or any officer done in good faith in pursuance of the business of the society shall be deemed to be invalid by reason only of some'defect subsequently discovered in the organisationpf the smiety,‘ or. in- the constitution of the Board, 01‘ in the appointment or electionvof an offi‘eer, or on the ground that such officer was disqualified for his office. A Amendment 1. These words were substituted for the words in the same sub-section of the Principal Act by» Manipur Act 12 of 1984, sec. 8. 2. The words "of the time” were omitted by Man. Act 12 of 1984, see. 9. 31 (2) No Act done in good faith by any person appointed under this Act, the rules and the bye-laws shall be invalid merely by reasons-of the fact that his appointment has been cancelled by or in consequence of any order Subsequently passed under ‘ this Act, rules and the bye-laws. ' ' ‘ (3) The Registrar shall be the authority to decide if any act was done in good faith in pursuance-of the business of the society ; and his decision thereon shallbe final. ‘ 78. (1) If, in the opinion, of the Registrar, the Board of any\ Supersession society persistently makes default, or is negligent, in the performance '3 0f Bwrd- of the duties imposed on it by this Act ‘or the Rules of the bye-laws, or commits any act Which is prejudicial to the interests, of the Society or its members, or Wiilfully disobeys directions issued by him for' the purposes of securing proper implementation of Co-operative production; and other development programmes approved or undertaken by Govern-sfi ment, or is otherwise not functioning properly, ,the Registrar may, after giving the Board an opportunity of stating its objects, (if any). Within fifteen days from the date of issue of notice by order in writing remove the Board, and :—- iv" (a) appoint a Board, consisting of three or more members of the society, in its place, or y appoint one or more administrators, Who need not be members of the society, to manage the affairs of the Society for a. period (not exceeding 'two years) specified in the order. Which period may, at the discretion of the Registrar, 'be extended from time to time, so however that the total period does not exceed f 111' yeers in the aggre ate. W (2) The Board or administrator so appointed shall, subject to the control of the Registrar and to such instructions as he, may from time to time give, have power to exercise all or any of the functions of the Board or of any officer of the society, and take all such action as may be required in the interest of the Society. ' (3) If at any time during any period, Wfiended ~1;_e1'iod]referred to in sub-section (1;, it appears to the Registrar, that it is no longer neceSSary to continue to'carry on the affairs of the society as aforesaid, the Registrar, may by an order published in the Official Gazette, direct that the management shall terminate ; and on such order being made, the management of the Society shall be handed over to a new Board duly constituted. (4) The Committee or administrator shall, at the expiry or termi- nation of its or his terms of office. arrange for the constitution of a. new Board in accordance with the bye-Iaws of the society. (5) A11 acts, done or proposed to be done by the Commi‘tee or administrator during the period the affairs of the society carried on by the Committee or administrator appointedflunder. subséctionzu), shall be binding on the new Board; ' I ' 32, Board of ma- nagemeat automatic disqualifica- tion. Registrar's power to enuul the pro- ceedings of Co-cpez‘ative Institution. Power to suspend or dissolve the existing Board or to recons- titute a new Board, (6) The entire Board of Directors of a Central Co-operatve Bank, Urban Co-operati-ve Bank and Primary Land Development Bank and Primary Agricultural Credit Co-operative Society shall stand automa- tically disqualified if the amount of default or the total number of de- faulters exceeds 60 13.0. of the total demand or the total number of indeb‘ ted societies/membere in the case of Central Co-operative Bank, Urban Co-operative Bank and 70 p. c. of the tote} demaind/or the total number of indebted members in'the case of primary Agricultural credit co-ope: rative Societies for a. continuous period of 2 (two) years. (7) On being discovered or declared to be disqualified under sub-section (6). The Registrar shall appoint a Speeial officer who should be charged with the responsibility for managing the affairs of such Banks/Primary Society as long as is necessary but not exceeding 2 (two) years. The officer. appointed in‘ the Bank or in the society shall be Vested with the powers of Registrar under section 156'in respect of individual defaulters at the primary level. If the position of the overdues of the institutions whose manage- ment is entrusted to the special officer does not improve even after the tenure of two years, the management of the institution shall not be res. tored to the elected representative and alternative intstitutional arrange- ment should be made for the provision of agricultural credit and the tenure of the office of the special officer may be extended by one year. Necessary arrangement should be made for liquidation of the society and for extension of the area. of an adjoining viable society so as to enable the. latter to meet the credit needs of the non-defaulters and new members from the area or the Bank may by-pass the society and may undertake to finance the cultivators directly through its branch. (8) ‘All the Cooperative Institutions registered are to submit proceedings of the general body, Board of management and any other committees and subcommittees to the Registrar, Oo-operetive Societies, Manipur within 15 (fifteen) days from the date of the meeting. If in the opinion of the Registrar there is anything in the proceedings which is contrary to the provisions of the Act and Rules and the bye-laws of the society. he may annul such proceedings by an order in writing but of course he Ihall issue a show cause notiee to the concerned officer or the Board etc, 1['78.A. Notwithstanding anything contained in this Act, if the State Government on receipt of a report from the Registrar, Co-operative Societies or otherwise is satisfied that- the manage- ment of a. Society has not been in accordance with the provisions of the Act and creditors of the societies have, for justifiable reasons, raised repeated objections to the method and manner of the manage ment and further that, the management of society, if allowed to continue as Such may likely cause irreparable loss and injury to the Amendment 1: Section 78A was inserted newly by Manipur Act 7 of 1985, see: 2_ society and the public in general, the State Government may, by a. notification in the Official Gazette susgengiihgmfiqard for a period not not exceedingfli2 months at a time and (three years in the *WhOlBQOI' dissolve the Bohrd: 6‘ ’ ““vW‘yw ’ V ' ' Provided that When the Board is suspended or dissolved, or where term of such a Board becomes expired, the State Government may appoint as Adminstrator to exercise and perform the powers and duties of the Board during the period of suSpension 01- till a new Board is reconstituted as the case may be.] ’79. (1) The Registrar may direct any Society or class of Rocietiee, to keep proper books of accounts with Teepeet to all sums of money received and expended by the society and the matters, in respect of Which the receipt and expenditure take place, all sales and purchases of goods by the society, and the assets and liabilities of the society, and to furnish such statements and returns and to produce such records as may be required from time to time ; and the officer or officers of the Society shall be bound to comply with his order within the period specified therein. (2) Where any society is required to take any action under this Act, the rules or bye-iaws, or to comply with an ordervmade under the foregoing sub-section and such action is not taken :— (a) within the time provided in this Act, the rules or the bye-laws, or the order, as the case may be, or (b) where no time is so provided, within such time, having regard to the nature and extent of the action to be taken as the Registrar may specify by notice in writing, the B egistrar may himself, or through a person authorised- by him, take such action, at the expense of the society ; and such expense shall be recoverable from the society as if it were an arrear of land revenue. (3) Where the Registrar takes action under sub-section (‘2), the Registrar may call upon the officer or officers of the society, whom he considers to be responsible for not cemplying with the provisions of this Act, the rules or the bye-laws, or the order made under subsec- tion (1), and, after giving Such officer or officers an opportunity of being, heard, may require him or them to pay to the society the expenSee paidbr payable by it to the State Government as a result of their failure to take aetion anti to pay to the assete of the society such sum not exceeding twenty-five rupees as the Registrar may think fit, for each day until the Registrar’s directions are carried out. 80. (1) Where the Registrar is satisfied that the books and records of a society are likely to be suppressed, tempered with or destroyed, or the funds and property of a Society are likely to be misappropriated or misapplied, the Registrar or the person antheriised by him may apply to therEXecutiVe Magistrate within whose jurist diction the society is functioning for seizing and taking posseseienof the records and property of the society. Registrar’s power to en- force perfor- mance of obligations. Registrar’s power ~.to seize recotde etc. 34 Audit, Rectification 0’5 defeats in accounts. 0 (2\ On receipt of an application under sub-subtion (1), the Magistrate may authorise any police offier, not below the rank of a Sub-lnspector, to enter and search any place where the recerds and property are kept or likely to be kept, and to seize them and hand over possesion thereof to the Registrar or the person authorised by him, as the case may be. CHAPTER VIII AUDIT, ENQUIRY, INSPECTION AND SUPERVISION 81. (1) The Registrar shall audit, or cause to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every society at least once in a year. (2) The audit under the foregoing sub-section shall include an examination of overdue debts, if aay, the verification of the cash balance and securities, and a. valuation of the assets and liabilities of the Society. (3) The Registrar or the person authorised shall, fix the purpose of audit, at all times have access to all the books, accounts, documents, papers, securities, cash and other properties belonging to, or in the custody of the society, and may summon any person in possession or res- ponsible for the custody of any such books. accounts, documents, papers, securities, cash or other properties, to produce the same at any place either at the headquarters of the society or any branch thereof. (4) Every person Who is, or has at any time been, an officer or employee of the society, and every member and past member of the society, shall furnish such information in regard to the transactions and working of the society as the Registrar, or the person authorised by him, may require. (5) The auditor appointed under sub-section (1) shall have the right to receive all notices, and every communication relating to the annual general meeting of the society and to attend such meeting and to be heard thereat, in respect of any part of the business with which he is concerned as auditor. (6) If it appears to the Registrar, on any application by a society or otherwise, that it is necessary or expedient to te—audit any account of the society, the Registrar may, by order provide for such re-audit and the provisions of this Act applicable to audit of account of the society shall apply to such re-audit. 82. 1f the result of the audit held under the last preceding section disclosed any defects in the working of the society, the society shall Within three months from the date of the audit report, explain to the Registrar the defects or the irregularities, pointed out by the auditor and take steps to rectify the defects and to remedy irregularities and report to the Registrar, the action taken by it, thereon. The Registrar may also make an order directing the society or its officers to take such action, as may be specified in the order to remedy the defects, within the time specified therein. 83. (l) The Registrar may, of his own motion, by himself, or by a person duly authorised by him in writing in this behalf, hold an inqulry into the constitution, working and financial conditions of a society. (2) The Registrar shall hold such an inquiry— (a) on the requisition of amember society in the case of an affiliating society, or (b) 011 the a lication b the majority of the members of thepp , y Board of the somety, or (e) on the application of one-third of the members of the society, or (d) on the requisition of the creditors repreSenting half of the borrowed capital of the society. (3) (a) All officers, members and past members of the society in respect of which an enquiry is held, and any other person who, in the opinion of the officer holding the inquiry is in possession of informa- tion. books and papers relating to the Society, shall furnish such infor- mation as is in their possession,and produce all books and papers relating to the society which are in their custody or power and otherwise give to the officer holding an inquiry all assistance in connection with the inquiry which they can reaSOnably give. (b) If any such person refuses to produce to the Registrar or any person authorised by him under sub—section (1), any book or papers which it is his duty under clause (a) to produce or to answer any question which is put to him by the Registrar 01' the persan authorised by the Registrar in pursuance of sub-elause (a) the Registrar or the person authorised by the Registrar may certify the refusal and the Registrar, after hearing any statement Which may be olfered in defence, punish the defaulter With a. penalty not exceeding five hundred rupees. Any sum imposed as penalty under this section shall on the application _ by the Registrar or the person authorised by him, to a Magistrate having jurisdiction, be recoverable by the Magistrate as if it were a fine imposed by himself. (4) The remit of any inquiry under this section shall be commu- nicated to the society whose affairs have been investigated. (5) It shall be eempetent for the the Registrar to withdraw any inquiry from the officer to whom it is entrusted, and to hold the inquiry himself 01' entrust it to any other person as he deems fit. 84. 1[(1) The Registrar may, of his own motion or on the appli- cation of a creditor of 'a society inspect or direct any person, authorised by him by order in writing in this behalf, to inspect books, cash and other property of the society : Amendments 1, The subsection was substituted for the Subsection (1) of section 84 byMenipur Act No. 12 of 1984, sootions 10. (l), ' ' 35 Inquiry by Registrar. Inspection of books of indebted society. 36% Costs of in- quiry and impaction. Recovery of 003 ts, tegistrar to bring defects disclosed in inquiry or inspection to notice of society. Provided that no such inspection shall be made on the application of a creditor unless the applicant satisfies the Begistrar that a debt is still due to him and that he has demanded yayment thereof and has not received satifaetion Within a rezieenable time] 3[(2) The Registrar ehali eemmunieate the results of" any such inSpeetion,—~ (a) where the insyection is made of his awn motion, to the society ; {b} Where the inspeetion is made on the applicatien 03" a credi~ tor, to the crediter and the society.”] {3) It shall be competent for the Registrar to Withdraw any nrder 0i inSpeetieu from the officer to whom it is entrusted, and to inspect himself er entrust it te any other Eersjn as he deems nt. 85. (1) Where an inquiry is iaeis} under section 83 or an insPeetion is made under the East preceding section; the Registrar may apportion the cost or such part of the coasts, as he may think just between the society, the members or creditors demanding the inquiry or inspection, the officers or former officers and the members or past members or the estates of the deceased members of the society ; Provided that ~~— (a) no order 'of *[apportinnment of the costs shall be made under this section, unless the society or persons or the legal representative of the deceased person liable to pay the costs thereunder, has or have been heard, or has or have had a reasonable opportunity of being heard ; (b) the Registrar shalll state in writing the grounds on Which the costs are apportioned. (2) No eXpenditure from the funds of a society shall be incurred, for the ,piirpese 0f defraying any ensts in. support of any appeal preferred by any person other than the society against an order made under the foregoing sub-section. 86. Any sum awarded by way of costs under the last preceding section, may be ieeevered, on any application by the Registrar to a Magistrate having jurisdiction in the place where the person from Whnm the money is elaimable ??mides er carries on business, and such Magistrate shall proceed to recover the same in the same manner as if it were a fine imposed by himself. 87. (1) If the result of any inquiry held under section 83 or an . inepection made under section 84 discloses any defects in tho Amendments This subsection was substituted fer sub-section (2) ef section 84 by Manipur Act 12 of 1984, sec.10, (2). The Word “apportionment” Was substituted for the word “appointment” by Menipur Act 12 of 1984, See. 11. 9a. constitution, working anti financial condition 01' the books of a snciety, the Registar may bring such defects t0 the notice of the society. The Registar may alse make an order directing the society or its officers to take such action as may be syeeifieai in the order to remedy the defects, within the time syeeified therein. (2) The society concerned may, Within sixty days from the date of any order made by the Registar under the foregoing subsection, appeal against it to the State Government. (3) The State Government may, in deciding the agipeal, annui, reverse, modify 0?; confirm, the order of the Registrar. (4:) If a society fails to rectify the defects disclosed in the course 0f 01‘ as a. result of an audit under seetien 81 or fails te-rectiiy the defects as directed by the It ‘istrai‘, and where no appeal has been made Vt: t0 the State Government Within the time specified in sub—seetion (3) or where on the appeal so 1’: ade the State Governi‘nent has not annuled, reversed or modified the order, the Registrar may himseii‘ take steps to have the defects rectified, and may recover the costs i’mm the officer or officers of the society Who, in his opinion, has or have failed to rectify the defects. 88. (1) Where in the course of or as a result of an audit under section 81 or an inquiry under section 83 or an inspection under section 8% or the winding up of a Society, the Registrar is satisfied en the basis of the repett made by the auditor or the person authorised to make inquiry under section 83 or the person authorised to inspect the books under section 84 or the liquidator under section 105 0: otherwise that any person who has taken any part in the ovganisation or management of the society or any deeeased or past 0‘6 {aresent officer of the saceity has Within a neriod of five years prior to the date of such audit, inquiry, inepeetion, or order for Windinv up, miSapplied 01' retained or become liable or accountable for, any money or breach of trust in relation to the society, the Registrar 0:- person authorised by him in that behalf may frame charges against such person 01' persons, and after» giving reasonable opportunity to the persnn concerned and in the case ef a deceased person to his representative Who inherits his estate, to answer the charge, make an order requiring him to repay or restore the money or property at any part thereof, With interest at such rate as the Regi» star or the person authorised under this section may determine, 01‘ to contribute such sum to the assets of the Society by way’ef compensation in regard to the misapplieatien, retentien, misfeasanee or breach of trust as he may determine. (‘2) The Registrar or the persan authorised under subsection {1) in mating any order under this section, may provide therein for the payment of the cost or any part thereof, as he thinks just, and he may direct that such cost or any part thereof shall be recovered from the person. against whom the order has been issued. (3) This section shall apply, notwithstanding that the act is one for which the person concerned may. be criminally responsible. C) ": ‘ 1 Power of the Rigistar to asfless dama- ges against delinquent promoters, etc. 38 Power to en- force atten- dance. etc“ Constitution of recogni- tion of fede- ral authority to supervise working of societies: Dispute. 89. The Register or the person authorised by him When acting under section, 84 or 88 shall have the power to summon and enforce the attendance of any person to give evidence 01‘ to compel the produ— etlon of any document or other material object by the same means and m the same manner as is provided in the case of a Civil Court under the Code of Civil Procedure, 1908. '90- (1) The State Government may, by general or special order, r30.11111‘6 of a society or a class of societies to make contribution of such sum every year as may be fixed by the Registrar towards the recoupment 9f expenditure Which the State Government or any person authorised m that behalf has incurred or is likely to incur, in respect of supervision of societies. (2) A society to which sub-section (1) is applicable shall pay to such authority such fee as may be prescribed Within a reasonable time and if it fails to pay such fee Within a resonable time, the authority may recover it as if it were an. arrear of land revenue. CHAPTER 1X DISPUTES AND ARBITRATION 91. (1) Notwithstanding anything contained in any other law for the time being in force, any dispute touching the constitution, election of the office bearers, conduct of general meeting, management or business of a society shall be referred by any of the parties of the . dispute, or by a federal society to Which the society is affiliated, or I by a. creditor of the society, to the Registrar, if both the parties thereto are one or other of the following :—- (a) a seeiety, its committee, any past committee; any past or 5 present servant 01' nominee, heir or legal repreSCntat-ive ol‘ 3 any deceased officer, deceased agent or deceased servant ol' the. society, or the Liquidator of the society ; (b) a member, past member or a. person claiming through :1. a member, past member 91' a éeceased member of a Society, or a - society Which is a member of the society ; (e) a. person, othel‘ than a member of the society, Who has been granted a loan by the society, or with whom the society baa or had transactions under the provisions of Section 43, and any person claiming through such person ; (d) a Surety of a member, past member or a deceasad membel, or a person other than a member who has been granted aloan by the society under section 45, Whether such a surety is or is not a. member of the society ; (e) any other society, or a, Liquidator of such society. (‘3) When any question arises Whether for the purposes of the foregoing sub-Section, a matter referred to for decision is a, dispute or not, the question shall be considered by the Registrar, whoSe decision shall be final. (3) Save as otherwise provided under Sub-section (3) of section 93 no Court shall have jurisdiction to entertain any suit or other procee— dings in respect of any dispute referred to in sub-section (1). Explanation 1-—A dispute between the Liquidator of a society and the members (including past member or nominee, heirs or legal represen- tatives of deceased members) of the same society shall not be referred to the Registrar under the provision of sub-seetion (1). Explanation 2-For the purposes of this sub-section a dispute shall include :—— (i) a~c§aim by or against a society for any debt or demand due to it from a member or due from it to a member, past member or the nominee, heir or legal representative of a deceased member, or servant or employee Whether such a. debt or demand be admited 01' not ; (ii) a. claim by surety for any sum or demand due to him from the principal borrower in respect of a. loan by a society and recovered from the Surety owing to the default of the principal borrower, Whether such a. sum or demand be admitted or not ; (iii) a claim by a, society for any loss caused to it by a. member, past member, or decased member, by any officer, past officer or deceased officer, by any agent, past agent or deceased agent, or by any servant, past servant or deceased servant, or by its committee, past or present, Whether such loss be admitted or not ; (iv) a. refusal or failure by a. member, past member or a, nominee heir or legal repreSentative of a deceased member to deliver possession of a. land or any other asset resumed by it for breach of conditions of the assignment. 92. (1) Notwithstanding anything contained in the Indian Limi- tation Act, 1963, but subject to the specific provisions made in this Act, the period of limitation in the case of a. diapute referred to the Registrar under the last proceedings section shall— (a) when the disPute relates to the recovery of any sum, in- cluding interest thereon, due to a. society by a. member thereof, be computed from the date on which such member dies or ceaSes to be a, member of the society ; (b) When the disputeis between a. society or its committee, and any past committee, any past or preSent officer, or past or present agent, 01' past or present servant or the nominee, 39 Limitation 40 Settlement of dispute, heir or legal representative of a deceased officer; deceased agent 01‘ (ieoeased servant of the society, or a member, or past member, or the nominee, heir or legal representative of a deceased member, and when the ‘dispute relates to any act of omission on the part of either party to the dispute, be :ix years from the date on Which the act of omission With reference to which the dispute arose, took place ; (0) when the dispute is in respect of any matter touching the eenstitution, management or business of a. society which has ordered to be Wound up under section £02, ox‘in respect of which a- nominated committee or an administrator has been appointed under section 78 be six years from the date of the order iasued under Section 102, or section 78 as the case may be ; ((1) when the dispute is in respect of an election of an office- bearer of the societv, be one month from the date of the declaration of the result of the election. (2) The period of limitation in the case of any other dispute except these mentioned in the foregoing snb-section which are required to be referred to the Registrar under the last preceding Section shall be regulated by the provisions of the Indian Limitatien Act, 1963, as if the dispute were a suit, and the Registrar 3. Civil Court. (3) Notwithstanding anything contained in sub-seetions (1) and (2) the Registrar may admit a dispute after the expiry of the limitation period, if the applicant satisfies,the Registrar that he had sufficient cause for not referring the dispute within such period and the dispute so admitted shall be a dispute which shall not be barred on the ground that the period of limitation had expired. 93. If the Registraris satisfied that any matter referred to him or brought to his notice is a dispute within the meaning of section 91 the Registrar shall, subject to the Ruies, decide the dispute himself or refer it for disposal to a nominee or a Board of nominees, appointed by the Registrar. (2) Where any dispute is referred under the foregoing sub-section for, decision to the Registrar’s nominee or Board of nominees the Registrar may at any time, for reasons to be recorded in writing, With- draw such dispute from his nominee or board of nominees, and may decide the dispute himself“ or refer it again for decieinn to any other nominee, or board of nominees appointed by him. (3) Notwithstandinganything contained in section 91 the Registrar may, if he thinks fit, suspend proceedings in regard to any dispute, if the question at issue between a society and a claimant or between different claimants, is one involving complicated question of law and fact, until the question has been tried by a .reguiar suit instituted by one of the parties or by the society. If any such suit is not instituted Within two months from the Registrar’s order suspending proceeding, the Registrar shall take action as is provided in sub-seotion (1) 94. (1) The Registrar, or his nominee or board of nominees, hearing a. dispute under the last preceding section shall hear the dispute in the manner prescribed, and shall have power to summon and enforce attendance of witnesses including the parties interesteci or any of them and to oompel them to give evidence on oath, affirmation or affidevit, and to compel the production of documents by the same mean: and as far as possible in the same manner, as is provided in the ease of a Civil Court by the Code of Civil Procedure, 1908. (2) Except with the permission of the Registrar or his nominee or boardof nominees, as the case may be no party shall be representative at the hearing of a dispute by a legal practitioner. (3) (a) If the Registrar or his nominee or board of nominees is satisfied that a person, whether he be a member of the society or not, has acquired any interest in the property of any person who is a party to a. dispute, he may order that the person Who has acquired the interest in he property may join as a party to the dispute ; and any decision that may be passed on the reference by the Registrar or his nominee or board of nominees shall be binding on the party so joined in the same manner as if, he were an original party to the dispute. (b) Where a dispute has been instituted in the name of the wrong person or where all the defendants have not been included, the Registrar or his nominee or board of nominees may at any stage of the hearing of the dispute. if satisfied that the mistake was bonafide, order any other person to be substituted or added as a plaintifi or a defendant upon such tems as he think: just. (0) The Registrar, or his nominee or board of nominees may, at any stage of the proceedings, either upon or without the application of either party, and on such terms, as may appear to the Registrar, his nominee or board of nominees, as the case may be to be just, order that the name of any party improperly joined whether as plantifi' or defendant, be struck out, and that the name of any person who ought to have been joined whether as plaintifi' or defendant or whose presence before the Registrar, hie nominee or board of nominees, as the case may be, may be necessary in order to enable the Registrar or his nominee or the board of nominees efi'eetually and completely to adjudicate upon and settle all the questions involved in the dispute, be added. ((1) Any person who is a party to the dispute and entitled to more than one relief in respect of the same cause of action may claim all or any of such reliefs ; but if he omits to claim for all Iueh reliefs, he shall not "forward a. claim for any relief 80;.omitted except with the" leave of the Registrar, his nominee or board of nominees. 41 Procedure for settle- ment of dis- putes and power of Registrar, his nomineo or board of nominees. 42 Attachment before award (and interlo- cutory or- ders). 95 (i) Where a dispute has been referred to the Registrar 01 his nasminee or Board of Nominees under sention 93 or under section ion: or where the Registrar or the person authorised under section 88 heart; a person against whom charges are framed under that section, tho‘E Registrar or his nominee or board of nomieees, as the case may be, the; person so authorised under section 88 if satisfied on enquiry or otherwisé‘, that a party to sueh dispute or against Whom proceedings are pending under section 88 with ‘ [intent to defeat] delay or obstruct the execution; of any award or the carrying out of any order that may be made— E (1) is about to diSpose of whole or any part of his property, "g (b) is about to remove the whole or any part of his propert.f from the jurisdiction of the Registrar, may, unless adequa ; security is furnished, direct conditional attachment of the said; properéy, and such attachment shall have the same efiect 1% if made by a competent Civil Court. 2 (2) Where the Registrar, his nominee or board of nominees 03% the person authoriSed under section 88 directs attachment of properta under the foregoing subaaeution, he shall issue a notice calling upon the; person Whose property is 30 attached to furnish. security Which me thinks adequate within a. specified period ; end if the person fails tcé provide the security so demanded, the Registrar or his nominee 032% board of nominees or as the case may he, the person authorised undoé section 88 may r-onfirm the order and, after the decision in the dispute; or the completion of the proceedings referred to in the foregoing subé section may direct the disposal of the property so attached towards thug claim if awarded. (3) Attachment made under this section shall not efi‘eet tho righting, subsisting prior to the attachment of the property, of persons ME. parties to the proceedings in connection with which the attachmentlté made, or bar any person holding a. decree against the person whoué property is so attached from applying for the sale of the property undné the attachment in execution of such decree. g (4) The Registrar or his nominee or board of nominees or the; person authorised under section 88, as the case may be, may in ordcg to prevent the ends of justice being defeated make such interlocutorg orders pending the decision in a diapute referred to in sub-aection (If as may appear to be just and convenient. “ m u m in m e n , e Amendment- 1. These words wave mbstituted for the words “intent the defeat” by Man, A"? No. 12 of 1984. Section l2. ‘ 96, 3{The Registrar or his nominee or the board of nominees may, after giving the parties to the dispute reasonable opportunity of being heard, make an award on the dispute, on the expenses incurred by the parties to the dispute in connection With the proceedings, and the fees and expenses payable to the Registrar or his nominee or, as the case may be, board of nominees ; and such an award shall not be invalid merely on the ground that it was made after the expiry of the period fixed for deciding the dispute by the Registrar, and shall subject to appeal or review or revision, be binding on the parties to the disPnte.”] 97: Any party aggrieved by any decision of the. Registrar or his nominee or board of nominees under the last preceding Section, or an order passed under Section 95 may Within two months from the date of the decision or order, appeal to the Tribunal. 98. Every order passed by the Registrar or a, person authorised by him under sectien 88 or by the Registrar, his nominee or board of nominees under section 95 or 9,}, every order passed in appeal under the last preceding section, every order passed by a, Liquidator under section 105, every order passed by the State Government in appeal against orders passed under section 105 and every order passed in revision under section 154:, shall, if not carried out— (a) on a certificate signed by the Registrar or a, Liquidator, be deemed to be a decree of a. Civil Court, and shall be executed in the same manner as a. decreee of such court, or (b? be executed according to the law and under the rules for the time being in force for the recovery of arrears of land revenue ; Provided that any application for the reQOVery in such manner of any sum shall be made to the Collector, and shall be accompanied by a, certificate signed by the Registrar, such application shall be made within twelve years from the date fixed in the order and if no such date is fixed, from the date of the order. 99. Any private transfer 01' delivery of, or encumbrance or charge 011, property made or created after the issue of the certificate of the Registrar or Liquidator, as the case may be, under section 98 shall be null and void as against the society on Whose application the said certificate Was issued. 100. (1) When in any execution of an order sought to be execu- ted under section 98, any property cannot be sold for want of buyers, if such property is in occupancy of the defaulter or some perSOn in his behalf, or of some person claiming under a. title created by the defaulter subsequently to the iSSue of the certificate of the Registrar or Liquidator under clause (a) or (b) of section 98, the Court, Collector Amendments 1.. These words were substituted for words in the same section 91' the principal Act by Men, Act 12 of 1984, section 13, 4?) Decision of Register or his nominee or board of nominees. Appeal aga- inst decision of Register 01‘ his nomi- nee or board of nominees. Money how recovered. Private transfer of property made after issue of certificate void againlt society. Transfer of property which een- not be sold. N “ “3 » or the Registrar, as the case may he. may, notwithstanding anything contained in any law for the time being in mate, direet that the eaid pfflperty 01‘ any yortion. thereef shalt he treheiferred t0 the Society Which has applied for the ezeeutiea of the mid order, in the manner prescribed. (2) Where property is tr. nsterreai to that» society under the fore- going sub-sec tien, or where 'px‘operty is 801d under section 98, the Court, the Collector 01' the Registrar, as the eeSe be, may, in accordance With the rules, piece the Society or the purehz-teer, as the (332.5272 may be, in possession of the property transferred or 3036; (3) Subject to such rules as may Ee made is this heheif, and to any rights, encumbrances, eharges 01’ eguitiee QaWfiLHy subsisting in favour of any person, such praqaerty or portion theseof shall be held under sub-section (1) by the said seciety on such terms and conditions as may be agreed upon between the Gourt, the Coileeter or the Registxet, as the case may be, and the aii society. Subject to the general or special orders of the State Govei‘hment, the {‘Soiieeter or the Registrar may delegate to an officer, net below the rank of the Sub-S‘ieputy Collector or the Assistant Registrar, powers exercisab‘ie by the Collector 01‘ the Registrar under this seeti=;n. 5”“,st D; 101. (1) Notwithstam‘ii‘hg eseything centaihed in sections. 91, 93 wrap 1mm. and 98 on an apphcation mace by a resource society, undertaking the financing of agriculturists towerds providing of their seesanal repuire= ments, for recovery ef arears ef any sum advanced and on its furnishing a statement of accounts in respect of the arrears, the Registrar, may, after making such inquiries as he deems fit, grant a. certificate fer the recOVery of the amouh‘t stated therein to he due as arrears of revenue. (.2) Where the Registrar is satisfied that e. reeuurce society has failed to take action under the feregeing eub-seetion in respect of arrears of any sum advanced by it to any of its mem bers, the Registrar may, of his own motion, after making such inquiries as he deems fit, grant a certificate for the recovery of the amount stated. therein to be due as arrears of revenue, and such certificate shall. be deemed. to haVe been issued at if on an appiieetien made by the Society concerned. (3) A certificate granted by the Begietrar under enb-Seetion (1) or (2) shall be final and a conclusive proof of the arrears stated to be due therein, and the same shall be recoverabie aceording to the law for thejtime being in force for the recovery of land revenue. (4) Notwithstanding anything contained in this Act, the provis sions of subsections (1), (2) and (3} shah, mutatis mutandie, ePPEY E to the I'eeeVery of medium term leaner! : (JHAPTEB X LIQUIDATION 1(32. (1) If the RegiStrar,— (3.) after an inquiry has been held under section 8 or an inspection has been made under section 84c 01' en the report of the Auditor auditing the accounts of the society, 01' (b) on receipt of an application made upon a. resolution carried by three-fourths of the members of the society present at a special general meeting called for the purpose, 01' (c) of his own motion, in the ease of a society Which» (i) has not commenced working, or (ii) has ceased working, or (iii) possessas shares or members’ (iepoeits not exceedihg five hundred rupees, or (iv) has ceased to comply With any couditiens as to re- gistration and management in this Act or the rules or the bye-laws, is of the opinion that a. society ought to be wound up, he may-issue an interim order directing it “be be Wound up. (2) A copy of such order made under sub-section (1) shall be communicated, in the prescribed manner, to the society calling upon it to submit its exyienebion to the Registrar Within a, month from the date of the issue of such order, and the Registrar, on giving an opportu- nity to the society of being heard, may issue a. final order, vacating or confirming the interim order. 103. When an interim order is passed under the last preceding seetion or a. final order is passed under that section for the winding up of a. society, the Registrar, may, in accordance with the rules, appoint a persen to be Liquidator of the society, and fix his remuneration. (2) 0n issue of the interim order, the officers of the society shall hand over to the Liquidator the custody and control of all the property, effects and actionable claims to which the society ie or appear to be entitled and of all books, records and ether documents pertaining te the business of the society and, shah have no access to any of them, (3) When a final order is passed eenfirming the interim order, the officers of the society shall vacate their offices, and while the Winding up order remains in force, the general body of the society shall not exercise any power. (4) The person appointed under this section as Liquidator shall, subject to the general control of the Registrar, exerciSe 3.11 or any of the powers mentioned in section 105. The Registrar may remove , such person and, 1.9931118 another in his: place, Witheut assigning any reason. Winding L11). Appoint- ment of Liquidator . 46 Appeal against order of Winding up. ?owers of Liquidatoy (5) The Whole of the assets of the society shall on the appoint- ment of Liqiiidator under this section vest in such Liquidator, and notwithstanding anything contained in any law for the time being in force, if any immovable property is held by a Liquidator on behalf of the Society, the title over the land shall be completed as soon as the mutation of the name of his office is effected, and no Court shell question the title on the ground of dispossession, want of possession or physical delivery of possession. (6) In the event of the interim order being vacated, the person appointed as Liquidator shall hand over the property, effects and actionable claims and books. records and ether documents of the society to the officers who had delivered the same to him. The acts done, and the proceedings shall, after the interim order has been cancelled under the preceding section, be continued by the officers of the society. 104. (1) The Board, or any member, of the society ordered to be wound up, may, within two months from the date of the issue of the order made under section 102, appeal to the State Government : Provided that no appeal shall lie against an order issued under sub-olause (i), (ii), (iii) of clause (0) of sub-section (1) of Section 102. (2) No appeal from a. member under this section shall be entertained unless it is accompanied by such sum as security for the costs of hearing the appeal, as may be prescribed. 105. The Liquidator appointed under section 103 shall have power subject to the rules and the general supervision, control and direction of the Register :~—- (2,) to institute and defend any suit and other legal procee— dings civil or criminal, on behalf of the society, in the name of his office ; (b) to carry on the business of the Society, So far as may be necesmry for the beneficial winding up of the same ; (c) to sell the immovable and movable property and actionn-r ble claims of the society by public auction 01‘ private contract With power to transfer the Whole or part thereof to any person or body corporate or sell the same in parcels ; (d) to raise, on the security of the assets 9f the society, any money required ; (e) to investigate all claims against the 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 rateably according to the amount of such debts, the surplus being applied in pay‘= ment of interest from the date of liquidation at a rate to be approved by the Registrar, but not exceeding the contract rates. ; (f) (g) (h) (i) (i) (k) (1) (m), (n) (0) to make any compromise or arrangement With creditors or perfilons claiming to be creditors, or having or alleging them- selves to haVe any claims, present or future, whereby the Soeiety may be rendered liable; 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 the society and a. contributory or alleged contributory or other debtor or person apprehending liabl- lity to the society, and all questions in any way relatmg to or efl'eeting the assets or the Winding up of the soelety on Such terms as may be agreed, and take any seculr-lty for the discharge of any such call, liability, debt, or clam], and give a complete discharge in respect thereof ; to determine from time to time, after giving an opportunity to answer the claim, the contribution to be made or re- maining to be made by the members or past members or by the estates, nominees, heirs or legal representatives of deceased members, or by any officer, past officer or the estate or nominees, heirs, or legal representatives of deceased officer to the assets of the society, such contribu. tion being inclusiVe of debts due from such members or officers ; to issue requieitions, under section 98 ; to get disputes referred to the Registrar for decision by himself or his nominee or board of nominees ; to determine by what persons and in what proportion the cost of the liquidation shall be borne ; to fix the time or times Within Which the creditors shall prove their debts and claims or be included for the benefit of any distribution made before those debts or claims are proved ; to summon and enforce the attendance or witnesses and to compel the production of any books, accounts, docu- ments, securities, cash or other properties belonging to or on the custody of the society by the same means and in the same manner as is provided in the ceSe of Civil Court under the Code of Civil Procedure, 1908 ; . , to do all acts, and to execute in the name and on behalf of the society all deeds, receipts and other documents, as may be necessary to such winding up ; to take such action as may be necessary under section 19, With the prior approval of ' the Registrar, if there is reason to believe that the society can be reconstructed. 106. After eXpiry of the period for lappeal against the order made under sub-section (1) of section 102 or where the appeal has been dismissed the order for Winding up shall be efl'ective “and shall operate in favour of all the creditors and of all the contributories Efieet of or- der of win- ding up, «13 Bar of suit in winding up and dis; solution matters. Audi t of Liquidator’s accounts. Termination of 1iquida~ tion procee— dings. of the Society, as if it had been made on the joint petition. of creditorsand contributories of the society. When a winding up order becomes "efi'ective, the Liquidator fishall proceed to realise the assets of theSociety by sale or otherwisaand no dispute shall be commenced of, ifpending at the date of the‘winding up order, shall be proceeded With,against the Society” except'iby leave of the Registrar and subject to suchterms as the Registrar may; impose. The Registrar, may of his ownmetion, however, entertainer (iispose 01" any dispute by or against theSociety. 107. (1) Save as exbressly provided in this Act, no Civil Courtshall take cognizance of any matter connected With the Windidg upor dissolution of a society under this Act and When a Winding uporder has been made no suit or other legal proceedings shall lie or beproceeded with against the society or the Liquidator, except by leawof the Registrar, and subject to such terms as he may impose ;Provided that, where the winding up ord'er :13 cancelled, the provi-sions of this section shall cease to opefate so far as the liability of thesociety and of the members thereof to be sued in concerned, but theyshall continue to apply to the person Who acted as Liquidator. 1H8. (l) The Liquidator shall, during his tenure of office, atsuch time as may be prescribed, but not less than twice each year,present to the Registrar an account in the prescribed form of hit;receipts and paymente as Liquidator. The Registrar shall cause anyaccount to be audited: in such manner as he thinks fit ; and for thepurpose of audit, the Liquidator shall furnish the Registrar Withsuch vouchers and information as he, or the person appointed by him,may require, (2) The Liquic‘iator shall cause a summary of audited accounts tobe prepared. and shall send a copy of such summary to every contri-butory. (3) The Liquidator shall pay such fees as the Registrar may direct,for the audit of the accounts and books kept by him in the mannerprescribed. (4) The Liquidator shall be held liable for any irregularities whichmight be discovered in the. course or as a reault of audit in reepect oftransactionasnbsequent to his taking over the afi'airs of the Society,and may beeproceeded against as if it were an act against which actioncould be. taken under section 88 : Provided that, no Such action shall be taken unless the irregularitieshave caused or are likely to cause loes to the society, and have occurreddue to gross neg‘dgenee or wanton omission, in carrying out the dutiesand functions. 109. (1) The Winding up proceedings of thewsoeiety shall be closedWithin three years from the date of the order of the winding up, unlessthe period is extended by the Registrar ; Provided that, the Registrar shall not grant any extension for aperiod exceeding one year at a time and four years in the aggregate andshall, immediately after the expiry of seven years fro: the date of theorder for Winding up of the society, deem that the Liquidation proceedings have been terminated, and pass an order terminating the liqu idation pro ceedings, Explanation—In the case of a society Which is under liquidation at the commencement of this Act and order for the Winding up of the society shall be deemed for the purpose of this section to have been passed on the date of such commencement. (2) Notwithstanding anything contained in the foregoing sub- section, the Registrar shall terminate the liquidation proceedings on receipt of the final report from the Liquidator. The final report of the Liquidator shall state that the Liquidaton proceeding of the society has been cIOSed, and how the winding up has been conducted and the property of and the claims of the society have been disposed of and shall include a statement showing a, summary of the account of the winding up including the cost of liquidation, the amount (if any ) standing to the credit of the society in liquidation, after paying off its liabilities including the share or interest of memberS, and suggest how the surplus should be utilised. (3) The Registrar, on receipt of the final report from the Liqui- dator, shall direct the Liquidator to convene a general meeting of the members of the society for recording his final report. 110 The surplus assets as as shown in the final report of the Liquidator of a. society Which has been wound up, may either be divided by the Registrar, With the previous sanction of the State Government amongst its members in such manners, as may be prescribed or be devoted to any object or objects provided in the bye-laws of the society, if they specify that such a. surplus shall be utilised for the particular purpose or may be utilised for both the purposm. Where ' the surplus is not so divided amongst the members and the society has no such bye-lew, the surplus shall vest in the Registrar, who shall hold it in trust and shell transfer it to the Reserve Fund of a new society regis— tered With a. similar object, and serving more or less an area Which the society to Which the Surplus belonged was serving : Provided that, Where no such society exists or is registered Within three years of the cancellation of the society Whose surplus is vested in the Registrar, the Registrar may distribute the Surplus, in the manner he thinks best, amongst any or all of the following :~ (3) an object of public utility and of local interest as may be recommended by the members in a, general meeting held under the preceding section ; (b) a federal Society With similar object to Which the cancelled society was eligible for affiliation 01', Where no federal society exists, the state federal society Which may be notified in this behalf by the State Government, and (c) any charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890. I Disposal of surplus assets. Application of Chapter to Land De- velopment Ranks, CHAPTER XI LAND DEVELOPMENT BANKS 111. This Chapter shall apply to— (a.) Co-operative Banks advancing loans, other than short term loans for purposes herein enumerated (hereinafter referred to as Land Development Banks) that is to say :— (i) land improvement and productive purposes ; (ii) the creation, rebuilding or repairing of house for agricultural purposes; (iii) the purchase or acquisition of title to agricultural lands by tenant purchasers or tenants under the Manipur Land Revenue and Land Reforms Act, 1960 and any corresponding law for the time being in force in any part of the ‘State ; or 5 (iv) the liquidation of debts under law for the time being in force in any part of the State ; and (b) any other co-operative bank permitted by the Registrar under Section 142 to function as a Land Development Bank. Explanation 1.—For the purpOSes of this section, short term 1 an means a. loan for a duration of less than 15 months. Explanation 2.——Land improvement and productive purposes means any work, construction or activity which adds to the productivxty of the land and, in particular, includes the following, that is to say — (a) construction and repair of wells (including tube wells), tanks and other work for the storage, supply or distribution of water for the purpose of agriculture, or for the use of men and cattle employed in agriculture ; (b) renewal or reconstruction of any of the foregoing works, or alterations therein, or additions thereto ; (0) preparation of land for irrigation ; (d) drainage, reclamation from rivers or other waters, or protec- tion from floods or from erosion or other damage by water, of land used for agricultural purposes, or waste land Which is cultivable ; (e) bunding and similar improvements ; (f) reclamation, clearance and enclosure or permanent improve- ment of land for agricultural purposes ; (g) horticulture ; (h) purchase of oil engines, pumping sets and electrical motors for any of the purposes mentioned herein ; (i) purchase of tractors or other agricultural machinery ; (5) increase of the productive capacity of land by addition to it of special variety of Soil ; (51:) construction of permanent farm-houses, cattle-sheds, and sheds for processing of agricultural produce at any stage ; (1) purchase of machinery for crushing sugarcane, manufactu- ring gur or khandsary or sugar ; (m) purchase of land for consolidation of holdings under the Manipur Land Revenue and Land Reforms Act. 1960. \n) such other purposes as the State Government may, from time to time, by notification in the Official Gazette, declare to be improvement or productive purpose for the purpose of this Chapter. 112. There shall be a State Land Development Bank for the State of Manipur, and eswmany Primary Land Development Bank as may be deemed necessary. 113. (l) The Register, or any other persan appointed by the State Government in this behalf, shall be Trustee for the purpose of securing the fulfilment of the obligations of the State Development Bank to the holders of debentures issued by it. (2) The Trustee shall be a corporation sole by the name of the Trustee for the debentures in respect of which he is appointed, and Shall have perpetual Succession and a common seal, and in his corporate name may sue and be sued. ‘ (3) The powers and functions of the Trustee shall be governed by the provisions of this Act, and the instrument of trust executed be- tween the State Land Development Bank and the 'lTruetee, as modi- fied from time to time by mutual agreement between the State Land Development Bank and the Trustee. 114' (1) With the previous sanction of the State Government and the Trusteeand subject to such terms and conditions as the State Government may impose the State Land Development Bank may issue debentures of such denominations, for such period, and at such rates of interest as it may deem expedient on the security of mort- gage, or mortgages to be acquired or partly on mortgages, held and partly to be acquired, and properties and other assets of the Land Development Bank. (2) Every debentures may contain a, term fixing a period not exceeding twenty years from the date of issue during which it shall be redeemable, or reserving to the Board the right to redeem at any time in advance of the date fixed for redemption after giving to the holder of the debenture not less than three months’ notice in writing. (3) The total amount due on debentures issued by the State Land Development Bank and outstanding at any time, shall not exceed“ (a) where debentures are issued against mortgages held, the aggregate of- (i) the amounts due on the mortgages ; 5‘1 State and other Land Develop- ment Banks. Appointment and functions of Trustees. Issue of debentures C t . N . Guarantee by State Government. Veating of ' property in Trustee and Debenture holders’ charge on assets. Powers of Land Deve- lopmeut Banks to advance loans and to hold loans Mode of dealing with applications for loans (ii) the value of the properties and other assets transferred or deemed to have been transferred under section 121 j by the Primary Land Development Banks to the State Land Development Bank and subsisting at such. time ; and (iii) the amounts paid under the mortgages aforesaid end the unsecured amounts remaining in the hands of the State Land Development Bank or the Trustee at the time ; (b) Where debentures are issued otherwiSe than on mortgages held, the total amount as calculated under clause (a) in- creased by such portion of the amount obtained on the debentures as is not covered by a, mortgage. 115. The principal of, and interest on the debentures issued under the preceding section or any specified portion thereof, may carry the gurantee of the State Government, subject to such maximum amount as may be fixed by the State Government, and to such conditions as the State Goyernment may think fit to impose. 116. Upon the issue of debentures under the provisions of section 114, the properties and other assets referred to in sub—section (3) of that section held by the State Land Development Bank, shall vest in the Trustee, and the holders of debentures shall have a. floating charge on all such mortgages and assets, and on the amount paid under such mortgages, and remaining in the hands of the State Land Development Bank or of the Trustee. 117. Subject to the provisions of this Act, and the Rules made thereunder, it shall be competent for the Land Development Banks to advance loans for the purposes referred to in section 111, and to hold lends the possession of which is transferred to them under the provisions of this Chapter- 118. (1) When an application for a loan is made for any of the purposes mentioned in section 111, the public notice shall be given of the application in such manner as may be prescribed calling upon all persons interested to present their objections to the loan, if any, in person, at a, time and place fixed therein. The State Government may: from time to time prescribe the persons by whom such public notice shall be given and the manner in Which the objections shall be heard and disposed of. (2) The prescribed officer shall consider every objection submitted under sub-section (1) and make an order in writing either upholding 01‘ overruling it : Provided that, When the question raieed by an objection is in the opinion of the officer, one of such a nature that it cannot be satis- factorily decided except by a, Civil Court, he shall peS’tpone the procee- dings 0n the application until the questionrhas been SO decided. (8) A notice under sub-section (1), published in the manner prescribed shell, for the purpose of this Act, be deemed to be proper notice to all persons having or claiming interest in the land to be improved, or offered as security for the loan. (4) Subject to such rules as may be pregeribed, the Land Develop- ment Banks shall consider such applications after due enquiry for the purpose of making leans under this chapter. 119. A written order by the Land Development Bank or persons or Board authorised under the bye-iaws of the Bank to make loans for all or any of the purposes specified in section 111, granting a loan to or with the consent of a. person mentioned therein, for the purpose of carrying out the work Specified therein, for the benefit of the land or for the productive purpose specified therein, shall for the purPOSe of this Act, be conclusive of the following matters, that is to Say :—— (a) that the work described or the purpose for which the loan is granted, is an improvement or productive purpose, as the case may be, within the meaning of section 111. (b) that the person had at the date of the order a right to make such an improvement, or incur expenditure for productive purpose, as the case may be ; and (c) that the improvement is one benefiting the land specified and productive purpose concerns the land offered in security, or any part thereof as may be relevant. 120. (1) A mortgage executed in favour of a Land Development Bank, shall have priority over any claim of the Government arising from a loan granted after the execution of the mortgage under the Land Improvement Leans Act, 1883, or the Agriculturists’ Loans-Aet, 1884, or under any other law for the time being in force. (2) Notwithstanding anything contained in the law for the time being in force, Where a mortgage in favour of a Land Development Bank is in respect of land in Which a tenant purchaser or tenant has an interest, the mortgage may be against the security of such interest, and the rights of the mortgage shall not be affected by the failure of the tenant purchaser or tenant to comply with the requirements of such law, and the sale of the land and his interest therein under such law shall be subject to the prior charge of the Land Development Bank. 121. The mortgages executed in favour of, and all other assets transferred to a Land Development Bank, by the members thereof, with effect from the date of such execution or transfer, be deemed to have been transferred by such Land Development Bank to the State Land Development Bank,and shall vest in the State Land Development Bank. 122. Notwithstanding anything contained in the Indian Registra- tion Act, 1908 it shall not be necessary to register mortgages executed in favour of the Land Development Banks, provided that the Land Development Bank concerned Bends Within such time and in such manner as may be prescribed, a copy of the instrument whereby pro- perty is mortgaged or leased to the Registering Officer Within the local limits of whose jurisdiction the whole or any part of the property mortgaged is situate, and such Registering Officer shall file a copy or copies as the case may be in his book No. 1 prescribed under section 51 of the Indian Registration Act, 1908. 53 Order gran- ting loan conclusive of certain mat- ters- Priority of mortgage. Mortgages executed in favour of Land Deve- lopment Bank to stand vested in State Land Development Bank. Registration of Mortgage (or lease) in favour 08 Land Development Banks, 5i Mot tgages not to ~‘be questioned on insolven- ey of mort- gagors Right of Land Dove- lopment Bank to pay prior debts of mortgagor Mortgages exec uted by managers of joint Hindu families. Section 8 of Act XXXII of 1956 to apply to mortgages to Land Deve- lopment Banks subject to certain modification lestriction on lease 123. Nat withstanding anything contained in any Insolvency Act 0: any eerresponding law for the time being in force in Manipur a Mortgage, executed in favour of a Land Development Bank, shall not he called in question in any insolvency proceedings on the ground that it was not executed in order to give the Bank a. preference over other creditors of the mortgagor. 124. (1) Where a mortgage is executed in favour of a Land De. veiopment Bank, for payment of prior debts of the mortgagor, such bank shall, noththetanding anything contained in the Transfer of Property Act, 1882 by notice in writing, require any person to Whom any such debt is due, to receive payment of such debt or part thereof = from the bank at its registered office within such period as may be specified in the notice. (2) Where any such person fails to accept such notice or to receive such payments, such debts or part thereof as the case may be, shall cease to carry interest from the eXpiry of the period epeeified in the noslce : Provided that Where there is a dispute as regards the amount of any such debt, the person to Whom such debts is due sbaii be bound to receive payment of the amount offered by the Land Develop- ment Bank towards the debts, but such receipt shall not prejudice the right, if any, of such person to recover the balance claimed by mm. 125. (1) Mortgages, in respect of loans by a Land Development Bank or the State Land Development Bank, by the Manager of a Hindu joint family for the improvement of agricultural land or of the methods of cultivation, or for financing any other means to raise the predimtivity of the iand, or for the purchase of land, shalt be binding on eVery member of such joint Hindu family, notwithstandiug any law to the contrary. (2) In other cases, Where a mortgage executed in favour of a Land Development Bank or a State Land Development Bank is called in question on the ground that it was executed by the manager of a Hindu joint family for a purpose not binding on the members (Whether such members have attained majority or not) thereof, the burden of proving the same shall notwithstanding any law to the contrary, lie on the party alleging it. 126. Section 8 of the Hindu Minority and Guardianship Act, 1956, shall apply to mortgages in favour of a Land Development Bank, subject to the modification that reference to the Revenue Officer or his nominee and the appeal against the order of the Revenue Officer or his nominee shall lie to the Deputy Commissioner. 127. (1) Notwithstanding anything contained in the Transfer of Property Act, 1882 or any other law for the time being in force, 110 mortgager of property mortgaged to a Land Development Bank, shall eXcept With the prior consent in writing of the bank, and subject to such terms and conditions as the bank may impose lease or create any tenancy rights on any such property : s Provided that, the rights of the Land Development Bank shall be enforceable against the tenant purchaser, the leasee or the tenant, as the case may be, as if he himself were a mortgagor. (2) Where land, mortgaged with possession to a Land Development Bank, is in actual possession of a tenant, the mortgagor or the Land Development Bank shall give notice to the tenant to pay rent to the Land Development Bank during the currency of the lease and the mortgage, and on such notice being given, the tenant shall be deemed to have attorned to the Land Development Bank. 128. Notwithstanding anything contained in section 121 all moneys due under the mortgage shall unless otherwise directed by the State Land Development Bank or the trustee, and communicated to the mortgagor, be payable by the mortgagor to the Land Development Bank, and such payments shall be as valid as if the mortgage had not been so transferred and the Land Deveiopment Bank shall in the absence of specific direction to the contrary, issued by the State Land DeVelop- ment Bank or trustee and communicated to the Bank, be entitled to sue on the mortgage or take any other proceeding for the recovery of moneys due under the mortgage. 129. Where any property mortgaged to a Land Development Bank is 'wholly or partially destroyed, or for any reason the security is rendered insufficient and the mortgagor, having been given a reaso- nable opportunity by the bank to provide further security enough to render the whole security sufficient, or to -repay sneh portion of loan as may be determined by the bank has failed to provide such security or to repay such portion of loan, the whole of the loan shall be deemed to fall due at once ; and the bank shall be entitled to take action against the mortgagor under section 132 or section 133 for the recovery thereof. Eepianation z—Seeurity shall be deemed insufi‘icient Within the meaning of this section, unless the value of the mortgaged property (including improvements made thereon) exceeds the amount for the time being due on the mortgage by such proportion as may be speci~ fied in the rules, reguiations or the bye-laws of the Land Development Bank. 130. (1) Property purchased under section 133 {3), by, and pro- perty transferred under section 100 to, the Land Development Banks may be disposed of by such banks by sale within such period as may be fixed by the Trustee, subject to the condition that such sales shall be in faVonr only of agriculturists eligible to hold land under the Mani- pur Land Revenue and Land Reforms Act, 1950 or any corresponding law for the time being in force, or may be leased out by them on such terms and conditions as may be laid down by the State Government from time to time. (2) Nothing contained in any law for the time being in force fixing maximum limit of agricultural holding shall apply to the acqui. sition or holding of land by the Land Development Banks under this section. C l 0 ( Land Deve Iopment Bank to re- ceive money and give discharge. Power of Land Development Bank where mortgaged property is destroyed or security be- comes insu fficient Right of De- veiopment Bank to buy mortgaged property. r.-06 Recovery of. loans by Development Banks. Power of diltuint. Sale of mort- gaged pro- party. ‘ 131. A11 loans granted by the the Land Development Banks, e11 1nterests(ifa.ny) chargeable thereon and costs (if any), incurred in making the same, shall, When they become due, be recoverable by the Land Development Bank concerned. 132. (1) If any instalment payable under a, mortgage executed in favour of a Land Development Bank, or any part of such instalment, has remained unpaid for more than one month from the date on which it fell due, the Board of such bank may, in addition to any other remedy aVailable to the Bank, apply to the Registrar or the Revenue Officer for the recOVery of such instalment or part. thereof by distraint and sale of the product of the mortgaged land, including the standing crops thereon. (2) On receipt of such application, the Registrar or the Revenue Officer as the case may be, may, notwithstanding contained in the Transfer of Property Act. 1882, take action in the manner prescribed for the purpose of distreining and selling such produce : Provided that, no distraint Shall be made after the expiry of three years from the date on Which the instalment fell due. (3) The value of the property dietrained shall as nearly as possible, be equal to the amount due and the expenses of the distraint and the cost of the sale. 133. (1) Notwithstanding anything contained in the Transfer of Property Act, 1882, the Land Development Bank or any person autho- rised by it in this behalf shell, in case of default of payment of the mortgage money, or any part thereof, have power in addition to any other remedy available to the; bank, to bring the mortgaged ' property to sale by public auction in the village in Which the mort- gaged property is situated or at the nearest place of public resort, wi‘hout the intervention of the Court : Provided that, no action shall be taken under this sub—section and no such power shall be exercised, unless and until— (9,) the Land Development Bank has been previously authorised to exercise the power conferred under this sub-section after hearing the objections, if any, of the mortgagor or mortgagors. (b) notice in writing requiring payment of such 7.1 ortgage money or part thereof has been served upon— (i) the mortgagor or each of the mortgagors ; (ii) any person who has any interest in or charge upon the property mortgaged, or in or upon the right to redeem the same so far as is known to the bank, (hi) any surety for the payment of the mortgaged debt or any’ part thereof, and (iv) any creditor of the mortgagor Who has in esuit for administration of his estate obtained a decree for sale of mortgaged property, and (0) Default has been made in payment of such’fmortgege money or part thereof, for three months after service of the notice. (2) If the Land Development Bank fails to take action against a defaulter under Section 129 or 132 or under this section the State Land Development Bank may direct the Land Development Bank to take appropriate action, and Where no action is taken either by the State Land Development Bank, or the Land DeVelepment Bank, the Trustee may take such action. If such aetien is taken by the Trustee, the provisions of this Chapter and of any rules preteribed shall apply in respect thereto, as if all references to the Land Development Bank in the said provisions were reference to the Trustee. (3) Notwithstanding anything contained in any law for the time being in force, it shall be lawfui fer the Ps'in'ary Land Development Bank 01‘ the State Land Development Bank te plzrehase any mortgaged property seld under this Chapter. 134. (1) On effecting the saie by a Land Development Bank under section 133, the bank shali, in the preeeribed manner, submit tothe State Land Development Bank and the Registrar a repert ??’settingforth the manner in which the tale has. been effected and the result ofthe saie, and the State Land Deveiepment Bank may, With the approval of the Registrar, confirm the sale or cancel it. (2) Where the sale is efi'ected by the State Land DevelopmentBank or the Trustee under Section 133, the State La nd DeVelopment Bank or the Trustee, as the case may be, shall in the prescribed manner submit to the Registrar a report setting forth the manner in whichthe sale has been effected and the result of the 88.16, and the Registrar may confirm or cancel it. 135. The proceeds of every sale effected under section 133 andconfirmed under the preceding section shall be applied first in payment of all costs, charges and eXpenses incurred in connection With the saleor attempted sales, secondly, in payment of any or all interest dueon account of the mortgage in consequence whereof the mortgagedproperty was sold, and thirdly, in payment of the principal due on account of the recovery. If there remain any residue from the preceeds of sale, the sameshall be paid to the person proving himself interested in the propertysold, or if there are more such persons then one, then to such personsupon their joint receipt or according to their respective interest thereinas may be determined by Land DevelopmentBank : Provided that, before any Suoh payments are made the unsecureddues owing— (a) from the mortgage! to the Land Development Bank may beadjusted, and (b) from any member or past member to whom the mortgagoris indebted may also be adjusted under the Written authority given bysuch member and past member, and after holding such inquiry asmay be deemed necessary. 136. (1) Where a sale of mortgaged property has become abso=lute under section 134 and the sale proceeds have been received infull by the Land Development Bank, the bank shall grant a certificate to the purchaser in the prescribed form, certifying the property sold, and sale price, the date of its sale, the name of the person who at the 57 Confirmation of sale, Disposal of Bale p-'oceeds. Certificate to purchaser, delivery of property and title of purehaooi'. 58 Recovery of loans on certificate by Registrar; time of the sale is declared to be the purchaser, and the date on Which the sale became absolute ; and upon the production of such certificate the Sub-Registrar appointed under the Indian Registration Act, 1908, within the limits of whose jurisdiction the whole 01' any part of the property specified in the certificate is situated, shall enter the con- tents of such certificate in his register rel’ating to immovable property. (2) (a) Where the mortgaged property sold in the occupancy of the mortgagor, or of some person on his behalf or some persons claim 311ng under a title created by the mortgager, subsequent to the mort- gage in favour of the State Land Development Bank or a Land Deve- lopment Bank and a certificate in respect thereon has been granted under the foregoing sub-seetion the Revenue Officer shall, on the application of the purchaser, order delivery to be made by putting such purchaser or any person who he may appoint to receive delivery, on his behalf, in poseession of the property. (1)) Where the property sold is in the occupancy of a tenant or other person entitled to occupy the Same, and a certificate in respect thereof has been granted upon the feregoing sub-sectien, the Revenue Officer, shall, on the application of the purchaser and after notiee to eunh tenants or other person, order the deliVery to be made by affixing copy of the certificate of sale in a conspicuous place on the property and preclaimingto the occupant by heat of drum or other customary mode at some convenient place, that the right title and interest of the mortgagor have been transferred to the purchaser. (3) Where any property is sold in the exercise or purported exera eise of a power of sale under section 133% the title of the purchaSer shall not be questioned on the ground that the circumstances required for authorising the sale had not arisen, or due notice of the sale was not given, or the poWer of sale was otherwise improperly or irregularly exercised : Provided that, any person who sufi‘ers damage on account of nna authorised, improper or irregular exercise of such povver shall have a remedy in damages against the Land Development Bank. 137. (1) Notwithstanding anything contained in Section 91 on an application made by a Land Development Bank for the recovery of arrears of any sum advanced by it tn any of its members and on its furnishing a statement of accounts in reapect of the arrears, the Regis- trar may, after making Such enquiries as he deems fit, grant a certificate for the recovery of the amount stated therein to be due as arrears. (2) A certificate by the Registrar under eub-seetion (1) shall be final and conclusive as to the arrears due. The arrears stated to be due therein ehall be recoverable according to the law for the time being in force for the recovery of arrears of land revenue. (3) It shall be competent for the Registrar or a person authorised by him? to direct conditional attachment of the property of the mart- gagor until the arrears due to the Land Devalopment Bank together with interest and any incidental charges incurred in recoVery of such arrears, are paid or security for payment of such arrears is furnished to the satisfaction of the Registrar and the provisions of section 95 shall apply mutatis mutandis to conditional attachment of any property made or to be made under this section. 138. (1) Any ameunt due to a. Land Development Bank (inclu- a’iEmg ease of recovery thereof) shall on an application by it in this behalf be recoverable by the Revenue Officer, or any officer Specially autherieeti by the Revenue Office: in this behalf; in all or any of the following modes namely :-~ (a) from the borrower as if they were arrears of land revenue due by him ; (h) out of the land for the benefit of Which the loan has been granted as if they were arrears of land revenue due 1n respect of that land ; (c) from a. surety (if any) as if they were arrears of land revenue due by him ; ((3) out of the property comprised in the collateral security (if any) according to the procedure for the realisation of land revenue by the sale of immovable property other than the land on which the revenue is due. .139. At any sale of movable or immovable property, held under the pmviaions e‘f this ChapterS no officer or emyloyee of a, Land De= who hem Bank 01‘ the State Land Development Bank, except on behalf of the Bank of whiah he is an officer or an employee, and no pemoa haying any duty to perform in connection with such sale, shall ei‘o’aar direei‘iy or indirectly bid for or acquire or attempt to ecquire any interest in such property. 140. Nothing contained in any law for the time being in force in any pert. of the State shall apply to any alienation in favour of the Land DeVelopment Bank. 141. (1) It shall be competent for the State Governmeni? to conetibube one or more Guarantee Funds on such terms and conditions as ii; may deem fit, for the purpose of meeting losses that might arise as a. result of loana being made by the Land Development Banks on tibiae “be immovable property subsequently found to be defective or for any other purposes under this Chapter, for which in the opinion of the Stem Government, it) is necessary to provide for or create a. separate Guarantee Fund. (2) The State Land Development Bank and the Land Development Beaks shell contribute be such funds at such rate as may be prescribed, mad the constitution, maintenance and utilisation of such Funds shall be governed by such rules, as may be made by the State Government in this behalf. 142. It shall be competent for the Registrar to permit any cou Oyemtive bank to function as a. Land Development Bank under such terms and conditions and for such period as he may deem fit. 143. The provisions of sections 102 and 103 of the Transfer of Property Act, 1882, end of any rules made under section 104 thereof, shall apply, so far as may he, in respect of all notices to be served under this Chayber, 59 Collector to make recovea ties during a ceytain porind. Officers of Banks not to bid at sales. Any law not to apply to alienation in favour of Land De- velopmeut Banks. Provision for Guarantee Funds to meet certain losses. Registrar’s powers to permit any co-opemtive bank to fume: tion as a. Land Development Bank. Service of name, z15 Power of Board of State Land Development Bank to an- pervise Land Development Banks and make reguie= tions; Use of the word ”Co- operative’ ’. Ofienees; 144. The Board of the State Land Development Bank shall have a general pOWer of supervision over Land Development Banks and may, with the previous sanction of the State Government, make regulations, not inconsistent with this Act or the rules made thereunder, for 9.11 or any of the following matters, namelyfl (a) for the inspection of the account books and proceedings of the Land Development Banks ; (b) for the submieeion of returns and reports by such banks in respect of their transactions ; (c) for the periedica‘i eettlement of accounts between such banks and the State Land Development Bank being accounts relating to the payment of the amounts recovered by such banks on nmrtgages tmnsfeyred to the State Land Develop- ment Bank ; (d) for the form in which applications to such banks for loans shall be made and for the valuation of properties offered as security for such loans ; (e) for the investment of moneys realised from the mortgagor: ; (f) the conditions of service of employees of such benks ; (g) the programme and policy to be followed by such banks for making loans ; 5h) the types and extent of security to be obtained by such banks for advancing loans ; ii"; generally, to: the ?urpose of safeguarding the interest of the parties, farthemnee of activities of such banks, and carrying out the yurpeses of this Chapter. (‘BHAP'E‘EE XI}, OFFENCES AND ?ENALTIES 145. (1) No yerson, other then a. society registered, or deemed to be registered; under this Act and a. person or his successor in interest of any name 01’ title under which this Act comes into {w:ee, she‘ll without the eenction of the State GoVernment function, traée or carry on business under any name or title of Which the werd “Co—eperative,” or its equivalent in, any Indian language, forms part. (:2) Every person eentravening the provisions of the foregoing subsection shall, on conviction, be yunished With fine Which may be extended to five hundred rupees. , 14:6° It shall be an offence under this Act, iféu (as) (b) (0) (d) (e) (f) (g) (h) (i) (i) (1!) any member of a. Society transfers any property or interest in contravention of subsection (2) of section 47 or any peISOn knowingly acquires, 01' abets in the acquisition of, such groperty; or any employer end every director, manager, secretary or other officer or agent acting on behalf of such employer Who, without sufficient cause, fails to comply with subsection (2) of section 49 ; or a Board of a, Society or an officer or member thereof fails toinvest funds of such society in the manner required by section 70; or any person, collecting share money for a. society in formation, does not Within a, reasonable period deposit the same in the State Co-operative Bank 01‘ a Central Covoperative Bank or an Urban Co-operative Bank, era. Postal Saving Bank; or any person, collecting the share money for a society in forma- tion, make use of the funds so raisad for conducting any business or trading in the name of a society to be registered or otherwise; or a. oommitee of a, society, or an officer or member thereof, fails to comply with the provisions of sub-sections .(2), (3) or (4) of section 75 ; 'or any officer or member of a Society who is in possession of information, books and records, fails to furnish. such informa- tion or produce books and papers, or give assistance to a person appointed or authorised by the State Government or the Registrar under sections 78,81,83,94 or 103 ; or any officer of a. society fails to hand over the custody of books, records, cash, security and other property belonging to the society of which he is an officer to a, person appointed under section 78 or 103 ; or a. Board of a. society with a working capital of fifty thousand rupees or more, or any officer or a. member thereof, fails Withoutany reasonable excuse to give any notice, send any return or document, do or allow to be done or comply with orders made under section 79 ; or a. Board of a society or an officer or member thereof wilfully neglects or refuses to do any act, or to furnish any informa« tion required for the purposes of this Act by the Registrar, or other person duly authorised by him in writing in this behalf ; or a. Board _of a Society, or an officer or member thereof, wilfully makes a. false fetu‘rn, or. furnishes falsa information, or fails to maintain proper aeoounts ; or £51 m5 Punishment: for offences under section 146 {1) , (m) (0) ((1) any effiecr. memher‘ ageet or" eerVant of a Seeiety fails to comply with the reqeifements ei Subseectigfl {fit of eeetion 81 ; or , any effieer or member ef Society wilfully fails to comely with any decision; award 01‘ erder pegged. under section 96 ; or - a member of a society fraudulently dispeees of property over which the Society has a prier claim, 01‘ a member or officer or empioyer or any person riispeses of his property by sale, transfer, mortgage, gift or otherwise, with the fraudulent intention of evading the dues of the society ; or any officer of a society wilfully reeommende o: sanctions for his own personal use or benefit or for the use or benefit of a person in whom he is interested, a loan in the name of any other persen ; or any officer or member of a Society destroys, mutilatee, tampers with, or etherWiSe alters, falsifies or secrets or is privy to the destructimn mutilation, aitemtion‘ falsification or secreting of any books, paper or security or makes, or is; privy to the making of any fame or fraudulent entry in any register, book of account 0.13 document belonging to the society ; 01‘ any officer or member of a seciety or any person does any ~aet deciareé by the rules to be an offence. Explanatienw—‘Fer the purpose of this section, an officer or a. member referred to in the seetion shall include past officer and past member, as the case may be. 147. Every society, officer or past oifieer, mem‘her oi: past member, employee of a society, or any other person. Who commite an offence under section 146 shall, on conviction, be punished 2 (a) if it is; anoifeaee under eiawme (a) of that Seetion, with. impriSoumeut fer a term which may estenite six months, or With fine which may extend to five thousand. rupees, or with both ; if it is an offence under eiause (b) of the section, yvith imprisonment for a term which may extend to one month, or with fine whieh may extend to fire hundred rupees,- or With both ; if it is an :ffcne‘: :nder clause ((3) ef that section, with fine which may e<tend to five hundred rztrpees ; ' if it is en ofi'ence under clause (d) 0‘5 that sectien, With fine which may extend to five hundred ru‘eeee ;, if it is an offence under clause ' (e) of $3219.19 section with imprisonment for a term whieh may extend to one year, or With finey or With both ; _ _ y if it is en offence under clause (i) sf that eeetien, With fine Which may extend to two hundredan fifty riagees ; (g) if it is an offence under clause {3 of that section, with fine which may extend to five hundreé rupees ; (h) if it is an ofienee under clause (11) of that section, with fine which may extend to five hundred rupees ; if it is an (fiance unde clause (5? of that section, With fine which may extend to five hundred rupees ; r - . w 0 ‘ 1 ' {j} if it is an offence under c]a,uSe (j) of that Section, With im- prisonnient for a term Which may extend :0 one month or With fine Which may extend to five hundred rupees, or with both ; (k2 if it is en offence under clause (1:) of that section, With impri- sonment for a term which may extend to one year, or with fine Which may extend to two thousand ruIees, 01' With both ; (i) if it is an offence under clause f]) of that ~ection, With fine which may extend to one hundred rupees ; (m) if it is an ofl'ence under eiause (m) of that section, With imprisnhment for a term Which may extend to six months or with ‘fine which may extend to five hundred rupees, or with hath ; (n) if it is an ofl'ence under clause (n) of that section, with imyrisonr’nent for a term which may extend to six months, or with fine Which may extend to one thousand rupees, or with both ; {0) if it is an ofi'ence under ciause (n) of that section, With impriwémmeut for a term which n ay extend to two years, 01‘ with fine, or with both ; (p) ifit is an efi‘ence under clause (p) of that section, with imprisonment for a term Which may extend ’50 three years; 0: With fine, or with both ; (q) if it is an offence under elaua-‘e (q) of that section, with " fiine which may extend to two hundred and fifty rupees. 1:3 (1) No Ceurt inierier a that of a Chief Judicial Magis- trate er 8» Judicial Magistrate of jet Class shall try any offence under this Act. ' (.2) .‘éé’otwithstanding anything contained in the Code of Criminal Procedure, 1:473 it shall be lawful for a Chief Judicial Magistrate er a Judicial Magistrate ef the First Class to pass a sentence of fine on any person eonvietefl efan offence under clause {b} of section 146 as provided under section 147‘ in exercise of his pen en's under section 29 of that (Vode. (”3) N0 Court shall take cognizance of offence under clause (b) of Section 14:6 and any other offences under this Act except upon a com- plaint by an offieei' duly authorised by the Registrar in this behalf and except with previous sanction of the State Government in case of offence under clause (1)) of 146 and of the Registrar in the ease of other offence under this hot: 63 Cognizance of offences. Manipur State Gen operative Tribunal. CHAPTER XIII APPEALS, REVIEW AND REVIfiION 149 (1) The State Government shall constitute a. Tribunal called the Manipur State Co-operative Tribunal, to exercise the functions conferred on the Tribunal by or under this Act. (2) The Presiding Officer, Revenue Tribunal appointed by the State Government as such shall be deemed to be the Manipur State Co-opemtive Tribunal for the purposes of this Act. (3) The Tribunal may call for and examine the record of any proceedings in Which an appeal lies to it, for the purpose of satisfying itSelf as to the legality or propriety of any decision or order passed. If in any case, it appears to the Tribunal that any such decision or order should be modified, annulled 0r reversed, the Tribunal may pass Inch order thereon as it may deem just, (4) Where an appeal or application is made to the Tribunal under this Act it may, in order te prevent the ends of justice being defeated, make such interlocutory orders pending the decision of the appeal or application, as the case may be, may appear to it to be just and convenient, or such orders as may be necessary for the ends of justice, or to prevent the abuse of the process of the Tribunal. (5) An order passed in appeal, or in revision under sub-lection (3), or in review under section 150 by the Tribunal shall be final and conclusive, and shall not be called in question in any Civil or Revenue Court. Exelanation :-—The Tribunal hearing an appeal under this Act shall exercise all the powers conferred upon an appellate Court by section 97 and Order X $1 in the First Schedule of the Code of Civil Procedure, 1908. 150. (1) The Tribunal may, either on the application of the Registrar, or on the application of any party interested, review its own order in. any case, and pass in reference thereto such order as it thinks just : Provided that, no such application made by the party interested shall be entertained, unless the Tribunal is satisfied that there has been the discovery of new and important matter of evidence, Which after the exercise of due deligenee was not Within the knowledge of the applicant or could not be produced by him at the time when, its order Was made, or that there has been some mistake or error, agparent on the face of the record or for any other Sufficient reasons ; Provided further that, no such order shall be varied or revised, unless notice has been given to the parties interested to appear and be heard in support of such order. (2) An application for review under the foregoing sub-section by any party, shall be made Within ninety days from the date of the communication of the order of the Tribunal. 151‘ (1) In exercising the functions conferred on it by or under this Act, the Tribunal shall have the same powers as are ‘ vested in a Court in respect of,--— (a) proof of facts by affidavit, (b) summoning and enforcing the e.ttendaneeiof {my person and examining him on oath, (c) compelling discovery or the production of doeumentsfend (d) issuing commissions for the examination of witneaaes. (2) In the case of any such efficiavit, any officer appointed by the Tribunal in this behalf may administer the oath to the deponent. 152. (1) An Appeal against an erder or decision under section 4,9,11,1'2,13,14,17,2139,35,733 and 105 shall 1ie,-—- (a) if made or sanctioned or approved by the Registren'5 01' the Additional or Joint Registrar on Whom powers of the Registrar are conferred, to the State Government. (1)) if made or sanctioned by any peracn other than the Regis- trar,. or the Additional or Joint Regietram on whom the powers of the Registrar are eonferred to the Registrar. 65 Review of orders of Tribunal Tribunal to have power of Civil Court. Appeals. Extension of period of limitation by eppe‘fiate authority in certain ensue. “l'owm- of State Govt. and Regis— trar to mail for pmeea- dings 'ef arahsrdinm e officers and to pan erdefs there on. (2) An Appeal against an order or decision under sections '79, 85 and 88, and any order 13aseed by the Registrar for paying compensation to a society, and any a:her order for which an appeal to the Tribune] has been provided under- this Act eheh lie to the Tribune]. (3) An appeal under subsasetieh (1) us (2)3}4311336 filed within 'LWU nmnths of the date of the communication of the erfier 01- deeieien. ' («4) ,Seve 21-3 provided in this Act, no appeal shall lie against any order, deeieien or award passed in accordance With this Act; am? every Such order, decision er award shall be final, and Where any appeal has been provided for, (my order passed on appeal shell be final and no further appeal she‘ll lie against it. 153. In all cases in which it is provided under this Act that an appeal may be filed against any decision or order within a specified period, the appellate ant hority may admit an appeal after the expiry of such ‘perieé, if the appellant satisfies the appellate authority that he heal euffieient ezmse fe‘e net preferring the appeai within such peried. 154.1 (1) The Registrar may, ot' his own motion 01* an application, can fer and examine the records of any officer subordinate to him not being Additional Registrar or Joint Registrar, and the State Govemment may, of its own motion or: on application, can for and examine the records of the Registrar, Additionai Regie'rer 01‘ Joint Registrar, in respect of any preeeedinge not being, 9, emceeding in respect of Wdich an appeal has to the Tribunal, to satisfy himself or itself as to the regularity of such proceedings: or legality er propriety of any decision or order made therein ; end if, in any case, it epeeers to the Registrar or the State Government that any such decision er order should be modified, annulled or remitted for reeeneideretion, he or it may order aecordingly. (2) ho order prejudicial to any 1331531)!) shall be phased under euh=seetion (1) unless such person has been given an opportunity of making his representation. (3) The Registrar or the State GOVernment, es the case may be, may sueeend the execution of the decision or order pending the exercise of his or its power under subsection (1). (4) The Registrar or the State Govamment, may award cost in proceedings under this section to be paid out of the funds. of the society er by such other party as the Registrar or the State Government may deem fit. Explanation : aThe State Government may nominate an officer not below the rank of Secretary to the Government to exercise the powers of the State Government under this section and section 152.” 1. Amendments These sub-leetions and words were substituted for section 154 of the principal Act by Man, Act No. 12 of 1984' section 14:. )HAPTEH XIV MTSQETLANEOUS 155. (1) Unless otherwise provided by this Act, all sums duefrom a society 0r 5mm an officer or member or past member or a,deceased member of a society as such to the Government, may herecovered according to the law and unéer the rules for the time beingin force for the recoVery of arrears of land revenue. (2) Sums due from a. society to the Government and recoverableunder the foregoing subsection may he recovered, firstly from theproperty of the sxmiety, Secondly in the case of a society of" Which theliability of the members is limited, from the members or past membersor the estate of deceased members subject to the limit of their liabitity,and thirdly, in the 0335 of Societies with unlimitefl liability, from themembers or past members or estate of deceased members. (3) The liability of past members or estate of deceased members;shah in MI cases be subject to the provision of section 33 156. (1} The Registrar 011 any officer subordinate to him andempowered by him in this behalf may, subject to such rules as may bemade by the State Govprnment, but Without prejudice to any othermode of recovery provided by 01‘ under this Act, recOVer— (a) any amount due under a decree or order of a Civil Courtobtained by a society ; (b) any amount due under a decision, award or order of the??egistrar, Arbitrator or Liquidator or Tribunal ; (a any sum awarded by way of costs under this Act ; \ I (d) any sum ordered to be paid under this Act, a: a. contributionto the aSSets of the society ; (e) any amount due under a certificate granted by the Registrarunder sub—saction (1) or (2) of section 101 or under sub-section (1) of section 137 ; together With interest, if any,due on such amount or sum and the costs of process by theattachment and sale or by sale without attachment of theproperty cf the person against Whom Such decree, decision, (2) The Rhgistrar or the officer empowered by him shall bedeemed, When exercising the powers under the foregoing subsection, orWhen passing any order on any application made to him for suchrecovery. to be a. Civil Court for the purposes of article 182 in the FirstSchedule to the Indian Limitation Act, 1908. ‘ Rficovery of sums due to Government; Registrar’s power to recover cer- tain sums by attachment and sale of property. (38 Power to exempt societies from pro- visions of Act. 13 mm in 3 etc. of societies outside the State. Handing: over resume and proper. by to new Chairmen on election, Registrar and other ‘ officer to be public ler- vents, 157. The State Government may, by general or special order, tobe published in the Official Gazette, exempt any society or class ofsocieties from any of the provisions of the Act or may direct that such ,provision shall apply to such Society or class of societies with suchziilodifiaations not efiecting- the Substance thereof as may be specified in.t e or er: Provided that, no order to the prejudice of any Society shall bepassed, Without an opportunity being given to such society to representits case; ~ 1 158. (1) No society shall open a branch or a piece of businessoutside the State of Manipur end no co-operative society registered uponany law in any other State open a branch or a place of business in theState of Menipur without the permission of the RegiStrer; (2) Every (foaoperative society registered under any law in anyother State, and permitted to open a branch or a piece of business in the Menipur State under the»- foregoing- subsection, 01' which has abranch or a place'of businese'v in the Manipur State at the commence-ment-of this Act shall, Within three months‘i'rom the opening of suchbranch 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-iaweand amendments and, if these are not written in English language, a certified translation thereof in English or Hindi and shall submit tothe Registrar such returns and information as are submitted by similarsocieties registered under this Act in addition to those which may be submited to the Registrar of the State where such society is registered. 159. (1) On the election of a new Board and its Chairman the retiring Chairman, in Whose place the new Chairman is elected shall hand over eharge of the affine of the Beard and all papers and property, if any, of the society in possession of the Board or any officers thereof, to thernew Chairman of the Board. (2) If the retiring Chairman fails or refuses to hand over charge, or to handover. the: papers and property of the society aseforesaid, the Registrar, or any person empowered by him in this behalf, may by order in writing dimct him to forthwith hand over such charge and property. (3) If the retiring'CheiI-man to whom a. direction has been isaaued as aforesaid does not comply withjuch direction, he shall on conviction be punished With Iimpie imprisonment Which may extend to one month, er with fine which may extend to five hundred rupees, or with both, and the Registrar may on the retiring Chairman’s failure to comply with such direction, take order for seizing the records ami property ‘ and to hand over to the new Chairman, in the manner provided in section 80. 160. The Registrar, a. person exercising the power of the Registrar, a person autherisedto audit the accountsef a. society under seetion 81, or to hold an enquiry under section 83,- or to make au‘inspection under section 84, and a person appointed as an administrator under section 78, \. or as a. nominee or board of nominees under section 93, or as a Liqui- dator under section 103, shall be demeed to be public setVunts within , the meaning of section 21 of the Indian Penal Code. 161. No suit, prosecution or other legal proceedings shall lie against the Registrar or any perSOn subordinate to him or acting on his authority, in refipect of anything in good faith done, or purported to have done by him by or under this Act. 162. (1) Save as eXpreSsly provided in this Act, no Civil or Revenue Court shall have any jurisdiction in respect 055—“ (a) the registration of a, society‘or its bye-iaws, or the amendment of its bye-Iews, or the dissolution of the board of a society, or the management of the society on dissolution in thereof ; or (b) any dispute required to be referred to the Registrar, or his nominee, or board of nominees, for decision ; {(2) any matter concerned With the winding up and dissalution of a society. (2) Whilea Society is being wound up, the Suit or other legal proceedings relating to the business of such society shall be proceeded With or instituted against the society or any member thereof, or any matter touching the afi'airs of the society, except by leave of the Registrar, and subject to Such terms as he may impose. (3) All orders, decisions or awards passed in accordance with this Act or the rules, shall, subject to the provisions for appeal or revision in this Act be final, and no such order, decision or award shall be liable to be challenged, set aside, modifiefi, revised or declared Void in any Court upon the merits, or upon any other ground whatsoeVer except for want of jurisdiction. 163. No Suit shall be instituted against a Society, or any of its officers, in respect of any act touching the business of the society, until the expiration, of two months next after notice in writing has been delivered to the Registrar or left at his office, Stating the causes of action, the name, deacription and place of residence of the plaintifi' and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left. 164. (1) The State Government may, for the Whole or any part of the State and for any society or class of Soeieties, make rules for the conduct and regulation of the business of such society or class of soeie- ties and for carrying out the purposes of this Act. ‘2) In particular, and without prejudice to the generality" of the foregoing power, such rules may— (i) subject to the provisions of section 3, prescribe the designa- tion of officers who shall exercise powers vested in the Registrar ; 69 Indemnity for acts done in good faith. Bftr of juris- diction of Courts= Notice necessary in suits. Rules. (ii) prescribe the forms to be used and the conditions to be complied with in the making of applications for the regis- / tration of a society under section 8 and the procedure in ( the matter of such application ; (iii) prescribe the matters in respect of Which a society may make, or the Registrar may direct a society to make, bye-laws and the procedure to be followed in making, altering and abrogating bye-Iaws and the conditions to be satisfied prior to such making, alteration or abrogation ; (iv) prescribe the procedure to be followed and conditions to be observed for change of name or liability, amalgamation, transfer, division, conversion, or reconstruction of society ; (v) prescribe the form of and procedure for an application under section 19 and the procedure for reconstruction of a society under that section ; (vi) prescribe the conditions to be complied with by a person applying for admission or admitted as a member and provide for the election and admission of members and the payment to be made and the interests to be acquired before the exercise of the right of the membership ; (vii) prescribe in the case of a federal society, or class of federal societies, the proportion of individual members or society members in such society or class of societies and the propor- tion of individual members to society members in the board of such society or class of Such societies ; (viii) subject to the provision of section 28, prescribe the maxi- mum number of shares or portion of the capital of a society which. may be held by a member ; (ix) prescribe the procedure for the admission of joint members, members of a joint Hindu undivided family, and minors and persons of unsound mind inheriting the share or interest of deceased members and provide for their rights and liabilities ; (2:) provide for the Withdrawal, removal or expulsion of members, and for the payments to them and for the liabilities of past members and the estate of deceased members ; (xi) prescribe the conditions and procedures for the transfer of share or interest ; (xii) provide for the nomination of a person to Whom the share or the interest of a deceased member may be paid or transferred ; (xiii) provide for ascertaining the value of a share or interest of a past member or deceased member ; (xiv) prescribe 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) provide for the procedure for registering the address'of a society and the change of its address. (xvi) prOvide for the formation 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) provide for securing that the share capital of any society shall be available in such a. 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 requirec’; (xviii) provide for the procedure to be adopted by a society with limited liability in order to reduce its share capital ; ' (xix) prescribe the period for and terms upon Which Government aid may be given to societies and terms under which the State Government may subscribe to the share capital of and guarantee the payment of the principal of and interest on debentures issued by societies ; (xx) regulate the manner in which funds may be raised by a society or class of societies by means of shares or debenture or otherwise and the quantum offunds so raised ; (xxi) prescribe the limits for loans to be granted bya. society or class of societies against different class of securities or without security and the procedure for granting loans ; . (xxii) prescribe the manner of recalling a. loan ; (xxiii) prescribe the limits for granting credit by a. non-credit society or a. class of non~credit Societies ; (xxiv) prescribe the pfohibitions and restrictions subject to Which societies may trade or transact business with persons Who are not members ; (xxv) preacribe 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 ; A (xxvi) provide for giving reasonable notice of the charge under section 48 ; (xxvii) prescribe the procadure by Which a sociegy shall calculate and write off bad debts ; (xxviii) prescribe the sums Which, in addition to those referred to in section 65(1), shall be deducted from profits before arriving at the profits for the purpose of section 65(2) ; ‘ (xxix) provide for the formation and maintenance of reserve fund, and the objects to which such fund may be applied and for the investment and used of any fund including reserve fund under the control of a society ; 71, 72 (xxx) prescribe the procedure and conditions under which profits may be distributed ; (xxxi) prescribe the rate at Which a. society shall contribute to: wards the educational fund of the State Federal Society under section (38 ; ' (xxxii) define the co-operative purpose for Which a. society shall, under section 69‘, utilise its fund ; (xxxiii) prescribe the mode of investment of funds of a society under section. 70 end the proportion of inVestmtnt in any ecurity or class of securities ; (xxxiv) provide for the payment of cotribution to any provident fund Which may be established by a, society for 1the benefit of officers and servants employed by it and for the adminis. tration of such provident fund ; (xxxv) prescribe the procedure and conditions for the exercise by a federal society of the powers conferred by this Act ; (xxxvi) provide for general meetings of the members, for the pro- cedure at such meetings and the powers to be exercised by such meetings ; (\xxxvii) prescribe the conditions in which a. membrr of a. society may be disqualified from voting ; (xxxvi‘ii) provide for the appointment, suspension and removal of the Board membere and other officers and for the appointment of administrator under section 78 and prescribe procedure of the meeting of the Board end for the powars to be exercised and the duties to be performed by the Board, administrator and other officers ; (xxxix) prescribe qualifications for members of the Board and employees of a. society or class of societies (duties to be performed by, and several and joint lialibilities therefor, of, such members) and the conditions of service subject to Which persons may be employed by societies ; (xl) prescribe the returns to be submitted by a society to the Registrar and provide for the persons by whom and the form in Which such returns shall be submitted ; (xli) provide for the persons by Whom and the form in Which copies of documedts and entries in books of societies may be certified and the charges to be levied for the supply of , copies thereof ; (xlii) provide for the procedure to be adopted by the Registrar in .. the cases Where the taking of possession of books, documents, securities, cash and other properties of a society or of a. society the afiairl of which have been ordered to be wound up, by the Registrar or by a. person entitled to the same is resisted er obstructed; (xliii) (311v): iphl'psclfibe the. account books to be kept by e soeiety or (xlv) » (3114): — (xlvii) ' (elviii) (xlix) (.1) (ti) (Iii) provide for the procedure to be adopted for taking possession of books, documents, securities, cash and other properties of a. society by a, person acting under secttons 81, 83 end 84 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 11];er to be tampered With or destroyed or rempved, class of Societies ; prescribe the procedure for conducting an audit, the matters on Which the auditor shell submit a. report, the form in whichthe statement of accounts shall be prepared for his audit, the limits within which the auditor may examine the monetary transactions of a. society, the form of audit memefendumfl and report and the chargee, if any, to be paid by a. society for audit ; prescribe theprocedure for appointment of auditors under section 81 ; prescribe the form for the rectification of defects discovered in the course of audit, inspection or inquiry ; prescribe the procedure and principles for the conduct of inquiry fender section§3 and inspection under section 84 ; prescribe the procedure for apportioning the cost of4 inquiry and in_epection and for, assessing damages against. delinquent premgtere fujnderh section. 88 end for recovery of cost and damage! prescribe the manner in which appointment shall be, made end control exercised by and the number of persons com- prising, and functions to be performed by, the authority constituted under section 90, the manner of election and nomination of such persons, the fees to be paid to such authority and the manner of such payment and the procedure for and the method of calculating any cost, charges or expen- ses required to be levied under this Act or the rules ; provide for appointment of the Registrar’s nominee or board of nomineeS, procedure to be followed in proceedings before the Registrar or his nominee or board of nominees and for fixing and levying the expenses for determing the dispute for enforcing the decisions or awards in such proceedings ; prescribe the form in which a. dispute: shall be referred to the Registrar ; (mi) provide for the issue and service of processes and for pro- viding of service thereof; 73 '74 (3‘7) (1V) (lvi) (lvii) (Iviii) (Iix) (1X) hm) (lxii) (lxiii) (lxiv) (1“) (vai) (lxvii) provide for the investigation of claims and objection that may be preferred against any attachment effected (under section 95) ; (é prescribe the procedure for and the method of recovery of any sums due under this Act or the rules ; prescribe the procedure to be followed for the custody of property attached under section 9:) ; prescribe the procedure to be followed in the execution of awards ; prescribe the manner in which any property shall be deli- VPI‘ed to, and the term and conditions subject to which such property shall be held by, a society under section 100 ; prescribe the procedure for attachment and sale of the pro- perty for the realisation of any security given by a person in the Course of eXecution proceedings ; prescribe the procedure and conditions for the exercise of the powers conferred under section 105 and the procedure to be followed by a Liquidator and provide for the disposal of surplus assets ; prescribe the matter in which an appeal shall lie from the order of a. Liquidator appointed under section 103 ; prescribe the procedure and conditions for the issue, redemp. tion re-issue. transfer, replacement or conversion of deben. tures issued by a. society to which chapter X1 is applicable ; prescribe the maximum amount of principal, the rate of interest and other conditions for the guarantee of debentures issaed by a society to which Chapter X1 is applicable ; prescribe the qualifications and methods of appointment of an officer to efi'eet sale under Section 233 and the powers and functions which such an officer may exercise ; prescribe for the appointment of a. receiver of the produce and income of the mortgaged property for sale under section 133. the conditions in which he may be appointed or removed, or the powers and functions which he may exercise and the expenses of management and remuneration which he may receive ; precribe the circumstances in which action may be taken by a Land Development Bank against a mortgagor under section 133 (2) ; prescribe, in case of sale of immovable property under Chapter XI— (a) the procedure for proclamation and conduct of the 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 disposalof the proceeds of sale ; (d) the procedure for a resale if any attempted sale is abandoned or the purchase money is not deposited within the presoribed time aid the penalty to be levied against the purchaser who fails so to deposit the pur- chase money ; (e) the form and method of disposal of money by a. Land Development Bank under section 135 ; (f) the form of sale certificate under section 136 ; (g) the procedure for the delivery by the Court of theproperty purchased to the purchaser under section 136; (h) the form of the notice referred to in section 143 ; and (i) the fee payable for the service of such notices and themanner of serving such. notice on, and of the trans-mitting landlords’ fee to, the landlord named in suchnotice: ; (vaiii) prescribe the time within which and the procedure accordingto which property purchased by a Land Development Bankat a sale of immovable property under Chapter XI shall bedisposed of by the bank ; (ixix) prescribe the procedure to be followed in presenting anddeepoeing of appeals ; (lxx) pnescribe the qualifications of the members of the Tribunal ; (lxxi) presaribe the method of communicating or publishing anyorder, decision or aWard required to be communicated orpublished under this Act or the Rules ; (lxxii) prescribe in the case of ?appeale lying to the State Govern-ment the authority to which power of hearing appeals maybe delegated; (lxxiii) provide that the contravention of any of the rules shall bean offence under the Act ; (lxxiv) provide for all other matters expressly required or allowedby this Act to be preteribed by rules ; (3) The power to make rules conferred by this section is subject?to the condition of the rules being made after previous publication ; 5g (4). All rules made under this section shall be laid for not less : the Legislature may make during the Session in which the \bid or the session immediately following. 'y' 81‘930 76 Repeal, u- ving and construction, Companies Act not to aPPly 165. (1) The Assam Cooperative Societies Act, 1949 (Act 1 of1950) in its application to the State of Manipur is hereby repealed ; Provided that, the regeal shall not efl'ect the previous operation 9;the Act so repealed and anything done or action taken or deemeqJ ofhave been done or taken (including any appointment or deleétit/made, a publication or other document filed, certificate of registrationgranted,~ agreements executed, notification, order, direction or noticeissued, regulation. form or bye-laws framed mile made or deemed to bemade or proceeding instituted before apy Registrar, Arbitrator,Liquidator or Tribunal or other Officer, authority or person, by orunder the pgovisionsof that Act, shall, in so far as it is not inconsistentwith the provisiong ,of this Apt, be deemed to haVo been done ortaken under the corresponding provisions of this Act, and shall continuein force unless and, until superseded by anything done or any actiontaken under, the Act. (2) Aeoordingly, all societies registered or deemed to be registeredunder_ the Act repealed the registration of which is in force at thecommencement of this Act shall on such commencement be deemed tobe registered under this Act and all proceedings pending immediatelybefore such eommenoement before any Registrar, Arbritator, Liquidatoror Tribunal or other officer, authority 01‘ person under the provisions ofthe repealed Act shall stand transferred, where necessary, to thoRegliystrartpArbitrator, Liquidator or Tribunal or other correspondingOfficeit, authority‘under this Act and if no such officer, authority orperson/exiStg 017 if there be a doubt as, to the corresponding officer,authority or persons to such officer, authority or person as the StateGovernment may designate and shall be continued and disposed ofbefore such officer, authority or person in accordance with theprovisionsof this Act. (3) Any reference to the Act repealed or to any provisions thereofor toany officer, authority or person entrusted with any functionsthereunder, in any law for the time being in force or in any instrumentor document, shall be, construed where neoesary, as a reference tothis Act, or its relevant provisions under this Act, and the correspondingofficer, authority or person, as the case may he shall have and exercisethe functions under the repealed Act or under the instrument ordocument. 166. For the removal of doubt, it is hereby declared that theprovisions of the Companies Act, 1956 shall not apply to loeietiesregistered, or deemed to be registered under thieAet. CHAPTER xv manner) COOPERATIVE BANKS 16-7; Notwithstanding anything contained in this Act, in the caseof an insured co-operative bank- “J? ~"" ~“' ,9“ a, (i) an order for the winding up, or an 'brder sanctioning a Scheme of compromise or arrangement, or of amalgamation, or recenstructien (including division or reorganisation), of the‘ bank may be made only With the previous sanction in writing of the Reserve bank of India ; (if) an order for the Winding up of the bank shall be made by the Registrar if so required by the Reserve Bank of India, in the circumstances referred to in 1[sect 13-D] of the 2[Deposit Insurance and Credit Guarantee t30rpomtion] Act, 1961; iii) if so required by the Reserve Bank of India. in the public interest or for preventing the affairs of the bank being con— ducted in a. manner detrimental to the interests of the depositors or for securing the proper management of the bank, an order shall be made for supersession (removal) of the committee of management and the appointment of an Administrator therefor for such period or periods, not exceeding five years in the aggregate, as may from time to time be specified by the Reserve Bank of India, and the Administrator so appointed shall, after the expiry of his term of office, continue in office until the day immediately preceding the date of the first meeting of the new committee ; (iv) no appeal, revision or review shall lie or be permissible against an order such as is referred to in clauses, (i), (ii) or (i) made with the previous sanction in writing or on the requisition of the Reserve Bank of India. and such order or sanction shall not be liable to be called in question in any manner ; and (v) the liquidate: or the insured oo-operetive bank or transferee bank, as the case may be, shall be under an obligation to repay the ”[Deposit Insurance and Credit Guarantee Corpo- petion] established under the ‘[Deposit Insurance and Credit Guarantee Corporation] Act, 1961, in the circumstances. to the extent and in the manner referred to in section 21 of that Act. Explanation :—For the purposes of this section “A Go-operative rank” means a. bank as has been defined in the 5[Deposit Insurance and Credit Guarantee Corporation] Act, 1961. (ii) “Insured Co-operative Bank” means a. society which is an insured bank under the provisions of the 6[Depoeit Insurance and Credit Guarantee Corporation] Act, 1961. (iii) “Trensferee Bank” in relation to an insured co-operative bank means a, co-operative bank, (a) with which such insured oo-operative bank is amalgamated, or (b) to which the assets and liabilities of such insured co-operetiva ‘ bank are transferred, or (G) into which such insured co-operative bank is divided or con- verted under the provisions of sections 17 and 18. 7f t / Amendment 1) The word. figures and letter were subetituted for the word and figures "sectionL; 130” by Man. Act12 of 1984, aeoton 15. 2, 3, 4, 5. 6 z— The Words “Deposit Insurance and Credit Guarantee Corporation”were substituted for the words "Deposit Insurance Corporation” by Man, Act 12 of 1984, sect. 15.