The 28th July, 2014
No. 15.-Leg./2014.-The following Act of the Legislature of the State of
Punjab received the assent of the Governor of Punjab on the 3rd Day of July,
2014, is hereby published for general information:-
THE PUNJAB CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013
(Punjab Act No. 14 of 2014)
AN
ACT
further to amend the Punjab Co-operative Societies Act, 1961.
BE it enacted by the Legislature of the State of Punjab in the Sixty-fourth Year
of the Republic of India as follows:-
1. (1) This Act may be called the Punjab Co-operative Societies
(Amendment) Act, 2013.
be pre(2) It shall come into force at once.
hairman of the
committee.”
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PUNJAB GOVT. GAZ, (EXTRA), JULY 28, 2014 47
(SRVN 6, 1936 SAKA)
PART I
GOVERNMENT OF PUNJAB
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB
NOTIFICATION The 28th July, 2014
No. 15.-Leg./2014.-The following Act of the Legislature of the State of Punjab received the assent of the Governor of Punjab on the 3rd Day of July,
2014, is hereby published for general information:-
THE PUNJAB CO-OPERATIVE SOCIETIES (AMENDMENT) ACT, 2013 (Punjab Act No. 14 of 2014)
AN
ACT
further to amend the Punjab Co-operative Societies Act, 1961.
BE it enacted by the Legislature of the State of Punjab in the Sixty-fourth Year of the Republic of India as follows:-
1. (1) This Act may be called the Punjab Co-operative Societies Short: title and (Amendment) Act, 2013.
(2) It shall come into force at once.
2. In the Punjab Co-operative Societies Act, 1961 (hereinafter referred Amendment of to as the principal Act), in section 2,- sectwn 2 °f
Punjab Act 25 of
(i) after clause (aa), the following clause shall be inserted, namely:- 1961,
“(aaa) “Chairman” means the Chairman of the committee;”
(ii) in clause (k), the word “and” appearing at the end, shall be omitted; and
(iii) in clause (l), for the sign “.” appearing at the end, the sign and word “; and” shall be substituted and thereafter the following clause shall be added, namely:-
“(m) “Vice-Chairman” means the Vice-Chairman of the committee.”
3. In the principal Act, for section 6, the following section shall be Substitution of substituted, namely:- sectwn 6 °f
Punjab Act 25 of
“6. No member other than the Government or a co-operative 1961. Restrictions on society shall, hold more than such portion of the share holdmg °f shares. capital of a co-operative society, as may be prescribed,
which in no case shall exceed one-tenth of the share capital.”.
4. In the principal Act, in section 10, in sub-section (4), for the sign “.” appearing at the end, the sign “:” shall be substituted and thereafter the following provisos shall be added, namely:-
Amendment of section 10 of Punjab Act 25 of 1961.
“Provided that no order refusing to register the amendment shall be passed without giving the co-operative society an opportunity of being heard:
Provided further that the proposal for registration of the amendment shall be disposed of by the Registrar within a period of sixty days from the date of receipt thereof by him.”.
5. In the principal Act, in section 13, in sub-section (1), for the words “two third majority of the members present and voting at a general meeting of the society”, the words “majority of the members present and voting at the general meeting at which not less than two third of members for the time being are present” shall be substituted.
Amendment of section 13 of Punjab Act 25 of 1961.
Substitution of section 18 of Punjab Act 25 of 1961.
6. In the principal Act, for section 18, the following shall be substituted, namely:-
“18. Every member of the co-operative society shall have one
Votes of vote in the affairs of the society:
members.
Provided that-
(a) a member who has attended less than two general meetings out of the last five general meetings; or
(b) a member who has failed to utilize such minimum services, as may be specified in the bye-laws; or
(c) a person who has been a member of the cooperative society for a period of less than nine months,
shall not be eligible to participate in the general meeting of the
co-operative society for election to the committee of the
co-operative society:
Provided further that-
(a) in the case of an equality of votes, the chairman shall have a second or casting vote;
(b) a nominal or associate member shall not have the right of vote; and
(c) where the Government is a member of the co-operative society, each person nominated by the Government on the committee shall have one vote.”.
7. In the principal Act, in section 19, in sub-section (2), for the words "one of its members", the words "one of the members of its committee” shall be substituted.
Amendment of section 19 of Punjab Act 25 of 1961.
Amendment of section 23 of Punjab Act 25 of 1961.
8. In the principal Act, in section 23, for sub-section (1-A), the following sub-section shall be substituted, namely:-
“(1-A) Notwithstanding anything in sub-section (1), where a co-operative society consists of not less than one thousand or such greater number of members as may be prescribed, the society may provide in its bye-laws for the constitution of a smaller general body designated as the representative general body, to be elected in the prescribed manner for a term of not more than five years, consisting of such number of members of the society and to exercise all or such of the powers of the general body as may be specified in the bye-laws and thereupon any reference in this Act to the general body or meeting thereof shall be construed as a reference to the representative general body or its meeting:
Provided that the representative general body shall not alter any provision in the bye-laws relating to its constitution or powers:
Provided further that not less than twenty percent of the total members of the co-operative society may requisition a meeting of the general body for re-constitution of the smaller general body. On receipt of such requisition, the committee shall call a meeting of the general body not later than one month from the date of receipt of such requisition. If in such a meeting of the general body, it is decided by a majority of members present and voting to reconstitute the smaller general body, then the election to such smaller general body shall be held within forty five days thereof .”.
9. In the principal Act, for section 24, the following shall be substituted, namely:-
Substitution of section 24 of Punjab Act 25 of 1961.
“24. Annual general meeting of a co-operative society shall be Annual general called by the Chairman or in his absence by the Vicemeeting. Chairman within a period of six months of close of the financial year every year for the purpose of-
(a) approval of the programme of the activities of the society prepared by the committee for the ensuing year;
(b) election, if any, of the members of the committee other than nominated members;
(c) consideration of the audit report and the annual report;
(d) disposal of the net profits;
(e) appointment of auditor or auditing firm;
(f) information regarding admission and termination of members;
(g) information regarding amendment of bye-laws registered in the previous year;
(h) consideration of any inspection report under section 49 of this Act and any inquiry report under section 50 of this Act and action taken thereon by the concerned authority ;
(i) information regarding instructions issued by the Registrar under rule 45 of the Punjab State Co-operative Societies Rules, 1963;
(j) information regarding transfer or lease or mortgage of immovable assets of the co-operative society ;
(k) consideration of the loans and advances made to the members of the committee and their relatives , the defaults , if any , and the action taken for recovery thereof ; and
(l) consideration of any other matter which may be brought forward in accordance with the bye-laws:
Provided that if the Chairman or the Vice-Chairman, as the case may be, fails to hold an annual general meeting within the specified period, he shall, after affording an opportunity of being heard,be liable to be removed from the office after the expiry of the specified period:
Provided further that in such a case the Registrar shall hold such meeting either by himself or through an officer authorized by him and such meeting shall have the same effect
as if it was convened by the Chairman or Vice-Chairman himself:
Provided further that where the committee of any co-operative society has divided the area of operation of the society into zones in the manner laid down in sub-section (1-A) of section 26, election of the members of the committee may not be held in general meeting.”.
10. In the principal Act, in section 26,-
Amendment of section 26 of Punjab Act 25 of 1961.
(i) for sub-section (1), the following sub-section shall be substituted, namely:-
“(1) The members of the committee of a co-operative society shall be elected in the manner prescribed and no person shall be so elected unless he is a share holder of the society:
Provided that the maximum number of members of the committee of a co-operative society shall not exceed twenty-one:
Provided further that there shall be reservation of one seat for the scheduled castes and two seats for women on the committee of every co-operative society consisting of individuals as members and having members from such class or category of persons.”.
(ii) for sub-section (1-B), the following sub-section shall be substituted, namely:-
“(1-B) The term of office of elected members of the committee and its office bearers shall be five years from the date of election and the term of office bearers and shall be coterminous with the term of the committee:
Provided that the committee may fill a casual vacancy on the committee by nomination out of the same class of members in respect of which the casual vacancy has arisen, if the term of office of the committee is less than half of its original term:
Provided further that such casual vacancy shall be filled in a meeting of the committee held in the presence
of a nominee of the Registrar.”.
(iii) in sub-section (1-D), for the existing proviso, the following shall be substituted, namely:-
“Provided that the period for which an Administrator may be appointed, shall not in case of a co-operative society carrying on the business of banking exceed one year and shall not exceed six months in case of other co-operative society.”.
(iv) in sub-section (2), after the words "sub-section (1)", the words "but subject to a ceiling of twenty one members of the committee" shall be added.
11. In the principal Act, in section 26-A,-
Amendment of section 26-A of Punjab Act 25 of 1961.
(i) in sub-section (2), the words and sign “scheduled castes, scheduled tribes or", shall be omitted and thereafter the following proviso shall be added, namely:-
“Provided that the maximum number of members of the committee shall not exceed twenty one excluding the members co-opted under sub-section (4).”.
(ii) after sub-section (3), the following sub-section (4) shall be added, namely:-
“(4) Notwithstanding anything contained in sub-section (1), the committee shall co-opt as members from amongst the persons having an experience in the field of banking, management and finance or having specialization in any field relating to the objects and activities undertaken by such a society:
Provided that the number of such co-opted members of the committee shall not exceed two in addition to twenty-one members specified in the first proviso to sub-section (1) of section 26:
Provided further that such co-opted members shall not have the right to vote in any election of the co-operative society in their capacity as such member and shall also not to be eligible to be elected as office bearers of the committee:
Provided further that the functional directors of a cooperative society shall also be the members of the committee
and such members shall be excluded for the purpose of counting the total number of members specified in the first proviso of sub-section (1) of section 26.”.
12. In the principal Act, in section 27, for sub-section (1), the following Amendment of shall be substituted, namely:- sectira 27 °f
Punjab Act 25 of
“(1) If, in the opinion of the Registrar, a committee or any 1961. member of a committee persistently makes default or is negligent in the performance of the duties imposed on it or him by this Act or the rules or bye-laws made thereunder, or commits any act which is prejudicial to the interest of the society or its members, or makes default in the implementation of production or development programmes undertaken by the co-operative society, or there is stalemate in the constitution or functions of the committee, the Registrar may, after giving the committee or the member, as the case may be, a reasonable opportunity to state its or his objections, if any, by order in writing,-
(a) remove the committee, and appoint a Government servant as an administrator, to manage the affairs of the society for a period not exceeding six months, as may be specified in the order; and
(b) remove the member and get the vacancy filled up through election for the remaining period of the outgoing member, according to the provisions of this Act and rules and bye-laws made there under:
Provided that the committee of any such co- operative society shall not be superseded or kept under suspension where there is no Government shareholding or loan or financial assistance or any guarantee given by the Government:
Provided further that in case of a co-operative society carrying on the business of banking, the provisions of the Banking Regulation Act, 1949 (10 of 1949) shall also apply:
Provided further that in case of a cooperative society carrying on the business of banking, the period of six months mentioned in clause (a) shall be one year.
Explanation:- Co-operative societies which have been allotted land at concessional rates or at reserve price by any statutory authority or
Government organization shall be deemed to have taken financial assistance from the Government.”.
13. In the principal Act, after section 34, the following section shall be added, namely:-
Insertion of new section 34-A in Punjab Act 25 of 1961.
“34-A. Notwithstanding anything contained in the Provincial Insolvency of Insolvency Act, 1920 (5 of 1920), or any members. corresponding law for the time being in force, the dues of a co-operative society from a member, in insolvency proceedings, shall rank in order of priority next to the dues payable by him to the Government or to the local authority.”.
14. In the principal Act, in section 39, for sub-section (2), the following shall be substituted ,namely :-
Amendment of section 39 of Punjab Act 25 of 1961.
“(2) On the execution of such agreement, the employer shall, if so required by the co-operative society by a requisition in writing and so long as the society does not intimate that the whole of such debt or demand has been paid, make the deduction in accordance with the agreement within a period of two months of the requisition made by the co-operative society and pay the amount so deducted to the society within a period of fourteen days after deduction, as if it were a part of the salary or wages payable on the day as required under the Payment of Wages Act,1936 (IV of 1936). Such payment shall be valid discharge of the employer for his liability to pay the amount deducted.”.
15. In the principal Act, in section 48, -
Amendment of section 48 of Punjab Act 25 of 1961.
(i) for sub-section (1), the following sub-sections shall be substituted, namely:-
“(1) The accounts of co-operative societies shall be audited at least once in each year within a period of six months of the close of the financial year to which such accounts relate.
(1-A) The accounts of co-operative societies shall be audited by an auditor or auditing firm approved by the general body of the co-operative society from out of the panel of auditors or auditing firms approved by the Government or by an authority authorized by the Government in this behalf. The qualifications and experience of the auditors or auditing firms shall be such, as may be prescribed.”;
(ii) in sub-section (3), for the word "person", the words "auditor or the auditing firm” shall be substituted;
(iii) in sub-section (4), for the word "person", the words "auditor or the auditing firm" shall be substituted;
(iv) in sub-section (5), for the words "Registrar or the person, authorised by him", the words “auditor or the auditing firm authorised" shall be substituted;
(v) in sub-section (6), for the words "Registrar or the person authorised by him under sub-section (1)", the words "auditor or the auditing firm authorised under sub-section (1-A)", shall be substituted;
(vi) after sub-section (6), the following sub-sections shall be added, namely:-
“(6-A) The audit report of the accounts of an apex cooperative society shall be laid before the State Legislature.
(6-B) Audit report shall be submitted by the auditor or the auditing firm, as the case may be, to the co-operative society and a copy thereof shall be submitted to the Registrar.”; and
(vii) after sub-section (7), the following sub-section shall be added, namely:-
“(8) If the Registrar, suo moto, or on the application of not less than ten members of a co-operative society finds that it is necessary or expedient to conduct special audit of the accounts of a co-operative society, he may by an order, provide for such special audit and the provisions of this Act, and the rules applicable to the audit shall also apply to such special audit:
Provided that such special audit shall be ordered only when there is a prima-facie case of fraud or misappropriation or embezzlement of funds.”.
16. In the principal Act, in section 71,-
Amendment in section 71 of Punjab Act No. 25 of 1961.
(i) for sub-sections (1), (2) and (3), the following sub-sections shall be substituted, namely:-
“(1) Any person other than a co-operative society carrying on business under any name or title of which the word “co-operative”, or its equivalent in any India language,
is part, without the sanction of the Government shall be punishable with the fine which may extend to two thousand rupees and in the cases of continuing breach with a further fine which may extend to fifty rupees for every day during which the breach is continued after conviction for the first such breach:
Provided that if a person, having been convicted of an offence is again guilty of offence punishable under this sub section, shall be punishable for the second or subsequent offence for a term of imprisonment which may extend to three months and shall also be liable to pay fine which may extend to ten thousand rupees.
(2) Any member or past member or the nominee, heir or legal representative of a deceased member of a co-operative society who contravenes the provisions of sections 31 and 32 by disposing of any property in respect of which the society is entitled to have a first charge under that section or do any other act to the prejudice of such claim, shall be punishable with fine which may extend to five thousand rupees or with imprisonment upto three months or both.
(3) An officer or a member of a co-operative society wilfully making a false return or furnishing false information or any person wilfully or without any reasonable excuse disobeying any summons requisition or lawful written order issued under the provisions of this Act or wilfully failing to display or furnish in the specified manner any information required from him by a person authorized in this behalf under the provisions of this Act, shall be punishable with fine which may extend to two thousand rupees:
Provided that if a person, having been convicted of an offence under sub-section (3) is again guilty of an offence punishable under that sub section, he shall be punishable for the second or subsequent offence for a term of imprisonment which may extend to three months and shall also be liable to pay fine which may extend to ten thousand rupees.”;
(ii) in sub-section (4), for the word “five hundred”, the word “five thousand” shall be substituted;
(iii) for sub-section (5), the following sub-section shall be substituted, namely:-
“(5) Any officer or custodian who wilfully fails to handover custody of books, accounts, documents records, cash, security and other property belonging to a co-operative society, of which he is an officer or custodian to a person entitled under sections 26, 48, 49, 50 or 58 shall be punishable with fine which may extend to two thousand rupees and in the case of a continuing breach with a further fine which may extend to two hundred and fifty rupees for every day during which the breach is continued after conviction for the first such breach:
Provided that if a person, having been convicted of an offence is again guilty of an offence punishable under this sub section, he shall be punishable for the second or subsequent offence for a term of imprisonment which may extend to three months and shall also be liable to pay fine which may extend to ten thousand rupees.”;
(iv) in sub-section (6), for the words “two hundred”, the words “two thousand or imprisonment upto three months or with both” shall be substituted;
(v) after sub-section (6), the following sub-section shall be added, namely:-
“(7) Whoever, before during or after any election under this Act:-
(a) fraudulently defaces or fraudulently destroys any nomination paper; or
(b) fraudulently defaces, destroys or removes any list, notice or other document affixed by or under the authority or a returning officer; or
(c) fraudulently defaces or fraudulently destroys any ballot paper or the official mark on any ballot paper or any declaration of identity; or
(d) without due authority supplies any ballot paper to any person or receives any ballot paper from any person or is in possession of any ballot paper; or
(e) fraudulently puts into any ballot box anything other than the ballot paper which he is authorized by law to put in; or
(f) without due authority destroys, takes, opens or otherwise interferes, with any ballot box or ballot papers then in use for the purposes of the election; or
(g) fraudulently or without due authority, as the case may be attempts to do any of the foregoing acts or wilfully aids or abets the doing of any such acts; or
(h) offers any gift or promises to offer any gratification to any person with the object, directly or indirectly, of inducing,-
(1) a person to stand or not to stand as, or to withdraw or not to withdraw from, being a candidate at an election; or
(ii) a member to vote or refrain from voting at an election, or as a reward to a person for having so stood or not stood or for having withdrawn or not having withdrawn his candidature; or
(iii) a member for having voted or refrained from voting, shall be punishable with imprisonment for a term which may extend to three months.”.
In the principal Act, for section 74, the following shall be substituted, Substitation of
17.
namely:-
section 74 of Punjab Act 25 of
“74. (1) Every co-operative society, shall keep a copy of this 1961.
Copy of Act, Act, the rules and its bye-laws balance sheet, inspection rules and bye- note and audit report, open to inspection free of o^en eoc. to be charge at all reasonable time at the registered address inspection. of the society.
(2) Every co-operative society, shall provide access to each member of the co-operative society to the books, minutes of the meetings of the committee and general body, list of members and information and accounts of the co-operative society kept in regular transaction of its business with such a member.”.
18. In the principal Act, in section 82, after clause (b), the following clause shall be inserted, namely:-
“(bb) any matter relating to service conditions of employees of cooperative societies;”.
Amendment of section 82 of Punjab Act 25 of 1961.
Amendment of section 85 of Punjab Act 25 of 1961.
19. In the principal Act, in section 85, in sub-section (2), after clause (xiii), the following clause shall be inserted, namely:-
“(xiii-a) the minimum qualifications and experience of auditors and auditing firms under sub-section (1-A) of section 48 for auditing accounts of the co-operative societies;”.
Secretary to Government of Punjab, Department of Legal and legislative Affairs.
552/07-2014/Pb. Govt. Press, S.A.S. Nagar
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Reed. No. NW/CH-22 |
Regd. No. CHD/0092/2012-2014 |
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Price : Rs 2.70 |
-Punjab Co-opera_files/B-(Notification No.15.-Leg._2014)-Punjab Co-opera-1.jpg)
J*>unjab (3oocrnmcnt (E5azettc
CHANDIGARH, MONDAY, JULY 28, 2014 (SRAVANA 6, 1936 SAKA)
LEGISLATIVE SUPPLEMENT
Contents Pages
Part - I Acts
The Punjab Co-operative Societies (Amendment) Act, 2013
(Punjab Act No. 14 of 2014) .. 47-59
Part - II Ordinances
Nil
Part - III Delegated Legislation
Nil
Part - IV Correction Slips, Republications and Replacements
Nil
( xciii )
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