Section 28 in The Orissa Co-operative Societies Act, 1962
28. Society to have a Committee.
- [(1) The management of a Society shall vest in a Committee constituted in accordance with this Act, Rules, and Bye-laws, and the Committee so constituted shall exercise such powers and perform such duties as may be necessary or expedient for the purpose of carrying out its functions under this Act which shall include -(a)the power to(i)admit members and dispose of applications for shares;(ii)interpret the organisational objectives and set specific goals to be achieved towards those objectives;(iii)prepare annual and supplementary budgets and get approval of the General Body thereto;(iv)raise and invest funds in accordance with the Bye-Laws;(v)sanction all expenditure above the prescribed level, and the plan of capital development for the coming year or years;(vi)enforce any debt or demand of the Society and institute, defend or compromise legal proceeding for or against the Society;(vii)assess the existing man-power resources and future requirements in the context of changes that might have taken place and the measures to be taken to ensure availability of the required resources consider and remove constraints in the process or progress of manpower planning atleast once at the beginning of every year;(viii)[ to create posts, make service conditions, leave concessions, fixation and revision of pay and allowances of the employees of Co-operative Societies with the previous approval of the Registrar and shall have power to appoint officers and other staffs to conduct the business of the Society and determine inter alia their duties, disciplinary matters, subject to provisions in this regard, in the Act, Rules and the Bye-laws];(ix)arrange for the education and training of members and employees and review the programmes and the progress, relating thereto, at least once at the beginning of every year;(x)dispose of applications for loans in the case of Credit Societies, fix rates of interest subject to the directions of the Reserve Bank of India and the"National Bank for Agriculture and Rural Development and determine securities to be taken for such loans;(xi)appoint Sub-Committees as may be deemed necessary :Note : The manner of constituting Sub-Committees, their functions the term of office of members and their removal and other related matters shall be regulated by the Bye-Laws;(xii)make periodical appraisal of its operations;(xiii)acquire, hold and dispose, in the prescribed manner of property; and(xiv)take such other measures or do such other acts as may be prescribed or required under this Act, Rules and Bye-Laws; and(xv)[ decide its own internal control system such as internal inspection, delegation of authority, safe custody of valuables, fraud prevention measures depending upon its scale of business and appoint auditors for audit of the accounts of the Co-operative Credit Society and determine the payment to be made for such audit: Provided that the Committee of a Co-operative Credit Society while taking action under sub-clauses (vii) and (viii) shall give due regard to the guidelines issued by the Registrar under Sub-section (2) of Section 33-A.] [Inserted by Orissa Act 1 of 2008 Section 10 (i) (O.G.E. No. 654 dated 20.3.2008).](b)the duty of-(i)observing, in all affairs, the provisions of this Act, Rules and Bye-Laws;(ii)causing -(a)proper receipt and disbursement of moneys of the Society and maintenance of the accounts, assets and liabilities of the Society;(b)preparation of Annual Report of the Society for every year;(c)preparation of Annual Returns prescribed by the Registrar and the Auditor General;(d)preparation of the statement of accounts required at audit and placement of the same before the auditors;(e)preparation of all other statements and returns and submission of the same to the Registrar and the Auditor-General in such forms as they may direct;(f)maintenance of the accounts of the Society regularly in proper Books;(g)maintenance of the Registrar of members up-to-date;(iii)formulating recommendation for appropriation of the net profits declared as distributable under the provisions of this Act and Rules, and submitting the same to the General Body;(iv)facilitating the inspections, inquiries and audits under this Act and considering the Audit, Inspection and Inquiry Reports received from the concerned authorities and furnishing compliance thereto in accordance with the provisions of this Act and Rules;(v)convening the meeting and special meetings of the General Body in time;(vi)watching that the loans and advances are utilised for the purposes for which they are meant and also that they are repaid punctually;(vii)examining and taking prompt action in cases of all arrears and defaults in repayment of loans and advances;(viii)liasioning with the members in all matters of the Society and ensuring the observance of the co-operative principles;(ix)making arrangements for holding elections in time; and(x)performing such other functions as may be entrusted to it by the General Body or required by or under this Act, Rules and the Bye-Laws;][ [(1-a) There shall be a President and a Vice-President of the Committee who shall have such powers, duties and responsibilities as may be prescribed.] [Inserted by Orissa Act No. 23 of 1994, dated 4.11.1994.][(1-aa)] [Re-numbered by Orissa Act No. 23 of 1994, Section 3 (ii) dated 4.11.1994.] The term of office of the Committee shall be four years from the date of assumption of the office by the Committee.] [Substituted by Orissa Act No. 28 of 1991, Section 19 (a) dated 31.12.1991, [(1 (a)xiii force w.e.f. 10.6.1997) force w.e.f. 1.5.1993 excepting 1 (a)viii, and xiii)].]Explanation. - The date of election of the President shall be deemed to be the date of assumption of office by the Committee.(1-b) The expiration of the period of four years shall operate as a dissolution of the committee and thereupon -(i)the members including the President [and Vice-President, if any] [Inserted by Orissa Act No. 23 of 1994, Section 3 (iii) dated 4.11.1994.] of the committee shall be deemed to have vacated their offices;(ii)[ if the election of a new Committee is not completed by the date of such dissolution, the management of the Society shall vest in the Registrar, and upon such vesting, the Registrar, or any officer of the State Government, the Society or the Apex or Central Society to which it is affiliated authorised by the Registrar in that behalf in writing, shall manage the affairs of the Society, [and if necessary, take all or any policy decision including admission of members in relation to the society] [Substituted by Orissa Act No. 28 of 1991,Section 19 (b) dated 31.12.1991, force w.e.f. 1.5.1993 (Sub-Sections 1(c), 2 , force w.e.f. 11.9.1992).] and constitute the committee in accordance with the provisions of this Act, Rules and the Bye-Laws within a period of six months from the date of such dissolution;](iii)[The Registrar or, subject to the superintendence and control of the Registrar, the officer authorised under Clause (ii) shall be competent to exercise and perform all or any of the powers and functions of the Committee or any Office-bearer of the Society and shall be deemed, for the purposes of this Act, Rules and the Bye-Laws, to be the Committee of such Society;] [Inserted by Orissa Act No. 28 of 1991, Section 19 (b) dated 31.12.1991, w.e.f. 1.5.1993.][(1-c) Notwithstanding anything contained in this Act, in the case of a Society registered after the commencement of the Orissa Co-operative Societies (Amendment) Act, 1991, a preliminary Committee consisting of the President and members indicated in the application for registration of the Society shall manage the affairs of the Society, [and if necessary, take all or any policy decision including admission of members in relation to the society] [Substituted by Orissa Act No. 28 of 1991, Section 19 (a) dated 31.12.1991, force w.e.f. 1.5.1993 (Sub-Sections 1(c), 2 , force w.e.f. 11.9.1992).] for a period not exceeding one year or till a Committee is constituted in accordance with the provisions of this Act, Rules and the Bye-Laws, whichever is earlier :Provided that if such Society is an Apex or Central Society, including a Central Co-operative Bank, and is assisted by the State or Central Government in any manner specified in Sub-section (1) of Section 31, the State Government or any person authorised by it may nominate the members and President of the Preliminary Committee to manage the affairs od the Society [and if necessary, take all or any policy decision including admission of members in relation to the society] [Inserted by Orissa Act No. 11 of 2002, Section 2 (ii) dated 28.10.2002, w.e.f. 29.6.2002] for a period not exceeding two years so, however, that not less than half of the members thereof shall be from among the members of the Society.] [Substituted by Orissa Act 28 of 1991, Section 15 & Section 16 dated 31.12.1991, w.e.f. 11.9.1992.](2)[] [Substituted by Orissa Act No. 28 of 1991, Section 19 (a) dated 31.12.1991, force w.e.f. 1.5.1993 (Sub-Sections 1(c), 2 , force w.e.f. 11.9.1992).] (a) [The Committee of a Society shall, excluding the members deemed or nominated as members under Sub-section (3-b) of Section 28 and Sub-section (1) of Section 31, consist of -(i)Twenty-one members in the case of an Apex Society and fifteen in the case of Central Society including the President and the Vice-President;](ii)[ fifteen members including the President and the Vice-President in the case of a Primary Society including a Large-sized Adivasi Multipurpose Co-operative Society;] [Substituted by Orissa Act No. 23 of 1994 Section 3 (iv) (a), Section 3 (iv) (b).](b)[ In the case of a Large-sized Adivasi Multipurpose Co-operative Society, two-thirds of the total number of elected members of the Committee shall be from among the members belonging to the Scheduled Tribes, so however that the said two-third shall also include women members numbering not less than one-third of the total number of such elected members.] [Substituted by Orissa Act No. 23 of 1994 Section 3 (iv) (a), Section 3 (iv) (b).][Provided that the offices of the President and Vice-President shall be reserved for the Scheduled Tribes] [Inserted by Orissa Act No. 10 of 2001, Section 3 (i) force w.e.f. 3.7.2001.]Explanation. - The principle for determining whether a Society is a large sized Adivasi Multipurpose Co-operative Society or not shall be such as may be prescribed.(c)[ In the case of a Primary Society other than Large-sized Adivasi Multipurpose Co-operative Societies, two members each shall be from the Scheduled Castes and the Scheduled Tribes, three from Other Backward Classes including Socially and Educationally Backward Classes and two from Women members, so that among each of the said Scheduled Castes, Scheduled Tribes and Other Backward Classes including Socially and Educationally Backward Classes of members, there shall be one woman. [Substituted vide O.G.E. No. 1832 dated 27.12.2004. Section 3 (i)(O.A. No. 11 of 2004).](d)In the case of a Central Society, two members each shall be from the Scheduled Castes and the Scheduled Tribes, three from Other Backward Classes including Socially and Educationally Backward Classes and two from Women members, so that among each of the said Scheduled Castes, Scheduled Tribes and Other Backward Classes including Socially and Educationally Backward Classes of members, there shall be one woman.(e)In the case of an Apex Society, three members each shall be from the Scheduled Castes and the Scheduled Tribes, four from other Backward Classes including Socially and Educationally Backward Classes and three from Women members, so that among each of the said Scheduled Castes and Scheduled Tribes members, there shall be one woman and among the Other Backward Classes including Socially and Educationally Backward Classes members, there shall be two women :Provided that, save as provided in the aforesaid clauses there will be no bar for the members belonging to the said reserved categories to contest the election against the remaining seats in the Managing Committee of the Primary, Central and Apex Co-operative Societies.] [Substituted by Orissa Act No. 7 of 1996, Section 7 (ii) (a) dated 22.4.1996.](f)[ Notwithstanding anything contained in this Sub-section - [Substituted by Orissa Act 7 of 1996, Section 7 (i) dated 22.4.1996.](i)[ in the event of the seats in the Committee reserved for Women, Scheduled Castes, Scheduled Tribes and Other Backward Classes remaining unfilled in any election of a Primary, Central or Apex Society, the Committee of the Society shall co-opt., the required number of such categories of members from among the members of the Society or, where the required number of such categories of members is not available for such co-option, the Committee shall co-opt the required number of members from amongst the members of the Society belonging to any category to fill up such seats, and for the purpose of making such co-option, the vacancies in the unfilled seats reserved for the said categories shall not invalidate the Constitution or functioning of the Committee, if otherwise it would be having a quorum;](ii)the term of office of every such co-opted member shall be co-terminus with the other members of the Committee;](iii)[* * *] [Omitted by Orissa Act 10 of 2001, dated 29.8.2001, force w.e.f. 3.7.2001.](g)[(i) Notwithstanding anything to the contrary contained in this Act, Rules and Bye-Laws, the Committee (which shall include a preliminary Committee) of every Primary Society, Central Society and Apex Society existing immediately before the date of commencement of the Orissa Co-operative Societies (Amendment) Act, 2001 shall stand dissolved with effect from the said date and the members including the President and the Vice-President of every such Committee shall be deemed to have vacated their offices on that date, and where, on the date of such commencement, the management of any such society continues to vest in the Registrar, the proceedings or actions taken, if any, for constitution of the Committee thereof shall stand cancelled;] [Substituted by Orissa Act 10 of 2001, Section 3 (iv) (b) dated 29.8.2001, force w.e.f. 3.7.2001.](ii)[ the management of every society, the Committee of which is so dissolved or which so continues to vest in the Registrar, shall vest or, as the case may be, shall so continue to vest in the Registrar, and the Registrar or a Committee nominated by him from amongst the members of the society, or a member society affiliated to it or a society affiliated to such member society, as far as practicable representing the Scheduled Castes, Scheduled Tribes, Other Backward Classes and Women, shall manage the affairs of the society and take all or any policy decision including admission of members in relation to the society till the Committee is constituted in accordance with the provisions of this Act;] [Substituted by Orissa Act 11 of 2002, Section 2 (iii) (a) dated 28.10.2002, force w.e.f. 29.6.2002.](iii)every Society referred to in Sub-clause (ii) shall amend its bye-laws as may be necessary, so as to bring them in conformity with the provisions of this Act as amended by the Orissa Co-operative Societies (Amendment) Act, 2001 and reconstitute the Committee within six months from the date of commencement of the said Act; and(iv)in the event of any Society failing to so amend its bye-laws and reconstitute the Committee within the period specified in sub-clause (iii), the Registrar shall make such amendment and reconstitute the Committee within [seventy-five months] [Substituted by Orissa Act 1 of 2008 Section 10 (ii) (O.G.E. No. 654 dated 20.3.2008).] following the date of expiry of the period so specified.[(2-a) (i) A Society, the Bye-Laws and the Committee of which, are not in conformity with the provisions of this Act as amended by the Orissa Co-operative Societies (Amendment) Act, 1991 shall amend its Bye-Laws and notwithstanding anything to the contrary in this Act, reconstitute in the manner provided under this Act, Rules and the Bye-Laws its Committee within a period of [eight months] [Substituted by Orissa Act No. 28 of 1991, Section 19(f) dated 31.12.1991, w.e.f. 11.9.1992.] from the date of commencement of the said Amendment Act so as to bring them in conformity with the provisions as so amended.(ii)In the event of a Society failing to so amend and reconstitute within the period mentioned in Clause (i), the Registrar shall make such amendment and reconstitution within a period of four months following the date of expiry of the period mentioned in the said Clause;][(2-b) The provisions of Sub-section (2-a) shall mutatis mutandis apply to a Society, the Committee of which may be standing dissolved under Section 28 or superseded under; Section 32 as on the date of commencement of the Orissa Co-operative Societies (Amendment) Act, 1991;] [Substituted by Orissa Act No. 28 of 1991, Section 19(g) & Section 19(h)(i), Section 19(h)(ii) dated 31.12.1991, w.e.f. 11.9.1992.](3)[ No individual shall, whether by himself or as a representative of the Society, be eligible for being chosen or for continuing as a member or [the President or as the Vice-President, if any] [Substituted by Orissa Act No. 19 of 1983-Section 9 (c)(i) See O. G. E. dated 11.10.1983.] of the Committee of a Society, if he -](a)is an applicant to be adjudicated an insolvent or an undischarged insolvent; or(b)has been sentenced for an offence involving moral turpitude such sentence not having been reversed; or(c)is of unsound mind or is a deaf-mute or is suffering from leprosy; or(d)[ is a family member of any paid employee of the Society;] [Substituted by Orissa Act No. 28 of 1991, Section 19(g) & Section 19(h)(i), Section 19(h)(ii) dated 31.12.1991, w.e.f. 11.9.1992.]Provided that nothing in this clause shall debar -(i)any person specifically permitted by the Registrar in that behalf from becoming the Secretary of the Society; or(ii)the paid employees of societies from becoming members of the Committee of a society composed exclusively of such employees; or(e)[ has failed to pay any amount due, whether in cash or in kind, to the Society; its Financing Bank, or any other Society, on account of any loan or otherwise within three months from the date of notice by the Society or the Financing Bank concerned for payment of such dues : [Substituted by Orissa Act No. 28 of 1991, Section 19(g) & Section 19(h)(i), Section 19(h)(ii) dated 31.12.1991, w.e.f. 11.9.1992.]Provided that nothing in this clause shall debar any such person from being chosen as member or President if he makes payment of the dues before the date of filing his nomination at an election of any Society;](f)is interested directly or indirectly in any contract made with the Society or in any sale or purchase made by the Society or in any contract or transactions of the Society (other than investment and borrowing) involving financial interests, if the contract or transaction, sale or purchase be not complied; or(g)[ has been expelled from a Society under Section 21-A :] [Substituted by Orissa Act No. 19 of 1983-Section 9(c)(iii) See O. G. E. dated 11.10.1983.]Provided that this disqualification shall not apply where more than two years have elapsed from the date of such expulsion or where the Registrar has sanctioned the re-admission or admission within the said period of any such member as a member of the same Society or any other Society, as the case may be;(h)[ has been convicted on charge of misappropriation or defalcation of funds of any Society [or of any offence under this Act] [Substituted by Orissa Act No. 19 of 1983-Section 9(c)(iii) See O. G. E. dated 11.10.1983.] or has been found liable in a surcharge proceeding until such conviction or liability is reserved; or](i)has been dismissed, discharged or removed from the service of the Government, Public Sector Undertaking, Local Body, a Cooperative Society or any other body corporate as a result of disciplinary proceedings on charge of embezzlement, misappropriation or any other misconduct involving moral turpitude unless the order of such dismissal, discharge or removal has been reversed; or(j)[ is holding any office of profit under the State or Central Government, any Public Sector Undertaking, Local Authority, educational institution or a Co-operative Society : [Substituted by Orissa Act No. 28 of 1991, Section 19(h)(iv) dated 31.12.1991, w.e.f. 11.9.1992.]Provided that nothing in this clause shall debar -(i)any such person from becoming a member or the President of the Committee of a Society composed exclusively of such persons; and(ii)a person nominated under Sub-section (1) of Section 31, or appointed under this Act to manage the affairs of a Society from becoming a member but not the President of the Committee of a Society;](k)is debarred under the Representation of the Peoples Act, 43 of 1951 to contest election; [or] [Substituted by Orissa Act No. 28 of 1991, Section 19(h)(iv) dated 31.12.1991, w.e.f. 11.9.1992.](l)[] [Inserted by Orissa Act 28 of 1991, Section 19(h)(vi) dated 31.12.1991, w.e.f. 11.9.1992.] [* * *] [Omitted by Orissa Act No. 32 of 1992, Section 2(ii) dated 28.11.1992.](m)is retained or employed as a legal practitioner;(a)against the Society; or(b)on behalf of the Society, except in an honorary capacity; or(n)abstains himself, while remaining member or President, from attending the meetings of the Committee of a Society over a continuous period of six months;(i)without prior intimation in respect of every such meeting; or(ii)with prior intimation if, upon such intimation, the Committee disapproves the abstention in the meeting to which the intimation relates or the meeting next following :Provided that nothing in this clause shall debar such person from becoming a member or President after the expiry of a period of two years from the date immediately following the date on which the said period of six months expires; or(o)abstains himself from attending the meetings or special meetings of the General Body or the Representative Smaller General Body, as the case may be, over a continuous period of one year-(i)without prior intimation for every such meeting; or(ii)with prior intimation if, upon such intimation, the [General Body, or as the case may be, Smaller General Body] [Substituted by Orissa Act 23 of 1994, Section 3(v)(d) dated 9.11.1994.] disapproves the abstention in the meeting to which the intimation relates or the meeting next following :Provided that nothing in this Clause shall debar such person from becoming a member or President after the expiry of a period of two years from the date immediately following the date on which the said period of one year [expires or;] [Substituted by Orissa Act No. 23 of 1994, Section 3(v)(b).](p)[ has more than two children : [Inserted by Orissa Act No. 23 of 1994, Section 3(v)(c)w.e.f 1.1.1995.]Provided that nothing in this clause shall apply to a person who has more than two children as on the 1st day of January, 1995, or as the case may be, within a period of one year of the said date, unless such person begets an additional child after the said period of one year.][(3-a) A representative of a Society or a body corporate shall not be eligible for being chosen or for continuing as a member or President of the committee of any other Society in cases where the Society or the body corporate which he represents -(i)[ has failed to pay any amount due, whether in cash or in kind, to the Society, its Financing Bank or any other Society, on account of any loan or otherwise, within three months from the date of notice by the Society or the Financing Bank concerned for payment of such dues :Provided that nothing in this Clause shall debar any such representative from being chosen as a member or President of the Committee of any other Society if the Society or body corporate he represents, makes payment of the dues, before the date of filing his nomination at an election of any such other Society.] [Inserted by Orissa Act No. 19 of 1983 Section 9 (d)-See O. G. E. dated 11.10.1983.](ii)ceases from the membership of the Society; or(iii)is ordered to be wound up or dissolved.[(3-aa) Any individual continuing as a Member or President of the Committee, whether by himself or as a representative of another Society, incurring any of the disqualifications specified in Sub-section (3) or Subsection (3-a) shall cease to hold his office as such with effect from the date he incurs such disqualification;] [Inserted by Orissa Act No. 28 of 1991, Section 19 (j) dated 31.12.1991, w.e.f. 11.9.1992](3-b) [(1) Notwithstanding anything contained in this Act, there shall be a Chief Executive for every society, by whatever designation called, who shall be appointed on whole time basis by the Committee subject to the approval of the Registrar. Such Chief Executive shall be deemed to be a member of the Committee in the case of an apex society and any other society or class of societies as the State Government may, by notification from time to time, specify.] [Substituted vide O.G.E. No. 1832 Setion 21 dated 27.12.2004 (O.A. No. 11 of 2004).](2)Subject to the overall control of the Committee, the Chief Executive shall -(a)manage the day-to-day business of the Society;(b)operate the accounts of the Society;(c)be responsible of making arrangements for safe custody of cash;(d)sign on the documents for and on behalf of the Society;(e)make arrangements for the proper maintenance of various books and records of the Society, for the correct preparation, timely submission of periodical statements and returns in accordance with the provisions of this Act and the Rules and Bye-Laws made thereunder.(f)be competent to convene meetings of the General Body, the Committee and Sub-Committee, if any, and maintaining proper records for such meetings;(g)be competent to make appointments to posts in the Society in accordance with the rules prescribed excepting the posts relating to which the power of appointment vests in the Committee;(h)assist the Committee in the formulation of policies, objectives and plannings etc.;(i)furnish to the Committee periodical information necessary for apprising the operation and function of the Society; and(j)perform such other duties and exercise such other powers, as may be prescribed or as may be specified in the Bye-Laws of the Society.(3)[ Where a Chief Executive Officer appointed by the Committee of a State Co-operative Bank or Central Co-operative Bank, does not possess the requisite qualifications laid down in the proviso to clause (b) of Subsection (1) of Section 33-A, the said Bank shall, at the request of National Bank or the Reserve Bank of India, remove the Chief Executive Officer after giving him a reasonable opportunity of being heard.] [Inserted by Orissa Act 1 of 2008 Section 10 (iii) (O.G.E. No. 654 dated 20.3.2008).](3-c) The Chief Executive shall be deemed to be public servant within the meaning of Section 21 of the Indian Penal Code, 5 of 1860.](4)[ to (4-d) * * *] [Omitted by Orissa Act No. 28 of 1991, force Section 19 (l) w.e.f. 11.9.1992.](5)[ If in the opinion of the Registrar, any officer or office-bearer of a Society who having the power, by or under the Bye-Laws, to remain in custody of any cash belonging to the Society, keeps in his custody, without reasonable cause, any such money in excess of the permissible limit beyond the period allowed under the Bye-Laws or in any other manner not permitted thereunder, the Registrar may, by order in writing, after giving such officer or office-bearer a reasonable opportunity of being heard remove him from his office and thereupon he shall be deemed to have vacated his office with effect from the date of the said order.] [Substituted by Orissa Act No. 28 of 1991, Section 19 (m) dated 31.12.1991, w.e.f. 11.9.1992](6)[ Where any vacancy in the office of a member or the President of a Committee arises by reasons of death, resignation or removal of any member or the President or [otherwise] [Inserted by O.A.No. 19 of 1983 Section 9 (g)-See O. G. E. dated 11.10.1983.] such vacancy -(a)shall be filled up in the same manner as it was originally filled up;(b)shall, within fifteen days from the date of its occurrence, be intimated by the Chief Executive of the Society to the Election Officer or the authority having power to fill up the vacancy and the Election Officer or the authority, as the case may be, shall take steps to fill up the vacancy within a period not exceeding six months from the date of receipt of the intimation.]
