The Multi-State Co-operative Societies Act, 2002
Administered Ministry: Ministry of Cooperation
Section
Section 120A Filing of applications, documents, inspections, etc., in electronic form.
1[120A. Filing of applications, documents, inspections, etc., in electronic form.--(1) Notwithstanding anything to the contrary contained in this Act, and without prejudice to the provisions of the Information Technology Act, 2000 (21 of 2000), the Central Government may, from such date as may be notified, require that--
(a) such applications, returns, reports, statement of accounts, or any other particulars or document as may be required to be filed or delivered under this Act or the rules made thereunder, shall be filed in the electronic form and authenticated;
(b) such document, notice, any communication or intimation, as may be required to be served or delivered under this Act, shall be served or delivered in the electronic form and authenticated;
(c) such applications, returns, reports, statement of accounts, registers, bye-laws or any other particulars or documents and returns filed under this Act or the rules made thereunder shall be maintained by the Central Registrar in the electronic form and registered or authenticated, as the case may be;
(c) such applications, returns, reports, statement of accounts, registers, bye-laws or any other particulars or documents and returns filed under this Act or the rules made thereunder shall be maintained by the Central Registrar in the electronic form and registered or authenticated, as the case may be;
(e) such fees, charges or other sums payable under this Act or the rules made thereunder shall be paid through the electronic form, in such manner as may be prescribed.
(2) The Central Registrar shall--
(a) issue certificate of registration;
(b) register the amendment of bye-laws;
(c) register change of registered office;
(d) register any document;
(e) issue any certificate;
(f) issue notice; and
(g) receive such communication as may be required to be registered or issued or recorded or received, as the case may be,
under this Act or the rules made thereunder or perform duties or discharge functions or exercise powers under this Act or the rules made thereunder or do any act which is by this Act directed to be performed or discharged or exercised or done by the Central Registrar, in the electronic form in such manner as may be prescribed.]
(a) such applications, returns, reports, statement of accounts, or any other particulars or document as may be required to be filed or delivered under this Act or the rules made thereunder, shall be filed in the electronic form and authenticated;
(b) such document, notice, any communication or intimation, as may be required to be served or delivered under this Act, shall be served or delivered in the electronic form and authenticated;
(c) such applications, returns, reports, statement of accounts, registers, bye-laws or any other particulars or documents and returns filed under this Act or the rules made thereunder shall be maintained by the Central Registrar in the electronic form and registered or authenticated, as the case may be;
(c) such applications, returns, reports, statement of accounts, registers, bye-laws or any other particulars or documents and returns filed under this Act or the rules made thereunder shall be maintained by the Central Registrar in the electronic form and registered or authenticated, as the case may be;
(e) such fees, charges or other sums payable under this Act or the rules made thereunder shall be paid through the electronic form, in such manner as may be prescribed.
(2) The Central Registrar shall--
(a) issue certificate of registration;
(b) register the amendment of bye-laws;
(c) register change of registered office;
(d) register any document;
(e) issue any certificate;
(f) issue notice; and
(g) receive such communication as may be required to be registered or issued or recorded or received, as the case may be,
under this Act or the rules made thereunder or perform duties or discharge functions or exercise powers under this Act or the rules made thereunder or do any act which is by this Act directed to be performed or discharged or exercised or done by the Central Registrar, in the electronic form in such manner as may be prescribed.]
1. Ins. by s. 44, ibid. (w.e.f. 3-8-2023).
Section 120B Application of Banking Regulation Act, 1949.
1[120B. Application of Banking Regulation Act, 1949.--The provisions of this Act shall apply to a multi-State co-operative society in respect of matters relating to incorporation, regulation and winding up:
Provided that in case of a multi-State co-operative society carrying on the business of banking, the provisions of the Banking Regulation Act, 1949 (10 of 1949) shall also apply.]
Provided that in case of a multi-State co-operative society carrying on the business of banking, the provisions of the Banking Regulation Act, 1949 (10 of 1949) shall also apply.]
1. Ins. by s. 44, ibid. (w.e.f. 3-8-2023).
Section 121 Certain Acts not to apply.
(1) The provisions of the Companies Act, 1956 (1 of 1956) and the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969) shall not apply to the multi-State cooperative societies.
(2) The multi-State Co-operative societies registered or deemed to be registered under the provisions of this Act shall not indulge in monopolistic and restrictive trade practices as defined in the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969).
(2) The multi-State Co-operative societies registered or deemed to be registered under the provisions of this Act shall not indulge in monopolistic and restrictive trade practices as defined in the Monopolies and Restrictive Trade Practices Act, 1969 (54 of 1969).
Section 122 Central Government’s power to give directions to specified multi-State co-operative societies in public interest.
If the Central Government is satisfied that in the public interest or for the purposes of securing proper implementation of co-operative production and other developmental programmes approved or undertaken by the Central Government or to secure proper management of the business of the specified multi-State co-operative societies generally or for preventing the affairs of such society being conducted in a manner detrimental to the interests of the members, any depositors or creditors thereof, it is necessary to issue directions to any class of specified multi-State co-operative societies generally or to any specified multi-State co-operative society or societies in particular, the Central Government may issue directions to it or to them, from time to time, and all such specified multiState co-operative society or the societies concerned, as the case may be, shall be bound to comply with such directions.
Section 123 Supersession of board of specified multi-State co-operative society.
(1) If in the opinion of the Central Government, the board of any specified multi-State co-operative society is persistently making default or is negligent in the performance of the duties imposed on it by this Act or the rules or the bye-laws or has committed any act which is prejudicial to the interests of the society or its members, or has omitted or failed to comply with any directions given to it under section 122 or that there is a stalemate in the constitution or functions of the board, the Central Government may, after giving the board an opportunity to state its objections, if any, and considering the objections, if received, by order in writing, remove the board and appoint one or more administrators, who need not be members of the society, to manage the affairs of the society for such period not exceeding six months, as may be specified in the order which period may, at the discretion of the Central Government, be extended from time to time; so, however, that the aggregate period does not exceed one year:
Provided that in the case of a co-operative bank, the provisions of this sub-section shall have effect as if for the words "one year", the words "two years" had been substituted.
(2) The Central Government may fix such remuneration for the administrators, as it may think fit and the remuneration shall be paid out of the funds of the specified multi-State co-operative society.
(3) The administrator shall, subject to the control of the Central Government and to such instructions as it 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 specified multi-State co-operative society and take all such actions as may be required in the interests of the society.
(4) Save as otherwise provided in sub-section (5), the administrator shall, before the expiry of his term of office, arrange for the constitution of a new board in accordance with the bye-laws of the specified multi-State co-operative society.
(5) If, at any time during the period the administrator is in office, the Central Government considers it necessary or expedient so to do, it may, by order in writing giving reasons therefor, direct the administrator to arrange for the constitution of a new board for such specified multi-State co-operative society in accordance with the bye-laws of such society and immediately on the constitution of such board, the administrator shall hand over the management of such society to such newly constituted board and cease to function.
(6) Where a specified multi-State co-operative society is indebted to any financial institution, the Central Government shall, before taking any action, under sub-section (1) in respect of that society, consult the financial institution.
Explanation.--For the purposes of sections 122 and 123, "specified multi-State co-operative society" means any multi-State co-operative society in which not less than fifty-one per cent. of the paid-up share capital or, of total shares, is held by the Central Government.
Provided that in the case of a co-operative bank, the provisions of this sub-section shall have effect as if for the words "one year", the words "two years" had been substituted.
(2) The Central Government may fix such remuneration for the administrators, as it may think fit and the remuneration shall be paid out of the funds of the specified multi-State co-operative society.
(3) The administrator shall, subject to the control of the Central Government and to such instructions as it 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 specified multi-State co-operative society and take all such actions as may be required in the interests of the society.
(4) Save as otherwise provided in sub-section (5), the administrator shall, before the expiry of his term of office, arrange for the constitution of a new board in accordance with the bye-laws of the specified multi-State co-operative society.
(5) If, at any time during the period the administrator is in office, the Central Government considers it necessary or expedient so to do, it may, by order in writing giving reasons therefor, direct the administrator to arrange for the constitution of a new board for such specified multi-State co-operative society in accordance with the bye-laws of such society and immediately on the constitution of such board, the administrator shall hand over the management of such society to such newly constituted board and cease to function.
(6) Where a specified multi-State co-operative society is indebted to any financial institution, the Central Government shall, before taking any action, under sub-section (1) in respect of that society, consult the financial institution.
Explanation.--For the purposes of sections 122 and 123, "specified multi-State co-operative society" means any multi-State co-operative society in which not less than fifty-one per cent. of the paid-up share capital or, of total shares, is held by the Central Government.
Section 124 Power to make rules.
(1) The Central Government may, by notification, make rules to carry out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the form to be used, the particulars to be given and the conditions to be complied with in the making of applications under section 6 for the registration of a multi-State co-operative society and the procedure in the matter of such applications;
(b) the matters in respect of which a multi-State co-operative society may make bye-laws under sub-section (2) of section 10;
(c) the manner in which the order of refusal to register any amendment of the bye-laws shall be communicated under sub-section (9) of section 11;
(d) the manner in which a multi-State co-operative society shall have a principal place of business and registered address under section 14;
(e) the procedure and conditions for change in the extent of the liability of a multi-State cooperative society under section 16;
(f) the manner in which order of refusal to register an amendment of bye-laws shall be communicated under sub-section (4) of section 22;
(g) the classification of federal co-operative and other terms and conditions applicable to in under sub-section (3) of section 23;
(h) the restriction on holding the share capital of the society other than a member referred to in section 33;
(i) the constitution and powers of smaller body representing the general body under the proviso to sub-section (1) of section 38;
(j) the period within which annual general meeting be called and the procedure at such meetings and the powers to be exercised by such meeting under section 39;
(k) the election of members of the board under sub-section (2) of section 45 through secret ballot;
(l) the nomination of members under the second proviso to sub-section (1) of section 48;
(m) the additional measures and acts which may be taken or, as the case may be, done by the board under section 49;
(n) the salary and allowances payable to and other terms and conditions of the Chief Executive under sub-section (3) of section 51;
(o) the conditions subject to which the board may constitute an Executive Committee and other committees or sub-committees under sub-section (1) of section 53;
(p) the persons by whom and the form in which copies of entries in books of multi-State cooperative societies may be certified under section 58 and the charges to be levied for the supply of such copies;
(q) providing aid to multi-State co-operative societies on certain terms and conditions under clause (g) of section 61;
(r) the conditions under which profits may be distributed to the members of a multi-State cooperative society and the maximum rate of dividend which may be paid by the multi-State cooperative societies under section 63;
(s) establishment of contributory provident fund under sub-section (1) of section 69;
(t) the manner of disposing of the surplus under clause (k) of sub-section (2) of section 90;
(u) the manner in which surplus assets be divided by the Central Registrar with the previous sanction of the Central Government under clause (b) of section 91;
(v) the appellate authority to be specified under sub-section (2) of section 99;
(w) the procedure under section 103 for reconstitution and reorganisation of societies which became the multi-State co-operative societies consequent on reorganisation of states;
(x) the inspection of records of the society on payment of fees under clause (b) of sub-section (2) of section 107;
(y) any other matter which is required to be, or may be, prescribed.
(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:--
(a) the form to be used, the particulars to be given and the conditions to be complied with in the making of applications under section 6 for the registration of a multi-State co-operative society and the procedure in the matter of such applications;
(b) the matters in respect of which a multi-State co-operative society may make bye-laws under sub-section (2) of section 10;
(c) the manner in which the order of refusal to register any amendment of the bye-laws shall be communicated under sub-section (9) of section 11;
(d) the manner in which a multi-State co-operative society shall have a principal place of business and registered address under section 14;
(e) the procedure and conditions for change in the extent of the liability of a multi-State cooperative society under section 16;
(f) the manner in which order of refusal to register an amendment of bye-laws shall be communicated under sub-section (4) of section 22;
(g) the classification of federal co-operative and other terms and conditions applicable to in under sub-section (3) of section 23;
(h) the restriction on holding the share capital of the society other than a member referred to in section 33;
(i) the constitution and powers of smaller body representing the general body under the proviso to sub-section (1) of section 38;
(j) the period within which annual general meeting be called and the procedure at such meetings and the powers to be exercised by such meeting under section 39;
(k) the election of members of the board under sub-section (2) of section 45 through secret ballot;
(l) the nomination of members under the second proviso to sub-section (1) of section 48;
(m) the additional measures and acts which may be taken or, as the case may be, done by the board under section 49;
(n) the salary and allowances payable to and other terms and conditions of the Chief Executive under sub-section (3) of section 51;
(o) the conditions subject to which the board may constitute an Executive Committee and other committees or sub-committees under sub-section (1) of section 53;
(p) the persons by whom and the form in which copies of entries in books of multi-State cooperative societies may be certified under section 58 and the charges to be levied for the supply of such copies;
(q) providing aid to multi-State co-operative societies on certain terms and conditions under clause (g) of section 61;
(r) the conditions under which profits may be distributed to the members of a multi-State cooperative society and the maximum rate of dividend which may be paid by the multi-State cooperative societies under section 63;
(s) establishment of contributory provident fund under sub-section (1) of section 69;
(t) the manner of disposing of the surplus under clause (k) of sub-section (2) of section 90;
(u) the manner in which surplus assets be divided by the Central Registrar with the previous sanction of the Central Government under clause (b) of section 91;
(v) the appellate authority to be specified under sub-section (2) of section 99;
(w) the procedure under section 103 for reconstitution and reorganisation of societies which became the multi-State co-operative societies consequent on reorganisation of states;
(x) the inspection of records of the society on payment of fees under clause (b) of sub-section (2) of section 107;
(y) any other matter which is required to be, or may be, prescribed.
(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
Section 125 Power to remove difficulties.
(1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty:
Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
Provided that no order shall be made under this section after the expiry of two years from the commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.
Section 126 Repeal and saving.
(1) The Multi-State Co-operative Societies Act, 1984 (51 of 1984) is hereby repealed.
(2) Without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1897) with respect to repeals, any notifications, rule, order, requirement, registration, certificate, notice, decision, direction, approval, authorisation, consent, application, request or thing made, issued given or done under the Multi-State Co-operative Societies Act, 1984 (51 of 1984) shall, if in force at the commencement of this Act, continue to be in force and have effect as if made, issued given or done under the corresponding provisions of this Act.
(3) Every multi-State co-operative society existing immediately before the commencement of this Act which has been registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other Act relating to co-operative societies in force, in any State or in pursuance of the provisions of the Multi-unit Co-operative Societies Act, 1942 (6 of 1942), or the Multi-State Co-operative Societies Act, 1984 (51 of 1984) shall be deemed to be registered under the corresponding provisions of this Act, and the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, or the rules, continue to be in force until altered or rescinded.
(4) All appointments, rules and orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the Acts referred to in sub-section (1) shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made cancelling the registration of a multi-State co-operative society shall be deemed, unless the society has already been finally liquidated, to be an order made under section 86 for its being wound up.
(5) The provisions of this Act shall apply to--
(a) any application for registration of a multi-State co-operative society;
(b) any application for registration of amendment of bye-laws of a multi-State co-operative society, pending at the commencement of this Act and to the proceedings consequent thereon and to any registration granted in pursuance thereof.
(6) Save as otherwise provided in this Act, any legal proceeding pending in any court or before the Central Registrar or any other authority at the commencement of this Act shall be continued to be in that court or before the Central Registrar or that authority as if this Act had not been passed.
(2) Without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1897) with respect to repeals, any notifications, rule, order, requirement, registration, certificate, notice, decision, direction, approval, authorisation, consent, application, request or thing made, issued given or done under the Multi-State Co-operative Societies Act, 1984 (51 of 1984) shall, if in force at the commencement of this Act, continue to be in force and have effect as if made, issued given or done under the corresponding provisions of this Act.
(3) Every multi-State co-operative society existing immediately before the commencement of this Act which has been registered under the Co-operative Societies Act, 1912 (2 of 1912) or under any other Act relating to co-operative societies in force, in any State or in pursuance of the provisions of the Multi-unit Co-operative Societies Act, 1942 (6 of 1942), or the Multi-State Co-operative Societies Act, 1984 (51 of 1984) shall be deemed to be registered under the corresponding provisions of this Act, and the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, or the rules, continue to be in force until altered or rescinded.
(4) All appointments, rules and orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the Acts referred to in sub-section (1) shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made cancelling the registration of a multi-State co-operative society shall be deemed, unless the society has already been finally liquidated, to be an order made under section 86 for its being wound up.
(5) The provisions of this Act shall apply to--
(a) any application for registration of a multi-State co-operative society;
(b) any application for registration of amendment of bye-laws of a multi-State co-operative society, pending at the commencement of this Act and to the proceedings consequent thereon and to any registration granted in pursuance thereof.
(6) Save as otherwise provided in this Act, any legal proceeding pending in any court or before the Central Registrar or any other authority at the commencement of this Act shall be continued to be in that court or before the Central Registrar or that authority as if this Act had not been passed.