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Kerala Cooperative Societies Act, 1969

(Act 21 of 1969)

Last Updated 18th July, 2020 [ker038]

Chapter I

Preliminary

(a) "apex society" means a society having the whole of the State as its area of operation and having as its members only other societies with similar objects and declared as such by the Registrar;

[(aa) "assisted society" means a co-operative society which has received the Government assistance in the form of share capital, loan, grant or any other financial assistance or any guarantee by the Government or from Boards constituted by the Government for repayment of loan, interest or deposits;

(ab) "auditing of accounts of co-operative societies" means d close examination of financial transactions, overdue debts, if any, maintenance of books of accounts, documents and other records of a business, preparation of audit report and includes an inquiry into the affairs of the society and subsidiary institutions in order to ascertain the correctness of accounts and the extent to which its activities were useful in promoting the economic welfare of the members in accordance with co-operative principles;]

(b) "bye-laws" means the registered bye-laws of a co-operative society for the time being in force;

(c) "circle cooperative union" means a circle co-operative union constituted under section 88;

[(d) "central society" means a society having jurisdiction over one more Revenue Districts but not the whole of the State as its area of op eration, and having as its members only other societies and declared as such by the Registrar or the Government;]

[(da) "chief executive" means any employee of a co-operative society by whatever designation called and includes an officer of the State Government or an employee of any other institution or co-operative society, who discharges the functions of a chief executive under the Act, the Rules or the Bye-laws;]

(e) "committee" means the governing body of a co-operative society by whatever name called, to which the management of the affairs of the society is entrusted;

[(ea) " Co-operative Arbitration Court" means a court constituted under section 70A;

[(ecc) "Cooperative Ombudsman" means the person or persons appointed under sub-section (2) of section 69A;]

[(eccc) "co-operative principles" means the co-operative principles listed in Schedule II appended to this Act;]

(ed) "Co-operative Service Examination Board" means the Co-operative Service Examination Board constituted under section 80B;]

(f) "co-operative society" or "society" means a co-operative society registered or deemed to be registered under this Act;

(g) "co-operative society with limited liability" means a society in which the liability of its members for the debts of the society in the event of its being wound up is limited by its bye-laws-

(i) to the amount, if any, unpaid on the shares respectively held by them; or

(ii) to such amount as they may, respectively undertake to contribute to the assets of the society;

(h) "co-operative 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 all its obligations and to contribute to any deficit in the assets of the society:

[(ha) Deposit Guarantee Scheme" means the Deposit Guarantee Scheme framed under section 57 B;]

[(hb) "Director of Co-operative Audit" means the Director of Co-operative Audit appointed under sub-section (1) of section 63 and any officer to whom all or any of the powers of the Director of Co-operative Audit may be delegated by the Government by general or special order under sub-section (3) of section 63;]

(i) "dispute" means any matter touching the business, constitution, establishments or management of a society capable of being the subject of litigation and includes a claim in respect of any sum payable to or by a society whether such claim be admitted or not;

[(ia) "District Co-operative Bank" means a central society having jurisdiction over one revenue district and having as its members Primary Agricultural Credit Societies, Urban Co-operative Banks and the principal object of which is to raise funds to be lent to its members, including nominal or associate members, which existed under this Act, immediately before the commencement of the Kerala Co-operative Societies (Amendment) Act, 2019 and which has ceased to exist after the commencement of the said Amendment Act.]

(ib) "Federal Co-operative Society" means a society having more than one district as its and operation and having [the Government] individuals and other co-operative societies as its members;]

(j) "financing bank" means a co-operative society having as its members only other co-operative societies and the main object of which is to raise money and lend the same to its members;

(k) "general body meeting" means a meeting of the members who are entitled to vote in the affairs of the society;

[(ka) "Kerala State Co-operative Bank" means an apex society having Primary Agricultural Credit Societies and Urban Co-operative Banks as its members, including nominal or associate members of the District Co-operative Banks who shall continue as nominal or associate members of the Kerala State Co-operative Bank;]

(l) "member" means a person joining in the application for the registration of a Co-operative society or a person admitted to membership after such registration in accordance with this Act, the rules and the bye-laws, and includes a nominal or associate member;

[(la) "miscellaneous societies" means such societies, as may be prescribed, and which accept deposits from their members only and no deposits shall be accepted from nominal or associate members, and shall undertake business activities for the welfare of its members as per the bye-laws and shall issue loans only to members:

(m) "nominal or associate member" means a member who possesses only such privileges and rights of a member and who is subject only to such liabilities of a member as may be specified in the bye-laws;

(n) "officer" means the president, vice-president, chairman, vice chairman, secretary, manager, member of committee or treasurer and includes a liquidator, administrator and any other person empowered under the rules or the bye-laws to give directions in regard to the business of a co-operative society;

(o) "prescribed" means prescribed by rules made under this Act;

[(oa) "prescribed period" means the period of limitation specified in Schedule III appended to this Act;]

[(oaa)] ["Primary Agricultural Credit Society" means a Service Co-operative Society, a Service Co-operative Bank, a Farmers Service Co-operative Bank and a Rural Bank, the principal object of which is to undertake agricultural credit activities and to provide loans and advances for agricultural purposes, the rate of interest on such loans and advances shall be the rate fixed by the Registrar and having its area of operation confined to a Village, Panchayath or a Municipality:

(ob) "primary credit society" means a society other than an apex or central society which has as its principal object the raising of funds to be lent to its members;

[(oc) "Primary Co-operative Agricultural and Rural Development Bank" means a society having its area of operation confined to a taluk and the principal object of which is to provide for long term credit for agricultural and rural development activities:

[(od) "Primary Co-operative Society" means a society having jurisdiction over a revenue district as a whole or over any specified area within such revenue district and having individual or individuals and other Co-operative Societies as its members;]

[(oe) "Primary Tourism Co-operative Society" means a society having its area of operation confined to a taluk and the principal object of which is to promote, organise and assist tourism activities:

(p) "Registrar" means the Registrar of Co-operative Societies appointed under subsection (1) of section 3 and includes any person on whom all or any of the powers of the Registrar under this Act are conferred;

(q) "rules" means the rules made under this Act;

[(qa) "Scheduled Castes" means the Scheduled Castes in the State of Kerala as specified in the Constitution (Scheduled Castes) Order, 1950;

(qb) "Scheduled Tribes" means the Scheduled Tribes in the State of Kerala as specified in the Constitution (Scheduled Tribes) Order, 1950;]

(r) "State" means the State of Kerala;

[(ra) "State Co-operative Agricultural and Rural Development Bank" means an apex society having only Primary Co-operative Agricultural and Rural Development Banks as its members and functioning in accordance with the provisions contained in the Kerala State Co-operative Agricultural and Rural Development Banks Act, 1984 (20 of 1984);

[***]

(rc) "State Co-operative Election Commission" means the State Co-operative Election commission constituted under section 28B;]

(s) State Co-operative Union" means the State Co-operative Union established under section 89;

[(sa) "Transferee Bank" means the Kerala State Co-operative Bank.

(sb) "Transferor Bank" means the District Co-operative Bank as defined under clause (ia) of this section.]

(t) "Tribunal" means the Tribunal constituted under section 81;

[(ta) "Urban Co-operative Bank" means a society registered under this Act having its area of operation in the Urban areas and which undertakes banking business with the licence obtained from Reserve Bank of India;]

[(taa) "Urban Co-operative Society" means a co-operative society the principal object of which is to undertake non-agricultural credit activities and to raise funds to be lent to its members with its area of operation confined to a municipality or a corporation :

[(tb) "Vigilance Officer" means the Vigilance Officer appointed under section 68A;]

(u) "year" means the period commencing on the [first day of April of any year and ending with 31st of March] of the succeeding year or in the case of any registered society or class of registered societies, the accounts of which are made upto any other date with the previous sanction of the Registrar, the year ending with such date.

Chapter II

Registration of Co-operative Societies

(a) the application shall be accompanied by three copies of the proposed bye-laws of the society;

(b) where all the applicants are individuals, the number of applicants shall not be less than twenty-five, each of such person being a member of a different family.

(c) the application shall be signed by every one of the applicants who is an individual [as specified under clause (a) of sub-section (1) of section 16] and by a person duly authorized on behalf of the Government or any society or other body of person which is an applicant.

(a) that the application complies with the provisions of this Act and the rules;

(b) that the objects of the proposed society are in accordance with section 4;

(c) that the area of operation of the proposed society and the area of operation of another society of similar type do not overlap;

(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and

(e) that the proposed society complies with the requirements of sound business, he may register the society and its bye-laws within a period of ninety days of receipt of application.

(c) shall have its name and address of its registered office, mentioned in legible characters in all its business letters in all its bill heads and letter paper, and in all its notices and other official publications, and also have its name so mentioned in all bills of exchange, hundies, promissory notes, endorsements, cheques and orders for money or goods purporting to be signed by or on behalf of the co-operative society, and in all bills of parcels, invoices, receipts and letters of credit of the co-operative society.]

(a) the assent thereto of all members and creditors has been given or deemed to have been given; or

(b) all claims of members and creditors who exercise the option referred to in subsection (2) within the period specified therein have been me in full.

(a) the State Co-operative Union if the bye-laws to be amended are that of an apex society or a central society; or

(b) the circle co-operative union if the bye-laws that are to be amended are that of any other society; and

(c) the financing bank if the society is indebted to the financing bank.

(a) transfer its assets and liabilities in whole or in part to any other society;

(c) divide itself into two or more societies

(a) the assent thereto of all the members and creditors has been given or deemed to have been given; or

(b) all claims of members and creditors who exercise the option referred to in subsection (4) within the period specified therein, have been met in full.

(a) An institution shall be deemed to be a subsidiary institution where the co-operative society.

(i) controls the management or board of directors or members of governing body of such institutions; or

(ii) holds more than half in nominal value of equity shares of such institutions.

(b) a subsidiary institution shall not include a partnership firm.

Chapter III

Members of Co-operative Societies and their rights and liabilities

(a) an individual-

(i) who has attained the age of eighteen years: Provided that this sub-clause shall not apply in the case of a society formed exclusively for the benefit of the students of any school or college;

(ii) who is not of unsound mind;

(iii) who is a resident within, or is in occupation of land in the area of operation of the society;

(b) any other society;

[(ba) a local Self government;]

(c) the Government; and

(d) any body of persons, whether incorporated or not and whether or not established by or under any law, if such body is approved by the Government in this behalf by general or special order:

(a) an up-to-date copy of the Kerala Co-operative Societies Act, 1969;

(b) an up-to-date copy of the Kerala Co-operative Societies Rules, 1969;

(c) an up-to-date copy of the bye-laws of the society;

(d) a register of members;

(e) the latest audited balance sheet of the society; and

(f) the accounts of the society in so far as they relate to his or her transaction.]

(a) a member admitted within sixty days immediately prior to the date of election shall not have a right to vote;

(b) a nominal or associate member shall not have the right to vote;

(c) Where the Government is a member of a society, each person nominated by the Government the committee of the society shall have one vote each including the right to vote for election of office bearers of the society;

(d) an ex-officio member of the committee of a society shall have one vote but shall not have right to vote for election of office bearers of the society;

(e) in the case of an equality of votes, the Chairman shall have and exercise a second or casting vote:

(a) the member has held such share or interest for not less than three years; and

(b) the transfer is approved by the committee of the society

(a) the member has held such share for not less than three years; and

(b) such withdrawal is in accordance with the bye-laws of the society.

(a) in the case of a past member, on the date on which he ceased to be a member;

(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.

Chapter IV

Management of Co-operative Societies

(a) if he is member of the committee of [more than one society of the same type; or]

(b) if he is member of the committees of [more than two societies of different types ;]

(ii) "professional qualifications" means membership in the Institute of Chartered Accountants of India or Masters Degree in Business Administration or Membership in the Institute of Cost and Works Accountants of India or Masters Degree in Commerce with experience in banking or experience in the inspection or audit of banks, including Co-operative Bank.]

(i) the State Co-operative flection Commission shall in consultation with the Registrar have power to fix, alter or revise the maximum and minimum limit of election expenses to be spent by different classes of societies by special or general order;

(ii) the flection Commission may fix fee or cost for election process, in accordance with rules made in this behalf;

(iii) the procedure for payment of election fee or cost shall be such, as may be prescribed.

(a) approval of the budget with reference to the programme of the activities of the society prepared by the committee for the ensuing year;

(b) election, if any, in the prescribed manner of the members of the committee other than nominated members;

(c) consideration of the audit report [and the report and follow up action of the committee thereon] and the annual report;

[(ca) review of operational deficit/loss, if any. and programme to reduce such deficit; or loss.

(cf) any other information required by the Registrar in pursuance of the provisions of the Act;]

(d) disposal of the net profit; and

(e) consideration of any other matter which may be brought forward in accordance with the bye-laws.

(d) have guaranteed the repayment of principal and payment of interest on loans and advances to an apex or a central society, [the government or any other authority shall have the right to nominate not more than two persons to the committee of an Assisted Apex or Central Society.]

[(e) Every member of the committee superseded under this section shall from the date of order of such supersession stand disqualified to contest in the election to or to be nominated to the committee of any Society or to be appointed as an administrator in any society for two consecutive terms;]

(a) in the case of a Co-operative society only after consulting the circle co-operative union concerned; and

(b) in the case of an Apex Society or a Central Society only after consulting the State Co-operative Union.

(a) that a new committee cannot be constituted before the expiry of the term of office of the existing committee; or

[(aa) there is stalemate in the constitution or functions of the committee.]

[(b) that a new committee is prevented from entering upon office or a new committee fails to enter upon office, on the date on which the term of office of the existing committee expires, the Registrar may, either suo motu or on the application of any member of the society, after intimating the Circle Co-operative Union, appoint one administrator or an administrative committee consisting of not more than three individuals, one among them as convener, who need not be member of the society to manage the affairs of the society, for a period not exceeding six months as may be specified in the order, which period may, at the discretion of the Registrar and for reasons to be recorded in writing, be extended, from time to time, so, however, that the aggregate period shall not, in any case, exceed one year or till a new committee enters upon office, whichever is earlier.]

Chapter V

Privileges of Co-operative Societies

(a) upon the crops or other agricultural produce of such member for the raising of which the loan was taken from the society by such member; and

(b) upon any cattle, fodder for cattle, agricultural or industrial implements or machinery, or raw materials for manufacture supplied, or purchased in whole or in part out of any loan given, by the society, or on any article manufactured from raw materials so supplied or purchased

(i) a member who makes an application for a loan to a society of which the majority of the members are agriculturists shall, if he owns any land or holds any land as a tenant entitled to fixity of tenure, make a declaration in the prescribed form, which shall state that the applicant thereby creates a charge on the land owned by him or on his interest in the land held by him as tenant and specified therein, for the payment of the amount of the loan which the society may make to the member on the application and future loans, if any, that may be made to him, from time to time, by the society together with interest on such loan or loans;

(ii) a declaration made under clause (i) may be varied or cancelled at any time by the member, with the previous written permission of the society in favour of which such charge has been created;

(iii) no member shall alienate the whole or any part of the land or his interest in the land specified in the declaration made under clause (i) or varied under clause (ii) until the whole amount borrowed by the member together with interest thereon is paid to the society in full:

(iv) any alienation made in contravention of clause (iii) shall be null and void;

(v) subject to the claims of the Government in respect of basic tax or any money recoverable as land revenue and to the claims of the Government or the Land Mortgage Bank in respect of any money payable under a mortgage in favour of the Government or the Land Mortgage Bank and to the prior claims of any person in whose favour alienation of the land or interest in land specified in the declaration made under clause (i) or varied under clause (ii) has been effected and duly registered, before the date of the grant of the loan by the society, there shall be a first charge in favour of the society on such land or interest for and to the extent of the dues owing by him on account of the loan;

(vi) a declaration made under clause (i) or any variation or cancellation thereof under clause (ii) or any release under the third proviso to clause (iii) shall be sent by the society, by registered post, to the sub registrar having jurisdiction over the area in which the land is situate, and the sub registrar shall register such declaration or variation or cancellation or release and issue a copy thereof to the society.

(vii) Any declaration made under clause (i) or any variation or cancellation thereof under clause (ii) or any release under the third proviso to clause (iii) , which has not been registered under clause (vi) shall be null and void.

(a) "basic tax" means the tax imposed under the provisions of the Kerala Land Tax Act, 1961 (13 of 1961) ;

(b) "Land Mortgage Bank" means the Kerala Co-operative Central Land Mortgage Bank, Limited, or a primary mortgage bank as defined in the Kerala Co-operative Land Mortgage Banks Act, 1960 (1 of 1960)

(a) the stamp duty chargeable under the Kerala Stamp Act, 1959 (17 of 1959) , in respect of any instrument executed by or on behalf of a society or by an officer or member thereof and relating to the business of such society, or any class of such instruments or in respect of any award or order made under the Act, in cases where, but for such remission the society, officer or member, as the case may be, would be liable to pay such stamp duty;

(b) any fee payable under any law for the time being in force relating to the registration of documents or court fees.

(a) agricultural income;

(b) sale or purchase of goods; and

(c) professions, trades, callings and employments.

(a) 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

(b) any debentures issued by any such 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 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

(c) any endorsement upon or transfer of any debenture issued by any such society.

Chapter VI

State Aid to Co-operative Societies

(a) directly purchasing shares in order societies with limited liability; or

(b) providing moneys to a central society to enable that society to purchase shares in order societies with limited liability (hereinafter in this Chapter referred to as primary societies) ; or

(c) making payments to the Government in accordance with the provisions of this Chapter, and for no other purpose.

(a) purchasing shares in primary societies; or

(b) making payments to the apex society in accordance with the provisions of this Chapter and for no other purpose.

(a) the Government; or

(b) the apex society or a central society from the Principal State Partnership Fund or the Subsidiary State Partnership Fund, as the case may be, the liability in respect of such shares shall, in the event of the society being wound up, be limited to the amount paid in respect of such shares.

(a) the 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 43;

(b) an apex society may, with the previous approval of the Government, enter into an agreement with a central society, setting out the terms and conditions on which it shall provide moneys to that society from the Principal State Partnership Fund for the purpose specified in clause (b) of sub-section (2) of section 44.

(a) give loans or make advances to societies;

(b) guarantee the repayment of principal and payment of interest on debentures issued by a society;

(c) guarantee the repayment of share capital of a society and dividends thereon at such rates as may be specified by the Government.

(d) guarantee the repayment of principal and payment of interest on loans and advances to a society;

(e) guarantee the repayment of deposits received by the society and payment of interest on such deposits; and

(f) give financial assistance in any other form, including subsidies, to any society.

[(g) set off any amount due to Government out of the financial assistances given under this section, in which case the gross amount of assistance before set off shall be treated as the original amount of assistance:

Chapter VII

Properties and Funds of Co-operative Societies

(a) transfer an amount not being less than fifteen per cent of the net profits to the reserve fund; and

(b) credit such portion of the net profits, not exceeding five per cent, as may be prescribed, to the Co-operative Education Fund referred to in clause (xix) of sub-section (2) of section 109.

[(c) ten per cent of the net profit to the Co-operative Member Relief Fund as may be prescribed.]

(a) payment of dividends to members on their paid-up share capital at such rate not exceeding [twenty five] per cent as may be prescribed;

(b) payment of bonus to members on the amount or volume of business done by them with the society, to the extent and the manner specified in the bye-laws;

[(c) seven percent of the net profit to Agricultural Credit Stabilization Fund;

(cc), five percent of the net profit to the professional education fund maintained by the Registrar;]

(d) donations of amounts not exceeding ten per cent of the net profits for any charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890 (Central Act 6 of 1890) ; and

[(e) balance of net profit may be utilised for any or all of the purposes specified in the bye-laws of the societies except for payment of bonus to employees.]

(a) in Government Savings Bank; or

(b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882 (Central Act 2 of 1882) ; or

(c) in the shares or securities of any other society approved for the purpose by the Registrar by general or special order; or

(d) in any bank approved for the purpose by the Registrar; or

(e) in any other prescribed manner.

(a) the contribution to be paid by the society under sub-section (2) ; and

(b) any other amount which, under the provisions of the scheme shall be credited to the Fund.

(i) for the purpose of safeguarding the interests of the societies against any loss or damage to their assets and properties, despite reasonable precautions to prevent such loss or damage;

(ii) for utilizing for the developmental activities of the societies; and

(iii) for any other purpose, as may be specified in the scheme.

(i) the time and manner in which contribution shall be made to the Fund by the societies;

(ii) the rate of contribution;

(iii) the administration of the Fund;

(iv) the purposes for which the Fund may be utilized for developmental activities of the societies;

(v) the conditions under which the Fund may be expended for payment of reliefs to the societies;

(vi) the manner in which the accounts of the Fund shall be kept; and

(vii) any other matter which is to be provided for in the scheme or which may be necessary or proper for the purpose of implementing the scheme.

(a) shall not be used in the business of the society;

(b) shall not form part of the assets of the society;

(c) shall not be liable to attachment or be subject to any other process of any court or other authority;

(d) shall be deposited in the financing bank of the area.]

[CHAPTER VIII]

Part A

Audit

(a) he shall, at all reasonable times, have access to all the books, accounts, documents, papers and all other relevant records, securities, cash and other properties belonging to, or in the custody or control of the society;

(b) he may summon any person in possession of, or responsible for the custody, of any such books, accounts, documents, papers, other records, securities, cash or other properties, to produce the same at any place at the headquarters of the society or any branch thereof or, where there is no working office for a society, at the office of the Director of Co-operative Audit or at the office of any of his subordinate officers, as maybe specified by him; and

(c) such other powers as may be prescribed.

(f) any other information required by the Registrar in pursuance of any of the provisions of this Act or the rules.]

(a) no order of apportionment of the cost shall be made under this section unless the society or the person sought to be made liable to pay the costs thereunder has had a reasonable opportunity of being heard;

(b) the Registrar shall state, in writing the grounds on which the costs are apportioned.

[Chapter IX]

Settlement of Disputes

(a) among members, past members and persons claiming through members, past members and deceased members; or

(b) between a member, past member or person claiming through a member, a past member or deceased member and the society, its committee or any officer, agent or employee of the society; or

(c) between the society or its committee and any past committee any officer, agent or employee or any past officer, past agent or past employee or the nominee, heirs or legal representatives of any deceased officer, deceased agent or deceased employee of the society; or

(d) between the society and any other society; or

(e) between a society and the members of a society affiliated to it ; or

(f) between the society and a person, other than a member of the society, who has been granted a loan by the society or with whom the society has or had business transactions or any person claiming through such a person; or

(g) between the society and a surety of a member, past member, deceased member or employee or a person, other than a member, who has been granted a loan by the society, whether such a surety is or is not a member of the society; or

(h) between the society and a creditor of the society, such dispute shall be referred to the Co-operative Arbitration Court constituted under section 70A in the case of non-monetary disputes and to the Registrar, in the case of monetary disputes; and the Arbitration Court or the Registrar, as the case may be, shall decide such dispute and no other court or other authority shall have jurisdiction to entertain any suit or other proceedings in respect of such dispute.

(a) a claim by the society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not;

(b) a claim by a surety against the principal debtor, where the society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor, as a result of the default of the principal debtor, whether such debt or demand is admitted or not;

(c) any dispute arising in connection with the election of the Board of management or any officer of the society;

(d) any dispute arising in connection with employment of officers and servants of the different classes of societies specified in sub-section (1) of section 80, including their promotion and inter se seniority.

(i) the summoning and enforcing the attendance of any defendant or witness and examining the witness on oath;

(ii) the discovery and production of any document or other material object producible as evidence;

(iii) the reception of evidence on affidavits;

(iv) issuing of any commission for the examination of any witness; and

(v) any other matter which may be prescribed.

(a) elect to decide the dispute himself; or

(b) transfer it for disposal to any person who has been invested by the Government with powers in that behalf; or

(c) refer it for disposal to an arbitrator appointed by the Registrar:

Chapter X

Winding Up and Dissolution of Co-Operative Societies

(a) where it is a condition of the registration of the society that the society shall consist of at least twenty-five members and the number of members has been reduced to less than twenty-five; or

(b) where the society has not commenced working within six months of its registration, unless extension of time is granted by the Registrar, or has ceased to work; or

(c) where the number of actual workers falls below the prescribed limit in the case of a society formed exclusively for the benefit of persons engaged in a particular industry or occupation.

(a) to institute and defend suits and other legal proceedings on behalf of the society by the name of his office;

(b) to determine from time to time the contribution (including debts due) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the society;

(c) to investigate all claims against the society and, subject to the provisions of this Act, to decide questions of priority arising between claimants;

(d) to pay claims against the society including interest up to the date of winding up according to their respective priorities, if any, in full or rateably, as the assets of the society may permit the surplus, if any, remaining after payment of the claims being applied in payment of interest from the date of such order of winding up at a rate fixed by him but not exceeding the contract rate in any case;

(e) to determine by what persons and in what proportions the costs of the liquidation are to be borne;

(f) to determine whether any person is a member, past member or nominee of a deceased member;

(g) to give such directions in regard to the collection and distribution of the assets of the society as may appear to him to be necessary for winding up the affairs of the society.

(h) to carry on the business of the society so far as may be necessary for the beneficial winding up of the same;

(i) to make any compromise or arrangement with creditor, or persons claiming to be creditors or having or alleging to have any claim, present or future, whereby the society may be rendered liable; and

(j) to compromise all calls or liabilities to calls and debt and liabilities capable of resulting in debts and all claims present or future, certain or contingent subsisting or supposed to subsist, between the society and a contributory or alleged contributory or other debtor or person apprehending 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 upon and to take any security for the discharge of any such call, liability, debt or claim and give a complete discharge in respect thereof.

[Chapter XA]

Insured Co-Operative Banks

(i) an order for the winding up, or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction (including division or reorganization) 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 by the Registrar if so required by the Reserve Bank of India in the circumstances referred to in section 13D of the Deposit Insurance Corporation Act, 1961 (Central Act 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 detrimental to the interest of the depositors or for securing the proper management of the bank, an order shall be made for the supersession (removal) of the committee of management or other managing body (by whatever name called) of the bank and the appointment of an administrator therefor for such period or periods, not exceeding five years in the aggregate, as may from time to time be specified by the Reserve Bank of India, and the administrator so appointed shall, after the expiry of his term of office, continue in office until the day immediately preceding the date of the first meeting of the new committee;

(iv) no appeal, revision or review shall lie or be permissible against an order referred to in clause (i), (ii) or (iii) made with the previous sanction in writing or on the requisition of the Reserve Bank of India and such order or sanction shall not be liable to be called in question in any manner;

(v) the liquidator or the insured co-operative bank or 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.

(i) "co-operative bank" means a bank as has been defined in the Deposit Insurance Corporation Act, 1961;

(ii) "insured co-operative bank" means a society which is an insured bank under the provisions of the Deposit Insurance Corporation Act, 1961;

(iii) "transferee bank" in relation to an insured co-operative bank, means a co-operative bank-

(a) with which such insured co-operative bank is amalgamated; or

(b) to which the assets and liabilities of such insured co-operative bank are transferred; or

(c) into which such insured co-operative bank is divided or converted under the provisions of section 12 of section 14 of the Kerala Co-operative Societies Act, 1969 (21 of 1969).]

[Chapter XB]

Special Provisions Relating To Co-Operative Societies, Their Office Bearers And Employees

[Chapter XC]

Special Provisions Relating To The Amalgamation Through Transfer of Assets and Liabilities of The District Co-Operative Banks To The Kerala State Co-Operative Bank

(i) the audit of the financial accounts, as prescribed by the Reserve Bank of India, in the Kerala State Co-operative Bank shall be done by the Chartered Accountants from among the panel of Auditors/Audit Firms approved by the Director of Co-operative Audit;

(ii) the audit of the administrative matters and related accounts of the Kerala State Co-operative Bank shall be done by a panel of departmental auditors;

(iii) the above auditors shall exercise all powers mentioned under clauses (a), (b) and (c) of sub-section (2) of section 64.

Chapter XI

Execution of Awards, Decrees, Orders And Decisions

(a) on a certificate signed by the Registrar or any person authorised by him in this behalf, 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) where the order is for the recovery of money, be executed according to the law and under this rules for the time being in force for the recovery of arrears of public revenue due on land:

(i) to the Collector and shall be accompanied by a certificate signed by the Registrar or by any person authorized by him in this behalf;

(ii) within twelve years from the date fixed in the order, decision or award and if no such date is fixed, within twelve years from the date of the order, decision or award, as the case may be; or

(c) be executed by the Registrar or any other person subordinate to him empowered by the Registrar in this behalf, by the attachment and sale or sale without attachment of any property of the person or a society against whom the order, decision or award has been obtained or passed.

(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 the jurisdiction of the Registrar, the arbitrator or the liquidator, as the case may be,

Chapter XII

Establishment

(i) for the payment of financial assistance to the family of the deceased employees;

(ii) for the payment of medical assistance to the employees who have undergone treatment for diseases to be specified therein;

(iii) for refund of the contributions made by the employees on their - retirement or relief on other grounds;

(iv) for the grant of advances to the employees for meeting their medical expenses;

(v) for awarding cash prizes to the children of employees at such rates and subject to such conditions as may be specified therein; and

(vi) for any other purposes provided for in the Scheme or which necessary Scheme.

Chapter XIII

Appeals, Revision and Review

(a) a general body; and

(b) a managing committee

(a) [one member from each Revenue district in the State], elected, in such manner as may be prescribed, by the delegates of the Circle Co-operative Unions, of that district from among themselves;

[(b) one member elected, in such manner as may be prescribed, by the delegates of the apex societies in the State other than the Kerala State Co-operative Bank, from among themselves;]

[(c) two members elected by the Board of Directors of the Kerala State Co-operative Bank from among themselves;]

(d) one member elected, in such manner as may be prescribed by the members of the Circle Co-operative Unions elected under clause (c) of sub-section (1) of section 88, from among themselves;

(e) one member elected, in such manner as may be prescribed, by the members of the Circle Co-operative Union elected under clause (d) of sub-section (1) of section 88, from among themselves;

(f) one member elected, in such manner as may be prescribed, by the members of the Circle Co-operative Unions elected under clause (e) of sub-section (1) of section 88, from among themselves;

(g) two members nominated by the Government;

(h) the Secretary of the State Co-operative Union, ex-officio

(a) to organize, assist and generally develop co-operative societies;

(b) to carry on co-operative propaganda; and

(c) to spread education on co-operative principles and practices.

[(d) to participate in the developmental activities and decentralized planning of the local authorities;

(e) to organize training programmes for the employees of the societies and for the members of the committee and to ensure their participation in such programmes.]

Chapter XV

Offences and Penalties

(b) "Director" in relation to firm, means partner in the firm.]

CHAPTER XVI

Miscellaneous

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of any document;

(c) receiving evidence on affidavits; and

(d) issuing commissions for examination of witnesses.

(a) the date on which the name of any person was entered in such register or list as a member;

(b) the date on which any such person ceased to be a member.

(i) the applicant to whom the order refusing the registration of a society may be sent by Registrar;

(ii) the procedure and conditions for change in the form and extent of the liability of a society;

(iii) the matters in respect of which a society shall or may make bye-laws;

(iv) the procedure to be followed for amendment of bye-laws by a society;

(v) the qualifications or disqualifications of individuals who may be admitted as members of societies;

(vi) the payment to be made and the interests to be acquired before the exercise of the right of membership;

(vii) the appointment by a society of one of its members to represent and vote on its behalf at a meeting of another society of which it is a member;

(viii) the maximum number of shares or portion of the share capital of a society which may be held by an individual member;

(ix) the procedure for the nomination of a person to whom the share or interest of a member on his death may be transferred or the value thereof may be paid;

(x) the mode in which the value of a deceased member's share shall be ascertained;

(xi) the election of members of the committee by the general body of a society;

(xii) the requisitioning of a general body meeting of a society;

(xiii) the remuneration payable to a new committee or administrator administrators appointed by the Registrar under section 32 or section 33;

(xiv) the qualifications or disqualifications for membership of the committee of a society;

(xv) the qualifications of employees of societies;

(xvi) the prohibition against officers of a society being interested in contracts with the society;

(xvii) the matters connected with the direct and indirect partnership of the Government in societies;

(xviii) the rate at which dividend maybe paid by societies;

(xix) the constitution of the Co-operative Education Fund, the payment to be made to the fund by a society out of its net profit and the mode of its investment;

(xx) the mode of investment of funds of a society;

(xxi) the objects of the reserve fund of a society and the mode of its investment;

(xxii) the mode of disposal of the reserve fund of a society on its winding up;

(xxiii) the extent to which and the conditions subject to which a society may receive deposits and loans;

(xxiv) the restrictions on transactions by a society with non members;

(xxv) the restriction on grant of loans by a society against its shares;

(xxvi) the form and standards of fluid resources to be maintained by societies accepting deposits and granting cash credits;

(xxvii) the procedure to be followed in proceedings before the Registrar, arbitrator or other person deciding disputes;

(xxviii) the conditions subject to which the assets of a society shall vest in a liquidator and the procedure to be adopted in the winding up a society;

(xxix) the procedure for the recovery of amounts due or payable to a society;

(xxx) the mode of making attachment before judgment;

(xxxi) the manner of registering the address of a society;

(xxxii) the account books and registers to be kept by a society and power of the Registrar to call for any returns or to direct the accounts and books to be written up;

(xxxiii) the manner of certification of entries in the books of a society and of copies of documents kept by it in the course of its business;

(xxxiv) the statements and returns to be furnished by a society to the Registrar;

(xxxv) the restrictions on persons appearing as legal practitioners;

(xxxvi) the inspection of documents and the levy of fees for granting certified copies thereof;

(xxxvii) the procedure to be followed in, and the fees for, audit and arbitration under this Act; and

(xxxviii) any other matter required or allowed by this Act to be prescribed.

(i) all appointments, rules and orders made, notifications and notices issued, and suits and other proceedings instituted ,under any of the Acts hereby repealed shall, so far as may be, be deemed to have been respectively made, issued and instituted under this Act;

(ii) any society existing in the State on the date of the commencement of this Act which has been registered or deemed to be registered under any of the aforesaid repealed Acts shall be deemed to be registered under this Act; and the bye-laws of such society shall, so far as they are not inconsistent with the provisions of this Act, continue in force until altered or rescinded.

[The Schedule I]

[See section 80 (3A) ]

1. The Kerala State Co-operative Bank Ltd. , Thiruvananthapuram.

2. The Kerala State Co-operative Agricultural and Rural Development Bank Ltd. , Thiruvananthapuram.

3. The Kerala State Federation of Scheduled Castes/Scheduled Tribes Development Co-operatives, Thiruvananthapuram

4. The Kerala State Co-operative Housing Federation Ltd. , No. 4330, Ernakulam.

5. The Kerala Co-operative Milk Marketing Federation Ltd. , Thiruvananthapuram.

6. The Kerala State Co-operative Marketing Federation Ltd. , Ernakulam.

7. The Kerala State Co-operative Rubber Marketing Federation Ltd. , Ernakulam.

8. The Kerala Kera Karhska Sahakarana Federation Ltd. , No. 4370, (Kerafed) , Thiruvananthapuram.

9. The Kerala State Co-operative Federation for Fisheries Development Ltd. , (Matsyafed) , Thiruvananthapuram.

10. The Kerala State Co-operative Consumers Federation Ltd. , Ernakulam.

11. The Kerala State Cashew Workers Apex Industrial Co-operative Society Ltd. , [ IND (ST) ] 12, Kollam.

12. The Kerala State Handloom Weaver's Co-operative Society Ltd. No. H232, Thiruvananthapuram.

13. The Kerala State Handicraft Apex Co-operative Society Ltd. , No. H 231, Ernakulam.

14. The Kerala State Co-operative Coil Marketing Federation Ltd. , Alapuzhza.

15. The Kerala State Co-operative Textile Federation Ltd. , IND MT (ST) I (TEXFED) , Trichur.

[***]

[Schedule II]

[See clause (eccc) of section 2]

1. Open and Voluntary membership

2. Democratic Member Control

3. Member Economic Participation

4. Autonomy and Independence

5. Education, Training and Information

6. Co-operation among Co-operatives

7. Concern for community

[Schedule III]

[See sub-section (4) of section 69]