INCORPORATION, DUTIES PRIVILEGES OF SOCIETIES
36.
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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 proceedings and to do all such things as are necessary for
the purpose for which it is constituted.
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37.
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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 addresses, within thirty days
thereof.
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38.
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(1)
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Every society shall keep a register of
its members and enter therein the following particulars, that is to say,—
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(a)
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the name, address and occupation of each
member ;
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(b)
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in the case of a society having share
capital, the share held by each member,
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(c)
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the date on which each person was
admitted a member;
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(d)
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the date on which any person ceased to be
a member; and
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(e)
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such other particulars as may be
prescribed:
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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 shire or interest of the member, and the
date on which the nomination was recorded.
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(2)
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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.
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39.
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Every society shall keep at the
registered address of the society, a copy of this Act and the rules and of
its bye-laws and a list of members, open to inspection to the public, free of
charge, during office hours or any hours fixed by the society therefore.
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40.
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(1)
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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.
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(2)
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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 proceedings to which the society is not a party,
be compelled to produce any of the society's books, the contents of which can
be proved under the foregoing sub-section, or to appear as a witness to prove
the matters, transactions and accounts therein recorded, unless by order of
the Court or a Judge made for special cause.
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41.
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Nothing in clauses (b) and (c) of
sub-section (1), of section 17, of the Indian Registration Act, 1908, shall
apply-
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(a)
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to any instrument relating to shares in a
society, notwithstanding that the assets of the society consist in whole or
in part of immovable property ; or
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(b)
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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 insofar as it entitles
the bolder to the security afforded by a registered instrument whereby, the
society has mortgaged, 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
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(c)
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to any endorsement upon, or transfer of,
any debentures issued by any society.
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42.
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(1)
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The State Government, by notification in
the Official Gazette may, in the case of any society or class of societies
reduce or remit whether prospectively or retrospectively, in the whole of the
State or any part thereof;
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(a)
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the stamp duly 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 award of
the Registrar or Co-operative Courts under this Act, are respectively
chargeable.
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(b)
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any fee payable by or on behalf of a
society under the law relating to the registration of documents and to Court
fees, for the time being in force, and
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(c)
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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.
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(2)
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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.
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43.
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(1)
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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 bye-laws of the
society.
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Provided that, the co-operative credit
structure entity shall adopt its own policies regarding interest rates on
deposits and loans in conformity with “guidelines of the Reserve Bank of
India or the National Bank”. [* Was
inserted By MAH. XXIV of 1961]
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(2)
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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 utilization of such funds in furtherance of the
objects of the society or societies concerned and for keeping them within the
borrowing limit as laid down in the rules and bye-laws, the Registrar may, by
general or special order, impose additional conditions on any society or
class of society or such class of societies may receive deposits, issue
debentures or raise loans from any creditor other than a Central Bank.
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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, “subsidy” [* Was inserted By MAH. XXIV of 1961] 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.
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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 conformity with “guidelines of the
Reserve Bank of India or the National Bank”. [* Was inserted By MAH. XXIV of 1961]
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(3)
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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,
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(a)
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borrow from any financial institution
regulated by the Reserve Bank of India, keeping in view the interest of the
society and its members;
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(b)
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decide interest rates on deposits and
loans; and
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(c)
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decide loan policies and issues relating
to individual loans;
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44.
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(1)
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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:
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Provided that, with the special sanction
of the Registrar, a society may make loan to another society
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(2)
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Notwithstanding anything contained in the
foregoing subsection, a society may make a loan to a depositor on the
security of his deposit.
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(3)
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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 Government 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 :
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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
bye-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.
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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 “guidelines of the Reserve Bank of India or the National Bank”. [* Was inserted By MAH. XXIV of 1961].
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44
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(A)
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Notwithstanding anything contained in any
agreement or any law for the time being in force, a society including a
Co-operative Bank but excluding an Agriculture and Rural Development Bank shall
not for any loan (including rehabilitation loan but excluding long term loan
for irrigation or agricultural development purposes or loan exceeding “rupees
ten thousand” [* Was substituted By
MAH. XXIV of 1961] for non-agricultural “or commercial” [* Was deleted By MAH. XXIV of 1961] 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.
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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.
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45.
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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.
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46.
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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
such member, 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:
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Provided that, no co-operative bank shall
have a charge upon any sum invested with it by a society out of the provident
fund established by it under section 71, or its reserve fund; and no
co-operative bank shall be entitled to set-off any such sum towards any debts
due from the society.
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47.
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(1)
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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.
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(a)
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Any debt or outstanding demand, owing to
a society by any member or past member or deceased member, shall be a first
charge;
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(i)
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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
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(ii)
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upon any cattle, fodder for cattle,
agricultural or industrial implements or machinery, or raw materials for
manufacture, or work-shop, Godown or place of business supplied to or
purchased by such member or past member or deceased member, in whole or in
part, from any loan whether in money or goods made to him by the society; and
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(iii)
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upon any movable property which may have
been hypothecated, pledged or otherwise mortgaged by a member with the
society and remaining in his custody;
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(b)
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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
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Explanation -The prior claim of
Government in respect of dues other than land revenue shall be restricted for
the purpose of subsection (1) to the assets created by a member out of the
funds in respect would, if produced,
have been admissible to prove such matters of which, the Government has a
claim.
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(2)
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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.
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(3)
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Any transfer made in contravention of
sub-section (2) shall be void.
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(4)
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Notwithstanding anything contained in
sub-sections (2) and (3), a society, which has one of its objects, the
disposal of the produce of its members, may provide in its bye-laws, or may,
otherwise contract with its members, —
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(a)
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That every such members shall dispose of
his produce through the society, and
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(b)
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That any member, who is found guilty of a
breach of the bye-laws or of any such contract, shall reimburse the society
for any loss, determined in such manner as may be specified in the bye-laws.
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48.
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Notwithstanding anything contained in
this Act or in any other law for the time being in force;
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(a)
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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, 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;
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(b)
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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;
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(c)
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a declaration made under clause (a) or
(b) may be varied at any time by a member, with the consent of the society in
favor of which such charge is created;
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(d)
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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:
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Provided that, it shall be lawful to a
member to execute a mortgage / bond in respect of such land or any part
thereof in favor of an Agriculture and Rural Development Bank or of the State
Government under the Bombay Canal Rules made under the Bombay Irrigation Act,
1879 or under any corresponding law for the time being in force for the
supply of water from a canal to such land, or to any part thereof:
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Provided further that, if a part of the
amount borrowed by a member is paid 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 outstanding from the member:
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(e)
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any alienation made in contravention of
the provisions of clause (d) shall
be void
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(f)
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subject to all claims of the Government in
respect of land revenue or any money recoverable as land revenue, and all
claims of the Agriculture and Rural 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 by the member on account of the loan;
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(g)
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and in particular, notwithstanding
anything contained in Chapter X of the Maharashtra Land Revenue Code, 1966,
the Record of Rights maintained there under shall also include the
particulars of every charge on land or interest created under a declaration
under clause (a) or (b), and also the particulars of extinction of such
charge
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Explanation - For the purposes of this
section the expression "society" means;
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(i)
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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
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(ii)
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Any society, or any society of the class
of societies, specified in this behalf by him State Government, by a general
or special order.
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48A
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(1)
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Where a loan has been advanced by any
society in accordance with the last preceding section for the growing of any
agricultural produce, or has been advanced by any other society which is an
Agricultural and Rural 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 therefore shall be
paid by the purchaser to the tenderer after deducting the dues of the
societies mentioned aforesaid 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 Committee in the manner
provided in the aforementioned section 30A the purchaser shall be discharged
of his liability to pay the price to the tenderer.
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The
amount of the deduction on account of loans advanced by societies shall 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:-
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(i)
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if the produce tendered for sale is
sugarcane 100%
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(ii)
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if the produce tendered for sale is
cotton 60%
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(iii)
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in any other case 40%
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(2)
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The Market Committee on receiving the
amount from the purchaser shall arrange 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 realization of the Cheque, the Market Committee shall be liable to
pay interest on such dues 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.
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(3)
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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:
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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 Agricultural and Rural 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.
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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.
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49.
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(1)
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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 installments 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.
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(2)
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On receipt of a copy of such agreement,
employer shall, if so required by the society by a requisition in writing,
and as long as the 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.
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(3)
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If after the receipt of a requisition
made under the foregoing subsection, the employer at any time fails to deduct
the amount specified in the requisition from the salary or wages payable to
the member concerned, or makes default in remitting the amount deducted to
the society, the employer shall be personally liable for the payment 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 recoverable 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.
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(4)
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Nothing contained in this section shall apply
to persons employed in any railways (within the meaning of the Constitution)
and in mines and oil fields.
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