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THE CHHATTISGARH CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2012
THE CHHATTISGARH CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2012
(No.6 of 2013)
An Act further to amend the Chhattisgarh Co-operative Societies Act, 1960 (No.17 of 1961).
Be it enacted by the Chhattisgarh Legislature in the Sixty-third Year of the Re-public of India, as follows:-
1. Short title, extent and commencement
(1) This Act may be called the Chhattisgarh Co-operative Societies (Amendment) Act, 2012.
(2) It extends to the whole State of Chhattisgarh.
(3) It shall come into force from the date of its publication in Official Gazette.
2. Amendment of Preamble.
The Preamble of Chhattisgarh Co-operative Societies Act, 1960 (No. 17 of 1961) (hereinafter referred to as Principal Act), shall be substituted by the following:-
“An Act to organize and develop Co-operative as democratic instruments and people’s Institution based on the principles of voluntary formation, autonomous functioning, democratic member – control, member – economic participation and autonomous functioning.”
3. Amendment of Section 2
In Section 2 of the Principal Act, -
(i) In clause (y-i), the word “Registrar”, shall be substituted, by the following words -
“State Election Commission”
(ii) After clause (b-i), the following clause shall be added, namely:-
“(b-ii) “Authorised Person” means a person authorized by Registrar to act on his behalf under this Act.”
(iii) Clause (z) shall be substituted, by the following:-
“(z) “Co-operative Society” means a Co-operative Society registered or deemed to be registered under this Act.”
(iv) The Clause (d) shall be substituted by the following:-
(d) “Board” means the board of directors or the governing body of a co-operative society, by whatever name called, to which the direction and control of the management of the affairs of a society is entrusted to:
(v) clause (t-i), shall be substituted, by the following:-
(t-i) “Officer” means a person appointed by the society to discharge the function assigned by the society and includes any officer posted on deputation;
(vi) After clause (t-i), following clause (t-ia) shall be inserted namely:-
(t-ia) “Officer bearer” means a President, Vice-President, Chairperson, Vice-Chairperson, Secretary or Treasurer of a Co-operative society and includes any other person to be elected by the board of any co-operative society;
(vii) After clause (bb), the following clauses shall be added, namely:-
“(cc) “Scheduled Castes” means the Scheduled Castes specified in relation to this State under Article 341 of the Constitution of India;
(dd) “Scheduled Tribes” means the Scheduled Tribes specified in relation to this State under Article 342 of the Constitution of India;
(ee) “Tribunal” means the Chhattisgarh State Co-operative Tribunal constituted under Section 77.”
(ff) “Multi-State co-operative society” means a society registered or deemed to be registered under the Multi-State co-operative societies Act 2002 (No.39 of 2002)
(gg) “State level co-operative society” means a co-operative society having its area of operation extending to the whole of the State.
(hh) “Administrator” means a person appointed by Registrar with such terms and conditions to manage the affairs of the societies during the period in which the board of society is kept under supersession or suspension.
(ii) “Functional Director” means a Director other than elected and co-opted of the board, having functional responsibilities but re-presenting the board of directors, such as Managing Director, Additional Managing Director, Director Finance, Director Marketing, Secretary and other functional Officer etc;
(jj) “State Election Commission” means an authority or body referred to in article 243K of Constitution of India, for the purpose of superintendence, direction and control of the preparation of electoral rolls for and the conduct of, all elections to a co-operative society.
In this Act, wherever the word “Committee” occurs shall be substituted by the word “Board”
Insertion of new Section 19-E.
4. After Section 19-D of the Principal Act, the following Section shall be added, namely:-
“19-E. Education of members, etc. – (1) Every Co-operative society shall include in its budget every financial year, provisions for expenses on the Education and Training of Members, including officer bearer, other officer and Staff.
Amendment of Section 32.
5. After sub-section (3) of Section 32 of the Principal Act, the following shall be added, namely:-
(4) Every society shall carry on day to day business by its registered address and shall maintain records pertaining to the society at its registered address if the society does not –
(i) communicate the changed address to the Registrar, or
(ii) carry on the business at its registered address, or
(iii) maintain the records at its registered address.
The Registrar may impose penalty not exceeding fifty thousand rupees on the officer responsible after giving a reasonable opportunity of being heard.
Amendment Section 48
6. In Section 48 of the Principal Act, -
(i) sub-section (3) shall be substituted, namely:-
(3) “The reservation of the seats on the board of the society from among its members belonging to Scheduled Castes, Scheduled Tribes and Other Backward Classes shall be in proportion to their membership.”
Provided that such reservation shall not exceed 50% of membership of the board.
Provided further that one seat shall be reserved for Schedule Caste and Scheduled Tribes, as the case may be.
(ii) For sub-section (7), the following shall be substituted, namely:-
“(7) (a) A member who absents himself willfully in three consecutive meetings without reasonable cause, and which is proved after giving him reasonable opportunity, shall be ceased to be a member of the board, and is debarred from all consequential benefits.
(b) In a Co-operative Society, no member shall be qualified for election as member of the board, delegate or representative and entitled to vote in any election of the board, delegate or representative of the co-operative society unless he has availed minimum level of services by such society as may be prescribed in this regard from time to time.”
(iii) After sub-section (7), the following sub-sections shall be added, namely:-
“(8) Notwithstanding anything contained in this Act or the rules made thereunder or bylaws of the societies total number of members of the board shall not exceed twenty-one, of which two shall be women.
Provided further than co-opted specialist member appointed under provisions of sub-section (9) of this Section and ex-officio member, and Government nominee appointed under provisions of sub-section (1) of Section 52 and functional director(s) shall be excluded from the maximum number of members for the purpose of this sub-section.
(9) Notwithstanding anything contained in this Act or rules made thereunder, Board shall co-opt those persons as members of the board having experience in the field of banking management, finance or specialization in any other field relating to the objects and activities undertaken by the co-operative society, as member of the board of such society:
Provided that the number of such co-opted member shall not exceed two in addition to twenty-one members specified in sub-section (8) of this Section.
Provided further that such co-opted members shall not have the right to vote in any election of the co-operative society in their capacity as such member or to be eligible to be elected as office bearers of the board.”
Amendment of Section 49.
7. In Section 49 of the Principal Act,-
(i) In sub-section (1), for the words “three months before” the words “a period of six months of” shall be substituted.
(ii) In sub-section (l), after clause (f), the following clause shall be added, namely:-
“(g) appointment of Auditor for next financial year”.
(iii) After proviso to sub-section (7-A) (i), the following proviso shall be inserted, namely:-
“Provided further that the board may file a casual vacancy on the board by nomination out of the same class of members in respect of which the casual vacancy has arisen, if the term of board is less than half of its original term.”
(iv) For sub-section (8), the following shall be substituted, namely:-
“(8) Notwithstanding anything contained in this Act or Rules made thereunder the election of a board shall be conducted before the expiry of the term of the board. If the elections are not held before the expiry of the term, or board of society ceases to function due to the order of any court or otherwise all the members of the board shall be deemed to have vacated their seats and the powers of the board shall be deemed to have been vested in the Registrar and the State Election Commission shall hold elections within six months, or twelve months in case of the Co-operative Banks:
Provided that the Registrar may authorize any officer to exercise the powers of the board vested in him under this sub-section and the officer so authorized shall exercise such powers form the date of such authorization.”
Amendment of Section 50-A.
8. In Section 50-A of the Principal Act, the sub-section (1-A) and (1-B) shall be omitted.
Insertion of a new Section 50-B.
9. After Section 50-A of the Principal Act, the following shall be added, namely:-
“50-B. State Election Commission. –
(1) State Government may by notification in the Official Gazette Authorize State Election Commission to conduct Election of co-operative Societies and preparation of electoral rolls.
(2) State Election Commission shall in consultation with State Government appoint such numbers of officers and other staff as may be required for conducting election in respect of co-operative societies:
(3) In exercise of power under this section, the state election commission shall determine the duties and responsibilities as well as the powers that may be exercised by such officers and the staff refer to in sub-section (2), as the commission may deem fit for conducting the election.
(4) The State Government Shall, in consultation with the State election commission make rules for the preparation of electoral rolls for conducting elections to all co-operative societies.
(5) The process of Election to co-operative societies and the powers of returning office shall be as may be notified by the commission for the purpose.
(6) The commission shall notify the code of conduct to be followed by the candidates, others and functionaries engaged in the process of election for in enabling free and fair election.
(7) The commission shall also be empowers to requisition the services of other officers to aid and assist in the election, and such requisitioned officers will be under the over all supervisions in control of commission during the election.
(8) (a) It shall be obligatory on the president, Chairman and Functional Director of every co-operative society to notify state election commission about election and it shall be the duty of functional director to ensure that the request for holding elections is made available to the commission in time to enable the commission to conduct election:
(b) On receipt of the request as laid down under sub-section (3)(a) the Commission shall ensure that the election be held before the expiration of the term of existing board;
(c) It shall be the duty of the board of the society to ensure that all information, books and records are kept upto date and are being made available from time to time to the Commission or any person authorized by him in this behalf as may be required/expected by him for the purpose of election:
(d) The Board of the society shall also ensure that all such assistance is being made available to Commission by the society as may be expected by him in this regard to conduct elations;
(9) All expenses incurred in conducting the elections of the board of any society shall be borne by the society concerned.
(10) The Commission may issue such instructions to the board or its members which it may consider reasonable for conducting free and fair election. Instructions issued under this section by the Commission shall be binding on them.
Amendment of Section 52-B.
10. Section 52-B of the Principal Act, shall be omitted.
Amendment of Section 53.
11. In Section 53 of the Principal Act, -
(i) In clause (c) of sub-section (1), for the words “two years in the first instance” the words “six months” shall be substituted.
(ii) in third proviso of clause (c) of sub-section (1), for the figure and word “5 years” the figure and word “ 1 year” shall be substituted.
(iii) For sub-section (3), the following shall be substituted, namely:-
“(3) No such order shall remain in force for more than six months, and one year in case of Co-operative Banks.”
(iv) Sub-section (13) shall be omitted.
(v) After sub-section (13), the following shall be added, namely:-
“(14) where in the opinion of the Registrar:-
(i) the board of co-operative society is in persistent default, or negligent in the performance of its duties and has committed any act prejudicial to the interest of the co-operative societies or its member; or
(ii) there is stalemate in the constitution or functions of the board; or
(iii) the State Election Commission has failed to conduct election as per the Act, such board may be superseded or kept under suspension and the Registrar shall proceed to appoint administrator.
Provided further that the board of any such co-operative societies shall not be superseded or kept under suspension where there is no Government shareholding or loan or financial assistance or any guarantee by the Government.
Amendment of Section 56.
12. In Section 56 of the Principal Act, -
(i) After sub-section (1), the following shall be inserted, namely:-
“(1-a) Every society shall file returns within six months of the close of every financial year to the Registrar or any person authorized by him on his behalf pertaining to the following, namely:-
(i) Annual report of its activities;
(ii) Its audited statements of accounts:
(iii) Plan for surplus disposal as approved by the general body of the society;
(iv) List of amendments to the bylaws of the society, if any:
(v) Declaration regarding date of holding of its general body meeting and conduct of election where due; and
(vi) Any other information required by the Registrar in pursuance of any provisions of this Act.”
(ii) In sub-section (3), for the words “five thousand” the words “fifty thousand” shall be substituted.
Insertion of new Section 57-B.
13. After Chapter V and Section 57-A of the Principal Act, the following new Chapter V A and Section 57-B shall be inserted, namely:-
“CHAPTER V-A
Provision regarding short term Co-operative Credit Structure Societies
57-B. Management of short term Co-operative Credit Structure Societies.-
(1) Notwithstanding anything contained in this Act or Rules framed thereunder or bylaws of any registered society or orders issued thereunder, the provisions of this chapter shall have overriding effect.
(2) In this Chapter, unless the context otherwise requires. –
(i) “Affiliating Society” means a society of which another society or co-operative is a member;
(ii) “Co-operative” means a co-operative as defined under Section 2(f) of Chhattisgarh Swayatta Sahakarita Adhiniyam, 1999 (No. 2 of 2000);
(iii) “National Bank” means the National Bank for Agriculture and Rural Development established under Section 3 of the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981);
(iv) “Secondary Co-operative” means a co-operative registered under Chhattisgarh Swayatta Sahakarita Adhiniyam, 1999 (No. 2 of 2000) of which another co-operatives or society is a member;
(v) “Short term co-operative credit structure society” includes the State Co-operative Bank, a Central Co-operative Bank and a Primary Agricultural Credit Co-operative Society.
3 (a) Short term co-operative credit structure society shall be eligible to be a member of a secondary co-operative.
(b) A co-operative registered under Chhattisgarh Swayatta Sahakarita Adhiniyam, 1999 (No.2 of 2000) may become the member of an affiliating society registered under this Act.
(4) A short term co-operative credit structure society may become a member of an affiliating society or a secondary co-operative of its choice or leave the membership of such society or co-operative.
(5) (a) The bylaws or any amendment to the bylaws of a short term co-operative credit structure society shall be registered by the Registrar within thirty days from the date of receipt of the application.
(b) If the Registrar is satisfied that the proposed by laws or the amendments to the bylaws are contrary to the provisions of the Act and the rules made thereunder he shall reject the same duly recoding his reasons thereon within thirty days from the date of receipt of the application.
(6) (a) Every depositor in a primary agricultural credit co-operative society, subject to the criteria of minimum deposit amount and period, as prescribed by Registrar from time to time, shall be eligible to be a member of the society under sub-section (1) of Section 19 after subscribing the minimum share capital specified in the bylaws of the society and shall have full voting rights of a member.
(b) An individual or a group of borrower shall have the right to become member of a primary agricutlrual credit co-operative society under sub-section (1) of Section 19.
(c) Every group of depositor or a group of borrower admitted, as member under sub-section (1) of Section 19, shall be entitled to vote through a delegate nominated by such group.
(7) The short term co-operative credit structure society shall be autonomous in all financial and internal administrative matters especially in the following areas:-
(i) interest rates on deposits and loans in conformity with and subject to Reserve Bank’s guidelines.
(ii) borrowings and investments.
(iii) loan policies and individual loan decisions,
(iv) personnel policy, staffing, recruitment, posting and remuneration to staff, and
(v) internal control systems, appointment of auditors and compensation for the audit.
(8) The State Government’s subscription in the share capital of any short term co-operative credit structure society shall not exceed twenty five person and the State Government or such society may reduce the State Government’s subscription further as its choice.
(9) (a) There shall be only one nominee of the State Government in the board of the State Co-operative Bank or a Central Co-operative Bank if the State Government has subscribed to its share capital:
Provided that the nominee of the State Government in the board of the State Co-operative Bank or a Central Co-operative Bank shall not take part in election nor shall have any voting right in such election.
(b) (i) There shall be only one nominee of the State Government in the board of a primary agricultural credit co-operative society if the State Government has subscribed to its share capital:
Provided that the nominee of the State Government in a board in the primary agriculture credit society shall not take part in election nor shall have any voting right in such election.
(ii) A short term co-operative credit structure society shall have full freedom to transact with other societies registered under this Act or co-operatives registered under the Chhattisgarh Swayatta Sahakarita Adhiniyam, 1999 (No. 2 of 2000).
(10) A short term co-operative credit structure society shall have the freedom of entry and exit at any tier and there shall be no mandatory restrictions of geographical boundaries for its operations.
(11) A short term co-operative credit structure society may, subject to the guidelines of the Reserve Bank, invest or deposit its funds in any bank regulated by the Reserve Bank and not necessarily in the affiliating society to which it is affiliated.
(12) A short term co-operative credit structure society may obtain loans from any bank regulated by the Reserve Bank and refinance from the National Bank and not necessarily from the affiliating society to which it is affiliated.
(13) A primary agricultural credit co-operative society may pay dividend in accordance with the guidelines framed by the Registrar in consultation with the National Bank.
(14) No person shall be elected, nominated or co-opted or allowed to continue as a member of the board of a short term co-operative credit structure society, if he –
(i) is a person who represents a society other than a primary agricultural credit co-operative society on the board of a Central Co-operative Bank or the State Co-operative Bank, if the society he represents has committed a default towards the payments of such bank for a period exceeding ninety days:
(ii) is a person who committed a default towards the payments to a primary agricultural credit co-operative society or represents a primary agricultural credit co-operative society on the board of a Central Co-operative Bank or the State Co-operative Bank, if the society he represents has committed a default towards the payments of such bank for a period exceeding one year unless the default has been cleared:
(iii) is a person, who represents a society whose board is superseded
(15) (a) The board of the State Co-operative Bank and the Central Co-operative Banks shall not be superseded without prior consultation with the Reserve bank.
(b) The board of a primary agricultural credit co-operative society may be superseded only on any of the following grounds, if –
(i) the society incurs losses for three consecutive years;
(ii) serious financial irregularities as proven in enquiry for the purpose:
(iii) fraud has been identified;
(iv) lack of quorum in three consecutive meetings.
(16) (a) The State Election Commission shall conduct elections to a short term co-operative credit structure society before the expiry of the term of the existing board.
(b) The State Election Commission shall conduct elections to a short term co-operative credit structure society within six months in case of Primary Agricultural Credit Co-operative Society and twelve months in case of State Co-operative Bans and Central Co-operative Banks from the date of its supersession:
Provided that in circumstances beyond control, the Government may allow holding of such elections within a period not exceeding six months from the date of supersession.
(c) A member of the board of a primary agricultural credit co-operative society which has been superseded under this Act shall not be entitled to contest the election again for a period of three years from the date of supersession:
Provided that where the supersession is owing to the grounds contained in Section 15(b)(iv), the lack of quorum is not due to the absence of such member.
(17) The members of the board and Chief Executive Officers of the State Co-operative Bank or the Central Co-operative Banks who do not fulfill the criteria stipulated by the Reserve Bank shall be removed by the Registrar or the Appointing Authority, as the case may be, on the recommendation of the Reserve Bank or the National Bank.
(18) (a) Where the number of elected members on the board of a State Co-operative Bank or Central Co-operative Bank does not, in the opinion of National Bank, possess special knowledge or experience in such fields as may be stipulated by the National Bank, the State Co-operative Bank or the Central Co-operative Bank, as the case may be, shall co-opt such number of professional in such field, not exceeding two and the professionals so co-opted shall have full voting rights except the election irrespective of whether such professional is a member of the Society or not.
(b) If any person who, in the opinion of the Reserve Bank, has been co-opted as a member of the board under clause (a) of this sub-section without having requisite knowledge or experience as stipulated by the Reserve Bank, he shall, on being advised by the Reserve Bank or the National Bank, be removed from the office after giving him a reasonable opportunity of being heard.
(19) The Chief Executive Officer of the State Co-operative Bank and a Central Co-operative Bank, shall be appointed by the members of the board of the State Co-operative Bank or the Central Co-operative Bank, as the case may be, from among a panel of names not exceeding three persons eligible to hold the office of Chief Executive Officer in accordance with the criteria stipulated by Reserve Bank; and the aforesaid panel shall be recommended by a selection board consisting of the following persons all of whom shall be the members of the board of the State Co-operative Bank or the Central co-operative Bank as the case may be:-
(i) The nominee of State Government on the board.
(ii) The nominee of the National Bank on the board.
(iii) One other member of the board whether elected or co-opted.
(20) No primary agricultural credit co-operative society or its federation or association (except those which are permitted to act as a bank under Banking Regulation Act, 1949 (10 of 1949) shall be registered with the term ‘bank’ or any other derivative of the term ‘bank’ in its registered name or shall use the same as a part of its name;
Provided that where any primary agricultural credit co-operative society or its federation or association (except those which has permitted as a bank under Banking Regulation Act, 1949 (10 of 1949) has been registered using the term “bank” before the coming into force of this Act, the term “bank” along with its derivatives term shall be omitted within three months from the date of enforcement of this Act:
Provided further that where any such society fails to comply with the above provisions within the period specified therein, the Registrar shall order the winding up of such society after giving a reasonable opportunity of being heard.
(21) The financial accounts of the State Co-operative Bank or Central Co-operative Bank, as the case may be, audited and certified by an auditor or auditing firms from among the panel of such auditors approved by the Registrar and appointed by the General Body in this behalf.
(22) Where the Reserve Bank so requires, the Registrar shall conduct a special audit of the financial accounts of the State Co-operative Bank or the Central Co-operative Banks as the case may be, conduct the special audit and furnished the report of such audit in such manner and within such time as may be stipulated by the Reserve Bank.
(23) No authority other than the board of the short term co-operative credit structure society shall have the power to direct the society that a contribution to be made to any fund other than that required for improving its net worth or the financial position of such society.
(24) The prudential norms, stipulated by the Reserve Bank including norms for capital to risk weighted assets ratio, shall be prescribed by the Registrar in consultation with the National Bank in respect of all primary agricultural credit co-operative societies.
(25) (i) Where the Reserve Bank prescribes any regulation, including recommendation of supersession of a board or the winding up of State Co-operative Bank or Central Co-operative Banks, as the case may be, the Registrar shall comply with the same within one month from the date of such communication.
(ii) The Registrar shall ensure that the liquidator or the Administrator, as the case may be, is appointed within one month of being so advised by the Reserve Bank for winding up or supersession.
(iii) Where in the opinion of the Reserve Bank, the functioning of the Chief Executive Officer of the State Co-operative Bank or a Central Co-operative Bank, as the case may be, is such that it is not desirable in the interest of the bank to continue the person as the Chief Executive Officer of the bank, it may require the registrar to remove the Chief Executive Officer: and the registrar shall proceed forthwith to remove such Chief Executive Officers after giving a reasonable opportunity of being heard.
(iv) Where in the opinion of the Reserve Bank, a person does not possess the requisite special knowledge specified by it the Registrar shall on being advised by the Reserve Bank proceed forthwith to remove such co-opted member after giving a reasonable opportunity of being heard.
(26) Every employee of short term co-operative credit structure society shall be borne on the cadre of such Society and the Society shall have the full powers in all matters of appointment, promotion, disciplinary action, in respect of such employees:
Provided that the terms and conditions of an employee who is there on the date of this Act coming in to force, shall be protected.
(27) Where short term co-operative credit structure society is required to be exempted from any of the provisions of this Chapter in the public interest the State Government shall do so with the prior approval of Reserve Bank.
(28) No authority shall do anything or act in any manner which may have the effect of abridging the power of any short term credit structure society under the provisions of this Chapter.
Amendment of Section 58.
14. For Section 58 of the Principal Act, the following shall be substituted namely:-
58. Audit of Accounts. –
(1) Every co-operative society shall maintain books of accounts of its income, expenditure pertaining to the society’s in the forms to be prescribed by the Registrar and shall present the profit and loss account for each co-operative year and the balance sheet as on the last day of the co-operative year.
(2) Every co-operative society shall submit its books of accounts and record of all transactions and pertaining to all affairs for the purpose of audit by an auditor or auditing firm to be authorized by General Body from a panel approved by the Registrar.
(3) The Registrar shall not include a person who is not a member of the institute of Chartered Accounted of India or auditing firm which is not dully authorized by the said institute to conduct such audit.
Provided that in case of co-operative society with Government share holding or loan or financial assistance or any guarantee by the Government the Registrar may include the auditor in the panel.
(4) Every society shall get its accounts audited by a Auditors or group of Auditors authorized by Registrar in this behalf once at least every financial year and shall pay such fees for auditing as may be prescribed by the registrar in this regard:
Provided that –
(i) the State Government may be notification for reasons to be specified therein exempt any class of societies to pay such fees:
(ii) the Registrar shall lay down the minimum qualification and experience of such Auditor of auditing firms referred to in sub-section (1):
(iii) the accounts of every society shall be audited within six months of the close of the financial year to which such accounts relate and the accounts of the societies shall be maintained by the societies concerned in such a manner as may be prescribed by the Registrar in this regard:
(iv) the Auditors, to conduct the audit of the accounts of the society referred to in sub-section (I) shall be appointed by the general body of the society concerned amongst the panel of Auditor or auditing firms approved by the Registrar in this behalf:
Provided further that if there is a complaint of financial irregularities or embezzlement after the completion or issuance of the audit report, the Registrar may order special audit for the purpose.
(5) The audit under sub-section (4) shall include examination of the accounts and the overdue debts if any compliance of the instructions and order of the Registrar issued under this Act, rules made thereunder and bylaws of the society the verification of cash balance and securities and valuation of the assets and liabilities of the societies and such other items as may be specified by the Registrar.
(6) The Auditors or Auditing firms shall 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 of or responsible for the custody of any such books, accounts, documents, papers, securities, cash or other properties to produce the same at any place at the headquarters of the society or any branch thereof.
(7) Every person who is or has at any time been, an officer or employee of the society and every member and past member of a society shall furnish such information in regard to the transactions and working of the society as the Auditors or Auditing firms may require:
Provided that the audit report of accounts of an Apex Society shall be laid before the State legislature in such a manner, as may be prescribed by the State Government.
Amendment of Section 74.
15. (i) In clause (k) of Section 74 of the Principal Act for the full stop (.) after the word “offence” the semi colon (:) and word “or” shall be substituted.
(ii) In Section 74 of the Principal Act after clause (k) the following clauses shall be added, namely:-
“(I) any person willfully or without any reasonable excuse disobey any summons requisition or lawful written order issued under the provisions of this Act or rules made thereunder except as provided under sub-section (2) of section 59 of the Act: or
(m) any employer who is authorized to make deduction from his salary and other dues for remitting the same to such co-operative society without sufficient clause: or
(n) any person before during or after the election of members of the board or office bearers adopts any corrupt practice so declared by the state election commission.”
Amendment of Section 75.
16. In Section 75 of the Principal Act. –
(i) (1) In clauses (a), (d), (e) and (h) for the figure “2000” the figure “50,000” shall be substituted respectively.
(2) In clauses (b), (c) and (j) for the figure “1000” the figure “25,000” shall be substituted respectively.
(3) In clause (i) for the figure “500” the figure “25.000” shall be substituted.
(4) In clause (f), (g) and (k) for the figure “250” the figure “25.000” shall be substituted respectively.
(ii) In clause (k), for the full stop (.) after the figure and word “74(k)”, the semi colon (:) and word “or” shall be substituted.
(iii) After clause (k), the following clauses shall be added namely:-
“(I) with fine not exceeding Rs.50,000 provided that he is convicted of an offence referred to in Section 74(I): or
(m) with fine not exceeding Rs. 50,000 in each case, provided that he is convicted of an offence referred to in Section 74(m): or
(n) as prescribed by State Election Commission.
Insertion of Chapter X.
17. For Chapter X of the Principal Act, the following new chapter shall be substituted namely:-
“Chapter X
Constitution of Tribunal
77. Chhattisgarh State Co-operative Tribunal. –
(1) The State Government shall, by notification constitute a Tribunal called the Chhattisgarh State Co-operative Tribunal to exercise the powers and to discharge the functions conferred or imposed on the Tribunal by or under this Act and the Chhattisgarh Swayatta Sahkarita Adhiniyam, 1999 (No. 2 of 2000).
(2) The Tribunal shall consist of the Chairman and two other members.
(3) (a) No person shall be qualified to be the Chairman of the Tribunal unless he had been a Judge of a High Court or has held the office of a Dist. Judge for not less than five years.
(b) Of the other two members one shall be an officer of co-operative department not below the rank of Additional Registrar and the other shall be non-official closely associated with the co-operative movement or an Advocate or a Pleader having practical experience in the co-operative movement for a period of not less than fifteen years;
Provided that if the State Government thinks fit, the Tribunal may consist of a single person.
Explanation:- For the purpose of this sub-section “non-official” shall mean a person who on the date of his appointment as a member, does not hold any office of profit under the Government of India or the Government of any State.
(4) Notwithstanding anything contained in sub-section (1) a person shall be disqualified for being appointed as or for being a Chairman or a Member of the Tribunal, if he is a member of the Board of any society other than a general body of a society.
(5) (a) The Chairman and other members of the Tribunal shall hold office ordinarily for a period of not less than two years and not more than five years as the State Government may, by notification specify in this behalf.
(b) A person who has held office as the Chairman or a member for a period mentioned in clause (a) shall be eligible for reappointment.
(c) The Chairman or member of the Tribunal may at any time resign his office.
(d) The Chairman or a member of Tribunal may with the permission of the State Government held any other office appointment of not in consist with his position on the Tribunal.
(6) Notwithstanding anything contained in sub-section (4) the State Government may terminate at anytime, the appointment of the Chairman or a member if in its opinion such Chairman or member is unable or unfit to continue to perform the duties of his office:
Provided that no appointment shall be terminated under this sub-section unless the person whose appointment is proposed to be terminated is given a reasonable opportunity of showing cause against such termination.
(7) (a) If any vacancy occurs in the office of the Chairman or member by leave, absence, deputation, death, resignation, expiry of the term of appointment, termination of the appointment or for any other cause, whatsoever, such a vacancy shall be filled by appointment of a person qualified for appointment under this Section.
(b) Till the vacancy in the office of the Chairman is filled under sub-section (1), the senior most member shall act as the Chairman of the Tribunal.
(8) The headquarters of the Tribunal shall be at such place as may be notified by the State Government in the Gazette.
(9) The powers and functions of the Tribunal may be exercised and discharged by Benches constituted by the Chairman from amongst the members of the Tribunal including himself.
Provided that, any interlocutory application may be hard by one of more members to may be present.
(10) Such Benches shall consist of to or more members.
(11) Where a matter is heard by three members the opinion of the majority shall prevail, and the decision shall be in accordance with the opinion of the majority. Where a matter is heard by an even number of members, and the members are equally divided in the Chairman be one of the members, the opinion of the Chairman shall prevail and in other cases the matter be referred for hearing to the Chairman and shall be decided in accordance his decision.
(12) Subject to the previous sanction of the State Government, the Tribunal shall frame regulations consistent with the provisions of this Act and the rules made thereunder, for regulating its procedure and the disposal of its business.
(13) The regulations made under sub-section (12), shall be published in Official Gazette.
(14) The Tribunal may suo motu or on the application of the party call for and examine the records of any proceedings in which no 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 decisions or orders should be modified, annulled or reversed, the Tribunal may pass such order thereon as it may deem just.
(15) Where an appeal or application is made to the Tribunal under this Act, it may, in order to prevent the ends of justice being defeated, make such interlocutory orders pending the decision of the appeal or applications, as the case may be, as 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.
(16) An order in appeal, or revision or review passed under this Act by the Tribunal, shall be final and conclusive, and shall not be called in question in any Civil or Revenue Court.
(17) The Tribunal hearing an appeal under this Act shall exercise all the powers conferred upon an appellate court by section 96 and order XLI of the Code of Civil Procedure, 1908 (5 of 1908).
77-A. Review. –
(I) The Tribunal or Registrar may on the application of any party interested, review its own order in any case and pass such order in reference thereto as it thinks just:
Provided that no such application made by the party interested shall be entertained, unless the Tribunal or the Registrar as the case may be is satisfied that there has been the discovery of new and important matter of evidence, which after the exercise of due diligence was not within in 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 mistake or error apparent on the face of the record or there is any other sufficient reason:
Provided further that no such order shall be varied, amended 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 of any order, by the parties interested shall not be entertained, unless the application is filed within ninety days from the date of passing of the order.
77-B. Tribunal to exercise powers of a civil court. –
(I) In exercising the powers conferred on it by or under this Act, the Tribunal shall have all the powers as are vested in Civil Court while trying a suit under the code of Civil Procedure, 1908 (5 of 1908) –
(a) proof of facts by affidavits;
(b) summoning and enforcing the attendance of any person and examining him on oath;
(c) compelling discovery or the production of any document; and
(d) issuing commissions for the examination of witnesses.
(2) In the case of any such affidavit, any officer appointed by the Tribunal in this behalf may administer oath to the deponent.
78. Appeals before the Registrar and Tribunal. –
(1) Save where it has been otherwise provided, an appeal shall lie from every original order under this Act or the rules made thereunder:-
(a) If such order is passed by any officer subordinate to Registrar other than Additional Registrar or Joint Registrar, whether or not the officer passing the order is invested with the powers of the Registrar, to the Registrar;
(b) If such order is passed by the Registrar, Additional Registrar or Joint Registrar, to the Tribunal.
(2) A second Appeal shall lie against any order passed in the first appeal by the registrar, to the Tribunal on any of the following grounds only, namely:-
(i) that the order is contrary to law; or
(ii) that the order has failed to determine some material issue of law; or
(iii) that there has been a substantial error or defect in the procedure as prescribed by this Act which may have produced error or defect in the decision of the case upon merits.
(3) Every appeal shall be presented in the prescribed manner to the appellate authority concerned within sixty days from the date on which the order appealed against was communicated to the party affected by the order:
Provided that in computing the period of limitation under this sub-section the time required for obtaining a copy of the order appealed against shall be excluded.
78-A. Extension of period of limitation by appellate authority in certain cases. –
In all cases in which it is provided under this Act than an appeal may be filed against any decision or order within a specified period, the appellate authority may admit an appeal after the expiry of such period if the appellant satisfied the appellate authority that he had sufficient cause for not preferring the appeal within such period.
79. No appeal or review in certain cases. – Notwithstanding anything to the contrary contained in this Act, where with previous sanction in writing or on the requisition of the Reserve bank of India –
(i) an order for the winding up of a co-operative bank; or
(ii) for a scheme of compromise or arrangement or reconstruction or re-organization or amalgamation; or
(iii) an order of supersession or suspension of the Board by whatever name called of a Co-operative Bank and the appointment of an officer-in-charge therefore, has been made.
No appeal or review shall lie or be permissible against that, and such order or the sanction or requisition of the Reserve Bank of India shall not be liable to be called in question where such order, scheme compromise, arrangement, reconstruction, re-organization or amalgamation is passed or made.
80. Transfer or withdrawal of cases. – Subject to the provision of section 78, the Registrar, Additional Registrar or Joint Registrar may make over any case or class of cases arising under the provisions of this Act, for decision before him to any officer subordinate to him competent to decide such case or, class of cases or may withdraw any case or class of cases for decisions before any such officer and may proceed to deal with such case or class of cases himself or refer the same to any other officer subordinate to him and competent to decided such case or class of cases.
80-A. Power of Registrar to call for proceedings of subordinate officers and board of a society and to pass order thereon. – The Registrar may, at any time on his own motion or on the application made by any party, call for and examine the record of any enquiry or the proceedings by any subordinate officer or a decision of board of a society for the purpose of satisfying himself as to the legality or propriety of any decision or order passed and as to the regularity of the proceedings of such officer or board. If in any case, it appears to the Registrar that any decision or order or proceedings so called for should be modified, annulled or reversed, the Registrar, may pass such order thereon as he may deem fit:
Provided that no order under this Section shall be made to the prejudice of any party unless such party has had an opportunity of being heard:
Provided further that the powers conferred on the Registrar under this Section, shall not be delegated to any officer below the rank of Joint Registrar.
80-B. Power to make interlocutory orders. – When an application for appeal or review is made to Tribunal, or Registrar under this Act, it may in order to prevent the ends of justice being defeated, make such interlocutory order pending the decision of the appeal or application, as the case may be, as may appearing to it/him to be just and convenient, or make such orders as may be necessary for the ends of justice, or to prevent the abuse of legal process.
80-C. Stay of execution of orders. –
(1) An officer appointed under section 3 who has passed any order or his successor in office may, at any time before the expiry of the period prescribed for appeal direct the execution of such order to be stayed for such time as may be required for filing an appeal and obtaining a stay order from the appellate authority.
(2) The authority exercising the powers conferred by section 78 or section 80 may direct the execution of the order under appeal or review to be stayed for such time as it may think fit.
(3) The officer or authority directing the execution of an order to be stayed may impose such conditions or order such security to be furnished as he or it thinks fit.
80-D. Transfer of pending cases. – Every appeal or any other proceeding pending before the State Government, immediately before the date of constitution of Chhattisgarh State Co-operative Tribunal under this Act, shall stand transferred to the Tribunal from the date of notifications by Government of Chhattisgarh.”
18. 95-A. After Section 95 of the principal Act the following section shall be inserted namely:-
Removal of difficulties
(1) If any difficulty arises in giving effect to the provisions of this Act, the State Government may pass such order not inconsistent with the provisions of this Act, as it may deem necessary to remove such difficulty:
Provided that no such order shall be passed after the expiry of the period of two years from the date of coming into force of this Act.
(2) The order passed under sub-section (1) shall be laid on the table of the legislative assembly, as soon as may be, and in any case, not later than the last day of session next following the date of the order.”
