GOVERNMENT  OF  MAHARASHTRA

LAW  AND  JUDICIARY  DEPARTMENT

Maharashtra Act No. XXIV of 1961

The Maharashtra Co-operative Societies
Act, 1960

(As modified upto the 11th May 2018)



PRINTED IN INDIA BY THE MANAGER, GOVERNMENT CENTRAL PRESS, MUMBAI
AND PUBLISHED BY THE DIRECTOR, GOVERNMENT PRINTING, STATIONERY
AND PUBLICATIONS, MAHARASHTRA STATE, MUMBAI 400 004

2018

[Price—Rs.  157.00 ]

1961 : Mah. XXIV]

Maharashtra Co-operative Societies  Act, 1960

(i)

THE  MAHARASHTRA  CO-OPERATIVE  SOCIETIES  ACT,  1960

PREAMBLE.
SECTIONS.

CONTENTS

CHAPTER  I

PRELIMINARY

1. Short  title,  extent  and  commencement.

2. Definitions.

CHAPTER  II

REGISTRATION

3. Registrar  and  his  subordinates.

3A. Temporary  vacancies.

4. Societies  which  may  be  registered.

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5. Registration  with  limited  or  unlimited  liability. . .

6. Conditions  of  registration.

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7. Power to exempt societies or class of societies from conditions as

to  registration.

8. Application  for  registration.

9. Registration.

10. Evidence  of  registration.

11. Power  of  Registrar  to  decide  certain  questions.

12. Classification  of  societies.

13. Amendment  of  by-laws  of  society.

14. Power  to  direct  amendment  of  by-laws.

15. Change of name.

16. Change  of  liability.

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17. Amalgamation,  transfer,  division  or  conversion  of  societies.

18. Power to direct amalgamation, division and reorganisation in the

public  interest  of  members,  etc.

18A. Amalgamation  of    Co-operative  banks.

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18B. Amalgamation  of  primary  agricultural  credit  societies.

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18C. Reorganisation  of  societies  on  account  of  alteration  of  limits  of

local  areas  in  which  they  operate.

19. Reconstruction  of  societies.

20. Partnership  of  societies.

20A. Collaboration  by  societies.

21. Cancellation  of  registration.

21A. De-registration  of  societies.

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(ii)

Maharashtra Co-operative Societies  Act, 1960

[1961 : Mah. XXIV

SECTIONS.

CHAPTER  III

PAGE

MEMBERS AND THEIR RIGHTS AND LIABILITIES

22. Person  who  may  become  member.

23. Open  membership.

24. Nominal  and  associate  member.

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24A. Co-operative  education  and  training  to  members,  etc.

25. Cessation  of  membership.

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25A. Removal  of  names  of  members  from  membership  register.

26. Rights and duties of members.

27. Voting  powers  of  members.

28. Restrictions  on  holding  of  shares.

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29. Restrictions  on  transfer  or  charge  of  share  or  interest.

30. Transfer of  interest on death  of member.

31. Share or  interest not liable  to attachment.

32. Rights of members to see books, etc.

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32A. Certain  societies  to  give  pass  books  to  members  and  entries  in

such  book  evidence of  amount  due.

33. Liability of past  member and estate of  deceased member.

34.

Insolvency  of  members.

35. Expulsion  of  members.

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CHAPTER  IV

INCORPORATION, DUTIES AND PREVILEGES OF SOCIETIES

36. Societies  to  be  bodies  corporate.

37. Address  of  societies.

38. Register  of  members.

39. Copy of Act, etc., to  be open to inspection.

40. Admissibility  of  copy  of  entry  as  evidence.

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41. Exemption  from  compulsory  registration  of  instruments  relating

to  shares  and  debentures  of  society.

42. Power  to  exempt  from  taxation ;  power  to  refund.

43. Restrictions  on  borrowings.

44. Regulation  of  loan  making  policy.

44A. Limit  on  interest in  certain  cases.

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45. Restrictions  on  other  transactions  with  non-members.

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46. Charge and set-off  in respect of share or  interest of members.

47. Prior  claim  of  society.

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48. Charge  on  immovable  property  of  members  borrowing  from

certain  societies.

48A. Deduction from sale price of certain agricultural produce to meet

society’s  dues.

49. Deduction  from  salary  to  meet  society’s  claim  in  certain  cases.

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1961 : Mah. XXIV]

Maharashtra Co-operative Societies  Act, 1960

(iii)

SECTIONS.

CHAPTER  V

STATE AID TO SOCIETIES

PAGE

50. Direct  partnership  of  State  Government  in  societies.

51.

Indirect  partnership  of  State  Government  in  societies.

52. Principal  State  Partnership  Fund.

53. Subsidiary  State  Partnership  Fund.

. .

. .

54. Approval  of  State  Government  for  purchase  of  shares.

55. Liability  to  be  limited in  respect  of  certain  shares.

56. Restriction  on  amount  of  dividend.

57.

Indemnity  of  Apex  and  Central  societies.

58. Disposal  of  share  capital  and  dividend,  etc.

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59. Disposal  of  Principal  or  Subsidiary  State  Partnership  Fund  on

winding  up  of  Apex  or  Central  society.

60. Principal or Subsidiary State Partnership Fund not to form part

of  assets.

61. Agreement  by  State  Government  and  Apex  societies.

62. Other  forms of  State  aid to  societies.

. .

63. Provisions  of  this  Chapter  to  override  other  laws.

CHAPTER  VI

PROPERTY AND FUNDS OF SOCIETIES

64. Funds  not to  be  divided.

65. Ascertainment  and  appropriation  of  profits.

66. Reserve  Fund.

67. Restrictions  on  dividend.

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68. Contribution  to  education  fund  of  the  State  federal  society.

69. Contribution  to  public  purposes.

69A.

[Deleted].

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69B. Constitution  of  District  Level  and  State  Level  Committees.

70.

Investment  of  fund.

71. Employees’  provident  fund.

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71A. Funds not to be utilised for certain proceedings filed or taken by

or  against  officers  in  personal  capacities.

CHAPTER  VII

MANAGEMENT OF SOCIETIES

72. Final  authority  of  society.

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72A. Freedom of affiliation or disaffiliation with a federal structure of

choice.

73. Committee,  its  powers  and  functions.

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(iv)

Maharashtra Co-operative Societies  Act, 1960

[1961 : Mah. XXIV

SECTIONS.

73-IA.

[Deleted].

73-IB.

73-IC.

[Deleted].
[Deleted].

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73-ID. Motion  of  no-confidence  against  officers    of  societies.

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73A. Disqualification  for  being  designated  officer  simultaneously  of

certain  categories  of  societies.

73AAA. Constitution  of  Committee.

73-AA.

73-AB.

[Deleted].
[Deleted].

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73-B. Reservation  of  certain  seats  on  committees  of  societies  and

73-BB.

73-BBB.

election  thereto.
[Deleted].
[Deleted].

73C. Reservation  for  women.

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73-CA. Disqualification  of  committee  and  its  members.

73CB. State  Co-operative  Election  Authority.

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73CC. Power  of State  Government  to  postpone  election.

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73D. Society’s  nominee  on  other  society  not  eligible  to  be  designated

officer,  except  in  a  federal  society.
[Deleted].
[Deleted].

73E.

73EA.

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73F. Election  to  more than  one  seat  on  the committee  of  society.

73FF.

73-FFF.

73-G.

73H.

[This section was re-numbered as section 73CA by Mah. 16 of 2013,
s. 36.].
[Deleted].
[Deleted].
[Deleted].

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73I. Responsibility  of  committee  or  the  Administrators  or  authorised
officer to intimate and assist to arrange for election, before expiry
of  term.

74. Qualification  and  appointment  of  Manager,  Secretary  and  other
officers  of  societies  and  of  Chief  Executive  Officer  and  Financial
Officer  for  certain  societies.

75. Annual  general  body  meeting.

76. Special  general  body  meeting.

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77. Acts  of  societies,  etc.,  not  to  be  invalidated  by  certain  defects.

77A. Appointment  of  member  of  committee,  new  committee,  or
authorised  officers,  where  there  is  failure  to  elect  member,  to
constitute  committee  or  where  committee  does  not  enter  upon
office,  etc.

78. Power  of  suspension  of  committee.

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78A. Power of supersession of committee or removal of member thereof.

79. Society’s obligation to file returns and statements and Registrar’s

power  to  enforce  performance  of  such  obligations.

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Maharashtra Co-operative Societies  Act, 1960

SECTIONS.

79A. Government’s power to give directions in the public interest, etc.

79AA. Registrar’s  powers  to  give  directions  to  frame  regulations.
79-B.

[ Deleted].

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80. Registrar’s  power  to  seize  records,  etc.

CHAPTER  VIII
AUDIT, INQUIRY, INSPECTION AND SUPERVISION

Inquiry  by  Registrar.
Inspection  of  books  of  indebted  society.

81. Audit.
82. Rectification  of  defects  in  accounts.
83.
84.
85. Costs  of  inquiry  and  inspection.
86. Recovery  of  costs.
87. Registrar  to  bring  defects  disclosed  in  inquiry  or  inspection  to

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notice  of  society.

88. Power  of  Registrar  to  assess  damages  against  delinquent

promoters,  etc.

88A. Deposit  towards  fees  of  inquiry.
     89. Power  to  enforce  attendance,  etc.

89A. Power  to  inspect  working  of  society.

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90. Constitution  or  recognition  of  federal  authority  to  supervise

working  of  societies.

CHAPTER  IX
SETTLEMENT OF DISPUTES

91. Disputes.

91A. Constitution  of  Co-operative  Courts.

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92. Limitation.
93. Transfer of disputes from one Co-operative Court to another, and

suspension  of  proceedings  in  certain  cases.

94. Procedure  for  settlement  of  disputes  and  power  of  Co-operative

Court.

95. Attachment  before  award  or  order  and  inter-locutory  orders.
96. Decision  of  Co-operative  Court.
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97. Appeal against decision under section 96 and order under section

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95.

98. Money  how  recovered.
99. Private  transfer  of  property  made  after  issue  of  certificate  void

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aganist  society.

100. Transfer  of  property  which  cannot  be  sold.
101. Recovery  of  certain  sums  and  arrears  due  to  certain  societies  as

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arrears  of  land  revenue.

CHAPTER  X
LIQUIDATION

102. Winding  up.
103. Appointment  of  Liquidator.
104. Appeal  against  order  of  winding  up.
105. Powers  of  Liquidator.

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(v)

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(vi)

Maharashtra Co-operative Societies  Act, 1960

[1961 : Mah. XXIV

SECTIONS.

106. Effect  of  order  of  winding  up.

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107. Bar of suit in winding up and dissolution matters.

108. Audit  of  Liquidator’s  accounts.

109. Termination  of  liquidation  proceedings.

110. Disposal  of  surplus  assets.

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CHAPTER   X-A

INSURED CO-OPERATIVE BANK

110A. Order  for  winding  up,  reconstruction,  suspension  or  supersession
of  committee,  etc.,  of  insured  co-operative  bank,  not  to  be  made
without  sanction  or  requisition  of  Reserve  Bank  of  India.

CO-OPERATIVE AGRICULTURE AND RURAL MULTIPURPOSE DEVELOPMENT BANKS

CHAPTER  XI

111. Application of Chapter XI to Co-operative Agriculture and Rural

Multipurpose  Development  Banks.

112. State and other Co-operative Agriculture and Rural Multipurpose

Development  Banks.

112A. District  Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank,  its  constitution,  term  of  office  of  delegates,
casual  vacancies,  powers  of  such  committee,  etc.

112AA. Election of delegate as member of a Co-operative Agriculture and
Rural  Multipurpose  Development  Bank  from  City  of  Bombay
District  and Bombay  Suburban  District.

112B. General  Body  and  Committee  of  State  Co-operative  Agriculture

and  Rural  Multipurpose  Development  Bank.
[Deleted].

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112C.

113. Appointment,  powers  and  functions  of  Trustee.

114.

Issue  of  debentures.

115. Guarantee  by  State  Government.

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116. Vesting of property in Trustee and Debenture holders’ charge on

assets.

117. Powers  of  Co-operative  Agriculture  and  Rural  Multipurpose
Development Banks to  advance loans and to  hold lands.
[Deleted].

118.

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119. Order  granting  loan  conclusive  of  certain  matters.

120. Priority  of  mortgage.

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121. Mortgages  and  other  instruments  executed  in  favour  of  a
Co-operative  Agriculture  and  Rural  Multipurpose  Development
Banks  to  stand  vested  in  State  Agriculture  and  Rural
Multipurpose  Development  Bank.

122. Registration  of  mortgage,  lease,  etc.,  executed  in  favour  of
Co-operative  Agriculture  and  Rural  Multipurpose  Development
Banks.

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Maharashtra Co-operative Societies  Act, 1960

(vii)

SECTIONS.

123. Mortgages  and  other  instruments  not  to  be  questioned  on

insolvency  of  mortgagors  or  executants.
[Deleted].

124.
125. Mortgages and other instruments executed by managers of Joint

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Hindu  Families.

126. Section  8  of  Act  XXXII  of  1956  to  apply  to  mortgages  and  other
instruments to Co-operative Agriculture and Rural Multipurpose
Development  Banks,  subject  to  certain  modifications.

127. Restriction  on  lease.
128. Co-operative  Agriculture  and  Rural  Multipurpose  Development

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Bank  to  receive  money  and  give  discharge.

129. Powers  of  Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank  where  mortgaged  or  encumbered  property  is
destroyed  or  security  becomes  insufficient.

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130. Right  of  Co-operative  Agriculture  and  Rural  Multipurpose

112

Development  Bank  to  buy  mortgaged  property.

131. Recovery  of  loans  by  Co-operative  Agriculture  and  Rural

112

Multipurpose  Development  Bank.

132. Power  to  distrain.
133. Sale  of  mortgaged  or  encumbered  property.

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133A. Mortgaged  or  encumbered  property  of  Tribal  not  to  be  sold  to

non-Tribal at public auction under section 133.

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134. Confirmation  of  sale.
135. Disposal  of  sale  proceeds.
136. Certificate to purchase  delivery of property and title of purchase.
137. Recovery  of  loans  on  certificate  by  Registrar.
138. Mode  of  recovery  by  Collector.
139. Officers or members of family not to bid at auction sale.
140. Section  40  of  Bom.  XXVIII  of  1947  not  to  apply  to  alienation  in
favour  of  Co-operative  Agriculture  and  Rural  Multipurpose
Development  Banks.

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141. Provision  for  Guarantee  Funds  to  meet  certain  losses.
142. Registrar’s  power  to  permit  any  society  or  class  of  societies  to
function  as  Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank.

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143. Service  of  notice.

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143A. Transfer  of  rights  and  liabilities  of  Government  in  respect  of

schemes sanctioned  under Bom. XXVIII  of 1942.

144. Power to Committee of State Co-operative Agriculture and Rural
Multipurpose  Development  Bank  to  supervise  on  Co-operative
Agriculture and Rural Multipurpose Development Bank and make
regulations.

144-1A. Reorganisation,  amalgamation  or  division  of  Co-operative
Agriculture and Rural Multipurpose Development Bank, in public
interest,  etc.
[Deleted]

144-1B.

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113
113
114

114
114
115
116
116
117
117

117
118

118
118

119

119

120

CHAPTER  XI-A
[ ELECTIONS OF COMMITTEES AND OFFICERS OF CERTAIN SOCIETIES ]

144-A to 144–Y.

[Deleted]

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(viii)

Maharashtra Co-operative Societies  Act, 1960

[1961 : Mah. XXIV

SECTIONS.

CHAPTER  XII
OFFENCES AND PENALTIES

145. Prohibiton  of  use  of  the  word  “ Co-operative ”.. .
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146. Offences.
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147. Punishments  for  offences  under  section  146.
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148. Cognizance  of  offences.

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148A. Contempt  of  Co-operative  Courts  and  of  Co-operative  Appellate

Court.

CHAPTER  XIII
APPEALS, REVIEW AND REVISION

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149. Maharashtra  State  Co-operative  Appellate  Court.
150. Review  of  orders  of  Co-operative  Appellate  Court.
. .
151. Co-operative  Appellate  Court  to  have  power  of  Civil  Court. . .
. .
152. Appeals.

. .

152A. Appeal  against  rejection  of  nomination  paper  at  election.

153. Extension of period of limitation by appellate authority in certain

cases.

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154. Revisionary  powers  of  State  Government  and  Registrar.

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CHAPTER    XIII-A
MAHARASHTRA STATE CO-OPERATIVE COUNCIL

154A. Constitution  of  State  Co-operative  Council,  its  functions,  etc.

130

CHAPTER   XIV
MISCELLANEOUS

 155. Recovery  of  sums  due  to  Government.
156. Registrar’s  powers  to  recover  certain  sums  by  attachment  and

. .

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sale  of  property.

157. Power  to  exempt  societies  from  provisions  of  Act.
158. Delegation  of  power  of  Registrar  to  certain  authorities  and

. .

officers.

159. Branches,  etc.,  of  societies  outside  the  State.
160. Handing over records and property to new Chairman on election.
160A. Members of State Legislature and certain local authorities not to
be  remunerated  while  holding  certain  offices  in  societies.
160B. Members of committees not entitled to travelling allowance, daily

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Indemnity for acts done in good faith.

allowance, etc., at a rate higher than the maximum prescribed.
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161. Registrar and   other  officers to  be public  servants.
162.
163. Bar  of  jurisdiction  of  Courts.
164. Notice  necessary  in  suits.
165. Rules.
166. Repeal,  saving  and  construction.
167. Companies  Act  not  to  apply.
168. Power  to  remove  difficulty.

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131
132

132
133

133
133
134

134

134
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1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

1

MAHARASHTRA  ACT  No.  XXIV OF 19611

[THE MAHARASHTRA CO-OPERATIVE SOCIETIES ACT, 1960.]

(Received the assent of the President on the 4th May 1961 ; assent

first published in the Maharashtra Government Gazette, Part IV, on

the 9th day of May 1961).

Amended by Mah. 5 of 1962. Amended by Mah. 29 of 1973§ (30-5-1973)*
44 of 1973§§ (17-10-1973)
”
3 of 1974 (1-3-1975)*

23 of 1963.

33 of 1963.

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33 of 1964.

37 of 1965.

12 of 1966.

16 of 1969.**
27 of 1969.†
35 of 1969.‡
54 of 1969.

10 of 1971.

27 of 1971.

2 of 1972.

24 of 1972.

40 of 1972.

43 of 1972.

48 of 1972.

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6 of 1975 (1-5-1975)*

36 of 1975 (19-2-1976)*

64 of 1975 (22-12-1975)*

5 of 1976 (18-2-1976)*

4 of 1977*** (25-11-1976)*

50 of 1977 †† (27-9-1977)*

58 of 1977

30 of 1978

25 of 1979 (17-8-1979)*

22 of 1980 ¶ (14-10-1980)*

63 of 1981 †† † (13-10-1981)*

7 of 1982 @ (17-3-1982)*

18 of 1982 (1-7-1982)*

45 of 1983 (26-12-1983)*

Mah.
XXVII of
1969.

1

For Statement of Objects and Reasons, see Maharashtra Government Gazette,1960,
Part V, pages 270-273 ; for Report of the Select Committee, see ibid., Part V, pages
432-517.

** Maharashtra Ordinance No. I of 1969 was repealed by Mah. 16 of 1969, s. 3.

†

Section 27 of Mah. 27 of 1969 reads as under :—

“ 27. If any proceedings are pending immediately before the commencement of the
Maharashtra Co-operative Societies (Second Amendment)  Act, 1969, in any Court or
before any authority in respect of matters which by section 91 of the principal Act as
amended by this Act are to be referred to the Registrar, then all such proceedings shall be
transferred by such Court or authority to the Registrar for disposal.”.

‡ Maharashtra Ordinance No. XI of 1969 was repealed by Mah. 35 of 1969, s. 4.
§ Maharashtra Ordinance No. VII of 1973 was repealed by Mah. 29 of 1973, s. 4.
§§ Maharashtra Ordinance No. XV of 1973 was repealed by Mah. 44 of 1973, s. 4.
*

This indicates the date of commencement of Act.

*** Maharashtra Ordinance No. IX of 1976 was repealed by Mah. 4 of 1977, s. 4.

†† Maharashtra Ordinance No. VIII of 1977 was repealed by Mah. 50 of 1977, s. 4.
¶ Maharashtra Ordinance No. XI of 1980 was repealed by Mah. 22 of 1980, s. 3.
††† Maharashtra Ordinance No. XIV of 1981 was repealed by Mah. 63 of 1981, s. 4.
@

Section 17 of Mah. 18 of 1982, provides as follows :—
“ 17. (1) Notwithstanding anything contained in the principal Act, or the rules made
thereunder or in any judgement, decree or order of any Court, no decision given by the
Registrar or any Officer exercising the powers of the Registrar that any matter referred
to him or brought to his notice is a dispute within the meaning of section 91 of the
principal  Act,  and no  reference  made  by the  Registrar  or  such  officer of  any  such
dispute for disposal to any Co-operative Court under section 93, at any time before the
commencement of this Act, shall be invalid, or ever to have been invalid, merely on the
ground that the procedure laid down in the Act and in the rule was not followed, or that
an apportunity of  being heard was not given to the parties concerned before deciding
that the matter is a dispute or before referring the dispute to the Co-operative Court
for disposal.

(2) All disputes referred to in sub-section (1), which may be pending before any
Co-operative Court or other authority on the date of commencement of this Act shall
be deemed to have been validly referred to it and shall be continued and disposed of by
that authority in accordance with the provisions of the principal Act as amended by
this Act.”.

H  4112—2

Transfer of
certain
pending
proceedings.

Validation
and
continuation
of certain
proceedings.

2

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Amended by Mah. 18 of 1984†††† (29-6-1984)*

”
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†††† Maharashtra Ordinance No. IV of 1984 was repealed by Mah. 18 of 1984, s. 6.

9 of 1985 (29-6-1985)*
10 of 1986 (30-1-1986)*
20 of 1986 (12-5-1986)*
37 of 1986£ (5-9-1986)*
38 of 1986££ (24-10-1986)*
10 of 1988 (20-5-1988)*
5 of 1990 †
31 of 1990
22 of 1991
30 of 1991 (31-12-1991)*
20 of 1992£££ (23-12-1992)*
13 of 1994 (21-1-1994)*
27 of 1996 (5-10-1996)*
7 of 1997 (2-1-1997)*
41 of 2000 (23-8-2000)*
4 of 2001@ (13-1-2001)*
34 of 2001 (7-9-2001)*
6 of 2002@@ (23-4-2001)*
41 of 2005 (25-8-2005)*
20 of 2006 (10-5-2006)*
30 of 2007 @@@ (18-8-2007)*
31 of 2007 (10-12-2007)*
11 of 2008 @@@@ (29-10-2007)*
2 of 2011 (14-1-2011)*
16 of 2013§ (14-2-2013)*
31 of 2013 (20-12-2013)*
40 of 2014 (23-12-2014)*
24 of 2015 (31-7-2015)*
34 of 2016 $$ (21-1-2016)*
36 of 2016 $$$ (2-3-2016)*
14 of 2017 (16-1-2017)*
33 of 2017 (26-4-2017)*
57 of 2017 #
14 of 2018

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This indicates the date of commencement of Act.

*
£ Maharashtra Ordinance No. III of 1986 was repealed by Mah. 37 of 1986, s. 3.
££ Maharashtra Ordinance No. VI of 1986 was repealed by Mah. 38 of 1986, s. 3.
†

Sub-section (2) of section 1 of Mah. 5 of 1990 reads as under :—

“ (2) This section and sections 2, 3, 6, 7 and 13 to 18 and 20 shall come into force
at once, sections 4, 5 and 8 to 12 shall be deemed to have come into force on the 1st day
of December 1987, and section 19 shall be deemed to have come into force on the 20th
June 1988. ”.

£££ Maharashtra Ordinance No. XIII of 1992 was repealed by Mah. 20 of 1992, s. 4.

@ Maharashtra Ordinance No. XII of 2000 and Maharashtra Ordinance No. XXVI of

2000 were repealed by Mah. 4 of 2001, s. 5.

@@ Maharashtra Ordinance No. XXVI of 2001 was repealed by Mah. 6 of 2002, s. 3.

@@@ Maharashtra Ordinance No. VI of 2007 was repealed by Mah. 30 of 2007, s. 3.
@@@@ Maharashtra Ordinance No. VIII of 2007 was repealed by Mah. 11 of 2008, s. 27.

§ Maharashtra Ordinance No. VI of 2013 was repealed by Mah. 16 of 2013, s. 84.

$$ Maharashtra Ordinance No. VI of 2016 was repealed by Mah. 34 of 2016, s. 3.
$$$ Maharashtra Ordinance No. VII of 2016 was repealed by Mah. 36 of 2016, s. 5.

#

This Act has not been brought into force yet, therefore the provisions of the Act have
not been incorporated herein.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

3

An Act to consolidate and amend the law relating to co-operative

societies in the State of Maharashtra.

WHEREAS with a view to providing for the orderly development of the
co-operative  movement  in  the  State  of  Maharashtra  in  accordance  with  the
relevant  directive  principles  of  State  policy  enunciated  in  the  Constitution
of  India,  it  is  expedient  to  consolidate  and  amend  the  law  relating  to  co-
operative  societies  in  that  State ;  It  is  hereby  enacted  in  the  Eleventh  Year
of the Republic of  India as follows :—

CHAPTER I
PRELIMINARY

1.
Act, 1960.

(1) This  Act  may  be  called  the  Maharashtra  Co-operative  Societies

(2) It extends to the whole of the State of Maharashtra.
(3) It shall come into force on such 1 date as the State Government may,

by  notification  in  the Official  Gazette, appoint.

2.

In  this  Act,  unless  the  context  otherwise  requires,—
(1) “ agricultural  marketing  society ”  means  a  society—

(a) 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[(2) “ apex  society ”  means  a  society,—

(a) the  area  of  operation  of  which  extends  to  the  whole  of  the

State of  Maharashtra,

(b) the main object of which is to promote the principal objects
of  the  societies  affiliated  to  it  as  members  and  to  provide  for  the
facilities  and  services  to  them,  and

(c) which has been classified as an apex society by the Registrar ;]
3[(2-A) “ authorised  person ”  means  any  person  duly  authorised  by

the  Registrar to  take action  under  the provisions  of this  Act;]

Short title,
extent and
commen-
cement.

Definitions.

4

*

*

*

*

*

*
(4) “ bonus ” means payment made in cash or kind out of the profits
of  a  society  to  a  member,  or  to  a  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
or,  as  the  case  may  be,  the  area  of  the  lands  of  the  members  brought
together for joint cultivation as may be decided by the society 5[but does
not  include  any  sum  paid  or  payable  as  bonus  to  any  employee  of  the
society under the Payment of Bonus Act,1965 ;]

21 of
1965.

1 26th day of January 1962, vide G.N.C. and R.D.D. No. SCL. 1061/135-G, dated 24th January

1962.

2 Clause (2) was substituted by Mah. 20 of 1986, s. 2(a).
3 Clause (2-A) was inserted by Mah. 16 of 2013, s. 2(a).
4 Clause (3) was deleted by Mah. 20 of 1986, s. 2(b).
5 This portion was added by Mah. 27 of 1969, s. 2(a).

H 4112—2a

4

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(5) “ by  -  laws ”  means  by  -  laws  registered  under  this  Act  and  for
the  time being in force and includes registered amendments of such by-
laws ;

1[(6) “ Central  Bank ”  means  a  co-operative  bank,  the  objects  of
which  include  the  creation  of  funds  to  be  loaned  to  other  societies;  but
does  not include  the urban  co-operative bank  ;]

2[(7) “ Committee ”  means  the  committee  of  management  or  board
of directors 3[or the governing body or other directing body of a co-operative
society, by whatever name called, in which the management of the affairs
of a society is entrusted] under section 73 ;]

(8) “ Company ”  means  a  company  as  defined  in  the  *Companies
Act,  1956  and  includes  a  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 ;

I of
1956.

(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
also  other  customers,  and

(b) the distribution among its members and customers, in the
proportion  prescribed  by  rules  or  by  the  by-laws  of  the  society,  of
the  profits  accruing  from  such  procurement,  production  or
processing  and  distribution ;

4[(10) “ co-operative  bank ”  means  a  society  which  is  doing  the
business of banking as defined in clause (b) of sub-section (1) of section
5 of the Banking Companies Act, 1949 and includes any society which is
functioning  or  is  to  function  as 5[a  Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank]  under  Chapter  XI] ;

10 of
1949.

6[(10-ai) “ Co-operative  Appellate  Court ”  means  the  Maharashtra

State  Co-operative  Appellate  Court  constituted  under  this  Act ;

(10-aii) “ Co-operative Court ” means a Court constituted under this
Act  to  decide 7[disputes  referred  to  it  under  any  of  the  provisions  of
this Act] ;

8[(10-aii-1) “ co-operative  credit  structure  entity ”  means  the
primary  agricultural  credit  co-operative  society,  the  District  Central
Co-operative  Bank  or  the  State  Co-operative  Bank ;]

1 Clause (6) was substituted for the original by Mah. 20 of 1986, s. 2(c).
2 Clause (7) was substituted by Mah. 20 of 1986, s. 2(d).
3 These words were substituted for the words “ or other directing body, by whatever name
called, to which the management of the affairs of a society is entrusted ” by Mah. 16 of 2013,
s. 2(b).

4 Clause (10) was substituted by Mah. 33 of 1963, s. 2.
5 These words were substituted for the words “ an Agriculture and Rural Development Bank ”

by Mah. 41 of 2005, s. 2.

6 Clauses (10-ai) and (10-aii) were inserted by Mah. 3 of 1974, s. 2(b).
7 These words were substituted for the words “ disputes referred to it by the Registrar ” by

Mah. 18 of 1982, s. 2.

8 Clause (10-aii-1) was inserted by Mah. 11 of 2008, s. 2(a).
* Now see Companies Act, 2013 (18 of 2013).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

5

1[(10-aiii) “ co-operative  year ”  means  a  year  ending  on  the 2[31st
day  of  March]  or  on  such  other  day  in  regard  to  a  particular  society  or
class of societies 3[as may have been fixed by the Registrar, from time to
time,] for balancing its or their accounts ;]

4[(10-A) “ crop  protection  society ”  means  a  society  the  object  of
which    is  protection  of  the  crops,  structures,  machinery,  agricultural
implements and other equipment such as those used for pumping water
on the land ;]

5*

*

*

*

*

*

*

*

(11) “ dividend ”  means  the  amount  paid,  out  of  the  profits  of  a

society, to a member in proportion to the shares held by him ;

6[(11A) “ expert director ” means a person having experience in the
field  of  banking,  management,  co-operation  and  finance  and  includes  a
person  having  specialisation  in  any  other  field  relating  to  the  objects
and  activities  undertaken  by  the  concerned  society;]

(12) “ 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
cultivated by all 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 ;

(13) “ federal  society ”  means  a  society—

(a) not less than five members of which are themselves societies,

and

(b) in which the voting rights are so regulated that the members
which are societies have not less than four-fifths of the total number
of votes  in the general  meeting of  such society ;

(14) “ firm ” means a firm registered under the Indian Partnership

Act, 1932 ;

7[(14A) “ functional director ” means a Managing Director or a Chief
Executive  Officer  by  whatever  designation  called,  nominated  by  the
Committee;]

(15) “ general  society ”  means  a  society  not  falling  in  any  of  the

classes  of  societies  defined  by  the  other  clauses  of  this  section ;

8[(16) “ housing  society ”  means  a  society,  the  object  of  which  is  to
provide  its  members  with  open  plots  for  housing,  dwelling  houses  or
flats ; or if open plots, the dwelling houses or flats are already acquired,
to  provide  its  members  common  amenities  and  services ;]

1 Clause (10-aiii) was inserted by Mah. 20 of 1986, s. 2(e).
2 These words were substituted for the words “ 30th day of June ” by Mah. 13 of 1994, s. 2(a).
3 These words were substituted for the words “ as may have been fixed, with the previous

approval of the Registrar ”, by Mah. 13 of 1994, s. 2(b).
4 Clause (10-A) was inserted by Mah. 27 of 1969, s. 2(b).
5 Clause (10-B) was deleted by Mah. 16 of 2013, s. 2(c).
6 Clause (11-A) was inserted by Mah. 16 of 2013, s. 2(d).
7 Clause (14-A) was substituted by Mah. 36 of 2016, s. 2.
8 Clause (16) was substituted by Mah. 20 of 1986, s. 2(f).

IX of
1932.

6

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

1[(16-A) “ lift irrigation society ” means a society, the object of which
is to provide water supply, by motive power or otherwise to its members,
for  irrigation  and  otherwise ;]

(17) “ Liquidator ”  means  a  person  appointed  as  liquidator  under

this  Act ;

(18) “ local  authority ”  includes  a  school  board  and  an  agricultural
produce market committee constituted by or under any law for the time
being  in  force ;

(19)(a) “ member ” means a person joining in an application for the
registration  of  a  co-operative  society  which  is  subsequently  registered,
or a person duly admitted to membership of a society after registration,
and  includes  a    nominal, 2[or  associate]  member 3[and  any  depositor  or
financial  service  user  of  primary  agricultural  co-operative  credit
society] ;

4[(a-1) “ active member ” means a member who participates in
the affairs of the society and utilises the minimum level of services
or products of that society as may be specified in the by-laws;]

(b) “ associate  member ”  means  a  member  who  holds  jointly  a
share of a society with others, but whose name does not stand first
in  the  share  certificate ;

(c) “ nominal  member ”  means  a  person  admitted  to
membership  as  such  after  registration  in  accordance  with  the  by-
laws ;

5*

*

*

*

*

*

*

*

6[(19A) “ National Banks” means the National Bank for Agriculture
and  Rural  Development  (NABARD),  constituted  under  the  provisions
of the National Bank for Agriculture and Rural Development Act, 1981;]

(20) “ officer ”  means  a  person  elected  or  appointed  by  a  society  to
any  office  of  such  society  according  to  its  by-laws  ;  and  includes 7[any
office  bearer  such  as  a  chairperson,  vice-chairperson,  president,  vice-
president,  managing  director,  manager,  secretary,  treasurer,  member
of the committee and any other person, by whatever name called,] elected
or appointed under this Act, the rules or the by-laws, to give directions
in regard to the business of such society ;

8[(20-A)

“ Official  Assignee ”  means  a  person  or  body  of  persons

appointed  by  the  Registrar  under  sub-section  (2)  of  section  21A ;]

(21) “  prescribed ”  means prescribed  by rules  ;

61 of
1981.

1 Clause (16-A) was substituted by Mah. 3 of 1974, s. 2(c).
2 These words were substituted for the words “ associate or sympathiser ” by Mah. 16 of 2013,

s. 2(f)(i).

3 These words were added by Mah. 11 of 2008, s. 2(c).
4 Clause (a-1) was inserted by Mah. 16 of 2013, s. 2(f)(ii).
5 Sub-clause (d) was deleted by Mah. 16 of 2013, s. 2(f)(iii).
6 Clause (19-A) was inserted by Mah. 11 of 2008, s. 2(d).
7 These words were substituted for the words “ a chairman, vice-chairman, president, vice-
president, managing director, manager, secretary, treasurer, member of the committee and
any other person, ” by Mah. 16 of 2013, s. 2(g).

8 Clause (20-A) was inserted by Mah. 20 of 1986, s. 2(g).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

7

(22) “ processing society ” means a society the object of which is the

processing  of  goods  ;

(23) “  producers’  society  ”  means  a  society  the  object  of  which  is,
the  production  and  disposal  of  goods  or  the  collective  disposal  of  the
labour of the members thereof ;

(24) “  Registrar  ” means  a  person  appointed  to  be the  Registrar  of

Co-operative  Societies  under  this  Act  ;

(25) “resource  society  ”  means  a  society  the  object  of  which  is  the
obtaining for its members of credit, goods or services required by them ;

(26) “rules” means rules made under this Act ;

(27) “society”  means  a  co-operative  society  registered,  or  deemed
to  be  registered,  under  this  Act 1[,  which  is  an  autonomous  association
of  persons,  united  voluntarily  to  meet  their  common  needs  and
aspirations  through  a  jointly  owned  and  democratically  controlled
enterprise  and  adhering  to  the  co-operative  principles  and  values;]

(28) “society  with  limited  liability”  means  a  society  having  the

liability of its members limited by its by-laws ;

(29) “society with unlimited liability” means a society, the members
of  which  are,  in  the  event  of  its  being  wound  up,  jointly  and  severally
liable  for  and  in  respect  of  its  obligation  and  to  contribute  to  any
deficiency in the assets of the society ;

2[(29A) “ State Co-operative Election Authority” means an authority

constituted  by  the  State  Government  under  section  73CB;]

3*

*

*

*

*

*

*

*

(31) “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 other means.

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, 4[with such designations, and in such local areas or
throughout the State, as it may specify in that behalf,] 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  Registar  and  on  whom  any  powers  of  the  Registrar  are  conferred,  shall
work  under  the  general  guidance,  superintendence  and  control  of  the
Registrar. 5[They shall be subordinate to the Registrar, and subordination of
such persons amongst themselves shall be such as may be determined by the
State  Government].

Registrar
6[and his
subordinates.]

1 These words were inserted by Mah. 16 of 2013, s. 2(h).
2 Clause (29-A) was inserted, by Mah. 16 of 2013, s. 2(i).
3 Clause (30) was deleted by Mah. 3 of 1974, s. 2(d).
4 These words were inserted by Mah. 27 of 1969, s. 3(a).
5 These words were added, by Mah. 27 of 1969, s. 3(b).
6 These words were added, by Mah. 27 of 1969, s. 3(c).

8

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Temporary
vacancies.

1[3A.

If the Registrar or a person appointed to assist such Registrar is
disabled  from  performing  his  duties  or  for  any  reason  vacates  his  office  or
leaves  his  jurisdiction  or  dies,  then—

(a) in  the  case  of  the  Registrar,  the 2[Special,]  Additional  or  Joint

Registrar, in  the office  of the  Registrar, and

(b) in  the  case  of  a  person  appointed  to  assist  the  Registrar,  the
senior most officer holding the next higher post, in the respective  office,

shall,  unless  other  provision  has  been  made  in  that  behalf,  hold
temporarily  the  office of  the  Registrar  or, as  the  case  may  be, of  the  person
appointed  to  assist  the  Registrar  in  addition  to  his  own  office  and  shall  be
held to be the Registrar or the person appointed to assist the Registrar under
this  Act,  until  the  Registrar  or  the  person  appointed  to  assist  the  Registrar
resumes his office, or until such time as the successor is duly appointed and
takes  charge  of  his  appointment.]

Societies
which may be
registered.

4. A  society,  which  has  as  its  object  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  under this
Act :

Registration
with limited
or unlimited
liability.

Conditions of
registration.

Provided  that,  no  society  shall  be  registered  if  it  is  likely  to  be
economically unsound, or the registration of which may have an adverse effect
on development 3[of the co-operative movement, or the registration of which
may  be  contrary  to  the  policy  directives  which  the  State  Government  may,
from time to time, issue].

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 4[or such higher number of
persons  as  the  Registrar  may,  having  regard  to  the  objects  and  economic
liability of a society and development of the co-operative movement, determine
from time to time for a class of societies], (each of such persons being a member
of  a  different  family),  who  are  qualified  to  be  members  under  this  Act,  and
who reside in the area of operation of the society :

5[Provided that, a lift irrigation society consisting of less than ten but of

five or  more such  persons may be  registered under  this Act:]

6[Provided  further  that,  the  condition  regarding  residence  of  the
members in the area of operation of the society shall not apply for registration
of  the  society,  being  the  co-operative  credit  structure  entity:]

1 Section 3A was inserted by Mah. 20 of 1986, s. 3.
2 This word was inserted by Mah. 16 of 2013, s. 3.
3 These words were substituted for the words “ of the co-operative movement ” by Mah. 20 of

1986, s. 4.

4 These words were inserted by Mah. 20 of 1986, s. 5.
5 This proviso was added by Mah. 27 of 1969, s. 4(a).
6 This proviso was added by Mah. 11 of 2008, s. 3.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

9

1[Provided also that, the Registrar may specify the norms and conditions

for  registration  of  societies  or  class  of  societies.]

(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.

2[(2A) No crop protection society shall be registered, unless the Registrar
is  satisfied,  after  such  inquiry  as  he  thinks  necessary,  that  a  draft  of  the
proposal made by the society for protecting the crops, structures, machinery,
agricultural implement and other equipment such as those used for pumping
water on the land, was duly published for inviting all owners of lands likely
to be affected by the proposal and all other persons likely to be interested in
the said lands to join the proposal or to send their objections or suggestions
and  that  the  objections  and  suggestions  received,  if  any,  have  been  duly
considered by the society and that the owners in possession of not less than
66  per  cent.,  in  the  aggregate  of  the  lands  included  in  the  proposal  have
given  their  consent  in  writing  to  the  making  of  the  proposal  and  that  the
proposal  made  is  feasible.  For  this  purpose,  the  society  shall  submit  to  the
Registrar :–

(a) a  plan  showing  the  area  covered  by  the  proposal  and  the
surrounding lands as shown in the map or maps of the village or  villages
affected  ;

(b) an  extract  from  the  record  of  rights  duly  certified  showing  the
names of the owners of the lands and the areas of the lands included in
the  proposal  ;

(c) statements  of  such  of  the  owners  of  the  lands  as  consented  to

the making  of the proposal  signed by  owners before two  witnesses ;

(d) a  detailed  estimate  of  the  cost  of  implementing  the  proposal  ;

(e) a detailed statement showing how the cost is proposed to be met.

When  such  society  is  registred,  the  cost  of  implementing  the  proposal
shall be met wholly or in part by contribution to be levied by the society from
each  owner  of  the  land  included  in  the  proposal,  including  any  such  owner
who may have refused to become a member of the society. The owner of every
land  included  in  the  proposal  shall  also  be  primarily  liable  for  the  payment
of the contribution leviable from time to time in respect of such land.]

(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 affect the registration of any

society  made  before  the  commencement  of  this  Act.

(5) The  word  “ limited ”  or  “ unlimited ”  shall  be  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.

1 This proviso was added by Mah. 16 of 2013, s. 4.
2 Sub-section (2A) was inserted by Mah. 27 of 1969, s. 4(b).

H 4112—3

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Power to
exempt
societies 3[or
class of
societies]
from
conditions as
to
registration.

Application
for
registration.

Registration.

Explanation.—For  the  purposes  of  this  section  and  section  8,  the
expression  “ member  of  a  family ”  means  a  wife,  husband,  father,  mother,
1[son  or  unmarried  daughter.]

7. Notwithstanding  anything  contained  in  this  Act,  the  State
Government  may, 2[by  general  or  special  order,  exempt  any  society  or  class
of societies from any of the requirements of this Act as to registration, subject
to such conditions (if any) as it may impose.]

8.

(1) For the purposes of registration, an application shall be made to
the Registrar in the prescribed form, and shall be accompanied by four copies
of  the  proposed  by-laws  of  the  society 4[and  such  registration  fee  as  may  be
prescribed  in  this  behalf.  Different  registraion  fees  may  be  prescribed  for
different  classes  of  societies,  regard  being  had  to  the  service  involved  in
processing an application for registration]. The person 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 different 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  person  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 by-laws ; and a copy of such resolution
is  appended  to  the  application.

9.

(1) If the Registrar is satisfied that a proposed  society has complied
with the provisions of this Act and the rules, 5[or any other law for the time
being  in  force,  or  policy  directive’s  issued  by  the  State  Government  under
section 4,] and that its proposed by-laws are not contrary to this Act or to the
rules,  he 6[shall,  within  two  months],  from  the  date  of  receipt  of  the
application  register  the  society  and  its  by-laws.

7[(2)  Where  there  is  a  failure  on  the  part  of  the  Registrar  to  dispose  of
such  application  within  the  period  aforesaid,  the  Registrar  shall,  within  a
period  of  fifteen  days  from  the  date  of  expiration  of  that  period  refer  the

1 These words were substituted for the portion beginning with “ grand-father, grand-mother ”

and ending with “ wife of brother or half-brother ” by Mah. 33 of 1963, s. 3.

2 This portion was substituted for the original portion by Mah. 27 of 1969, s. 5(a).
3 These words were inserted, by Mah. 27 of 1969, s. 5(b).
4 These words were inserted by Mah. 3 of 1974, s. 3.
5 These words and figures were inserted by Mah. 20 of 1986, s. 6(a)(i).
6 These words were substituted for the words “ may, within six months, ” by Mah. 20 of 1986,

s. 6(a)(ii).

7 Sub-section (2) was substituted for the original by Mah. 20 of 1986, s. 6(b).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

11

application to the next higher officer and where the Registrar himself is the
registering  officer,  to  the  State  Government,  who  or  which  as  the  case  may
be,  shall  dispose  of  the  application  within  two  months  from  the  date  of  its
receipt and on the failure of such higher officer or the State Government, as
the case may be, to dispose of the application within that period, the society
and  its  bye-laws  shall  be  deemed  to  have  been  registered 1[and  thereafter
the  Registrar  shall  issue  a  certificate  of  registration  under  his  seal  and
signature  within  a  period  of  fifteen  days]].

(3) Where the  Registrar refuses  to register  a proposed  society, he  shall
forthwith communicate his decision, with the reasons therefor, to the person
making the application and if there be more than one to the person who has
signed  first  thereon.

(4) The Registrar shall maintain a register of all societies registered, or

deemed  to  be  registered,  under  this  Act.

10. A    certificate  of  registration  signed  by  the  Registrar,  shall  be
conclusive  evidence  that  the  society  therein  mentioned,  is  duly  registered,
unless  it is  proved  that the  registration  of the  society  has been  cancelled.

Evidence of
registration.

11. When, 2 *        *        *       *      *     * any question arises whether a
person  is  an  agriculturist  or  not,  or whether  any  person  resides  in  the  area
of operation of the society or not, 3[or whether a person is or is not engaged
in or carrying on any profession, business or employment, or whether a person
belongs  or  does  not  belong  to  such  class  of  persons  as  declared  under  sub-
section (1-A) of section 22 and has or has not incurred a disqualification under
that  sub-section,]  such  question  shall  be  decided  by  the  Registrar 4[and  his
decision  shall  be  final,  but  no  decision adverse  to    any  such  person  shall  be
given without giving him an  opportunity of being heard.]

Power of
Registrar to
decide certain
questions.

12.

(1) The  Registrar  shall  classify  all  societies  into  one  or  other  of
the  classes  of  societies  defined  in  section  2,  and  also  into  such  sub-classes
thereof as may be prescribed by rules.

Classification
of societies.

(2) The  Registrar  may,  for  reasons  to  be  recorded  in  writing,  alter  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 he may think fit 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 State Government may,  from time
to  time,  direct.

1 These words were added by Mah. 7 of 1997, s. 2.
2 The words “ for the purpose of the formation, or registration or continuance, of a society, ”

were deleted by Mah. 20 of 1986, s. 7(a).

3 These words were inserted, by Mah. 20 of 1986, s. 7(b).
4 These words were inserted by Mah. 3 of 1974, s. 4.

H 4112—3a

12

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Amendment
of by-laws of
society.

13.

(1) No  amendment  of  the  by-laws  of  a  society  shall  be  valid  until
registered  under  this  Act.  For  the  purpose  of  registration  of  an  amendment
of the by-laws, a copy of the amendment passed, in the manner prescribed, at
a general meeting of the society, shall be forwarded to the Registrar. 1[Every
application for registration of an amendment of the by-laws shall, 2*

* * be disposed of by the Registrar within a period of two months from

the  date  of  its  receipt.]

3*

4*

*

*

*

*

*

*

*

*

*

*

*

*

*

*

5[(1A) Where there is a failure on the part of the Registrar to dispose of
such  application  within  the  period  aforesaid,  the  Registrar  shall,  within  a
period  of  fifteen  days  from  the  date  of  expiration  of  that  period  refer  the
application to the next higher officer and where the Registrar himself is the
registering officer, to the State Government, who or which, as the case may
be,  shall  dispose  of  the  application  within  two  months  from  the  date  of  its
receipt and on the failure of such higher officer or the State Government, as
the  case  may  be,  to  dispose  of  the  application  within  that  period,  the
amendment  of  the bye-laws  shall  be  deemed  to have  been  registered.

(1B) No  amendment  of  the  bye-laws  of  a  society  shall  be  registered  by
the  Registrar  under  this  section  or  in  the  case  of  the  bye-laws  which  are
deemed  to  have  been  registered  shall  have  effect,  if  the  amendment  is
repugnant  to  the  policy  directives,  if  any,  issued  by  the  State  Government
under  section  4.]

(2) When the Registrar registers an amendment of the by-laws of a society
6[or where an amendment of the bye-laws is deemed to have been registered],
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 7[such  amendment]  of  the
by-laws of a society, he shall communicate the order of refusal, together with
his  reasons  therefor,  to  the  society.

Power to
direct
amendment
of by-laws.

14.

(1) If it appears to the Registrar that an amendment of the by-laws
of a society is necessary or desirable in the interest of such society, 8[or any
by-laws of the society are inconsistent with the provisions of this Act or rules
and  that  amendment  is  necessary  in  such  by-laws,]  he  may  call  upon  the
society, in the manner prescribed, to make the amendment within such time
as he may specify.

1 This portion was added by Mah. 27 of 1969, s. 6.
2 The words “ as far as possible, ” were deleted by Mah. 20 of 1986, s. 8(a)(i).
3 The proviso was deleted, by Mah. 20 of  1986., s. 8(a)(ii).
4 The proviso was deleted by Mah. 16 of 2013, s. 5.
5 These sub-sections were inserted by Mah. 20 of 1986, s. 8(a)(iii).
6 These words were inserted by Mah. 20 of 1986, s. 8(b)(a).
7 These  words  were  substituted    for  the  words  “ the  amendment ”,  by  Mah.  20  of  1986,

s. 8(b)(b).

8 These words were inserted by Mah. 16 of 2013, s. 6(a).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

13

(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 and
after  consulting  such  State  federal  society  as  may  be  notified  by  the  State
Government  register  such  amendment,  and  issue  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  by-laws  shall  be  deemed  to
have  been  duly  amended  accordingly;  and  the  by-laws  as  amended  shall,
subject to appeal (if any), be binding on the society and its members :

1[Provided  that,  such  notified  State  federal  society  shall  communicate
its opinion to the Registrar within a period of forty-five days from the date of
receipt of communication, failing which it shall be presumed that such State
federal society has no objection to the amendment and the Registrar shall be
at  liberty  to  proceed  further  to  take  action  accordingly :

Provided further that, the Registrar may specify the Model by-laws, for

such type of societies or class of societies, as he may deem fit.]

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, or
past members, or deceased members; and any legal proceedings pending before
any  person,  authority  or  court  may  be  continued  by  or  against  the  society,
under its new name.

Change of
name.

(2) Where a society changes its name, the Registrar shall enter the new
name  in  its  place  in  the  register  of  societies,  and  shall  also  amend  the
certificate  of  registration  accordingly.

16.

(1) Subject  to  the  provisions  of  this  Act  and  the  rules,  a  society
may, by amendment of its by-laws, change the form or extent of its liability.

Change of
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  members  and
creditors  and,  notwithstanding  anything  in  any  by-law  or  contract  to  the
contrary,  any  member  or  creditor  shall,  during  a  period  of  one  month  from
the date  of service of  such notice upon him,  have the option  of withdrawing
his  shares,  deposits  or  loans.

(3) 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.

(4) An amendment of the by-laws of a society, changing the form or extent

of  its  liability, shall  not  be  registered  or  take effect  until,  either —

(a) all  members  and  creditors  have  assented,  or  deemed  to  have

assented,  thereto  as  aforesaid  ;  or

(b) 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.

1 These provisos were added by Mah. 16 of 2013, s. 6(b).

14

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Amalgamation,
transfer,
division or
conversion of
societies.

17.

(1) A society  may, with the previous  approval of the  Registrar, by
resolution passed by two-thirds majority of the members present and voting
at  a  special  general  meeting  held  for  the  purpose,  decide  —

(a) to  amalgamate  with  another  society  ;

(b) to transfer its assets and liabilities, in whole or in part, to any

other  society  ;

(c) 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 conversion,
aforesaid, involves a transfer of the liabilities of a society to any other society,
no  order  on  the  resolution  shall  be  passed  by  the  Registrar,  unless  he  is
satisfied  that—

(i) the society, after passing such resolution, has given notice thereof
in  such  manner as  may  be  prescribed  to  all its  members,  creditors  and
other  persons  whose  interests  are  likely  to  be  affected  (hereinafter,  in
this section referred to as “ other interested persons ”), giving them the
option, to be exercised within one month from the date of such notice, of
becoming  members  of  any  of  the  new  societies,  or  continuing  their
membership  in  the  amalgamated  or  converted  society,  or  demanding
payment of their share or interest or dues, as the case may be,

(ii) all  the  members  and  creditors  and  other  interested  persons,
have  assented  to  the  decision,  or  deemed  to  have  assented  thereto  by
virtue  of  any member  or  creditor  or  any  other interested  person  failing
to exercise his option within the period specified in clause (i) aforesaid,
and

(iii) all  claims  of  members  and  creditors  and  other  interested
persons, who  exercise the  option within  the period  specified, have  been
met  in  full  or  otherwise  satisfied :

1[Provided further that, in case of societies doing the business of banking,
no  such  amalgamation,  transfer,  division  or  coversion  shall  be  initiated
without  the  prior  approval  of the  Reserve  Bank  of  India.]

(2) Notwithstanding  anything  contained  in  the  Transfer  of Property  Act,
1882, or the Indian Registration Act, 1908, in the event of division or conversion,
the  registration  of  the  new  societies  or,  as  the  case  may  be,  of  the  converted
society, and in the event of amalgamation, on the amalgamation the resolution
of  the  societies    concerned  with  amalgamation,  shall  in  each  case  be  sufficient
conveyance  to  vest  the  assets  and  liabilities  of  the  original  society  or
amalgamating societies in the new societies or converted or amalgamated society,
as the case may be.

IV of
1882.
XVI of
1908.

(3) The amalgamation of societies, or division or conversion of a society
shall  not  affect  any  rights  or  obligation  of  the  societies  so  amalgamated,  or
society  so  divided  or  converted,  or  render  defective  any  legal  proceedings

1 This proviso was added by Mah. 16 of 2013, s. 7(d).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

15

3[Power to
direct
amalgamation,
division and
reorganisation
in the public
interest of
members, etc.]

which  might  have  been  continued  or  commenced  by  or  against  the  societies
which  have  been  amalgamated,  or  divided  or  converted;  and  accordingly,
such    legal  proceedings  may  be  continued  or  commenced  by  or  against  the
amalgamated  society,  or,  as  the  case  may  be,  the  converted  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 be 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 1[or  in  the  interest  of  members  of  such  societies],  or  in  the  interest
of  the  co-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  notwithstanding  anything  contained  in  the  last  preceding
section but subject to the provisions of this section, the Registrar may, after
consulting  such federal  society  as  may be  notified  by  the State  Government
by  order  notified  in  the Official  Gazette,  provide  for  the  amalgamation,
division  or  reorganisation  of  those  societies  into  a  single  society,  or  into
societies  with  such  constitution,  property,  rights,  interests  and  authorities,
and such liabilities, duties and obligations, as may be specified in the order :

2[Provided  that,  such  notified  federal  society  shall  communicate  its
opinion  to  the  Registrar  within  a  period  of  forty-five  days  from  the  date  of
receipt of communication, failing which it shall be presumed that such federal
society has no objection to the amalgamation, division or reorganisation and
the Registrar shall be at liberty to proceed further to take action accordingly.]

(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 sub-section (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,  the  division  or
reorganisation.

1 These words were inserted by Mah. 16 of 2013, s. 8(a)(i).
2 This proviso was added by Mah. 16 of 2013, s. 8(a)(ii).
3 The marginal note was substituted by Mah. 16 of 2013, s. 8(b)(i).

16

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Amalgamation
of Co-operative
banks.

(4) Every  member  or  creditor  of 1[,  or  other  person  interested  in,]  each
of the societies to be amalgamated, divided or reorganised, who has objected
to the scheme of amalgamation, division or reorganisation, within the period
specified,  shall  be  entitled  to  receive,  on  the  issue  of  the  order  of
amalgamation,  division  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 sub-
sections  (2),  (3)  and  (4)  of  section  17  shall  apply  to  the  societies  so
amalgamated,  divided  or  reorganised  as  if  they  were  amalgamated,  divided
or  reorganised  under  that  section,  and  to  the  society  amalgamated,  divided
or  reorganised.

2[(6) Nothing contained in this section shall apply for the  amalgamation
of 3[two or more co-operative banks or two or more primary agricultural credit
societies]].

4[18A.

(1) Where  the  Registrar  is  satisfied  that  it  is  essential  in  the
public interest, or in order to secure the proper management of one or more
co-operative  banks  that  two  or  more  such  banks  should  be  amalgamated,
then  notwithstanding  anything  contained  in  section  17,  the  Registrar  may,
after consulting such federal society or other authority as may be notified by
the  State  Government  in  the Official  Gazette,  by  order  provide  for  the
amalgamation  of  those  banks  into  a  single  bank,  with  such  constitution,
property,  rights,  interests  and  authorities,  and  such  liabilities,  duties  and
obligations as may be specified in the order. Such order may provide for the
reduction of the interest or rights which the members, depositors, creditors,
employees  and  other  persons  may  have  in  or  against  any  bank  to  be
amalgamated  to  such  extent  as  the  Registrar  considers  necessary  in  the
interest    of  such  persons  for  the  maintenance  of  the  business  of  that  bank,
having due regard to the proportion of the assets of such bank, to its liabilities.
Such order may also contain such incidental, consequential and supplemental
provisions as may, in the opinion of the Registrar, be necessary to give effect
to the amalgamation of the banks :

5[Provided  that,  such  notified  federal  society  or  other  authority  shall
communicate  its  opinion  to  the  Registrar  within  a  period  of  forty-five  days
from the date of receipt of communication, failing which it shall be presumed
that  such  notifed  federal  society  or  other  authority  has  no  objection  to  the
scheme  of  amalgamation  and  the  Registrar  shall  be  at  liberty  to  proceed
further  to  take  action  accordingly.]

(2) No order shall be made under sub-section (1), unless—

(a) a  copy  of  the  proposed  order  has  been  sent  in  draft  to  each  of  the

banks  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  or
objections  which  may  be  received  by  him  within  such  period  (not  being  less

1 These words were inserted by Mah. 20 of 1986, s. 9.
2 Sub-section (6) was added by Mah. 5 of 1976, s. 2.
3 These words were substituted for the words “ two or more co-operative banks ” by Mah. 4 of

1977, s. 2.

4 Section 18A was inserted by Mah. 5 of 1976, s. 3.
5 This proviso was added by Mah. 16 of 2013, s. 9(a).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

17

than two months from the date on which the copy of the proposed order  was
received by the banks) as the Registrar may fix in that behalf, either from the
banks  or  any  members,  depositors,  creditors,  employees  or  other  persons
concerned ;

1[(c) the Registrar has obtained the prior approval of the Reserve Bank

of India.]

(3) On  the  issue  of  an  order  under  sub-section  (1),  notwithstanding
anything contained in this Act or in any law for the time being in force or in
any  contract,  award  or  other  instruments  for  the  time  being  in  force,  the
provisions thereof shall be binding on all banks and their members, depositors,
creditors, employees and other persons having any rights, assets or liabilities
in relation to all or any of the banks concerned.

IV of
1882.
XVI
of
1908.

(4) Notwithstanding anything contained in the Transfer of Property Act,
1882    or  the  Registration  Act,  1908,  the  order  issued  under  sub-section  (1)
shall  be  sufficient  conveyance  for  transfer  or  vesting  the  rights,  assets  and
liabilities  of  the  banks  concerned  as  provided  in  the  order.

(5) The  amalgamation  of  banks  under  this  section  shall  not  affect  any
rights  or  obligations  of  the  banks  so  amalgamated  or  render  defective  any
legal  proceedings  which  might  have  been  continued  or  commenced  by  or
against  any  such  banks ;  and  accordingly,  such  legal  proceedings  may  be
continued or commenced by or against the amalgamated bank.

(6) Where two or more banks have been amalgamated, the registration
of  the  bank  in  which  the  other  banks  are  amalgamated  may  be  continued
and  the  registration  of  the  other  banks  may  be  cancelled,  or  where  the
amalgamated  bank  is  newly  registered,  the  registration  of  all  the
amalgamating banks shall be cancelled.

(7) Any  order  made  by  the  Registrar  under  this  section  shall  be  final

and conclusive, and shall not be called in question in any Court.]

2[18B.

(1) Where  the  Registrar  is  satisfied  that  it  is  essential—

(a) for  ensuring  economic  viability  of  one  or  more  primary  agricultural

credit  societies ;

(b) for  avoiding  overlapping  or  conflict  of  jurisdictions  of  such  societies

in any area ;

(c) in  order  to  secure  the  proper  management  of  one  or  more  such

societies ;

(d) in  the  interest  of  the  credit  structure  or  co-operative  movement  in

the State as a whole ;

(e) in  the  interest  of  the  depositors ;  or

(f) for  any  other  reason in  the  public  interest,

that  two  or  more  primary  agricultural  credit  societies  should  be
amalgamated,  then  notwithstanding  anything  contained  in  section  17,  the
Registrar  may,  after  consulting  such  federal  society  or  other  authority  as
may  be  notified by  the  State  Government  in  this behalf,  by  order  published
in the Official Gazette, provide for the amalgamation of those societies into a
single  society.  The  constitution,  property,  rights,  interest,  and  authorities

1 Clause (c) was added 1 by Mah. 16 of 2013, s. 9(b).
2 This section was inserted by Mah. 4 of 1977, s. 3.

H 4112—4

Amalgamation
of primary
agricultural
credit societies.

18

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

and  the  liabilities,  duties  and  obligations  of  the  amalgamated  society  shall
be  such  as  may  be  specified  in  the  order.  Such  order  may  provide  for  the
reduction of the interest or rights which the members, depositors, creditors,
employees  and  other  persons  may  have  in,  or  against,  any  society  to  be
amalgamated  to  such  extent  as  the  Registrar  considers  necessary  in  the
interest of such persons for the maintenance of the business of that society,
having  due  regard  to  the  proportion  of  the  assets  of  such  society,  to  its
liabilities.  Such  order  may  also  contain  such  incidental,  consequential  and
supplemental provisions as may, in the opinion of the Registrar, be necessary
to  give effect  to the  amalgamation  of the  societies :

1[Provided that, such notifed federal society or the other authority shall
communicate  its  opinion  to  the  Registrar  within  a  period  of  forty-five  days
from the date of receipt of communication, failing which it shall be presumed
that  such  notified  federal  society  or  other  authority  has  no  objection  to  the
scheme  of  amalgamation  and  the  Registrar  shall  be  at  liberty  to  proceed
further  to  take  action  accordingly.]

(2) No order shall be made under sub-section (1), unless—

(a) a  copy  of  the  proposed  order  has  been  sent  in  draft  to  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  or  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  proposed  order  was  received  by  the  societies)  as  the  Registrar
may  fix  in  that  behalf,  either  from  the  societies  or  any  members,
depositors,  creditors,  employees  or  other  persons  concerned.

(3) When any order is made by the Registrar under sub-section (1), the
provisions  of  sub-sections  (3)  to  (7)  (both  inclusive)  of  section  18-A  shall,
mutatis  mutandis,  apply  to  such  order,  in  the  same  manner  as  they  are
applicable to any order made by him under sub-section (1) of that section.]

2[18C.

(1) Where  the  area  of  operation  of  any  society  or  societies  is
restricted to any district, taluka, municipal area or any other local area and
such area is divided into two or more areas, or merged in any other area, or
is  diminished  or  increased  or  otherwise  altered,  under  any  law  for  the  time
being in force, and the State Government is satisfied that in the public interest,
or  in  the  interest  of  the    co-operative  movement,  or  in  the  interest  of  the
society  or  societies,  or  for  the  purpose  of  proper  demarcation  of  area  of
operation for the societies in each area, it is essential to reorganise any such
society or societies, the State Government may by an order, published in the
Official Gazette, and in such other manner as it deems fit, provide for division
of  any  existing  society  into  two  or  more  societies,  amalgamation  of  two  or
more existing societies into one society, dissolution of any existing society or
reconstitution  of  any  existing  society,  affected  by  the  territorial  changes.

(2) An  order  made  under  sub-section  (1)  may  provide  for  all  or  any  of

the  following  matters,  namely :—

(a) the  division  of  an  existing  society  into  two  or  more  societies

and the  area of  operation of  each society ;

1 This proviso was added by Mah. 16 of 2013, s. 10.
2 Section 18C was inserted by Mah. 7 of 1982, s. 2.

Reorganisa-
tion of
societies on
account of
alteration of
limits of local
areas in which
they operate.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

19

(b) the  amalgamation  of  two  or  more  existing  societies  into  one

society  and  the  area  of  its  operation ;

(c) the  dissolution  of  any  existing  society ;

(d) the  reorganisation  of  any  existing  society  and  the  area  of  its

operation ;

(e) the  removal  of  the  committee  of  any  existing  society  and  the
1[appointment  of  an  authorised  officer  or  an  interim  committee  of
management from amongst the active members of that society], to manage
the affairs of the existing society or of the new society or societies, under
the  control  and  direction  of  the  State  Government,  for  a  period  not
exceeding  two  years,  as  may  be  specified  in  the  order  or  until  the
successor  committee  of  the  concerned  society  is  duly  constituted,
whichever  is  earlier :

2*

*

*

*

*

*

*

*

(f) in  the  case  of  an  existing  federal  society,  the  transfer  of  any  of
its  member  societies  as  members  of  another  federal  society  named  in
the  order ;

(g) the  transfer,  in  whole  or  in  part,  of  the  assets,  rights  and
liabilities of any existing society, including the rights and liabilities under
any  contract  made  by  it,  to  one  or  more  societies,  and  the  terms  and
conditions  of  such  transfer ;

(h) the substitution of any such transferee for the existing society,
or the addition of any such transferee, as a party to any legal proceeding
or  any  proceeding  pending  before  an  officer  or  authority,  to  which  the
existing society is a party ; and the transfer of any proceedings pending
before  the  existing  society  or  its  officer  or  authority  to  any  such
transferee  or  its  officer  or  authority ;

(i) the transfer or re-employments of any employees of the existing
society to, or by, such transferee and the terms and conditions of service
applicable  to  such  employees  after  such  transfer  or  re-employment :

Provided that, the terms and conditions of any such employee shall
not  be  made  less  favourable  than  those  applicable  to  him  while  in  the
service  of  the  existing  society,  except with  the  previous  approval  of  the
State  Government ;

(j) the  application  of  the  by-laws  of  the  existing  society  to  one  or
more  societies  without  any  modifications  or  with  such  modifications  as
may  be  specified  in  the  order ;

(k) all incidental, consequential and supplementary matters as may
be  necessary  or  expedient  to  give  effect  to  the  order  made  under  this
section.

IV of
1882.
XVI of
1908.

(3) Notwithstanding anything contained in the Transfer of Property Act,
1882, or the Registration Act, 1908, the order issued under this section shall
be  sufficient  conveyance  for  transfer  of  the  assets,  rights  and  liabilities  of
the  existing  society  as  provided  in  the  order.

1 These words were substituted for the words “appointment of an administrator or an interim

committee of management” by Mah. 16 of 2013, s. 11(a).
2 These provisos were deleted by Mah. 16 of 2013, s. 11(b).

H 4112—4a

20

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Reconstru-
ction of
societies.

Partnership of
societies.

Collaboration
by societies.

(4) Any  order  made  by  the  State  Government  under  this  section  shall

be final and conclusive and shall not be called in question in any court.

(5) Except as otherwise provided by this section or by any order issued
thereunder,  the  provisions  of  this  Act  and  the  rules  and  orders  issued
thereunder, shall in all other respects apply to the existing societies and the
new  or  reorganised  societies  formed  under  this  section.]

19. Where  a  proposal  for  a  compromise  or  arrangement,—

(a) between  a  society  and  its  creditors,  or

(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  which  is  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 society, enter into partnership
for  carrying  out  any  specific  business  or  businesses,  provided  that  each
member has had clear ten days’ written notice of the resolution, and the date
of  the  meeting :

1[Provided  that,  in  case  of  a  society  which  has  not  taken  any  financial
assistance  from  the  Government,  in  the  form  of  share  capital,  loan  or
guarantee,  the  prior  approval  of  the  Registrar  for  entering  into  such
partnership  shall  not  be  required.]

(2) Nothing  in  the  Indian  Partnership  Act,  1932,  shall  apply  to  such

partnership.

2[20A.

(1) Any society or  societies may, with the prior  approval of the
State  Government, 3[and  subject  to  such  terms  and  conditions  as  the  State
Government  may  impose  and  in  such  manner  as  may  be  prescribed]  enter
into  collaboration  with  any  Government  undertaking  or  any  undertaking
approved  by  the  State  Government  for  carrying  on  any  specific  business  or
businesses,  including  industrial  investment,  financial  aid  or  marketing  and
management  expertise.

(2) Before approving any such scheme of collaboration by any society or
societies under sub-section (1), the State Governement shall have due regard
to  the  following  matters,  namely :—

(a) that  the  scheme  is  economically  viable ;

(b) that  it  can  be  implemented  without,  in  any  way,  eroding  the

co-operative  character  of  the  society  or  the  societies  concerned ;

(c) that the scheme is in furtherance of the interests of the members of
the  society  or  societies  concerned,  or  is  in  the  public  interest,  and  in  the
interest  of  the  co-operative  movement  in  general] :

1 This proviso was added by Mah. 34 of 2001, s. 2.
2 Section 20A was inserted by Mah. 20 of 1986, s. 10.
3 This portion was inserted by Mah. 10 of 1988, s. 4.

IX of
1932.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

21

1[Provided  that,  no  prior  approval  of  the  State  Government  shall  be
necessary  in  case  of  a  society  which  has  not  taken  any  financial  assistance
from  the  Government  in  the  form  of  share  capital,  loan  or  guarantee  and
such society may enter into collaboration with any undertaking with the prior
approval of it’s general body if the requirements laid down in clauses (a), (b)
and (c) of sub-section (2), are being fulfilled in case of such society.]

Cancellation
of
registration.

De-
registration
of societies.

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  amalgamates    with  another  society,  or  divides  itself  into  two  or  more
societies  or  if  its  affairs  are  wound  up, 2[or  it  is  de-registered  under  the
provisions  of  sub-section  (1) of  section  21A] 3[or  winding  up  proceeding  in
respect  of  the  society  are  closed  or  terminated  under  section  109.]
4*

*

*

*

*

*

The society shall from the date of such order of cancellation, be deemed

to be dissolved, and shall cease to exist as a corporate body.

5[21A.

(1) If the Registrar is satisfied that any society is registered on
mis-representation  made  by  applicants,  or  where  the  work  of  the  society  is
completed  or  exhausted  or  the  purposes  for  which  the  society  has  been
registered  are  not  served 6[or  any  primary  agricultural  co-operative  credit
society  using the  word  ‘Bank’,  ‘Banking’, ‘Banker’  or  any  other derivative  of
the  word  ‘Bank’  in  its  name,]  he  may,  after  giving  an  opportuniety  of  being
heard to the Chief Promoter, the committee and the members of the society,
de-register  the  society :

Provided  that,  where  the  number  of  members  of  the  society  is  so  large
and it is not possible to ascertain the correct addresses of all such members
from  the  records  in  the  office  of  the  Registrar  and,  in  the  opinion  of  the
Registrar  it  is  not  practicable  to  serve  a  notice  of  hearing  on  each  such
individual  member,  a  public  notice  of  the  proceedings  of  the  de-registration
shall be given in  the prescribed manner and such notice  shall be deemed to
be notice to all the members of the society including the Chief Promoter and
the  members  of  the  Committee  of  the  Society,  and  no  proceeding  in  respect
of  the  de-registration  of  the  society  shall  be  called  in  question  in  any  Court
merely on the ground that individual notice is not served on any such member.

(2) When  a  society  is  de-registered  under  the  provisions  of  sub-section
(1),  the  Registrar  may,  notwithstanding  anything  contained  in  this  Act  or
any  other  law  for  the  time  being  in  force,  make  such  incidental  and
consequential  orders  including  appointment  of  Official  Assignee  as  the
circumstances  may  require.

(3) Subject to the rules made under this Act, the Official Assignee shall
realise  the  assets  and  liquidate  the  liabilities  within  a  period  of  one  year
from  the  date  he  takes  over  the  charge  of  property,  assests,  books,  records
and  other  documents,  which  period  may,  at  the  discretion  of  the  Registrar,
be  extended  from  time  to  time,  so  however,  that  the  total  period  does  not
exceed  three  years  in  the  aggregate.

1 This proviso was added by Mah. 34 of 2001, s.3.
2 These words, brackets, figures and letter were inserted by Mah. 10 of 1988, s. 5.
3 This portion was inserted by Mah. 33 of 1963, s. 4.
4 The portion beginning with the words “ or it has not commenced business ” and ending with

the words  “ be cancelled ” was deleted by Mah. 3 of 1974, s.5.

5 Section 21A was inserted by Mah. 20 of 1986, s. 11.
6 These words were inserted by Mah. 11 of 2008, s. 5.

22

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

IX of
1872.

XXI of
1860.

(4) The Official Assignee shall be paid such remuneration and allowances
as  may  be  prescribed ;  and  he  shall  not  be  entitled  to  any  remuneration
whatever  beyond  the  prescribed  remuneration  or  allowances.

(5) The powers of the Registrar under sub-sections (1) and (2) shall not
be exercised by any 1[officer below the rank of a Joint Registrar of Co-operative
Societies].]

CHAPTER  III

MEMBERS AND THEIR RIGHTS AND LIABILITIES

Person who
may become
member.

22.

(1) Subject  to  the  provisions  of  section  24,  no  person  shall  be

admitted as a member of a society except the following, that is 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 ;

2[(d) the  State  Government  or  the  Central  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 ;

3[(g) the  depositor  or  the  financial  service  user  :]

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,  muncipality,  cantonment  or  notified  area  committee.

4[(1A) Notwithstanding anything contained in sub-section (1), the State
Government may, having regard to the fact that the interest of any person or
class of persons conflicts or is likely to conflict with the objects of any society
or  class  of  societies,  by  general  or  special  order,  published  in  the Official
Gazette,  declare  that  any  person  or  class  of  persons  engaged  in  or  carrying
on  any  profession,  business  or  employment  shall  be  disqualified  from  being

1 These words were substituted for the portion beginning with the word “ person ” and ending

with the word and figure “ section 3 ” by Mah. 10 of 1988, s. 6.

2 Clause (d) was substituted for the original by Mah. 27 of 1969, s. 7(a).
3 Clause (g) was inserted by Mah. 11 of 2008, s. 6.
4 Sub-section (1A) was inserted by Mah. 27 of 1969, s. 7(b).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

23

admitted, or for continuing, as members or shall be eligible for membership
only  to  a  limited  extent  of  any  specified  society  or  class  of  societies,  so  long
as such person or persons are engaged in or carry on that profession, business
or employment, 1[as the case may be ; and the question whether a person, is
or is not so engaged in or carrying on any profession, business or employment
or  whether  a  person  belongs  or  does  not  belong  to  such  class  of  persons  as
declared under this sub-section and has or has not incurred a disqualification
under  this sub-section  shall  be  decided by  the  Registrar  under section  11].]

2[(1B) Notwithstanding anything contained in sub-section (1), where the
Registrar  has  decided  under  section  11  that  a  person  has  incurred  a
disqualification under sub-section (1A), the Registrar or the person not below
the  rank  of  District  Deputy  Registrar  of  Co-operative  Societies,  authorised
by him in this behalf, may, by order, remove such person from the membership
of the society; and such person shall cease to be a member of the society on
expiration of a period of one month from the date of receipt of such order by
him.]

(2) Where  a  person  is  refused  admission  as  a  member  of  a  society,  the
decision  (with  the  reasons  therefor)  shall  be  communicated  to  that  person
within fifteen days of the date of the decision, or within three months 3[from
the date of receipt of the application for admission,— whichever is earlier. If
the society does not communicate any decision  to the applicant within three
months  from  the  date  of  receipt  of  such  application,  the  applicant  shall  be
deemed to have been 4[admitted] as a member of the society. 5[If any question
arises  whether  a  person  has  become  a  deemed  member  or  otherwise,  the
same shall be decided by the Registrar after giving a reasonable opportunity
of  being  heard  to  all  the  concerned  parties].]

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 by-laws.

Open
membership.

6[(1A) Where a society refuses to accept the application from an eligible
person for admission as a member, or the payment made by him in respect of
membership, such person may tender an application in such form as may be
prescribed  together  with  payment  in    respect  of  membership,  if  any,  to  the
Registrar, who shall forward the application and the amount, if any so paid,
to  the  society  concerned  within  thirty  days  from  the  date  of  receipt  of  such
application and the amount ; and thereupon if the society fails to communicate
any  decision  to  the  applicant  within  sixty  days  from  the  date  of  receipt  of
such application and the amount by the society, the applicant shall be deemed
to have become a member of such society. 7[If any question arises whether a
person has become a deemed member or otherwise, the same shall be decided
by  the  Registrar  after  giving  a  reasonable  opportunity  of  being  heard  to  all
the  concerned  parties.]]

1 This  portion  was  substituted  for  the  words  “ as  the  case  may  be ”  by  Mah.  20  of  1986,

s. 12(a).

2 Sub-section (1B) was inserted, by Mah. 20 of 1986, s. 12(b).
3 These words were substituted for the words “ from the date of the application for admission,—

whichever is earlier ” by Mah. 27 of 1969, s. 7(c).

4 This word was substituted for the words “ refused admission ” by Mah. 20 of 1986, s. 12(c).
5 These words were added by Mah. 7 of 1997, s. 3.
6 Sub-section (1A) was inserted by Mah. 20 of 1986, s.13(a).
7 These words were added by Mah. 7 of 1997, s. 4.

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[1961 : Mah. XXIV

(2) Any  person  aggrieved  by  the  decision  of  a  society,  refusing  him
admission to its membership, may appeal to the Registrar 1[, within a period
of sixty days from the date of the decision of the society]. 2[Every such appeal,
as  far  as  possible,  be  disposed  of  by  the  Registrar  within  a  period  of  three
months from  the date of  its receipt :

Provided  that,  where  such  appeal  is  not  so  disposed  of  within  the  said
period of three months, the Registrar shall record the reasons for the delay.]

(3) 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.

3[(4) Without  prejudice  to  the  foregoing  provisions  of  this  section,  in
the case of agro-processing societies or any other society for which a definite
zone  or  an  area  of  operation  is  allotted  by  the  State  Government  or  the
Registrar,  it  shall  be  obligatory  on  the  part  of  such  society  to  admit,  on  an
application  made  to  it,  every  eligible  person  from  that  zone  or  the  area  of
operation, as the case may be, as a member of such society, unless such person
is already registered as a member of any other such society, in the same zone
or  the  area  of  operation.]

6[Nominal
and associate
member.]

24.

(1) Notwithstanding  anything  contained  in  section  22,  a  society

may admit any person as a 4[nominal or associate member].

(2) A nominal member 5* * shall not be entitled to any share in any form
whatsover in the profits or assets of the society as such member. A nominal
5*  *  member  shall  ordinarily  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-section  (8)  of  section  27,  have  such  privileges  and  rights
and be subject to such liabilities, of a member, as may be specified in the by-
laws  of  the  society.

Co-operative
education and
training to
members, etc.

7[24A.

(1) Every  society  shall  organise  co-operative  education  and
training, for its members, officers and employees through such State federal
societies  or  the  State  Apex  Training  Institutes,  as  the  State  Government
may,  by  notification  in  the Official  Gazette,  specify.  Such  education  and
training  shall,—

(i) ensure  the  effective  and  active  participation  of  the  members  in

the  management  of  the  society ;

(ii) groom  talented  employees  for  leadership  position ;

(iii) develop professional  skills through co-operative  education and

training.

1 These words were inserted by Mah. 16 of 2013, s. 12.
2 This portion was added by Mah. 20 of 1986, s. 13(b).
3 Sub-section (4) was added by Mah. 20 of 1986, s. 13(c).
4 These words were substituted for the words “nominal, associate or sympathiser member”

by Mah. 16 of 2013, s. 13(a).

5 The  words “or  sympathiser member”  and “or  sympathiser” were  deleted, by  Mah. 16  of

2013, s. 13(b).

6 The marginal note was substituted, by Mah. 16 of 2013, s. 13(b).
7 Section 24A was inserted, by Mah. 16 of 2013, s. 14.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

25

(2) Every  member  of  the  committee,  whether  elected  or  co-opted,  shall
undergo such co-operative education and training for such period and at such
intervals  as  may  be  prescribed.

(3) Every  society  shall  contribute  annually  towards  the  education  and
training fund of the State Federal Societies or State Apex Training Institutes,
notified under sub-section (1), at such rates as may be prescribed, and different
rates  may  be  prescribed  for  different  societies  or  classes  of  societies.]

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 1[from the society, or where a firm, company, any other
corporate body, society or trust is a member, on its dissolution or ceasing to
exist.]

Cessation of
membership.

Removal of
names of
members
from
membership
register.

Rights and
duties of
members.

2[25A. The committee of a society shall remove from the register of its
members the name of a person who has ceased to be a member or who stands
disqualified  by  or  under  the  provisions  of  this  Act  for  being  the  member  or
continuing to be the member of a society :

Provided  that,  if  the  society  does  not  comply  with  the  requirement  of
this  section,  the  Registrar  shall  direct  such  society  to  remove  the  name  of
such person, and the society shall be bound to comply with such direction.]

3[26. (1) A member shall be entitled to exercise such rights as provided

in the Act, rules and by-laws :

Provided  that,  no  member  shall  exercise  the  rights,  until  he  has  made
such  payment  to  the  society  in  respect  of  membership,  or  acquired  such
interest  in  the  society,  as  may  be  prescribed  and  specified  under  the
by-laws of the society, from time to time :

Provided  further  that,  in  case  of  increase  in  minimum  contribution  of
member  in  share  capital  to  exercise  right  of  membership,  the  society  shall
give  a  due  notice  of  demand  to  the  members  and  give  reasonable  period  to
comply  with.

(2) It shall be the duty of every member of a society,—

(a) to attend at least, one general body meeting within a consecutive

period of  five years  :

Provided  that,  nothing  in  this  clause  shall  apply  to  the  member  whose

absence has been  condoned by the general body  of the society ;

(b) to utilise minimum level of services at least once in a period of

five  consecutive  years  as  specified  in  the  by-laws  of  the  society :

Provided  that,  a  member  who  does  not  attend  at  least  one  meeting  of
the general body as above and does not utilise minimum level of services at
least once in a period of five consecutive years, as specified in the by-laws of
such  society  shall  be  classified  as  non-active  member :

1 These words were substituted for the words “from the society” by Mah. 20 of 1986, s. 14.
2 Section 25A was inserted, by Mah. 20 of 1986, s. 15.
3 Section 26 was substituted for the original by Mah. 16 of 2013, s. 15.

H 4112—5

26

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[1961 : Mah. XXIV

Provided further that, when a society classifies a member as a non-active
member,  the  society  shall,  in  the  prescribed  manner  communicate  such
classification,  to  the  concerned  member  within  thirty  days  from  the  date  of
close of the financial year :

Provided  also  that,  a  non-active  member  who  does  not  attend  at  least
one meeting of the general body and does not utilise minimum level of services
as specified  in the  by-laws, in next  five years from  the date  of classification
as a non-active member, shall be liable for expulsion under section 35 :

Provided also that, a member classified as non-active member shall, on
fulfillment of the eligibility criteria as provided in this sub-section be entitled
to be re-classified as an active member :

Provided also that, if a question of a member being active or non-active
member  arises,  an  appeal  shall  lie  to  the  Registrar  within  a  period  of  sixty
days from the date of communication of classification :

Provided also that, in any election conducted immediately after the date
of  commencement  of  the  Maharashtra  Co-operative  Societies  (Amendment)
Act, 2013, all the existing members of the society shall be eligible for voting,
unless  otherwise  ineligible  to  vote.]

Mah.
XVI of
2013.

Voting powers
of members.

27.

1[(1) Save  as  otherwise  provided  in  sub-sections  (2)  to  (7),  both
inclusive,  no  member  of  any  society  shall  have  more  than  one  vote  in  its
affairs; and every right to vote shall be exercised personally, and not by proxy :

Provided  that,  in  the  case  of  an  equality  of  votes  the  Chairman  shall

have a casting vote.]

2[Explanation.—For the purposes of this sub-section, “votes to more than

one candidate from the panel” shall be treated as one vote.]

3[(1A) Notwithstanding anything contained in sub-section (1), an active
member  who  subsequently  fails  to  participate  in  the  affairs  of  the  society
and  to  use  the  services  upto  the  minimum  level  as  specified,  from  time  to
time,  in  the  by-laws,  shall  cease  to  be  an  active  member  and  shall  not  be
entitled  to  vote.]

(2) Where  a  share  of  a  society  is  held  jointly  by  more  than  one  person,
4[  the  person  whose  name  stands  first  in  the  share  certificate,  if  present,
shall have the right to vote. But in his absence the person whose name stands
second, and in the absence of both, the person whose name stands next, and
likewise,  in  the absence  of  the  preceding  persons  the person  whose  name  is
next  on  the  share  certificate,  who  is  present  and  who  is  not  a  minor,  shall
have the right to vote.]

5[(3) A society, which has invested any part of its funds in the shares of
any  federal  society,  may  appoint  one  of  its 6[active]  members  to  vote  on  its
behalf  in  the  affairs  of  that  federal  society ;  and  accordingly  such  member
shall have the right to vote on behalf of the society :

1 Sub-section (1) was substituted for the original by Mah. 45 of 1983, s. 2(a).
2 The Explanation was inserted by Mah. 16 of 2013, s. 16(a).
3 Sub-section (1A) was inserted by Mah. 16 of 2013, s. 16(b).
4 These words were substituted for the words “only the person whose name stands first in the

share certificate, shall have the right to vote,” by Mah. 27 of 1969,  s. 8(b).

5 Sub-sections (3) and (3A) were substituted for sub-section (3) by Mah. 41 of 2000, s. 2.
6 This word was inserted by Mah. 16 of 2013, s. 16 (c).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

27

Provided  that,  any  new  member  society  of  a  federal  society  shall  be
eligible to vote in the affairs of that federal society only after the completion
of the period of three years from the date of its investing any part of its fund
in the  shares of  such federal  society :

Provided  further  that,  where  the  election  is  to  a  reserved  seat  under

section 73-B, no person shall have more than one vote.

(3A) An individual member of a society shall not be eligible for voting in
the  affairs  of  that  society  for  a  period  of  two  years  from  the  date  of  his
enrollment as a member of such society :]

1[Provided  that,  nothing  in  this  sub-section  shall  apply  in  respect  of  a

co-operative  housing  society  and  a  co-operative  premises  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 of its directors or officers to vote on
its  behalf  in  the  affairs  of  such  society ;  and  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 2[appointed  by  the  firm]  shall  be  entitled  to
vote in the affairs 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 society, may appoint any of its members or trustees,
to vote on its behalf in the affairs of that society ; and accordingly such persons
shall  have  the  right  to  vote  on  behalf  of  the  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 be regulated by the rules made under this Act
and by the by-laws of the society.

(8) No nominal 3*     *

*    member  shall  have  the  right  to  vote
5[, and no such member shall be eligible to be a member of a committee or for
appointment  as  a  representative  of  the  society  on  any  other  society].

4*

6[(9) No  nominee  of  the  Government  or  any  financing  bank  on  the
committee of any society shall be entitled to vote at any election of officers of
such  committee  such  as,  the  President,  Vice-President,  Chairman,  Vice-
Chairman,  Secretary,  Treasurer  or  any  other  officer  by  whatsoever
designation called, who holds the office by virtue of his election to that office.]

1 This proviso was added by Mah. 16 of 2013, s. 16(d).
2 These words were inserted by Mah. 33 of 1963, s. 5.
3 The word “associate” was deleted by Mah. 27 of 1969, s. 8(c).
4 The words “or sympathiser” were deleted by Mah. 16 of 2013, s. 16(d).
5 These words were added by Mah. 27 of 1969, s. 8(c).
6 Sub-section (9) was substituted by Mah. 7 of 1997, s. 5.

H 4112—5a

28

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

1[2[If  a  member  has  taken  a  loan  from  the  society,  such  member  shall,
whenever  he  is  a  defaulter,  as  provided  in  the Explanation  to  clause  (i)  of
sub-section  (1)  of  section  73CA,  have  no  right  to  vote  in  the  affairs  of  the
society :]

Provided that, a member shall not be deemed to be a defaulter, if he has
discharged his obligation to deliver his marketable produce to the marketing
or processing society and the value of such produce is not less than the amount
of  his  dues,  even  if  the  actual  settlement  of  his  dues,  either  in  whole  or  in
part, takes place at a later stage.

(11) The  agricultural  credit  society  may  issue  suitable  orders  for  the

purpose  of  carrying  out  the  provisions  of  sub-section  (10)].

3*

*

*

*

*

Restrictions
on holding of
shares.

28.

In  any  society, 4[no  member,  other  than  the  Government,  or  any
other society, or with the previous sanction of the State Government a  Zilla
Parishad constituted under the Maharashtra Zilla Parishads and Panchayat
Samitis Act, 1961, shall—]

Mah. V
of 1962.

(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

5[twenty  thousand  rupees] :

Provided that the State Government may, by notification in the Official
Gazette, specify in respect of any class of societies a higher or lower maximum
than one-fifth  of the  share capital  or, as  the case  may be,  a higher  or lower
amount  than 5[twenty  thousand  rupees.]

Restrictions
on transfer or
charge of
share or
interest.

29.

(1) Subject to the provisions of the last preceding section as to the
maximum holding of shares and to any rules made in this behalf, a 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 application for membership has been accepted 6[by the society, or
to  a  person whose  appeal  under  section 23  of  the  Act has  been  allowed
by  the  Registrar ;  or  to  a  person  who  is  deemed  to  be  a  member  under
sub-section (1A) of section 23].

1 Sub-sections (10) and (11) were added by Mah. 3 of 1974, s. 6.
2 This portion was substituted for the portion beginning with the words “In the case of ” and

ending with the words, “of the society” by Mah. 16 of 2013, s. 16(e).

3 Sub-section (12) was deleted by Mah. 16 of 2013, s. 16(f).
4 This portion was substituted for the words “no member other than the State Government or

any other society, shall—” by Mah. 27 of 1969, s. 9.

5 These words were substituted for the words “ five thousand rupees ” by Mah. 20 of 1986,

s. 16.

6 This portion was substituted for the words “ by the society ” by Mah. 20 of 1986,  s. 17.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

29

(3) Notwithstanding  anything  contained  in  sub-sections  (1)  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 by-laws of the society, the society may acquire the share or interest
of such member in the share capital 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 capital of the society on the last day of the financial
year  immediately  preceding.

Explanation 1[I].—The  right  to  forfeit  the  share  or  interest  of  any
expelled member in the share capital by virtue of any by-laws of the society,
shall  not  be  affected by  the  aforesaid  provision.

1[Explanation II.—In this section, the expression “ financial year ” means
the year ending on the 2[31st day of March] or, in the case of any society or
class of socieites the accounts of which are with the previous sanction of the
Registrar balanced on any other day, the year ending on such day.]

(4) Where the State Government is a member of a society, the restrictions
contained  in  this  section  shall  not  apply  to  any  transfer  made    by  it  of  its
share  or  interest  in  the  capital  of  the  society ;  and  that  Government  may,
notwithstanding  anything  in  this  Act,  withdraw  from  the  society  its  share
capital at any time, after giving to the society notice thereof of not less than
three  months.

30.

(1) On the death of a member of a society, the society shall transfer
the  share  or  interest  of  the  deceased  member  to  a  person  or  persons
nominated in accordance with the rules or, if no person has been so nominated,
to  such  person  as  may  appear  to  the  committee  to  be  the  heir  or  legal
representative  of  the  deceased  member :

Transfer of
interest on
death of
member.

Provided  that,  such  nominee,  heir  or  legal  representative,  as  the  case

may be, is duly admitted as a member of the society :

Provided further that,  nothing in this sub-section or in  section 22 shall
prevent a minor or a person of unsound mind from acquiring by inherintance
or otherwise, any share or interest of a deceased member in a society.

(2) Notwithstanding  anything  contained  in  sub-section  (1),  any  such
nominee,  heir  or  legal  representative,  as  the  case  may  be,  may  require  the
society to pay to him the value of the share or interest of the deceased member,
ascertained  in  accordance  with  the  rules.

(3) A  society  may  pay  all  other  moneys  due  to  the  deceased  member
from  the    society  to  such  nominee,  heir  or  legal  representative,  as  the  case
may be.

(4) All  transfers  and  payments  duly  made  by  a  society  in  accordance
with  the  provisions  of  this  section,  shall  be  valid  and  effectual  against  any
demand made upon the society by any other person.

1 The Explanation was renumbered as Explanation I and Explanation II was added by Mah.

33 of 1963, s. 6.

2 These figures, letters and words were substituted for the figures, letters and words “ 30th

June ” by Mah. 13 of 1994, s. 3.

30

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Share or
interest not
liable to
attachment.

31. The share or interest of a member in the capital of a society, or in
the loan-stock issued by a housing society, or in the funds raised by a society
from its members by way of savings deposit, shall not be liable to attachment
or sale under any decree or order of a Court for or in respect of any debt or
liability  incurred  by  the  member ;  and  accordingly,  neither  the  Official
Assignee  under  the  Presidency-towns  Insolvency  Act,  1909,  nor  a  Receiver
under the Provincial Insolvency Act, 1920, nor any such person or authority
under any corresponding law for the time being in force, shall be entitled to
or have any claim on, such share or interest.

III of
1909.
V of
1920.

Rights of
members to
see books, etc.

Certain
societies to
give pass
books to
members and
entries in
such book
evidence of
amount due.

32.

(1) Every  member  of  a  society  shall  be  entitled  to  inspect,  free  of
cost, at the society’s office during office hours, or any time fixed for the purpose
by the  society, a copy  of the Act,  the rule, and  the by-laws, the  last audited
annual balance sheet, the profit and loss account, a list of the members of the
committee, a register of members, the minutes of general meetings, minutes
of committee meetings and those portions of the books and records in which
his  transactions  with  the  society  have  been  recorded.

(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  sub-section  within  one  month  from
the date of payment of such fees.

1[32A.

(1) A society which gives loans to its members 2[or a society or
class  of  societies  which  the  State  Government  may  notify  in  the Official
Gazette,  from  time  to  time,]  shall  furnish  each  member  with  a  pass  book,
which shall contain an account of the transactions with the member, such as,
the date of the transaction, the amount of loan advanced, the rate of interest,
the repayment made by the member, the amount of the principal and interest
due, and such other particulars as may be prescribed. The necessary entries
shall be made in the pass book, from time to time, which shall be countersigned
by such office-bearer of the society as may be authorised in his behalf by the
committee.  For  this  purpose, 3[the  member]  shall  be  bound  to  present  the
pass book to such office-bearer, and if the pass book is required to be kept for
some time for making the necessary entries, the member shall be granted a
receipt  therefor,  by  such  office-bearer.

(2) The  entries in  the pass  book duly  made  shall, until  the contrary  be
proved, be prima  facie evidence  of the  account of  transactions of  the society
with  the  member.]

Liability of
past  member
and estate of
deceased
member.

33.

(1) Subject  to  the  provisions  of  sub-section  (2), the  liability  of  a
past member, or of the estate of a deceased member, of a society for the debts
of the  society as  they stood,—

(a) in 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 two years from such date.

1 Section 32A was inserted by Mah. 3 of 1974, s. 7.
2 These words were inserted by Mah. 20 of 1986, s. 18(a).
3 These words were substituted for the words “ the depositor ”, by Mah. 20 of 1986, s. 18(b).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

31

(2) Where  a  society  is  ordered  to  be  wound  up  under  any  provision  of
this Act, the liability of a past member or of the estate of a deceased member,
who ceased to be a member or 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 may be.

III  of
1909.
V  of
1920.

34. Notwithstanding  anything  contained  in  the  Presidency-towns
Insolvency  Act,  1909,  the  Provincial  Insolvency  Act,  1920,  or  any  corre-
sponding  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.

Insolvency of
members.

35.

(1) A society may, by resolution passed 1[ by a majority of not less
than  three-fourths]  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 :

Expulsion  of
members.

Provided  that,  no  resolution  shall  be  valid,  unless  the  member  con-
cerned  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  re-admission  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  that,  the Registrar  may,  on  an  application by  the Society  and
in  special  circumstances,  sanction  the  re-admission  or  admission,  within
the  said  period,  of  any  such  member  as  a  member  of  the  said  society  or  of
any  other  society,  as  the  case  may  be.

CHAPTER  IV

INCORPORATION, DUTIES AND PREVILEGES OF SOCIETIES

36. The  registration  of  a  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,  hold  and  dispose  of  property,  to
enter  into  contracts,  to  institute  and  defend  suits  and  other  legal  proceed-
ings,  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,  that  is  to  say,—

Societies  to
be  bodies
corporate.

Address  of
societies.

Register  of
members.

(a) the  name,  address  and  occupation  of  each  member ;
(b) in  the  case  of  a  society  having  share  capital,  the  share  held  by

each  member ;

1 These  words  were  substituted  for  the  words  “by  three-fourths  majority”  by  Mah.  33  of

1963, s.7.

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(c) the  date  on  which  each  person  was  admitted  a  member ;

(d) the  date  on  which  any  person  ceased  to  be  a  member ;  and

(e) such  other  particulars  as  may  be  prescribed :

Provided  that,  where  a  society  has  by  or  under  this  Act,  permitted  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  member,  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.

Copy  of  Act,
etc.,  to  be
open  to
inspection.

39. Every  society  shall  keep,  at  the  registered  address  of  the  society,
a  copy  of  this  Act  and  the  rules  and  of  its  by-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  therefor.

Admissibility
of  copy  of
entry  as
evidence.

Exemption
from
compulsory
registration
of
instruments
relating  to
shares  and
debentures  of
society.

40. (1) 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) In  the  case  of  such  societies,  as  the  State  Government  may  by
general  or  special  order  direct,  no  officer  of  a  society  shall  in  any  legal
procedings  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 clauses (b) and  (c) of  sub-section (1) of  section 17  of the

Indian  Registration  Act,  1908,  shall  apply—

XVI  of
1908.

(a) to  any  instrument  relating  to  shares  in  a  society,  notwithstand-
ing 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,
declaring,  assigning,  limiting  or  extinguishing  any  right,  title  or  interest
to  or  in  immovable  property,  except  in  so  far  as  it  entitles  the  holder  to
the  security  afforded  by  a  registered  instrument  whereby  the  society  has
mortagaged,  conveyed  or  otherwise  transferred  the  whole  or  part  of  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.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

33

42.

1[(1)] The  State  Government  by  notification  in  the Official
Gazette  may,  in  the  case  of  any  society  or  class  of  societies, 2[reduce  or
remit,  whether  prospectively  or  retrospectively,  in  the  whole  of  the  State
or  any  part  thereof]—

Power  to
exempt  from
taxation
5[; power to
refund].

(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  society,  or  any  class  of  such  instruments,  or  awards  of
the  Registrar 3[or  Co-operative  Court]  under  this  Act,  are  respectively
chargeable,

(b) any  fee  payble  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.

4[(2) The  State  Government  may  refund  the  amount  of  any  tax,  fee  or
duty  paid  in  pursuance  of  any  law  referred  to  in  sub-section  (1)  in  such
circumstances,  to  such  extent  and  subject  to  such  terms  and  conditions,  if
any,  as  the  State  Government  may  by  order  determine.]

43.

6[(1)] A  society  shall  receive  deposits  and  loans  from  members
and  other  persons,  only  to  such  extent,  and  under  such  conditions,  as  may
be  prescribed,  or  specified  by  the  by-laws  of  the  society :

Restrictions
on
borrowings.

7[Provided  that,  the  co-operative  credit  structure  entity  shall  adopt  its
own  policies  regarding  interest  rates  on  deposits  and  loans  in  conformity
with 8[guidelines  of  the  Reserve  Bank  of  India  or  the  National  Bank.]

6[(2) If  in  the  opinion  of  the  Registrar  it  is  necessary  so  to  do  for
ensuring  safety  of  the  funds  obtained  under  sub-section  (1),  for  proper
utilisation  of  such  funds  in  furthrance  of  the  objects  of  the  society    or
societies  concerned  and  for  keeping  them  within  the  borrowing  limits  as
laid  down  in  the  rules  and  by-laws,  the  Registrar  may,  by  general  or
special  order,  impose  additional  conditions  on  any  society  or  class  of
societies,  subject  to  which  and  the  extent  upto  which  such  society  or  such
class  of  societies  may  receive  deposits,  issue  debentures  or  raise  loans
from  any  creditor  other  than  a  Central  Bank] :

1 Section 42 was renumbered as sub-section (1) by Mah. 40 of 1972, s. 2(1).
2 These words were substituted for the word “remit ” by Mah. 40 of 1972, s. 2 (1).
3 These words were substiuted for the words “ or his nominee or board of nominees ” by Mah.

3 of 1974, s. 8.

4 This sub-section was added by Mah. 40 of 1972, s. 2(2).
5 These words were added by Mah. 40 of 1972, s. 2(3).
6 Section 43 was renumbered as sub-section (1) and  sub-section (2) was added by Mah. 33 of

1963, s.8.

7 This proviso was added by Mah. 11 of 2008, s. 8(a).
8 These words were substituted for the words “the Reserve Bank of India guidelines” by Mah.

16 of 2013, s. 17(a).

H 4112—6

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

1[Provided  that,  nothing  in  this  sub-section  shall  apply  to  a  society
which  has  not  taken  any  financial  assistance  from  the  Government  in  the
form  of  share  capital,  loan 2[,  subsidy]  or  guarantee  and  such  society  may
adopt  its  own  borrowing  policy  having  regard  to  its  financial  position.
However,  such  society  shall  send  to  the  Registrar,  in  writing,  full  details
about  its  borrowing  policy,  and  change,  if  any,  introduced  in  such  policy  at
any  time :]

3[Provided  further  that,  nothing  in  this  sub-section  shall  apply  to  the
co-operative  credit  structure  entity.  However,  such  entity  may  adopt  its
own  policy  in  confirmity  with 4[guidelines  of  the  Reserve  Bank  of  India  or
the  National  Bank.]]

5[(3)  Notwithstanding  anything  contained  in  sub-sections  (1)  and  (2),
and  subject  to  the  guidelines  issued  by  the  Reserve  Bank  of  India  and  the
National  Bank,  from  time  to  time,  a  co-operative  credit  structure  entity
may,—

(a)  borrow  from  any  financial  institution  regulated  by  the  Reserve
Bank  of  India,  keeping  in  view  the  interest  of  the  society  and  its
members;

(b)  decide  interest  rates  on  deposits  and  loans;  and
(c)  decide  loan  policies  and  issues  relating  to  individual  loans.]

Regulation  of
loan  making
policy.

44.

(1) No  society  shall  make  a  loan  to  any  person  other  than  a
member  or  on  the  security  of  its  own  shares,  or  on  the  security  of  any
person  who  is  not  a  member :

Provided  that,  with  the  special  sanction  of  the  Registrar,  a  society

may  make  loans  to  another  society.

(2) Notwithstanding  anything  contained 

foregoing
sub-section,  a  society  may  make  a  loan  to  a  depositor  on  the  security  of  his
deposit.

the 

in 

(3) If  in  the  opinion  of  the  State  Government,  it  is  necessary  in  the
interest  of  the  society  or  societies  concerned  to  do  so,  the  State  Govern-
ment  may,  by  general  or  special  order,  prohibit,  restrict  or  regulate  the
lending  of  money  by  any  society  or  class  of  societies  on  the  security  of  any
property :

6[Provided  that,  the  Registrar  may,  for  ensuring  safety  of  the  funds  of
the  society  or  societies  concerned,  for  proper  utilisation  of  such  funds  in
furtherance  of  their  objects  and  for  keeping  them  within  the  loan  making
limits  laid  down  in  the  rules  and  by-laws,  with  the  approval  of  the
Apex  Bank,  by  general  or  special  order,  regulate  further  the  extent,
conditions  and  manner  of  making  loans  by  any  society  or  class  of  societies
to  its  members  or  other  societies :]

7[Provided  further  that,  nothing  in  this  section  shall  apply  to  the  loan
making  policy  made  by  the  co-operative  credit  structure  entity.  However,
such  entity  shall  adopt  its  own  policy  in  conformity  with 8[guidelines  of  the
Reserve  Bank  of  India  or  National  Bank.]]

1 This proviso was added by Mah. 34 of 2001, s. 4.
2 This word was inserted by Mah. 16 of 2013, s. 17(b)(i).
3 This proviso was added by Mah. 11 of 2008, s. 8(b).
4

 These words were substituted for the words “Reserve Bank of India guidelines” by Mah. 16
of 2013, s. 17 (b) (ii).

5 Sub-section (3) was added by Mah. 11 of 2008, s. 8(c).
6 This proviso was added by Mah. 33 of 1963, s. 9.
7 This proviso was added by Mah. 11 of 2008, s. 9.
8 These words were substituted for the words, “the Reserve Bank of India guidelines” by Mah.

16 of 2013, s. 18.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

35

1[44A. Notwithstanding  anything  contained  in  any  agreement  or  any
law  for  the  time  being  in  force,  a  society 2[(including  a  co-operative  bank
and  a  Co-operative  Agriculture  and  Rural  Multipurpose  Development
Bank)]  shall  not  for  any  loan  (including  rehabilitation  loan  but  excluding
long-term  loan  for  irrigation  or  agricultural  development  purposes  or  loan
exceeding 3[rupees  ten  thousand]  for  non-agricultural
4* *    purposes)
given  by  it  to  any  member  (including  a  member-society)  for  a  period  not
exceeding  15  years,  whether  the  loan  was  given  before  or  is  given  after  the
commencement  of  the  Maharashtra  Co-operative  Societies  (Second
Amendment)  Act,  1985,  recover,  in  any  manner  whatsoever,  on  account  of
interest,  a  sum  greater  than  the  amount  of  the  principal  of  the  loan :]

5[Provided  that,  nothing  in  this  section  shall  apply  to  a  loan  exceeding
one  lakh  rupees  given  by  a  Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank  to  any  member.]

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.

Mah.
XX of
1986.

46. A  society  shall  have  a  charge  upon  the  share  or  interest  in  the
capital,  and  on  the  deposits,  of  a  member  or  past  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  society  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
invested  with  it  by  a  society  out  of  the  provident  fund  establised  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.

Limit  on
interest  in
certain  cases.

Restrictions
on other
transactions
with non-
members.

Charge  and
set-off  in
respect  of
share  or
interest  of
member.

V  of
1908.

47.

(1) Notwithstanding  anything  in  any  other law  for  the  time  being
in  force,  but  subject  to  any  prior  claim  of  Government  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,  1908,—

Prior  claim  of
society.

(a) 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  the  crops  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  pur-
chased  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

1 Section 44A was substituted by Mah. 20 of 1986, s. 19.
2 These brackets and words were substituted for the brackets and words “(including a Co-
operative Bank but excluding an Agriculture and Rural Development Bank)” by Mah. 41 of
2005, s. 3(a).

3 These words were substituted for the words “rupees three thousand” by Mah. 16 of 2013,

s. 19(a).

4 The words “or commercial” were deleted by Mah. 16 of 2013, s. 19(b).
5 This proviso was added by Mah. 41 of 2005, s. 3(b).

H 4112—6a

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(iii) upon  any  movable  property  which  may  have  been  hy-
pothecated,  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  Government  in  respect  of  dues  other
than  land  revenue,  shall  be  restricted  for  the  purpose  of  sub-section  (1)  to
the  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  sub-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  disposal  of  the  produce  of  its
members,  may  provide  in  its  by-laws,  or  may  otherwise  contract  with  its
members,—

(a) that  every  such  member  shall  dispose  of  his  produce  through

the  society,  and

(b) that  any  member,  who  is  found  guilty  of  a  breach  of  the
by-law or of any such contract, shall reimburse the society for any loss,
determined  in  such  manner  as  may  be  specified  in  the  by-laws.
48. Notwithstanding  anything  contained  in  this  Act  or  in  any  other

law  for  the  time  being  in  force,—

(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,  make  a  declaration  in  the  form  prescribed.  Such
declaration  shall  state  that  the  applicant  thereby  creates  a  charge  on
such  land  or  interest  specified  in  the  declaration  for  the  payment  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  a  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
effect  referred  to  in  clause  (a);  and  no  such  person  shall,  unless  and
until  he  has  made  such  declaration,  be  entitled  to  exercise  any  right
as  a  member  of  the  society  ;

(c) 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  such  charge  is  created  ;

Charge on
immovable
property of
members
borrowing
from  certain
societies.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

37

Bom.
VII  of
1879.

Bom.
XXVIII
of  1947.

Mah.
XLI of
1966.

(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  that,  it  shall  be  lawful  to  a  member  to  execute  a
mortgage  bond 1[in  respect  of  such  land  or  any  part  thereof  in  favour
of 2[a  Co-operative  Agriculture  and  Rural  Multipurpose  Development
Bank]  or  of  the  State  Government]  under  the  Bombay  Canal  Rules
made  under  the  Bombay  Irrigation  Act,  1879*  or  under  any  corre-
sponding  law  for  the  time  being  in  force  for  the  supply  of  water  from
a  canal  to  such  land,  or  to  any  part  thereof :

Provided  further  that,  if  a  part  of  the  amount  borrowed  by  a
member  is  paid, 3[the  society  with  the  approval  of  the  Central  Bank  to
which  it  may  be  indebted]  may,  on  an  application  from  the  member,
release  from  the  charge  created  under  the  declaration  made  under
clause  (a)  or  (b),  such  part  of  the  movable  or  immovable  property
specified  in  the  said  declaration,  as  it  may  deem  proper,  with  due
regard  to  the  security  of  the  balance  of  the  amount  remaining  out-
standing  from  the  member  ;

(e) any  alienation  made  in  contravention  of  the  provisions  of

clause  (d)  shall  be  void ;

(f) 4[subject  to  all  claims  of  the  Government  in  respect  of  land
revenue  or  any  money  recoverable  as  land  revenue,  and  all  claims  of
the 5[  Co-operative  Agriculture  and  Rural  Multipurpose  Development
Bank]  in  respect  of  its  dues,  in  either    case  whether  prior  in  time  or
subsequent,]  and  to  the  charge  (if  any)  created  under  an  award  made
under  the  Bombay  Agricultural  Debtors  Relief  Act,  1947  or  any
corresponding  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 6[by the member] on account of the
loan ;

(g) and  in  particular,  notwithstanding  anything  contained  in
7[Chapter  X  of  the  Maharashtra  Land  Revenue  Code,  1966]  the  Record
of  Rights  maintained  thereunder  shall  also  include  the  particulars  of
every  charge  on  land  or  interest  created  under  a  declaration  under
8[and  also  the  particulars  of  extinction  of  such
clause  (a)  or  (b)
charge. ]

1 These words were substituted for the words “ in favour of a mortgage bank or the State
Government in respect of such land or any part thereof,” by Mah. 33 of 1963, s. 10(a)(i).
2 These words were substituted for the words “an Agriculture and Rural Development Bank”

by Mah. 41 of 2005, s. 4 (a).

* See  now  the  Maharashtra  Irrigation  Act,  1976  (Mah.  38  of  1976).
3 These words were substituted for the words “ the Central Financing Agency ” by Mah. 33 of

1963, s. 10 (a)(ii).

4 These words were substituted for the portion begining with “ subject to ” and ending with

“ in respect of its dues,” by Mah. 12 of 1966, s. 2(a).

5 These words were substituted for the words “ Agriculture and Rural Development Bank ” by

Mah. 41 of 2005, s. 4(b).

6 These words were substituted for the words “ by him,” by Mah. 12 of 1966, s. 2 (b).
7 These words and figures were substituted for the words, figures and letter “ Chapter X-A of
the Bombay Land Revenue Code, 1879 or any corresponding law for the time being in force,”
by Mah. 20 of 1986, s. 20(a).

8 These words were added by Mah. 20 of 1986, s. 20(b).

38

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Deductions
from  sale
price  of
certain
agricultural
produce to
meet
society’s
dues.

Explanation.–  For  the  purposes  of  this  section,  the  expression

“  society ”  means––

(i) any  resource  society,  the  majority  of  the  members  of  which  are
agriculturists  and  the  primary  object  of  which  is  to  obtain  credit  for  its
members,  or

(ii) any  society,  or  any  society  of  the  class  of  societies  specified  in  this

behalf  by  the  State  Government,  by  a  general  or  special  order.

1[48A.

(1) 2[Where  a  loan  has  been  advanced  by  any  society  in
accordance  with  the  last  preceding  section  for  the  growing  of  any  agricul-
tural  produce,  or  has  been  advanced  by  any  other  society  which  is 3[a  Co-
operative  Agriculture  and  Rural  Multipurpose  Development  Bank]  for  any
of  the  purposes  enumerated  in  clause  (a)  of  section  111,  and  if  in  either
case  any  agricultural  produce  is  tendered  by  the  person  who  has  taken  any
such  loan]  for  sale  at  a  collection  centre  under  section  30A  of  the
Maharashtra  Agricultural  Produce  Marketing  (Regulation)  Act,  1963,  on
any  day  then  the  price  agreed  to  be  paid  therefor  shall  be  paid  by  the
4[the  societies
purchaser  to  the  tenderer  after  deducting  the  dues  of
mentioned]  aforesaid5 * * * *  and  the  amount  so  deducted  shall  be
paid  to  the  Market  Committee  constituted  under  that  Act  as  provided  in
that  section.  On  making  payment  to  the  tenderer  and  the  Market  Commit-
tee  in  the  manner  provided  in  the  aforementioned  section  30A  the  pur-
chaser  shall  be  discharged  of  his  liability  to  pay  the  price  to  the  tenderer.

6[The  amount  of  the  deduction  on  account  of  loans  advanced  by
societies  shall 7[be  made  at  such  rate  as  may  be  notified  by  the  State
Government  in  this  behalf  by  general  or  special  order,  so,  however,  that
such  rate  shall]  not  in  the  aggregate  exceed  the  following  percentage  of  the
total  amount  to  be  paid  by  the  purchaser  as  the  price,  namely :—

(i) if  the  produce  tendered  for  sale  is  sugarcane .. 100%

(ii) if  the  produce  tendered  for  sale  is 8[cotton]

.. 60%

(iii) in  any  other  case

..

..

.. 40%.]

(2) The  Market  Committee  on  receiving  the  amount  from  the  pur-
chaser  shall  arrange  to  pay 9[to  the  societies  concerned]  the  amount  of
dues  due  from  the  tenderer  within  a  reasonable  time  to  be  prescribed  for
the  purpose.  If  the  Market  Committee  does  not  pay  such  dues  within  8
days  after  the  realisation  of  the  cheque  the  Market  Committee  shall  be
liable  to  pay  interest  on  such  dues 9[to  the  societies  concerned]  at  a
rate  prescribed  in  this  behalf,  such  rate  not  being  in  excess  of  the
maximum  rate  of  interest  fixed  for  unsecured  loans  under  the  Bombay
Money-lenders  Act,  *1946.]

1 This section was inserted by Mah. 2 of 1972, s. 12.
2 This portion was substituted by Mah. 44 of 1973, s. 2(a)(i).
3 These words were substituted for the words “ an Agriculture and Rural Development Bank ”

by Mah. 41 of 2005, s. 5(a).

4 These words were substituted for the words “ the co-operative society mentioned ” by Mah.

44 of 1973, s. 2 (a)(ii).

5 The words “ and to the extent hereinafter stated ” were deleted by Mah. 50 of 1977, s.3(a)(i).
6 This portion was substituted by Mah. 44 of 1973, s. 2(a)(iii).
7 These words were inserted by Mah. 50 of 1977, s. 3(a)(ii).
8 This word was substituted for the word “ kapas ” by Mah. 50 of 1977, s. 3(a)(iii).
9 These  words  were  substituted  for  the  words  “ to  the  society ”  by  Mah.  44  of

1973, s. 2(b).

* Now see the Maharashtra Money Lending (Regulation) Act, 2014.

Mah.
XX of
1964.

Bom.
XXXI of
1947.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

39

1 [(3) Where  any  such  purchaser  is  the  State  Government  or  an  agent
or  officer  appointed  by  that  Government,  or  is  a  processing  factory  notified
by  the  State  Government  in  this  behalf  by  general  or  special  order  or  an
agent  or  officer  appointed  by  such  factory,  the  purchaser  shall  pay  the
price  to  the  tenderer  after  deducting  the  dues  of  the  societies  mentioned
aforesaid  and  pay  the  amount  so  deducted  on  behalf  of  the  tenderer  to  the
concerned  societies  direct :

Provided  that,  where  loans  have  been  taken  by  the  tenderer  from
more  than  one  society,  the  purchaser  may,  keeping  in  view  the  extent  of
the  dues,  on  account  of  financing  of  crop  or  seasonal  finance  or  finance  for
other  agricultural  purposes,  repayable  during  a  period  of  not  less  than
eighteen  months  and  not  more  than  five  years,  and  the  extent  of  the  dues
of  any 2[Co-operative  Agriculture  and  Rural  Multi-purpose  Development
Bank], and subject to such directions (if any) as may be issued by the State
Government  from  time  to  time,  determine  the  proportion  in  which  the
amount  of  deduction  made  shall  be  apportioned  between  the  different
lending  societies.]

3[Explanation.—For  the  purposes  of  this  section,  “ purchaser ”  shall
include  any  person  who  pays  the  purchase  price  of  any  agricultural
produce  tendered  for  sale,  or  by  whom  payment  of  such  price  is  made,
whether  on his  own  account  or as  an  agent or  on  behalf  of another  person.]

49.

4[(1) A  member  of  a  society  may  execute  an  agreement  in  favour
of  the  society,  providing  that  his  employer  shall  be  competent  to  deduct
from  the  salary  or  wages  payable  to  him  by  the  employer,  such  total
amount  payable  to  the  society  and  in  such  instalments  as  may  be  specified
in  the  agreement,  and  to  pay  to  the  society  the  amounts  so  deducted  in
satisfaction of any debt or other demand of the society against the member.
A  copy  of  such  agreement  duly  attested  by  an  officer  of  the  society  shall  be
forwarded  by  the  society  to  the  employer.]

Deduction
from  salary
to  meet
society’s
claim  in
certain  cases.

(2) 5[On  receipt  of  a  copy  of  such  agreement],  the  employer  shall,  if  so
required by the  society by a requisition in  writing and so long  as the 6[total
amount  shown  in  the  copy  of  the  agreement  as  payable  to  the  society  has
been  deducted  and  paid  to  the  society,]  make  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  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,

IV  of
1936.

1 Sub-section (3) was added by Mah. 44 of 1973, s. 2(c).
2 These words were substituted for the words “ Agriculture and Rural Development Bank ” by

Mah. 41 of 2005, s. 5(b).

3 This Explanation was added by Mah. 50 of 1977, s. 3(b).
4 Sub-section (1) was substitued by Mah. 20 of 1986, s. 21(a).
5 These words were substituted for the words “ On the execution of such agreement ” by Mah.

20 of 1986, s. 21 (b)(i).

6 These words were substituted for the words “ society does not intimate that the whole of

such debt or demand has been paid,” by Mah. 20 of 1986, s.21(b)(ii).

40

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

or  makes  default  in  remitting  the  amount  deducted  to  the  society,  the
employer  shall  be  personally  liable  for  the 1[payment  of  such  amount  or
where  the  employer  has  made  deductions  but  the  amount  so  deducted  is
not  remitted  to  the  society,  then  such  amount  together  with  interest
thereon  at  one  and  half  times  the  rate  of  interest  charged  by  the  society
to the member for the period commencing on the date on which the amount
was  due  to  be  paid  to  the  society  and  ending  on  the  date  of  actually
remitting  it  to  the  society ;  and  such  amount  together  with  the  interest
thereon,  if  any,  shall,  on  a  certificate  issued  by  the  Registrar,  be  recover-
able  from  him  as  an  arrear  of  land  revenue,  and  the  amount  and  interest
so  due  shall  rank  in  priority  in  respect  of  such  liability  of  the  employer  as
wages  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 and
oilfields.

CHAPTER  V.

STATE AID TO SOCIETIES

Direct
partnership
of  State
Government
in  societies.

Indirect
partnership
of  State
Government
in  societies.

Principal
State
Partnership
Fund.

50. The  State  Government  may  subscribe  directly  to  the  share
capital  of  a  society  with  limited  liability,  upon  such  terms  and  conditions
as  may  be  agreed  upon :

2[Provided  that,  in  the  case  of  the  co-operative  credit  structure  entity,
the  State  Government  shall  not  hold  more  than  25%  of  the  total  share
capital  and  the  entity  shall  have  option  to  further  reduce  the  share  capital
contributed  by  the  Government.]

51. The  State  Government  may,  under  appropriation  made  by  law,
provide  moneys  to  a  society  for  the  purchase  directly  or  indirectly,  of
shares  in  other  societies  with  limited  liability.  (A  society  to  which  money
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 (hereinafter
in  this  Chapter  referred  to  as  a  “ Central  society ”)  to  purchase  share
in  other  societies  with  limited  liability  (the  latter  societies  being
hereinafter  in  this  Chapter  referred  to  as  “ Primary  societies ”) ;

1 This portion was substituted for the portion begining with the words “payment thereof ” and

ending with the words “ wages in arrears ” by Mah. 20 of 1986, s.21(c).

2 This proviso was added by Mah. 11 of 2008, s. 10.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

41

(c) making  payments  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  moneys  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

Subsidiary
State
Partnership
Fund.

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  Partnership  Fund,  or
a  Central  Society  from  the  Subsidiary  State  Partnership  Fund,  as  the
case  may  be ;

the  liability  in  respect  of  such  share  shall,  in  the  event  of  the  society
of  which  the  shares  are  purchased 1[being  wound  up],  be  limited  to  the
amount  paid  in  respect  of  such  shares.

56. An  Apex  society  which  has  purchased  shares  in  other  societies
from  the  moneys  in  the  Principal  State  Partnership  Fund,  and  a  Central
society  which  has  purchased  shares  in  Primary  societies  from  the  moneys
in  the  Subsidiary  State  Partnership  Fund,  shall  be  entitled  only  to  such
dividend  on  the  said  shares  as  is  declared  by  the  society  concerned  and
is  payable  to  other  shareholders  of  that  society.

Approval  of
State
Government
for purchase
of  shares.

Liability  to
be  limited  in
respect  of
certain
shares.

Restriction  on
amount  of
dividend.

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.

Indemnity  of
Apex  and
Central
societies.

(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  moneys
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.

(1) 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  dividends
or  otherwise,  shall  be  credited  to  that  Fund.

Disposal  of
share  capital
and dividend,
etc.

1 These words were substituted for the words “ is wound up ” by Mah. 33 of 1963, s. 11.

H 4112—7

42

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(2) All  moneys  received  by  a  Central  society  in  respect  of  shares  of
Primary  societies  purchased  from  the  moneys  in  the  Subsidiary  State
Partnership  Fund  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-sections  (1)  and  (2)
shall, notwithstanding that the share stand in the name of the Apex society
or  the  Central  society,  as  the  case  may  be,  be  paid  to  the  State
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  moneys  under  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  form  the  Principal  State  Partnership  Fund  for  the
purpose  specified  in  clause  (b)  of  sub-section  (2)  of  section  52.

Disposal  of
Principal  or
Subsidiary
State
Partnership
Fund on
winding up of
Apex  or
Central
society.

Principal  or
Subsidiary
State
Partnership
Fund  not  to
form  part  of
assets.

Agreement  by
State
Government
and  Apex
societies.

Other  forms
of  State  aid
to  societies.

62. Notwithstanding  anything  contained  in  any  law  for  the  time
being  in  force,  but  subject  to  such  conditions  as  the  State  Government
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

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

43

share  capital  of  a  society  to  its  members,  or  the  payment  of  dividends
thereon  at  such  rates  as  may  be  specified  by  the  State  Government ;

(c) guarantee  the  repayment  of  loans  given  by  a  Co-operative

Bank  to  a  society ;

(d) guarantee  the  repayment  of  the  Principal  of,  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 1[,  including  a  co-operative  credit  structure
entity].

63. The  provisions  of  sections  51  to  61  (both  inclusive)  in  this
Chapter  shall  have  effect  notwithstanding  anything  inconsistent  therewith
contained  in  any  other  law  for  the  time  being  in  force.

Provisions  of
this  Chapter
to override
other  laws.

CHAPTER  VI

PROPERTY AND FUNDS OF SOCIETIES

64. No  part  of  the  funds,  other  than 2[the  dividend  equalisation  or
bonus  equalisation  funds  as  may  be  prescribed  or]  the  net  profits  of  a
society,  shall  be  paid  by  way  of  bonus  or  dividend,  or  otherwise  distributed
among  its  members :

Funds  not  to
be  divided.

Provided  that,  a  member  may  be  paid  remuneration  on  such  scale
as  may  be  laid  down  by  the  by-laws,  for  any  services  rendered  by  him
to  the  society.

65.

3[(1) A  society  shall  construct  its  relevant  annual  financial
statements  and  arrive  at  its  consequent  net  profit  or  loss  in  the  manner
prescribed.]

6[Ascertainment
and
appropriation
of  profits.]

(2) A  society  may  appropriate 4[its  net  profits]  to  the  reserve  fund
or  any  other  fund,  to  payment  of  dividents  to  members  on  their  shares,
5*           *          *
the
payment  of  bonus  on  the  basis  of  support  received  from  members  and
persons  who  are  not  members  to  its  business,  to  payment  of  honoraria,
and  towards  any  other  purpose  which  may  be  specified  in  the  rules  or
by-laws :

to 

*

*

*

*

*

*

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  by-laws.

1 These words were inserted by Mah. 16 of 2013, s. 20.
2 These words were inserted by Mah. 33 of 1963, s. 12
3 Sub-section (1) was substituted by Mah. 20 of 1986, s. 22(a).
4 These words were substituted for the words “ its profits ” by Mah. 33 of 1963, s. 13(b).
5 The portion beginning with the words “ to the contribution ” and ending with the words “ by

the State Government ” was deleted by Mah. 27 of 1969, s. 10(b).

6

 This marginal note was substituted by Mah. 20 of 1986, s. 22(b).

H 4112—7a

44

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Reserve
Fund.

66.

(1) Every  society  which  does,  or  can,  derive  a  profit  from  its

transactions,  shall  maintain  a  reserve  fund.

(2) 1[Every  society  shall  carry  at  least  one-fourth  of  the  net  profits
each  year  to  the  reserve  fund ;]  and 2[such  reserve  fund  may,  subject  to
the rules made  in this behalf, if any,  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  State  Government,  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 :

3[Provided  that,  the  Registrar  may,  having  regard  to  the  financial
position  of  any  society  or  class  of  societies,  fix  the  contribution  to  be  made
to  the  reserve  fund  under  this  sub-section  at  a  lower  rate,  but  not  lower
than    one-tenth  of  the  net  profits  of  the  society  or  societies  concerned.]

Restrictions
on dividend.

4[67. No  society  shall  pay  dividend  to  its  members  at  a  rate
exceeding 5[15  per  cent.  except  with  the  prior  sanction  of  the  Registrar :]]

6[Provided  that,  the  primary  agricultural  credit  co-operative  society
shall  pay  dividend  to  its  members  as  per  the  guidelines  issued  by  the
Registrar,  in  accordance  with  criteria  specified  by  the  National  Bank.]

Contribution
to  education
fund  of  the
State  federal
society.

7[68.

(1) 8[Every  society  not  being  co-operative  credit  structure
entity  shall  contribute  annually  towards  the  education  fund  of  the  State
federal  society  which  may  be  notified  in  this  behalf  by  the  State
Government  at  such  rate  as  may  be  prescribed,  and  different  rates  may
be  prescribed  for  different  societies  or  classes  of  societies  depending  on
their  financial  condition.

9*

*

*

*

*

*

*                        *

(2) Every  society  shall  pay  its  contribution  to  the  said  fund, 10[within
three  months  after  the  close  of  the  co-operative  year.]  Any  officer  wilfully
failing  to  comply  with  the  requirement  of  this  section,  shall  be  personally
liable  for  making  good  the  amount  to  the  federal  society  notified  as
aforesaid.]

1 These words were substituted for the portion beginning with the words “ In the case of ” and

ending with the words “ to  the reserve fund ” by Mah. 33 of 1963, s. 14(a).

2 These words were substituted for the words “ such reserve fund may be used ” by Mah. 3 of

1974, s. 10.

3 This proviso was added by Mah. 33 of 1963, s. 14(b).
4 Section 67 was substituted by Mah. 20 of 1986, s. 23.
5 These figures and words were substituted for the figures and words “ 12 per cent. except

with the previous sanction of the State Government ” by Mah. 13 of 1994, s. 4.

6 This proviso was added by Mah. 11 of 2008, s. 11.
7

 Section 68 was substituted for the original by Mah. 27 of 1969, s. 11.

8 These words were substituted for the words “Every society” by Mah. 27 of 1969, s. 12.
9 The proviso was deleted by Mah. 3 of 1974, s. 11.
10 These words were substituted for the words “ within two months from the date on which its

accounts are adopted by the general body of members ” by Mah. 20 of 1986, s. 24(a).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

45

1[(3) Where  any  society  fails  to  pay  the  contribution  within  the  period
specified  in  sub-section  (2),  the  amount  of  contribution  due  shall  be
recoverable  as  an  arrear  of  land  revenue  and  on  the  State  federal  society
making  a  report  of  such  failure  to  the  Registrar,  the  Registrar  shall,  after
making  such  inquiry  as  he  deems  fit,  grant  a  certificate  for  recovery  of
the  amount  due  as  an  arrear  of  land  revenue.]

Mah.
XVI  of
2013.

2[(4) With  effect  from  the  date  of  commencement  of  the  Maharashtra
Co-operative  Societies  (Amendment)  Act,  2013,  the  provisions  of  sub-
sections  (1)  to  (3)  shall  cease  to  be  in  force.

Mah.
XVI  of
2013.

(5) Notwithstanding anything contained in sub-section (4), any amount
due  on  the  date  of  commencement  of  the  Maharashtra  Co-operative
Societies  (Amendment)  Act,  2013,  shall  be  recoverable  as  an  arrear  of  land
revenue  and  upon  the  request  of  the  State  federal  society,  the  Registrar
shall,  after  making  such  inquiry  as  he  deems  fit,  grant  a  certificate  for
recovery  of  the  amount  due  as  an  arrear  of  land  revenue.]]

69. After  providing  for  the  reserve  fund  as  provided  in  section  66,
and  for  the 3[funds  towards  co-operative  education  and  training  as
provided  in  section  24A],  a  society  may  set  aside  a  sum  not  exceeding
twenty  per  cent.  of  its  net  profits,  and  utilise,  with  the  approval  of  such
federal  society  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  to  any  charitable  purpose  within  the  meaning  of
section  2  of  the  Charitable  Endowments  Act,  1890,  or  to  any  other  public
purpose.

VI  of
1890.

4[69A.

*

*

*

*

*

5[69B. The  State  Government  shall  constitute  District  Level
Committees  and  the  State  Level  Committee,  from  time  to  time,  as  it  shall
deem  fit,  for  solving  the  problems  of  Group  Secretaries  in  the  State.]

II  of
1882.

6[70.

7[A  society]  shall  invest  or  deposit  its  funds  in  one  or  more

of  the  following :—

8[(a) in  a  District  Central  Co-operative  Bank  or  the  State  Co-
operative  Bank,  having  awarded  at  least  “A”  Audit  Class  in  last  three
consecutive  years ;]

(b) in  any  of  the  securities  specified  in  section  20  of  the  Indian

Trusts  Act,  1882;

(c) in  the  shares,  or  security  bonds,  or  debentures,  issued  by  any
other  society  with  limited  liability  and  having  the  same  classification
to  which  it  belongs ;

9[(d) in  any  other  mode  permitted  by  the  rules,  or  by  general  or

special  order  in  that  behalf  by  the  State  Government :]

1 This sub-section was added by Mah. 20 of 1986, s. 24(b).
2 Sub sections (4) and (5) were inserted by Mah. 16 of 2013, s. 21.
3 These words, figures and letter were substituted for the words and figures “the educational

fund as provided in section 68” by Mah. 16 of 2013, s. 22.

4 Section 69A was deleted by Mah. 16 of 2013, s. 23.
5 Section 69B was inserted by Mah. 11 of 2008, s. 14.
6 Section 70 was substituted by Mah. 11 of 2008, s. 15.
7 These  words were  substituted for  the words  “Every  Society other  than the  co-operative

credit structure entity” by Mah. 16 of 2013, s. 24(a).
8 Clause (a) was substituted by Mah. 16 of 2013, s. 24(b).
9 Clause (d) was inserted by Mah. 16 of 2013, s. 24(c).

Contribution
to  public
purposes.

Constitution
of  District
Level  and
State  Level
Committees.

Investment  of
funds.

46

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

XIX  of
1952.

Employees’
Provident
Fund.

Funds  not  to
be  utilised
for certain
proceedings
filed  or  taken
by  or  against
officers  in
personal
capacities.

Provided  that,  no  society  shall  invest  more  than  such  proportion  of

it’s  paid  up  share  capital  as  may  be  prescribed :

Provided  further  that,  the  co-operative  credit  structure  entity  shall
invest  its  funds  subject  to  guidelines  as  may  be  issued,  from  time  to  time,
by  the  Reserve  Bank  of  India.]

71.

(1) Any  society  may  establish  for  its  employees  a  provident  fund,
into  which  shall  be  paid  the  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  sub-section,
a  provident  fund  established  by  a  society  to  which  the  Employees’
Provident  Funds  Act,  1952  is  applicable  shall  be  governed  by  that  Act.

1[71A.

2[(1)] No  expenditure  from  the  funds  of  a  society  shall  be
incurred  for  the  purpose  of  defraying  the  costs  of  any  proceedings  filed
or  taken  by  or  against  any  officer  of  the  society  in  his  personal  capacity
3[under  section  78,  78A  or  96].  If  any  question  arises  whether  any
expenditure  can  be  so  incurred  or  not,  such  question  shall  be  referred
to  and  decided  by  the  Registrar,  and  his  decision  shall  be  final.

2[(2) If  any  person  incurs  expenditure  in  violation  of  sub-section  (1),
the  Registrar  shall  direct  the  person  to  repay  the  amount  to  the  society
within  one  month  and  where  such  person  fails  to  repay  the  amount  as
directed,  such  amount  shall,  on  a  certificate  issued  by  the  Registrar,  be
recoverable  as  arrears  of  land  revenue.

(3) The  person  against  whom  action  is  taken  by  the  Registrar  under
sub-section  (2)  shall  be  disqualified  to  continue  to  be  the  officer  of  any
society  or  to  be  officer  of  any  society  at  any  next  election  including  any
next  bye-election  held  immediately  after  the  expiration  of  a  period  of  one
month  during  which  such  person  has  failed  to  pay  the  amount  referred
to  in  sub-section  (2).]]

CHAPTER  VII

MANAGEMENT OF SOCIETIES

Final
authority  of
society.

72. Subject  to  the  provisions  in  this  Act  and  the  rules,  the  final
authority  of  every  society  shall  vest  in  the  general  body  of  members  in
general  meeting,  summoned  in  such  a  manner  as  may  be  specified  in  the
bye-laws.

4[Where  the  bye-laws  of  a  society  so  provide,  the  general  meeting
shall  be  attended  by  delegates  appointed  by  the  members,  and  such
meeting    shall  be  deemed  to  be  the  meeting  of  the  general  body,  for  the
purpose  of  exercising  all  the  powers  of  the  general  body.]

1 Section 71A was inserted by Mah. 3 of 1974, s. 12.
2 Section 71A was renumbered as sub-section (1) of that section and sub-sections (2)  and (3)

were added by Mah. 20 of 1986, s. 26.

3 These words, figures and letter were substituted for the words, figures and letter “under

sections 78, 96 or 144-T” by Mah. 16 of 2013, s. 25.

4 This portion was added by Mah. 3 of 1974, s. 13.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

47

1[72A. Notwithstanding  anything  contained  in  this  Act  or  any  other
law  for  the  time  being  in  force,  the  co-operative  credit  structure  entity
shall  have  the  liberty  for  the  affiliation  or  disaffiliation  with  the  federal
structure  of  its  choice :

Provided  that,  in  the  general  meeting  of  the  co-operative  credit
structure  entity,  a  resolution  for  this  purpose  is  passed  by  a  majority  of
not  less  than  3/4th  of  the  total  members  of  such  entity.]

Freedom  of
affiliation  or
disaffiliation
with  a
federal
structure of
choice.

73.

2[(1)] The  management  of  every  society  shall  vest  in  a  committee,
constituted  in  accordance  with  this  Act,  the  rules  and  bye-laws,  which
shall  exercise  such  powers  and  perform  such  duties  as  may  be  conferred
or  imposed  respectively  by  this  Act,  the  rules  and  the  bye-laws.

Committee,
its  powers
and
functions.

3[(1AB) The  members  of  the  committee  shall  be  jointly  and  severally
responsible  for  all  the  decisions  taken  by  the  committee  during  its  term
relating  to  the  business  of  the  society.  The  members  of  the  committee
shall  be  jointly  and  severally  responsible  for  all  the  acts  and  omissions
detrimental  to  the  interest  of  the  society :

4*

*

*

*

*

Provided  that,  before  fixing  any  responsibility  mentioned  above,  the
Registrar  shall  inspect  the  records  of  the  society  and  decide  as  to  whether
the  losses  incurred  by  the  society  are  on  account  of  acts  or  omissions
on  the  part  of  the  members  of  the  committee  or  on  account  of  any  natural
calamities,  accident  or  any  circumstances  beyond  the  control  of  such
members :

Provided  further  that,  any  member  of  the  committee,  who  does  not
agree  with  any  of  the  resolution  or  decision  of  the  committee,  may  express
his  dissenting  opinion  which  shall  be  recorded  in  the  proceedings  of  the
meeting  and  such  member  shall  not  be  held  responsible  for  the  decision
embodied  in  the  said  resolution  or  such  acts  or  omissions  committed  by
the  committee  of  that  society  as  per  the  said  resolution.  Such  dissenting
member,  if  he  so  desires,  may  also  communicate  in  writing  his  dissenting
note  to  the  Registrar 5[within  fifeen  days,  from  the  date  of  the  said
resolution  or  decision  or  from  the  date  of  confirmation  of  the  said
resolution  or  decision].  Any  member,  who  is  not  present  for  the  meeting
in  which  the  business  of  the  society  is  transacted,  and  who  has  not
subsequently  confirmed  the  proceeding  of  that  meeting,  such  member  shall
also  not  be  held  responsible  for  any  of  the  business  transacted  in  that
meeting  of  the  society.]

6[(1A) Notwithstanding  anything  contained  in  this  Act,  the  rules  made

thereunder  or  in  the  bye-laws  of  any  society  or  class  of  societies,—

(a) the  first  general  meeting  of  a  society  shall  be  convened  within
three  months  from  the  date  of  its  registration  to  appoint  a  provisional

1 Section 72A was inserted by Mah. 11 of 2008, s. 16.
2 Section 73 was renumbered as sub-section (1) by Mah. 20 of 1986, s. 27.
3 Sub-section (1AB) was inserted by Mah. 41 of 2000, s. 3.
4 The portion beginning with the words “Every such member” and ending with the words “of

the committee” was deleted by Mah. 16 of 2013, s. 26(a).

5 These words were substituted for the words “within seven days from the date of the said

resolution or decision” by Mah. 16 of 2013, s. 26(b).
6 Sub-section (1A) was inserted by Mah. 13 of 1994, s. 5.

48

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

committee  and  to  transact  other  business  as  may  be  prescribed.  The
term  of  the  members  of  such  provisional  committee  shall  be  for  a
period  of  one  year  from  the  date  on  which  it  has  been  first  appointed
or  till  the  date  on  which  a  regular  committee  is  duly  constituted  in
accordance  with  the  provisions  of  the  rules  or  bye-laws  made  under
this  Act,  whichever  is  earlier ;  and all  the  members  of  such  provisional
committee  shall  vacate  office  on  the  date  of  expiry  of  such  period
or  such  constitution  of  the  committee ;

(b) notwithstanding anything contained in clause (a), the  provisional
committees  for  the  Co-operative  Sugar  Factories  and  Co-operative
Spinning  Mills  and  such  other  class  of  society,  as  the  State  Government
may,  by  special  or  general  order,  in  the Official  Gazette,  specify  in  this
behalf,  shall  be  appointed  by  the  State  Government ;  and  the  members
thereof  shall  hold  office  for  a  period  of  three  years, which  period  may
be  extended  by  one  year,  at  a  time,  so  however  that,  the  total  period  shall
not  exceed  five  years,  in  the  aggregate  :

Provided  that,  the  State  Government  shall  have  the  power  to
change  or  reconstitute  such  committee  or,  any  or  all  members  thereof
at  its  discretion  even  before  the  expiry  of  the  period  for  which  a  member
or  members  were  nominated  thereon :

Provided  further  that,  the  member  or  members  assuming  office  on
such  change  or  re-constitution  of  the  committee  shall  hold  office  for
the  period  for  which  the  provisional  committee  has  been  appointed
under  this  clause ;

(c) pending  the  first  constitution  of  the  committee  of  a  society,  the
provisional  committee  of  the  society  shall  exercise  the  powers  and
perform  the  duties  of  the  committee  of  such  society  as  provided  in  this
Act,  the  rules  and  bye-laws  and  make  necessary  arrangements  for
holding  election  of  the  committee,  before  the  expiry  of  its  term.]

1*

2*

*

*

*

*

*

*

*

*

Motion of  no
confidence
against
officers  of
societies.

3[73-ID.

4[(1)  An  officer  who  holds  office  by  virtue  of  his  election
to  that  office  shall  cease  to  be  such  officer,  if  a  motion  of  no-confidence
is  passed  at  a  meeting  of  the  committee  by  two-third  majority  of  the  total
number  of  committee  members  who  are  entitled  to  vote  at  the  election
of  such  officer  and  his  office  shall,  thereupon  be  deemed  to  be  vacant.

(2)  The  requisition  for  such  special  meeting  shall  be  signed  by  not
less  than  one-third  of  the  total  number  of  members  of  the  committee  who
are  entitled  to  elect  the  officer  of  the  committee  and  shall  be  delivered
to  the  Registrar.  The  requisition  shall  be  made  in  such  form  and  in  such
manner  as  may  be  prescribed :

1 Sub-sections (2) and (3) were deleted by Mah. 16 of 2013, s. 26(b).
2 Sections  73-IA  (which  was  inserted  by  45  of  1983,  s.  3),  73-IB  and  73-IC  (which  were

inserted by Mah. 20 of 1986, s. 28) were deleted by Mah. 16 of 2013, s. 27.

3 Section 73-IB to 73-ID were inserted by Mah. 20 of 1986, s. 28.
4 Sub-sections (1) and (2) were substituted by Mah. 16 of 2013, s. 28.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

49

Provided  that,  no  such  requisition  for  a  special  meeting  shall  be  made
within  a  period  of  six  months  from  the  date  on  which  any  of  the  officers
referred  to  in  sub-section  (1)  has  entered  upon  his  office.]

(3) The  Registrar  shall,  within  seven  days  from  the  date  of  receipt
of  the  requisition  under  sub-section  (2),  convene  a  special  meeting  of  the
committee.  The  meeting  shall  be  held  on  a  date  not  later  than  fifteen
days  from  the  date  of  issue  of  the  notice  of  the  meeting.

(4) The  meeting  shall  be  presided  over  by  the  Registrar  or  such  officer
not  below  the  rank  of  an  Assistant  Registrar  of  Co-operative  Societies
authorised  by  him  in  this  behalf.  The  Registrar  or  such  officer  shall,  when
presiding  over  such  meeting,  have  the  same  powers  as  the  President  or
Chairman  when  presiding  over  a  committee  meeting  has,  but  shall  not
have  the  right  to  vote.

(5) The  meeting  called  under  this  section  shall  not,  for  any  reason,

be  adjourned.

(6) The  names  of  the  committee  members  voting  for  and  against  the
motion  shall  be  read  in  the  meeting  and  recorded  in  the  minute  book
of  committee  meetings.

(7) If  the  motion  of  no-confidence  is  rejected,  no  fresh  motion  of  no-
confidence  shall  be  brought  before  the  committee  within  a  period  of 1[one
year]  from  the  date  of  such  rejection  of  the  motion.]

2 [73A.

(1)  In  this  section  and  in  sections  73C,  73D  and  73E,
‘ a  designated  Officer ’  means  the  Chairman  and  the  President,  and
includes  any  other  Officer  of  the  society  as  may  be  declared  by  the  State
Government,  by  notification  in  the Official  Gazette,  to  be  a  designated
Officer,  but  does  not  include  any  officer  appointed  or  nominated  by  the
State  Government  or  by  the  Registrar.

(2) No  person  shall,  at  the  same  time,  be  or  continue  to  be,  a
designated  officer  of  more  than  one  society  falling  in  Category  I  or
Category  II  or  Category  III  of  the  categories  mentioned  below ;  and  shall
not  be  or  continue  to  be  designated  officer  in  more  than  two  societies
in  the  aggregate  in  the  three  categories :—

Category  I.—Societies,  the  area  of  operation  of  which  does  not

extend  to  the  whole  of  the  State.

5[Category  II.—Societies,  the  area  of  operation  of  which  does  not

extend  to  the  whole  of  the  State,—

(a) but  extends  to  at  least  one  whole  district  irrespective  of  their

authorised  share  capital ;  or

1 These words were substituted for the words “ six months ” by Mah. 7 of 1997, s.6 (c).
2 Sections 73A to 73G were inserted by Mah. 27 of 1969, s. 12.
3 These words were substituted for the word “ specified ” by Mah. 20 of 1986, s.29(f).
4 The words “or for being designated officer of the same society for more than ten years” were

deleted by Mah. 30 of 2007, s. 2 (b).

5 Categories II and III were substituted for the original Categories II and III by Mah. 27 of

1996, s. 2.

H 4112—8

Disqualificat-
ion for being
designated
Officer
simultane-
ously  of
certain
3[categories
of]  societies
4***.

50

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(b) but  extends  to  areas  comprised  in  part  or  parts  in  one  or
more  districts  and  the  authorised  share  capital  of  which  is  more  than
Rs.  10  Lakhs.

Category  III.—Societies,  the  area  of  operation  of  which  does  not
extend  to  one  whole  district  but  extends  at  least  to  one  whole  taluka,
or the authorised share capital of which is not more than Rs. 10 Lakhs
but  is  not  less  than  Rs.  5  Lakhs.]

1[Explanation.—For  the  purposes  of  this  sub-section,  the  expression
“ society ”  shall  not  include  a  society  with  no  share  capital  and  a  society
not  engaged  in  commercial  activities.]

2[(2A)

If  any  question  arises  whether  or  not  a  society  falls  under
any  of  the  categories  referred  to  in  sub-section  (2),  such  question  shall
be  referred  to  and  decided  by  the  Registrar,  and  his  decision  shall  be
final.]

3

*

*

*

*

*

*

*

*

*

4*

(4) If  any  person  becomes,  at  the  same  time,

*   *
a  designated  officer  of  societies  in  excess  of  the  number  prescribed  under
sub-section  (2),  unless  he  resigns  his  office  in  the  society  or  societies  in
excess  of  the  said  number  within  a  period  of 5[ten  days]  from  the  date
on  which  he  is 6[elected,  co-opted  or  nominated]  a  designated  officer  of
more  than  the  permissible  number  of  society  or  societies,  or  if  the
7[elections,  co-options  or  nominations]  are  held  or  made  simultaneously,
from  the  date  on  which  the  result  of  last  of  such  elections  or  appointments
is  declared,  he  shall,  at  the  expiration  of  the  said  period  of 8[ten  days],
9[and  thereupon,
cease  to  be  a  designated  officer  of  all  such  societies,
notwithstanding  anything  contained  in  any  provision  of  this  Act,  a  person
so resigning or ceasing to be a designated officer of any or all such societies
shall  not  be  eligible  for  being 10[re-elected,  re-co-opted  or  re-nominated
as  a  designated  officer  of  such  society  or  societies  during  the  remainder
of  the  term  of  office  for  which  he  was  so  elected  or  appointed;  and  at
no  point  of  time  such  person  shall  be  a  designated  officer  of  societies
in  excess  of  the  number  prescribed  under  sub-section  (2).]

1 This Explanation was inserted by Mah. 20 of 1986, s. 29 (a).
2 Sub-section (2A) was inserted by Mah. 3 of 1974, s. 14.
3 Sub-section (3) was deleted by Mah. 20 of 1986, s. 29 (b).
4 The words “ after the commencement of the said Act ” were deleted by Mah. 20 of 1986,

s. 29 (c).

5 These words were substituted for the words “ ninety days ” by Mah. 10 of 1988, s.11 (a).
6 These words were substituted for the words “elected or appointed” by Mah. 16 of 2013,

s. 29(b)(i).

7 These words were substituted for the words “election or appointments” by Mah. 16 of 2013,

s. 29(b)(ii).

8 These words were substituted for the words “ninety days” by Mah. 10 of 1988, s. 11(a).
9 This portion was inserted by Mah. 10 of 1988, s. 11(b).
10 These words were substituted for the words “re-elected or re-appointed” by Mah. 16 of 2013,

s. 29(b)(iii).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

51

Constitution
of  committee.

1*  *  *
2*  *  *
3[(7) Where  a  person  is  elected,  co-opted  or  nominated  as  a  member
of  committee  of  any  society  by  virtue  of  his  holding  office  under  the
Central  Government  or  the  State  Government  or  in  any  local  authority
or  in  any  body  corporate  or  in  any  organisation,  he  shall  cease  to  be  such
member  on  the  date  on  which  he  ceases  to  hold  such  office.

(8) No  member  of  a  society,  who  is  nominated  to  represent  it  on  any
other  society,  shall  be  eligible  for  being  elected,  co-opted  or  nominated
as  a  designated  officer  of  the  other  society,  unless  the  other  society  is
its  federal  society.

(9) In  the  case  of  such  class  or  classes  of  societies  as  may  be  specified
by  the  State  Government,  by  notification  in  the Official  Gazette,  no
member  shall  be  eligible  for  being  elected,  co-opted  or  nominated  as  a
designated  officer,  if  he  is  not  an  active  member  and  does  not  fulfill  the
minimum  qualification  relating  to  his  monetary  transactions  with  the
society  as  may  be  laid  down,  in  such  notification.]

4[73AAA.

(1) The Committee shall consist of such number of members

as  may  be  provided  in  the  by-laws :

Provided  that,  the  maximum  number  of  members  of  the  committee

shall  not  exceed  twenty-one :

Provided  further  that,  the  provisions  of  the  Banking  Regulation  Act,
1949,  shall  apply  to  all  the  societies  carrying  the  business  of  banking.
(2) The  committee  may  co-opt  “expert  directors”  relating  to  the

10  of
1949.

objects  and  activities  undertaken  by  the  society :

Provided  that,  the  number  of  expert  directors  shall  not  exceed  two,
which  shall  be  in  addition  to  the  maximum  number  of  members  of  the
committee  as  specified  in  the  first  proviso  of  sub-section  (1) :

5[Provided  further  that,  the  Committee  may  nominate  one  person  as

XI of
1947.
Mah. I
of  1972.

a  functional  director  :

Provided  also  that,  in  the  case  of  such  societies  or  class  of  societies,
as  the  State  Government  may  by  general  or  special  order  notify,  where
the  number  of  permanent  salaried  employees  of  the  society  is  twenty-
five  or  more,  the  committee  shall  include,—

(i) where  the  committee  consists  of  not  more  than  eleven
members,  one  representative  of  the  employees  of  the  society  ;  and
(ii) where  the  committee  consists  of  more  that  eleven  members
and  not  more  than  twenty-one  members,  two  representatives  of  the
employees  of  the  society.
Such  representatives  of  the  employees  shall  be  selected  by  the  union
or  unions  recognised  under  the  Maharashtra  Industrial  Relations  Act,  or
the  Maharashtra  Recognition  of  Trade  Unions  and  Prevention  of  Unfair
Labour  Practices  Act,  1971,  from  amongst  the  employees  of  the  society.
Where  there  is  no  such  recognised  union  or  unions  or  where  there  is
no  union  at  all  or  where  there  is  a  dispute  in  relation  to  such  issues
including  whether  a  union  is  recognised  or  not,  then  such  representatives
of  the  employees  shall  be  elected  by  the  employees  of  the  society  from
amongst  themselves  in  the  prescribed  manner.  No  employee  who  is  under
suspension  shall  be  eligible  for  being  selected  or  elected  or  for  being
continued  as  a  member  of  the  committee  under  this  proviso  :

Provided  also  that,  the  representative  of  the  employees  selected  or
elected  as  per  the  provisions  of  the  third  proviso  shall  have  the  right
to  take  part  in  the  meetings  of  the  committee,  but  shall  have  no  right
to  vote  therein:];

6[Provided  also  that,  in  respect  of  the  society  having  contribution  of
the  Government  towards  its  share  capital,  the  committee  shall  also  include

1 Sub-section (5) was deleted by Mah. 30 of 2007, s. 2(9).
2 Sub-section (6) was deleted by Mah. 16 of 2013, s. 29(c).
3 Sub-sections (7), (8) and (9) were inserted by Mah. 16 of 2013, s. 29(d).
4 Section 73AAA was inserted by Mah. 16 of 2013, s. 30.
5 These provisos were substituted for second proviso by Mah. 36 of 2016, s. 3(a).
6 This proviso was substituted for third proviso by Mah. 36 of 2016, s. 3(b).

H 4112—8a

52

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

following  two  members  nominated  by  the  Government,  namely  :—

(i) one  Government  Officer  not  below  the  rank  of  the  Assistant

Registrar  of  Co-operative  Societies,  and

(ii) one  person  having  such  requisite  experience  relating  to  the
work  of  the  society  and  such  qualifications,  as  may  be  specified  by
the  Government,  by  an  order  published  in  the Official  Gazette:]
1*  *  *
Provided also that, the functional directors and the members nominated
by  the  State  Government  under  the  third  proviso  of  a  society  shall  also
be  the  members  of  the  committee  and  such  members  shall  be  excluded
for  the  purposes  of  counting  the  total  number  of  members  of  the  committee
specified  in  the  first  proviso  to  sub-section  (1)  :

Provided  also  that,  such  expert  directos  shall  not  have  the  right  to
vote  at  any  election  of  the  society  and  shall  not  be  eligible  to  be  elected
as  office  bearers  of  the  committee.

(3) The  term  of  the  office  of  the  elected  members  of  the  committee
and  its  office  bearers  shall  be  five  years  from  the  date  of  election  and
the  term  of  the  office  bearers  shall  be  co-terminus  with  the  term  of  the
committee.

(4) Any casual vacancy in the committee may be filled in from amongst
the  members  belonging  to  the  same  category  of  persons  in  respect  of  which
a  casual  vacancy  has  arisen.

(5) (a) If,  at  any  general  election  of  members  of  the  committee,  the
committee  could  not  be  constituted  after  declaration  of  results,  then
notwithstanding  anything  contained  in  this  Act  or  the  rules  or  the
by-laws  of  the  society,  the  returning  officer  or  any  other  officer  or
authority  conducting  such  election  shall,  within  seven  days  of  the
declaration  of  two-thirds  or  more  number  of  members,  forward  their
names  together  with  their  permanent  addresses  to  the  Registrar,  who
shall,  within  fifteen  days  from  the  date  of  reeipt  thereof  by  him,  publish
or  cause  to  be  published  such  names  and  addresses  by  affixing  a  notice
on  the  Notice  Board  or  at  any  prominent  place  in  his  office ;  and  upon
such  publication  the  committee  of  the  society  shall  be  deemed  to  be  duly
constituted.  In  determining  two-thirds  of  the  number  of  members,  fraction
shall  be  ignored :

Provided  that,  such  publication  shall  not  be  deemed,—

(i) to  preclude  the  completion  of  elections  of  the  remaining
members  and  the  publication  of  their  names  and  the  permanent
addresses  of  the  elected  members  likewise  as  and  when  they  are
available ;  or

(ii) to  affect  the  term  of  the  office  of  members  of  the  committee

under  the  Act ;
(b) the  names  of  the  remaining  members  after  they  are  elected
(together  with  their  permanent  addresses),  may  also  thereafter  be  likewise
published  by  the  Registrar.]
    *
(1) Notwithstanding  anything  contained  in  this  Act  or  in  the
rules  made  thereunder  or  in  any  bye-laws  of  any  society,  on  the  committee
of  such  society  or  class  of  societies  as  the  State  Government  may,  by
general  or  special  order,  direct,

4[5[three  seats]  shall  be  reserved,—

2*     *
3[73-B.

(a) one  for  the  members  belonging  to  the  Scheduled  Castes  or

Scheduled  Tribes ;

6* *

7[Reservation
of  certain
seats  on
committees  of
societies  and
election
thereto].

1 Forth proviso was deleted by Mah. 36 of 2016, s. 3(c).
2 Section 73-AA and 73-AB were deleted by Mah. 16 of 2013, s. 31.
3 Section 73-B was substituted for the original by Mah. 45 of 1983, s. 5.
4 This word was substituted for the word “two”, by Mah. 6 of 2002, s. 2(a)(i), w.e.f. 23rd April

2001.

5 These words were substituted for the words “four seats” by Mah. 16 of 2013, s. 32(a)(i).
6 The word “and” was deleted, by Mah. 6 of 2002, s. 2(a)(ii), w.e.f. 23rd April 2001.
7 Marginal note was substituted by Mah. 6 of 2002, s. 32(f).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

53

1[ (a-1) one for the members belonging to the Other Backward

Classes ;

2[and]

(a-2) one  for  the  members  belonging  to  the  De-notified
Tribes  (Vimukta  Jatis),  Nomadic  Tribes  or  Special  Backward
Classes ;]

3*  *

4*  *

5*  *

(3) Any  individual  member  of  the  society,  or  any  elected  member  of
the  committee  of  a  member-society,  or  any  member  of  the  committee  of
a  member-society,  whether  elected,  co-opted  or  appointed  under  this
section,  belonging  to  the  Scheduled  Castes  or  Scheduled  Tribes 6[or  Other
Backward  Classes  or  De-notified  Tribes  (Vimukta  Jatis)  or  Nomadic  Tribes
or  Special  Backward  Classes,] 7*  *  shall  be  eligible  to  contest  the  election
to  a  reserved  seat  and  every  person  who  is  entitled  to  vote  at  the  election
to  the  committee  shall  be  entitled  to  vote  at  the  election  to  any  such
reserved  seat.

8[(4) Where  no  person  is  elected  to  any  of  the  three  reserved  seats,
then  such  seat  or  seats  shall  be  filled  in  by  nomination  from  amongst
the  persons  entitled  to  contest  the  election  under  sub-section  (3)] ;

Explanation.—For  the  purposes  of  this  section,—

(a) a  general  or  special  order,  if  any,  issued  by  the  State
Government  under  section  73-B  as  it  existed  before  the  date  of
commencement  of  the  Maharashtra  Co-operative  Societies
(Amendment)  Act,  1983  shall  be  deemed  to  have  been  issued  under
sub-section  (1)  of  this  section  and  shall  continue  to  be  in  force  until
duly  repealed  or  amended ;

Mah.
XLV  of
1983.

(b) the  expression  “ Scheduled  Castes ”  includes  “ Nav-Boudhas ”

9*

*

*

*

*

*

*

*

*

10[(b-1)  the  expression  “Other  Backward  Classes,  De-notified
Tribes (Vimukta  Jatis)  and  Nomadic  Tribes  and  Special  Backward
Classes ”  means  such  classes  or  parts  of  or  groups  within  such
classes as are declared, from time to time, by the State Government
to  be  Other  Backward  Classes,  De-notified  Tribes  (Vimukta  Jatis)
and  Nomadic  Tribes  and  Special  Backward  Classes ;]

1 The clauses (a-1) and (a-2) were inserted by  Mah. 6 of 2002, s. 2(a)(ii), w.e.f. 23rd April 2001.
2 This word was added by Mah. 16 of 2013, s. 32(a)(ii).
3 The word “and” was deleted by Mah. 16 of 2013, s. 32(a)(iii).
4 Clause (b) was deleted by Mah. 16 of 2013, s. 32(a)(iv).
5 Sub-section (2) was deleted by Mah. 16 of 2013, s. 32(b).
6 These words were inserted by Mah. 6 of 2002, s. 2(c) w.e.f. 23rd April 2001.
7 The words “or as case may be, weaker section,” were deleted by Mah. 16 of 2013, s. 32(c).
8 Sub-section (4) was substituted by Mah. 16 of 2013, s. 32(d).
9 The words “ and the expression “ Scheduled Tribes ” includes “ Denotified Tribes and Nomadic

Tribes ” were deleted by Mah. 6 of 2002, s. 2 (e)(i), w.e.f. 23rd April 2001.
10 Clause (b-1) was inserted by Mah. 6 of 2002, s.2(e), w.e.f. 23rd April 2001.

54

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Reservation
for women.

6[Dis-
qualification
of  committee
and  its
members.]

1*

2*

    *    *]

    *    *

3[73C.

(1) Notwithstanding  anything  contained  in  this  Act,  or  in  the
rules  made  thereunder,  or  in  the  by-laws  of  any  society,  there  shall  be
two  seats  reserved  for  women  on  the  committee  of  each  society  consisting
of individuals as members and having members from such class or category
of  persons,  to  represent  the  women  members.

(2) Any  individual  woman  member  of  the  society,  or  any  woman
member  of  the  committee  of  a  member-society,  whether  elected,  co-opted
or  nominated,  shall  be  eligible  to  contest  the  election  to  the  seat  reserved
under  sub-section  (1).

(3) Where  no woman  member  or, as  the case  may  be, women  members
are  elected  to  such  reserved  seats,  then  such  seat  or  seats  shall  be  filled
in  by  nomination  from  amongst  the  women  members  eligible  to  contest
the  election  under  sub-section  (2).

(4) Nothing  in  this  section  shall  apply  to  a  committee  of  a  society

exclusively  of  women  members.]

4[73-CA].

5[(A-1) In  the  case  of  a  society,  which  gives  loans  to
members  for  purchasing  machinery,  implements,  equipments,  commodities
or  other  goods,  or  which  deals  in  such  goods,  no  member,  who  or  whose
member of the family is a dealer in such goods or is a director of a company
or  a  partner  in  a  firm  carrying  on  business  in  such  goods,  in  the  area
of  operation  of  the  society  shall  be  eligible  for  being  elected  or  nominated
as  a  member  of  the  committee  of  such  society.

Explaination.—For  the  purposes  of  this  sub-section,  the  expression
“family”  shall  have  the  same  meaning  as  explained  in  the Explanation I,
to  sub-section  (2)  of  section  75.]

(1) Without  prejudice  to  the  other  provisions  of  this  Act  or  the  rules
made  thereunder  in  relation  to  the  disqualification  of  being  a  member
of  a  committee,  no  person  shall  be  eligible  for  being  appointed,  nominated,
elected,  co-opted  or,  for  being  a  member  of  a  committee,  if  he—

(i) is  a  defaulter  of  any  society ;

Explanation.—For  the  purposes  of  this  clause,  the  term  “ defaulter ”

includes—

(a)   in  the  case  of  a  primary  agricultural  credit  society,  a  member

who  defaults  the  repayment  of  the  crop  loan  on  the  due  date  ;

(b) in  the  case  of  term  lending  society,  a  member  who  defaults

the  payment  of  any  instalment  of  the  loan  granted  to  him  ;

(c) in  the  case  of  any  society,—

(i) a  member  who  has  taken anamat  or  advance;  or

1 Clause (c) was deleted by Mah. 16 of 2013, s. 32(e).
2 Section 73-BB and 73-BBB were deleted by Mah. 16 of 2013, s. 33.
3 Section 73C was substituted by Mah. 16 of 2013, s.34.
4 Section 73-FF was re-numbered as section 73CA by Mah. 16 of 2013, s. 36.
5 Sub-section (A1) was inserted by Mah. 16 of 2013, s. 36(a).
6 The marginal note was substituted by Mah. 16 of 2013, s. 36(d).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

55

(ii) a  member  who  has  purchased  any  goods  or  commodities
on  credit  or    availed  himself  of  any  services  from  the  society
for  which  charges  are  payable;  and  fails  to  repay  the  full  amount
of  such anamat or  advance  or  pay  the  price  of  such  goods  or
commodities  or  charges  for  such  service,  after  receipt  of  notice
of  demand  by  him  from  the  concerned  society  or  within  thirty
days  from  the  date  of  withdrawal  of anamat  or  advance  by  him
or  from  the  date  of  delivery  of  goods  to  him  or  availing  of  services
by  him,  whichever  is  earlier  ;

(d) in  the  case  of  non-agricultural  credit  societies,  a  member  who

defaults  the  payment  of  any  instalment  of  the  loan  granted ;

(e) in  the  case  of  housing  societies,  a  member  who  defaults  the
payment  of  dues  to  the  society  within  three  months  from  the  date
of  service  of  notice  in  writing  served  by  post  under  certificate  of
posting  demanding  the  payment  of  dues ;

1[(f) in  the  case  of  District  Central  Co-operative  Bank  or  of  the

State  Co-operative  Bank,  a  member,  if  he,—

(i) is  a  person  who  represents  a  society  other  than  a  primary
agricultural  credit  co-operative  society  on  the  board  of  a  District
Central  Co-operative  Bank  or  the  State  Co-operative  Bank,  if  the
society  to  whom  he  represents  has  committed  a  default  towards
the  payments  of  such  Bank  for  a  period  exceeding  ninety  days ;

(ii) is  a  person  who  is  a  defaulter  of  a  primary  agricultural
credit  co-operative  society  or  is  an  office  bearer  of  a  defaulting
primary  agricultural  co-operative  credit  society ;

(iii) is  a  person  who  represents  a  society  whose  Managing

Committee  is  superseded.]

(ii) has,  in  the  opinion  of  the  Registrar,  deliberately  committed
breach  of  co-operative  discipline  with  reference  to  linking  up  of  credit
with  co-operative  marketing  or  co-operative  processing ;  or

2[(ii-a) has  been  classified  as  non-active  member  under  sub-

section  (2)  of  section  26 ;  or]

(iii) has  been  held  responsible  under  section  79  or  88  or  has  been
held  responsible  for  payment  of  costs  of  inquiry  under  section  85 ;
or

(iv) has  incurred  any  disqualification  under  this  Act  or  the  rules

made  thereunder ;  or

3[(v) carries  on  business  of  the  kind  carried  on  by  the  society
either  in  the  area  of  operation  of  the  society  or  in  contravention  of
the  provisions  of 4[clause  (b)  of  sub-section  (A1)  ;  or]]

5*

*

*

*

*

*

1 Paragraph (f) was inserted by Mah. 16 of 2013, s. 36(b)(i).
2 Clause (ii-a) was inserted, by Mah. 16 of 2013, s. 36(b)(ii).
3 Clause (v) was substituted by Mah. 31 of 2007, s. 3.
4 These words, bracketes, letters and figures were substituted by the words, brackets, letters

and figures “sub-section (2) of section 73F” by Mah. 16 of 2013, s. 36(b)(iii)(A).

5 These Explanation was deleted by Mah. 16 of 2013, s. 36(b)(iii)(B).

56

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(vi) is  a  salaried  employee  of  any  society  (other  than  a  society
of  employees  themselves)  or  holds  any  office  of  profit  under  any
society,  except  when  he  holds  or  is  appointed  to  the  office  of  a
Managing Director or any other office declared by the State Government
by  general  or  special  order  not  to  disqualify  its  holder  or  is  entitled
to  be 1[or  is  nominated  as  functional  director  on  the  committee  of
a  society  under  sub-section  (2)  of  section 2[73AAA] ] ;

3[(vii) has  more  than  two  children :

Provided  that,  a  person  having  more  than  two  children  on  the  date
of  commemcement  of  the Maharashtra  Co-operative  Societies  (Second
Amendment)  Act,  2001  (hereinafter  in  this  clause  referred    to  as  “ the
date  of  such  commencement ”),  shall  not  be  disqualified  under  this  clause
so long as the number of children he had on the date of such commencement
does  not  increase :

Provided  further  that,  a  child  or  more  than  one  child  born  in  a  single
delivery within the period of one year from the date of such commencement
shall  not  be  taken  into  consideration  for  the  purpose  of  disqualification
mentioned  in  this  clause.

Mah.
XXXIX
of  2001.

Explanation.—For  the  purposes  of  this  clause,—

(a) where  a  couple  has  only  one  child  on  or  after  the  date
of  such  commencement,  any  number  of  children  born  out  of  a
single  subsequent  delivery  shall  be  deemed  to  be  one  entity ;
(b) “ child ”  does  not  include  an  adopted  child  or  children.]
4[(viii) is  held  guilty  for  any  offence  under  section  146  and

convicted  under  section  147 ;  or
(ix) is  convicted  with  imprisonment  of  not  less  than  one  year  for
an  offence  under  the  provisions  of  any  law  for  the  time  being  in  force.]
(2) A  member  who  has  incurred  any  disqualification  under  sub-section
(1),  shall  cease  to  be  a  member  of  the  committee  and  his  seat  shall
thereupon  be  deemed  to  be  vacant.

5[(3) A  member  of  a  committee  who  has  ceased  to  be  a  member
thereof,  on  account  of  having  incurred  disqualification  under  sub-section
(A1)  and  clauses  (i)  to  (ix)  of  sub-section  (1)  shall  not  be  eligible  to  be
re-elected,  re-co-opted  or  re-nominated  as  a  member  of  the  committee  till
the  expiry  of  the  period  of  next  term  of  five  years  of  the  committee  from
the  date  on  which  he  has  so  ceased  to  be  a  member  of  the  committee.
6[(3A) In  case  of  an  insured  Co-operative  Bank,  if  an  order  for
supersession  of  its  Committee,  as  per  the  requisition  of  the  Reserve  Bank
of  India,  is  made  under  section  110A,  at  any  time  within  the  period  of
ten  years  before  the  date  of  commencement  of  the  Maharashtra  Co-
operative  Societies  (Amendment)  Act,  2016  or  at  any  time  after  such
commencement,  then  no  member  of  such  Committee  shall  be  eligible  for
being  re-appointed,  re-nominated,  re-elected  or  re-co-opted  on  the
Committee  of  such  bank  or,  for  being  a  member,  or  for  being  appointed,
nominated,  elected  or  co-opted,  as  a  member  of  Committee  of  such  bank
or  any  other  bank,  for  a  period  of  two  terms  of  the  Committee  from  the
date  of  order  of  supersession  of  the  Committee.]

1 These words, brackets, figures and letter were substituted for the words, letters and figures
“or is selected or elected to any reserved seat on the committee of a society under section
73BB” by Mah. 16 of 2013, s. 36(b)(iv).

2 These figures and letters was substituted for figures and letter “73A” by Mah. 36 of 2016, s. 4.
3 Clause (vii) was added by Mah. 34 of 2001, s. 6.
4 Clauses (viii) and (ix) were added by Mah. 16 of 2013, s. 36(b)(v).
5 Sub-sections (3) and (4) were added by Mah. 16 of 2013, s. 36(c).
6 Sub-sections (3A) was inserted by Mah. 34 of 2016, s. 2.

Mah.
XXXIV
of  2016.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

57

(4) A  member  of  a  committee  who  has  ceased  to  be  a  member  thereof,
on  account  of  having  incurred  any  disqualification  other  than
disqualifications,  referred  to  in  sub-section  (3)  shall,  unless  otherwise
specifically  provided  in  this  Act,  be  eligible  to  be  re-nominated,  re-co-opted
or re-elected as  a member of the  committee as soon as  such disqualification
ceases  to  exist.]

State
Co-operative
Election
Authority.

1

[73CB.

(1) The  superintendence,  direction  and  control  of  the
preparation  of  the  electoral  rolls  for,  and  the  conduct  of,  all  elections  to  a
society  shall  vest  in  the  authority  called  as  ‘the  State  Co-operative  Election
Authority’,  as  may  be  constituted  by  the  State  Government  in  that  behalf.
Every  general  election  of  the  members  of  the  committee  and  election  of  the
office-bearers  of  a  society  including  any  casual  vacancy,  to  the  extent
applicable,  shall  be  held  as  per  the  procedure  prescribed.

(2) The  State  Co-operative  Election  Authority  shall  consist  of  a  State
Co-operative  Election  Commissioner,  who  has  held  the  post  not  below  the
rank of Secretary to the State Government. The State Co-operative Election
Commissioner  shall  be  appointed  by  the  Governor.  The  State  Co-operative
Election  Commissioner  shall  hold  the  office  for  a  period  of  three  years  and
he  may  be  re-appointed  for  a  further  period  of  two  years.  The  office  of  the
State  Co-operative  Election  Authority  shall  be  at  such  place  as  may  be
notified  by  the  State  Government :

Provided  that,  a  person  appointed  as  the  State  Co-operative  Election
Commissioner  shall  retire  from  the  office  on  completion  of  the  age  of  sixty-
five  years.

(3) The  State  Government  shall  appoint  on  deputation,  any  person
holding  a  post  not  below  the  rank  of  Additional  Registrar,  as  a  Secretary
to  the  State  Co-operative  Election  Authority.

(4) Subject  to  the  provisions  of  sub-section  (2),  other  conditions  of
service,  including  the  salary  and  allowances,  of  the  State  Co-operative
Election  Commissioner  shall  be  such  as  may  be  prescribed.  Subject  to  the
provisions  of  sub-section  (6),  the  State  Co-operative  Election  Commissioner
shall  be  removed  from  his  office  only  by  an  order  of  the  Governor  on  the
ground  of  proved  misbehaviour  or  incapacity  after  an  inquiry  ordered  by
the  Governor  and  conducted  by  a  retired  Judge  of  the  High  Court,  who  has
on  inquiry,  reported  that  the  State  Co-operative  Election  Commissioner
ought  to  be  removed  on  such  ground.

(5) The  Governor  may  suspend  the  State  Co-operative  Election
Commissioner  from  his  office,  and  if  deemed  necessary,  also  prohibit  him
from  attending  the  office  during  inquiry,  if  an  inquiry  has  been  ordered
under  sub-section  (4)  until  the  Governor  has  passed  the  orders  on  receipt
of  the  report  of  the  retired  High  Court  Judge.

(6) Notwithstanding  anything  contained  in  sub-section  ( 5),  the
Governor  may,  by  order,  remove  the  State  Co-operative  Election
Commissioner  from  his  office,  if  he,—

(a) is  adjudged  an  insolvent;  or

(b) has  been,  convicted  of  an  offence  which,  in  the  opinion  of  the

Governor  involves  moral  turpitude  ;  or

(c) has  engaged  during  his  term  of  office  in  any  paid  employment

outside  the  duties  of  his  office;  or

(d) is,  in  the  opinion  of  the  Governor,  unfit  to  continue  in  office  by

reason  of  infirmity  of  mind  or  body;  or

1 Section 73CB was inserted by Mah. 16 of 2013, s. 37.

H 4112—9

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[1961 : Mah. XXIV

(e) has  acquired  such  financial  or  other  interest  as  is  likely  to  affect
prejudicially  his  functions  as  the  State  Co-operative  Election
Commissioner.

(7) The  State  Government,  after  consultation  with  the  State
Co-operative  Election  Commissioner,  shall  provide  the  officers  and
employees  for  his  office,  to  assist  him  in  performing  his  functions  under
this  Act.

(8) The  State  Government  shall,  when  so  requested  by  the  State  Co-
operative  Election  Commissioner  make  available  to  the  State
Co-operative Election Authority such staff as may be necessary for discharge
of  the  functions  conferred  on  the  State  Co-operative  Election  Authority  by
sub-section  (1).

(9) (a) If  any  person  to  whom  sub-section  (8)  applies  is,  without
reasonable  cause,  guilty  of  any  act  or  omission  in  discharge  of  his  official
duty,  he  shall,  on  conviction,  be  punished  with  fine  which  may  extend  to
five  hundred  rupees.

(b) No suit or other legal proceedings shall lie against any such person

for  damages  in  respect  of  any  such  act  or  omission  as  aforesaid.

Explanation.—For  the  purposes  of  this  sub-section,  the  expression
“persons  to  whom  sub-section  (8)  applies”  are  the  Returning  Officers,
Assistant  Returning  Officers,  Presiding  Officers,  Polling  Officers  and  any
other  persons  appointed  to  perform  any  duty  in  connection  with  the
receipt  of  nominations  or  withdrawal  of  candidatures,  or  the  recording  or
counting  of  votes  at  an  election ;  and  the  expression  “official  duty”  shall  be
construed  accordingly,  but  shall  not  include  duties  imposed  otherwise  than
by  or  under  this  Act.

(10) Notwithstanding anything contained in any law for the time being
in  force,  the  election  of  the  committee  of  each  society  shall  be  conducted
by  the  State  Co-operative  Election  Authority  before  the  expiry  of  the  term
of  the  existing  committee  so  as  to  ensure  that  the  newly  elected  members
of  the  committee  assume  office  immediately  on  the  expiry  of  the  office  of
the  members  of  the  outgoing  committee.

(11) The  State  Co-operative  Election  Authority  shall  hold  the  elections
of  the  society  or  class  of  societies  as  per  the  procedure,  guidelines  and  the
manner,  including  using  the  latest  technology  and  expertise,  as  may  be
prescribed :

Provided  that,  the  State  Government  may,  considering  the  objects  of
the  society,  class  of  societies,  area  of  operation  and  norms  of  business  and
for  proper management  and  interest of  members, may  by  general or  special
order,  classify  the  societies  in  such  manner  as  may  be  prescribed.

(12) The  State  Co-operative  Election  Authority  shall  conduct  elections
to  the  committee  and  also  to  office  of  President  or  Chairperson,  Vice-
President or Vice-Chairperson  and such other office bearers  as are required
to  be  elected  as  per  the  by-laws  of  the  society,  within  fifteen  days  from  the
constitution  of  the  committee  after  a  general  election.

(13) There  shall  be  an  Election  Fund  maintained  at  level  of  the  State
Co-operative  Election  Authority.  Every  society  shall  deposit  in  advance,
the  estimated  amount  of  expenditure  on  its  election,  as  may  be  prescribed

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

59

and  required  by  the  State  Co-operative  Election  Authority  towards  the
Election  Fund.  The  State  Co-operative  Election  Authority  shall  incur  the
necessary  expenses,  for  the  conduct  of  the  elections  of  the  societies,
including the election of the office bearers, from the said fund. The expenses
of  the  holding  of  any  election,  including  the  payment  of  travelling
allowances,  daily  allowances  and  remuneration,  if  any,  to  the  persons
appointed  to  exercise  the  powers  and  perform  the  duties  in  respect  of  the
election,  shall  be  incurred  from  the  said  fund  and  the  expenditure  shall  be
made  in  the  manner  prescribed.  The  Registrar, on  requisition  by  the  State
Co-operative  Election  Authority,  shall  recover  expenses  of  holding  election
from  any  such  society  or  class  of  societies :

Provided  that,  if  any  society  fails  to  pay  the  election  expenses,  the
Registrar  may  issue  the  recovery  certificate  for  recovery  of  the  amount  due
and  such  amount  shall  he  recovered  as  arrears  of  land  revenue.

(14) The  committee  of  every  co-operative  society  shall,—

(a) inform the State Co-operative Election Authority about the expiry
of  its  term  of  office  at-least  six  months  before  the  date  of  expiry  of  such
term ;

(b) inform any casual vacancy occurred in the committee or its office

bearers,  within  fifteen  days  of  the  occurrence  of  such  vacancy ;

(c) furnish  such  books,  records  and  information  as  the  State
Co-operative Election Authority may require as per the calendar specified
by  the  State  Co-operative  Election  Authority ;

(d)  provide  all  necessary  help,  assistance  and  co-operation  for  the

smooth  preparation  of  electoral  rolls  for  the  conduct  of  elections.

(15) Notwithstanding  anything  contained  in  this  Act,  the  rules  or  the
by-laws  of  any  co-operative  society,  the  election  to  the  committee  and
consequent  election  of  the  office-bearers  which  is  due  on  the  date  of
commencement  of  the  Maharashtra  Co-operative  Societies  (Amendment)
Act,  2013,  or  may  become  due  after  such  date,  until  31st  March  2013  shall
be  held 1[before  the  30th  June  2015]]

Mah.
XVI  of
2013.

2[73CC. Where  due  to  scarcity,  drought,  flood,  fire  or  any  other
natural  calamity  or  rainy  season  or  any  election  programme,  of  the  State
Legislative Assembly or Council or House of the People or a local authority,
coinciding  with  the  election  programme  of  any  society  or  class  of  societies,
in  the  opinion  of  the  State  Government,  it  is  not  in  the  public  interest  to
hold  elections  to  any  society  or  class  of  societies,  the  State  Government
may,  notwithstanding  anything  contained  in  this  Act  or  the  rules,  or  bye-
laws  made  thereunder,  or  any  other  law  for  the  time  being  in  force,  for
reasons  to  be  recorded  in  writing,  by  general  or  special  order,  postpone  the
election  of  any  society  or  class  of  societies,  for  a  period  not  exceeding  six
months  at  a  time,  which  period  may  further  be  extended  so,  however,  that,
the  total  period  shall  not  exceed  one  year  in  the  aggregate.]

Power of
State
Government
to  postpone
election.

1 These words, figures and letters were substituted for the words, figures and letters “before

the 31st December 2014” by Mah. 40 of 2014, s. 2.
2 Section 73CC was inserted by Mah. 24 of 2015, s. 2.

H 4112—9a

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Society’s
nominee on
other  society
not  eligible  to
be  designated
officer, except
in  a  federal
society.

Election  to
more  than
one  seat  on
the
committee  of
society.

73D. No member of a society who is nominated to represent it on any
other society, shall be eligible for being elected or appointed as a designated
officer  of  the  other  society,  unless  the  other  society  is  its  federal  society.

1
*    *

2
[73F.

If  a  person  is  elected  to  more  than  one  seat  on  the  committee
then,  unless  within  a  period  of  thirty  days  from  the  date  of  declaration  of
the  result  of  the  election  he  resigns  all  but  one  of  the  seats  by  writing
under  his  hand  addressed  to  the  Election  Officer,  or  as  the  case  may  be,
the  officer  authorised  by  the  State  Co-operative  Election  Authority  in  this
regard,  all  the  seats  shall  become  vacant.  On  receipt  of  such  resignation  or
on  the  seats  becoming  so  vacant,  the  Election  Officer,  or  as  the  case  may
be,  the  officer  authorised  by  the  State  Co-operative  Election  Authority  in
this  regard  shall  cause  to  hold  the  election  for  filling  the  vacancy.]

* *

* *

3
*    *

4
*    *

5*

*

Respon-
sibility    of
committee  or
the  Adminis-
trators  or
authorised
officer  to
intimate  and
assist  to
arrange for
election,
before expiry
of  term.

6[73I.

(1) As  provided  under  sub-section  (14)  of  section  73CB,  it  shall
be  the  duty  of  the  committee  to  intimate  to  the  State  Co-operative  Election
Authority,  for  holding  of  its  election,  before  expiry  of  its  term.

(2) Where  there  is  a  wilful  failure  on  the  part  of  the  committee  to
intimate  to  the  State  Co-operative  Election  Authority  as  required  under
sub-section  (1)  for  holding  of  its  election,  and  for  any  reason  whatsoever,
election  of  the  members  of  the  committee  could  not  be  held  before  the
expiry  of  its  term  then  the  members  thereof  shall  cease  to  hold  their  office
and  in  such  a  situation  the  Registrar  shall  take  action  as  contemplated
under  section  77A.

(3) On  taking  such  action  under  sub-section  (2),  the  authorised  officer
so  appointed  shall  intimate  to  the  State  Co-operative  Election  Authority
for  holding  of  the  election  with  immediate  effect  and  assist  to  make
necessary  arrangement  for  holding  such  election  within  the  period
specified.]

1 Sections 73E and 73EA were deleted by Mah. 16 of 2013, s. 35.
2 Section 73F was substituted by Mah. 16 of 2013, s. 38.
3 Section FF was renumbered as section 73 CA by Mah. 16 of 2013, s. 36.
4 Sections 73-FFF and 73-G were deleted by Mah. 16 of 2013, s. 39.
5 Section 73H was deleted by Mah. 16 of 2013, s. 40.
6 Section 73I was inserted by Mah. 16 of 2013, s. 41.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

61

1[74.

(1) The  qualifications  for  appointment  of  the  Chief  Excutive
Officer,  Finance  Officer,  Manager,  Secretary,  Accountant  or  any  other
officer  of  a  society  or  a  class  of  societies  and  his  emoluments  and
perquisites  shall  be  such  as  may  be  determined  by  the  Registrar,  from
time  to  time.

(2) In  the  society  or  class  of  societies,  as  the  State  Government  may,
from  time  to  time,  notify  in  the Official  Gazette,  there  shall  be  a  Chief
Executive  Officer  and  a  Finance  Officer,  who  shall  be  appointed  by  the
society  from  a  panel  of  persons  selected  by  a  body  of  such  persons  not
exceeding  five  as  may  be  prescribed :

2[Provided  that,  the  qualification  for  appointment  of  the  Chief
Executive  Officer  of  the  District  Central  Co-operative  Bank  and  the  State
Co-operative  Bank  shall  be  such  as  may  be  prescribed  by  the  Reserve
Bank  of  India,  from  time  to  time.]

(3) The  Chief  Executive  Officer  so  appointed  shall  be ex-officio
member  of  the  committee  but  he  shall  have  no  right  to  vote  at  the  meeting
of  the  committee].

Qualification
and  appoint-
ment  of
Manager,
Secretary  and
other officers
of  societies
and  of  Chief
Executive
Officer and
financial
Officer for
certain
societies.

75.

(1) Every  society  shall,  within  a  period  of 3[four  months  after
the  close  of  the  financial  year,  get  its  books  of  accounts  audited  and  within
six  months  after  the  close  of  financial  year  to  transact  its  business  as
may  be  provided  in  this  Act,  call  the  annual  general  body  meeting  of  its
members].

5[Annual
general body
meeting.]

4*

*

[6[Provided  that,  where  such  meeting  is  not  called  by  the  society,  the
Registrar  or  any  officer  authorised  by  him  may  call  such  meeting  in  the
manner  prescribed  and  that  meeting  shall  be  deemed  to  be  a  general  body
meeting  duly  called  by  the  society,]  and  the  Registrar  may  order  that  the
expenditure  incurred  in  calling  such  a  meeting  shall  be  paid  out  of  the
funds  of  the  society  or  by  such  person  or  persons  who,  in  the  opinion
of  the  Registrar,  were  responsible  for  the  refusal  or  failure  to  convene
the  general  meeting.

7[(2) At  every  annual  general  body  meeting  of  a  society,  the  committee

shall  lay  before  the  society,—

(i) a  statement  showing  the  details  of  the  loans,  if  any,  given
to  any  of  the  members  of  the  committee  or  any  member  of  the  family
of  any  committee  member,  including  a  society  or  firm  or  company
of  which  such  member  or  members  of  his  family  is  a  member,  partner
or  director,  as  the  case  may  be ;  the  details  of  repayment  of  loan  made
during  the  preceding  year  and  the  amount  outstanding  and  overdue
at  the  end  of  that  year ;

1 Section 74 was substituted by Mah. 20 of 1986, s. 37.
2 This proviso was added by Mah. 11 of 2008, s. 20.
3 These words were substituted for the words “three months next after the date fixed for
making up its accounts for the year under the rules for the time being in force, call a general
meeting of its members” by Mah. 16 of 2013, s. 42(a)(i).
4 This proviso was deleted by Mah. 16 of 2013, s. 42(a)(ii).
5 The marginal note was substituted by Mah. 16 of 2013, s. 42(f).
6 This portion was substituted for the portion beginning with the words “Provided further
that” and ending with words “duly called by the society,” by Mah. 16 of 2013, s. 42(a)(iii).

7 Sub-section (2) was substituted by Mah. 16 of 2013, s. 42(b).

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[1961 : Mah. XXIV

(ii) annual  report  of  its  activities ;

(iii) plan  for  disposal  of  surplus ;

(iv) list  of  amendments  of  the  by-laws  of  the  society,  if  any ;

(v) declaration  regarding  date  and  conduct  of  its  election  of  its

committee,  when  due ;

(vi) audit  report  of  the  preceding  financial  year ;

(vii) rectification  report  of  earlier  audit ;

(viii) annual  budget  for  next  year ;

(ix) any  other  information  required  by  the  Registrar  in  pursuance

of  any  of  the  provisions  of  the  Act  and  rules ;  and

(x) such  other  business,  will  be  transacted  as  may  be  laid  down

in  the  by-laws  and  of  which  due  notice  has  been  given.

Explanation  I.—For  the  purposes  of  this  sub-section,  the  expression
“family”  means  a  wife,  husband,  father,  mother,  brother,  sister,  son,
daughter,  son-in-law  or  daughter-in-law ;

Explanation  II.—In  the  case  of  a  society  not  carrying  on  business
for  profit,  an  audited  income  and  expenditure  account  shall  be  placed
before  the  society  at  the  annual  general  body  meeting  instead  of  audited
profit  and  loss  account,  and  all  reference  to  audited  profit  and  loss
account,  and  to  “profit”  or  “loss”  in  this  Act,  shall  be  construed  in
relation  to  such  society  as  references  respectively  to  the  “excess  of
income  over  expendityure”,  and  “excess  of  expenditure  over  income”.]

1[(2A) Every  society  shall,  appoint  an  auditor  or  auditing  firm  from
a  panel  approved  by  the  State  Government  in  this  behalf  in  its  annual
general  body  meeting  having  such  minimum  qualifications  and  experience
as  laid  down  in  section  81,  for  the  current  financial  year  and  shall  also
file  in  the  form  of  return  to  the  Registrar,  the  name  of  the  auditor
appointed  and  his  written  consent  for  auditing  the  accounts  of  the  society
within  a  period  of  thirty  days  from  the  date  of  the  annual  general  body
meeting :

Provided  that,  the  same  auditor  shall  not  be  appointed  for  more  than
three  consecutive  years  by  the  annual  general  body  meeting  of  the  same
society.]

(3) There  shall  be  attached  to  every  balance  sheet  laid  before  the
society  in  general  meeting,  a  report  by  its  committee,  with  respect  to  (a)
the  state  of  the  society’s  affairs ;  (b)  the  amounts,  if  any,  which  it  proposes
to  carry to  any  reserve either  in  such  balance sheet,  or  any specific  balance
sheet;  and  (c)  the  amounts,  if  any,  which  it  recommends,  should  be  paid
by  way  of  dividend,  bonus,  or  honoraria  to  honorary  workers.  The
committee’s  report  shall  also  deal  with  any  changes,  which  have  occurred
during  the  year  for  which  the  accounts  made  up,  in  the  nature  of  the
society’s  business.  The  commitee’s  report  shall  be  signed  by  its  chairman,
or  any  other  member  authorised  to  sign  on  behalf  of  the  committee.

1 Sub-section (2A) was inserted by Mah. 16 of 2013, s. 42(c).

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Maharashtra Co-operative Societies Act, 1960

63

1[(4) At  every  annual  general  body  meeting  the  audited  balance  sheet,
the  audited  profit  and  loss  account,  audit  report  of  the  preceding  financial
year  submitted  by  the  auditor  appointed  under  section  81,  rectification
report  of  earlier  audit  and  the  committee’s  report  shall  be  placed  for
adoption  and  such  other  business  will  be  transacted  as  may  be  laid  down
in  the  by-laws,  and  of  which  due  notice  has  been  given.]

(5) If  default  is  made,  in  calling  a 2[general  body  meeting  within  the
period]  prescribed  under  sub-section  (1),  or  in  complying 3[with  sub-section
(2),  (2A),]  (3)  or  (4),  the  Registrar  may  by  order  declare  any  officer  or
member  of  the  committee  whose  duty  it  was  to  call  such  a  meeting  or
comply 3[with  sub-section  (2),  (2A),]  (3)  or  (4),  and  who  without  reasonable
excuse  failed  to  comply  with  any  of  the  aforesaid  sub-sections  disqualified
for  being  elected  and  for  being  an  officer  or  member  of  the  committee
for  such  period 4[not  exceeding  five  years],  as  he  may  specify  in  such  an
order  and,  if  the  officer  is  a  servant  of  the  society,  impose  a  penalty  on
him  to 5[pay]  an  amount  not  exceeding 6[five  thoudand  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.

2  of
1974.

(6) Any  penalty  imposed  under  sub-section  (5)  or  under 7[section  76],
may  be  recovered  in  the  manner  provided  by  the 8[Code  of  Criminal
Procedure,  1973],  for  the  recovery  of  fines  imposed  by  a  Magistrate,  as
if  such  fine  was  imposed  by  the  Magistrate  himself.

76. (1) A 9[special  general  body  meeting]  may  be  called  at  any  time
by  the  Chairman  or  by  a  majority  of  the  committee  and  shall  be  called
within  one  month—

10[Special
general body
meeting.]

(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  by-
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  committee  of  such  federal  society.

1 Sub-section (4) was substituted by Mah. 16 of 2013, s. 42(d).
2 These words were substituted for the words “general meeting within the period or, as the

case may be, extended period” by Mah. 16 of 2013, s. 42(e)(i).

3 These  words,  brackets,  figures  and  letter  were  substituted  for  the  words,  brackets  and

figure “sub-section (2)” by Mah. 16 of 2013, s. 42(e)(ii).

4 These words were substituted for the words “not exceeding three years” by Mah. 16 of 2013,

s. 42(e)(iii).

5 This word was inserted by Mah. 33 of 1963, s. 16(a).
6 These words were substituted for the words “one hundred rupees”, by Mah. 16 of 2013, s.

42(e)(iv).

7. This  was  substituted  for  the  words  “the  next  suceeding  section”  by  Mah.  20  of  1986,

s. 38(b)(i).

8 These  words  and  figures  were  substituted  for  the  words  and  figures  “Code  of  Criminal

Procedure, 1898” by Mah. 20 of 1986, s. 38(b)(ii).

9 These words were substituted for the words “special general meeting”, by Mah. 16 of 2013,

s. 43(a).

10 The marginal note was substituted by Mah. 16 of 2013, s. 43(d).

64

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(2) Where  any  officer  or  a  member  of  the  committee,  whose  duty  it
was  to  call  such  meeting,  without  resonable  excuse,  fails  to  call  such
meeting,  the  Registrar  may  by  order  declare  such  officer  or  member
disqualified  for  being  a  member  of  the  committee  for  such  period 1[not
exceeding  five  years],  as  he  may  specify  in  such  order ;  and  if  the  officer
is  a  servant  of  the  society,  he  may  impose  on  him  a  penalty  not  exceeding
2[five  thousand  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-section  (1),  the  Registrar  or  any
person  authorised  by  him  in  this  behalf,  shall  have  power  to  call  such
meeting,  and  that  meeting  shall  be  deemed  to  be  a  meeting  duly  called
by  the  committee.

(4) The  Registrar  shall  have  power  to  order  that  the  expenditure
incurred  in  calling  a  meeting  under  sub-section  (3) shall  be  paid  out  of
the  funds  of  the  society  or  by  such  person  or  persons  who,  in  the  opinion
of  the  Registrar,  were  responsible  for  the  refusal  or  failure  to  convene
the  meeting.

Acts  of
societies  etc.,
not  to  be
invalidated
by  certain
defects.

77.

(1) No  act  of  a  society  or  a  committee  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  organisation  of  the  society,  or  in  the  constitution  of  the  committee,
or  in  the  appointment  or  election  of  an  officer,  or  on  the  ground  that
such  officer  was  disqualified  for  his  office.

5[Appointment
of  member  of
committee,  new
committee  or
authorised
officers, where
there  is  failure
to  elect
member,  to
constitute
committee  or
where
committee  does
not enter upon
office, etc.]

(2) No  act  done  in  good  faith  by  any  person  appointed  under  this
Act,  the  rules  and  the  by-laws  shall  be  invalid  merely  by  reason  of  the
fact  that  his  appointment  has  been  cancelled  by  or  in  consequence  of  any
order  subsequently  passed  under  this  Act,  rules  and  the  by-laws.

(3) The  Registrar  shall  decide  whether  any  act  was  done  in  good  faith
in  pursuance  of  the  business  of  the  society ;  and  his  decision  thereon  shall
be  final.

3[77A.

(1) Where  the  Registrar  is  satisfied  that,—

4[(1-a) a  provisional  committee  has  failed  to  make  necessary
arrangements  for  holding  election  for  the  constitution  of  the  first
committee,  before  the  expiry  of  its  term  as  specified  in  sub-section
(1A) of  section  73 ;]

(a) at  the  first  constitution  of  the  committee  of  any  society  there
is  a  failure  to  elect  all  or  any  of  the  members  of  the  committee ;

1 These words were substituted for the words “not exceeding three years” by Mah. 16 of 2013,

s. 43(b)(i).

2 These  words were  substituted  for the  words “one  hundred  rupees” by  Mah.  16 of  2013,

s. 43(b)(ii).

3 Section 77A was inserted by Mah. 36 of 1975, s. 5.
4 Clause (1-a) was inserted by Mah. 13 of 1994, s. 6.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

65

(b) the  term 1* *  of  the  committee  of  any  society  or  of  any  of
its  members  has  expired  or  for  any  other  reason  election  is  held  and
there  is  a  failure  to  elect  all  or  any  of  the  members  required  to  fill
the  vacancies ;

2[(b-1) there  is  a  stalemate  in  the  constitution  or  committee  has

ceased  to  function  and  vacuum  is  created  in  the  management ;]

(c) any  committee  is  prevented  from  entering  upon  office ;

(d) a  new  committee  has  failed  to  enter  upon  office  on  the  date
on  which  the  term  of  office  of  the  existing  committee  expired ;  or

3*

*

*

*

    *

4[(f) where  more  than  one  group  of  persons  in  a  society  is
claiming  to  be  elected  as  the  committee  members  and  proceedings
in  respect  thereof  have  been  filed  in  the  Co-operatives  Court ;]

The  Registrar  may,  either suo-motu  or 5[  on  the  application  of  any

officer  or  member  of  the  society],  by  order  appoint—

(i) any  member  or  members  of  the  society  to  be  the  member

or  members  of  the  committee  to  fill  the  vacancies ;

(ii) a  committee,  consisting  of  not  more  than  three  members  of
the  society,  or 6[one  or  more  authorised  officers],  who  need  not  be
members  of  the  society,  to  manage  the  affairs  of  the  society  till  a
new  committee  enters  upon  office :

Provided  that,  before  making  such  order,  the  Registrar  shall  publish
a  notice  on  the  notice  board  at  the  head  office  of  the  society,  inviting
objections  and  suggestions  with  respect  to  the  proposed  order  within  a
period  specified  in  the  notice  and  consider  all  objections  and  suggestions
received  by  him  within  that  period :

Provided  further  that,  it  shall  not  be  necessary  to  publish  such  notice
in  any  case  where  Registrar  is  satisfied  that  immediate  action  is  required
to  be  taken  or  that  it  is  not  reasonably  practical  to  publish  such  notice:

7[Provided  also  that,  if  no  member  or  members  of  the  society  are
willing  to  work  on  such  committee,  it  shall  be  lawful  for  the  Registrar,
to  appoint  one  or  more  authorised  officers,  not  being  a  member  of  the
society,  as  he  may  deem  fit,  to  look  after  affairs  of  the  society.]

1 The  words  “or  extended  term,  as  the  case  may  be,”  were  deleted  by  Mah.  16  of  2013,

s. 44(a).

2 Class (b-1) was inserted by Mah. 16 of 2013, s. 44(b).

3 Class (e) was deleted by Mah. 34 of 2001, s. 7.

4 Clasue (f) was inserted by Mah. 20 of 1986, s. 39(a)(ii).

5 These words were substituted for the words “on the application of any officer of the society”,

by Mah. 16 of 2013, s. 44(c)(i).

6 These words were substituted for the words “one or more administrators” by Mah. 16 of

2013, s. 44(c)(ii).

7 This proviso was added by Mah. 16 of 2013, s. 44(d).

H 4112—10

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(2) The  Committee  or 1[authorised  officer]  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  discharge  all  or  any  of  the  functions
of  the  committee  or  of  any  officer  of  the  society,  and  take  all  such  action
as  may  be  required  to  be  taken  in  the  interests  of  the  society.

2[(3) The  Committee  or 3[authorised  officer]  so  appointed  shall  hold
office for a period of six months from the date of assuming the management
of  the  society  and  shall  make  necessary  arrangements  for  constituting  a
new  committee  within  the  said  period  and  for  enabling  the  new  committee
including  any  new  committee  referred  to  in  clause  (f)  of  sub-section  (1),
which  is  determined  by  the  Court  to  have  been  legally  elected,  to  enter
upon  office :]

4*

*

5[Provided  that,  in  no  circumstances  the  term  of  office  of  the
committee  or  authorised  officer  shall  exceed  six  months  from  the  date
of  their  holding  office.]

6[(4) The  Registrar  shall  have  the  power  to  change  the  committee  or
any  or  all  members  thereof  or  any  or  all  the 7[authorised  officers]
appointed  under  sub-section  (1)  at  his  discretion  even  before  the expiry
of  the  period  specified  in  the  order  made  under  sub-section  (1).

(5) The  provisions  of

8[sub-section  (2)  of  section  78A]  shall  apply
mutatis  mutandis  for  fixation  of  remuneration  to  be  paid  to 9[authorised
officers]  appointed  under  sub-section  (1).]]

10[78.

(1) If,  in  the  opinion  of  the  Registrar,  the  committee  makes  a
persistent  default  in  performance  of  its  duties  or  is  negligent  in  the
performance  of  its  duties  or  is  otherwise  not  discharging  its  functions
properly  and  diligently,  or  there  is  a  stalemate  in  the  constitution  or
functioning  of  the  committee,  occasioned  by  resignation,  disqualification  of
members  of  committee  or  otherwise,  the  Registrar,  after  giving  the
committee an opportunity of showing cause, in writing, if any, within fifteen
days  from  the  date  of  receipt  of  notice  and  after  giving  reasonable
opportunity  of  being  heard  and  after  consultation  with  the  federal  society
to  which  the  society  is  affiliated,  comes  to  a  conclusion  that  the  charges

1 These words were substituted for the word “Administrator” by Mah. 16 of 2013, s. 44(e).
2 Sub-section (3) was substituted by Mah. 20 of 1986, s. 39(b).
3 These  words  were  substituted  for  the  word  “Administrator”,  by  Mah.  16  of  2013,

s. 44(f)(i).

4 The provisos were deleted by Mah. 16 of 2013, s. 44(f)(ii).
5 This proviso was substituted by Mah. 16 of 2013, s. 44(f)(iii).
6 Sub-sections (4) and (5) were added by Mah. 20 of 1986, s. 39(c).
7 These words were substituted for the word “administrators”, by Mah. 16 of 2013, s. 44(g).
8 These words, brackets, figures and letter were substituted for the words, brackets, figures

and letter “sub-section (2A) of section 78” by Mah. 16 of 2013, s. 44(h)(i).

9 These words were substituted for the words “the members or administrators” by Mah. 16 of

2013, s. 44(h)(ii).

10 Section 78 was substituted by Mah. 16 of 2013, s. 45.

Power of
suspension of
committee.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

67

mentioned in the notice prima facie exist, but are capable of being remedied
with,  he  may  by  order,—

(i)  keep  the  committee  under  suspension  for  such  temporary
period, not exceeding six  months as may be specified in  the order ; and

(ii)  appoint  an  administrator  or  committee  of  administrators
consisting  of  three  or  more  members  of  the  society  otherwise  than  the
members  of  the  committee  so  suspended  in  its  place  or  appoint  an
administrator  or  committee  of  administrators  who  need  not  be  the
members  of  the  society,  to  manage  the  affairs  of  society  :

Provided  that,  nothing  in  this  sub-section  shall  apply  to  a  society,
where  there  is  no  Government  shareholding  or  loan  or  financial  assistance
in  terms  of  any  cash  or  kind  or  any  guarantee  by  the  Government :

Provided  further  that,  in  case  of  a  society  carrying  on  the  business  of
banking,  the  provisions  of  the  Banking  Regulation  Act,  1949,  shall  also
apply  :

10 of
1949.

Provided also that, in case of society carrying on the business of banking,
the provisions of this clause shall have effect as if for the words "six months"
the  words  "one  year"  had  been  substituted  :

Provided  also  that,  the  Registrar  shall  have  the  power  to  change  the
committee  or  any  member  thereof  or  Administrator  appointed,  at  his
discretion  even,  before  the  expiry  of  the  period  specified  in  the  order  made
under  this  section  :

Provided  also  that,  such  federal  society  shall  communicate  its  opinion,
to  the  Registrar  within  forty-five  days  from  the  date  of  receipt  of
communication, failing  which it shall be  presumed that such  federal society
has  no  objection  to  the  order  of  suspension  and  the  Registrar  shall  be  at
liberty  to  proceed  further  to  take  action  accordingly.

(2) The  administrator  or  committee  of  administrators,  as  the  case  may
be,  so  appointed  under  clause  (ii) of  sub-section (1), shall  submit  a  report
to  the  Registrar  within  such  period  as  may  be  specified  in  the  order  as  to
the  remedial  measures  taken  and  after  going  through  the  report  or  any
other material placed on record, if the Registrar is satisfied that the charges
mentioned  in  the  notice  are  made  good  or  remedied,  he  shall  by  order
revoke,  the  order  of  suspension  and  direct  the  administrator  or  the
committee of administrators to handover the management to the suspended
committee  with  immediate  effect.

(3) When  a  notice  is  issued  against  any  committee  or  a  member  under
sub-section (1), if  resignation  from  any  office  is  tendered  by  the  committee
or a member, it shall not be valid or effective until two months have elapsed
from  the  date  of  issue  of  the  notice  or  until  it  is  permitted  to  be  accepted
by  the  Registrar,  whichever  is  earlier.

(4) The  administrator  or  committee  of  administrators  so  appointed
shall,  subject  to  the  control  of  the  Registrar  and  such  instructions  as  he
may  from  time  to  time  give,  have  power  to  exercise  all  or  any  of  the
functions  of  the  committee  or  of  any  officer  of  the  society  and  take  all  such
actions  as  may  be  required  in  the  interest  of  the  society  and  shall  arrange
for  conduct  of  the  election,  through  the  State  Co-operative  Election
Authority,  within  the  period  specified  and  handover  the  management  to
the  newly  elected  Committee  in  accordance  with  the  Act,  rules  and  by-laws

H 4112—10a

68

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Power of
supersession
of committee
or removal of
member
thereof.

of  the  society.  The  administrator  or  committee  of  administrators  so
appointed  as  aforesaid,  shall  notwithstanding  anything  contained  in  the
by-laws,  have  power  to  call  a  special  general  body  meeting  of  the  society
to  review  or  reconsider  the  decisions  or  the  resolutions  taken  or  passed  at
the  general  body  meeting  called  by  the  previous  committee  or  to  endorse
the  action  taken  by  it.

(5) The  conditions  of  service  of  the  administrator  shall  be  fixed  by  the
Registrar which shall include the remuneration payable to him and expenses
of  management.  Such  remuneration  and  expenses  shall  be  payable  out  of
the  funds  of  the  society  within  such  time  and  at  such  intervals  as  the
Registrar may fix, and if such remuneration or expenses are not paid within
such time or at intervals, the Registrar may direct the person having custody
of  the  funds  of  the  society  to  pay  to  the  administrator  or  committee  of
administrators  such  remuneration  and  expenses  in  priority  to  any  other
payments,  except  land  revenue,  any  arrears  of  land  revenue,  or  any  sum
recoverable from the society as arrears of land revenue, and he shall, so far
as  the  funds  to  the  credit  of  the  society  allow,  comply  with  the  orders  of
the  Registrar.

(6) All  acts  done  or  purported  to  be  done  by  the  administrator  or
committee  of  administrators  during  the  period  the  affairs  of  the  society  are
carried  on  by  the  administrator  or  committee  of  administrators  appointed
under  sub-section (1) shall  be  binding  on  the  new  committee.]

1
[78A.

(1) If  in  the  opinion  of  the  Registrar,  the  committee  or  any
member  of  such  committee  has  committed  any  act,  which  is  prejudicial  to
the  interest  of  the  society  or  its  members  or  if  the  State  Co-operative
Election  Authority  has  failed  to  conduct  the  elections  in  accordance  with
the  provisions  of  this  Act  or  where  situation  has  arisen  in  which  the
committee  or  any  member  of  such  committee  refuses  or  has  ceased  to
discharge  its  or  his  functions  and  the  business  of  the  society  has,  or  is
likely  to ;  come  to  a  stand-still,  or  if  serious  financial  irregularities  or
frauds  have  been  identified  or  if  there  are  judicial  directives  to  this  effect
or,  if  there  is  a  perpetual  lack  of  quorum  or,  where  in  the  opinion  of  the
Registrar  the  grounds  mentioned  in  sub-section  (1)  of  section  78  are  not
remedied  or  not  complied  with,  or  where  any  member  of  such  committee
stands  disqualified  by  or  under  this  Act  for  being  a  member  of  the
committee,  the  Registrar  may,  after  giving  the  committee  or  the  member,
as the case may be, an opportunity of stating its or his objections in writing
as provided under sub-section (1) of section 78 and after giving a reasonable
opportunity  of  being  heard,  and  after  consultation  with  the  federal  society
to  which  the  society  is  affiliated  comes  to  a  conclusion  that  the  charges
mentioned  in  the  notice  are  proved,  and  the  administration  of  the  society
cannot  be  carried  out  in  accordance  with  the  provisions  of  this  Act,  rules
and  by-laws,  he  may  by  order  stating  reasons  therefor,—

(a) (i) supersede  the  committee ;  and

(ii)  appoint  a  committee  consisting  of  three  or  more  members  of
the society otherwise than the members of the committee so superseded,
in its place, or appoint an administrator or committee of administrators
who  need  not  be  the  members  of  the  society,  to  manage  the  affairs  of
society  for  a  period  not  exceeding  six  months :

1 Section 78A was inserted by Mah. 16 of 2013, s. 46.

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Maharashtra Co-operative Societies Act, 1960

69

Provided  that,  the  Registrar  shall  have  the  power  to  change  the
committee  or  any  member  thereof  or  administrator  or  administrators
appointed  at  his  discretion  even  before  the  expiry  of  the  period  specified
in  the  order  made  under  this  sub-section  :

Provided  further  that,  such  federal  society  shall  communicate  its
opinion  to  the  Registrar  within  forty-five  days,  from  the  date  of  receipt  of
communication, failing  which it shall be  presumed that such  federal society
has  no  objection  to  the  order  of  supersession  or  removed  of  a  member  and
the  Registrar  shall  be  at  liberty  to  proceed  further  to  take  action
accordingly :

10  of
1949.

Provided  also  that,  in  case  of  a  society  carrying  on  the  business  of
banking,  the  provisions  of  the  Banking  Regulation  Act,  1949,  shall  also
apply  and  the  committee  shall  not  be  superseded  for  a  period  exceeding
one  year  :

Provided  also  that,  nothing  in  this  sub-section  shall  apply  to  a  society,
where  there  is  no  Government  shareholding  or  loan  or  financial  assistance
in  terms  of  any  cash  or  kind  or  any  guarantee  by  the  Government ;

(b)  remove  the  member  :

Provided  that,  the  member  who  has  been  so  removed  shall  not  be
eligible  to  be  re-elected,  re-co-opted  or  re-nominated  as  a  member  of  any
committee  of  any  society  till  the  expiry  of  period  of  next  one  term  of  the
committee  from  the  date  on  which  he  has  been  so  removed  :

10 of
1949.

Provided  further  that,  in  case  of  a  society  carrying  on  the  business  of
banking,  the  provisions  of  the  Banking  Regulation  Act,  1949,  shall  also
apply.

(2) The provisions of sub-sections (3), (4), (5) and (6) of section 78 shall
apply mutatis  mutandis, in  relation  to  supersession  or  removal  under  this
section.]

79.

(1) The  Registrar  may  direct  any  society  or  class  of  societies,  to
keep  proper  books  of  accounts 1[in  such  form  including  electronic  or  any
other form, as may be prescribed] with respect 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  he  may  require
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[(1A) Every  society  shall  file  returns  within  six  months  of  the  close
of  every  financial  year  to  which  such  accounts  relate,  to  the  Registrar  or
to  the  person  authorised  by  him.  The  returns  shall  contain  the  following
matters,  namely :—

3[Society’s
obligation to
file returns
and
statements
and
Registrar’s
power to
enforce
performance
of such
obligations.]

(a) annual  report  of  its  activities ;

(b) its  audited  statement  of  accounts ;

1 These words were inserted by Mah. 16 of 2013, s. 47(a).
2 Sub-sections (1A) and (1B) were inserted by Mah. 16 of 2013, s. 47(b).
3 The marginal note was substituted by Mah. 16 of 2013, s. 47(f).

70

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(c) plans  for  disposal  of  surplus  funds  as  approved  by  the  general

body  of  the  society ;

(d) list  of  amendments  to  the  by-laws  of  the  society,  if  any ;

(e) declaration  regarding  date  of  holding  of  its  general  body

meeting  and  conduct  of  elections  when  due ;

(f) any  other  information  required  by  the  Registrar  in  pursuance

of  any  of  the  provisions  of  this  Act.

(1B) Every  society  shall  also  file  a  return  regarding  the  name  of  the
auditor  or  auditing  firm  from  a  panel  approved  by  a  State  Government  in
this behalf, appointed in the general body meeting together with his written
consent, within a period of one month from the date of annual general body
meeting.]

(2) Where  any  society  is  required  to  take  any  action 1[including  filing
of  returns]  under  this  Act,  the  rules  or  the  bye-laws,  or  to  comply  with  an
order made under the 2[foregoing sub-sections] 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,  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  Registrar  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  complying  with  the  provisions  of  this
Act,  the  rules  or  the  bye-laws,  or  the  order  made  under  sub-section  (1),
and,  after  giving  such  officer  or  officers  an  opportunity  of  being  heard,  may
require  him  or  them  to  pay  to  the  society  the  expenses  paid  or  payable  by
it  to  the  State  Government  as  a  result  of  their  failure  to  take  action,  and
to  pay  to  the  assets  of  the  society  such  sum  not  exceeding 3[one  hundred
rupees]  as  the  Registrar  may  think  fit  for  each  day  until  the  Registrar’s
directions  are  carried  out.

4[(4) The  Registrar  or  the  authorised  person  on  his  behalf  shall
scrutinise  the  returns  and  information  so  received  and  take  further
necessary  action,  if  required.]

7[Government’s
powers] to give
directions in
the public
interest, etc.

5[79A. (1) 6[If  the  State  Government,  on  receipt  of  a  report  from  the
Registrar  or  otherwise,  is  satisfied]  that  in  the  public  interest  or  for  the
purposes  of  securing  proper  implementation  of  co-operative  production
and other development programmes approved or undertaken by Government
or to secure the proper management of the business of the society generally,

1 These words were inserted by Mah. 16 of 2013, s. 47(c)(i).
2 These  words  were  substituted  for  the  words  “foregoing  sub-section” by  Mah.  16  of  2013,  s.

47(c)(ii).

3 These words were substituted for the words “twenty-five rupees” by Mah. 16 of 2013, s. 47(d).
4 Sub-section (4) was added by Mah. 16 of 2013, s. 47(e).
5 Section 79A was inserted by Mah. 27 of 1969, s. 15.
6 These words were substittued for the words “Subject to the rules made in that behalf, where

the Registrar is satisfied” by Mah. 27 of 1971, s. 5(a)(i).

7 These words were substituted for the words “Registrar’s power” by Mah. 27 of 1971, s. 5(c).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

71

or  for  preventing  the  affairs  of  the  society  being  conducted  in  a  manner
detrimental  to  the  interests  of  the  members  or  of  the  depositors  or  the
creditors  thereof,  it  is  necessary  to  issue  directions  to  any  class  of  societies
generally or to any society or societies in particular, 1[the State Government
may  issue]  directions  to  them  from  time  to  time,  and  all  societies  or  the
society  concerned,  as  the  case  may  be,  shall  be  bound  to  comply  with  such
directions.

(2) 2[The State Government may] modify or cancel any directions issued
under  sub-section  (1),  and  in  modifying  or  cancelling  such  directions  may
impose  such  conditions  as 3[it  may  deem  fit.]

4[(3) Where  the  Registrar  is  satisfied  that  any  person  was  responsible
for  complying  with  directions  or  modified  directions  issued  to  a  society
under  sub-sections  (1)  and  (2)  and  he  has  failed,  without  any  good  reason
or justification,  to comply with the  directions, the Registrar may  by order—

(a) if the person is a member of the committee of the society, 5[declare
him to be disqualified to be or to continue to be a member of the committee
of  any  society]  for  a  period  of  six  years  from  the  date  of  the  order ;

(b) if  the  person  is  an  employee  of  the  society,  direct  the  committee
to  remove  such  person  from  employment  of  the  society  forthwith,  and if
any  member  or  members  of  the  committee,  without  any  good  reason  or
justification, fail to comply with this order, 6* * declare them disqualified
as  provided  in  clause  (a)  above  :

Provided  that,  before  making  any  order  under  this  sub-section,  the
Registrar shall give a reasonable opportunity of being heard to the person
or  persons  concerned  and  consult  the  federal  society  to  which  the  society
is  affiliated :

7[Provided  further  that,  such  federal  society  shall  communicate  its
opinion  to  the  Registrar  within  a  period  of  forty-five  days  from  the  date
of  receipt  of  communication,  failing  which it  shall  be  presumed  that  such
federal  society  has  no  objection  to  take  action  under  this  section  and  the
Registrar shall be at liberty to proceed further to take action accordingly.

Any  order  made  by  the  Registrar  under  this  section  shall  be  final.]

8[79AA. (1) If  the  Registrar  or  an  officer  not  below  the  rank  of  District
Deputy Registrar is of the opinion that, having regard to the financial condition
of  the  society  and  financial  interest  of  Government  therein,  it  is  necessary  to
regulate  the  manner  of  carrying  on  its  trade  or  business,  he  may,  subject  to
any  rules  made  in  this  behalf,  direct  such  society  to  make  regulations  in  that
behalf  and  forward  them  to  him  for  approval.

Registrar’s
powers to give
directions to
frame
regulations.

1 These words were substittued for the words “he may issue” by Mah. 27 of 1971, s. 5(a)(ii).
2 These  words  were  substituted  for  the  words  “The  Registrar  may”  by  Mah.  27  of  1971,

s. 5(b)(i).

3 These words were substituted for the words “he may deem fit” by Mah. 27 of 1971, s. 5(b)(ii).
4 Sub-section (3) was added by Mah. 36 of 1975, s. 6.
5 These  words  were  substituted  for  the  words  “remove  the  member  from  the  committee
and appoint any other person as a member of the committee for the remainder of the
term of his office and declare him to be disqualified to be such member” by Mah. 16 of
2013, s. 48(a).

6 The words “remove the members, appoint other persons as members and”, were deleted by

Mah. 16 of 2013, s. 48(b)(i).

7 This proviso was added by Mah. 16 of 2013, s. 48(b)(ii).
8 Section 79AA was inserted by Mah. 20 of 1986, s. 41.

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[1961 : Mah. XXIV

(2) On  receipt  of  the  regulations  made  by  the  society,  the  Registrar  or
such  officer  may  approve  them  with  or  without  modifications.  On  approval
of such regulations, the society shall carry on its business in accordance with
such  regulations.

(3) If  any  society  fails  to  forward  such  regulations  to  the  Registrar  or
such  officer  when  directed  by  him  under  sub-section  (1)  within  a  period  of
three months from the date on which the direction is given, the Registrar or
such  officer  shall  himself  make  or  cause  to  be  made  such  regulations  and
require the society to carry on its business in accordance with such regulations
and thereupon the society shall be bound to comply with such requirement.]

1 *

*

*

*

*

*

*

*

*

Registrar’s
power to seize
records,
etc.

80.

(1) Where  the  Registrar  is  satisfied  that  the  books  and  records  of
a  society  are  likely  to  be  suppressed,  tampered  with  or  destroyed,  or  the
funds and property of a society are likely to be misappropriated or misapplied,
the  Registrar  or  the  person  authorised  by  him  may  apply  to  the  Executive
Magistrate  within  whose  jurisdiction  the  society  is  functioning  for  seizing
and  taking  possession  of  the  records  and  property  of  the  society.

(2) On  receipt  of  an  application  under  sub-section  (1), 2[the  Magistrate
shall  forthwith  consider  such  application  and,  if  satisfied  that  immediate
action is required, shall authorise] any police officer, not below the rank of a
sub-inspector, to enter and search any place where the records and property
are  kept  or  likely  to  be  kept,  and  to  seize  them  and  hand  over  possession
thereof to the Registrar or the person authorised by him, as the case may be.

3[(3) Where  the  Registrar  or  an  officer  not  below  the  rank  of  District
Deputy Registrar (hereinafter referred to in this section as “the said officer”)
is satisfied that immediate action is required to be taken or that the Executive
Magistrate having jurisdiction is not likely to be available at the headquarters
for a consecutive period of three days or the books and records of a co-operative
society  are  in  the  immediate  danger  of  being  tampered  with  or  funds  and
property  of  a  society  are  in  the  immediate  danger  of  being  misappropriated
or misapplied, the Registrar or the said officer may, notwithstanding anything
contained  in  sub-sections  (1)  and  (2),  make  an  order  to  seize  such  books,
records or funds of the society either himself or through an officer authorised
by him in this behalf, and for that purpose the Registrar or the said officer or
the officer so authorised may after reasonable notice at any reasonable time
enter and search without warrant any premises where he belives such books,
records  or  funds  to  be  and  inspect  and  seize  such  books,  records  or  funds,
and  the  officer  or  officers  of  the  society  responsible  for  the  custody  of  such
books, records and funds shall deliver such books, records or funds forthwith
to  the  Registrar,  the  said  officer  or  the  officers  so  authorised,  who  shall
acknowledge  receipt  of  the  books,  records  or  funds  of  the  society  so  seized.
The Registrar, the said officer or the officer so authorised, may, for the purpose
of  execution  of  the  said  order,  request  the  officer-in-charge  of  the  nearest
police  station  to  give  him  necessary  assistance  and  such  police  officer  shall
thereupon  give  him  such  assistance.]

1 Section 79B was deleted by Mah. 16 of 2013, s. 49.
2 These words were substituted for the words “ the Magistrate may authorise” by Mah. 3 of

1974, s. 18.

3 Sub-section (3) was added by Mah. 20 of 1986, s. 42.

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Maharashtra Co-operative Societies Act, 1960

73

Audit.

CHAPTER  VIII

AUDIT, INQUIRY, INSPECTION AND SUPERVISION

81.

1[(1)  (a) The  society  shall  cause  to  be  audited  its  accounts  atleast
once in each financial year and also cause it to be completed within a period
of four months from the close of financial year to which such accounts relate
by  auditor  or  auditing  firm  from  a  panel  prepared  by  the  Registrar  and
approved  by  the  State  Government  or  an  authority  authorised  by  it  in  this
behalf,  possessing  required  qualifications  and  experience  as  may  be
prescribed, to be eligible for auditing accounts of societies, appointed by the
general  body  of  a  society,  as  provided  in  sub-section  (2A)  of  section  75  and
shall lay such audit report before the annual general body meeting. In case of
apex  society,  the  audit  report  shall  also  be  laid  before  both  Houses  of  the
State Legislature, in such manner, as may be prescribed :

Provided that, if the Registrar is satisfied that the society has failed to
intimate and file the return as provided by sub-section (2A) of section 75 and
sub-section  (1B)  of  section  79,  by  order,  for  the  reasons  to  be  recorded  in
writing, he may cause its accounts to be audited, by an auditor from the panel
of the auditors approved by the State Government or an authority authorised
by it in this behalf :

Provided further that, no auditor shall accept audit of more than twenty
societies for audit in a financial year excluding societies having paid up share
capital of less than rupees one lakh :

Provided also that, the Registrar shall maintain a panel of auditors and
auditing  firms  as  approved  by  the  State  Government  or  an  authority
authorised by it in this behalf.

(b) The  manner  of    preparation,  declaration  and  maintenance  of  the
panel of auditors and auditing firms by the Registrar shall be such as may be
prescribed.

(c) The committee of every society shall ensure that the annual financial
statements like the receipts and payments or income and expenditure, profit
and loss and the balance-sheet alongwith such schedules and other statements
are audited, within four months of the closure of the financial year.

(d) The  Registrar  shall  submit  the  audit  report  of  every  apex
co-operative  society  to  the  State  Government  annually  for  being  laid  before
both the Houses of the State Legislature in the manner prescribed.

(e) The  auditor’s  report  shall  have,—

(i) all  particulars  of  the  defects  or  the  irregularities  observed  in
audit  and  in  case  of  financial  irregularities  and  misappropriation  or
embezzlement  of  funds  or  fraud,  the  auditor  or  the  auditing  firm  shall
investigate and report the modus operandi, the entrustment and amount
involved ;

(ii) accounting irregularities and their implications on the financial
statements to be indicated in detail in the report with the corresponding
effects  on  the profit  and  loss ;

(iii) the  functioning  of  the  committee  and  sub-committees  of  the
societies  be  checked  and  if  any  irregularities  or  violations  are  observed
or  reported,  duly  fixing  the  responsibilities  for  such  irregularities  or
violations.

1 Sub-section (1) was substituted by Mah. 16 of 2013, s. 50 (a).

H 4112—11

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(f) The  remuneration  of  the  auditor  or  auditing  firm  of  a  society
shall be borne by the society and shall be at such rate as may be prescribed.
(g) The Registrar shall maintain the list of societies distictwise, the list
of working societies, the list of societies whose accounts are audited, the list
of  societies  whose  accounts  are  not  audited  within  the  prescribed  time  and
reasons  therefor.  The  Registrar  shall  co-ordinate  with  the  societies  and  the
auditors or auditing firms and ensure the completion of audit of accounts of
all  the  co-operative  societies  in  time  every  year.

Explanation  I.—For  the  purposes  of  this  section,  the  expression,
“ possessing  required  qualifications ”  for  being  included  in  the  panel  duly
approved  by  the  State  Government  or  an  authority  authorised  by  the  State
Government in this behalf, from time to time, shall mean and include—

(a) a person who is a Chartered Accountant within the meaning of
the  Chartered  Accountants  Act,  1949,  who  has  a  fair  knowledge  of  the
functioning  of  the  societies  and  an  experience  of  atleast  one  year  in
auditing  of  societies  with  a  working  knowledge  of  Marathi  language ;

(b) an  auditing  firm  which  is  a  firm  of  more  than  one  Chartered
Accountants  within  the  meaning  of  the  Chartered  Accountants
Act, 1949, who have a fair knowledge of the functioning of the societies
with  a  working  knowledge  of  Marathi  language ;

1[(b-1) a person who is Cost Accountant within the meaning of the
Cost and Works Accountants Act, 1959, who has a fair knowledge of the
functioning  of  the  societies  and  an  experience  of  atleast  one  year  of
auditing in  societies with a working  knowledge of Marathi  language ;

(b-2) an  auditing  firm,  which  is  afirm  ofmore  than  one  Cost
Accountants  within  the  meaning  of  the  Cost  and  Works  Accountants
Act,  1959,  having  a  fair  knowledge  of  the  functioning  of  the  societies
with a working knowledge of Marathi language ;]

(c) a  certified  auditor,  who  is  a  person  holding  a  Degree  from  a
recognised  University  and  also  has  completed  a  Government  Diploma
in  Co-operation  and  Accountancy  and  who  has  a  fair  knowledge  of  the
functioning  of  the  societies  and  an  experience  of  atleast  three  years  in
auditing  of  societies  with  a  working  knowledge  of  Marathi  language ;

38 of
1949.

38 of
1949.

23 of
1959.

23 of
1959.

(d) a  Government Auditor, who is an employee of the Co-operation
Department  of    the  State,  possessing  the  Higher  Diploma  in
Co-operative  Management  or  the  Diploma  in  Co-operative  Audit  or
Government Diploma in  Co-operation and Accountancy with a working
knowledge  of  Marathi  language  and  who  has  completed  the  period  of
probation  successfully ;
Explanation  II.—The  terms  and  conditions  for  inclusion  and  retention
of name as an auditor or auditing firm in the panel of auditors shall be subject
to the terms and conditions, as may be prescribed.]

2[(2) The audit under sub-section (1) shall 3[be carried out as per Auditing
standards notified by the State Government from time to time and shall also]
include  examination  or  verification  of  the  following  items,  namely  :—

(i) overdues of debts, if any ;
(ii) cash  balance  and  securities  and  a  valuation  of  the  assets  and

liabilities  of  the  society  ;

(iii) whether  loan  and  advances  and  debts  made  by  the  society  on
the basis of security have been properly secured and the terms on which
such  loans  and  advances  are  made  or  debts  are  incurred  are  not
prejudicial to the interest of the society and its members ;

1 Clauses (b-1) and (b-2) were added by Mah. 14 of 2017, s. 2.
2 Sub-section (2) was substituted by Mah. 20 of 1986, s. 43(c).
3 These words were inserted by Mah. 16 of 2013, s. 50(b).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

75

(iv) whether  transactions  of  the  society  which  are  represented
merely by book entries are not prejudicial to the interest of the society ;

(v) whether loans and advances made by the society have been shown

as deposits  ;

(vi) whether  personal  expenses  have  been  charged  to  revenue

account  ;

(vii) whether  the  society  has  incurred  any  expenditure  in

furtherance of its objects ;

(viii) whether  the  society  has  properly  utilised  the  financial
assistance  granted  by  Government  or  Government  undertakings  or
financial  institutions,  for  the  purpose  for  which  such  assistance  was
granted  ;

(ix) whether  the  society  is  properly  carrying  out  its  objects  and

obligations  towards  members.]

1[(2A) Where, in the opinion of the State Government, it is necessary in
the  public  interest 2[or  in  the  interest  of  the  society]  to  do  so  in  relation  to
any society or class of societies for ensuring management thereof in accordance
with  sound  business  principles  or  prudent  commercial  practices,  the  State
Government  may,  by  order,  direct 3[that  such  society  or  class  of  societies
shall prepare and maintain its accounts in the form determined by the State
Government, from time to time and ] that cost  audit or performance audit or
both,  of  such  society  or  class  of  societies,  as  may  be  specified  in  the  order,
shall  be  conducted.

(2B) Where any order is issued under sub-section (2A), the 4[society shall
cause its audit to be conducted] by a cost accountant who is a member of the
Institute  of  Cost  and  Works  Accountants  of  India  constituted  under  section
3 of the Cost and Works Accountants Act, 1959.]

(3) 5[(a)] 6[The Auditor] shall, for the purpose of audit, at all time 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 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  head-quarters  of  the  society  or  any
branch  thereof.

7[(b) If the Registrar has reason to believe that there exists an element
of  fraud,  misapplication  of  funds,  manipulation  of  the  accounts  and  the
accounts  of  the  society  are  likely  to  be  tampered  with,  thereby  causing  loss
to  the  society,  he  shall  be  competent  to  depute  Flying  Squad  to  a  society  or
societies  for examination  of  books, records,  accounts,  and  such other  papers
and for verification of cash balance. The report of the Flying Squad shall be
treated  as  sufficient  evidence  for  further  action,  if  any.]

1 Sub-scetions (2A) and (2B) were inserted by Mah. 20 of 1986, s. 43(c).
2 These words were inserted by Mah. 16 of 2013, s. 50(c).
3 This portion was inserted by Mah. 10 of 1986, s. 16.
4 These words were substituted for the words “Registrar shall cause such audit of such society

or class of societies to be conducted”, Mah. 16 of 2013, s. 50(d).

5 Sub-section (3) was re-lettered as clause (a) by Mah. 20 of 1986, s. 43(d).
6 These words were substituted for the words “The Registrar or person authorised” by Mah.

16 of 2013, s. 50(e)(i).

7 Clause (b) was substituted by Mah. 16 of 2013, s. 50(e)(ii).

H 4112—11a

23 of
1959.

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

1[(c) If  it  is  brought  to  the  notice of  the  Registrar  that  the  audit  report
submitted by the auditor does not disclose the true and correct picture of the
accounts, the Regisrtrar or the authorised person may carry out or cause to
be  carried  out  a  test  audit  of  accounts  of  such  society.  The  test  audit  shall
include the examination of such items as may be prescribed and specified by
the  Registrar  in  such  order.]

(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 there at, in
respect of any part of the business with which he is concerned as auditor.

2[(5A) If, during the course of audit of any society, the auditor is satisfied
that  some  books  of  accounts  or  other  documents  contain  any  incriminatory
evidence against past or present officer or employee of the society the auditor
shall  immediately  report  the  matter  to  the  Registrar  and,  with  previous
permission of the Registrar, may impound the books or documents and give
a  receipt  thereof  to  the  society.

(5B) The  auditor  shall  submit 3[his  audit  report  within  a  period  of  one
month  from  its  completion  and  in  any  case  before  issuance  of  notice  of  the
annual  general  body  meeting]  to  the  society  and  to  the  Registrar  in  such
form as may be specified by the Registrar, on the accounts examined by him
and on the balance sheet and profit and loss account as on the date and for
the period up to which the accounts have been audited, and shall state whether
in  his  opinion  and  to  the  best  of  his  information  and  according  to  the
Explanation given to him by the society the said accounts give all information
required by or under this Act and present the true and fair view of the financial
transaction  of  the  society :]

4[Provided that, where the auditor has come to a conclusion in his audit
report that any person, is guilty of any offence relating to the accounts or any
other offences, he shall file a specific report to the Registrar within a period
of  fifteen  days  from  the  date  of  submission  of  his  audit  report.  The  auditor
concerned  shall,  after  obtaining  written  permission  of  the  Registrar,  file  a
First  Information  Report  of  the  offence.  The  auditor,  who  fails  to  file  First
Information Report, shall be liable for disqualification and his name shall be
liable to be removed from the panel of auditors and he shall also be liable to
any other action as the Registrar may think fit :

Provided  further that,  when  it  is brought  to  the  notice of  the  Registrar
that, the auditor has failed to initiate action as specified above, the Registrar
shall cause a First Information Report to be filed by a person authorised by
him in that behalf :

Provided  also  that,  on  conclusion  of  his  audit,  if  the  auditor  finds  that
there  are  apparent  instances  of  financial  irregularities  resulting  into  losses
to the society caused by any member of the committee or officers of the society
or  by  any  other  person,  then  he  shall  prepare  a  Special  Report  and  submit

1 Clause (c) was substituted by Mah. 16 of 2013, s. 50(e)(iii).
2 Sub-sections (5A) and (5B) were inserted by Mah. 20 of 1986, s. 43(e).
3 These words were substituted for the words “an audit memorandum duly signed by him” by

Mah. 16 of 2013, s. 50(f)(i).

4 These provisos were added by Mah. 16 of 2013, s. 50(f)(ii).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

77

Rectification
of defects in
accounts.

the  same  to  the  Registrar  alongwith  his  audit  report.  Failure  to  file  such
Special Report, would amount to negligence in the duties of the auditor and
he  shall  be  liable  for  disqualification  for  appointment  as  an  auditor  or  any
other action, as the Registrar may think fit.]

(6) If  it  appears  to  the  Registrar,  on  an  application  by  a  society  or
otherwise,  that  it  is  necessary  or  expedient  to  re-audit  any  accounts  of  the
society,  the  Registrar  may  by  order  provide  for  such  re-audit  and  the
provisions of this Act applicable to audit of accounts of the society shall apply
to  such  re-audit.

1[(7) Special audit of the Co-operative Bank if requested by the Reserve
Bank of India shall be conducted and report thereof shall be submitted to the
Reserve Bank of India under intimation to the Registrar alongwith the Special
Audit  Report.]

82.

If  the  result  of  the  audit  held  under  the  last  preceding  section
discloses  any  defects  in  the  working  of  a  society,  the  society  shall  within
three months from the date of  the audit report, explain to the Registrar the
defects  on  the  irregularities  pointed  out  by  the  auditor,  and  take  steps  to
rectify the defects and remedy irregularities, and report to the Registrar the
action taken by it thereon 2[and place the same before the next general body
meeting]. 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. 3[If,  the  committee  of  a  society
fails to submit the audit rectification report to the Registrar and to the annual
general body meeting, all the members of the committee shall be deemed to
have committed an offence under section 146 and accordingly shall be liable
for  penalty  as  provided  in  section  147.  Where  the  society  concerned  is  a
member  of  a  federal  society,  such  order  of  imposition  of  penalty  shall  be
made  after  consulting  the  State  federal  society  concerned :

Provided  that,  the  Registrar  or  the  person  authorised  by  him  shall
scrutinise  the  audit  rectification  report  accordingly  and  inform  the  society
about  such  report within  six  months  from  the  date of  receipt  thereof :

Provided  further  that,  it  shall  be  the  responsibility  of  the  auditor
concerned  to  offer  his  remarks  on  the  rectification  report  of  the  society,
itemwise, till entire rectification is made by the society and submit his report
to the Registrar :

Provided  also  that,  such  federal  society  shall  communicate  its  opinion
to the Registrar within a period of forty-five days from the date of receipt of
communication, failing  which it shall be  presumed that such  federal society
has no objection to the proposed action and the Registrar shall be at liberty
to  proceed  further  to  take  action  accordingly.]

83.

4[5[(1) The  Registrar  may suo  motu, or,  on  the  application  of  the
one-fifth members of the society or on the basis of Special Report under the
third  proviso  to  sub-section  (5B) of  section  81,  himself  or  by  a  person  duly
authorised  by  him  in  writing,  in  this  behalf,  shall  hold  an  inquiry  into  the
constitution,  working  and  financial  conditions  of  the  society.]

Inquiry by
Registrar.

1 Sub-section (7) was added by Mah. 11 of 2008, s. 23(ii).
2 These words were inserted by Mah. 16 of 2013, s. 51(a).
3 These words were substituted for the words “Where the society concerned is a member of a
federal society, such order shall be made after consulting the federal society.” by Mah. 16 of
2013, s. 51(b).

4 Sub-sections (1) and (2) were substituted by Mah. 3 of 1974, s. 19.
5 Sub-section (1) was substituted by Mah. 16 of 2013, s. 52(a).

78

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[1961 : Mah. XXIV

(2) Before holding any such inquiry on an application, the Registrar may
1[having regard to the nature of allegations and the inquiry involved, require
the applicant to deposit with him such sum of money as he may determine,]
towards the cost of the inquiry. If the allegations made in the application are
substantially  proved  at  the  inquiry,  the  deposit  shall  be  refunded  to  the
applicant,  and  the  Registrar  may  under  section  85,  after  following  the
procedure  laid  down  in  that  section,  direct  from  whom  and  to  what  extent
the cost of the inquiry should be recovered. If it is proved that the allegations
were  false,  vexatious  or  malicious,  the  Registrar  may  likewise  direct  that
such cost shall be recovered from the applicant. Where the result of the inquiry
shows  that  the  allegations  were  not  false,  vexatious  or  malicious,  but  could
not be proved, such cost may be borne by the State Government.]

(3) (a) All officers, members and past members of the society in respect
of which an inquiry is held, and any other person who, in the opinion of the
officer holding the inquiry is in possession of information, books and papers
relating to the society, shall furnish such information as 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 or the person authorised by the Registrar in pursuance
of  sub-clause  (a),  the  Registrar  or  the  person  authorised  by  the  Registrar
may certify the refusal and the Registrar, after hearing any statement which
may be offered in defence, punish the defaulter with a penalty not exceeding
2[five thousand 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.

3[(c) The  Registrar  or  the  officer  authorised  by  him  shall  complete
the inquiry and submit his report as far as possible within a period of six
months and in any case not later than nine months.]

(4) The  result of  any inquiry  under  this section  shall be  communicated

to  the  society  whose  affairs  have  been  investigated.

(5) It shall be competent for the Registrar to withdraw any inquiry from
the officer to whom it is entrusted, and to hold the inquiry himself or entrust
it to any other person as he deems fit.

84.

(1) On  the  application  of  a  creditor  of  a  society  who,—

(a) satisfies the Registrar that the debt is a sum then due, and that he
has  demanded  payment  thereof  and  has  not  received  satisfaction  within
reasonable  time,  and

(b) deposits with the Registrar such sum as the Registrar may require

as security for the costs of any inspection of the books of the society,

the Registrar may, if he thinks it necessary, inspect or direct some person
authorised by him by order in writing in this behalf to inspect, the books of
the  society.

1 These words were substituted for the words, letters and figures “require the applicant to

deposit with him a sum of Rs. 100” by Mah. 20 of 1986, s. 44.

2 These words were substituted for the words “five hundred rupees” by Mah. 16 of 2013, s.

52(b)(i).

3 Clause (c) was inserted by Mah. 16 of 2013, s. 52(b)(ii).

Inspection of
books of
indebted
society.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

79

(2) The  Registrar  shall  communicate  the  result  of  any  such  inspection

to  the applicant,  and  to  the society  whose  books  have been  inspected.

(3) It  shall  be  competent  for  the  Registrar  to  withdraw  any  order  of
inspection from the officer to whom it is entrusted, and to inspect himself or
entrust it to any other person as he deems fit.

1[(4) The powers of inspection conferred on the Registrar by this section
may be exercised by him of his own motion in respect of any society, which is
indebted  to  Government  or  for  which  share  capital  (wholly  or  partly)  is
provided  by  Government  or  where  any  financial  interest  of  Government  is
otherwise  involved.]

85.

(1) Where  an  inquiry  is  held  under  section  83  or  an  inspection  is
made under the last preceding section, the Registrar may apportion the costs,
or  such  part  of  the  costs,  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 2[and pass such order within a period of six
months from the date of submission of inquiry report] :

Provided  that,—

(a) no  order  of  apportionment  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 have had a reasonable opportunity of being heard ;

(b) the Registrar shall 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
purpose  of  defraying  any  costs  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 recovered, on an application by the Registrar to a Magistrate having
jurisdiction in the place where the person from whom the money is claimable
resides or 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 inspection
made  under  section  84  discloses  any  defects  in  the  constitution,  working  or
financial condition or the books of society, the Registrar may bring such defects
to the notice of the society. 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.

(2) The  society  concerned  may,  within  sixty  days  from  the  date  of  any
order made by the Registrar under the foregoing sub-section, appeal against
it to  the State  Government.

(3) The  State  Goverment  may,  in  deciding  the  appeal,  annul,  reverse,

modify  or  confirm,  the  order  of  the  Registrar.

(4) If a society fails to rectify the defects disclosed in the course of or as
a result of an audit under section 81 or fails to rectify the defects as directed
by the Registrar, and where no appeal has been made to the State Government
within  the  time  specifed  in  the  order,  or  where  on  the  appeal  so  made  the
State  Government  has  not  annulled  ,  reversed  or  modified  the  order,  the
Registrar  may  himself  take  steps  to  have  the  defects  rectified,  and  may
recover the costs from the officer or officers of the society who, in his opinion,
has or have failed to rectify the defects.

1 Sub-section (4) was added by Mah. 3 of 1974, s. 20.
2 These words were inserted by Mah. 16 of 2013, s. 53.

Costs of
inquiry and
inspection.

Recovery of
costs.

Registrar to
bring defects
disclosed in
inquiry on
inspection to
notice of
society.

80

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Power of
Registrar to
access
damages
against
delinquent
promoters,
etc.

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  84  or  the
winding  up  of  a  society,  the  Registrar  is  satisfied  on  the  basis  of  the  report
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  or  otherwise  that  any  person  who  has  taken
any part  in the organisation  or management of  the society or  any deceased,
or  past  or  present  officer  of  the  society  has,  within  a  period  of  five  years
prior to 1[the date of commencement of such audit or date of order for inquiry,
inspection  or]  winding  up,  misapplied  or  retained,  or  become  liable  or
accountable  for,  any  money  or  property  of  the  society  or  has  been  guilty  of
misfeasance  or  breach  of  trust  in  relation  to  the  society,  the  Registrar  or  a
person  authorised  by  him  in  that  behalf  may  frame  charges  against  such
person  or  persons,  and  after  giving  a  reasonable  opportunity  to  the  person
concerned  and  in  the  case  of  a  deceased  person    to  his  representative  who
inherits  his  estate,  to  answer  the  charges,  make  an  order  requiring  him  to
repay or restore the money or the property or any part thereof, with interest
at  such  rate  as  the  Registrar  or  the  person  authorised  under  this  section
may determine, or to contribute such sum to the assests of the society by way
of  compensation  in  regard  to  the  misapplication,  retention,  misfeasance  or
breach of trust, as he may determine :

2[Provided  that,  proceedings  under  this  sub-section,  shall  be  completed
by the authorised person within a period of two years from the date of issue
of  order  by  the  Registrar :

Provided  further  that,  the  Registrar  may,  after  recording  the  reasons

therefor, extend the said period for a maximum period of six months :]

3[Provided also that, the Government may, on the report of the Registrar
or suo moto, for the reasons to be recorded in writing, extend the said period
as  may  be  required,  from  time  to  time,  to  complete  the  proceedings  under
this  sub-section  :

Provided  also  that,  in  case  of  the  proceedings  under  this  sub-section
which  have  not  been  completed  within  the  aforesaid  period  on  the  date  of
commencement of the Maharashtra Co-operative Societies (Amendment) Act,
2017,  the  Government  may,  on  the  report  of  the  Registrar  or suo  moto,  for
the  reasons  to  be  recorded  in  writing,  extend  the  period,  from  time  to  time,
for  completion  of  such  proceedings  as  may  be  required.]

Mah.
XXXIII
of 2017.

(2) The  Registrar  or  the  person  authorised  under  sub-section  (1) on
making 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
costs  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.

4[88A. Where  the  Registrar  on  his  own  motion  decides  and  orders  an
inquiry  under  section  83  or  proceeds  or  authorises  to  make  inquiry  under
section 88, he may, having regard to the nature of allegations, and the inquiry
involved, require the society concerned to deposit with him such sum of money
as he may determine, towards the cost of inquiry. If the sum so determined is
not  deposited  with  the  Registrar  within  15  days  from  the  date  of  receipt  of
the  order  requiring  the  society  to  deposit  the  sum,  it  shall  on  a  certificate
issued by the Registrar, be recoverable as an arrears of land revenue.]

1 These words were substituted for the words “date of such audit, inquiry, inspection or order

for” by Mah. 33 of 1963, s. 18.

2 These provisos were added by Mah. 16 of 2013, s. 54.
3 These provisos were added by Mah. 33 of 2017, s. 2.
4 Section 88A was inserted by Mah. 20 of 1986, s. 45.

Deposit
towards fees
of inquiry.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

81

89. The Registrar or the person authorised by him, when acting under
section  83,  84  or  88  shall  have  the  power  to  summon  and  enforce  the
attendance  of  any  person 1[and  examining  him  on  oath  or  affirmation  or  by
affidavit]  or  to  compel  the  production  of  any  document  or  other  material
object by the same means and in the same manner as is provided in the case
of a Civil Court under the Code of Civil Procedure, 1908.

Power to
enforce
attendance,
etc.

2[89A.

(1) It shall be competent for the Registrar to inspect or cause to

be  inspected  the working  of  any  society to  ensure  that—

(a) the  provisions  of  the  Act,  rules  and  bye-laws  of  the  society  are

being  properly  followed  by  the  society ;

Power to
inspect
working of
society.

V of
1908.

(b) the  records  and  books  of  accounts  are  kept  in  proper  forms ;

3[(c) overall view is taken to ensure that the business of the society is
being run on sound business principles and under professional and efficient
management ;]

(d) the  society  is  following  the  co-operative  principles  and  the
directives or directions given by the State Government in accordance with
the  provisions  of  this  Act  and  the  rules  made  thereunder ;

4*

*

5[(e) the  returns  as  provided  by  section  79  are  submitted  to  the

Registrar  regularly  and  properly.]

(2) For the purpose of supervision over the societies, the Registrar shall

have  the  power—

(a) to inspect the records and books of the accounts of any society and
for  that  purpose  he  shall  have,  at  all  times,  access  to  all  the  records  and
books of accounts of the society ; and

(b) to  summon  any  officer  or  employee  who  has  the  custody  of  the

records  or  books  of  accounts  of  the  society  to  produce  them  before  him.

(3) The  State  Government  may  levy  supervision  fees  on  any  society  or
class of societies at such rates, as the State Government may, having regard
to the area of operation, the nature of business and the objects of the society,
by notification in the Official Gazette, fix from time to time.

(4) Every society liable to pay the fees levied under sub-section (3) shall
pay such fees by such date and in such manner as the State Government may
specify  in  the  notification  issued  under  sub-section  (3).

(5) The  State Government  may, having  regard to  the financial  position
of  any  society  or  class  of  societies,  by  general  or  special  order  published  in
the Official  Gazette,  exempt  such  society  or  class  of  societies  from  payment
of  such  fees  for  such  period  as  may  be  specified  in  such  order,  or  reduce  or
remit in whole or in part such fees.]

1 These words were substituted for the words “to give evidence” by Mah. 33 of 1963, s. 19.
2 Section 89A was inserted by Mah. 20 of 1986, s. 46.
3 Clause (c) was substituted by Mah. 16 of 2013, s. 55(a).
4 The proviso was deleted by Mah. 16 of 2013, s. 55(b).
5 Clause (e) was inserted by Mah. 16 of 2013, s. 55(c).

H 4112—12

82

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Constitution
or recognition
of federal
authority to
supervise
working of
societies.

90.

(1) The State Government may constitute or recognise one or more
co-operative  federal  authorities,  in  such  manner  as  may  be  prescribed  and
subject  to  such  conditions  as  the  State  Government  may  impose,  for  the
supervision of a society or a class of societies and may frame rules for making
grants to such an authority.

(2) The State Government may, by general or special order, require 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 of expenditure which
the State  Government or  any person  authorised in  that behalf  has incurred
or  is  likely  to  incure,  in  respect  of  supervision  of  societies.

(3) A  society  to  which  sub-section  (2) 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 reasonable time, the authority may recover it as
if it were an arrear of land revenue.

CHAPTER  IX

1[SETTLEMENT OF DISPUTES]

Disputes.

91.

(1) Notwithstanding 2  [anything  contained]  in  any  other  law  for
the  time  being  in  force,  any  dispute  touching  the  constitution, 3 [election  of
the committee or its officers] 4 ** conduct of general meetings, management
or business of a society shall be referred by any of the parties to the dispute,
or by a federal society to which the society is affiliated, or by a creditor of the
society, 5  [to  a  Co-operative  Court],  if  both  the  parties  thereto  are  one  or
other  of  the  following :—

(a) a society, its committee, any past committee, any past or present
officer, any past or present agent, any past or present servant or nominee,
heir  or  legal  representative  of  any  deceased  officer,  deceased  agent  or
deceased  servant of the society, or the Liquidator of the society 6[or the
Official  Assignee  of  a  de-registered  society]  ;

(b) a member, past member or a person claiming through a member,
past member or a deceased member of a society, or a society which is a
member  of  the  society 7[or  person  who  claims  to  be  a  member  of  the
society] ;

8[(c) a  person  other  than  a  member  of  the  society,  with  whom  the
society  has  any  transactions  in  respect  of  which  any  restrictions  or
regulations have been imposed, made or prescribed under section 43, 44
or 45, and any person claiming through such person ;

1 The heading was substituted by Mah. 20 of 1986, s. 47.
2 These  words  were  substituted  for  the  words  “ anything  containing ”  by  Mah.  33

of 1963, s 20(a).

3 These words were substituted for the words “ elections of the office bearers ” by Mah. 20 of

1986, s. 48 (a).

4 These words  “other than  elections of  committees of  the specified  societies including  it’s

officers,” were deleted by Mah. 16 of 2013, s. 56 (a).

5 These words were substituted for the words “to the Registrar” by Mah. 18 of 1982, s. 3 (a).
6 These words were inserted by Mah. 10 of 1988, s. 17 (a)(i).
7 These words were added by Mah. 27 of 1969, s. 16 (a)(i).
8 Clauses (c) and (d) were substituted for original by Mah. 27 of 1969, s. 16 (a)(ii).

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Maharashtra Co-operative Societies Act, 1960

83

14 of
1947.

(d) a  surety  of  a  member,  past  member  or  deceased  member,  or
surety of a person other than a member with whom the society has any
transactions in respect  of which restriction have  been prescribed under
section  45,  whether  such  surety  or  person  is  or  is  not  a  member  of  the
society]  ;

(e) any  other  society,  or  the  Liquidator  of  such  a  society 1[or  de-
registered  society  or  the  Official  Assignee  of  such  a  de-registered
society] :

2[Provided that, an industrial dispute as defined in clause (k) of section
2  of  the  Industrial  Disputes  Act,  1947,  or  rejection  of  nomination  paper  at
the election to a committee of any society 3[ * * ] or refusal of admission to
membership by a society to any person qualified therefor, 4[or any proceeding
for  the  recovery  of  the  amount  as  arrear  of  land  revenue  on  a  certificate
granted  by  the  Registrar  under  sub-section  (1)  or (2)  of  section  101  or  sub-
section  (1)  of  section137  or  the  recovery  proceeding  of  the  Registrar  or  any
officer  subordinate  to  him  or  an  officer  of  society  notified  by  the  State
Government,  who  is  empowered  by  the  Registrar  under  sub-section  (1)  of
section  156,] 5[or  any  orders,  decisions,  awards  and  actions  of  the  Registrar
against which an appeal under section 152 or 152A and revision under section
154  of  the  Act  have  been  provided,]  shall  not  be  deemed  to  be  a  dispute  for
the  purposes  of  this  section.]

6*        *        *       *

      *

     *

    *

   *

   *

(3) Save as otherwise provided under 7[sub-section (2) of section 93], no
Court  shall  have  jurisdiction  to  entertain  any  suit  or  other  proceeding  in
respect  of  any  dispute  referred  to  in  sub-section  (1).

Explanation  1.—A  dispute  between  the  Liquidator  of  a  society 8[or  an
Official  Assignee  of  a  de-registered  society]  and 9[the  members  (including
past  members,  or  nominees,  heir  or  legal  representative  of  deceased
members)]  of  the  same  society  shall  not  be  referred 10[to  the  Co-operative
Court]  under  the  provisions  of  sub-section  (1).

Explanation  2.—For  the  purposes  of  this  sub-section,  a  dispute  shall

include—

(i) a claim by or against a society for any debt or demand due to it
from a member or due from it to a member, past members or the nominee,
heir  or  legal  representative  of  a  deceased  member,  or servant  for
employee whether such a debt or demand be admitted or not ;

1 These words were inserted by Mah. 10 of 1988, s. 17 (a)(ii).
2 The proviso was added by Mah. 20 of 1986, s. 48 (b).
3 These words “other than a notified society under section 73-IC or a society specified by or

under section 73-G,” were deleted by Mah. 16 of 2013, s. 56 (b).

4 This portion was inserted by Mah. 10 of 1988, s.17 (a)(iii).
5 These words, figures and letter were inserted by Mah.34 of 2001, s. 8.
6 Sub-section (2) was deleted by Mah. 27 of 1969, s. 16(b).
7 These  words,  brackets  and  figures  was  substituted  for  the  words,  brackets  and  figures

“sub-section (3) of section 93” by Mah. 20 of 1986, s. 48(c).

8 These words were inserted by Mah. 10 of 1988, s. 17(b).
9 These words and brackets were substituted for the words “the members” by Mah. 33 of

1963, s. 20(b).

1 0 These words were substituted for the words “to the Registrar” by Mah. 18 of 1982, s. 3(b).

H 4112—12a

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[1961 : Mah. XXIV

(ii) a claim by a 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  deceased  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
to  a  society  of  land  or  any  other  asset  resumed  by  it  for  breach  of
conditions  of  the  assignment.

Constitution
of
Co-operative
Courts.

1[91A.

(1) The  State  Government  may,  by  notification  in  the Official
Gazette,  constitute  one  or  more  Co-operative  Courts  for  the  adjudication  of
disputes 2[referred to them] under section 91 or section 105 or other provisions
of this Act.

(2) A  Co-operative  Court  shall  consist  of  one  member  appointed  by  the

State  Government  possessing  such  qualifications  as  may  be  prescribed.

(3) A Co-operative Court shall have jurisdiction over the whole State or
any part thereof as may be specified in the notification under sub-section (1).

(4) All  disputes  and  other  proceedings  pending  immediately  before  the
commencement  of  the  Maharashtra  Co-operative  Societies  (Third
Amendment)  Act,  1973 3[before  the  Registrar  or  any  person  to  whom  the
powers  of  the  Registrar  under  this  Act  or  the  rules  made  thereunder  have
been  delegated  or]  before  any  nominee  or  board  of  nominees  appointed  by
the Registrar, shall be transferred by him, by general or special order, to any
Co-operative  Court  specified  by  him  in  that  behalf  and  shall  be  heard  and
disposed of  by that Court  as if they  had been  originally filed before  it. That
Court  may  proceed  to  hear  and  dispose  of  such  proceedings  from  the  stage
reached before  such transfer  or may  commence the  hearing de  novo.

4[(5) All  disputes  and  other  proceedings  pending,  immediately  before
the  commencement  of  the  Maharashtra  Co-operative  Societies  (Amendment
and  Validation)  Act,  1982,  before  the  Registrar  or  any  person  to  whom  the
powers  of  the  Registrar  under  this  Act  or  the  rules  made  thereunder  have
been  delegated,  shall  be  transferred  by  him,  by  general  or  special  order,  to
any Co-operative Court specified by him and shall be heard and disposed of
by  that  Court  as  if  they  had  been  originally  filed  before  it.  That  Court  may
proceed  to  hear  and  dispose  of  such  proceedings  from  the  stage  reached
before such transfer or may commence the hearing de novo].]

1 Section 91A was inserted by Mah. 3 of 1974, s. 22.
2 These words were substituted for the words “ referred to the Registrar, ” by Mah. 18 of 1982,

s. 4 (a).

3 This portion was inserted by Mah. 64 of 1975, s. 2.
4 Sub-section (5) was added by Mah. 18 of 1982, s. 4(b).

Mah. III
of 1974.

Mah.
XVIII of
1982.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

85

36 of
1963.

92.

(1) Notwithstanding  anything  contained  in 1[the  Limitation  Act,
1963],  but  subject  to  the  specific  provisions  made  in  this  Act,  the  period  of
limitation in the case of a dispute 2[ referred to the Co-operative Court] under
the  last  preceding  section  shall—

Limitation.

(a) when the dispute  relates to the recovery of any sum, including
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 dispute is between a society or its committee, and any
past committee, any past or present officer, or past or present agent or
past or present servant or the nominee, heir or legal representative or a
deceased officer, deceased agent or deceased 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  or
omission on the part of either party to the dispute, be six years from the
date  on    which  the  act  or omission  with  reference  to  which  the  dispute
arose,  took  place ;

(c) when  the  dispute  is  in  respect  of  any  matter  touching  the
constitution, management or business of a society which has been ordered
to  be  wound  up  under  section  102,  or  in  respect  of  which  a  nominated
committee 3[or an administrator  or committee or authorised person has
been appointed under section 77A, 78 or 78A, be six years from the date
of the  order issued  under section 77A,  78 or 78A  or, under  section 102,
as the case may be] ;

(d) when the dispute is in respect of an election of 4[a committee or
officers] of the society, be 5[two months] 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 those
mentioned  in  the  foregoing  sub-section  which  are  required  to  be  referred  to
6[the Co-operative Court] under the last preceding section shall be regulated
by the provisions of 7[the Limitation Act, 1963], as if the dispute were a suit,
and 6[the  Co-operative  Court]  a  Civil  Court.

36 of
1963.

(3) Notwithstanding anything contained in sub-sections (1) and (2), 6[the
Co-operative  Court]  may  admit  a  dispute  after  the  expiry  of  the  limitation
period,  if  the  applicant  satisfies 6[the  Co-operative  Court]  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.

1 These words and figures were substituted for the words and figures “the Indian Limitation

Act, 1908” by Mah. 20 of 1986, s. 49 (c).

2 These words were substituted for the words “referred to the Registrar ” by Mah. 18 of 1982,

s. 5(a).

3 These words, figures and letters were substituted for the words, figures and letters “or an
administrator has been appointed under section 77A or 78, be six years from the date of  the
order issued under section 102, or section 77A or 78, as the case may be” by Mah. 16 of 2013,
s. 57.

4 These  words  were  substituted  for  words  “ an  office  bearer ”  by  Mah.  20  of  1986,

s. 49(b).

5 These  words  were  substituted  for  the  words  “ one  month ”  by  Mah.  18  of  1982,

s. 5(b).

6 These words were substituted for the words “ the Registrar ” by Mah. 18 of 1982, s. 5(a).
7 These words and figurers were substituted for the words and figures “ the Indian Limitation

Act, 1908 ” by Mah. 20 of 1986, s. 49(c).

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[1961 : Mah. XXIV

Transfer of
disputes from
one Co-
operative
Court to
another, and
suspension of
proceedings in
certain cases.

1[93.

(1) Where any dispute is referred to any Co-operative Court, the
President of the Co-operative Appellate Court may, at any time, for reasons
to  be  recorded  in  writing,  withdraw  such  dispute  from  that  Court  and  may
refer  it  for  decision  to  any  other  Co-operative  Court  as  he  deems  fit.

(2) Notwithstanding  anything  contained  in  this  Act,  the  Co-operative
Court, on an application made to it by any of the parties of the dispute, may,
if  it  thinks  fit,  suspend  any  proceedings  in  respect  of  any  dispute,  if  the
question  at  issue  between  a  society  and  a  claimant  or  between  different
claimants,  is  one  involving  complicated  questions  of  law  and  fact,  until  the
question has been tried by a regular suit instituted by one of the parties or by
the  society.  If  any  such  suit  is  not  instituted  in  a  Civil  Court  within  two
months  from  the  date  of  the  order  of  the  Co-operative  Court,  that  Court
shall  continue  the  proceedings  and  decide    the  dispute.]

2[(3) Notwithstanding  anything  contained  in this  Act,  where  it  appears
to the Co-operative Court that there exist elements of settlement which may
be  acceptable  to  the  parties,  the  court  may  formulate  the  terms  of  the
settlement  and  give  the  same  to  the  parties  for  their  observation  and  after
receiving  the  observations  of  the  parties,  the  court  shall  reformulate  the
terms  of  possible  settlement  and  refer  the  dispute  for,—

(i) Arbitration;
(ii) Conciliation;
(iii) Judicial Settlement, including settlement through Lok-Adalat ;
(iv) Mediation.

(4) Where  a  dispute  has  been  referred—

(a)  for  arbitration  or  conciliation,  the  provisions  of  the  Arbitration
and  Conciliation  Act,  1996  shall  apply,  as  if  the  proceedings  for
arbitration  and  conciliation  were  referred  for  settlement  of  the  dispute
under  the  provisions  of  the  said  Act ;

26 of
1996.

(b) to Lok-Adalat, the Court may refer the same to the Lok-Adalat
in accordance with the provisions of the Legal Services Authorities Act,
1987  and  all  other  provisions  of  that  Act  shall  apply  in  respect  of  the
dispute  so  referred  to  the Lok-Adalat ;

39 of
1987.

(c) for judicial settlement, the Court may refer the same to a suitable
institution  or  a  person  working  in  that  field  and  such  institution  or  a
person shall be deemed to be a Lok-Adalat and all the provisions of the
Legal Services Authorities Act, 1987 shall apply as if the disputes were
referred  to Lok-Adalat under  the  provisions  of  the  said  Act ;

39 of
1987.

(d) for  mediation,  the  court  may  effect  compromise  between  the

parties  and  shall  follow  such  procedure  as  may  be  prescribed.]

94.

(1) 3[The  Co-operative  Court],  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  interested  or  any  of  them  and  to  compel  them  to  give  evidence  on

Procedure for
settlement of
disputes and
power of 4* *
Co-operative
Court.

1 Section 93 was substituted, by Mah. 18 of 1982, s. 6.
2 Sub-sections (3) and (4) were added by Mah. 16 of 2013, s. 58.
3 These words were substituted for the words “ The Registrar or the Co-operative Court ” by

Mah. 18 of 1982, s. 7 (1).

4 The words “ Registrar or ” were deleted, by Mah. 18 of 1982, s. 7(5).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

87

V of
1908.

oath, affirmation or affidavit, and to compel the  production of documents by
the same means and as far as possible in the same manner, as is provided in
the case of  a Civil Court by the Code of Civil Procedure, 1908.

1[(1A) Save  as  otherwise provided  in  this  Act,  every dispute  in  relation
to  any  election  shall  be  heard  and  decided  by  the  Co-operative  Court  as
expeditiously as possible and endeavour shall be made to conclude the hearing
and  decision  within  six  months  from  the  date  on  which  the  dispute  is  filed
before  it.]

(2) Except  with  the  permission  of 2[the  Co-operative  Court]  no  party

shall be represented at the hearing of a dispute by a legal practitioner.

(3) (a) If 3[the  Co-operative  Court]  is  satisfied  that  a  person,  whether
he be a member of the society or not, has acquired any interest in the property
of a person who is a party to a dispute, 4[it may order], that the person who
has acquired the interest in the property may join as a party to the dispute ;
and  any  decision  that  may  be  passed  on  the  reference  by 5[the  Co-operative
Court]  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, 5[the Co-operative Court]
may, at any stage of the hearing of the dispute, if satisfied that the mistake
was bona fide, order any other person to be substituted or added as a plaintiff
or a defendant, upon such terms as 6[it thinks just.]

(c) 7[The Co-operative Court may], at any stage of the proceedings, either
upon  or  without  the  application  of  either  party,  and  on  such  terms  as  may
appear  to 8[the  Co-operative  Court],  to  be  just,  order  that  the  name  of  any
party improperly joined whether as plaintiff or defendant, be struck out, and
the name of any person who ought to have been joined whether as plaintiff or
defendant  or  whose  presence  before 8[the  Co-operative  Court],  may  be
necessary  in  order 9[to  enable  the  Co-operative  Court]  effectually  and
completely  to  adjudicate  upon  and  settle  all  the  questions  involved  in  the
dispute,  be  added.

1 Sub-section (1A) was inserted by Mah. 20 of 1986, s. 50.
2 These words were substituted for the words “ the Registrar or the Co-operative Court, as the

case may be, ” by Mah. 18 of 1982, s. 7 (2).

3 These words were substituted for the words “ the Registrar or the Co-operative Court ” by

Mah. 18 of 1982, s. 7 (3)(a)(i).

4 These words were substitued for the words “ he may order ” by Mah. 18 of 1982, s. 7 (3) (a) (ii).
5 These words were substituted for the words “the Registrar or the Co-operative Court ” by

Mah. 18 of 1982, s. 7 (3)(b)(i).

6 These words were substitued for the words “ he thinks just ” by Mah. 18 of 1982, s. 7(3)(b)(ii).
7 These  words  were  substituted  for  the  words  “The  Registrar,  or  the  Co-operative  Court

may ” by Mah. 18 of 1982, s. 7 (3)(c)(i).

8 These  words  were  substituted  for  the  words  “  the  Registrar  or  the  Co-operative

Court, as the case may be ”  by Mah. 18 of 1982, s. 7 (3)(c)(ii).

9 These words were substituted for the words “ to enable the Registrar or the Co-operative

Court”  by Mah. 18 of 1982, s. 7 (3)(c)(iii).

88

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(d) 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  such  reliefs,  he  shall  not  forward  a
claim  for  any  relief  so  omitted,  except  with  the  leave  of 1[the  Co-operative
Court].

2[(3A) If the disputant is present and the opponent is absent, when the
dispute  is  called  out  for  hearing,  the  Co-operative  Court  may  decide  the
dispute ex-parte, and pass an award. The Co-operative Court, may set aside
the ex-parte, award upon such terms as to the payment of costs, to the court
or  otherwise  as  it  thinks  fit,  if  the  opponent  makes  an  application  within
thirty days from the date of the award, and satisfies the court that there was
sufficient cause for his failure to appear, when the dispute was called out for
hearing and appoint a day for hearing and deciding the dispute on merits.

(3B) If  the  opponent  is  present  and  the  disputant  is  absent,  when  the
matter  is  called  out  for  hearing,  the  Co-operative  Court  may  dismiss  the
dispute  for  default,  and  pass  an  award  accordingly.  The  Co-operative  Court
may restore the dispute which is dismissed for default and restore the same,
upon such terms as to the payment of costs, as it thinks fit, if the disputant
makes  an  application  within  thirty  days  from  the  date  of  its  dismissal,  and
satisfies  the  court  that  there  was  sufficient  cause  for  his  failure  to  appear,
when  the  dispute  was  called  for  hearing  and  appoint  a  day  for  hearing  and
deciding  the  dispute  on  merits.]

3[(4) Save as otherwise directed by the State Government in any case or
class  of  cases,  every  dispute  shall  be  decided  in  such  summary  manner  as
may  be  prescribed  and  as  expeditiously  as  possible].

4[95.

(1) Where  a dispute  has been  referred to  the Co-operative  Court
under  section 5[91,  93  or  105]  or  whether  the  Registrar  or  the  person
authorised  under  section  88  (hereinafter  in  this  section  referred  to  as  “ the
6[authorised officer]”) hears a person against whom charges are framed under
that section and the Co-operative Court or the Registrar or the 6[authorised
officer], as the case may be, is satisfied on inquiry or otherwise that a party
to  such  dispute  or  the  person  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,—

(a) is about to dispose of the whole or any part of his property, or

(b) is about  to remove  the whole  or any  part of  his property  from its

or  his  jurisdiction,

the court or the Registrar or the 6[authorised officer], as the case may be,
may, unless adequate security is furnished, direct conditional attachment of
the said property, and such attachment shall have the same effect as if made
by  a  competent  Civil  Court.

1 These words were substituted for the words “the Registrar or the Co-operative Court” by

Mah. 18 of 1982, s. 7(3)(d).

2 Sub-sections (3A) and (3B) were substituted for sub-section (3A) by Mah. 16 of 2013, s. 59.
3 Sub-section (4) was added by Mah. 3 of 1974, s. 24(b).
4 Section 95 was substituted by Mah. 18 of 1982, s. 8.
5 These figures and word were substituted for the figures and word “93 or 105” by Mah. 16 of

2013, s. 60(a).

6 These  words  were  substituted  for  the  words  “authorised  person”    by  Mah.  16  of  2013,

s. 60(b).

Attachment
before award
or order and
inter-locutory
orders.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

89

(2) Where attachment of property is directed under sub-section (1), the
Co-operative  Court  or  the  Registrar  or  the  authorised  person,  as  the  case
may  be,  shall  issue  a  notice  calling  upon  the  person  whose  property  is  so
attached  to  furnish  security  as  it  or  he  thinks  adequate  within  a  specified
period. If the person fails to provide the security so demanded, the authority
issuing the notice may confirm the order and, after the decision in the dispute
or the completion of the proceedings under section 88, may direct the disposal
of the property so attached towards the claim if  awarded.

(3) Attachment  under  this section  shall  not  affect the  rights  subsisting
prior  to  the  attachment  of  the  property,  of  persons  not  parties  to  the
proceedings  in  connection  with  which  the  attachment  is  made,  or  bar  any
person holding a decree against the person whose property is attached from
applying  for  the  sale  of  the  property  under  attachment  in  execution  of  such
decree.

(4) The  Co-operative  Court,  the  Registrar  or  the  authorised  person,  as
the  case  may  be,  may  in  order to  prevent  the  ends  of  justice  being  defeated
make such interlocutory orders pending the decision in a dispute referred to
in sub-section (1)  as may appear to be just and convenient].

1[96. When  a  dispute  is  referred 2[to  the  Co-operative  Court,  it  may,
after  giving  a  reasonable  opportunity  of  being  heard,  to  the  parties  to  the
dispute,  make  an  award  regarding  the  dispute]  on  the  expenes  incurred  by
the  parties  to  the  dispute  in  connection  with  the  proceedings,  and  fees  and
expenses payable to the Co-operative Court. In case of money claim preferred
by society against a member, the amount of award representing the interest
shall not  be less  than the  amount of  interest accrued  thereon in  accordance
with the contractual rate of interest, but where such money claim relates to
any loan referred to in section 44A, the provisions of that section shall apply
to such money claim as they apply to loan under section 44A.]

Decision of
Co-operative
Court.

97. Any  party  aggrieved  by  any  decision  of 3[the  Co-operative  Court]
under the last preceding section or order passed 4[by the Co-operative Court
or the Registrar or the 5[authorised officer]] under section 95 may within two
months  from  the  date  of  the  decision  or  order,  appeal  to 6[the  Co-operative
Appellate  Court.]

7[Appeal
against
decision under
section 96 and
Order under
section 95].

98. Every  order  passed 8[by  the  Official  Assignee  of  a  de-registered
society  under  sub-section  (3)  of  section  21A  or  every  order  passed]  by  the
Registrar  or 9[an  authorised  officer]  by  him  under  section  88  or  by  the

Money how
recovered.

1 Section 96 was substituted by Mah. 20 of 1986, s. 51.
2 These words were substituted for the words “to arbitration, the Co-operative Court, may,
after giving reasonable opportunity to the parties to the dispute to be heard, make an award

on the dispute”, by Mah. 16 of 2013, s. 61.

3 These words were substituted for the words “the Registrar or the Co-operative court” by

Mah. 18 of 1982, s. 10(a).

4 These words were inserted by Mah. 18 of 1982, s. 10(b).
5 These words were substituted for the words “authorised person”, by Mah. 16 of 2013, s. 62.
6 These words were substituted for the words “the Tribunal” by Mah. 3 of 1974, s. 27(b).
7 The marginal note was substituted by Mah. 18 of 1982, s. 10(c).
8 This portion was inserted by Mah. 10 of 1988, s. 18(a).
9 These words were substituted for the words “a person authorised” by Mah. 16 of 2013, s. 63(a).

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[1961 : Mah. XXIV

Registrar 1[or the Co-operative Court under section 95 2[or by the Co-operative
Court  under  section  96],  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 3[by  the  State  Government  or  by
the  Registrar  in  revision  under  section  154  or  every  order  passed  by  the
Registrar  for  recovery  under  this  Act  shall],  if  not  carried  out,—

(a) on a certificate signed by 4[the Official Assignee or] the Registrar
5[or the Co-operative Court] or a Liquidator, be deemed to be a decree of a
Civil Court, and shall be executed in the same manner as a decree 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 recovery in such manner of any
such  sum  shall  be  made  by  the  Collector,  and  shall  be  accompanied
by  a  certificate  signed  by  the  Registrar 6[or  Co-operative  Court],
7*
* 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.

*

*

Private
transfer of
property made
after issue of
certificate void
against society.

99. Any  private  transfer  or  delivery  of,  or  encumbrance  or  charge  on,
property  made  or  created  after  the  issue  of  the  certificate  of  the  Registrar,
8[Co-operative Court], Liquidator or Assistant Registrar, 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.

Transfer of
property
which cannot
be sold.

100.

(1) When in any execution of an order sought to be executed under
section  98, 9[or  in  the  recovery  of  any  amount  under  section  101  or  section
137],  any  property  cannot  be  sold  for  want  of  buyers,  if  such  property  is  in
occupancy of the defaulter, or of 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, 10[Court],  Liquidator  or  the  Assistant
Registrar, under clause (a) or (b) of  section 98 9[ or under section 101 or 137],
the  Court  or  the  Collector  or  the  Registrar,  as  the  case  may  be,  may
notwithstanding  anything  contained  in  any  law  for  the  time  being  in  force,
direct  that  the  said  property  or  any  portion  thereof  shall  be  transferred  to
the society which has applied for the execution of the said order, in the manner
prescribed.

1 These words were substituted for the words “of his nominee or board of nominees” by Mah.

3 of 1974, s. 26(a) and 28.

2 These words were inserted by Mah. 18 of 1982, s. 11(a).
3 These words were substituted for the words and figures “in revision under section 154 shall”

by Mah. 16 of 2013, s. 63(b).

4 These words were inserted by Mah. 10 of 1988, s. 18(a).
5 These words were inserted by Mah. 18 of 1982, s. 11(b).
6 These words were inserted by Mah. 16 of 2013, s. 63(c).
7 The words “ or by any Assistant Registrar to whom the said power have been delegated by

the Registrar. ” were deleted by Mah. 33 of 1963, s. 22.

8 These words were inserted by Mah. 18 of 1982, s. 12.
9 These words and figures were inserted by Mah. 3 of 1974, s. 29(a) (i) and (ii).
10 This word was inserted by Mah. 18 of 1982, s. 13.

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91

10[Recovery of
certain sums
and arrears
due to certain
societies  as
arrears of
land revenue.]

Bom.
XXVIII
of 1947.

(2) Where property is transferred to the society under the forgoing sub-
section  or  where  property  is  sold  under  section  98, 1[101  or  137],  the  Court,
the  Collector,  or  the  Registrar,  as  the  case  may  be,  may  in  accordance  with
the rules, place the society or the purchaser, as the case may be, in possession
of  the  property  transferred  or  sold.

(3) Subject to such rules as may be made in this behalf, and to any rights,
encumbrances, charges or equities lawfully subsisting in favour of any person,
such  property  or  portion  thereof  shall  be  held  under  sub-section  (1)  by  the
said  society  on  such  terms  and  conditions  as  may  be  agreed  upon  between
the  Court,  the  Collector  or  the  Registrar,  as  the  case  may  be,  and  the  said
society. Subject to the general or special orders of the State Government, the
Collector  or  the  Registrar  may  delegate  to  an  officer,  not  below  the  rank  of
an  Assistant  or  the  Deputy  Collector  or  the  Assistant  Registrar,  powers
exercisable  by  the  Collector  or  the  Registrar  under  this  section.

101.

2[(1) Notwithstanding  anything  contained  in  sections  91,  93  and
98, on an  application made by a resource society undertaking the financing
of  crop  and  seasonal  finance  as  defined  under  the  Bombay  Agricultural
Debtors Relief Act, 1947* 3[or advancing loans for other agricultural purposes
repayable  during  a  period  of  not  less  than  eighteen  months  and  not  more
than five years ] for the recovery of arrears of any sum advanced by it to any
of its members on account of the financing of crop or seasonal finance 4[or for
other  agricultural  purposes  as  aforesaid]  or  by  a  crop-protection  society  for
the  recovery  of  the  arrears  of  the  initial  cost  or  of  any  contribution  for
obtaining  services  required  for  crop-protection  which  may  be  due  from  its
members  or  other  owners  of  lands  included  in  the  proposal  (who  may  have
refused to become members) or by a lift irrigation society for the recovery of
arrears  of  any  subscription  due  from  its  members  for  obtaining  services
required  for  providing  water  supply  to  them 5[or  by  a  Taluka  or  Block  level
village artisans multi-purpose society advancing loans and arranging for cash
credit facilities for artisans for the recovery of arrears of its dues,] 6[or 7[by a
co-operative  housing  society,  for  the  recovery  of  its  dues  or  for  the  recovery
of  its  maintenance  and  service  charges],  or  by  a  co-operative  dairy  society
advancing loans for the recovery of arrears of any sum advanced by it to any
of its members or by an urban co-operative bank for the recovery of arrears
of its dues 8[or any sum advanced by the District Central Co-operative Bank
to  its  individual  members  or  by  non-agricultural  co-operative  credit  society
for the recovery of the arrears of its dues], or by salary-earners co-operative
society  for  the  recovery  of  arrears  of  its  dues  or  by  a  fisheries  co-operative
society for the recovery of arrears of its dues] 9[or by any such society, class
of  societies,  as  the  State  Government  may,  from  time  to  time,  notify  in  the
Official Gazatte, for the recovery of any sum advanced to, or any subscription

1 This word and figures were substituted by Mah. 3 of 1974, s. 29(b).
2 Sub-section (1) was substituted for the original by Mah. 27 of 1969, s. 17(a).
3 This portion was deemed to have been inserted on 1st July 1971 by Mah. 44 of 1973, s. 3(a).
4 This portion was deemed to have been inserted on 1st July 1971 by Mah. 44 of 1973, s. 3(b).
5 This portion was inserted by Mah. 36 of 1975, s. 8.
6 This portion was inserted by Mah. 20 of 1986, s. 52(a).
7 These words were substituted for the words “by a co-operative housing society for the recovery

of arrears of its dues”, by Mah. 16 of 2013, s. 64(a)(i).

8 These words were inserted by Mah. 16 of 2013, s. 64(a)(ii).
9 This portion was inserted by Mah. 31 of 1999, s. 2.
10 This marginal note was substituted by Mah. 16 of 2013, s. 64(c).
* Short  title  of  the  Act  has  been  amended  as  “the  Maharashtra  Agricultural
Debtors Act” by Mah. 24 of 2012, s. 2 and 3, schedule, entry 26, with effect from the 1st May
1960.

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

or any other amount due from, the members of the society or class of societies
so notified] and 1[on the society concerned furnishing a statement of accounts
and  any  other  documents  as  may  be  prescribed]  in  respect  of  the  arrears,
2[the  Registrar  may,  after  making  the  inquiry  in  such  manner  as  may  be
prescribed,  grant  a  certificate  for  the  recovery  of  the  amount  stated  therein
to  be  due  as  arrears.]  The  application  for  grant  of  such  certificate  shall  be
made  in  such  form  and  by  following  such  procedure,  accompanied  by  such
fees and documents as may be prescribed.]

3[4[Explanation I].—For the purposes of this sub-section, the expression

“other  agricultural  purposes”  includes  dairy,  pisciculture  and  poultry.]

5[Explanation  II.—For  the  purposes  of  this  sub-section  the  expression
“maintenance  and  service  charges”  means  such  charges  as  are  specified  in
the  by-laws  of  the  concerned  co-operative  housing  society.]

(2) Where  the  Registrar  is  satisfied  that 6[the  concerned  society  has
failed to take action under the foregoing sub-section in respect of any amount
due  as  arrears,]  the  Registrar  may,  of  his  own  motion,  after  making  such
inquiries, 7[as  may  be  prescribed]  grant  a  certificate  for  the  recovery  of  the
amount stated therein to be due as arrears, and  such a certificate shall  be
deemed  to  have  been  issued  as  if  on  an  application  made  by  the  society
concerned.

(3) A  certificate  granted  by  the  Registrar  under  sub-section  (1)  or  (2)
shall be final and a conclusive proof of the arrears stated to be due therein,
and the same shall be recoverable according to the law for the time being in
force 8[as  arrears  of land  revenue.  A  revision  shall  lie against  such  order  or
grant  of  certificate,  in  the  manner  laid  down  under  section  154  and  such
certificate shall not be liable to be questioned in any Court.]

(4) It  shall  be  lawful  for  the  Collector  and  the  Registrar  to  take
precautionary  measures  authorised  by  sections  140    to  144  of  the  *Bombay
Land Revenue Code, 1879 or any law or provision corresponding thereto for
the  time  being  in  force,  until  the  arrears  due  to 9[the  concerned  society],
together  with  interest  and  any  incidental  charges  incurred  in  the  recovery
of such arrears, are paid, or security for payment of such arrears is furnished
to  the  satisfaction  of  the  Registrar.

Bom. V
of 1879.

1 These words were substituted for the words “on the society concerned furnishing a statement

of accounts” by Mah. 16 of 2013, s. 64(a)(iii).

2 These words were substituted for the portion beginning with the words “the Registrar may,
after making such inquiries as he deems fit” and ending with the words “due as arrears”, by

Mah. 20 of 2006, s. 2(a).

3 This Explanation was added by Mah. 20 of 1986, s. 52(b).
4 This Explanation was re-numbered as Explanation-I by Mah. 16 of 2013, s. 64(a)(iv).
5 This Explanation was inserted  by Mah. 16 of 2013, s. 64(a)(iv).
6 This portion was substituted for the original by Mah. 27 of 1969, s. 17(b).
7 These words were substituted for the words “as he deems fit” by Mah. 20 of 2006, s. 2(b).
8 These words were substituted for the words “for the recovery of land revenue” by Mah. 16 of

2013, s. 64(b).

9 These words were substituted for the words “the resource society” by Mah. 27 of 1969, s.

17(c).

* See now the Maharashtra Land Revenue Code, 1966 (Mah. XLI of 1966).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

93

CHAPTER X

LIQUIDATION

102.

(1) If  the  Registrar,—

Winding up.

(a) after  an  inquiry  has  been  held  under  section  83  or  an  inspection
has  been  made  under  section  84 1[or  89A]or  on  the  report  of  the  auditor
auditing  the  accounts of  the  society,  or

(b) on  receipt  of  an  application  made  upon  a  resolution  carried  by
three-fourth  of  the  members  of  a  society  present  at  a  special  general
meeting  called  for  the  purpose,  or

(c) of his own motion, in the case of a society which—

(i) has  not  commenced  working,  or

(ii) has  ceased  working,  or

(iii) possesses  shares  or  member’s  deposits  not  exceeding  five

hundred  rupees,  or

(iv) has ceased to comply with any conditions as to registration and

management in this Act or the rules or the by-laws,

is  of  the  opinion  that  a  society  ought  to  be  wound-up,  he  may  issue  an

interim  order  directing  it  to  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  explanation  to  the  Registrar  within  a  month
from  the  date  of  the  issue  of  such  order,  and  the  Registrar,  on  giving  an
opportunity  to  the  society 3[and  to  the  creditors  of  the  society,  if  any,]  of
being heard, may issue a final order, vacating or confirming the interim order.

2*

*

*

103.

(1) When  an  interim  order  is  passed  under  the  last  preceding
section 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 person to
be Liquidator of the society,  and fix his remuneration.

Appointment
of Liquidator.

(2) On  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 is or appears to be entitled, of all books,
records  and  other  documents  pertaining  to  the  business  of  the  society  and,
shall have no access to any of them.

(3) When a final order is passed confirming 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 powers.

(4) The person appointed under this section as Liquidator shall, subject
to  the  general  control  of  the  Registrar,  exercise  all  or  any  of  the  powers
mentioned in section 105. The Registrar may remove such person and appoint
another in his place, without assiging any reason.

1 This word, figures and letter was inserted by Mah. 16 of 2013, s. 65.
2 The words, brackets, letters and figures “clause (a) or sub-clause (iv) of clause (e) of” were

deleted by Mah. 33 of 1963, s. 23.

3 These words were inserted by Mah. 34 of 2001, s. 9.

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[1961 : Mah. XXIV

(5) The  whole  of  the  assets  of  the  society  shall  on  the  appointment  of
Liquidator  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  complete  as  soon  as  the  mutation  of  the  name  of  his  office  is
effected, and no Court shall 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  other  documents  of  the  society  to  the  officers  who  had
delivered  the  same  to  him.  The  acts  done,  and  the  proceedings  taken  by
Liquidator, shall be binding on the society, and such proceedings shall, after
the  interim  order  has  been  cancelled  under  the  preceding  section,  be
continued  by  the  officers  of  the  society.

Appeal
against order
of winding up.

104.

1[(1) The  committee  or  any  member  of  the  society  ordered  to    be
wound-up may prefer an appeal against the final order of winding-up within
two months from the date of the issue of the order made under section 102,—

(a) if  made  by  the  Registrar,  or  the  Special  or  Additional  or  Joint
Registrar on whom the powers of the Registrar are conferred, to the State
Government ;

(b) if made by any person other than the Registrar, or the Special or
Additional  or  Joint  Registrar  on  whom  the  powers  of  the  Registrar  are
conferred,  to  the  Registrar :

Provided that, no appeal shall lie against an order, issued under sub-

clause (i), (ii) or (iii) of clause (c) of sub-section (1) of section 102].

(2) No  appeal  from  a  member  under  this  section  shall  be  entertained
unless it is accompained by sum as security for the costs of hearing the appeal,
as may be prescribed.

Powers of
Liquidator.

105.

2[(1)] The  Liquidator  appointed  under  section  103  shall  have
power, subject to the rules and the general supervision, control and direction
of  the  Registrar,—

(a) to  institute  and  defend  any  suit  and  other  legal  proceedings,

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 necessary

for the beneficial winding up of the same ;

(c) to sell the immovable and movable property and actionable claims
of the society by public auction or private contract, with power to transfer
the  whole  or  part  thereof  to  any  person  or  body  corporate,  or  sell  the
same  in  parcels ;

3[(c-i) to  transfer  by  sale  assets  valued  at  market  price  to  a
society registered with similar objects or to Government undertaking
which  carries  on  the  same  business  as  of  the  society  under
liquidation ;

1 Sub-section (1) was substituted by Mah. 7 of 1997, s. 12.
2 Section 105 was re-numberred as sub-section (1) of that section by Mah. 3 of 1974, s. 30 (1).
3 Clauses (c-i) and (c-ii) were inserted by Mah.20 of 1986, s. 53.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

95

(c-ii) to lease to other societies or to Government undertakings,
with  prior  approval  of  the  Registrar,  the  property  of  the  society  to
run the same business as that of the society under liquidation ;]

(d) to  raise,  on  the  security  of  the  assets  of  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  creditor  in  full  or  rateable
according to the amount of such debts, the surplus being applied in payment
of  interest  from  the  date  of  liquidation  at  a  rate  to  be  approved  by  the
Registrar,  but  not  exceeding  the  contract  rates ;

(f) to make any compromise or arrangement with creditors or persons
claiming to be creditors, or having or alleging themselves to have any claim
present  or  future,  whereby  the  society  may  be  rendered  liable ;

(g) 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  subject  between  the  society  and  a
contributory  or  alleged  contributory  or  other  debtor  or  person
apprehencing liability to the society, and all questions in any way relating
to or affecting the assets or the winding up of the society on such terms as
may  be  agreed,  and  take  any  security  for  the  discharge  of  any  such  call,
liability,  debt,  or  claim  and  give  a  complete  discharge  in  respect  thereof ;

(h) to  determine,  from  time  to  time,  after  giving  an  opportunity  to
answer the claim, the contribution to be made or remaining to be made by
the  members  or  past  members,  or  by  the  estate,  nominees,  heirs  or  legal
representatives of deceased members, or by any officer, past officer or the
estate of  nominees, heirs  or legal representatives   of  a deceased  officer to
the  assets  of  the  society,  such  contribution  being  inclusive  of  debts  due
from  such  members  or  officers ;

(i) to  issue  requisitions  under  section  98 ;

1[(j) to  refer  or  to  get  referred  any  dispute  to  the  Co-operative  Court

for  decision ;]

(k) to determine by what persons and in what proportion the costs of

the liquidation shall be borne ;

(l) 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  ;

(m) to summon and enforce the attendance of witnesses and to compel
the production of any books, accounts, documents, securities, cash or other
properties belonging to or in the custody of the society by the same means
and in the same manner as is provided in the case of a Civil Court under
Code  of Civil  Procedure, 1908  ;

(n) 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 ;

(o) 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.

1 Clause (j) was substituted by Mah. 18 of 1982, s. 14.

V of
1908.

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[1961 : Mah. XXIV

Effect of order
of winding up.

1[(2) Notwithstanding  anything  contained  in  sub-section  (1),  the
liquidator,  shall  not  have  the  right  to  vote  on  behalf  of  the  society  in
liquidation,  at  the election  of  the  members  of  the committee  or  of  officers
of  any  other  society.]

106. After expiry of the period for appeal 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 effective and shall operate in favour of all the
creditors and of all the contributories of the society, as if it had been made on
the  joint  petition  of  creditors  and  contributories.  When  a  winding  up  order
becomes  effective,  the  Liquidator  shall  proceed  to  realise  the  assets  of  the
society by sale or otherwise, and no dispute shall be commenced or, if pending
at  the  date  of  the  winding  up  order,  shall  be  proceeded  with,  against  the
society,  except  by  leave  of  the  Registrar  and  subject  to  such  terms  as  the
Registrar  may  impose.  The  Registrar,  may  of  his  own  motion,  however,
entertain or dispose  of any dispute by or  against the society.

Bar of suit in
winding up
and
dissolution
matters.

107. Save  as  expressly  provided  in  this  Act,  no  Civil  Court  shall  take
cognizance  of  any  matter  connected  with  the  winding  up  or  dissolution  of  a
society, under this Act; and when a winding up order has been made no suit
or  other  legal  proceedings  shall  lie  or  be  proceeded  with  against  the  society
or the Liquidator, except by leave  of the Registrar and subject to such terms
as he may impose :

Audit of
Liquidator’s
accounts.

Provided  that,  where  the  winding  up  order  is  cancelled  the  provisions
of this section shall cease to operate so far as the liability of the society and
of  the  members  thereof  to  be  sued  is  concerned  but  they  shall  continue  to
apply  to the  person who  acted as  Liquidator.

108.

(1) The Liquidator shall, during his tenure of office, at such times
as  may  be  prescribed,  but  not  less  than  twice  each  year,  present  to  the
Registrar an account in the prescribed form of his receipts and payments as
Liquidator.  The  Registrar  shall  cause  the  accounts  to  be  audited  in  such
manner  as  he  thinks  fit  ;  and  for  the  purpose  of  audit,  the  Liquidator  shall
furnish the Registrar with such vouchers and information as he, or the person
appointed by him, may require.

(2) The  Liquidator  shall  cause  a  summary  of  audited  accounts  to  be

prepared, and shall send a copy of such summary to every contributory.

(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 manner prescribed.

(4) The Liquidator shall be held liable for any irregularities which might
be discovered in the course or as a result, of audit in respect of transactions
subsequent to his taking over the affairs of the society, and may be proceeded
against  as  if  it  were  an  act  against  which  action  could  be  taken  under
section  88 :

Provided  that,  no  such  action  shall  be  taken  unless  the  irregularities
have caused or are likely to cause loss to the society, and have occurred due
to  gross  negligence  or  want  or  omission,  in  carrying  out  the  duties  and
functions.

1 Sub-section (2) was added by Mah. 3 of 1974, s. 30(2).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

97

109.

(1) The  winding  up  proceedings  of  a  society  shall  be  closed 1[as
soon  as  practicable  within  six  years]  from  the  date 2 [the  Liquidator  takes
over the  custody or  control of  all the  property, effects  and actionable  claims
to which the society is or appears to be entitled, and of all books, records and
other documents pertaining to the business of the society, under sub-section
(2) of section 103] unless the period is extended by the Registrar :

Termination
of liquidation
proceedings.

Provided  that,  the  Registrar  shall  not  grant  extension  for  a  period
exceeding  one  year  at  a  time  and  four  years  in  the  aggregate,  and  shall
immediately after the expiry of 3[ten years] from the date 4[aforesaid], deem
that  the  liquidation  proceedings  have  been  terminated,  and  pass  an  order
terminating  the  liquidation  proceedings :

5[Provided further that, if, due to termination of liquidation proceedings
at the end of ten years, the Registrar comes to a conclusion that, the work of
liquidation under section 105 could not be completed by the liquidator due to
the  reasons  beyond  his  control,  he  shall  call  upon  the  liquidator  to  submit
the  report.  After  getting  the  report,  if  the  Registrar  is  satisfied  that  the
realisation  of  assets,  properties,  sale  of  properties  still  remained  to  be
realised, he shall direct the liquidator to complete the entire work and carry
out the activities only for the purposes of winding up and submit his report
within such period not exceeding one year reckoned from the date of receipt
of  report  from  the  liquidator.]

Mah. XX
of 1986.

6[Explanation.—In  the  case  of  a  society  which  is  under  liquidation  at
the  commencement  of  the  Maharashtra  Co-operative  Societies  (Second
Amendment)  Act,  1985  the  period  of  six  years  shall  be  deemed  to  have
commenced  from  the  date  on  which  the  Liquidator  took  over  the  custody  or
control  as  aforesaid].

(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 liquidation proceedings of the society have been closed, 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  Liquidator,
shall  direct  the  Liquidator  to  convene  a  general  meeting  of  the  members  of
the  society  for  recording  his  final  report.

1 These words were substituted for the words “within three years ” by Mah. 16 of 1969, s. 2(a).
2 This portion was substituted for “of the order of the winding up ” by Mah. 20 of 1986, s. 54(a).
3 These words were substituted for the words “ seven years ” by Mah. 16 of 1969, s. 2(b).
4 This word was substituted for the words “ of the order to winding up of the society ” by Mah.

20 of 1986, s. 54(b).

5 This proviso was inserted by Mah. 16 of 2013, s. 66.
6 This Explanation was substituted for the original by Mah. 20 of 1986, s. 54(c).

H 4112—14

98

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Disposal of
surplus
assets.

110. The surplus assets, 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  manner  as  may  be  prescribed  or  be  devoted  to  any  object  or  objects
provided  in  the  by-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
purposes.  Where the surplus is not so divided amongst the members and the
society has no such by-law, the surplus shall vest in the Registrar, who shall
hold  it  in  trust  and  shall  transfer  it  to  the  reserve  fund  of  a  new  society
registered 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, then Registrar may distribute the surplus, in the manner he thinks
best, amongst any or all of the following :—

(a) an  object  of  public  utility  and  of  local  interest  as  may  be
recommended  by  the  members  in  general  meeting  held  under  the
preceding  section  ;

(b) a  federal  society  with  similar  objects  to  which  the  cancelled
society  was  eligible  for  affiliation  or,  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

Endowment Act,  1890.

VI of
1890.

1[CHAPTER X-A

INSURED CO-OPERATIVE BANKS

Order for
winding up,
reconstruc-
tion,
5[suspension
or] super-
session of
committee,
etc., of
insured co-
operative
bank, not to
be made
without
sanction or
requisition of
Reserve
Bank of India.

110A.

2[(1)] Notwithstanding  anything  contained  in  this  Act,  in  the

case  of  an  insured  Co-operative  Bank—

(i) an order for the winding up, or an order sanctioning a scheme of
compromise  or  arrangment,  or  of  amalgamation,  or  reconstruction
(including  division  or  re-organisation),  of  the  Bank  may  be  made  only
with the previous sanction in writing  of the Reserve Bank of India ;

(ii) an order for the winding up of the Bank shall be made 3[by the
Registrar] if so required by the Reserve Bank of India in the circumstances
referred  to  in  section  13-D  of  the  Deposit  Insurance  Corporation  Act,
1961 ;

47 of
1961.

(iii) if so required by the Reserve Bank of India in the public interest
or  for  preventing  the  affairs  of  the  bank  being  conducted  in  a  manner
deterimental to the interests of the depositors or for securing the proper
management  of  the  bank  an  order  shall  be  made 4[by  the  Registrar]

1 Chapter X-A was inserted by Mah. 54 of 1969, s. 2.
2 Existing section 110A was re-numbered as sub-section (1) by Mah. 11 of 2008, s. 24.
3 These words were inserted by Mah. 36 of 1975, s. 9(a).
4 These words were inserted  by Mah. 36 of 1975, s. 9(b).
5 These words were inserted  by Mah. 16 of 2013, s. 67(b).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

99

1[for  suspension  or  supersession  of  the  committee,  as  the  case  may  be,
and  the  appointment  of  an  Administrator  in  its  place  for  such  period,
not  exceeding  one  year.  In  case  of  supersession,  an  Administrator  so
appointed shall, before the expiry of his term of office, arrange for holding
election  to  constitute  the  new  managing  committee  and  handover  the
management to the newly constituted committee. In case of suspension
of  the  committee,  the  Registrar  with  prior  permission  of  the  Reserve
Bank  of  India,  shall  revoke  the  order  of  suspension  and  direct  the
Administrator  to  handover  the  management  to  the  committee] ;

(iv) an order for the winding up of the bank or an order sanctioning
a  scheme  of  compromise  or  arrangement  or  of  amalgamation  or
reconstruction  (including  division  or  re-organisation)  or  an  order  for
the 2[suspension or supersession] of the committee and the appointment
of an Administrator therefor made with the previous sanction in writing
or on the requisition of the Reserve Bank of India shall not be liable to
be called in question in any manner; and

(v) the Liquidator or the insured co-operative bank or the transferee
bank, as the case may be, shall be under an obligation to repay the Deposit
Insurance  Corporation  established  under  the  Deposit  Insurance
Corporation  Act,  1961,  in  the  circumstances,  to  the  extent  and  in  the
manner referred to in section 21 of that Act.

3[Explanation.—In  this  section,—

(a) the  expression  “ an  insured  co-operative  bank ”  means  a
society which is an insured bank under the provisions of the Deposit
Insurance  Corporation  Act,  1961 ;

(b) the expression “ the transferee bank ” has the same meaning

as assigned to it in that Act.]

4[(2) Notwithstanding anything contained in this Act, in the case of the
District  Central  Co-operative  Bank  and  the  State  Co-operative  Bank,  the
supersession  of  the  Board  and  appointment  of  Liquidator  shall  be  made  by
the Registrar, within one month of being so advised by the Reserve Bank of
India.]]

CHAPTER  XI

5[CO-OPERATIVE AGRICULTURE AND RURAL MULTIPURPOSE DEVELOPMENT BANKS]

6[111. This  Chapter  shall  apply  to—

(a) any co-operative bank or banks advancing loans other than short
term  loans,  to  or  through  the 5[Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank],  for  the  purposes  herein  enumerated

47 of
1961.

47 of
1961.

1 This portion was substituted for the portion beginning with the words “for the supersession
(removal)  of  the  committee”  and  ending  with  the  words  “the  first  meeting  of  the  new
committee” by Mah. 16 of 2013, s. 67(a)(i).

2 These words were substituted for the words “supersession (removal)”  by Mah. 16 of 2013,

s. 67(a)(ii).

3 This Explanation was substituted for the original by Mah. 36 of 1975, s. 9(c).
4 Sub-section (2) was inserted by Mah. 11 of 2008, s. 24.
5 These  words  were  substituted  for  the  words  “ Land  Development  Banks ”,  “ Land

Development Bank ” and “ a Land Development Bank ” by Mah. 41 of 2005, s. 8.

6 This section was substituted for the original by Mah. 20 of 1986, s 55.

H 4112—14a

Application of
Chapter XI to
5[Co-operative
Agriculture
and Rural
Multipurpose
Development
Banks.]

100

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(hereinafter  referred  to  as  “ the 1[Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank]”),  namely  :—

(i) agricultural  or  rural  development ;

(ii) purchase of, or acquisition of title to, agricultural lands by
tenants, occupants and assignees under any law for the time being
in  force ;

(iii) liquidation of Government, Institutional, and other secured

debts  to  agriculturist ;

2[(iv) acquisition,  construction,  rebuilding  or  repairing  of

dwelling houses in rural area ;]

(b) any other society permitted by the Registrar under section 142
to  function  as 3[Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank.]

Explanation.—For  the  purposes  of    this  section,—

(I) the expression “ short term loan ” means a loan for a duration of

less than 18 months ; and

(II) the expression “ agricultural or rural development ” means any
work,  construction  or  activity  pertaining  to  agricultural  and  rural
development  which  includes  the  following,  that  is  to  say :—

(i) construction  and  repairs  of  wells  (including  tube  wells),
tanks  and  other  works  for  storage,  supply  or  distribution  of  water
for  the  purpose  of  agriculture,  or  for  the  consumption  of  human
beings  and  cattle  employed  in  agriculture,

(ii) making agricultural lands fit for cultivation, improvements

of  lands  including  development  of  sources  of  irrigation,

(iii) renewal  or  reconstruction  of  any  of  the  foregoing  works,

or  alterations  therein  or  additions  thereto,

(iv) preparation of lands for irrigation including command area

development,

(v) drainage  to,  and  reclamation  from  rivers  or  other  waters,
or  protection  from  floods  or  erosion  or  other  damage  by  water,  of
land,

(vi) bunding  and  similar  improvements,

(vii) reclamation,  clearance  and  enclosure  or  permanent

improvement  of  land  for  agricultural  purposes,

(viii) horticulture,

(ix) purchase  of  tools,  implements,  machinery  including  oil
engines,  pumping  sets,  electric  motors  for  any  of  the  purposes
mentioned  herein,

(x) purchase  of  tractors  or  power  tillers  or  any  other

agricultural  machinery,

(xi) increase  in  productive  capacity  of  agricultural  lands,

(xii) construction,  rebuilding  or  repairing  of  farm  houses,
cattle-sheds  and  sheds  for  processing  or  repairing  agricultural  or
cottage  or  village  industrial  products,

1 These words were substituted for the words “Land Development Banks”, “Land Development

Bank” and “a Land Development Bank” by Mah. 41 of 2005, s. 8.

2 Sub-clause (iv) was added by Mah. 5 of 1990, s. 3.
3 These words were substituted for the words “Land Development Banks”, “Land Development

Bank” and “a Land Development Bank” by Mah. 41 of 2005, s. 8.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

101

(xiii) purchase  of  machinery  for  processing  of  agricultural

produce,

(xiv) purchase of lands for consolidation of holdings under the

relevant law for the time being in force,

(xv) animal husbandry and dairy farming such as purchase of
milch  cattle,  rearing  of  cross-breed  female  calves,  cattle  breeding,
sheep  and  goat  rearing,  piggery,  poultry  farming  and  purchase  of
bullocks,

(xvi) plantation  including  tree  crops,

(xvii) forestry,

(xviii) pisciculture including development of inland and marine
fisheries,  catching  of  fish  and  all  activities  connected  therewith  or
incidental  thereto,

(xix) sericulture  or  apiculture,

(xx) marketing,  storage  including  rural  warehouses,  godowns,
and cold storage and transport of agriculture, cottage and industrial
products, acquisition  of implements  and machineries  in connection
with  such  activities  including  animal-driven  carts,

(xxi) market  yards  for  agricultural  produce,

(xxii) bio-gas  plants,

(xxiii) working  capital  or  production  credit  to  borrowers  or

investment  credit,

(xxiv) setting  up  of  cottage  and  village  industries,

(xxv) purchase  of  shares  in  co-operative  sugar  factories  or  in

any  processing  industry  of    agriculture  produce,

(xxvi) social  forestry,

(xxvii) such other purposes as the State Government may, from
time  to  time,  by  notification  in  the Official  Gazette,  declare  to  be
agricultural  or  rural  development  purposes,  or

(xxviii) all  activities  incidental  to,  or  ancillary  to,  the  above

mentioned  purposes.]

112.

1[(1) There shall  be a 2[State Co-operative  Agriculture and  Rural
Multipurpose Development Bank], for the State of Maharashtra, if considered
necessary by the State Government, in the 3[interest of the society] or in the
interest  of  the  co-operative  movement  there  may  be  one  or  more 4[District
Co-operative Agriculture and Rural Multipurpose Development Banks] ; but
nothing  in  this  sub-section  shall  be  taken  to  require  the  establishment  or
continuance  of  any 5[Primary  Co-operative  Agriculture  and  Rural
Multipurpose  Development  Banks].]

State and
other 6[Co-
operative
Agriculture
and Rural
Multipurpose
Development
Banks.]

1 Sub-section (1) was subtituted by Mah. 43 of 1972, s. 3.
2 These words were substituted for the words “ State Agriculture and Rural  Development

Bank ” by Mah. 41 of 2005, s. 8.

3 These words were substituted for the words “ public interest ” by Mah. 16 of 2013, s.68.
4 These words were substituted for the words “ Primary Agriculture and Rural  Development

Banks ” by Mah. 10 of 1988, s.19.

5 These words were substituted for the words “ Primary Agriculture and Rural  Development

Banks ” by Mah. 10 of 1988, s.19.

6 These words were substituted for the words “ Agriculture and Rural  Development Banks ”

by Mah. 41 of 2005, s. 8.

102

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

15[District
Co-operative
Agriculture
and Rural
Multipurpose
Development
Bank], its
constitution,
term of office
of delegates,
casual
vacancies,
powers of such
Committee,
etc.

(2) A reference to Land Mortgage Bank 1[or to a Land Development Bank
2[or to an Agriculture and Rural Development Bank]] in any law, or instrument
for  the  time  being  in  force  in  the  State,  shall  with  effect  from  the
commencement  of  this  Act,  be  construed  as  a  reference  to  a 3[Co-operative
Agriculture and Rural Multipurpose Development Bank] within the meaning
of  this  Chapter.

(3) With effect from the commencement of this Act, and until such time
as the names of the Land Mortgage Bank 4[or of the Land Development Banks
5[or  of  the  Agriculture  and  Rural  Development  Banks]]  and  societies
functioning  in  the  State  at  the  commencement  of  this  Act  are  changed  into
6[Co-operative  Agriculture  and  Rural  Multipurpose  Development  Banks]  all
acts  done  by  them  or  mortgages  and  other  documents  executed  by  them,  or
in their favour, and all suits and other proceedings filed by or against them
shall be deemed to have been done, executed or filed, as the case may be, by
7[Co-operative  Agriculture  and  Rural  Multipurpose
or  against  them  as
Development  Banks.]

8[112A.

(1) Notwithstanding  anything  contained  in  this  Act,  or  in  the
rules  made  thereunder,  or  in  the  bye-laws,  of  the 9[State  Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank],—

(a) There  shall  be  a 10[District  Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank]  for  each  District  excluding  the  City
of Bombay District and Bombay Suburban District.

(b) Every 11[District  Co-operative  Agriculture  and  Rural

Multipurpose Development Bank] shall consist of

12[ * * * ]

,—

13[(i) not  more  than  twenty-one  delegates,  to  be  elected  from
Talukas in District including the delegates from reserved categories,
one from the persons belonging to the Schedule Castes or Scheduled
Tribes, one from the persons belonging to other Backward Classes,
one from the persons belonging to De-notified Tribes (Vimukta Jatis)
for  Nomadic  Tribes  or  Special  Backward  Classes  and  two  women,
who  shall  be  elected  from  the  District ;]

14[ *

*

*

*]

1 These words were inserted by Mah. 10 of 1988, s. 20(a).
2 These words were inserted by Mah. 41 of 2005, s. 9(a).
3 These words were substituted for the words “Agriculture and Rural Development Bank”, by

Mah. 41 of 2005, s. 8.

4 These words were inserted by Mah. 10 of 1988, s. 20(b).
5 These words were inserted by Mah. 41 of 2005, s. 9(b).
6 These words were substituted for the words “Agriculture and Rural Development Bank”, by

Mah. 41 of 2005, s. 8.

7 These words were substituted for the words “Agriculture and Rural Development Bank”, by

Mah. 41 of 2005, s. 8.

8 Sections 112A, 112B and 112C were inserted by Mah. 10 of 1986, s. 2.
9 These  words  were  substituted  for  the  words  “District  Loan  Committee”  by  Mah.  41  of

2005, s. 8.

10 These  words  were  substituted  for  the  words  “ District  Loan  Committee ”  by  Mah.  41  of

2005, s. 8.

11 These  words  were  substituted  for  the  words  “ District  Loan  Committee ”  by  Mah.  41  of

2005, s. 8.

12 The words “ the following members, that is to say ” were deleted by Mah. 16 of 2013, s.

69(a)(i)(A).

13 Sub-clause (i) was subtituted, by Mah. 16 of 2013, s. 69 (a) (i) (B).
14 Sub-clauses (i-a) and (ii) were deleted, by Mah. 16 of 2013, s. 69 (a) (i) (c).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

103

(iii) the  Divisional  Officer  of  the 1[State  Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank]  of  the
concerned  division, ex-officio;

2[(iv) the Manager of the District Co-operative Agriculture and

Rural  Multipurpose  Development  Bank, ex-officio.]

3[Explanation.—For  the  purpose  of  sub-clause  (i-a),  the  provisions  of
clause  (b),  and  of  any  order  issued  under  clause  (c)  of  the Explanation to
section 73B shall apply in relation to the members to be elected thereunder;]

4[ *

*

*

*]

(d) Save  as  otherwise  provided  in  this  section,  every  election  to  elect
delegates 5[and  member] 6[shall  be  conducted  by  the  State  Co-operative
Election  Authority] :

Provided that, a reference to an election of a member or members of the
Committee  of  a 7* *  society  in  that  Chapter  or  the  rules  made  thereunder
shall  be  deemed  to  be  a  reference  to  an  election  of 8[delegates  or  member
referred  to  in  clause  (b)].

(2) Every 9[District  Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank]  shall  have  a  Chairman,  who  shall  be  elected  by  the
10[elected  delegates  and  members  thereof]  from  amongst  themselves.

(3) Within fifteen  days from  the date  of election  of the  delegates 11[and
the  members  under  sub-section  (1)]  an  officer  authorised  by 12[the  State
Co-operative  Election  Authority]  in  that  behalf  shall  convene  the  first
13[meeting  of  the  delegates  and 14*
* members]  for  election  of  a
Chairman.  The  officer  so  authorised  shall  preside  over  such  meeting,  but
shall not have the right to vote.

*

1 These words were substituted for the words “State Agriculture and Rural Development

Bank”, by Mah. 41 of 2005, s. 8.

2 Sub-clause (iv) was substituted by Mah. 41 of 2005, s. 10.
3 The Explanation was substituted by Mah. 13 of 1994, s. 10 (1) (a) (v).
4 Clause (c) was deleted by Mah. 16 of 2013, s. 69 (a) (ii).
5 These words were inserted by Mah. 13 of 1994, s. 10 (1) (c).
6 This portion was substituted for the portion beginning with the words “be subject to” and

ending with the words “under that Chapter” by Mah. 16 of 2013, s. 69 (a) (iii) (A).

7 The word “specified” was deleted by Mah. 16 of 2013, s. 69 (a) (iii) (B).
8 These words, brackets and letter were substituted for the words “ a delegate or delegates of
the State Agriculture and Rural Development Bank ” by Mah. 13 of 1994, s. 10 (1) (c) (ii).
9 These  words  were  substituted  for  the  words  “District  Loan  Committee”  by  Mah.  41  of

2005, s. 8.

10 These words were substituted for the words, brackets, letters and figures “ delegates elected
under  sub-clause  (i)  and  members  nominated  under  sub-clause  (i-a)  of  clause  (b)  of
sub-section (1) ” by Mah. 13 of 1994, s. 10 (2).

11 These words, brackets and figure were substituted for the words, brackets and figure “ or
from the date of nomination of members under sub-section (1), whichever is later ” by Mah.
13 of 1994, s. 10 (3) (a).

12 These  words  were  substituted  for  the  words  “the  collector”  by  Mah.  16  of  2013,

s. 69(b).

13 These words were substituted for the words “ meeting of the delegates ” by Mah. 38 of 1986,

s. 2 (3) (b).

14 The words “ the nominated ” were deleted by Mah. 13 of 1994, s. 10 (3) (b).

104

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(4) The  term  of  office  of  members 1*

*  of  a 2[District  Co-operative
Agriculture and Rural Multipurpose Development Bank] shall be for a period
of five years and shall be deemed to commence on the date of the first meeting
referred to in sub-section (3) and the term of office of the Chairman shall be
co-terminus with the term of such members and on expiry of their term they
shall  be  deemed  to  have  vacated  their  offices.

3[(5) A casual vacancy in the committee of Co-operative Agriculture and
Rural Multipurpose Development Bank, due to any reason whatsoever, may
be  fillled  in  from  the  same  class  of  active  members  in  respect  of  which  the
casual vacancy has arisen.]

(6) The 4[District  Co-operative  Agriculture  and  Rural  Development
Bank] shall have the power to sanction by itself or to recommend for sanction
by  the  Committee  of  the 5[State  Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank],  as  the  case  may  be,  loans  to  such  extent
and for such purposes as the committee of the 6[State Co-operative Agriculture
and Rural Multipurpose Development Bank] may, from time to time, specify,
and  shall  also  perform  such  other  functions  as  that  committee  may,  from
time  to time, entrust to it.

7[(7) The  provisions  of  sections  73-ID,  73A, 8[73CA],77A,  78, 9[78A,]
clauses  (j)  and  (k)  of  section  146,  clauses  (j)  and  (k)  of  section  147,  sections
160A  and 160B  shall apply mutatis  mutandis  to the 10[District  Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank]  as  they  apply  in
relation  to a  committee  of a  society].

11[112AA.

(1)  Notwithstanding  anything  contained  in  this  Act  or  the
rules  made  thereunder,  the  members  of  the 12[Co-operative  Agriculture  and
Rural  Multipurpose  Development  Bank]  from  the  City  of  Bombay  District
and  Bombay  Suburban  District  shall  elect  one  delegate  from  amongst
themselves for  every general body meeting  of the members of  the Bank.

(2) Subject to the provisions of section 14, the 13[Co-operative Agriculture
and  Rural  Multipurpose  Development  Bank]  shall  make  bye-laws  for  the
purpose  of  the  election  of  a  delegate  under  sub-section  (1).

(3) The  power  to  make  bye-laws  conferred  by  sub-section  (2)  is  subject
to  the  condition  of  the  bye-laws  being  made  after  previous  approval  of  the
Registrar.].

1 The  words  “other  than ex-officio  members”  were  deleted  by  Mah.  16  of  2013,

s. 69 (c).

2 These  words  were  substituted  for  the  words  “District  Loan  Committee”  by  Mah.  41  of

2005, s. 8.

3 Sub-section (5) was substituted by Mah. 16 of 2013, s. 69 (d).
4 These  words  were  substituted  for  the  words  “District  Loan  Committee”  by  Mah.  41  of

2005, s. 8.

5 These words were substituted for the words “State Land Development Bank” by Mah. 10 of

1988, s. 19.

6 These words were substituted for the words “State Land Development Bank” by Mah. 10 of

1988, s. 19.

7 Sub-section (7) was added by Mah. 31 of 1990, s. 3.
8 These figures and letters were substituted for the figures and letters “73-FF”, by Mah. 16 of

2013, s. 69(e)(i).

9 These figures and letters were inserted by Mah. 16 of 2013, s. 69(e)(ii).
10 These  words  were  substituted  for  the  words  “District  Loan  Committee”  by  Mah.  41  of

2005, s. 8.

11 This section was inserted by Mah. 10 of 1988, s. 21.
12 These words were substituted for the words “Agriculture and Rural Development Bank” by

Mah. 41 of 2005, s. 8.

13 These words were substituted for the words “Agriculture and Rural Development Bank” by

Mah. 41 of 2005, s. 8.

14 These words were substituted for the words “Agriculture and Rural Development Bank” by

Mah. 41 of 2005, s. 8.

Election of
delegate as
member of
14[a Co-
operative
Agriculture
and Rural
Multipurpose
Development
Bank] from
City of Bombay
District and
Bombay
Suburban
District.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

105

General Body
and
Committee of
6[State  Co-
operative
Agriculture
and Rural
Multipurpose
Development
Bank.]

112B.

(1) Notwithstanding  anything  contained  in  this  Act,  or  in  the
rules  made  thereunder,  or  in  the  bye-laws  of  the 1[State  Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank],—

(a) The  delegates 2[and  members]  elected  in  accordance  with  the
provisions  of 3[clause  (d)]  of  sub-section  (1)  of  section  112A 4[and  sub-
section  (1)  of  section  112AA]  shall,  for  the  purposes  of  section  72,
constitute  the  general  body  of  members  of  the 5[State  Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank].

(b) The committee of the 7[State Co-operative Agriculture and Rural
Multipurpose Development Bank] shall consist of the following members,
namely :—

8[(i) twenty  one  members  to  be  elected  from  amongst  the
Chairmen  of  all  Districts,  including  five  reserved  seats,  one  from
the  persons  belonging  to  the  Schedule  Castes  or  Schedule  Tribes,
one  from  the  persons  belonging  to  Other  Backward  Classes,  one
from  the  persons  belonging  to  De-notified  Tribes  (Vimukta  Jatis)
or  Nomadic  Tribes  or  Special  Backward  Classes  and  two  women ;]

(ii) 9 *

*

*

*

*

from amongst the members of the 10[State Co-operative Agriculture and
Rural  Multipurpose  Development  Bank]  who  shall  be  co-opted  by  the
committee  in  its  first  meeting  to  be  convened  by  the 11[State  Co-operative
Election Commissioner or an officer authorised by State Co-operative Election
Authority  in  that  behalf  but  such  officer]  or  such  Officer  shall  not,  while
presiding  over such  meeting, have  a right  of vote ; 12* *

Explanation.—For  the  purposes  of  this  sub-clause,  the  provisions  of
13[clauses (b) and (b-1)] of the Explanation to section 73B shall apply in relation
to  the  members  to  be  co-opted  or  appointed  under  this  clause ;

1 4 *

1 5 *

*

*

*

*

*

*

*

*

1 These words were substituted for the words “State Land Development Bank” by Mah. 10 of

1988, s. 19.

2 These words were inserted by Mah. 13 of 1994, s. 11.
3 This word, brackets and letters were substituted for the words, brackets and letters “clauses

(c) and (d)” by Mah. 16 of 2013, s. 70(a)(i).

4 These words were inserted by Mah. 10 of 1988, s. 22(a).
5 These words were substituted for the words “State Land Development Bank” by Mah. 10 of

1988, s. 19.

6 These words were substituted for the words “State Land Development Bank” by Mah. 10 of

1988, s. 19.

7 These words were substituted for the words “State Land Development Bank” by Mah. 10 of

1988, s. 19.

8 Clause (i) substituted by Mah. 16 of 2013, s. 70(a)(ii)(A).
9 Paragraphs (A) and (B) were deleted by Mah. 16 of 2013, s. 70(a)(ii)(B)(I).
10 These words were substituted for the words “State and Rural Development Bank” by Mah.

41 of 2005, s. 8.

11 These words were substituted for the words “Collector or an officer authorised by him in

that behalf but the Collector” by Mah. 16 of 2013, s. 70(a)(ii)(B)(II).

12 The portion beginning with the words “and where there is failure” and ending with the words

“entitled to be so co-opted”  were deleted by Mah. 16 of 2013 s. 70(a)(ii)(B)(III).

13 These  words  brackets,  letters  and  figure  were  substituted  for  the  words,  brackets  and
letters “clauses (b) and (c) of and any order issued under clause (c)”  by Mah. 16 of 2013,
s. 70(a)(ii)(B)(IV).

14 Sub-clauses (iii), (iv), (v), (vi) and (vii) were deleted  by Mah. 16 of 2013, s. 70(a)(ii)(C).
15 Sub-section (2) was deleted  by Mah. 16 of 2013, s. 70(b).

H 4112—15

106

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

1[(3) The Committee  shall have  a Chairman  and a  Vice-Chairman. The
State  Co-operative  Election  Authority  or  an  Officer  authorised  by  the  State
Co-operative  Election  Authority  in  that  behalf  shall  convene  a  meeting  of
the members of the Committee for election of a Chairman and Vice-Chairman
who  shall  be  from  the  members  referred  to  in  sub-clause  (i)  of  clause  (b)  of
sub-section  (1)  and  such  meeting  shall  be  presided  over  by  the  State  Co-
operative Election Authority or by such authorised officer, but such presiding
officer shall not have a right to vote at such meeting.]

2

*

*

*

*

*

(7) The committee shall exercise such powers and perform such functions
as  may  be  conferred  or  entrusted  to  it  by  this  Act  or  by  the  rules  made
thereunder  or  by  the  bye-laws  of  the 3[State  Co-operative  Agriculture  and
Rural  Multipurpose  Development  Bank].

(8) Without  prejudice  to  the  other  provisions  relating  to  the  procedure
at  the  meeting  of  the  committee  as  may  be  laid  down  by  rules  or  bye-laws
made in that behalf, one third of the total number of members of the committee
shall form the quorum at any meeting of the committee.

112C.

4*

*

*

*

*

*

*]

Appointment,
powers and
function of
Trustee.

113.

(1) The  Registrar  or  any  other  person  appointed  by  the  State
Government  in  this  behalf,  shall  be  Trustee  for  the  purpose  of  securing  the
fulfilment of the obligations of the 5[State Co-operative Agriculture and Rural
Multipurpose  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  between  the
6[State Co-operative Agriculture and Rural Multipurpose Development Bank]
and the Trustee, as modified from time to time by mutual agreement between
the 7[State  Co-operative  Agriculture  and  Rural  Multipurpose  Development
Bank] and the Trustee.

Issue of
debentures.

114.

(1) With  the  previous  sanction  of  the  State  Government  and  the
Trustee, and subject to such terms  and conditions as the State Government
may  impose,  the 8[State  Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank]  in  the  discharge  of  its  function  as 9[  a  Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank]  may  issue
debentures  of  such  denominations,  for  such  period,  and  at  such  rates  of

1 Sub-section (3) was substituted by Mah. 16 of 2013, s. 70(c).
2 Sub-sections (4), (5) and (6) were deleted by Mah. 16 of 2013, s. 70(d).
3 These words were substituted for the words “State Agriculture and Rural Development

Bank” by Mah. 41 of 2005, s. 8.

4 Section 112C was deleted by Mah. 10 of 1988, s. 23.
5 These words were substituted for the words “ State Agriculture and Rural Development

Bank ” by Mah. 41 of 2005, s. 8.

6 These words were substituted for the words “ State Agriculture and Rural Development

Bank ” by Mah. 41 of 2005, s. 8.

7 These words were substituted for the words “ Agriculture and Rural Development Bank ” by

Mah. 41 of 2005, s. 8.

8 These words were substituted for the words “ Agriculture and Rural Development Bank ” by

Mah. 41 of 2005, s. 8.

9 These words were substituted for the words “ Agriculture and Rural Development Bank ” by

Mah. 41 of 2005, s. 8.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

107

interest, as it may deem expedient on the security of mortgages 1[instruments
of  hypothecation, guarantee, pledge or charge created in favour of the Bank,
or  mortgages,  instruments  of  hypothecation,  guarantee,  pledge  or  charge  to
be  acquired  or  partly  on  mortgages  or  on  any  of  the  aforesaid  instruments]
held and partly to be acquired, and properties and other assets of the 2[State
Co-operative  Agriculture  and  Rural  Multipurpose  Development  Bank.]

(2) Every  debenture  may  contain  a  term  fixing  a  period  not  exceeding
thirty  years  from  the  date  of  issue  during  which  it  shall  be  redeemable,  or
reserving to the committee the right to redeem at any time in advance of the
date  fixed for  debenture  not  less than  three  months’  notice in  writing.

(3) The  total  amount  due  on  debentures  issued  by  the 2[State
Co-operative  Agriculture  and  Rural  Multipurpose  Development  Bank]  and
outstanding at any time, shall not exceed—

(a) where  debentures  are  issued  against  mortgages 3[, instruments

of hypothecation,  guarantee,  pledge  or  charge]  held,  the  aggregate  of—

(i) the  amounts  due  on  the  mortgages 4[and  any  or  all  of  the

aforesaid  instruments] ;

(ii) the value of the properties and other assets transferred or
deemed to have been transferred under section 121 by the 5[District
Co-operative  Agriculture  and  Rural  Multipurpose  Development
Bank]  to  the 2[State  Co-operative  Agriculture  and  Rural
Multipurpose Development Bank] and subsisting at such time ; and

(iii) the  amounts  paid  under  the  mortgages 6[and  the  other
instruments]  aforesaid  and  the  unsecured  amounts  remaining  in
the  hands  of  the 2[State  Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank]  or  the  Trustee  at  the  time ;

(b) where  debentures  are  issued  otherwise  than  on  mortgages 7[of
the  instruments  aforesaid]  held,  the  total  amount  as  calculated  under
clause  (a)  increased  by  such  portion  of  the  amount  obtained  on  the
debentures  as  is  not  covered  by  a  mortgage, 8[instruments  of
hypothecation,  guarantee,  pledge  or  charge.]

115. The principal of, and interest on the debentures issued under the
preceding section, or any specified portion thereof, may carry the guarantee
of the State Government, subject to such maximum amount as may be fixed
by  the  State  Government  and  to  such  conditions  as  the  State  Government
may think fit to impose.

Guarantee by
State
Government.

1 These  words  were  substituted for  the  words  “ or  mortgages  to  be acquired  or  partly  on

mortgages ” by Mah. 5 of 1990, s. 4(a).

2 These words were substituted for the words “ State Agriculture and Rural Development

Bank ” by Mah. 41 of 2005, s. 8.

3 These words were inserted by Mah. 5 of 1990, s. 4 (b)(i)(A).
4 These words were inserted by Mah. 5 of 1990, s. 4 (b)(i)(B).
5 These words were substituted for the words “Primary Agriculture and Rural Development

Banks” by Mah. 41 of 2005, s. 8.

6 These words were inserted by Mah. 5 of 1990, s. 4 (b)(i)(C).
7 These words were inserted by Mah. 5 of 1990, s. 4 (b)(ii)(A).
8 These words were inserted by Mah. 5 of 1990, s. 4 (b)(ii)(B).

H 4112—15a

108

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Vesting of
property in
Trustee and
Debenture
holders’
charge on
assets.

116. Upon the issue of debentures under the provisions of section 114,
the  mortgage  properties  and  other  assets 1[including  the  properties  covered
by the  instrumements,] referred to in  sub-section (3)  of that  section held  by
the 2[State  Co-operative  Agriculture  and  Rural  Multipurpose  Development
Bank],  shall  vest  in  the  Trustee,  and  the  holder  of  debentures  shall  have  a
floating charge on all such 3[mortgages, instruments and assets], and on the
amount paid under such mortgages, 4[and such instruments] and remaining
in the hands of the 2[State Co-operative Agriculture and Rural Multipurpose
Development  Bank]  or  of  the  Trustee.

Powers of 5[Co-
operative
Agriculture and
Rural
Multipurpose
Development
Bank] to
advance loans
and to hold
lands.

Order
granting loan
conclusive of
certain
matters.

117. Subject to the provisions of this Act and the rules made thereunder,
it  shall  be  competent  for  the 5[Co-operative  Agriculture  and  Rural
Multipurpose Development Bank] to advance loans for the purposes referred
to  in  section  111,  and  to  hold  lands 6[or  dwelling  house  in  rural  area]  the
possession  of  which  is  transferred  to  them  under  the  provisions  of  this
Chapter.

118. 7*

*

*

*

*

*

*

*

119. A  written  order  by  the 5[Co-operative  Agriculture  and  Rural
Multipurpose Development Bank], or persons or committee authorised under
the by-laws of the Bank to make loans for all or any of the purposes specified
in section 111, granting, either before or after the commencement of this Act,
a loan to or with the consent of a person metioned therein, for the purpose of
carrying out the work specified therein for the benefit of the land or for the
productive  purpose 8[or  for  the  purpose  of  dwelling  house  in  rural  area]
specified  therein,  shall  for  the  purposes  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 8[or  for  the  purpose  of
dwelling  house  in  rural  area],  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 8[or  for  the
purpose of dwelling house in rural area], as the case may be ; and

(c) that the improvement is one benefiting the land 9[or such dwelling
house]  specified  and  productive  purpose 8[or  for  the  purpose  of  dwelling
house in rural area] concerns the land 9[or such dwelling house]offered in
security, or any part therof as may be relevant.

1 These words were inserted by Mah. 5 of 1990 s. 5(a).
2 These words were substituted for the words “State Agriculture and Rural Development

Bank” by Mah. 41 of 2005, s. 8.

3 These words were substituted for the words “ mortagages and assets ” by Mah. 5 of 1990,

s. 5(b).

4 These words were inserted by Mah. 5 of 1990 s. 5(c).
5 These words were Substituted for the words “Agriculture and Rural Development Bank” by

Mah. 41 of 2005, s. 8.

6 These words were inserted by Mah. 5 of 1990, s. 6.
7 Section 118 was deleted by Mah. 10 of 1988, s. 24.
8 These words were inserted by Mah. 5 of 1990, s. 7 (a).
9 These words were inserted by Mah. 5 of 1990, s. 7 (b).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

109

120.

(1) A  mortgage  executed  in  favour  of 1[Co-operative  Agriculture
and  Rural  Multipurpose  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  Loans  Act,  1883,  or  the
Agriculturists  Loans  Act,  1884,  or  under  any  other  law  for  the  time  being
force.

Priority of
mortgage.

XIX of
1883.
XII of
1884.

Bom.
LXVII of
1948.

(2) Notwithstanding  anything  contained  in  the  *  Bombay  Tenancy  and
Agricultural  Lands  Act,  1948,  or  any  other  corresponding  law  for  the  time
being  in  force  where  a  mortgage  in  favour  of 1[a  Co-operative  Agriculture
and Rural Multipurpose 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 2[Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank].

121. The mortgages, 3[instruments of hypothecation, guarantee, pledge
or  charge]  executed  in  favour  of,  and  all  other  assets  transferred  to 1[a  Co-
operative  Agriculture  and  Rural  Multipurpose  Development  Bank],  by  the
members  thereof,  before  or  after  the  commencement  of  the  Act,  shall,  with
effect  from  the  date  of  such  execution  or  transfer,  be  deemed  to  have  been
transferred  by  such 1[Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank],  to  the 4[State  Co-operative  Agriculture  and  Rural
Multipurpose Development Bank], and shall vest in the 4[State Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank].

6[122. Notwithstanding    anything  contained  in  the  Registration  Act,
1908,  it  shall  not  be  necessary  to  register  a  mortgage,  lease,  hypothecation
deed,  loan  bond,  surety  bond,  gurantee  deed,  promissory  note  or  loan
agreement  executed  in  favour  of  the 1[Co-operative  Agriculture  and  Rural
Multipurpose Development Bank], provided the bank sends, within such time
and  in  such  manner  as  may  be  prescribed  a  copy  of  such  instrument  to  the
concerned  registering  authority ;  and  on  receipt  of  the  copy  the  registering
authority  shall  file  the  same  in  the  relevant  books  prescribed  under  the
Registration  Act,  1908 :

XVI of
1908.

XVI of
1908.

6 These words were sustituted for the words “ an Agriculture and Rural  Development Bank ”

by Mah. 41 of 2005, s. 8.

2 These words were substituted for the words “Agriculture and Rural Developement Bank”

ibid., s. 8.

3 These words were inserted by Mah. 5 of 1990, s. 8(a).
4 These words were substituted for  the words “State Agriculture and Rural Development

Bank” by Mah. 41 of 2005, s. 8.

5 These words were inserted by Mah. 5 of 1990, s. 8(b).
6 Section 122 was substituted by Mah. 5 of 1990, s. 9.
* The short title of the Act has been amended as “ the Maharashtra Tenancy and Agricultural
Lands Act” by Mah. 24 of 2012, s.2 and 3, Schedule, entry 33, with effect from the 1st May
1960.

Mortagages
5[and other
instruments]
executed in
favour of 1[a
Co-operative
Agriculture
and Rural
Multipurpose
Development
Bank] to
stand vested
in4[State
Agriculture
and Rural
Multipurpose
Development
Bank].

Registration
of  Mortgage,
lease, etc.,
executed in
favour of 1[Co-
operative
Agriculture
and Rural
Multipurpose
Development
Bank].

110

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Provided that, any such instrument executed in favour of the bank before
the date of publication of the Maharashtra  Co-operative Societies (Amendmant)
Act,  1989  in  the Official  Gazette,  may  be  sent  to  the  concerned  registering
authority  within the  period  of three  months  from such  date.]

Mortgages
2[and other
instruments]
not to be
questioned on
insolvency of
mortgagors
4[or
executants.]

123. Notwithstanding  anything  contained  in  the  Presidency-towns
Insolvency  Act,  1909  or  the  Provincial  Insolvency  Act,  1920  or  any
corresponding  law  for  the  time  being  in  force,  a  mortgage, 1[or  any  other
instruments  supporting  the  loan]  executed  in  favour  of a 3[Co-operative
Agriculture and Rural Multipurpose Development Bank] shall not be called in
question in any insolvency proceedings on the ground that it was not executed
in good faith for valuable consideration, or on the ground that it was executed
in order to give the Bank a preference over other creditors of the mortgagor
5[or of the executant  of the instrument].

Mah. V
of 1990.

III of
1909.
V of
1920.

Mortagages
7[and other
instruments]
executed by
managers of
joint Hindu
families.

124.

6 *

*

*

*

*

*

125.

(1) Mortgages 7[and other  instruments] in  respect of  loans by 3[a
Co-operative  Agriculture  and  Rural  Multipurpose  Development  Bank]  or
the 3[State  Co-operative  Agriculture  and  Rural  Multipurpose  Development
Bank] either  before or after  the commencement of  this Act, by  the manager
of  Hindu  joint  family  for  the  improvement  of  agricultural  land  or  of  the
methods  of  cultivation  or  for  financing  any  other  means  to  raise  the
productivity of the land, or for the purchase of land, 8[or for creation of new
movable or immovable assets or for the purpose of acquisition, construction,
rebuilding or repairing of a dwelling house in rural area] shall be binding on
every  member  of  such  joint  Hindu  family,  notwithstanding  any  law  to  the
contrary.

(2) In other cases, where a mortgage 9[or other instrument] executed in
favour of 3[a Co-operative Agriculture and Rural Multipurpose Development
Bank] or 3[State Co-operative Agriculture and Rural Multipurpose Development
Bank] either before or after the commencement of this Act, is called in question
on the ground that it was executed by the manager of a Hindu joint family for
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.

1 These words were inserted by Mah. 5 of 1990, s. 10(a).
2 These words were inserted by Mah. 5 of 1990, s. 10 (c)(i).
3 These words were substituted for the words “ an Agriculture and Rural Development Bank ”,

“ State Agriculture and Rural Development Bank ” and “ Agriculture and Rural Development

Bank ” by Mah. 41 of 2005, s.8.

4 These words were added by Mah. 5 of 1990, s. 10 (c)(ii).
5 These words were added by Mah. 5 of 1990, s. 10(b).
6 Section 124 was deleted by Mah.10 of 1988, s. 25.
7 These words were inserted by Mah. 5 of 1990, s. 11(a) (i).
8 These words were inserted by Mah. 5 of 1990, s. 11(a)(ii).
9 These words were inserted by Mah. 5 of 1990, s. 11(b).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

111

XXXII of
1956.

126. Section 8 of the Hindu Minority and Guardianship Act, 1956, shall
apply  to  mortgages 1[and  other  instruments]  in  favour  of 3[a  Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank],  subject  to  the
modification  that  reference  to  the  court  therein  shall  be  construed  as
reference  to  the  Collector  or  his  nominee,  and  the  appeal  against  the  order
of  the  Collector  or  his  nominee  shall  lie  to  the  Commissioner.

IV of
1882.

127.

(1) Notwithstanding anything contained in the Transfer of Property
Act, 1882 or any other law for the time being in force, no mortgagor or property
mortgaged to 3[a Co-operative Agriculture and Rural Multipurpose 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 :

Provided  that,  the  rights  of  the 3[Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank]  shall  be  enforceable  against  the  tenant
purchaser, the lessee or the tenant, as the case may be, as if he himself were
a  mortgagor.

(2) Where land, mortgaged with possession to 3[a Co-operative Agriculture
and Rural Multipurpose Development Bank], is in actual possession of a tenant,
the  mortgagor  or  the 3[Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank],  shall  give  notice  to  the  tenant  to  pay  rent  to  the 1[Co-
operative  Agriculture  and  Rural  Multipurpose  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 3[Co-operative Agriculture
and  Rural  Multipurpose  Development  Bank].

128. Notwithstanding  anything  contained  in  section  121,  all  monies
due  under  the  mortgage  shall  unless  otherwise  directed  by  the 3[State  Co-
operative  Agriculture  and  Rural  Multipurpose  Development  Bank]  or  the
Trustee and communicated to the mortgagor, be payable by the mortgagor to
the 3[Co-operative  Agriculture  and  Rural  Multipurpose  Development  Bank],
and  such  payment  shall  be  as  valid  as  if  the  mortgage  had  not  been  so
transferred  and  the 3[Co-operative  Agriculture  and  Rural  Multipurpose
Development Bank] shall in the absence of specific direction to the contrary,
issued  by  the 3[State  Co-operative  Agriculture  and  Rural  Multipurpose
Development Bank] or Trustee and communicated to the bank, be entitled to
sue  on  the  mortgage  or  take  any  other  proceeding  for  the  recovery  of  the
monies  due  under  mortgage.

1 These words were inserted, by Mah. 5 of 1990, s. 11(c).
2 These words were inserted by Mah. 5 of 1990, s. 12.
3 These words were substituted for the words “ Agriculture and Rural Development Bank”,
“an Agriculture and Rural Development Bank”, “Development Bank” and “State Agriculture
and Rural Development Bank” by Mah. 41 of 2005, s. 8.

Section 8 of Act
XXXII of 1956 to
apply to
mortgages 2[and
other
instruments] to
3[ Co-operative
Agriculture and
Rural
Multipurpose
Development
Bank], subject
to certain
modification.

Restrictions
on lease.

3[Co-operative
Agriculture
and Rural
Multipurpose
Development
Bank] to
receive money
and give
discharge.

112

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Powers of
2[Co-operative
Agriculture
and Rural
Multipurpose
Development
Bank] where
mortgaged or
encumbered
property is
destroyed or
security
becomes
insufficient.

1[129. Where  any  immovable  or  movable  property  mortgaged  or
encumbered in any other manner to an 2[Co-operative Agriculture and Rural
Multipurpose  Development  Bank]  is  wholly  or  partially  destroyed,  or  for
any  reasons  the  security  or  surety  is  rendered  insufficient  and  the  debtor,
having  been  given  a  reasonable  opportunity  by  the  bank  to  provide  further
security  or  surety  enough  to  render  the  whole  security  or  surety  sufficient,
or to repay such portion of the loan as may be determined by the bank, has
failed to provide such security or surety or to repay such portion of the loan,
then the whole of the loan shall be deemed to fall due at once ; and the bank
shall  be  entitlted  to  take  action  against  such  debtor  under  section  132  or
section  133  for  the  recovery  thereof.

Explanation.—Security  shall  be  deemed  insufficient  within  the  meaning
of  this  section,  unless  the  value  of  the  mortgaged  or  encumbered  property
(including  improvements  made  thereon)  exceeds  the  amount  for  the  time
being  due  on  the  mortgage  or  encumbrance  by  such  proportion  as  may  be
specified  in  the  rules,  regulations  or  the  bye-laws  of  the 2[Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank.]

Rights of
2[Co-operative
Agriculture
and Rural
Multipurpose
Development
Bank] to buy
mortgaged
property.

130.

(1) Property  purchased  under  section  133(3)  by,  and  property
transferred  under  section  100  to  the 2[Co-operative  Agriculture  and  Rural
Multipurpose Development Bank] 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 favour  only of  agriculturists eligible  to hold  land
under  the  Bombay  Tenancy  and  Agricultural  Lands  Act,  1948 *  or  any
corresponding law for the time being in force, 3[or in favour of Tribals, if such
property  belongs  to  a  Tribal]  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.

4[Explanation.—For  the  purposes  of  this  sub-section  and  section  133A,
‘ Tribal ’ means a person belonging to a Scheduled Tribes within the meaning
of  the Explanation  to  section  36  of  the  Maharashtra  Land  Revenue  Code,
1966, and includes his successor in interest.]

(2) Nothing  contained  in  any  law  for  the  time  being  in  force  fixing  the
maximum  limit  of  agricultural  holdings  shall  apply  to  the  acquisition  or
holding  of  land  by  the 2[Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank]  under  this  section.

131. All  loans  granted  by  the 2[Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank],  all  interests  (if  any)  chargeable  thereon,
and costs (if any), incurred in making the same, shall when they become due,
be  recoverable  by  the 2[Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank]  concerned.

Recovery of
loans by
5[Co-operative
Agriculture
and Rural
Multipurpose
Development
Bank].

Bom.
LXVII of
1948.

Mah.
XLI of
1966.

1 Section 129 was substituted for the original by Mah. 5 of 1990, s.13.
2 These words were substituted for the words “ Agriculture and Rural  Development Bank ” by

Mah. 41 of 2005, s.8.

3 These words were inserted by Mah. 5 of 1990, s. 14(a).
* Short title of the Act has been amended as “the Maharashtra Tenancy and Agricultural

Lands Act” by Mah. 24 of 2012, s. 2 & 3, schedule, entry 33, with effect from the 1st May

1960.

4 This Explanation was added by Mah. 5 of 1990, s. 14 (b).
5 These words were substituted for the words “Development Banks” by Mah. 41 of 2005, s. 8.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

113

Power to
distrain.

1[132.

(1) If  any  instalment  payable  under  a  mortgage,  hypothecation
deed,  loan  bond,  surety  bond  or  other  instrument  executed  in  favour  of  the
2[Co-operative  Agriculture  and  Rural  Multipurpose  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  bank  shall,  in  addition  to  any  other
remedy  available  to  the  bank,  apply  to  the  Registrar  for  recovery  of  such
instalments  or  part  thereof  by  distraint  and  sale  of  the  produce  of  the
mortgaged or otherwise encumbered land and properties of and on such land
including  the  standing  crops  thereon  or  the  movable  property  encumbered
under  hypothecation  deed  or  loan  bond.  The  instalments  due  or  any  part
thereof  shall  also  be  recoverable  by  distraint  and  sale  of  the  new  property
created by the debtor by converting the original movable property for which
the loan was granted by the bank.

IV of
1882.

(2) On receipt of such application, the Registrar shall, notwithstanding
anything contained in the Transfer of Property Act, 1882, take action in the
manner  prescribed  for  the  purpose  of  distraining  and  selling  of  the  produce
or  the  properties  referred  to  in  sub-section  (1) :

IV of
1882.

Provided  that,  no  distraint  shall  be  made  after  the  expiry  of  twelve

months from the date on which the instalment fell due].

3[133.

(1) Notwithstanding  anything  contained  in  the  Transfer  of
Property  Act,  1882,  the 2[Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank]  or  any  person  authorised  by  it  in  this  behalf  shall,  in
case  of  default  of  payment  of  mortgage  money  or  loan  amount  or  any  part
thereof,  have  power,  in  addition  to  any  other  remedy  available  to  the  bank,
to  bring  the  mortgaged  or  otherwise  encumbered  property  to sale  by  public
auction in the village in which such property is situated or at the nearest place
of  public  resort,  without  the  intervention  of  the  Court :

Provided  that,  no  action  shall  be  taken  under  this  sub-section  and  no

such  power  shall  be  excercised,  unless  and  until—

Sale of
mortgaged or
encumbered
property.

(a) the 2[Co-operative  Agriculture  and  Rural  Multipurpose
Development Bank] has been previously authorised to exercise the power
conferred  under  this  sub-section  after  hearing  the  objection  if  any,  of
the  debtor  or  debtors ;

(b) notice in writing requiring payment of such debt or loan money

or  part  thereof  has  been  served  upon,—

(i) the  debtor  or  each  of  the  debtors ;
(ii) any  person  who  has  any  interest  in  or  charge  upon  such
property or upon the right to redeem the same as far as is known to
the bank ;

(iii) any surety or the payment of the debt or loan or any part

thereof ;  and

(iv) any  creditor  of  the  debtor  who  has  in  a  suit  for
administration of his estate obtained a decree for sale of the concerned
property ;  and
(c) default has  been made  in payment  of such  debt or  loan or  part

thereof,  for  three  months  after  service  of  the  notice.

1 Section 132 was substituted for the original by Mah. 5 of 1990, s.15.
2 These words were substituted for the words “Agriculture and Rural Development Bank” by

Mah. 41 of 2005, s. 8.

3 Section 133 was substituted for the original by Mah. 5 of 1990, s.16.

H 4112—16

114

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Mortgaged or
encumbered
property of
Tribal not to
be sold to
non-Tribal at
public auction
under section
133.

Confirmation
of sale.

Disposal of
sale proceeds.

(2) Where  the 1[Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank]  fails  to  take  action  against  the  defaulter  under  section
129  or  132  or  under  this  section,  the  Trustee  may  take  such  action.  If  such
action  is  taken  by  the  Trustee,  the  provisions  of  this  Chapter  and  of  any
rules precribed shall apply in respect thereto, as if all references to the 1[Co-
operative  Agriculture  and  Rural  Multipurpose  Development  Bank]  in  the
said  provision  were  references  to  the  Trustee.

(3) Notwithstanding  anything  contained  in  any  other  law  for  the  time
being in force, it shall be lawful for the 1[Co-operative Agriculture and Rural
Multipurpose Development Bank] to purchase any mortgaged or encumbered
property  sold  under  this  Chapter.]

2[133A. Notwithstanding anything contained in this Act or in any other
law for the time being in force, where the mortgaged or encumbered property
belongs  to  a  Tribal,  it  shall  not  be  sold  to  any  non-Tribal  bidder  at  public
auction under section 133 or otherwise transferred to a non-tribal under the
provisions  of  this  Act.]

134.

(1) On effecting the sale by a 1[Co-operative Agriculture and Rural
Multipurpose  Development  Bank]  under  section  133,  the  bank  shall,  in  the
prescribed manner, submit to the 3[State Co-operative Agriculture and Rural
Multipurpose  Development  Bank]  and  the  Registrar  a  report  setting  forth
the manner in which the sale has been effected and the result of the sale, and
the 3[State  Co-operative  Agriculture  and  Rural  Multipurpose  Development
Bank] may, with the approval of the Registrar, confirm the sale or cancel it.

(2) Where  the  sale  is  effected  by  the 3[State  Co-operative  Agriculture
and  Rural  Multipurpose  Development  Bank]  or  the  Trustee  under  section
133,  the 3[State  Co-operative  Agriculture  and  Rural  Multipurpose  Develop-
ment 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 which  the sale
has been effected and the result of the sale, and the Registrar may confirm or
cancel  the  sale.

135. The  proceeds  of  every  sale  effected  under  section  133  and
confirmed  under  the  preceding  section,  shall  be  applied  first  in  payment  of
all  costs,  charges  and  expenses  incurred  in  connection  with  the  sale  or
attempted sales, secondly in payment of any or all interest due on account of
the  mortgage 4[or  encumberance]  in  consequences  whereof  the 3[mortgaged
or  otherwise  encumbered  property]  was  sold,  and  thirdly  in  payment  of  the
principal due on account of the mortagage 4[or encumberance] including costs
and  charges  incidental  to  the  recovery.

1 These words were substituted for the words “Agriculture and Rural Development Bank”

 by Mah. 41 of 2005, s. 8.

2 Section 133A was inserted by Mah. 5 of 1990, s. 17.
3 These words were substituted for the words “Agriculture and Rural Development Bank”

and “State Agriculture and Rural Development Bank” by Mah. 41 of 2005, s. 8.

4 These words were inserted by Mah. 5 of 1990, s. 18 (a).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

115

Certificate to
purchase
delivery of
property and
title of
purchase.

XVI of
1908.

If there remain any residue from the proceeds of sale, the same shall be
paid to the person proving himself interested in the property sold, or if there
are more such persons than one, then to such persons upon their joint receipt
or  according  to  their  respective  interest  therein,  as  may  be  determined  by
1[Co-operative  Agriculture  and  Rural  Multipurpose  Development  Bank] :

Provided that,  before any  such payments are  made the  unsecured dues

owing—

(a) from  the  mortgagor 2[or  the  debtor]  to  the 1[Co-operative
Agriculture and Rural Multipurpose Development Bank] may be adjusted,
and

(b) from  any  member  or  past member  or  whom  the  mortgagor 2[or
the debtor] is indebted may also be adjusted under the written authority
given by such member and past member, and after holding such inquiry
as may be deemed necessary.

136.

(1) Where  a  sale  of  mortaged  property  has  become  absolute
under  section  134  and  the  sale  proceeds  have  been  received  in  full  by  the
1[Co-operative  Agriculture  and  Rural  Multipurpose  Development  Bank],  the
bank shall grant a certificate to the purchaser in the prescribed form certifying
the property sold, the sale-price, the date of its sale, the name of the person
who at the 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 certficate
the Sub-Registrar appointed under the Indian Registration Act, 1908, within
the limits of whose jurisdiction the whole or any part of the property specified
in  the  certificate  is  situated,  shall  enter  the  contents  of  such  certificate  in
his  register  relating  to  immovable  property.

(2)  (a) Where  the  mortgaged  property  sold  is  in  the  occupancy  of  the
mortgagor, or of some person on his behalf, or some person claiming under a
title  created  by  the  mortgagor,  subsequent  to  the  mortgage  in  favour  of  the
3[State Co-operative Agriculture and Rural Multipurpose Development Bank]
or 3[Co-operative  Agriculture  and  Rural  Multipurpose  Development  Bank]
and  a  certificate  in  respect  thereof  has  been  granted  under  the  foregoing
sub-section,  the  Collector  shall,  on  the  application  of  the  purchaser,  order
delivery to be made by putting such purchaser or any person whom he may
appoint  to  receive  delivery  on  his  behalf,  in  possession  of  the  property.

(b) 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  under  the  foregoing  sub-section,  the  Collector  shall,  on  the
application of the purchaser and after notice to such tenants or other persons,
order the delivery to be made by affixing copy of the certificate  of sale in a
conspicuous  place  on  the  property  and  proclaiming  to  the  occupant  by  beat
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  exercise  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 :

1 These words were substituted for the words “Agriculture and Rural Development Bank, State

Agriculture and Rural Development Bank” by Mah. 41 of  2005, s. 8.

2 These words were inserted by Mah. 5 of 1990, s. 18(c).
3 These words were substituted for the words “State Agriculture and Rural Development Bank”

by Mah. 41 of  2005, s. 8.

H 4112—16a

116

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Provided that, any person who suffers damage on account of unauthorised,
improper or irregular exercise of such power shall have a remedy in damages
against the 1[Co-operative Agriculture and Rural Multipurpose Development
Bank].

Recovery of
loans on
certificate by
Registrar.

137.

(1) Notwithstanding anything contained in sections 91 and 98, on
an application made by a 1[Co-operative Agriculture and Rural Multipurpose
Development Bank] for the recovery of arrears of any sum advanced by it to
any of its members and on its furnishing a statement of accounts in respect of
the arrears, the Registrar 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 sub-section (1) shall be final and
conclusive  as  to  arrears  due.  The  arrears  stated  to  be  due  therein  shall  be
recoverable  according to  the law  for the  time being  in force  for the  recovery
of  arrears  of  land  revenue.

(3) It  shall  be  lawful  to  the  Collector  to  take  precautionary  measures
authorised by sections 140 to 144 of the Bombay Land Revenue Code, 1879*
or  any  law  or  provision  corresponding  thereto  for  the  time  being  in  force
until    the  arrears  due  to  the 1[Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank]  together  with  interest  and  any  incidental
charges incurred in the recovery of such arrears, are paid or security of such
arrears  is  furnished  to the  satisfaction  of  the  Registrar.

Bom. V
of 1879.

5[Mode of
recovery by
Collector.]

(4) It  shall  be  competent  for  the  Registrar  or  a  person  authorised  by
him  to  direct  conditional  attachment  of  the  property  of  the  mortgagor  until
the  arrears  due  to  the 1[Co-operative  Agriculture  and  Rural  Multipurpose
Development  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.

2*

*

*

*

*

(2) Any  amount  due  to 3[a 1[Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank]  (including  cost  of  recovery  thereof)  shall
on an application by it in this behalf] be recoverable by the Collector, or any
officer 4[  including  an  officer  of  the 1[Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank]]  specially  authorised  by  the  Collector  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 ;

(b) out of the land for benefit of which the loan has been granted—

as if they were arrears of land revenue due in respect of that land ;

1 These words were substituted for the words “Agriculture and Rural Development Bank” by

Mah. 41 of 2005, s. 8.

2 Sub-section (1) was deleted by Mah. 33 of 1963, s. 27 (a).
3 These words were substituted for the words “a Land Development Bank shall ”by Mah. 33

of 1963, s. 27(b).

4 These words were inserted by Mah. 10 of 1988, s. 26.
5 This marginal note was substituted by Mah. 33  of 1963, s. 27(c).

* Now see the Maharashtra Land Revenue Code, 1966.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

117

(c) from  a  surety  (if  any)—as  if  they  were  arrears  of  land  revenue

due by him ;

(d) 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.

1[139. At  any  sale  of  movable  or  immovable  property,  held  under
the  provisions  of  this  Chapter,  no  officer or  employee  or  any  member  of  the
family of such officer or employee of an 2[Co-operative Agriculture and Rural
Multipurpose  Development Bank],  except  on behalf  of the  bank  of which  he
is  an  officer  or  an  employee,  and  no  person  having  any  duty  to  perform  in
connection with such sale, shall either directly or indirectly bid for or acquire
or  attempt to  acquire  any  interest in  such  property.

Officers or
members of
family not to
bid at auction
sales.

Section 40 of
Bom. XXVIII
of 1947 not to
apply to
alienation in
favour of
2[Agriculture
and Rural
Multipurpose
Development
Bank].

Provision for
Guarantee
Funds to meet
certain losses.

Explanation.—For the purposes of this section, the expression “ member
of  the  family ”  means  wife,  husband,  father,  mother,  brother,  sister,  son,
daughter,  son-in-law  or  daughter-in-law.]

Bom.
XXVIII
of 1947.

140. Nothing contained in section 40 of the Bombay Agriculture Debtors
Relief Act, 1947* or any corresponding law for the time being in force in any
part of the State shall apply to any alienation in favour of the 2[Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank].

141.

(1) It  shall  be  competent  for  the  State  Government  to  constitute
one or more Guarantee Funds on such terms and conditions as it may deem
fit,  for  the  purpose  of  meeting  losses  that  might  arise  as  a  result  of  loans
being  made  by  the 2[Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank]  on  titles  to  immovable  property  subsequently  found  to
be  defective  or  for  any  other  purpose  under  this  Chapter,  for  which  in  the
opinion  of  the  State  Government,  it  is  necessary  to  provide  for  or  create  a
separate  Guarantee  Fund.

(2) The 3[State  Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank]  and  the 3[Co-operative  Agriculture  and  Rural
Multipurpose Development Bank] shall contribute to such funds at such rate
as  may  be  prescribed,  and  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.

1 This section was substituted for the original by Mah. 20 of 1986, s. 56.
2 These words were substituted for the words “Agriculture and Rural Development Bank” by

Mah. 41 of 2005, s. 8.

3 These words were substituted for the words “a Agriculture and Rural Development Bank”,

“Agriculture and Rural Development Banks”, “ Agriculture and Rural Development Bank ”

and “ State Agriculture and Rural Development Bank ”, respectively by Mah. 41 of 2005,

s. 8.

* Now, the short title of the Act has been amended as the Maharashtra Agricultural Debtors

Relief Act, by Mah. 24 of 2012, s. 2 and 3, Schedule, entry 26, with effect from the 1st May

1960.

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[1961 : Mah. XXIV

142.

It  shall  be  competent  for  the  Registrar  to  permit  any 1[society]
2[or a class of societies] to function as a 3[Co-operative Agriculture and Rural
Multipurpose  Development  Bank]  under  such  terms  and  conditions  and  for
such period as he may deem fit.

Registrar’s
power to
permit any
1[society] 2[or
class of
societies] to
function as
3[ Co-operative
Agriculture
and Rural
Multipurpose
Development
Bank.]

Service of
notice.

143. The provisions of sections 102 and 103 of the Transfer of Property
Act, 1882, and of any rules made under section 104 thereof, shall apply, so far
as may be, in respect of all notices to be served under this Chapter.

IV of
1882.

Transfer of
rights and
liabilities  of
Government
in respect of
schemes
sanctioned
under Bom.
XXVIII of
1942.

Bom.
XXVIII
of
1942.

4[143A.

(1) Where any works, included in a land improvement scheme
which  has  come  into  force  under  the  Bombay  Land  Improvement  Schemes
Act, 1942*, are carried out at the cost or part cost of the State Government,
and  such  cost  is  to  be  recovered  from  the  owners  of  lands  (other  than
Government)  included  in  the  scheme  as  shown  in  the  statement  prepared
under section 13 5[or in the interim or final statement] prepared under section
13A of that Act, then notwithstanding anything contained in this Act, all the
rights and liabilities of the State Government for the recovery of the cost or
part cost from the owners of lands shall stand transfered to a 1[Co-operative
Agriculture  and  Rural  Multipurpose  Develoment  Bank],  in  relation  to  such
owners  of  land  and  subject  to  such  terms  and  conditions  (including  any
condition  regarding  giving  of  any  guarantee  by  the  State  Government)  as
may be agreed upon between the State Government and such 1[Co-operative
Agriculture and Rural Multipurpose Development Bank]; and for arriving at
such agreement, every owner of land shall produce before the Bank all such
documents, and other evidence relating to his land including in such scheme
as the Bank may require.

(2) On such transfer  of rights and liablities of  the State Government,
the 1[Co-operative  Agriculture  and  Rural  Multipurpose  Development  Bank]
shall pay to the State Government an amount equal to the extent of the liability
accepted by it under such agreement, and the State Government shall inform
the owners of lands concerned of such transfer; and thereupon, the provisions
of  this  Act  and  rules  thereunder  in  so  far  as  they  provide  for  advancing  of
loans  (including  provision  for  mortgaging  of  property)  and  recovery  thereof
shall apply in relation to the amount of cost to be recovered from each owner

1 This word was substituted for the words “Co-operative Bank” by Mah. 20 of 1986, s. 57.
2 These words were inserted by Mah. 10 of 1988, s. 27.
3 These words were substituted for the words “a Agriculture and Rural Development Bank”,
“Agriculture and Rural Development Banks”, “ Agriculture and Rural Development Bank ”
and  “ State  Agriculture  and  Rural  Development  Bank ”,  respectively  by  Mah.  41  of
2005, s. 8.

4 Section 143A was inserted by Mah. 35 of 1969, s. 2.
5 These  words  were  substituted  for  the  words  “or  in  the  final  statement”  by  Mah.  10  of

1971, s. 2.

* The  short  title  of  the  Act  has  been  amended  as  “the  Maharashtra  Land  Improvement
Schemes Act” by Mah. 24 of 2012, s. 2 and 3, Schedule, entry 22, with effect from the 1st May
1960.

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Maharashtra Co-operative Societies Act, 1960

119

Bom.
XXVIII of
1942.

of  land  as  they  apply  in  relation  to  advancing  of  loans and  recovery  thereof
(including  interest)  as  if  such  owner  was  a  member  of  the 1[Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank].  The  transfer  of
the  rights  and  liabilities  and  payment  made  in  accordance  therewith  shall
discharge the owners of land of their liability to make payment to the State
Government under the *Bombay Land Improvement Schemes Act, 1942, but
to  the  extent  only  of  their  respective  liability  accepted  by  the  Bank].

144. The  committee  of  the 1[State  Co-operative  Agriculture  and  Rural
Multipurpose Development Bank] shall have a general power of supervision
over 1[Co-operative Agriculture and Rural Multipurpose Development Bank]
and  may,  with  the  previous  sanction  of  the  State  Government,  make
regulations, not inconsistent with this Act or the rules made thereunder, for
all or any of the following matters, namely:—

(a) for  the  inspection  of  the  account  books  and  proceedings  of 1[Co-

operative  Agriculture  and  Rural  Multipurpose  Development  Bank] ;

(b) for the submission of returns and reports by such banks in respect

of  their  transactions ;

(c) for the  periodical settlement of  accounts between such  banks and
the 1[State Co-operative Agriculture and Rural Multipurpose Development
Bank]  being  accounts  relating  to  the  payment  of  amounts  recovered  by
such banks on mortgages transferred to the 2[State Co-operative Agriculture
and  Rural  Multipurpose  Development  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  mortgagors ;
(f) the  conditions  of  service  of  employees  of  such  banks ;
(g) the programme and policy to be followed by such banks for making

loans ;

(h) the type and extent of securities to be obtained by such banks for

advancing  laons ;

(i) generally,  for  the  purpose  of  safeguarding  the  interest  of  the
parties,  furtherance  of  activities  of  such  banks,  and  carrying  out  the
purposes  of  this  Chapter.

2[144-1A.

(1) Notwithstanding  anything  in  this  Act  or  in  any  rules  or
bye-laws  made  thereunder,  it  shall  be  lawful  for  the  State  Government  to
provide  from  time  to  time,  by  an  order  made  under  and  in  accordance  with
the provisions of section 18, for the re-ogranisation of the 2 [State Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank],  either  by
amalgamating  with  it  all  or  any  of  the 1[Primary  Co-operative  Agriculture
and Rural Multipurpose Development Bank] or otherwise ; or for the division
of the 1[State Co-operative Agriculture and Rural Multipurpose Development
Bank]  into  a 1[State  Co-operative  Agriculture  and  Rural  Multipurpose
1 These words were substituted for the words “a Agriculture and Rural Development Bank”,
“Agriculture and Rural Development Banks”, “ Agriculture and Rural Development Bank ”

and  “ State  Agriculture  and  Rural  Development  Bank ”,  respectively  by  Mah.  41  of

2005, s. 8.

2 Section 144-1A was inserted by Mah. 43 of 1972, s. 4.
* Now the short title is, Maharashtra Land Improvement Schemes Act, as amended by Mah.

24 of 2012, s.2 and 3, Schedule, entry 22, with effect from the 1st May 1960.

Power to
Committee of
1[State  Co-
operative
Agriculture
and Rural
Multipurpose
Development
Bank] to
supervise on
1[Agriculture
and Rural
Development
Bank] and
make
regulations.

Reorganisation,
amalgamation
or division of
1[Co-operative
Agriculture and
Rural
Multipurpose
Development
Bank], in public
interest, etc.

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Development Bank] and one or more 1[District Co-operative Agriculture and
Rural Multipurpose Development Bank] as may be considered necessary ; or
for the  amalgamation or division of all or any of the 1[District Co-operative
Agriculture and Rural Multipurpose Development Bank] among themeselves.
Accordingly,  for  the  purposes  of  this  section,  in  section  18  and  in  any  rules
made  thereunder,  for  the  word  “ Registrar ”  wherever  it  occures,  the  words
“ State  Government ”  shall  be  deemed  to  be  substituted.

(2) Where  there  is  no 1[District  Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank]  in  the  State  or  in  any  part  thereof,  or
1[District  Co-operative  Agriculture  and  Rural  Multipurpose  Development
Bank]  are  merged  with  the 1[State  Co-operative  Agriculture  and  Rural
Multipurpose  Development  Bank], 1[State  Co-operative  Agriculture  and
Rural Multipurpose Development Bank] may establish and maintain as many
branches as may be deemed necessary ; and shall function also as a 1[District
Co-operative  Agriculture  and  Rural  Multipurpose  Development  Bank]
throughout  the  State  or  in  the  area  concerned,  as  the  case  may  be.  Any
reference  to  a 1[District  Co-operative  Agriculture  and  Rural  Multipurpose
Development Bank] in this Act, or any other law for the time being in force
or in any instrument, shall then, as the context may require, be construed as
a  reference  to  the 1[State  Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank]  or  its  branches  concerned,  or  be  read  subject  to  such
modifications as may be necessary due to absence of any 1[District Co-operative
Agriculture  and  Rural  Multipurpose  Development  Bank]  or  due  to  merger
of  the 1[District  Co-operative  Agriculture  and  Rural  Multipurpose
Development  Bank]  or  Banks  in  the 1[State  Co-operative  Agriculture  and
Rural  Multipurpose  Development  Bank]].

144-1B

Chapter  XI-A

2 *

3 *

*

*

*

*

*

*

*

*

*

*

*

*

CHAPTER  XII

OFFENCES AND PENALTIES

Prohibition of
use of the
word “Co-
operative”.

145. (1) No  person,  other  than  a  society  registered,  or  deemed  to  be
registered,  under  this  Act,  and  a  person  or  his  successor  in  interest  of  any
name  or  title  under  which  he  traded  or  carried  on  business  at  the  date  on
which  this  Act  comes  into  force,  shall  without  the  sanction  of  the  State
Government, function, trade or carry on business under any name or title of
which the word “ co-operative ” or its equivalent in any Indian language, forms
part.

(2) Every person contravening the provisions of the foregoing sub-section
shall, on conviction, be punished with fine which may extend to five hundred
rupees.

1 These words were substituted for the words “Agriculture and Rural Development Bank”,
“ State Agriculture and Rural Development Bank ” and “Primary Agriculture and Rural

Development Banks”, by Mah. 41 of 2005, s. 8.

2 Section 144-1B was deleted by Mah. 10 of 1988, s. 28.
3 Chapter XI-A including sections 144-A to 144-Y were deleted by Mah. 16 of 2013, s. 71.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

121

146.

It shall be an offence under this Act, if,—

Offences.

(a) any  member  of  a  society  transfers  any  property  or  interest  in
property  in  contravention  of  sub-section  (2)  of  section  47  or  any  person
knowingly  acquires, or  abets in  the  acquisition of,  such property ;  or

(b) any  employer  and  every  director,  manager,  secretary  or  other
officer  or  agent  acting  on  behalf  of  such 1[employer  who  without  any
sufficient  cause  fails  to  pay  a  co-operative  society  amount  deducted  by
him from its employee within a period of fourteen days from the date on
which  such  deduction  is  made,  and  also  any  person  who,]  without
sufficient cause, fails to comply with sub-section (2) of section 49 ; or

(c) a committee of a society or an officer or member thereof fails to

invest funds of such society in the manner required by section 70 ; or

(d) any person, collecting the share money for a society in formation,
does  not  within  a  reasonable  period  deposit  the  same  in  the  State  Co-
operative Bank, or a Central Co-operative Bank, or an urban Co-operative
Bank, or a postal savings Bank ; or

(e) any person, collecting the share money for a society in formation,
makes use of the funds so raised for conducting any business or trading
in the  name of a society  to be registered or  otherwise ; or

2[(e-1) any person, who collects share money or any other sum
by  misrepresentation  to  the  members  or  prospective  members  in
the  name  of  the  society  to  be  registered,  or  after  registration  of  a
society  by  such  misrepresentation,  or  otherwise ;  or

(e-2) any person knowingly gives a false certificate in whatever
form  showing  that  a  person  is  or  is  not  a  “ defaulter ”  within  the
meaning of  that expression in  the Explanation to clause  (i) of  sub-
section (1) of 3[section  73CA] ;  or]
(f ) a  committee  of a  society,  or  an  officer  or member  thereof,  fails
to comply with the provisions of sub-section (2), 4[(2A),] (3) or (4) of section
75 ; or

(g) 5[a  co-operative  society  or  an  officer  or  member  thereof  wilfully
makes a false return or fails to furnish a return under section 75 or 79 of
the  Act,  or  furnishes  false  information  or  wilfully  fails  to  furnish  any
information required from him by a person holding an inquiry under section
83, person authorised under section 88 or as required under any provisions
of  this  Act,]  any  officer  or  member  of  a  society  who  is  in  possession  of
information, books and records, fails to furnish such information or produce
books  and  papers,  or  give  assistance  to  a  person  appointed  or  authorised
by the State Government or the Registrar under section 6[77A, 78, 78A, 81,
83, 84, 88, 89A, 94, 103, or 110A ;] or

1 These words were substituted for the words “employer who” by Mah. 16 of 2013, s. 72(a).
2 These clauses were inserted by Mah. 29 of 1986, s. 59.
3 This word, figures and letters were substituted for the word, figures and letters “section 73-

FF” by Mah. 16 of 2013, s. 72(b).

4 These brackets, figure and letter were substituted for the words, brackets and figure “sub-

section (2)” by Mah. 16 of 2013, s. 72(c).

5 This portion was inserted by Mah. 16 of 2013, s. 72(d)(i).
6 These figures, letters and word were substituted for the figures and word “78, 81, 83, 84, 94

or 103” by Mah. 16 of 2013, s. 72(d)(ii).

H 4112—17

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

1[(h) any  officer  or  custodian  who  wilfully  fails  to  hand  over  custody
of  books,  accounts,  documents,  records,  cash,  security  and  any  other
property  belonging  to  a  co-operative  society  of  which  he  is  an  officer  or
custodian, to an authorised person or, to a person appointed under sections
77A,  78,  78A,  103  or  110A,  or  any  other  person  appointed  under  this
Act ;  or

(h-1) a committee  of a  society or  an officer  or member  thereof

involved  in  corrupt  practices  during  the  election ;  or]

(i) a committee of a society with a working capital of fifty thousand
rupees  or  more,  or  any  officer  or  a  member  thereof,  fails  without  any
reasonable  excuse  to  give  any  notice,  send  any  return  or  document,  do
or allow to be done anything, which the committee, officer or member is
by this Act required to give, send, do or allow to be done or comply with
orders  made  under  section  79 ;  or

(j) 2[any person, wilfully or without any reasonable excuse, disobeys
any summons, requisition or lawful written order issued under sections
81, 83, 88, or any other provisions of the Act ; or] a committee of a society
or  an  officer  or  member  thereof  wilfully  neglects  or  refuses  to  do  any
act,  or  to  furnish  any  information  required  for  the  purposes  of  this  Act
by  the  Registrar,  or  other  person  duly  authorised  by  him  in  writing  in
this behalf ; or

(k) a committee of a society, or an officer or member thereof, wilfully
makes a false return, or furnishes false information, or fails to maintain
proper  accounts ;  or

(l) any officer, member, agent or servant of a society fails to comply

with the requirements of sub-section (4) of section 81 ; or

3[(l-1) the  Committee  fails  to  submit  audit  rectification  report
to the Registrar and the annual general body meeting as per section
82 ; or]

(m) any  officer  or  a  member  of  a  society  wilfully  fails  to  comply

with  any  decision,  award  or  order  passed  under  section 4[96] ;  or

(n) a  member  of  a  society  fraudulently  disposes  of  property  over
which the society has a prior claim, or a member or officer or employee
or any person disposes of his property by sale, transfer, mortagage, gift
or  otherwise,  with  the  fraudulent  intention  of  evading  the  dues  of  the
society ;  or

(o) any  officer  of  a  society  wilfully  recommends,  or  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 person ; or

(p) any officer or member of a society destroys, mutilates, tampers
with,  or  otherwise  alters,  falsifies  or  secretes  or  is  privy  to  the
destruction, mutilation, alteration, falsification or secreting of any books,
papers  or securities  or makes,  or is  privy  to the  making of  any false  or
fraudulent entry in any register, book of account or document belonging
to  the  society ;  or

1 These clauses were substituted for clause (h) by Mah. 16 of 2013, s. 72(e).
2 This portion was inserted by Mah. 16 of 2013, s. 72(f).
3 Clause (l-1) was inserted by Mah. 16 of 2013, s. 72(g).
4 These figures were substituted for the figures “93” by Mah. 33 of 1963, s. 28.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

123

(q) any  officer  or  member  of  a  society  or  any  person  does  any  act

declared by the rules to be an offence.

Explanation.—For  the  purpose  of  this  section,  an  officer  or  a  member
referred to in the section shall include past officer and past member, as the
case may be.

147. Every  society,  officer  or  past  officer,  member  or  past  member,
employee or past employee of a society, or any other person who commits an
offence  under  section  146  shall,  on  conviction,  be  punished,—

Punishments
for offences
under section
146.

(a) if  it  is  an offence   under   clause  (a) of that section,  with
imprisonment for a term which may extend to six months, or with fine
which may extend to 1[five thousand rupees], or with both ;

(b) if  it  is  an offence under clause  (b) of that section,  with
imprisonment for a term which may extend to 2[three years] or with fine
which may extend  to 3[fifteen thousand  rupees], or  with both ;

(c) if it is an offence under clause (c) of that section, with fine  which

may  extend  to 4[five  thousand  rupees] ;

(d) if it is an offence under clause (d) of that section, with fine which

may  extend  to 5[five  thousand  rupees] ;

(e) if  it  is  an  offence  under  clause  (e) of  that  section,  with
imprisonment for a term which may extend to one year, or with fine,  or
with  both ;

6[(e-1) if it is an offence under clause (e-1) of that section, with
imprisonment for a term which may extend to three years, or with
fine which may extend to 7[fifteen thousand rupees],  or with both ;

(e-2) if  it is  an offence  under clause  (e-2) of  that  section,  with
imprisonment for a term which may extend to three years, or with
fine which may extend to 8[fifteen thousand rupees], or with both ;]

(f) if it is an offence under clause (f) of that section, with fine which

may  extend  to 9[five  thousand  rupees] ;

(g) if it is an offence under clause (g) of that section, with fine which

may  extend  to 10[five  thousand  rupees] ;

(h) if it is an offence under clause (h) of that section, with fine which

may  extend  to 11[five  thousand  rupees] ;

12[(h-1) if it is an offence under clause (h-1) under that section,

with fine which  may extend to five  thousand rupees ;]

1 These words were substituted for the words “five hundered rupees” by Mah. 16 of 2013, s. 73(a).
2 These words were substituted for the words “one month” by Mah. 20 of 1986,  s. 60(a).
3 These  words  were  substituted  for  the  words  “five  thousand  rupees”  by  Mah.16

of 2013, s. 73(b).

4 These words were substituted for the words “five hundred rupees” by Mah. 16 of 2013, s. 73(c).
5 These words were substituted for the words “five hundred rupees” by Mah. 16 of 2013, s. 73(d).
6 These clauses were inserted by Mah. 20 of 1986, s. 60(b).
7 These  words  were  substituted  for  the  words  “five  thousand  rupees”  by  Mah.  16

of 2013, s. 73(e).

8 These words were substituted for the words “five thousand rupees” by Mah. 16 of 2013, s. 73( f ).
9 These words were substituted for the words “two hundred and fifty rupees”, by Mah. 16 of

2013, s. 73(g).

10 These words were substituted for the words “five hundred rupees”  by Mah. 16 of 2013, s. 73(h).
11 These words were substituted for the words  “five hundred rupees” by Mah. 16 of  2013, s. 73(i).
12 Clause (h-1) inserted by Mah. 16 of 2013, s. 73(j).

H 4112—17a

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(i) if it is an offence under clause (i) of that section, with fine which

may  extend  to 1[five  thousand  rupees] ;

(j) if  it  is  an  offence  under  clause  (j) of  that  section,  with
imprisonment  for  a  term  which  may  extend  to  one  month,  or  with  fine
which may extend to 2[five thousand rupees], or with both ;

(k) if  it  is  an  offence  under  clause  (k) of  that  section,  with
imprisonment  for  a  term  which  may  extend  to  one  year  or  with  fine
which may extend to 3[ten thousand rupees], or with both ;

(l) if it is an offence under clause (l) of that section, with fine which

may  extend  to 4[one  thousand  rupees] ;

5[(l-1) if  it  is  an  offence  under  clause  (l-1)  under  that  section,

with fine which  may extend to five  thousand rupees ;]

(m) if  it  is  an  offence  under  clause  (m) of  that  section,  with
imprisonment  for a  term which  may extend  to  six months,  or with  fine
which may extend to 6[five thousand rupees], or with both ;

(n) if  it  is  an  offence  under  clause  (n) of  that  section,  with
imprisonment  for a  term which  may extend  to  six months,  or with  fine
which may extend to 7[five thousand rupees], or with both ;

(o) if  it  is  an  offence  under  clause  (o) of  that  section,  with
imprisonment  for  a  term  which  may  extend  to  two  years,  or  with  fine
8[which may extend to ten thousand rupees], or with both ;

(p) if  it  is  an  offence  under  clause  (p) of  that  section,  with
imprisonment for a term which may extend to three years, or with fine
9[which may extend to fifteen thousand rupees],  or with both ;

(q) if it is an offence under clause (q) of that section, with fine which

may  extend  to 10[one  thousand  rupees].

Cognizance of
offences.

148.

(1) No  court  inferior  to  that  of  a 11[Metropoliton  Magistrate  or  a
Judicial Magistrate of the First Class], shall try any offence under this Act.

12*

*

*

*

*

13[(3) No  prosecution  under  this  Act  shall  be  lodged,  except  with  the

previous  sanction  of  the  Registrar.]

1 These  words  were  substituted  for  the  words  “five  hundred  rupees”  by  Mah.  16

of 2013, s. 73(k).

2 These words were substituted for the words “five hundred rupees”, by Mah. 16 of 2013, s. 73(l).
3 These words were substituted for the words “two thousand rupees”, by Mah. 16 of 2013, s. 73(m).
4 These words were substituted for the words “one hundred rupees”, by Mah. 16 of 2013, s. 73(n).
5 Clause (l-1) was inserted, by Mah. 16 of 2013, s. 73(o).
6 These words were substituted for the words “five hundered rupees”, by Mah. 16 of 2013, s. 73(p).
7 These words were substituted for the words “one thousand rupees”, by Mah. 16 of 2013, s. 73(q).
8 These words were inserted by, Mah. 16 of 2013, s. 73(r).
9 These words were inserted by, Mah. 16 of 2013, s. 73(s).
10 These words were substituted for the words “two hundred and fifty rupees” by Mah. 16, s.

73(t).

11 These words were substituted for the words “Presidency Magistrate or a Magistrate of the

First Class” by Mah. 20 of 1986, s. 61(a).

12 Sub-section (2) was deleted, by Mah. 20 of 1986, s. 61(b).
13 Sub-section (3) was substituted by Mah. 7 of 1997, s. 14.

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Maharashtra Co-operative Societies Act, 1960

125

1[148A.

(1) If  any  person,—

(a) when  ordered  by  a  Co-operative  Court  or  the  Co-operative
Appellate  Court  to  produce  or  deliver  up  any  document  or  to  furnish
information,  being  legally  bound  so  to  do,  intentionally  omits  to  do
so ;  or

Contempt of Co-
operative Courts
and of Co-
operative
Appellate Court.

(b) when required by any such Court to bind himself by an oath or

affirmation to state the truth, refuses to do so ;

(c) being legally bound to state the truth on any subject to any such
Court,  refuses  to  answer  any  question  demanded  of  him  touching  such
subject by the Court ; or

(d) intentionally offers any insult or causes any interruption to any

such Court at any stage of its judicial proceeding,
he shall, on conviction, be punished with imprisonment for a term which
may  extend  to  six  months,  or  with  fine  which  may  extend  to  one  thousand
rupees,  or  with  both.

(2) If any person refuses to sign any statement made by him, when required
to  do  so  by  a  Co-operative  Court  or  the  Co-operative  Appellate  Court,  he
shall,  on  conviction,  be  punished  with  imprisonment  for  a  term  which  may
extend to three months, or with fine which may extend to five hundred rupees,
or with both.

(3) If any offence under sub-section (1) or (2) is committed in the view or
presence of a Court concerned, the said Court may, after recording the facts
constituting the offence and the statement of the accused as provided in the
2[Code of Criminal Procedure, 1973], forward the case to a Magistrate having
jurisdiction  to  try  the  same,  and  may  require  security  to  be  given  for  the
appearance  of  the  accused  person  before  such  Magistrate  or,  if  sufficient
security is not given, shall forward such person in custody to such Magistrate.
The  Magistrate to  whom any  case  is so  forwarded  shall proceed  to hear  the
complaint  against  the  accused  person  in  the  manner  provided  in  the 2[Code
of  Criminal  Procedure,  1973.]

2 of
1974.

2 of
1974.

(4) If  any  person  commits  any  act  or  publishes  any  writing  which  is
calculated  to  improperly  influence  a  Co-operative  Court  or  the  Co-operative
Appellate Court to bring any such Court or a member thereof into disrepute
or  contempt  or  to  lower  its  or  his  authority,  or  to  interfere  with  the  lawful
process  of  the  said  authorities,  such  person  shall  be  deemed  to  be  guilty  of
contempt  of  the  said  authorities.

(5) In  the  case  of  contempt  of  itself,  the  Co-operative  Appellate  Court
shall record the facts constituting such contempt, and make a report in that
behalf to the High Court.

(6) In  the  case  of  contempt  of  a  Co-operative  Court,  the  Co-operative
Court  shall  record  the  facts  constituting  such  contempt,  and  make  a  report
in that behalf to the Co-operative Appellate Court, and thereupon, that Court
may if it considers it expedient to do so, forward the report to the High Court.
(7) When any intimation or report in respect of any contempt is received
by the High Court under sub-section (5) or (6), the High Court shall deal with
such contempt as if it were contempt of itself, and shall have and exercise in
respect of it the same jurisidction, powers and authority in accordance with
the same procedure and practice as it has exercises in respect of contempt of
itself.]

1 Section 148A was inserted by Mah. 3 of 1974, s. 37.
2 These words and figures were substituted for  the words and figures “ Code of Criminal

Procedure, 1898 ” by Mah. 20 of 1986, s. 62.

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[1961 : Mah. XXIV

Maharashtra
State  Co-
operative
6[Appellate
Court.]

CHAPTER XIII

APPEALS, REVIEW AND REVISION

149.

1[(1) A  Court  to  be  called  the  Maharashtra  State  Co-operative
Appellate Court is hereby constituted to exercise the powers and to discharge
the functions conferred on it by or under this Act.]

(2) The 2[Co-operative  Appellate  Court]  shall  consist  of  the  President,
3[and  such  number  of  other  members,  as  the  State  Government  may  from
time to time consider necessary, who possess] such qualifications as may be
prescribed. 4[The  President  and  other  members  shall  hold  office  for  such
period  or  such  different  periods  as  may  be  prescribed.]

(3) Any vacancy in the membership of the 2[Co-operative Appellate Court]

shall be filled by the State Government.

5[(4) All or any of the powers and functions of the Co-operative Appellate
Court, may be exercised and discharged by any of its members sitting singly
or in Benches as may be determined by the President].

(5) Such Benches shall  consist of two or  more members.

(6) Where a matter is heard 7[by an odd number of members constituting
a Bench]  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,  if  the
President be one of the members the opinion of the President shall prevail ;
and in other cases the matter shall be referred for hearing to the President,
and  shall  be  decided  in  accordance  with  his  decision.

(7) Subject  to  the  previous  sanction  of  the  State  Government,  the
8[Co-operative  Appellate  Court]  shall  frame  regulations  consistent  with  the
provisions of this Act and rules made thereunder, for regulating its procedure
and the disposal of its business.

(8) The  regulations  made  under  sub-section  (7),  shall  be  published  in

the Official  Gazette.

(9) The 8[Co-operative  Appellate  Court]  may  call  for  and  examine  the
record  of  any  proceeding  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 8[Co-operative  Appellate  Court]  that  any
such  decision  or  order  should  be  modified,  annulled  or  reversed,  the
8[Co-operative Appellate Court] may pass such order thereon as it may deem
just.

(10) Where 9[an  appeal  or  application  is  made  to  the 8[Co-operative
Appellate  Court]  under  this  Act],  it  may,  in  order  to  prevent  the  ends  of
justice  being  defeated  make  such  inter-locutory  orders  pending  the  decision

1 Sub-section (1) was substituted by Mah. 3 of 1974, s. 38(a).
2 These words were substituted for the word “ Tribunal ”, by Mah. 3 of 1974, s. 38(c).
3 These  words  were  substituted  for  the  words  “ and  not  more  than  three  other  members

possessing ” by Mah. 27 of 1971, s. 3.

4 These words were inserted by Mah. 3 of 1974, s. 38(b).
5 Sub-section (4) was substituted for the original by Mah. 36 of 1975, s. 12(a).
6 These words were substituted for the word “ Tribunal ” by Mah. 3 of 1974, s. 38(e).
7 These  words  were  substituted  for  the  words  “ by  three  members ”  by  Mah.  36  of  1975,

s. 12(b).

8 These words were substituted for the word “ Tribunal ” by Mah. 3 of 1974, s. 38(c).
9 These words  were substituted for  the words “ an  appeal is  made to the  Tribunal under

section 97 ” by Mah. 33 of 1963, s. 29(a).

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Maharashtra Co-operative Societies Act, 1960

127

of the appeal 1[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 2[Co-operative  Appellate  Court].

(11) An order passed in appeal, or in revision under sub-section (9) or in
review  under  section  150  by  the 2[Co-operative  Appellate  Court],  shall  be
final and conclusive, and shall not be called in question in any Civil or Revenue
Court.

3[(12) (a) The  President  and  other  members  of  the  Maharashtra  State
Co-operative  Tribunal  functioning  immediately  before  the  commencement
of  the  Maharashtra  Co-operative  Societies  (Third  Amendment)  Act,  1973,
shall  be deemed,  respectively  to be  the  President and  other  members of  the
Maharashtra State Co-operative Appellate Court constituted for the pruposes
of  this  Act ;  and  all  appeals  and  other  proceedings  pending  before  the  said
Tribunal shall be heard and disposed of by the said Court from the stage they
reached  before  such  commencement.

(b) Anything  done  or  any  action  taken  (including  any  orders  passed  or
regulations  made)  by  the  said  Tribunal,  shall  be  deemed  to  have  been  done
or taken by the said Court and shall continue in operation until duly modified
or  annulled.

Mah. III
of 1974.

(c) Any reference to the said Tribunal in any law or instrument, for the
time  being  in  force,  shall,  with  effect  from  the  commencement  of  the
Maharashtra  Co-operative  Societies  (Third  Amendment)  Act,  1973,  be
construed  as  a  reference  to  the  said  Court.]

Mah. III
of 1974.

Explanation.—The 2[Co-operative  Appellate  Court]  hearing  an  appeal
under  this  Act  shall  exercise  all  the  powers  conferred  upon  an  appellate
court by section 97 and Order XLI in the First Schedule of the Code of Civil
Procedure,  1908.

V of
1908.

150.

(1) The 4[Co-operative  Appellate  Court]  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 :

Review of
orders of
4[Co-opera-
tive Appellate
Court.]

Provided that, no such application made by the party interested shall be
entertained, unless the 4[Co-operative Appellate Court] 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  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, apparent on the face of the record, or
for  any  other  sufficient  reason :

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  party,
shall be made within ninety days from the date of the communication of the
order  of  the 4[Co-operative  Appellate  Court].

1 These words were inserted, by Mah. 33 of 1963, s. 29(d).
2 These words were substituted for the word “ Tribunal ” by Mah. 3 of 1974, s. 38(c).
3 Sub-section (12) was added  by Mah. 3 of 1974, s. 38(d).
4 These words were substituted for the word “ Tribunal ”, by Mah. 3 of 1974, s. 39.

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Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

1[Co-operative
Appellate
Court] to have
power of Civil
Court.

151.

(1) In  exercising  the  functions  conferred  on  it  by  or  under  this
Act,  the 1[  Co-operative  Appellate  Court]  shall  have  the  same  power  as  are
vested in a Court in respect of,—

(a) proof of  facts by  affidavit,

(b) summoning  and  enforcing  the  attendance  of  any  person  and

examining him on oath,

(c) compelling  discovery  or  the  production  of  documents,  and

(d) issuing  commissions  for  the  examination  of  witnesses.

(2) In  the  case  of  any  such  affidavit,  any  officer  appointed  by  the
1[Co-operative  Appellate  Court]  in  this  behalf  may  administer  the  oath  to
the  deponent.

Appeals.

152.

(1) An  appeal  against  an  order  or  decision 2[under  sections  4,  9,
11, 12, 13, 14, 17, 18, 19, 21, 21A, 29, 35, 77A, 3[78, 4[78A,] 79, 85, 88 and 105
including  against  an  order  for  paying  compensation  to  society]] shall  lie,—

(a) if  made  or  sanctioned  or  approved  by  the  Registrar,  or  the
Additional  or  Joint  Registrar  on  whom  powers  of  the  Registrar  are
conferred,  to  the  State  Government,

(b) if made or sanctioned by any person other than the Registrar or
the  Additional  or  Joint  Registrar  on  whom  the  powers  of  the  Registrar
are  conferred,  to  the  Registrar  :

5[Provided  that,  no  order  of  stay  shall  be  issued  in  respect  of  the
recovery of the dues under the award issued by the Liquidator unless fifty
per  cent.  of  the  amount  stated  in  the  award  is  deposited  with  the  society
by  the  Appellant.]

6[(2) Where  an  appeal  against  any  order  or  decision  to  the
Co-operative  Appellate  Court  has  been  provided  under  this  Act,  it  shall  lie
to  the  Co-operative  Appellate  Court.]

(3) An appeal under sub-section (1) or (2) shall be filed within two months

of  the  date of  the  communication  of  the order  or  decision.

7[(3A) The  Appellate  Authority,  in  order  to  prevent  the  ends  of  justice
being defeated, may pass such interim orders including order of stay against
the  impugned  order,  pending  the  decision  and  final  hearing  of  the  appeal :

Provided  that,  if  any  interim  order  has  been  passed  by  the  Appellate
Authority without hearing the other side, the Appellate Authority shall decide
such  application  within  a  period  of  three  months  and  pass  the  necessary
orders on merits after giving an opportunity of being heard and for the reasons
to  be  recorded  in  writing.]

1 These words were substituted for the word “ Tribunal ” by Mah. 3 of 1974, s. 40.
2 These words, figures and letters were substituted for the words and figures “ under sections

9, 12, 13, 14, 17, 18, 19, 21, 29, 35, 78 and 105 ” by Mah. 10 of 1988, s. 30.

3 These figures and words were substituted for the figures and word “ 78 and 105 ” by Mah. 13

of 1994, s. 12 (a).

4 These figures and letter were inserted for the figures “78” by Mah. 14 of  2018, s. 2(a).
5 This proviso was inserted by Mah. 16 of 2013, s. 74(a).
6 Sub-section (2) was substituted for the original by Mah. 13 of 1994, s. 12(b).
7 Sub-section (3A) was inserted by Mah. 16 of 2013, s. 74(b).

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Maharashtra Co-operative Societies Act, 1960

129

1[(4) Save  as  expressly  provided,  no  appeal  shall  lie  against  any  order,
decision or award passed in accordance with the provisions of this Act ; and
every  such  order,  decision  or  award  shall,  whether  expressly  provided  or
not, be final , but shall always be subject to the provisions for revision in this
Act ; and where an appeal has been provided for, any order passed on appeal
shall likewise be final, but be subject to such revision provisions].

2[(5)  The  State  Government  may,  by  order  published  in  the Official
Gazette, direct that the powers conferred on it by this section, in circumstances
and  under  such  condition  if  any,  as  may  be  specified  in  the  direction,  be
exercised  also by  an officer  of the  rank of  Secretary to  Government.]

3[152A.

(1) Notwithstanding  anything  contained  in  this  Act  or  rules
or  the  bye-laws  made  thereunder,  a  person  aggrieved  by  the  rejection  of
nomination of a candidate at the election of a committee of any society 4[*
*]
may file an appeal to the Registrar within three days of the date of rejection
of  the  nomination.  The  Registrar  shall  dispose  of  such  appeal  within  ten
days of the date of receipt of such appeal and the decision of the Registrar in
appeal  shall  be  final  and  no  further  appeal  or  revision  shall  lie  against  the
decision of the Registrar in such appeal. 5[In the case of a society, an appeal
shall lie to the officer as may be specified by the State Co-operative Election
Authority, who shall dispose of such appeal within ten days from the date of
receipt of such appeal and the decision of the such officer, shall be final.]

(2) Notwithstanding  anything  contained  in  this  Act  or  the  rules  or  the
bye-laws made thereunder, the list of validly nominated candidates shall be
subject to the decision of any appeal filed under sub-section (1), and the period
between  the  date  of  scrutiny  of  nomination  papers  and  the  last  date  of  the
withdrawal of candidatures shall not be less than fifteen days.]

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  authority  may  admit  an  appeal  after  the  expiry  of  such  period,  if
the  appellant  satisfies  the  appellate  authority  that  he  had  sufficient  cause
for  not  prefering  the  appeal  within  such  period.

6[154.

(1) The  State  Government  or  the  Registrar, suo  motu  or  on  an
application, may call for and examine the record of any inquiry or proceedings
of any matter, other than those referred to in sub-section (9) of section 149,
where any decision or order has been passed by any subordinate officer, and
no  appeal  lies  against  such  decision  or  order,  for  the  purpose  of  satisfying
themselves as to the legality or propriety of any such decision or order, and
as  to  the  regularity  of  such  proceedings.  If,  in  any  case,  it  appears  to  the
State  Government, or  the  Registrar, that  any  decision or  order  so called  for
should  be  modified,  annulled  or  reversed,  the  State  Government  or  the
Registrar, as the case may be, may, after giving the person affected thereby
an opportunity of being heard, pass such orders thereon as to it or him may
seem just.

1 Sub-section  (4)  was  substituted  for  the  original  by  Mah.  37  of  1965,  s.  2  and  the  said

sub-section shall be deemed always to have been enacted in this form.

2 Sub-section (4) was added by  Mah. 14 of 2018, s. 2(b).
3 Section 152A was inserted by Mah. 20 of 1986, s. 63.
4 The words, figures and letter “other than a society specified by or under section 73G,” were

deleted by Mah. 16 of 2013, s.75(a).

5 This  portion  was  substituted  for  the  portion  begining  with  the  words  “In  the  case  of  a
society” and ending with the words “Divisional Commissioner in such appeal” by Mah. 16 of
2013, s. 75(b).

6 Section 154 was substituted by Mah. 3 of 1974, s. 42.

H 4112—18

Appeal
against
rejection of
nomination
paper at
election.

Extension of
period of
limitation by
appellate
authority in
certain cases.

Revisionary
powers of
State
Government
and Registrar.

130

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(2) Under this section, the revision shall lie to the State Government if
the decision or order is passed by the Registrar, the Additional Registrar or
a Joint Registrar, and to the Registrar if passed by any other officer.

1[(2A) No  application  for  revision  shall  be  entertained  against  the
recovery certificate issued by the Registrar under section 101 2[or Certificate
issued  by  the  Liquidator  under  section  105]  unless  the  applicant  deposits
with  the  concerned  society,  fifty  per  cent.  amount  of  the  total  amount  of
recoverable  dues :]

3[Provided  that,  in case  of  such  revision  where revisional  authority  has
granted a stay to the recovery of dues, the authority shall, as far as may be
practicable,  dispose  of  such  revision application  as  expeditiously  as  possible
but not later than six months from the date of the first order.]

(3) No  application  for  revision  shall  be  entertained,  if  made  after  two
months of the date of communication of the decision or order. The revisional
authority may entertain any such application made after such period, if the
applicant  satisfies  it  that  he  had  sufficient  cause  for  not  making  the
application  within  such  period.

4[(3A) The  revisional  authority,  in  order  to  prevent  the  ends  of  justice
being defeated, may pass such interim orders including order of stay against
the  impugned  order,  pending  the  decision  and  final  hearing  of  the  Revision
Application :

Provided  that,  if  any  interim  order  has  been  passed  by  the  revisional
authority without hearing the other side, the revisional authority shall decide
such  application  within  a  period  of  three  months  and  pass  the  necessary
order on merits after giving an opportunity of being heard and for the reasons
to  be  recorded  in  writing.]

(4) The State Government may, by order, direct that the powers conferred
on it by this section shall, in such circumstances and under such conditions,
if any, as may be specified in the direction, be exercised also by an officer of
the  rank  of  Secretary  to  Government.]

5[CHAPTER XIII-A

MAHARASHTRA STATE CO-OPERATIVE COUNCIL

Constitution
of State
Co-operative
Council, its
functions, etc.

154A.

(1) There shall be a Council to be called the Maharashtra State
Co-operative  Council  consisting  of  such  number  of  members,  including  the
Chairman and the Vice-Chairman, as the State Government may determine
and nominate from time to time.

(2) The  State  Government  shall  appoint  a  Secretary  of  the  Council.

(3) The  functions  of  the  Council  constituted  under  sub-section  (1)  shall

be as follows, namely :—

(a) to  advise  the  State  Government  on  all  matters  relating  to

co-operative  movement ;

1 Sub-section (2A) was inserted by Mah. 41 of 2000, s. 5.
2 These words and figures were inserted by Mah. 16 of 2013, s. 76(a)(i).
3 This proviso was inserted, by Mah. 16 of 2013, s. 76(a)(ii).
4 Sub-section (3A) was inserted, by Mah. 16 of 2013, s. 76(b).
5 Chapter XIII-A was inserted by Mah. 20 of 1986, s. 64.

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Maharashtra Co-operative Societies Act, 1960

131

(b) to  review  the  co-operative  movement  and  to  suggest  ways  of

co-ordinating  the  activities  of  co-operative  societies  in  the  State ;

(c) to  suggest  ways  and  means  to  remove  the  difficulties

experienced  by  the  co-operative  societies ;

(d) to  report  to  the  State  Government  on  such  matters  as  may  be

referred  to  it  by  the  State  Government ;

(e) to  recommend  the  plans  and  policies  for  the  development  of

co-operative  movement  in  the  State ;

(f) to  evaluate  existing  schemes  and  suggest  new  schemes  for
co-operative  development  especially  for  the  development  of    backward
classes  and  economically  weaker  sections  of  the  society ;

(g) to advise the State Government for the implementation of special

scheme  of  economic  development  through  co-operative  methods ;  and

(h) to  undertake  studies  for  any  of  the  purposes  aforesaid  either

through  department  or  specialised  bodies.

(4) The State Government may, by general or special order, provide for—

(a) the calling of the meetings of the Council and the procedure at

such  meetings,

(b) duties  of  the  Secretary  to  the  Council,

(c) sub-committee  or  committees  of  the  Council,

(d) the term of office of members of the Council and travelling and

daily  allowances  admissible  to  the  members  of  the  Council].

CHAPTER   XIV

MISCELLANEOUS

155.

(1) Unless  otherwise  provided  by  this  Act,  all  sums  due  from  a
society or from an officer or member or past member or a deceased member
of  a  society  as  such  to  the  Government,  may  be  recovered  according  to  the
law and under the rules for the time being in force for the recovery of arrears
of  land  revenue.

Recovery of
sums due to
Government.

(2) Sums  due  from  a  society  to  the  Government  and  recoverable  under
the  foregoing  sub-section  may  be  recovered,  firstly  from  the  property  of  the
society, secondly in the case of a society of which  the liability of the members
is  limited,  from  the  members  or  past  members  or  the  estate  of  deceased
members  subject  to  the  limit  of  their  liability,  and,  thirdly,  in  the  case  of
societies with unlimited liability from the members or past members or estate
of  deceased  members.

(3) The liability of past members or estate of deceased members shall in

all cases be subject to the provisions of section 33.

H 4112—18a

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[1961 : Mah. XXIV

Registrar’s
powers to
recover
certain sums
by
attachment
and sale of
property.

156.

(1) The  Registrar  or  any  officer  subordinate  to    him  and
empowered  by  him  in  this  behalf 1[or  an  officer  of  such  society  as  may  be
notified  by  the  State  Government,  who  is  empowered  by  the  Registrar  in
this  behalf ]  may,  subject  to  such  rules  as  may  be  made  by  the  State
Government,  but  without  prejudice  to  any  other  mode  of  recovery  provided
by  or  under  this  Act,  recover—

(a) any amount due under a decree or order of a Civil Court obtained

by  a  society ;

(b) any amount due under a decision, award or order of the Registrar,
2[Co-operative  Court]  or  Liquidator  or 3[Co-operative  Appellate  Court] ;

(c) any sum awarded by way of costs under this Act ;

(d) any sum ordered to be paid under this Act as a contribution to

the  assets  of  the  society ;

4[(e) any  amount  due  under  a  certificate  granted  by  the  Registrar
under  sub-sections  (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 5[according  to the scales of fees laid down by the Registrar, from
time  to  time,]  by  the  attachment  and  sale  or  by  sale  without  attachment  of
the  property  of  the  person  against  whom  such  decree,  decision,  award  or
order  has  been  obtained  or  passed.

(2) The  Registrar  or  the  officer  empowered  by  him  shall  be  deemed,
when exercising the powers under the foregoing sub-section, or when passing
any  order  on  any  application  made  to  him  for  such  recovery,  to  be  a  Civil
Court for the purposes of 6[article 136 in the Schedule to the Limitation Act,
1963].

36 of
1963.

Power to
exempt
societies from
provisions of
Act.

*

*

*

157. The State Government may, by general or special order, 7*      *
*
*  exempt  any  society  or  class  of    societies  from
any of the provisions of this Act, 8[or of the rules made thereunder,] or may
direct that such provisions shall apply to such society or class of societies 9*
*  with  such  modifications  not  affecting  the  substance  thereof  as  may  be
specified  in  the  order :

Provided  that,  no  order  to  the  prejudice  of  any  society  shall  be  passed,

without  an  opportunity  being  given  to  such  society  to  represent  its  case :

1 These words were inserted by Mah. 63 of 1981, s. 2(a).
2 These words were substituted for the word “ arbitrator ” by Mah. 3 of 1974, s.43.
3 These words were substituted for the word “ Tribunal ”, ibid.
4 Clause (e) was inserted by Mah. 33 of 1963, s. 31.
5 These words were inserted by Mah. 63 of 1981, s. 2(b).
6 These words and figures were substituted for the words and figures “ article 182 in the First

Schedule to the Limitation Act, 1908 ” by Mah. 20 of 1986, s. 65.

7 The words “to be published in the Official Gazette,” were deleted by Mah. 27 of 1969, s. 22(a).
8 These words were inserted, ibid., s. 22(b).
9 The words “other than co-operative credit structure entity” were deleted by Mah. 16 of 2013,

s. 77(a).

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Maharashtra Co-operative Societies Act, 1960

133

1[Provided  further  that,  the  State  Government  shall  not  exempt  any
society or class of societies from the provisions made under sections 26, 73A,
73AAA, 73B, 73C, 73CA, 73CB, 73E, 75, 76, 78, 78A and 81.]

158. The State Government may, by notification in the Official Gazette,
and subject to such conditions (if any) as it may think fit to impose, delegate
all or any of the powers of the Registrar under this Act to any federal authority
or  to  an  officer  thereof 2[or  to  any  other  authority] 3[and  such  officers  or
authorities] shall  work  under  the  general  guidance,  superintendence  and
control  of  the  Registrar  specified  in  the  notification.

Delegation of
power of
Registrar to
4[certain
authorities
and officer].

159.

(1) No  society  shall  open  a  branch  or  a  place  of  business  outside
the  State  of  Maharashtra,  and  no  co-operative  society  registered  under  any
law in any other State shall open a branch or a place of business in the State
of  Maharashtra,  without  the  permission  of  the  Registrar.

Branches,
etc., of
societies
outside the
State.

(2) Every  co-operative  society  registered  under  any  law  in  any  other
State, and permitted to open a branch or a place of business in the Maharashtra
State  under  the  foregoing  sub-section,  or  which  has  a  branch  or  a  place  of
business  in  the  Maharashtra  State  at  the  commencement  of  this  Act,  shall,
within three months from the opening of such branch 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 by-laws and amendments and, if these are not written
in English language, a certified translation thereof in English or Hindi, and
shall submit to the Registrar such returns and information as are submitted
by similar societies registered under this Act in addition to those which may
be  submitted  to  the  Registrar  of  the  State  where  such  society  is  registered.

160.

(1) On  the  election  of  a  new  Committee  and  its  Chairman,  the
retiring  Chairman,  in  whose  place  the new  Chairman  is  elected,  shall  hand
over charge of the office of the committee and all papers and property, if any,
of  the  society  in  possession  of  the  committee  or  any  officer  thereof,  to  the
new  Chairman  of  the  Committee.

Handing over
records and
property to
new
Chairman on
election.

(2) If  the  retiring  Chairman  fails  or  refuses  to  hand  over  charge,  or  to
handover the papers and property of the society as aforesaid, the Registrar,
or  any  person  empowered  by  him  in  this  behalf,  may  by  order  in  writing
direct  him  to  forthwith  hand  over  such  charge  and  property.

(3) If  the  retiring  Chairman  to  whom  a  direction  has  been  issued  as
aforesaid  does  not  comply  with  such  direction,  he  shall  on  conviction  be
punished with simple imprisonment which may extend to one month, or with
fine  which  may  extend  to 5[five  thousand  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  and  property  and handing  it
over to the new Chairman, in the manner provided in section 80.

1 This proviso was added by Mah. 16 of 2013, s. 77(b).
2 These words were inserted by Mah. 20 of 1986, s. 66 (a).
3 These words were substituted for the words “or to any officer of the Zilla Parishad constituted
under  the  Maharashtra  Zilla  Parishads  and  Panchayat  Samitis    Act,  1961  and  such
authorities and officer of the Zilla Parishad” by Mah. 16 of 2013, s. 78.

4 These  words  were  substituted  for  the  words  “federal  authorities”  by  Mah.  20

Mah. V
of 1962.

of 1986, s. 66(c).

5 These words were substituted for the words “five hundred rupees” by Mah. 16 of 2013, s. 79.

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[1961 : Mah. XXIV

Members of
State
Legislature
and certain
local
authorities
not to be
remunerated
while holding
certain offices
in societies.

Members of
committees
not entitled to
travelling
allowance,
daily
allowance,
etc., at a rate
higher than
the
maximum
prescribed.

Registrar and
other officers
to be public
servants.

Hyd.
XVIII of
1956.
Mah. V
of 1962.

1[160A. Notwithstanding  anything  contained  in  this  Act  or  the  rules
or  by-laws  made  thereunder,  a  member  of  the  State  Legislature  or  of  a
committee  under  the  Hyderabad  District  Municipalities  Act,  1956,  or  a
member  of  a Zilla  Parishad  or Panchayat  Samiti  under  the  Maharashtra
Zilla Parishads and Panchayat Samitis Act, 1962, while holding the office of
Chairman or members of the committee of a society to which appointment is
made  by  the  State  Government  or  the  office  of  liquidator  or  the  office  of
nominee  of  the  Registrar  whether  appointed  individually  or  to  a  board  of
nominees,  shall  not  be  entitled  to  receive  any  remuneration  other  than
travelling  allowance,  the  daily  allowance  or  such  other  allowance  which  is
paid to the holder of any such office for the purpose of meeting the personal
expenditure  incurred  in  attending  the  meeting  of  the  committee  or  body,  or
in performing any other functions as the holder of such office.]

2[160B. Subject  to  the  provisions  of  section  160A,  no  member  of  the
committee  of  any  society  shall  be  entitled  to  receive  from  the  society  the
travelling  allowance,  the  daily  allowance  or  such  other  allowances  or  fees
which are paid to the members for attending meetings of its committee or for
performing  any  other functions  as  such  members,  at  a rate  higher  than  the
maximum  rate  prescribed  in  this  behalf,  and  different  maximum  rates  may
be  prescribed  for  different  societies  or  class  of  societies  or  for  different
purposes.]

3[161. The  Registrar,  a  person  exercising  the  powers  of  the  Registrar,
an  Officer  as  defined  in  clause  (20)  of  section  2,  a  person  appointed  as  an
Official  Assignee  under  sub-section  (2)  of  section  21-A 4[State  co-operative
Election  Commissioner  and  officers,  employees  and  staff  employed  under
sub-sections (7) and (8) of section 73CB], or as an administrator under section
77-A or 78, 5[78A or clause (iii) of sub-section (1) of section 110A] or a person
authorised to seize books or funds of a society under sub-section (3) of section
80, or to audit  the accounts of a society under section 81  or hold an inquiry
under  section  83,  or  to  make  an  inspection  under  section  84,  or  89-A  or  to
make  an  order  under  section  88,  or  a  person  appointed  as  a  member
constituting  a  Co-operative  Court  under section  91A  or  the  Co-operative
Appellate  Court  under  section  149 6[or  any  officer  empowered  under  section
156], or a Liquidator under section 103,  shall  be  deemed  to  be  public  servant
within the meaning of section 21 of the Indian Penal Code.]

XLV of
1860.

Indemnity for
acts done in
good faith.

162. No  suit,  prosecution  or  other  legal  proceeding  shall  lie  against
the Registrar or any person subordinate to him or acting on his authority, in
respect of anything in good faith done, or purported to be done by him by or
under  this  Act.

1 Section 160A was inserted by Mah. 23 of 1968, s. 6.
2 Section 160B was inserted by Mah. 27 of 1969, s. 23.
3 Section 161 was substituted for the original by Mah. 20 of 1986, s. 67.
4 These  words,  brackets,  figures  and  letter  were  inserted  by  Mah.  16  of  2013,

s. 80(a).

5 These words, brackets, figures and letters were inserted, ibid., s. 80(b).
6 These words and figures were inserted, ibid., s. 80(c).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

135

Bar of
Jurisdiction of
Courts.

163.

(1) Save  as  expressly  provided  in  this  Act,  no  Civil  or  Revenue

Court  shall  have  any Jurisdiction  in  respect  of—

(a) the registration of a society or its by-laws, or the amendment of
its  by-laws,  or  the  dissolution  of  the  committee  of  a  society,  or  the
Management  of  the  society  on  dissolution  thereof ;  or

(b) any dispute required to be referred to 1[the Co-operative Court]

for  decision ;

(c) any matter concerned with the winding up and dissolution of a

society.

(2) While a society is being wound up, no suit or other legal proceeding
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 affairs
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 of appeal or revision in this Act  be
final;  and  no  such  order,  decision  or  award  shall  be  liable  to  be challenged,
set aside, modified, revised or declared void in any Court upon the merits, or
upon any  other ground  whatsover 2*

*.

*

164. No suit shall be instituted against a society, or any of 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 deliverd to the Registrar or
left at his office, stating the cause of action, the name, description and place
of  residence  of  the  plaintiff  and  the  relief  which  he  claims,  and  the  plaint
shall contain a statement that such notice has been so delivered or left.

Notice
necessary in
suits.

165.

(1) The  State  Government  may,  for  the  whole  or  any  part  of  the
State and for any society or class of societies, make rules for the conduct and
regulation of the business of such society or class of societies, and for carrying
out the purposes  of this Act.

Rules.

(2) In particular, and without prejudice to the generality of the foregoing

power,  such  rules  may—

3[(i) subject to the provisions of section 3, prescribe the designation

of  officers  who  shall  exercise  powers  vested  in  the  Registrar ;]

(ii) prescribe the forms to be used and the conditions to be complied
within the making of applications for the registration 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, by-laws and the procedure
to  be  followed  in  making,  altering  and  abrogating  by-laws  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,  for  reconstruction  of  society ;

1 These words were substituted for the words “the Registrar, or the Co-operative Court” by

Mah. 18 of 1982, s. 15.

2 The words “except for want of jurisdiction” were deleted by Mah. 27 of 1969, s. 25.
3 Clause (i) was substitued by Mah. 33 of 1963, s. 32.

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[1961 : Mah. XXIV

(v) prescribe  the  form  of  and  procedure  for  an  application  under
section  19  and  the  procedure  for  reconstruction  of  a  society  under  that
section ;

1[(v-a) prescribe  the  conditions  subject  to  which  the  Official
Assignee shall realise the assets and liquidate the liablilities under
section  21 A(3) ;

(v-b) prescribe the manner of giving public notice and the remu-
neration  and  allowances  to  be  paid  to  the  Official  Assignee,  under
sections 21 A(1) and 21 A(4) ;

(v-c) prescribe  the  form  of  application  under  section  23  (1A) ;]

2[(v-c1) prescribe the period of training and education and
the  intervals  at  which  such  training  shall  be  given ;  and  the
different  rates  at  which  different  societies  shall  contribute
towards the  training and education  fund under section  24A of
the  Act ;

(v-c2) prescribe the amount of payment to be made to the
society  by  a  member  in  respect  of  the  membership ;  and  the
manner  of  communicating  the  classification  of  a  member  as  a
non-active  member under  section 26  of the  Act ;] ;

3[(v-d) prescribe the manner for  entering into collaboration by
any  society  or  societies  with  any  Government  undertaking  or  any
undertaking approved by Government for carrying on any business ;]

(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
interest  to  be  acquired  before  the  exercise  of  the  right  of  membership ;

(vii) prescribe  in  the  case  of  a  federal  society  or  class  of  federal
societies  the  proportion  of  individual  members  to  society  members  in
such  society  or  class  of  societies  and  the  proportion  of    individual
members to society members in the committee of such society or class of
societies ;

(viii) subject to the provisions of section 28, prescribe the maximum
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 ;

(x) 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 procedure 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 ;

1 These clauses were inserted  by Mah. 20 of 1986, s. 68(a).
2 These clauses (v-c1) and (v-c2) were inserted by Mah. 16 of 2013, s. 81(a).
3 Clause (v-d) was inserted by Mah. 10 of 1988, s. 32.

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

137

(xiv) prescribe  the  payment  to  be  made  and  the  conditions  to  be
complied with by member applying for loans, the period for which loans
may be made, and the amount which may be lent to an individul member ;

(xv) provide for the inspection of documents in the Registrar’s office

and the levy of fee for granting certified copies of the same ;

(xvi) provide  for  the  procedure  for  registering  the  address  of  a

society and the change  of its address ;

(xvii) 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 ;

(xviii) provide for securing that the share capital of any society shall
be variable 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  required ;

(xix) provide  for  the  procedure  to  be  adopted  by  a  society  with

limited  liability  in  order  to  reduce  its  share  capital ;

(xx) 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  debtentures  issued  by
societies ;

(xxi) regulate the manner in which funds may be raised by a society
or class  of societies by  means of shares  or debentures or  otherwise and
the quantum of funds so raised ;

(xxii) prescribe  the  limits  for  loans  to  be  granted  by  a  society  or
class of societies against different class of securities or without security
and  the  procedure  for  granting  loans ;

(xxiii) prescribe  the  manner  of  recalling  a  loan ;

(xxiv) prescribe the limits for granting credit by a non-credit society

or  a  class  of  non-credit  societies ;

(xxv) prescribe  the  prohibitions  and  restrictions  subject  to  which
societies  may  trade  or  transact  business  with  persons  who  are  not
members ;

(xxvi) prescribe  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 ;

(xxvii) provide  for  giving  reasonable  notice  of  the  charge  under

section  48 ;

(xxviii) prescribe  the  procedure  by  which  a  society  shall  calculate

and write off bad debts ;

1[(xxix) the  manner  in  which  a  society  shall  construct  its  annual
financial  statements  and  the  other  purposes  for  which  a  society  may
appropriate  its  net  profits  under  section  65;]

(xxx) provide  for  the  formation  and  maintenance  of  reserve  fund,
and the objects to which such fund may be applied and for the investment
and use of any fund including reserve fund under the control of a society ;

1 Clause (xxix) was substituted for the original  by Mah. 20 of 1986, s. 68(b).

(G.C.P.)  H  4112—19  (4,076—8–2018)

138

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

(xxxi) prescribe  the  conditions  under  which  profits  may  be
distributed as dividend and bonus among the members and non-members
of  a  society ;
1 *
2 *
(xxxiii) define  the  co-operative  purpose  for  which  a  society  shall,

*
*

*
*

under section 69,  utilise its fund ;

(xxxiv) prescribe the mode of investment of funds of a society under
section  70  and  the  proportion  of  investment  in  any  security  or  class  of
securities ;

(xxxv) provide  for  the  payment  of  contribution  to  any  provident
fund which may be established by a society for the benefit of officers and
servants  employed  by  it  and  for  the  administration  of  such  provident
fund ;

3[4[(xxxv-a) prescribe the procedure for the election to societies,
provide  for  intimation  and  making  arrangements  for  holding  the
elections  of  the  committee  to  the  election  authority ;  to  provide  for
preparation of electoral rolls, for conduct of elections of the society
or  class  of  societies,  also  for  classification  of  societies  for  this
purpose ;]
5 *
(xxxv-c) prescribe  the  requisition  form  and  the  manner  in
which the motion of no-confidence can be brought under section 73-1D ;
*

6 *
7[(xxxv-d-1) prescribe the conditions, on which the society may
grant permission to a member to carry on the business of the kind
carried  on  by  it,  outside  its  area  of  operation,  under 8[section
73CA(A1)] ;]

*

*

*

9[(xxxv-d-2) prescribe  the  procedure  and  manner  of  holding
elections, including the latest technology to be used and the manner
of  classification  of  societies  for  the  purposes  of  elections ;  and  the
conditions  of  service  of  the  State  Co-operative  Election
Commissioner under section 73CB(1), (4), (11) of the Act ;]

(xxxv-e) prescribe  the  body  of  persons  for  selection  of  persons

on a panel for appointment, under section 74 (2) ;]
(xxxvi) prescribe  the  procedure  and  conditions  for  the  exercise  by

a  federal  society  of  the  powers  conferred  by  this  Act ;

(xxxvii) provide  for  general  meetings  of  the  members,  for  the
procedure  at  such  meetings  and  the  power  to  be  exercised  by  such
meetings ;

(xxxviii) prescribe  the  conditions  in  which  a  member  of  a  society

may be  disqualified from  voting ;

(xxxix) 10[provide for the removal and appointment of the committee
or  its  members]  and  other  officers  and  for  the  appointment  of
administrator  under  section  78  and  prescribe  procedure  at  meeting  of
the  committee  and  for  the  powers  to  be  exercised  and  the  duties  to  be
performed  by  the  committee,  administrator  and  other  officers ;

1 Clause (xxxii) was deleted by Mah. 16 of 2013, s. 81(b).
2 Clause (xxxii-a) was deleted by Mah. 11 of 2008, s. 26.
3 These clauses were inserted by Mah. 20 of 1986, s. 68(c).
4 Clause (xxx-a) was substituted by Mah. 16 of 2013, s. 81(c).
5 Clause (xxxv-b) was deleted ibid., s. 81(d).
6 Clause (xxxv-d) was deleted ibid., s. 81(e).
7 Clause (xxxv-d-1) was inserted by Mah. 31 of 2007, s. 4.
8 The word, figures letters and brackets were substituted for the word, figures, letters and

brackets “section 73F(2)” by Mah. 16 of 2013, s. 81(f).

9 Clause (xxxv-d-2) was inserted, ibid., s. 81(g).
10 These words were substituted for the words “provide for the appointment, suspension and

removal of the members of the committee” by Mah. 33 of 1963, s. 32(b).

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139

(xl) prescribe  qualifications  for  members  of  the  committee  and
employees  of a  society  or  class of  societies, 1[duties  to  be  performed  by,
and  several  and  joint  liabilities  therefor,  of  such  members]  and  the
conditions  of  service  subject  to  which  a  person  may  be  employed  by
societies ;

2[(xl-a) prescribe  the  amount  and  nature  of  the  security  to  be
furnished by any officers or employees of any society or class of societies,
who are required to handle cash, securities or property belonging to the
society, the maximum amount of cash which may be handled or kept at a
time by any officer or employee, and the amount, in excess of which, all
payments  shall  be  made  by  or  on  behalf  of  the  society  by  means  of  a
cheque ;]

(xli) 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 ;

(xlii) provide for the persons by whom and the form in which copies
of  documents and  entries  in books  of  societies may  be  certified and  the
charges  to  be  levied  for  the  supply  of  copies  thereof ;

(xliii) 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 affairs of which
have been ordered to be wound up, by the Registrar or by a person entitled
to  the  same  is  resisted  or  obstructed ;

(xliv) provide for the procedure to be adopted for taking possession
of books, documents,  securities, cash and other property of  a society by
a  person  acting  under  sections  81,  83  and  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  likely  to  be  tampered  with  or
destroyed  or  removed ;

(xlv) prescribe  the  accounts  and  books  to  be  kept  by  a  society  or
class  of  societies ; 3[prescribe  the  form,  including  electronic  form,  of
accounts and books to be kept by a society or class of societies ;]

(xlvi) prescribe the procedure for conducting an audit, the matters
on  which  the  auditor  shall  submit  a  report,  the  form  in  which  the
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 memorandum and report and the charges, if any, to be
paid by a society for audit ;

4[(xlvii) prescribe  the  procedure  for  appointment  of  auditors  under
sections  75  and  81  and  fees  to  be  paid  to  such  auditors ;  laying  audit
reports  of  Apex  Societies  before  both  Houses  of  the  State  Legislature ;
norms  of  qualifications,  experience  and  disqualifications  of  an  auditor ;
and  form of  audit  report ;]

(xlviii) prescribe the form for the rectification of defects discovered

in  the  course  of audit,  inspection  or  inquiry ;

(xlix) prescribe  the  procedure  and  principles  for  the  conduct  of

inquiry  under  section  83  and  inspection  under  section  84 ;

1 These words were inserted by Mah. 33 of 1963, s. 32(e).
2 Clause (xl-a) was inserted by Mah. 27 of 1969, s. 26.
3 These words were added by Mah. 16 of 2013, s. 81(h).
4 Clause (xlvii) was substituted for the original, ibid., s. 81(i).

H 4112—19a

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[1961 : Mah. XXIV

(l) prescribe the procedure for apportioning the cost of inquiry and
inspection and for assesing damages against delinquent promotors under
section 88 and for recovery of cost and damages ;

(li) prescribe the manner in which appointment shall be made and
control  exercised  by,  and  the  number  of  persons  comprising,  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 expenses
required  to  be  levied  under this  Act  or  the  rules ;

1[(lii) prescribe  the  qualification  of  the  members  constituting  the
Co-operative  Courts,  provide  for  the  terms  and  conditions  of  their
appointment,  prescribe  the  procedure  to  be  followed  in  proceedings
before 2[the  Co-operative  Courts] ; 3[provide  for  fixing,  levying  and
collecting  appropriate  fees  and  expenses  for  determining  the  disputes
(including  expenses  incurred  by  the  parties  to  the  proceedings),  having
regard  to  the  services  rendered  or  to  be  rendered  or  any  expenditure
incurred  or  likely  to  be  incurred  for  the  machinery  set-up  therefor,
provide  for  delegation  of  the  power  of  fixing  the  scale  of  any  such  fees
and  expenses  to  the  Registrar,  (and  all  such  fees  and  expenses  being
applicable to any disputes and other proceedings which may be pending
immediately before the commencement of the Maharashtra Co-operative
Societies (Third Amendment) Act, 1973, or which may be referred to or
instituted  thereafter),  provide  for  the  mode  of  payment  of  these  fees
and expenses whether in the form of court-fee stamps, in cash or in any
other manner ; and provide for enforcing the decisions, awards or orders
in  such  proceedings] ;]

1 Clause (lii) was substituted by Mah. 3 of 1974, s. 46(a).
2 These words were substituted for the words “ the Registrar and the Co-operative Courts ”

by Mah. 18 of 1982, s. 16.

3 This portion was deemed to have been substituted for the portion beginning with the words
“ and provide for ” and ending with the words “ such proceedings ”  by Mah. 58 of 1977, s.2
with effect from 21st February 1974.

Section 3 of Mah. 58 of 1977 reads as follows :—
“ 3. Notwithstanding anything contained in the principal Act or the rules or orders made
thereunder or the orders made under these rules, or any other law for the time being in force,
or in any judgement, decision, decree, award or order of any Court or Tribunal, rule 86 of the
Maharashtra Co-operative Societies Rules, 1961, made or purported to have been made by
the State Government under clause (lii) of sub-section (2) of section of 165 of the principal
Act with effect from the 1st March 1975 and the orders made or purported to have been
made, from time to time, by the Registrar under the said rule, shall be deemed to have been
duly and validly made under the authority of the said section, as amended by this Act and
shall  continue  to  be  in  force  in  the  same  form,  until  duly  repealed  or  amended  by  the
competent authority. And, accordingly, any action taken by the Registrar in laying down the
fees and expenses to be paid to him or the Co-operative Court for determining the disputes
and  other  proceedings  and  for  making  them  applicable  also  to  the  disputes  and  other
proceedings pending immediately before the commencement of the Maharashtra Co-operative
Societies (Third Amendment) Act, 1973, and transferred to the Co-operative Courts, and
any fees already levied and collected or which may be levied and collected hereafter in the
form of court-fees, in cash or in any other manner, shall be deemed to be valid. The fixing,
levying and collection of these fees and expenses in any disputes or other proceedings shall
not be called in question before any Court or Tribunal merely on the ground that there is no
authority for fixing or levying such fees or expenses or that such fees or expenses were not or
are not chargeable in any pending proceedings or that such fee cannot be levied or collected
in the form of court-fee stamps or on such other ground.”.

Mah. III
of 1974.

Mah. III
of 1974.

Validation of
charging and
manner of
charging of
fees and
expenses for
determining
disputes,
according to
the scales laid
down in
existing rule
86 and orders
made
thereunder.

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Maharashtra Co-operative Societies Act, 1960

141

(liii) prescribe the form in which a dispute shall be referred to the
1[Co-operative  Court] ; 2[prescribe  procedure  for  transfer  of  disputes  for
mediation  compromise  under  section  93(4) ;]

(liv) provide  for  the  issue  and  service  of  processes  and  for  proving

of  service  thereof ;

(lv) provide for the investigation of claims and objections that may

be  preferred  against  any  attachment  effected 3[under  section  95] ;

(lvi) prescribe the procedure for and the method of recovery of any

sums due under this Act or the rules ;

(lvii) prescribe  the  procedure  to  be  followed  for  the  custody  of

property  attached  under  section  95 ;

(lviii) prescribe  the  procedure  to  be  followed  in  the  execution  of

awards ;

(lix) prescribe the manner in which any property shall be delivered
to, and the terms and conditions subject to which such property shall be
held by a society, under section 100 ;

4[(lix-a) to prescribe the manner in which inquiry is to be made by
the Registrar for grant of certificate for recovery under section 101; the
form and procedure  for the application for grant of  such certificate and
the  fees  and  documents  to  be  accompanied  thereto;] 5[prescribe  form  of
Statement  of  Accounts  and  other  documents ;]

(lx) prescribe  the  procedure  for  attachment  and  sale  of  property
for  the  realisation  of  any  security  given  by  a  person  in  the  course  of
execution  proceedings ;

(lxi) 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 ;

(lxii) prescribe  the  matters  in  which  an  appeal  shall  lie  from  the

order  of  a  Liquidator  appointed  under  section  103 ;

(lxiii) prescribe  the  procedure  and  conditions  for  the  issue,
redemption, re-issue, transfer, replacement or conversion of debentures
issued by a society to which Chapter XI is applicable ;

(lxiv) prescribe  the  maximum  amount  of  principal,  the  rate  of
interest and other conditions for the guarantee of debentures issued by
a  society to  which  Chapter  XI is  applicable ;

(lxv) prescribe  the  qualifications  and  methods  of  appointment  of
an officer to effect sale under section 133 and the powers and functions
which  such  an  officer  may  exercise ;

(lxvi) 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,  the  powers  and
functions  which  he  may  exercise  and  the  expenses  of  management  and
remuneration  which  he  may  receive ;

(lxvii) prescribe  the  circumstances  in  which  action  may  be  taken
by 6[an  Agriculture and  Rural  Development  Bank] against  a  mortgagor
under  section  133(2) ;

1 These words were substituted for the word “ Registrar ” by Mah. 22 of 1991, s.3, the Second

Schedule.

2 These words were added by Mah. 16 of 2013, s. 81(j).
3 These words and figures were substituted for the words “ by the Registrar ” by Mah. 33 of

1963, s. 32 (d).

4 Clause (lix-a) was inserted by Mah. 20 of 2006, s. 3.
5 These words were added by Mah. 16 of 2013, s. 81(k).
6 These words were substituted for the words “ a land development bank ” by Mah. 5 of 1990,

s. 18(a).

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[1961 : Mah. XXIV

(lxviii) 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 disposal of the

proceeds  of  sale ;

(d) the procedure for a resale if an attempted sale is abandoned
or the purchase money is not  deposited within the prescribed time
and  the  penalty  to  be  levied  against  the  purchaser  who  fails  so  to
deposit  the  purchase  money ;

(e) the form and method of disposal of money by 1[a Co-oprative
Agriculture  and  Rural  Multipurpose  Development  Bank]  under
section  135 ;

(f) the  form  of  sale  certificate  under  section  136 ;

(g) the procedure for the delivery by the Court of the property

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 the manner
of serving such notices on, and of the transmitting landlords’ fee to,
the  landlord  named  in  such  notices ;

(lxix) prescribe the time within which and the procedure according
to  which  property purchased  by 1[a  Co-operative  Agriculture  and  Rural
Multipurpose Development Bank] at a sale of immovable property under
Chapter XI shall be disposed of by the bank ;

(lxx) prescribe  the  procedure  to  be  followed  in  presenting  and

disposing  of  appeals ;

2[(lxxi) prescribe  the  qualifications  and  the  period  of  office  of

members  of  the  Co-operative  Appellate  Court ;]

(lxxii) prescribe in the case of appeals lying to the State Government

the  authority  to  which  power  of  hearing  appeals  may  be  delegated ;

(lxxiii) prescribe  the  method  of  communicating  or  publishing  any
order, decision or award required to be communicated or published under
this Act or the rules ;

(lxxiv) provide  that  the  contravention  of  any  of  the  rules  shall  be

an  offence under  the  Act ;

(lxxv) provide  for  all  other  matters  expressly  required  or  allowed

by this Act to be prescribed by rules.

1 These words were substituted for the words “ an Agriculture and Rural Development Bank ”

by Mah. 41 of 2005, s. 8.

2 Clause (lxxi) was substituted by Mah. 3 of 1974, s. 46 (b).

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

143

Repeal,
saving and
Construction.

Bom.
VII of
1925.

(3) The  power  to  make  rules  conferred  by  this  section  is  subject  to  the

condition  of  the  rules  being  made  after  previous  publication.

(4) All rules made under this section shall be laid for not less than thirty
days  before  each  House  of  the  State  Legislature  as  soon  as  possible  after
they  are  made,  and  shall  be  subject  to  such  modification  as  the  Legislature
may  make  during  the  session  in  which  they  are  so  laid,  or  the  session
immediately  following.

166.

(1) The Bombay Co-operative Societies Act, 1925, in its application

to the State of Maharashtra is hereby repealed :

Provided  that,  the  repeal  shall  not  affect  the  previous  operation  of  the
Act  so  repealed  and  anything  done  or  action  taken  or  deemed  to  have  been
done  or  taken  (including  any  appointment  or  delegation  made,  application
or  other  document  filed,  certificate  of  registration  granted,  agreements
executed,  notification,  order,  direction  or  notice  issued,  regulation,  form  or
by-law  framed,  rule  made  or  deemed  to  be  made  or  proceeding  instituted
before  any  Registrar,  arbitrator,  liquidator  or  tribunal  or  other  officer,
authority or person) by or under the provisions of that Act shall, in so far as
it is not inconsistent with the provisions of this Act, be deemed to have been
done  or  taken  under  the  corresponding  provisions  of  this  Act,  and  shall
continue in force unless and until superseded by anything done or any action
taken under  this Act.

(2) Accordingly, all societies registered or deemed to be registered under
the  Act  repealed  the  registration  of  which  is  in  force  at  the  commencement
of  this  Act,  shall  on  such  commencement  be  deemed  to  be  registered  under
this  Act ;  and  all  proceedings  pending  immediately  before  such
commencement  before  any  Registrar,  arbitrator,  liquidator  or  tribunal  or
other  officer,  authority  or  person  under  the  provisions  of  the  repealed  Act
shall  stand  transferred,  where  necessary,  to  the  Registrar,  arbitrator,
liquidator  or  tribunal  or  other  corresponding  officer,  authority  or  person
under this Act, and if no such officer, authority or person exists or if there be
a  doubt  as  to  the  corresponding  officer,  authority  or  person  to  such  officer,
authority  or  person  as  the  State  Government  may  designate  and  shall  be
continued  and  disposed  of  before  such  officer,  authority  or  person  in
accordance  with  the  provisions  of  this  Act.

(3) Any  reference to  the  Act  repealed or  to  any  provisions thereof  or  to
any officer, authority or person entrusted with any functions thereunder, in
any law for the time being in force or in any instrument or document, shall be
construed,  where  necessary,  as  a  reference  to  this  Act  or  its  relevant
provisions or the corresponding officer, authority or person functioning under
this Act, and the corresponding officer, authority or person, as the case may
be,  shall  have  and  excercise  the  functions  under  the  repealed  Act  or  under
the  instrument  or  document.

Mah.
XVI of
2013.

1[(4) Notwithstanding  anything  contained  in  this  Act,  as  amended  by
the Maharashtra Co-operative Societies (Amendment) Act, 2013, but subject
to the provisions of sub-section (15) of section 73CB, the committees of which
the  elections  become  due  after  the  31st  March  2013,  shall  continue  till  the
elections  to  such  societies  are  held  under  the  provisions  of  this  Act  as
amended by the said Act, All the orders of the Administrator, Liquidator or
the  Registrar  shall  continue  for  the  period  mentioned  in  such  order  as  if

1 Sub-section (4) was inserted by Mah. 16 of 2013, s. 82.

144

Maharashtra Co-operative Societies Act, 1960

[1961 : Mah. XXIV

Companies
Act not to
apply.

Power to
remove
difficulty.

such  orders  are  passed  under  this  Act  as  amended  by  the  said  Act.  All
proceedings  pending  before  the  Registrar,  person  authorised  by  him,
Liquidator or any other officer, or authority or court under the provisions of
this  Act  shall stand  transferred  wherever  necessary  to  the Registrar  or  any
corresponding  officer  or,  authority  or  court  under  the  provisions  of  this  Act
as  amended  by  the  said  Act  and  shall  be  continued  or  disposed  of  by  such
Registrar,  officer,  authority  or  court,  in  accordance  with  the  provisions  of
this Act as amended by the said Act :

Provided  that, any  such  committee of  the society  shall  continue till  the

newly  elected  committee  assumes  the  office.]

167. For the removal of doubt, it is hereby declared that the provisions
of the Companies Act, 1956 shall not apply to societies registered, or deemed
to  be  registered,  under  this  Act.

I of
1956.

1[168.

(1) If  any  difficulty  arises  in  giving  effect  to  the  provisions  of
this Act, as amended by the Maharashtra Co-operative Societies (Amendment)
Act, 2013, the State Government may, by an order published in the Official
Gazette,  make  such  provisions  not  inconsistent  with  the  provisions  of  this
Act,  as  amended  by  the  said  Act,  as  may  appear  to  it  to  be  necessary  or
expedient  for  the  purpose  of  removing  the  difficulty  :

Provided  that, no  such order  shall be  made after  the expiry  of a  period
of  two  years  from  the  date  of  commencement  of  the  Maharashtra
Co-operative  Societies  (Amendment)  Act,  2013.

Mah.
XVI of
2013.

Mah.
XVI of
2013.

(2) Every order made under sub-section (1) shall be laid, as soon as may

be, after it is made, before each House of the State Legislature.]

1 Section 168 was inserted by Mah. 16 of 2013, s. 83.

GOVERNMENT CENTRAL PRESS, MUMBAI

1961 : Mah. XXIV]

Maharashtra Co-operative Societies Act, 1960

145

Maharashtra Government Publication
can be obtained from—

THE  DIRECTOR
GOVERNMENT PRINTING, STATIONERY AND PUBLICATION
MAHARASHTRA  STATE
Netaji Subhash Road,
MUMBAI 400 004.
Phone : 022 - 23632693, 23630695,
23631148, 23634049

THE MANAGER
GOVERNMENT PHOTOZINCO PRESS AND BOOK DEPOT
Photozinco Press Area, Near G.P.O.,
PUNE 411 001.
Phone : 020 - 26125808, 26124759

THE MANAGER
GOVERNMENT PRESS AND BOOK DEPOT
Civil Lines,
NAGPUR 440 001.
Phone : 0712 - 2562615

THE ASSTT. DIRECTOR
GOVERNMENT STATIONERY, STORE AND BOOK DEPOT
Shaha Ganj, Near Gandhi Chowk,
AURANGABAD 431 001.
Phone : 0240 - 2331468, 2331525

THE MANAGER
GOVERNMENT PRESS AND STATIONERY STORE
Tarabai Park,
KOLHAPUR 416 003.
Phone : 0231-2650395, 2650402

AND THE RECOGNISED BOOKSELLERS

