Section 27 in The Punjab Co-operative Societies Act, 1961
27. [ Removal or suspension of committee or member thereof. [Substituted by Punjab Act No. 14 of 2014.]
(1)If, in the opinion of the Registrar, a committee or any 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Act and rules and bye-laws made there under:Provided that the committee of any such co-operative society shall not be superseded or kept under suspension where there is no Government shareholding or loan or financial assistance or any guarantee given by the Government:Provided further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 1. - 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.] [Substituted by Act 19 of 1993.][Explanation 2. - The delay caused in constitution of an elected committee due to judicial proceedings in civil courts in this regard, shall be excluded at the time of computing the period for which an Administrator is appointed as provided in clause (a).] [Added by Punjab Act No. 27 of 2017.](2)Where the Registrar, while proceeding to take action under sub-section (1) is of opinion that suspension of the committee or member during the period of proceedings is necessary in the interest of the co-operative society, he may suspend the committee or member, as the case may be, and where the committee is suspended, make such arrangements as he thinks proper for the management of the affairs of the society till the proceedings are completed:Provided that if the committee or member so suspended is to be removed, it or he shall be reinstated and the period of suspension shall count towards its or his term.(3)The Administrator so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have powers to perform all or any of the functions of the committee or of any officer of the society and take all such actions as may be required in the interest of the society.(4)The Registrar may fix the remuneration payable to the person appointed as Administrator and the amount of such remuneration and other costs, if any, incurred in the management of the society shall be payable from its funds.(5)The Administrator shall, before the expiry of his term of office arrange for the constitution of a new committee in accordance with the provisions of this Act and rules and bye-laws framed thereunder.(6)Before taking any action under sub-section (1) in respect of a co-operative society, the Registrar shall consult the financing bank to which the society is indebted.(7)A member who is removed under sub-section (1) may be disqualified for being elected to nay committee for such period not exceeding three years as the Registrar may fix.]
