State of Bihar - Act
The Bihar Co-operative Societies Rules, 1959
BIHAR
India
India
The Bihar Co-operative Societies Rules, 1959
Rule THE-BIHAR-CO-OPERATIVE-SOCIETIES-RULES-1959 of 1959
- Published on 10 June 1959
- Commenced on 10 June 1959
- [This is the version of this document from 10 June 1959.]
- [Note: The original publication document is not available and this content could not be verified.]
1. Title.
- These Rules may be called the Bihar Co-operative Societies Rules, 1959.2. Definitions.
- In these Rules unless there is anything repugnant in the subject of context. -3. Application for registration.
4. Procedure of registration.
- The Registrar shall examine every application for registration of a co-operative society and the bye-laws and other documents accompanying such application and shall satisfy himself-(a)that the application is in conformity with the Act and these Rules; and(b)that the bye-laws are in conformity with the Act and these Rules.6. Registered address.
- The Registrar shall maintain a register of registered society showing names and addresses of all such societies and all changes made therein.Admission to Membership7. Admission to Membership.
- [(1) (a) Every person desiring admission to membership of a registered society shall apply in Form V.(b)The Secretary of the Society or any person duly authorised by him in this behalf shall immediately grant a receipt for the application in the form at the foot of Form V.(c)In case the Secretary of the Society or any such person as aforesaid does not receive the application or grant a receipt for it, the applicant may submit his application to the Block Development Officer or the Assistant Registrar of Co-operative Societies or the District Cooperative Officer, who shall immediately grant him a receipt for the application in the prescribed form, and shall at once send the same to the society concerned.(d)The application shall be considered by a Managing Committee of the Society and the decision of the Committee thereon shall be communicated to the applicant within 15 days of receipt of the application and, where the application is rejected, with reasons therefor.(e)If no decision is communicated to the applicant within the period specified above, it shall be deemed that the application has been accepted and the applicant has been admitted to the membership of the Society.]8. Eligibility for membership.
- No person shall be eligible for admission as a member of a registered society, if he-9. Cessation of membership.
- Any member of a registered society shall cease to be a member thereof, if he subsequently incurs any of the disqualifications specified in Rule 8.10. Exception to admission as member.
- No person, who is a member of a registered society, shall be admitted as a member by another registered society of a similar type without the sanction of the Registrar and the Registrar may issue an order directing either society to remove such a person from its membership and the order of the Registrar shall be binding on them.11. Re-admission of expelled members.
- No members of registered society, who has been expelled under the provisions of its bye-laws, shall be eligible for readmission as a member of that society, or for admission as a member of any other registered society, for a period of two years from the date of such expulsion :Provided that the Registrar may after giving the registered society concerned an opportunity of being heard in special circumstances sanction the re-admission or admission within the said period of any such member as a member of the said society or of any other society, as the case may be.Limit of membership and shares12. Limit of membership and shares.
- Wherever the membership of a registered society is open both to individual and registered society the Registrar may, from time to time, prescribe the proportion of individual members to that of registered societies.12A. [ [Added '' by Notification No. 7-114/2006-7340, dated 26.11.2008.]
Notwithstanding anything contrary contained in this Rule or bye-laws of a co-operative society, there shall be no individual member in any Apex society or any Central society and further no Primary society shall be member of any Apex society:Provided that the individual members of any Apex society or central society shall continue to remain members of such society till such individualceases to be member of such society for whatever reason and such membership shall not be transferable:Provided further that a Primary society which is already a member of any Apex society shall continue to be a member of such Apex society till such society ceases to be member of such affiliating society.] [Substituted by Letter No. 14/Legal 51/89-2829 dated 2.9.89]13.
No member of a registered society, other than the State Government or any other registered society, shall hold more than one-fifth of the share capital, or shares exceeding ten thousand rupees, whichever is less in value, whether the liability of the society is limited or unlimited :Provided that the Registrar may relax this limit in case of any registered society or class of registered societies.Resignation and Expulsion14. Resignation and expulsion.
15. Bye-laws of societies.
16. Amendment of bye-laws.
- A registered society may by a resolution adopted by a majority of two thirds of its members present at a general meeting of which due notice has been given to the members, amend its bye-laws.17.
18. When the Registrar registers an amendment to the bye-laws of a registered society under sub-Section (2) of Section 26, he shall issue by registered post a copy thereof certified by him to the society concerned and the affiliating society, if any, in Form VIII.
19.
The registered name of a society shall not be changed except by an amendment of its bye-laws and the Registrar may require the changed name to be such as he may direct.General Meeting20. [ (1) General Meeting. [Substituted by Letter No. 14/Legal 51/89. 2829 dated 2.9.89.]
- The General Meeting of a registered society shall be of the following kinds :-(a)Preliminary General Meeting.(b)Annual General Meeting.(c)Extraordinary General Meeting.(d)Special General Meeting.21. Procedure at general meetings.
21A. [ [Substituted by G.S.R. 1 dated 1.2.1997.]
Notwithstanding anything contained in any Rule and Bye-laws of any Co-operative Society, the election of the members of the Managing Committee, [and office bearers] of the society shall be held in a Special General Meeting in accordance with Rule 21-B to 21-XProvided that the election of the members of the Managing Committee, [and office bearers] [Substituted 'office bearers and the delegates' by Notification No. 7-114/2006-7340, dated 26.11.2008.] of newly registered Co-operative Society shall be held in the Preliminary General Meeting according to Rule 20 (2) (a) to (e).21B.
Subject to the general superintendence, direction and control of the Registrar, Co-operative Societies, the power to conduct elections in a Cooperative Society or class or classes of Co-operative Societies shall vest in the following officers, who for this purpose, shall be called Conducting Officer:-21C.
21D.
21E.
The Managing Committee and every Officer of the Co-operative Society concerned shall be bound to render assistance to the Election Officer in the conduct of the election and shall make available to him such information and records of the society as may be required by the Election Officer for the purpose.21F.
The Election Officer shall appoint such number of Polling Officers as necessary and provide them with ballot boxes, ballot papers, a copy of the final voters' list and such other accessories which are necessary for the conduct of election.21G.
The Polling Officer appointed by the Election Officer shall be from amongst the Government servants who are not concerned with the management and administration of the societies.21H.
21I. [ [Substituted by G.S.R. 1 dated 1.2.1997.]
21J.
21K.
21L.
It shall be the duty of the Election Officer to satisfy himself about proper service of the notice and record his certificate on the Notice Book of the Society.21M. [ [Substituted by G.S.R. 1 dated 1.2.1997.]
The Conducting Officer shall fix the date for-21N.
21O.
If a candidate is elected simultaneously for more than one office of the Managing Committee and/or members of the Managing Committee, in that case, he shall have the option to retain one seat only and shall vacate the remaining seats of the concerned Society in writing to the Election Officer within 24 hours of the publication of the result of the election and such seat vacated by such candidate shall be filled in by the next candidate securing the next highest vote ;Provided that if the option is not exercised by such candidate within the time prescribed the Election Officer shall exercise his discretion and declare such seat to have been vacated by the said candidate.21P. [ [Substituted by G.S.R. 1 dated 1.2.1997.]
21Q. [ [Substituted by G.S.R. 1 dated 1.2.1997.]
If the number of valid nominations for any seat exceeds the number of the seats there shall be an election :]Provided that whether the elections are uncontested or contested, in both the cases the declaration of elections results shall be made in the Special General Meeting and the minutes of the meeting shall be recorded in which results of the elections shall be mentioned.21R.
The Election Officer may make such arrangements as he may deem necessary to ensure identification of the voters and to prevent impersonation.21S. [ [Substituted by G.S.R. 1 dated 1.2.1997.]
21T.
21U.
21V.
21W.
The State Government shall appoint an Additional Registrar of Cooperative Societies and such other officers as it may deem necessary to aid and assist the Registrar of Co-operative Societies in the discharge of his duties with regard to the election in co-operative societies.21X.
Any dispute relating to election of a co-operative society may be raised within [90 days] [Substituted '30 days' by Notification No. 7-114/2006-7340, dated 26.11.2008.] from the date of declaration of the result and such dispute shall be decided under Section 48 of the Bihar Co-operative Society Act, 1935.21Y. [ Election by the Election Authority. [Added by Notification No. 7-114/2006-7340, dated 26.11.2008.]
22.
23. [ [Substituted by G.S.R. No. 1 dated 1.2.1997.]
24.
A member of the Managing Committee shall cease to hold office, if-25. Disabilities of members.
- A member shall be disqualified for elections as a representative of the society for any purpose if he suffers from any of the disqualification for election as a member of the Managing Committee prescribed in Rule 23 and a member shall cease to be a representative of the society if, subsequent to his election as such, he becomes subject to any of the disqualifications prescribed in Rule 24.26.
The managing committee may constitute sub-committees from among its members and may appoint to the sub-committees, persons who are not members of the Managing Committee whether or not, they are members of the registered society and delegate to the sub-committees any of its powers or functions ;Provided that-27. Procedure at committee meeting.
- The business at a meeting of the Managing Committee or any sub-committee thereof shall be conducted in accordance with the procedure laid down in these Rules and the bye-laws of the society.28.
29.
The Managing Committee shall exercise and perform all such powers and duties as are conferred or imposed on it by these Rules or the bye-laws of the society or by a resolution passed at a general meeting.30. Procedure when society is superseded.
- The period required to be prescribed under sub-Section (3) of Section 41 shall be four months from the date of order of the dissolution of the Managing Committee.31. Honorarium to members.
- The registered society may, with the approval of the Registrar, pay honorarium or amount of pocket expenses to a member for service rendered to the society and any amount paid on this behalf shall be debited to the head "Establishment Charge."32.
Rules of business-Subject to the Rules of business which may from time to time, be prescribed by the State Government, the Managing Committee of a registered society may frame Rules for the guidance of its employees and in particular in regard to the manner of receipt and disbursement of money, and the custody of books, accounts, securities and the Rules of business framed by the society shall come into force on approval by the Registrar.33. Appointment of paid employees.
34. Deputation of Government officers
- When a Government officer is deputed to a registered society, either as a managing director, executive officer or manager, or in some other similar position, he shall be in general control of the administration of the society with power to punish, suspend, remove or dismiss any paid employee of the society, subject to the general direction of the managing committee.35. Imposition of fine.
- Where the bye-laws of a society empower the managing committee to impose a fine on a member, the fine shall not exceed twenty five rupees and its recovery shall be subject to confirmation by the general meeting:Provided that if, in the opinion of the Managing Committee the circumstances of a case justify the imposition of a fine exceeding twenty five rupees, the Managing Committee shall report the case to the general meeting and if the general meeting decides to impose a fine exceeding twenty five rupees, its decision shall be forwarded to the Registrar who may confirm, reduce, or remit the fine.Change of Liability, Amalgamation and Division of Societies36. Change of liability.
- Subject to the proviso to Section 5(1) of the Act a registered society may, by a resolution passed at a general meeting held specially for the purpose, and with the previous sanction of the Registrar change its liability from limited to unlimited or from unlimited to limited, or in the case of a society of limited liability change the extent of such liability :Provided that-37. Division of societies.
38. Voluntary amalgamation of societies.
39. Compulsory amalgamation of societies.
40. Borrowing.
- A registered society may raise funds for its business by obtaining loan or deposits from the State Government, the financing bank or members or non-members or by issuing bonds or debentures or otherwise in accordance with its bye-laws ;Provided that the acceptance of loans and deposits from member and nonmember shall be subject to such condition as to the maintenance of fluid resources and such restrictions as to the area and on such terms and conditions as to the amount and period of loans and deposits, dates of maturity and refund, rates of interest and notice of withdrawal, as may from time to time, be laid down by the Registrar.41. Loans to members.
42. Salary earners society.
43. Investment and Deposits.
- Any funds of a registered society not invested in accordance with Section 19 of the Act and not required for the business of the society shall be kept in deposit with the Central Co-operative Bank of the area or the Bihar State Co-operative Bank or in the local Postal Savings Account.44.
Fifty per cent of the reserved fund of a registered society shall be invested outside the business of the society.45.
A registered society may constitute a compulsory deposit fund, provident fund or welfare fund for the benefit of its members on such conditions and terms as may be provided in its bye-laws.46.
A registered society may allow rebate to its members on the value or amount of their transactions with the society, subject to such general or special instructions as may, from time to time, be issued by the Registrar.47. Reserve fund.
- At least ten per cent of the net profit of a registered cooperative insurance society and a registered co-operative farming society and at least five per cent of the profit of registered thrift and savings society shall each year be carried to a reserve fund.48.
Subject to the provision of Section 18(2) and the sanctions of the Registrar the reserve fund of a registered society shall be available for any of the purposes specified in the bye-laws of the society.49. Bad debt fund.
- Any registered society may after the amount required by sub-Section (1) of Section 8 or Rule 47, as the case may be, has been carried to the reserve fund, contribute any sum not exceeding ten per cent of its net profits to the bad and 'doubtful debts' fund:Provided that the Registrar may permit a registered society, by a general or special order, to contribute a larger percentage of the net profits to such fund.50. Refund of share money and transfer of shares.
50A. [ [Inserted by letter No. 14/legal 51-89-2829 dated 2.9.89.]
51.
52. Value of shares.
- The value of a member's share or interest in a society shall be equal to the sum actually paid by the member to acquire such share or interest:Provided that, if the liabilities of the society exceed its assets as shown in the latest audited balance-sheet, the value of a member's share shall not exceed the amount which would be receivable by him in respect of such share where the society to be liquidated on the last date of the preceding co-operative year.Deceased Member's Interest53. Disposal of unclaimed shares.
- If a member of a registered society dies and if the shares held by him are not disposed of in the manner prescribed in these Rules, the society shall transfer the value of such share to a savings bank account.54. Registers of members and shares.
55. Account books, registers and forms.
- A registered society shall maintain such other books and registers and use such forms and in such manner as may from time to time be prescribed by the Registrar.56. Returns and reports.
- A registered society shall submit to the Registrar and to an affiliating society, if any, such returns and reports, in such form and within such time, as the Registrar may from time to time prescribe.57. Audit.
- The audit of a registered society shall be conducted and the audit report drawn up in such manner and submitted to the Registrar and such other authority as may from time to time be prescribed by the Registrar.58. Statement of accounts and balance sheets.
59. Audit of wound up societies.
- A registered society ordered to be wound up under Section 42 shall be audited on the issue of the order for winding up and again before the cancellation of the registration of the society.60. Payment of the audit fee.
61. Certifying copies of entries.
62. Custody of account books and registers.
- Unless otherwise provided in its bye-laws or its Rules of business approved by the Registrar, the account books, registers and records of a registered society shall be kept in the custody of the Secretary or such other officer or paid staff of the society as the Managing Committee may authorise.63. Preservation of records.
- The books and records of registered society shall be preserved for and destroyed after such period and in such manner as may, from time to time, be prescribed by the Registrar.Liquidation64. Appointment or removal of a liquidator and payment of remuneration to him.
65. Procedure.
66. Appeal and Revision.
67. Sanction for appeal
- An application for special sanction to file an appeal under Section 44 (5) of the Act shall be made in writing to the Registrar within six weeks from the date of the communication of the order of the liquidator and the application shall be accompanied by a copy of the memorandum of appeal. After the Registrar disposes of the application, he shall send a copy of his order duly certified to be a true copy to the applicant and the liquidator.Disputes: Arbitration68. Disputes; arbitration.
69. Reference to District Judge.
70. Service of summons or notice.
71. Certificate proceedings.
- A requisition in respect of any sum payable by any person or by any registered society under Section 52, shall be sent to the Certificate Officer by the Registrar as contemplated in Section 5 of the Bihar and Orissa Public Demands Recovery Act, 1914 (Act IV of 1914):Provided that in the case, of an order made by the liquidator under the Act, the written requisition shall be sent by the Registrar.Creditor's Meetings72. Procedure at meeting.
73. Power to attend meetings.
- The Registrar or any person authorised by him may attend any meeting of a registered society called in accordance with these Rules or the bye-laws of the society and take part in the deliberation but shall not be entitled to vote.74. [ [Substituted by G.S.R. No. 1 dated 1.2.1997.]
The following categories of Government servants are authorised to exercise in their respective jurisdiction the power under clause (C) of Section-38 and Section 45-A:-Registrar, All Additional Registrars, Joint Registrars, Deputy Registrars, District Co-operative Officers, Assistant Registrars, Block Co-operative Extension Officers, Co-operative Extension Officers, Inspectors, Deputy Chief Auditors, District Audit Officers, Sub-Divisional Audit Officers, Senior Audit Officers and Managing Directors and General Managers of Central Co-operative Banks.]75. Contribution to Co-operative conferences.
- A registered society shall not contribute any money towards the expenses of any conference unless such conference is held under the auspicious of a registered society which is authorised by its bye-laws to undertake the holding of such a conference. The society holding the conference shall keep separate account of the income and expenditure of such conference and such account shall be subject to audit.The Registrar may convene any conference of co-operative societies.76. Registrar's power of condonation.
- The Registrar may condone the failure on the part of any registered society to comply with any Rule which requires his previous sanction for any purpose.77. Savings.
- Any action taken or order made before the commencement of these Rules shall, so far as it is consistent with these Rules, be deemed to have been taken or made under the appropriate provisions of these Rules.Form No. I[Rule 3(1)]Form of application to register a societyTo,The Registrar,Co-Operative Societies, Bihar.Dated the..............200We, the undersigned, agree to the enclosed bye-laws and under Section 9 (1) of the Bihar and Orissa Co-operative Societies Act, 1935 (Bihar and Orissa Act VI of 1935) apply to be registered as a Co-operative Society with limited/ unlimited liability, under the name and title of.................the registered office being at ...................... in Thana .......................... Post office ..........................., subdivision ........................and district...................We submit four copies of the bye-laws of our society.| No. | Name of the applicant | Age | Father's Name | Occupation or class | Residence | Signature or thumb impression duly attested | Remarks |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Rs. | |||
| I. | Assets- | ||
| ...................bighas/acres of land are held by theapplicant which have been valued at Rs. ............... | ... | ||
| Value of other properties | ... | ||
| Total | ... | ||
| II. | Liabilities- | ||
| Rent due to landlord | ... | ||
| Cash debts | ... | ||
| Interest due on cash debts | ... | ||
| Mortgage debts | ... | ||
| Interest due on mortgage debts | ... | ||
| Other liability, if any | |||
| Total | ... | ||
| III. | Annual income of member- | ||
| 1. Annual profits from lands | ... | ||
| 2. Other income from lands | ... | ||
| Total | ... |
1. Date or dates of local inquiry and by whom held.
2. Do all the applicants understand the main principles of co-operation?
3. Have the bye-laws been fully explained to the applicants?
4. How many literate persons have been enrolled.
Note. - '"Literate" means a person who can write and read a letter. At least two or three literate persons should join the society, one of whom must be capable of keeping the accounts.5. What are the antecedents and the character of the applicants? Are they litigious, and to what do you ascribe their indebtedness if any?
6. Are the applicants in arrears of rent and if so, why?
Note. - Raiyats who are unpunctual in the payment of rent do not usually make good members of co-operative societies.7. Has a statement of property and debts been drawn up and enclosed with the organisation papers? Has the amount of loan recommended for each applicant been entered in the remarks column of the application?
Note. - The statement must be personally verified and attested by the organiser. Reference should be made to the records-of-rights and also, if possible, to the landlord's papers. Valuation of land must be put at a low figure, i.e., that which it would fetch at an involuntary sale. It there is no custom of transfer, it may be fixed at two thirds of the amount for which, it could be mortgaged.These informations are required in respect of agricultural credit society only.8. How the society to be financed? What is the initial capital with which it is proposed to start work. (If it is proposed to pay off old debts at the start, special reasons for this course should be given).
9. What are the chief crops in the locality in which the society is situated? What are the means of irrigation and what is the distance of the village from the headquarters of the Central Co-operative Society or Organiser? Is it easily accessible?
10. Does it belong to any group of cooperative societies in existence?
11. What provision has been made for its local supervision?
12. Have you any other remarks to make?
Signature of OrganiserRecommended for registration by the Directors of ..................... Central Bank/ Union, vide Resolution no. ........................... dated................Honorary Secretary..................... Co-operative SocietyForm No. IV[Rule 4 (3)]Form of Certificate of RegistrationOffice of the Registrar. Co-Operative Societies, BiharIn the matter of application for registration of a Co-operative Society at .............................. police station ............................. in the district of ..............................I do hereby certify that pursuant to Section ................................. of the Bihar and Orissa Co-operative Societies Act, 1935 (Bihar and Orissa Act VI of 1935) .................................. Co-operative Society has been registered in my office as a Co-operative Society with limited liability under the name and title of the .................................. and the bye-laws of the society have also been registered.The following is the area of operation of the society:-Seal of the office.Registrar,Co-operative Societies, Bihar.Dated this day of .................................. Two thousand .................................Form No. V[Rule 7(1)]Form of application for MembershipToThe Committee of ManagementCo-Operative SocietySir,I hereby apply for admission as a member of the ................................ Society. I have carefully read the bye-laws and Rules of the society/the bye-laws and Rules have been read out and explained to me and I hereby agree to abide by the same.I request that you will allot me .......................... shares and I hereby agree to accept the same or any less number that you may allot to me.I am/ am not a member of ............................ Society.I also do hereby nominate the person named below as the person to whom shall be transferred my shares, deposits and loans or any other interest in the society after my death.Yours faithfully.| Signature | ... | ... |
| Father's or husband's name | ... | ... |
| Age | ... | ... |
| Profession | ... | ... |
| Permanent Address | ... | ... |
| Present Address | ... | ... |
| Name of nominee | ... | ... |
| Relationship | ... | ... |
| Age of nominee | ... | ... |
| Address of nominee | ... | ... |
1.
2.
3.
The following are the amendments referred to above:-Members of Managing Committee-1.
2.
3.
Secretary.Note. - The amendments should be submitted in four copies with the following heading :- Present bye-laws, amendment proposed, reasons for the amendment.Form No. VII[Rule 17(2)]Certificate of registration of amendmentI do hereby certify that the amendments to the bye-laws of the ........................ Co operative Society registered under the Bihar and Orissa Co-operative Societies Act, 1935 (Act VI of 1935) as contained in the enclosed document have been registered under Section 25 of the said Act, in token of which necessary certificate duly signed and sealed bearing number .......................... dated ......................... day .......................... 200...... has been appended on the document.The copy of the bye-laws deposited in this office has been accordingly amended.RegistrarCo-operative Societies, BiharSealDated this day of .............................. Two thousand ..................Form No. VIII[Rule 18]Certificate of amendment of bye-lawsIn the matter of the ................................ a Co-operative Society registered under the Bihar and Orissa Co-operative Societies Act, 1935 (Bihar and Orissa Act VI of 1935).In exercise of the powers vested in me under sub-Section (2) of Section 26 of Bihar and Orissa Co-operative Societies Act, 1935 (Bihar and Orissa Act VI of 1935) I do hereby certify that amendments to the bye-laws of the abovementioned society as contained in the enclosed document have been registered under Section 26 of the said Act in token of which necessary certificate duly signed and sealed bearing number ................................ dated ................. 200........ has been appended on the document.The copy of the bye-laws deposited in this office has been accordingly amended. I hereby call upon the Secretary of the said Society to get the amendment noted in the registered copy of the bye-laws deposited with society.Registrar,Co-operative Societies, Bihar.SealDated this day of .............. two thousand ..............Form No. IX[Rule 41 (3)]Application for loan along with declaration of property of the member/ applicantTo,The Honorary Secretary,............... Co-Operative Society Limited/ UnlimitedI .......................... son of ....................... a, member of your society request you to sanction a loan of Rs. ........................ as short-term/ medium term for meeting miscellaneous agricultural expenses and for purchases of bullock, repayable in one/ three to five years. Every kist along with interest at the rate of ....................... percent will be paid in time.Bullock purchased with the loan from the society will not be sold by me during the pendency of the loan till it is fully satisfied.At present I possess bullocks and I pledge the following property as specified below. I am the sole proprietor/ Karta of the property, by virtue of inheritance from ........................ by virtue of purchase under the sale deed ...................... from ......................... and it/ they/ is are free from encumbrances.Details of the Property.Name of mouzaSub-registry officeDistrictAnnual rentalKhata no.Area.Thana.Subdivision.Touzi no.Khesra no.I am indebted to the extent noted below:-| Amount of loan | Amount repaid till to date | Balance | Name of lender with residence etc. |
| 1.2.3. |
| Serial no. | Name of members, past members and nominees,heirs, legal representatives of deceased members or officer orpast officer of society. | Amount of principal. | Interest. | Contribution to wards the cost of liquidation. | Total. | Remarks. |
| 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Rs. | Rs. | Rs. | Rs. | Rs. |