An Act to consolidate and amend the law relating to co-operative societies with objects not confined to one State and serving the interests of members in more than one State.
BE it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows: -
Section 1. Short title, extent and commencement
(1) This Act may he called The Multi-State Co-operative Societies Act. 1984.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may. by notification in the Official Gazette, appoint.
Section 2. Application
This Act shall apply to-
(a) All co-operative societies, with objects not confined to one State, which were incorporated before the commencement of this Act.
(i) Under the Co-operative Societies Act. 1912. or
(ii) under any other law relating to co-operative societies in force in any State pr in pursuance of the Multi-unit. Co-operative Societies Act. 1942. and the registration of which has not been cancelled before such commencement: and
(b) All multi-State Co-operative Societies.
Section 3. Definitions
In this Act, unless the context otherwise requires.-
(a) "Board" means the board of directors or the governing body of a multi-State co-operative society by whatever name called, to which the direction and control of the management of the affairs of the society is entrusted:
(b) "Bye-laws" means the bye-laws for the time being in force which have been duly registered under this Act and includes amendments thereto which have been duly registered under this Act:
(c) "Central Registrar" means the Central Registrar of Co-operative Societies appointed under sub-section (1 ) of section 4-and includes any officer empowered to exercise the powers of the Central Registrar under sub-section (2) of that section:
(d) "Chief Executive" means a Chief Executive of a multi-State co-operative society appointed under section 44-.
(e) "Co-operative bank" means a multi-State co-operative society, which undertakes banking business:
(f) "Co-operative principles" means the co-operative principles specified in the First Schedule:
(g) "Co-operative society" means a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State:
(h) "Co-operative year", in relation to any multi-State co-operative society or class of such societies. means the year ending on the 30th day of June and where the accounts of such society or class of such societies are. with the previous sanction of the Central Registrar, balanced on any other day, the year ending on such day:
(i) "Deposit Insurance Corporation" means the Deposit Insurance and Credit Guarantee Corporation established under section 3 of the Deposit Insurance Corporation Act. 1961-:
(j) "Member" means a person joining in the application for the registration of a multi-State Co-operative society and includes a person admitted to membership after such registration in accordance with the provisions of this Act. the rules and the bye-laws:
(k) "Multi-State co-operative society" means a society registered or deemed to be registered under this Act and includes a national co-operative society:
(l) "Multi-State co-operative society with limited liability" means a society having the liability of its members limited by its bye-laws to the amount, if any. unpaid on the shares respectively. held by them or to such amount as they may. respectively, thereby undertake to contribute to the assets of the society, in the event of its being wound up:
(m) "National co-operative society" means .a multi-State co-operative society specified in the Second Schedule;,
(n) "Notification" means a notification published in Official Gazette:
(o) "Officer means a president, vice-president, chairman, vice-chairman, managing director, secretary, manager, member of a board, treasurer, liquidator, an administrator appointed unde r section 48-and includes any other .person empowered under this Act or the rules or the bye-laws to give directions in regard to the business of a multi-State co-operative society;
(p) "Prescribed" means prescribed by rules:
(q) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934: .
(r) "Rules" means the rules made under this Act.
Section 4. Central Registrar
(1) The Central Government may appoint a person, to be the Central Registrar of Co-operative Societies and may appoint such other persons as it may think fit to assist the Central Registrar.
(2) The Central Government may by notification, direct that any power exercisable by the Central Registrar under this Act (other than the power of registration of a multi-State co-operative society) shall in relation to such society, and such matters as may be specified in the notification be exercisable also by any other officer of the Central Government or of a State Government as may be authorised by the Central Government subject to such conditions as may be specified therein:
Provided that no officer of State Government shall be empowered to exercise such power in relation to a national co-operative society:
Provided further that no officer of a State Government below the rank of the Registrar of Co-operative Societies shall be empowered to exercise any power exercisable by the Central Registrar under Section 87-.
Section 5. Multi-State Co-operative Societies which may be registered
(1) No multi-State co-operative society shall be registered Under this Act. unless the main objects of the society are to serve the interests of members in more than one State.
(2) Subject to the provisions of sub-section (1). a multi-State co-operative society which has as its objects the promotion of the economic and social betterment of its members through mutual aid in accordance with the co-operative principles or a multi-State co-operative society established with the object of facilitating the operations of other such societies or of co-operative societies or of both maybe registered under this Act.
(3) The word "Limited" or its equivalent in any Indian language shall be suffixed to the name of every multi-State co-operative society registered under this Act with limited liability.
Section 6. Application for registration
(1) For the purposes of registration of a multi-State co-operative society under this Act. an application shall be made to the Central Registrar in such form and with such particulars as may he prescribed.
(2) The application shall be signed-
(a) In the case of a multi-State co-operative society of which all the members arc individuals, by at least fifty persons from each of the States concerned:
(b) In the case of a multi-State co-operative society of which the members arc co-operative societies, by duly authorised representatives on behalf of at least two such societies as are not registered in the same State, and
(c) In the case of a multi-State co-operative society of which another multi-Stale co-operative society and other co-operative societies are members, by duly authorised representatives of each of such societies:
Provided that not less than two of the co-operative societies referred to in clause (b) or clause(c). as the case may be, shall be such as are not registered in the same State.
(3) The application shall be accompanied by four copies of the proposed bye-laws of the multi-State co-operative society and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Central Registrar may require.
Section 7. Registration
(1) If the Central Registrar is satisfied-
(a) That the application complies with the provisions of this Act and the rules.
(b) That the proposed multi-Slate co-operative society satisfies the basic criterion that its objects are to serve the interests of members in more than one Slate:
(c) That there is no other multi-State co-operative society having similar area of operation and identical objects:
(d) That the proposed bye-laws arc not contrary to the provisions of this Act and the rules: and
(e) That the proposed multi-State co-operative society has reasonable prospects of becoming a viable unit. he may register the multi-State co-operative society and its bye-laws,
(2) Where the Central Registrar refuses to register a multi-State co-operative society, he shall communicate the order of refusal together with the reasons therefore, to such number of the applicants and in such manner as may he prescribed.
(3) The application for registration shall be disposed of by the Central Registrar within a period of six months from the date of receipt thereof by him:
Provided that if the Central Registrar is unable to dispose of the application within the period aforesaid. he shall make a report to the Central Government staling therein the reasons for his inability to do and the Central Government may allow him such further period or period as is considered necessary lo dispose of such application.
Section 8. Registration certificate
Where a multi-State co-operative society is registered under this Act, the Central Registrar shall issue a certificate of registration signed by him. which shall be conclusive evidence that the society therein mentioned is duly registered under this Act. unless it is proved that the registration of the society has been cancelled.
Section 9. Amendment of bye-laws of a multi-State co-operative society
(1) No amendment of any bye-laws of a multi-State co-operative society shall he valid, unless such amendment has been registered under this Act.
(2) Every proposal for such amendment shall he forwarded to the Central Registrar and if the Central Registrar is satisfied that the proposed amendment-
(a) Is not contrary to the provisions of this Act or of the rules:
(b) Does not conflict with co-operative principles: and
(c) Will promote the economic interests of the members of the multi-State co-operative society. he may register the amendment within a period of six months from the date of receipt thereof by him: Provided that if the Central Registrar is unable to register the amendment within the period aforesaid he shall make a report to the Central Government staling therein the reasons for his inability to do so and the Central Government may allow him such further period or periods as is considered necessary to register the amendment.
(3) The Central Registrar shall forward to the multi-State co-operative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered.
(4) Where the Central Registrar refuses to register an amendment of the bye-laws of a multi-State co-operative society, he shall communicate the order of refusal together with the reasons therefore to the Chief Executive of the society in the manner prescribed within seven days from the date of such refusal.
Section 10. When amendment of bye-laws comes into force
An amendment of the bye-laws of a Multi-State co-operative society shall, unless it is expressed to come into operation on a particular day. come into force on the day on which it is registered.
Section 11. Change of name
(1) A multi-State co-operative society may. by an amendment of its bye-laws, change in name hut such change shall not affect any right or obligation of the multi-State co-operative society or of any of its members or past members, and any legal proceedings which might have been continued or commenced by or against the multi-State co-operative society by its former name may be continued or commenced by or against its new name.
(2) Where a multi-State co-operative society changes its name. the Central Registrar shall enter the new name on the register of multi-State co-operative societies in place of the former name and shall amend the certificate of registration accordingly.
Section 12. Change of address
Every multi-State co-operative society shall have a principal place of business and an address registered in the manner prescribed to which all notices and communications may be sent and any change in the principal place of business of a multi-State co-operative society shall be made with the previous approval of the Central Registrar.