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  #31  
Old Wednesday, January 20, 2016
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Default Cooperatives Today

Cooperatives Today


Co-operative communities are now widespread, with one of the largest and most successful examples being the Mondragón Cooperative Corporation in the Basque country of Spain. Co-operatives were also successful in Yugoslavia under Tito where Workers' Councils gained a significant role in management.
In many European countries, cooperative institutions have a predominant market share in the retail banking and insurance businesses.
In the UK, co-operatives formed the Co-operative Party in the early 20th century to represent members of co-ops in Parliament. The Co-operative Party now has a permanent electoral pact with the Labor Party, and some Labor MPs are Co-operative Party members. UK co-operatives retain a significant market share in food retail, insurance, banking, funeral services, and the travel industry in many parts of the country.
Denmark has had a strong cooperative movement.
In Colorado, the Meadowlark Cooperative administers the first and only private free land program in the United States, providing many services to its members who buy and sell together.
In the United States there are over 29,000 co-operatives employing 2 million people with over $652 billion in annual revenue.

Agricultural cooperative

An agricultural cooperative, also known as a farmers' co-op, is a cooperative where farmers pool their resources in certain areas of activity.
A broad typology of agricultural cooperatives distinguishes between agricultural service cooperatives, which provide various services to their individually farming members, and agricultural production cooperatives, where production resources (land, machinery) are pooled and members farm jointly. Examples of agricultural production cooperatives include collective farms in former socialist countries, the kibbutzim in Israel, collectively governed community shared agriculture, Longo Mai co-operatives and Nicaraguan production co-operatives. Worker cooperatives provide an example of production cooperatives outside agriculture.
The default meaning of agricultural cooperative in English is usually an agricultural service cooperative, which is the numerically dominant form in the world. There are two primary types of agricultural service cooperatives, supply cooperative and marketing cooperative. Supply cooperatives supply their members with inputs for agricultural production, including seeds, fertilizers, fuel, and machinery services. Marketing cooperatives are established by farmers to undertake transformation, packaging, distribution, and marketing of farm products (both crop and livestock). Farmers also widely rely on credit cooperatives as a source of financing for both working capital and investments.

Why farmers form cooperatives

Cooperatives as a form of business organization are distinct from the more common investor-owned firms (IOFs). Both are organized as corporations, but IOFs pursue profit maximization objectives, whereas cooperatives strive to maximize the benefits they generate for their members (which usually involves zero-profit operation). Agricultural cooperatives are therefore created in situations where farmers cannot obtain essential services from IOFs (because the provision of these services is judged to be unprofitable by the IOFs), or when IOFs provide the services at disadvantageous terms to the farmers (i.e., the services are available, but the profit-motivated prices are too high for the farmers). The former situations are characterized in economic theory as market failure or missing services motive. The latter drive the creation of cooperatives as a competitive yardstick or as a means of allowing farmers to build countervailing market power to oppose the IOFs.[1] The concept of competitive yardstick implies that farmers, faced with unsatisfactory performance by IOFs, may form a cooperative firm whose purpose is to force the IOFs, through competition, to improve their service to farmers.

A practical motivation for the creation of agricultural cooperatives is related to the ability of farmers to pool production and/or resources. In many situations within agriculture, it is simply too expensive for farmers to manufacture products or undertake a service. Cooperatives provide a method for farmers to join together in an 'association', through which a group of farmers can acquire a better outcome, typically financial, than by going alone. This approach is aligned to the concept of economies of scale and can also be related as a form of economic synergy, where "two or more agents working together to produce a result not obtainable by any of the agents independently". While it may seem reasonable to conclude that larger the cooperative the better, this is not necessarily true. Cooperatives exist across a broad membership base, with some cooperatives having less than 20 members while other can have over 10,000.
While the economic benefits are a strong driver in forming cooperatives, it is not the sole consideration. In fact, it is possible for the economic benefits from a cooperative to be replicated in other organizational forms, such as an IOF. An important strength of a cooperative for the farmer is that they retain the governance of the association, thereby ensuring they have ultimate ownership and control. This ensures that the profit reimbursement (either through the dividend payout or rebate) is shared only amongst the farmer members, rather than shareholders as in an IOF.
In agriculture, there are broadly three types of cooperatives: a machinery pool, a manufacturing/marketing cooperative, and a credit union.

Machinery Pool:

A family farm may be too small to justify the purchase of expensive farm machinery, which maybe only used irregularly, say only during harvest; instead local farmers may get together to form a machinery pool that purchases the necessary equipment for all the members to use.
Manufacturing/marketing cooperative:
A farm does not always have the means of transportation necessary for delivering its produce to the market, or else the small volume of its production may put it in an unfavorable negotiating position with respect to intermediaries and wholesalers; a cooperative will act as an integrator, collecting the output from members, sometimes undertaking manufacturing, and delivering it in large aggregated quantities downstream through the marketing channels.
Credit Union:
Farmers, especially in developing countries, can be charged relatively high interest rates by commercial banks, or even not available for farmers to access. When providing loans, these banks are often mindful of high transaction costs on small loans, or may be refused credit altogether due to lack of collateral - something very acute in developing countries. To provide a source of credit, farmers can group together funds that can be loaned out to members. Alternatively, the credit union can raise loans at better rates from commercial banks due to the cooperative having a larger associative size than an individual farmer. Often members of a credit union will provide mutual or peer-pressure guarantees for repayment of loans. In some instances, manufacturing/marketing cooperatives may have credit unions as part of their broader business. Such an approach allows farmers to have a more direct access to critical farm inputs, such as seeds and implements. The loans for these inputs are repaid when the farmer sends produce to the manufacturing/marketing cooperative.

Supply Cooperatives

Agricultural supply cooperatives aggregate purchases, storage, and distribution of farm inputs for their members. By taking advantage of volume discounts and utilizing other economies of scale, supply cooperatives bring down the cost of the inputs that the members purchase from the cooperative compared with direct purchases from commercial suppliers. Supply cooperatives provide inputs required for agricultural production including seeds, fertilizers, chemicals, fuel, and farm machinery. Some supply cooperatives operate machinery pools that provide mechanical field services (e.g., plowing, harvesting) to their members.

Problems faced by agricultural cooperatives

There are many problems faced by these cooperatives but the five major ones are:
1. Tough competition from MNC's
2. They face a lot of government intervention i.e. the various policies and legislations that affect these cooperatives
3. Inadequacy of professional and dynamic managers with complete knowledge and understanding
4. Inadequacy of capital
5. The extent of participation by the members and method of empowerment of members should be revised.
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  #32  
Old Wednesday, January 20, 2016
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Default expected paper date ?

Salam !
Does anyone know when the paper of this post is going to be held ?
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  #33  
Old Wednesday, January 20, 2016
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Sample Solved Paper Of Assistant Registrar 100 Marks MCQ's (2012)

http://educating.pk/2012/10/sample-s...practice-test/

Most Repeated MCQ's in past papers.
http://ajmalforum.blogspot.com/2012/...st-papers.html

Cooperative Societies Act-1925.
http://www.ajmalforum.blogspot.com/2...-act-1925.html

Cooperative Societies Rules-1927.
http://www.ajmalforum.blogspot.com/2...ules-1927.html
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  #34  
Old Thursday, January 21, 2016
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What would be the portion of English and Urdu composition ? Kahi idioms pair of words to ni ane? Kindly guide with previous experience. Thanks.
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Can i get a book from market for corporative paper?
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  #36  
Old Thursday, January 21, 2016
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please reply in detail with reference to the all four papers pattern and related details with stuff so that we may not need to post each and every Query time and again

Thanks in Advance.
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AoA. Can anyone tell the expected test date??
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Old Thursday, January 21, 2016
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Quote:
Originally Posted by khan baba5 View Post
AoA. Can anyone tell the expected test date??
end of March ....(speculation)
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Old Saturday, January 23, 2016
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Default The co-operative societies act, 1925

THE CO-OPERATIVE SOCIETIES ACT, 1925
(VII of 1925)
[4th December, 1925]

AN ACT to consolidate and amend the law relating to co-operative societies in [the Province of West Pakistan].
Preamble.— Whereas it is expedient to provide for the formation, registration and
regulation of cooperative societies for the promotion of thrift, self help and mutual assistance
amongst agriculturist or other persons with common economic or social interests and for
achieving better standards of living and for the matters incidental thereto;
It is hereby enacted as follows:-
[CHAPTER I
PRELIMINARY]

1. Short title.— This Act may be called the [* * *] Co-operative Societies Act, 1925.
[2. Extent.— This Act extends to the whole of the Province of West Pakistan, except the
Tribal Areas.]
3. Definitions.— In this Act, unless there is anything repugnant in the subject or context,
(a) “by-laws” means by-laws registered under this Act and for the time being in force
and includes a registered amendment of such by-laws;
(b) “Committee” means the Committee of Management or other directing body to
whom the management of the affairs of a society is entrusted;
[(bb) “Financing Bank” means a society the main object of which is to make loans in
cash or in kind to any other society or to an agriculturist who is not a member of a
society or to both societies and such agriculturists;]
[(bbb) “Loan” includes finance as defined in the Banking Tribunals Ordinance, 1984 and
all cognate expressions shall be construed accordingly];
(c) “Member” includes a person joining in the application for the registration of a
society or a person admitted to membership after registration in accordance with
the rules and by-laws applicable to such society;
(d) “Officer” includes a Chairman, Secretary, Treasurer, member of committee or
other person empowered under the rules or under the by-laws of a society to give
directions in regard to the business of such society;
(e) “Society” means a society registered or deemed to be registered or deemed to
be registered under this Act;
(f) “Registrar” means a person appointed to perform the duties of a Registrar of Cooperative
Societies under this Act;
(g) “Rules” means rules made under this Act;
(h) (1) a “resource society” means a society formed with the object of obtaining for
its members the credit, goods or services required by them;
(2) a “producers’ society” means a society formed with the object of producing and
disposing of goods as the collective property of its members and includes a society formed
with the object of the collective disposal of the labour of the members of such society;
(3) a “consumers’ society” means a society formed with the object of obtaining and
distributing goods to or of performing services for its members, as well as to other consumers
and of dividing among its members and customers in a proportion prescribed by the rules or by
the by-laws of such society, the profits accruing from such supply and distribution;
(4) a “housing society” means a society formed with the object of providing its
members with dwelling houses on conditions to be determined by its by-laws;
(5) a “general society” means a society not falling under any of the four classes
above-mentioned.
The Registrar shall classify all societies under one or other of the above heads and his
decision shall be final.
A society formed with the object of facilitating the operations of any one of the above
classes of societies shall be classified as a society of that class.
A list of all such societies, so classified shall be published annually in the [Official
Gazette].
[CHAPTER II
REGISTRATION]

4. The Registrar.— [The Provincial Government] may appoint a person to be Registrar of
Co-operative Societies for [the Province] or any portion of it, and may appoint a person or
persons to assist such Registrar, and may, by general or special order, confer on any such
person or persons all or any of the powers of a Registrar under this Act.
[4-A. Power of Registrar to issue search warrant.— (1) For the purpose of recovering any
papers, documents or books of account belonging to a society, the Registrar may issue a
search warrant and exercise all such powers with respect thereto as may be lawfully exercised
by a Magistrate under the Provisions of Chapter VII of the Code of Criminal Procedure, 1898,
and all such searches shall be made in accordance with the Provisions of that Code.
(2) The powers under sub-section (1) shall not be exercised by the Registrar before
serving a notice on the society and giving it a reasonable opportunity to produce such papers,
documents or books of account as are specified in such notice.]
5. Societies which may be registered.— Subject to the provisions hereinafter contained
a society which has as its object the promotion of the economic interests of its members in
accordance with co-operative principles, or a society established with the object of facilitating
the operations of such a society, may be registered under this Act with or without limited
liability:
Provided that, unless [the Provincial Government] by general or special order otherwise
directs–
(a) the liability of a society of which a member is a society shall be limited;
(b) the liability of a society of which the primary object is the creation of funds to be
lent to its members, and of which the majority of the members are agriculturists
and of which no member is a registered society shall be unlimited and the
members of such a society shall, on its liquidation, be jointly and severally liable
for and in respect of all obligations of such a society:
Provided further that when the question whether the liability of a society is limited or
unlimited has once been decided by the Registrar at the time of registration his decision shall
be final.
6. Restrictions on interest of member of society with limited liability and a share
capital.— Where the liability of the members of a society is limited by shares, no member
other than a society shall–
(a) hold more than such portion of the share capital of the society, subject to a
maximum of one fifth, as may be prescribed by the rules; or
[(b) have or claim to have an interest in the shares of the society not exceeding fifty
thousand rupees; provided that if the society is a housing society, a member may
have or claim to have an interest in the shares of the society, not exceeding two
hundred thousand rupees.]
[7. Conditions of registration.— (1) No society, other than a society of which a member is
a society, shall be registered under this Act, unless it consists of at least thirty members and in
case of a producers’ or housing society, consists of at least fifty members and each member of
a society, except the housing and producers’ societies, shall have the ordinary place of abode
in the same town or village or in the same group of villages within a radius of fifteen kilometers
from the registered office of the society.
(2) No society shall be registered for the purpose of carrying on business as a
banking society, financing bank or which uses as part of its name under which it proposes to
carry on business, the word “bank” or “banking” unless–
(a) it has a paid up capital of not less than twenty million rupees or such higher
amount, as may be prescribed; and
(b) satisfies such other conditions as may be prescribed.
(3) The word “Limited” shall be the last word in the name of every society registered
with limited liability.]
[7-A. Eligibility for membership.— A person shall be eligible to become member of a
society if–
(a) in case of an individual, he is above the age of eighteen years, is of sound mind,
is solvent and has not applied to be adjudged as an un-discharged insolvent;
(b) it is a cooperative society; or
(c) it is a body corporate or a company.]
[8. Power of Registrar to decide certain questions.— When any question arises as to
whether, for the purposes of this Act, a person is an agriculturist or not, or is resident of a town
or village or group of villages within a radius of fifteen kilometers from the registered office of
the society, the question shall be decided by the Registrar, whose decision shall be final.]
9. Application for registration.— (1) For purposes of registration an application to
register shall be made to the Registrar.
[(2) The application for registration of a cooperative society shall be–
(a) made in writing specifying the address of its proposed registered office;
(b) signed by at least fifty persons in case of producers’ or housing society and at
least thirty persons for any other category of societies with proof of the
identifications of those persons; provided that this condition as to the number of
persons shall not be applicable in case where at least one of the proposed
member is a society;
(c) accompanied, in the case of producers, or housing society or any other society
which is likely to adversely affect the environment, approval of the competent
authority in accordance with section 12 of the Pakistan Environmental Protection
Act, 1997 (Act XXXIV of 1997);
(d) accompanied by the following documents:
(i) a feasibility report showing its financial viability;
Explanation.— Financial viability shall include a statement of finances relating to the
expected business turn over of the society, stating the number of members and expenditures
being within its income;
(ii) proof that promoter members’ contributions towards the paid up share
capital are in accordance with the feasibility report;
(iii) proof of the payment of such registration fee as may be prescribed;
provided that different registration fee may be prescribed for different
categories of societies; provided further that in case of agriculture society,
the registration fee shall not exceed five hundred rupees; and
(iv) a copy of the proposed by-laws of the society.
(3) A housing society shall, within a period of one year of its registration, furnish the
schedule of proposed development of land, master plan, site plan indicating availability of the
existing public utilities, public amenities and other allied facilities in the area and, in case of its
failure, the Registrar may de-register the society after affording it an opportunity of hearing.
(4) The registration fee shall be deposited in the account of the Registrar and shall
be utilized in the prescribed manner.]
10. Registration.— If the Registrar is satisfied that a society has complied with the
provisions of this Act and the rules and that its proposed by-laws are not contrary to [any law
for the time being in force], he may register the society and its by-laws.
11. Evidence of registration.— A certificate of registration signed by the Registrar shall be
conclusive evidence that the society therein mentioned is duly registered unless it is proved
that the registration of the society has been cancelled.
12. Annual general meeting.— Every society shall within a period of three months after
the date fixed for making up its accounts for the year under the rules for the time being in force
call a general meeting of its members.
13. Special general meeting.— A special general meeting may be called at any time by a
majority of the committee and shall be called within one month–
(1) on the requisition in writing of one-fifth of the members of the society, or
(2) at the instance of the Registrar.
14. Change of name: its effect.— A society may, by a resolution of a general meeting and
with the approval of the Registrar, change its name: but such change shall not affect any right or
obligation of the society, or of any of its members, or past members and any legal proceedings
pending may be continued by or against the society under its new name.
[15. Amalgamation and division of societies.— (1) Any two or more societies may, with the
prior approval of the Registrar, by a resolution passed by two-third majority of the members present
and voting in a general or special meeting of the societies, amalgamate as a single society.
(2) A society may, with the prior approval of the Registrar, by a resolution passed by
two-third majority of the members present and voting in a general or special meeting of the
society divide the society into two or more societies.
(3) A society or societies, as the case may be, by way of a resolution passed in
accordance with this section, transfer to, divide or amalgamate its or their assets and liabilities with
any other society or societies in case of division or amalgamation with the prior written consent of
the creditor or creditors, if any, of the society or the societies.
(4) Division of assets and liabilities shall take place after due approval and audit and
in such manner, as may be prescribed.
(5) No new society arising out of an existing society shall be registered unless it
satisfies the conditions of registration of a society under this Act or the rules.]
[15-A. Merger of a society in a company, etc.— (1) Notwithstanding anything contained in this
Act and subject to any other law for the time being in force, a society may, with the written consent
of its creditors and the approval of the Registrar, by a resolution, incorporating the terms and
conditions of the proposed merger, passed by two-third majority of its members present and voting
in a general body meeting, merge itself in a company or a body corporate.
(2) On the fulfillment of the legal formalities and disposal of objections, if any, the
Registrar may issue a certificate authorizing such merger.
(3) On the issuance of the certificate under sub-section (2), all the assets and
liabilities of the society shall stand transferred to the company or the body corporate, as the
case may be.]
[16. Amendment of the by-laws of a society.— (1) No amendment of the by-laws of a society
shall be valid until it is registered under this Act.]
(2) If the Registrar is satisfied that any amendment of the by-laws [made by a
society] is not contrary to [any law for the time being in force], he may register the amendment.
(3) When the Registrar registers an amendment of by-laws of a society [under subsection(
2)], he shall issue to the society a copy of the amendment certified by him, which shall
be conclusive evidence that the same is duly registered.
[16-A. Powers of the Registrar to amend bye-laws.— (1) If the Registrar is satisfied that the
bye-laws of a society are inconsistent with any law for the time being in force, or it is necessary
in the interest of the society and its members to make amendments in such bye-laws, he may,
by means of a notice in writing, giving reasons, bring the fact to the notice of the society and
advise the society to make the amendments within a period of sixty days.
(2) If the society fails to make such amendments within the time specified in sub-section
(1), the Registrar may, after giving the society an opportunity of being heard, register such
amendments as he may decide and issue to the society a copy of the amendment registered by
him.
(3) An appeal shall lie to the Government from an order of the Registrar passed
under sub-section (2) within two months of the date of communication of the order.]
[CHAPTER III
RIGHTS AND LIABILITIES OF MEMBERS]

17. No rights of membership to be exercised till due payments are made.— No person
shall exercise the rights of a member of a society unless or until he has made such payment to
the society in respect of membership, or acquired such interest in the society as may be
prescribed by the rules or the by-laws of such society.
[17-A. Special provisions for membership of resource societies.— Notwithstanding
anything contained in this Act and any other law for the time being in force–
(i) every application made by any person for membership of an Agricultural Credit
Society shall be accompanied by a declaration specifying the immovable
property on which he agrees to have a charge created for the dues of the society;
and no such person shall be admitted as a member or shall exercise rights of a
member of such society unless he makes such declaration;
(ii) any member of an Agricultural Credit Society may at any time make a declaration as
in clause(i) regarding immovable property on which he agrees to have a charge
created for the dues of the society of which he is a member;
(iii) a declaration made under clause(i) or (ii) may be varied at any time by a member
with the consent of the society in favour of which such charge is created;
(iv) no member of an Agricultural Credit Society so long as he continues to remain
such member shall alienate the whole or any part of the property specified in the
declaration made under clause(i) or (ii);
(v) any alienation of any property specified in the declaration made under clause (i)
or (ii) by such member shall be void;
(vi) subject to the prior claim of [Government] in respect of land revenue or any
money recoverable as arrears of land revenue, there shall be a first charge in
favour of the society on the property specified in the declaration under clause (i)
or (ii) in respect of and to the extent of any debt or other outstanding demand
owing by such member to the society;
(vii) an entry regarding a charge on immovable property created by a declaration under
clause (i) or (ii) or any variation made therein under clause (iii) shall be made in the
record of rights maintained under Chapter X-A of the [Sind] Land Revenue Code,
1879, [or the relevant provisions of any other law relating to land revenue in force in
the area,] notwithstanding anything contained in the said Chapter.
Explanation–For the purposes of this section an ‘Agricultural Credit Society’ means a
resource society of which the primary object is the creation of funds to be lent to its members
and of which a majority of the members are agriculturists and of which no member is a
registered society and the liability of which is limited.]
[17-B. Expulsion of a member.— (1) A society may recommend to the Registrar to expel
from its membership a member who is a persistent defaulter of the dues of the society or who
commits any act prejudicial to the interests of the society:
Provided that the managing committee of the society shall, after affording the member an
opportunity of hearing, place the matter before the general body of the society and approval
thereof shall be communicated to the Registrar.
(2) The Registrar may expel such a member from the society after affording him an
opportunity of hearing.
(3) The Registrar shall, before passing the expulsion order, determine the amount
payable, if any, by the society to the member and may direct that the expulsion order would take
effect from the date of payment of the amount to such member or its deposit in the account of the
Registrar.
(4) The member shall cease to be member of the society from the date when the
expulsion order of the Registrar takes effect:
Provided that the provisions of this section shall not apply to a member of a housing
society who has made full payment towards the cost of land and the requisite development
charges.]
18. Votes of members.— (1) No member of any society shall have more than one vote in
its affairs, provided that in the case of an equality of votes the chairman shall have a casting
vote.
(2) A Society which has invested any part of its funds in the shares of another
society, may appoint one of its members to vote in the affairs of such other registered society.
[18-A. General body and managing committee.— (1) The powers and management of a
society shall vest in its general body consisting of all its members.
(2) A society shall have a managing committee, constituted in accordance with the
rules and the by-laws, which shall exercise such powers and functions as may be delegated to
it by the general body.
(3) Subject to any general or special order of the Provincial Government, the Registrar
may, on such terms and conditions as he may deem fit, appoint not more than two experts on the
managing committee of a society for the development and proper management of the society.
(4) The Registrar may require a society to obtain approval of its general body, in any
matter concerning the business of the society, before proceeding further in the matter.]
[[18-B]. Disqualification for being, and for voting at an election of Director, Manager or
other officer of the society.— A member of the society to which the provisions of this section
have been applied by the Provincial Government by notification in the Official Gazette shall be
disqualified for being, and for voting at an election of, a Director, Manager or other officer of
the society–
(a) if he has taken a loan from the society which has been outstanding for six
months or more after it has become payable and has not been re-paid upto the
day immediately preceding the date of the election, or
(b) if he has taken a loan from the society which is repayable by installments and the
amount of three or more installments has been outstanding for six months or more
from the date on which the amount of the last installment became payable and has
not been re-paid upto the day immediately preceding the date of the election.
Explanation–The date on which the loan or installment becomes payable is the date
specified in the bond or any other instrument in writing evidencing the loan but does not include
any extension thereof.]
19. Restrictions on transfer of share or interest.— (1) The transfer or charge of the
share or interest of a member in the capital of a society shall be subject to such conditions as
to maximum holding as may be prescribed by this Act or by the rules.
(2) A member shall not transfer any share held by him or his interest in the capital or
property of any society or any part thereof unless–
(a) he has held such share or interest for not less than one year; and
(b) the transfer or charge is made to the society or to a member of the society or to a
person whose application for membership has been accepted by the society.
[CHAPTER IV
DUTIES OF SOCIETIES]

[20. Address of societies.— (1) Every society shall have a registered office which shall be
the address of the society.
(2) A society shall not change its address without the prior approval of the Registrar:
Provided that before seeking the approval of the Registrar, the society shall inform its
members’ creditors and where applicable, the society of which it is a member, by post and also
through two national daily Newspapers, as to the proposed change of the address.
(3) The approval of the Registrar shall immediately be communicated by the society
to its members’ creditors and the society of which it is a member.]
21. Copy of Act etc., to be open to inspection.— Every society shall keep open to
inspection at all reasonable times at the registered address of the society–
(a) a copy of this Act.
(b) a copy of the rules governing such society.
(c) a copy of the by-laws of such society, and
(d) a register of its members.
22. Audit.— [(1) The Registrar shall, by himself, an auditor or a committee of auditors
appointed by him, through general or special order in this behalf, specifying the period for
completion, audit the accounts of every society once at least in a year:
Provided that no person shall audit the accounts of a society for two consecutive years.]
[(1-A) The Registrar may, by general or special order, determine the fee payable to the
auditor or the committee of the auditors, as the case may be, and the fee so determined shall be
payable by the society.]
(2) The audit under sub-section (1) shall include an examination of overdue debts, if
any, the verification of cash balance and securities, and a valuation of the assets and liabilities
of the society.
(3) The Registrar or other person auditing the accounts of any society shall have free
access to the books, accounts and vouchers of such society and shall be allowed to verify its cash
balances and securities.
The Directors, Managers, and other officers of the society shall furnish to the Registrar
or other person appointed to audit the accounts of a society all such information as to its
transactions and working as the Registrar or such person may require.
(4) The Registrar and every other person appointed to audit the accounts of a
society shall have power, when necessary–
(i) to summon at the time of his audit any officer, agent, servant or member of the
society who he has reason to believe can give valuable information in regard to any
transaction of the society or the management of its affairs, or
(ii) to require the production of any book or document relating to the affairs of any
cash or securities belonging to the society by the officer, agent, servant, or
member in possession of such book, document, cash or securities.
[22-A. Power of Registrar to exercise powers under section 50-A in the course of an
audit.— Where, in the course of an audit under section 22 it appears to the Registrar that
there exists any such ground as is specified in section 50-A, he may, of his own motion or on
the application of the person authorised by him under section 22, exercise the powers
specified in section 50-A].
[22-B. Internal audit committee.— (1) Every housing and producers’ society, in addition to the
audit of accounts under section 22, shall also get the accounts audited by an internal audit
committee comprising at least three members of the society other than the members of its
managing committee as may be appointed by the general body with their consent.
(2) The report of the internal audit committee shall be submitted by the society or the
committee to the Registrar within one month of the receipt or compilation of such report.]
[CHAPTER V
PRIVILEGES OF SOCIETIES]

23. Societies to be bodies corporate.— The registration of a society shall render it a body
corporate by the name under which it is registered, with perpetual succession and a common
seal, and with power to hold property, to enter into contracts, to institute, and defend suits and
other legal proceedings and to do all things necessary for the purposes of its constitution.
24. Prior claim of society.— Subject to any prior claim of [Government] in respect of land
revenue or any money recoverable as land revenue or of a landlord in respect of rent or any
money recoverable as rent,
(a) any debt or outstanding demand owing to a society by any member or past
member [or, in the case of a society authorised under sub-section (1) of section
34 to make loans to non-members, by a non-member] shall be a first charge (i)
upon crops or other agricultural produce raised in whole or in part with a loan
taken from the society by [such member, past member or non-member], and (ii)
upon any cattle, fodder for cattle, agricultural or industrial implements or
machinery, or raw materials for manufacture or workshop, godown or place of
business, supplied to or purchased by [such member, past member or nonmember]
in whole or in part from any loan whether in money or goods given, him
by the society:
Provided that nothing contained in this clause shall effect the claims of any bonafide
purchaser or transferee for value without notice of any such crops or other agricultural
produce, cattle, fodder for cattle or raw materials for manufacture or workshops, or agricultural
or industrial implements; and
(b) any outstanding demands or dues payable to a housing society by any member or
past member in respect of rent, shares, loans, or purchase money or any other
rights or amounts payable to such society shall be a first charge upon his interest in
the immovable property of the society.
25. Charge and set-off in respect of shares or interest of member.— A society shall
have a charge upon the share or interest in the capital and on the deposits of a member or
past member and upon any dividend, bonus or profits payable to a member or past member in
respect of any debt due from such member or past member to the society, and may set-off any
sum credited or payable to a member or past member in or towards payment of any such debt.
26. Shares or interest not liable to attachment.— Subject to the Provisions of section 25, the
share or interest of a member in the capital of a society or in any provident fund established under
section 41 of this Act shall not be liable to attachment or sale under any decree or order of a Court of
justice in respect of any debt or liability incurred by such member, and [neither the Official Assignee
under the Insolvency (Karachi Division [* * *]) Act, 1909 nor a receiver under the Provincial
Insolvency Act, 1920, shall] be entitled to or have any claim on such share or interest.
27. Transfer of interest on death of member.— (1) On the death of a member of a society
such society may within a period of one year from the death of such member transfer the share
or interest of the deceased member to a person or persons nominated in accordance with the
by-laws of the society, if duly admitted a member of the Society, in accordance with the rules or
the by-laws of the society, or, if there is no person so nominated, to such person as may appear
to the Committee to be the heir or legal representative of the deceased member if duly elected a
member of the society, or may pay to such nominee, heir or legal representative, as the case
may be, a sum representing the value of such member’s share or interest as ascertained in
accordance with the rules or by-laws:
Provided that such nominee, heir or legal representative, as the case may be, may
require that payment shall be made by the society within one year from the death of the
member of the value of the share or interest of such member ascertained as aforesaid.
[Provided further that the nominee, heir or legal representative shall distribute the
amount received by him among the heirs of the deceased.]
(2) A society shall subject to the provisions of section 25 and unless prevented by an
order of a competent court pay to such nominee, heir or legal representative, as the case may
be, all other moneys due to the deceased member from the society.
(3) All transfers and payments made by a society in accordance with the provisions
of this section shall be valid and effectual against any demand made upon the society by any
other person.
28. Liability of past member.— The liability of a past member for the debts of a society as
they existed at the time when he ceases to be a member, shall continue for a period of two
years from the date of his ceasing to be a member.
[29. Liability of the estate of deceased member.— The estate of a deceased member
shall be liable for the debts of the society, at the time of his death, for a period of one year.]
30. Register of members.— Any register or list of members or shares kept by any society
shall be prima facie evidence of any of the following particulars entered therein:-
(a) the date at which the name of any person was entered in such register or list as a
member;
(b) the date at which any such person ceased to be a member.
31. Admissibility of copy of entry as evidence.— (1) A copy of any entry in any book,
register or list regularly kept in the course of business in the possession of a society shall, if
duly certified in such manner as may be prescribed by the rules, be admissible in evidence of
the existence of the entry and shall be admitted as evidence of the matters and transactions
therein recorded in every case where, and to the same extent to which the original entry would,
if produced, have been admissible to prove such matters.
(2) In the case of such societies as [the Provincial Government] by general or
special order may direct no officer of a society shall in any legal proceedings to which the
society is not a party be compelled to produce any of the society’s books, the contents of
which can be proved under sub-section (1), or to appear as a witness to prove the matters,
transactions and accounts therein recorded, unless by order of the Court or a Judge made for
special cause.
32. Exemption from compulsory registration of instruments relating to shares [etc] of
society.— Nothing in section 17, sub-section (1), clauses (b) and (c), of the [* * *]Registration
Act, 1908, shall apply to–
(1) 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
(2) any debenture [participation term certificate [term] finance certificate, musharika
certificate, modaraba certificate and such other instruments as may be approved by the State
Bank of Pakistan], issued by any 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 instruments]; or
(3) any endorsement upon or transfer of any debenture [participation term certificate,
term finance certificate, musharika certificate, modaraba certificate, and such other
instruments as may be approved by the State Bank of Pakistan], issued by any society.
33. Power to exempt from income-tax, stamp-duty, registration and court fees.— (1)
The [Central Government], by notification in the [Official Gazette], may, in the case of any
society or class of societies, remit the income-tax or super-tax payable in respect of the profits
of the society, or of the dividends or other payment received by the members of the society on
account of profits or in respect of interest [or return] on securities held by the society.
(2) The [Provincial Government] by notification in the [Official Gazette], may, in the
case of any society or class of societies, remit–
(a) the stamp-duty with which, under any law for the time being in force, instruments
executed by or on behalf of a society or by an officer or member and relating to
the business of the society, or any class of such instruments [or security bonds
executed by or on behalf of officers or servants of a society] or awards of the
Registrar or arbitrators under this Act are respectively chargeable; and
(b) any fee payable under the law of registration and of court fees for the time being
in force.[* * *]
33-A. Provincial Government may give loans or guarantee interest [or return].— With
such safeguards as may be prescribed by rules in this behalf [the Provincial Government] may
give loans to societies or guarantee the payment of [the principal of debentures issued by them
or of interest [or return] thereon or both].
[CHAPTER VI
PROPERTY AND FUNDS OF SOCIETIES]

34. Restrictions on loans.— (1) Except with the general or special sanction of the
Registrar [and subject to such terms and conditions as he may impose] a society shall not
make a loan to any person other than a member.
(2) Save with the sanction of the Registrar, a society with unlimited liability shall not lend
money on the security of movable property.
(3) [The Provincial Government] may, by general or special order, prohibit or restrict
the lending of money on mortgage of immovable property by any society or class of societies.
[(4) Where the Registrar has accorded sanction to a financing bank under sub-section
(1) to make loans to non-members, a society which is a member of such financing bank may,
subject to the terms of the sanction and such other terms and conditions as the Registrar may
impose, act as an agent of the financing bank and as such agent carry out, on or without the
payment of any commission, all or any transactions connected with any loan made or to be made
by the financing bank].
35. Restrictions on borrowing [and donations].— A society shall receive deposits [,
donations, grants] and loans from persons who are not members only to such extent and
under such conditions as may be prescribed by the rules or by the bye-laws of the society.
36. Restrictions on other transactions with non-members.— Consumers’, producers’
and housing societies may to the extent permitted by their by-laws trade with persons who are
not members, but the transactions of a resource society with persons other than members
except as provided under section 34 or 35 shall be subject to such prohibitions and
restrictions, if any, as [the Provincial Government] may by rules prescribe.
37. Investment of funds.— A society may invest or deposit its funds–
(a) in the Government Saving Bank; or
(b) in any of the securities specified in section 20 of the [* * *] Trusts Act, 1882; or
(c) in the shares or on the security of any other society, provided that no such
investment shall be made in the shares of any society other than one with limited
liability; or
(d) with any bank or person carrying on the business of banking approved for this
purpose by the Registrar; or
(e) in any other mode permitted by the rules.
[38. Restriction on dividend.— (1) No society, other than housing, banking or producers’
society, shall pay a dividend to its members at a rate exceeding ten percent of its net profits.
(2) A housing, banking or producers’ society shall pay a dividend to its members at a
rate not exceeding twenty percent of its net profits.]
39. Reserve Fund.— (1) Every society which does or can derive a profit from its
transactions shall maintain a reserve fund.
(2) In the case of a resource or producers’ society at least 1/4th of the net profits of
the society each year shall be carried to the reserve fund and in the case of any other society
at least 1/10th of the net profits of the society each year shall be carried to the reserve fund,
and such reserve fund may be used in the business of the society or may be invested, subject
to the provisions of section 37, as [the Provincial Government] may by general or special order
direct, or may, with the previous sanction of [the Provincial Government] be used in part for
some public purpose likely to promote the objects of this Act or for some purposes of provincial
or local interest.
40. Restriction on distribution of profits.— Subject to the provisions of section 38 the
balance of the profits of a society after making the prescribed provisions for the reserve fund may,
together with any available profits of past years be distributed among its members, and in the case
of consumers’ and producers’ societies, also among persons who are not members, to the extent
and under the conditions prescribed by the rules or by the by-laws of such societies, provided
that:-
(a) in the case of a resource society on a basis of unlimited liability in which the
members do not hold shares, no distribution of profits shall be made without the
general or special order of [the Provincial Government] in this behalf; and
(b) in the case of a resource society on a basis of unlimited liability in which the
members hold shares, no such distribution of profits shall be made until 10 years
from the date of registration of the society have elapsed.
41. Provident fund.— Any society may establish a provident fund for its members out of
contributions from such members in accordance with by-laws made by the society in this
behalf and may contribute to such provident fund from its net profits, after the prescribed
payments have been made to the reserve fund, provided that such provident fund shall not be
used in the business of the society but shall be invested under the provisions of section 37;
and provided further, that no part of such provident fund shall be considered as an asset of the
society.
42. Contribution to charitable purpose.— With the approval of the [Registrar] and after
the payments prescribed by sub-section (2) of section 39 have been made to the reserve fund,
any society may–
(a) set aside a sum not exceeding 20 per cent of its net profits, and
(b) utilize from time to time the whole of such sum in contributing to any public or cooperative
purpose, or to a charitable purpose as defined in section 2 of the
Charitable Endowments Act, 1890.
[CHAPTER VII
INSPECTION OF AFFAIRS]

43. Inquiry by Registrar.— (1) The Registrar may of his own motion by himself or by a
person duly authorised by him in writing in this behalf hold an inquiry into the constitution,
working and financial condition of a society.
(2) The Registrar shall hold such an inquiry as is contemplated in sub-section (1) of
this section–
(a) on the requisition of a society, duly authorised by rules made in this behalf to
make such requisition, in respect of one of its members, such member being
itself a society,
(b) on the application of a majority of the Committee of the society,
(c) on the application of 1/3rd of the members of the society.
(3) All officers and members of the society whose affairs are investigated shall
furnish such information in their possession in regard to the affairs of the society as the
Registrar or the person authorized by the Registrar may require.
(4) The result of any inquiry under this section shall be communicated to the society
whose affairs have been investigated.
44. Inspection of books of indebted society.— (1) The Registrar may, on the application
of a creditor of a society inspect or direct some person authorized by him by order in writing in
this behalf to inspect the books of the society:
Provided that–
(a) the applicant satisfies the Registrar that the debt is a sum then due, and that he
has demanded payment thereof and has not received satisfaction within a
reasonable time; and
(b) the applicant deposits with the Registrar such sum as security for the costs of the
proposed inspection as the Registrar may require.
(2) The Registrar shall communicate the result of any such inspection to the creditor.
[44-A. Inspection of books and properties.— The Registrar, or any of his authorized
representative, shall have access and right to inspect the books, accounts, cash, documents,
properties and securities of a society and every employee, past or present, of the society shall
produce the same and furnish such information with regard to the transactions and working of
the society as the person making such inspection may require.]
[44-B. Power of Registrar to exercise powers under section 50-A in the course of an
inquiry or inspection.— Where, in the course of any inquiry under section 43 or an inspection
under section 44 or section 44-A it appears to the Registrar that there exists any such ground as
is specified in section 50-A, he may, of his own motion or on the application of the person
authorised by him under section 43 or section 44 or section 44-A, exercise the powers specified
in section 50-A].
[44-C. Power to remove officers.— (1) An officer of a society, by whatever name called may
be removed by the Registrar, if, on an enquiry, he is satisfied that the said officer–
(i) acts in a manner prejudicial to the interest of the society or its members; or
(ii) has incurred any of the disqualifications or has ceased to possess any of the
qualifications for being an officer provided by the Act, rules or bye-laws; or
(iii) has committed an act in respect of which the Registrar is empowered to take
action under section 50-A.
(2) An order under sub-section (1) shall not be passed without giving to the concerned
officer a reasonable opportunity of being heard.
(3) On being removed, the officer shall not perform any functions as such in relation
to the society.
(4) An officer aggrieved by an order under sub-section (1) may, within a period of
seven days from the date of the order of his removal, prefer an appeal to such Appellate
Authority as may be constituted by the Government and the decision of the said Authority shall
be final:
Provided that the provisions of this section shall not apply to the Punjab Provincial
Cooperative Bank Ltd.
[(5) The Registrar may suspend, for a period not exceeding three months, a member
of the managing committee of a society, against whom an inquiry is pending under this Act or
there are reasons to believe that any such member has committed any irregularity, illegality,
breach of trust or act prejudicial to the interests of the society.]
44-D. Power of Registrar to give directions.— (1) Where the Registrar is satisfied that in
the public interest or to prevent the affairs of any society from being conducted in a manner
detrimental to the interest of its members or depositors or the society or to secure the proper
management of any society generally, it is necessary, to issue directions to the societies
generally or to any society in particular, it may issue necessary directions, and the societies or
as the case may be the society shall be bound to comply with such directions.
(2) The Registrar may on a representation made to him or on his own motion modify
or cancel any direction issued under sub-section (1) and in so modifying or cancelling any
direction impose such conditions as he may think fit subject to which the modification or
cancellation shall have effect.
44-E. Special measures.— (1) If it appears to the Registrar that in the interest of the
members of a society or its depositors it is necessary that the moneys received and other
assets of the society, whether held in the name of that society or any other person, are
protected and preserved, the Registrar or any other person authorised by him, may without
prejudice to any other action or proceedings which may be taken against the society under any
law for the time being in force:
(i) enter and search any premises and seize books of account or other documents
or records;
(ii) take in his custody all moneys, cash, securities, title deeds, properties, whether
movable or immovable, belonging to such society including those being held on
behalf of or in the name of any officer, employee or agent of the society,
beneficiary or transferee of such society or other person or their dependents.
(iii) direct any bank, financial institution or person to freeze all moneys deposited with
it or him on behalf of the society or of any officer, employee, agent, beneficiary or
transferee of such society;
(iv) take all necessary steps and measures for identifying assets and property of the
society and for realization, protection and preservation thereof;
(v) restrain any society or officer, employee, agent, beneficiary or transferee of such
society or any person deriving or claiming title through any of them from alienating,
transferring, selling, assigning, disposing of or parting with possession of any
property, movable or immovable, or deriving any benefit, rent or income therefrom;
(vi) make such order for realization, protection and preservation of deposits of money
and other assets and property of the society as he may deem fit.
(2) The order passed under sub-section (1) may at any time be withdrawn and shall
not remain in force for more than one year.]
45. Costs of inquiry.— Where an inquiry is held under section 43 or an inspection is made
under section 44 the Registrar may apportion the costs, or such part of the costs, as he may
think right, between the society, the members or creditors demanding the inquiry or inspection,
the officers or former officers, and the members or past members of the society. [Costs may
also be awarded by the Registrar to the financing bank in the case of inspection under section
44-A of the books of any society other than an Agricultural Credit Society the liability of which
is unlimited]:
Provided that–
(a) no order of apportionment [or award] of the costs shall be made under this
section unless the society or persons liable to pay the costs thereunder has or
have been heard or has or have had a reasonable opportunity of being heard;
(b) the Registrar shall state in writing under his own hand the grounds on which the
costs are apportioned [or awarded].
[Explanation–For the purposes of this section an Agricultural Credit Society means a
resource society of which the primary object is the creation of funds to be lent to its members
and of which a majority of the members are agriculturists and of which no member is a
registered society and the liability of which is unlimited.]
[46. Recovery of costs.— Any sum awarded by way of costs under section 45, may be
recovered, on the application of the Registrar, by a Magistrate having jurisdiction in the place
where the person from whom the money is claimable actually and voluntarily resides, or
carries on business, or by an officer authorized in this behalf by the Government, by distress
and sale of any movable property belonging to such person, within the limits of the jurisdiction
of such Magistrate or any such officer.]
[CHAPTER VIII
LIQUIDATION AND ARBITRATION]

47. Winding up.— If the Registrar, after an inquiry has been held under section 43 or after
an inspection has been made under section 44 [or section 44-A] or on receipt of an application
made by [two-third] of the members of a society present at a special general meeting, called
for the purpose or of his own motion, in the case of a society that has not commenced working,
or has ceased working [* * *], is of opinion that the society ought to be wound up he may issue
an order directing it to be wound up, and the when necessary, may appoint a liquidator for the
purpose and fix his remuneration.
[48. Society may be wound up if membership is reduced.— (1) The Registrar may, by
order in writing, direct a society to be wound up, if at any time it is proved to his satisfaction
that the membership of the society has been reduced to less than the requisite minimum
number of members and the society, despite a reasonable opportunity, has failed to raise the
number of members to be in accordance with the provisions of this Act.
(2) All existing societies shall, within two years of the commencement of this Act,
raise their membership to be in accordance with the provisions of this Act, failing which the
Registrar may wind up such a society after affording it an opportunity of being heard.]
[48-A.Winding up of housing society.— If a housing society fails to complete development
and allotment of plots in accordance with its development schedule, the Registrar may order
the winding up of the society after affording it an opportunity of hearing.]
49. Effect of cancellation of registration.— When the affairs of a society for which a
liquidator has been appointed under section 47 have been wound up, or, where no liquidator
has been appointed, after two months from the date of an order under section 47, or after
confirmation of such order in appeal, the Registrar shall make an order cancelling the
registration of the society, and the society shall be deemed to be dissolved from the date of
such order.
50. Power of a liquidator.— A liquidator appointed under section 47 shall have power with
the sanction of the Registrar to do all or any of the following things:-
(a) pay any class or classes of creditors in full;
(b) make any compromise or arrangement with creditors or persons claiming to be
creditors or having or alleging themselves to have any claim, present or future,
whereby the society may be rendered liable;
(c) to compromise all calls or liabilities to calls and debts, 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 and take any security for the
discharge of any such call, liability, debt, or claim and give a complete discharge
in respect thereof;
(d) from time to time to determine the contribution 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 officer to the assets of the
society, such contribution including debts due from such members or persons;
(e) to institute and defend suits and other legal proceedings on behalf of the society
in the name of his office;
(f) to issue requisitions under section 59 upon the Collector for the recovery as arrears
of land revenue of any sum ordered by him to be recovered as dues from members,
or as a contribution to the assets of the society or to the cost of liquidation;
(g) to get disputes referred to arbitration;
(h) to investigate all claims against the society and subject to the provisions of this Act
as to decide questions of priority arising out of such claims, and to pay rateably
according to the amount of such debts, the surplus if any being applied in payment
of interest [or return] from the date of liquidation at a rate to be fixed by the Registrar
and not exceeding the contract rate;
(i) to determine by what persons and in what proportion the cost of the liquidation
shall be borne;
(j) 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;
(k) to fix the time or times within which creditors shall prove their debts and claims or
be included for the benefit of any distribution made before those debts or claims
are proved;
(l) to carry on the business of the society so far as may be necessary for the
beneficial winding up of the same:
Provided that no liquidator shall determine the contribution, debt or dues to be
recovered from a past member or the representative of a deceased member unless
opportunity has been given to such past member or to such representative to answer the
claim:
[Provided further that all debts due to [Government] shall have priority over all debts
which are not secured by a mortgage, charge or lien on the property of the society or any part
thereof but nothing herein contained shall affect the provisions of sections 137 and 138 of the
[Sind] Land Revenue Code, 1879 [, or any other law relating to land revenue in force in the
area].
50-A. Power of Registrar to assess damage against delinquent promoters, etc.— (1) Where
in the course of the winding up of a society it appears that any person who has taken part in the
organization or management of the society or any past or present chairman, secretary, member of
the managing committee or officer of the society has misapplied or retained or become liable or
accountable for any money or property of the society or has been guilty of misfeasance or breach
of trust in relation to the society [or, where the society is acting under sub-section (4) of section 34
as agent of the financing bank, has made any payment contrary to the instructions of the financing
bank] the Registrar may, on the application of the liquidator or of any creditor or contributory,
examine into the conduct of such person and make an order requiring him to repay or restore the
money or property or any part thereof respectively with interest [or return] at such rate as the
Registrar thinks just or to contribute such sum to the assets of the society [or of the financing bank]
by way of compensation in regard to the misapplication, retainer, misfeasance or breach of trust
as the Registrar thinks just.
(2) This section shall apply notwithstanding that the act is one for which the offender
may be criminally responsible.
51. Bar of suit in winding up and dissolution matters.— Save in so far as is expressly
provided in this Act no civil court shall take cognizance of any matter [arising out of any
proceedings under Chapter VIII-A or] connected with the winding up or dissolution of a society
under this Act and when a winding up order has been made no suit or other legal proceeding shall
lie or be proceeded with against the society except by leave of the Registrar and subject to such
terms as he may impose.
52. Disposal of surplus assets.— After all the liabilities including the paid-up share capital
of a cancelled society have been met, the surplus assets shall not be divided amongst its
members but they shall be devoted to any object or objects described in the by-laws of the
society and when no object is so described to any object of public utility determined by the
general meeting of the society and approved by the Registrar or they may in consultation with
them either be assigned by the Registrar in whole or in part to any or all of the following:-
(a) an object of public utility of local or communal interest,
(b) a charitable purpose as defined in section 2 of the Charitable Endowments Act,
1890.
(c) the [[* * *] Provincial Co-operative Institute], or may be placed on deposit with [the
Provincial Co-operative Bank] until such time as a new society with similar
conditions is registered when with the consent of the registrar such surplus may be
credited to the reserve fund of such new society.
53. Surplus assets of housing society.— Where the society directed to be wound up is a
housing society, its assets, both movable and immovable, shall for the purposes of winding up
or dissolution of the society jointly vest, subject to all rights and equities, in three persons of
whom one shall be nominated by the Registrar, one shall be nominated by the said society in a
general meeting specifically called for the purpose and one shall be nominated by the [[* * *]
Provincial Co-operative Institute]. Such persons shall, for the purpose of winding up or
dissolution of the society be Joint Liquidators and shall have all the powers of a liquidator
under this Act. They may, with the sanction of the Registrar, continue the working of the
society, or may, subject to his sanction and in consultation with the members of the society in a
general meeting, reconstruct the society or may sell off the premises of the society to the best
advantage of all interests concerned, and when all the liabilities of the society are met, may
dispose of the surplus assets of the society, if any, as provided in section 52.
54. Arbitration.— [If any dispute touching the business of a society (other than a dispute
regarding disciplinary action taken by the society or its committee against a paid servant of the
society) arises–
(a) between members or past members of the society or persons claiming through a
member or past member, or
(b) between members or past members or persons so claiming and any past or
present officer, agent or servant of the society, or
(c) between the society or its committee, and any past or present member of the
society, or
(d) between the society or its committee, and any past or present officer, agent or
servant of the society, or a surety of such officer, agent or servant, whether such
surety is or is not a member of the society, [or].
[(e) between a financing bank authorised under sub-section (1) of section 34 and a
person who is not a member of a society],
it shall be referred to the Registrar for decision by himself or his nominee, or if either of
the parties so desires, to arbitration of three arbitrators who shall be the Registrar or his
nominee and two persons of whom one shall be nominated by each of the parties concerned.]
A dispute shall include [the question whether a person is or was a member of a society
and also] claims by a society for debts or demands due to it from [a member, past member or
non-member] or the heirs or assets of a past member [or non-member] whether such debts or
demands be admitted or not:
Provided that if the question at issue between a society and a claimant, or between
different claimants, is one involving complicated questions of law and fact, the Registrar may, if
he thinks fit, suspend proceeding, in the matter until the question has been tried by a regular
suit instituted by one of the parties or by the society. If no such suit is instituted within six
months of the Registrar’s order suspending proceedings, the Registrar shall take action as laid
down in paragraph 1 of this section.
[54-A. Registrar’s power to set aside the award and order the dispute to be referred back
to arbitration.— [(1) In the case of any award made by the arbitrators under section 54, the
Registrar, if he is not one of such arbitrators, may of his own motion or on the application of
any of the parties to the award, by an order in writing recording reasons therefore,–
(a) modify or correct the award (i) where it appears that a part of the award is upon a
matter not referred to arbitration and such part can be separated from the other part
and does not affect the decision on the matter referred; or (ii) Where the award is
imperfect in form or contains any obvious error which can be amended without
affecting such decision; or (iii) where the award contains a clerical mistake or an error
arising from an accidental slip or omission; or
(b) remit the award or any matter referred to arbitration to the arbitrators for
reconsideration–
(i) where the award has left undetermined any of the matters referred to
arbitration or where it determines any matter not referred to arbitration and
such matter cannot be separated without affecting the determination of the
matters referred, or
(ii) where the award is so indefinite as to be incapable of execution, or
(c) set aside the award and order that the dispute shall be referred to arbitration in
the manner provided in the said section:
Provided that no order referred to in clauses (a) to (c) shall be made after the issue of a
certificate under section 59 for the execution of the award:
Provided further that no order under clause (c) shall be made unless the Registrar is of
opinion that–
(i) an objection to the legality of the award is apparent on the face of it, or
(ii) the award has been vitiated in consequence of corruption or misconduct
on the part of the arbitrators, or
(iii) the award is in any way perverse.]
(2) In making an order under [clause (c) of] sub-section (1), the Registrar may direct
that all or any of the arbitrators who made the award shall not act again as arbitrators for
deciding the dispute.
(3) Where a dispute is referred back to arbitration under [clause (c) of] sub-section
(1), the arbitrators shall make a fresh award within such time as may be fixed by the Registrar.
If the arbitrators fail to make a fresh award within the time so fixed, the Registrar or his
nominee shall decide the dispute.]
55. Attachment before award.— Where a dispute has been referred to the Registrar under
section 54 or to arbitration under clause (g) of section 50, the Registrar or his nominee or the
arbitrators, as the case may be, if satisfied on inquiry or otherwise, that a party to such
arbitration with intent to delay or obstruct the execution of any award that may be made,–
(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, may unless adequate security is furnished direct the conditional
attachment of the said property; and such attachment shall have the same effect
as if made by a competent Civil Court.
56. Appeal against award of arbitrator.— Any party aggrieved by any decision of the
Registrar’s nominee made under section 54 [or sub-section (3) of section 54-A] or an order
passed under section 55 by the Registrar’s nominee or arbitrators may within one month of the
date of the award or order appeal to the Registrar and the Registrar shall decide the appeal [* *
*].
[57. Finality of awards in certain orders.— The award of arbitrators or a decision by the
Registrar or his nominee under section 54 or section 54-A or an order passed in appeal by the
Registrar under section 56 shall, subject to the provisions of sections 64 and 64-A, be final and
conclusive and shall not be liable to be called in question in any civil or revenue court.]
58. Powers to enforce attendance.— Wherever in this Act it is provided that the Registrar
or person duly authorized by general or special order in writing by the Registrar in this behalf
shall hold an inquiry under section 43 or shall make an inspection under section 44 or shall
wind up a society or shall arbitrate, such Registrar, or person authorized, as the case may be,
shall have the power to summon and enforce the attendance of witnesses including the parties
interested or any of them and to compel them to give evidence, and to compel the production
of documents by the same means and as far as possible in the same manner as is provided in
the case of a civil court by the Code of Civil Procedure, 1908.
59. Money how recovered.— (1) [Every order passed by a liquidator under section 50, or by the
Registrar under section 50-A, or by the Registrar or his nominee or arbitrators on disputes referred
to him or them under clause (g) of section 50 or under section 54 or under sub-section (3) of
section 54-A, every order passed in appeal, under section 56, every order passed by the
Provincial Government in appeal against orders under sections 50, 50-A, 54 or sub-section (3) of
section 54-A and every order passed under section 64-A shall, if not carried out, [* * *]:
[(a) on a certificate signed by the Registrar or a liquidator, 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) be executed according to the law for the time being in force for the recovery of
arrears of land revenue; provided that any application for recovery of the amount
in such a manner shall be made to the Collector and shall be accompanied by a
certificate signed by the Registrar or by an officer subordinate to the Registrar to
whom the said power has been delegated by the Registrar.]
[(2) Powers of Registrar to recover certain sums by attachment and sale of
property.— The Registrar or any person subordinate to him empowered by the Registrar in this
behalf may, subject to such rules as may be prescribed by the Provincial Government and without
prejudice to any other mode of recovery provided by or under this Act, recover by exercising
powers of the Collector under the [Sind] Land Revenue Code, 1879, [or the relevant provisions of
any other law relating to land revenue in force in the area], and the Rules thereunder–
(a) any amount due under a decree or order of a Civil Court, a decision or an award
of the Registrar, obtained by a registered society including a financing bank or
liquidator; or
(b) any sum awarded by way of costs under sections 44-B and 45; or
(c) damages assessed in sections 22-A and 50-A; or
(d) penalty provided for in sections 61 and 62; or
(e) sums due to [Government] under section 65, together with the interest, [or
return], if any, due on such amount or sum and the cost of process, by the
attachment and sale or by the sale without attachment of property of the person
against whom such decree, decision, award or order has been obtained or
passed.
(3) Registrar or person empowered by him to be a Civil Court for certain
purposes.— The Registrar or any person empowered by him in that behalf shall be deemed
when exercising any powers under this Act for the recovery of any amount by the attachment
and sale or by the sale without attachment of any property, or when passing any orders on any
application made to him for such recovery or to take some step-in-aid of such recovery to be a
Civil Court for the purposes of Article 182 of the First Schedule to the Limitation Act, 1908.]
[(4) The Government or the Registrar may, on an application, direct that an order or
award, passed under this Act, shall be executed in accordance with the provisions of the Civil
Procedure Code, 1908 (Act V of 1908) or any other law for the time being in force.
(5) The Registrar or any other officer subordinate to him, duly authorized by the
Government to execute the orders or the awards, shall be deemed to be a civil court and shall
have the powers vested in an executing court under the Civil Procedure Code 1908 (Act V of
1908).]
[59-A. Transfer of property which cannot be sold.— (1) When in execution of an order
sought to be executed under section 59, any property cannot be sold for want of buyers, if
such property is in the occupancy of the defaulter or of some person on his behalf or of some
person claiming under a title created by the defaulter subsequently to the issue of the
certificate of the Registrar, Liquidator or Assistant Registrar under clause (a) or (b) of subsection
(1), the Court or the Collector, as the case may be may, with the previous consent of
the Registrar, direct that the said property or any portion thereof shall be transferred to the
society which has applied for the execution of the said order and that the said property or the
portion shall be delivered to the society in the prescribed manner.
(2) Subject to such rules as may be made in this behalf and to any right,
encumbrances, charges or equities lawfully subsisting in favour of any other person, such property
or portion thereof shall be held by the said society on such terms and conditions as may be agreed
upon between the Court or the Collector, as the case may be, and the said society:
Provided that any private transfer or delivery of or encumbrance or charge on the
property made or created after the issue of the certificate of the Registrar, Liquidator or
Assistant Registrar, as the case may be, under section 59 shall be null and void as against the
said society].
[CHAPTER VIII-A
DISTRAINT

59-B. Definitions.— In this Chapter, unless there is anything repugnant in the subject or
context–
(a) “Collector” includes an officer appointed by the Provincial Government to
discharge any of the functions of the Collector under this Chapter;
(b) “defaulter” means a person (including his legal representatives if he is dead) from
whom any such debt or outstanding demand as is referred to in section 59-C is
recoverable;
(c) words and expressions used herein and not hereinbefore defined shall have the
meanings respectively assigned to them by the [Sind] Land Revenue Code, 1879
[or any other law relating to land revenue in force in the area].
59-C. Cases in which application for distraint may be made.— Where any debt or
outstanding demand is due to a society from any member or past member or is due to a
society which is authorised by the Registrar under sub-section (1) of section 34 to make loan
to non-members, from any person who is not a member of a society, the society may, in
addition to any other remedy to which it is entitled by law, present an application to the
Registrar requesting him to recover the debt or outstanding demand by distraining, while in the
possession of the defaulter any crop or other produce belonging to him, whether the same is
growing or is ungathered or has been reaped or gathered.
59-D. Form of application.— (1) Every application under the last foregoing section shall
specify–
(a) particulars of the land on which the crop or produce is or has been grown;
(b) the name of the defaulter;
(c) a detailed account of the debts and outstanding demands due to the society;
(d) the nature and approximate value of the crop or produce to be distrained;
(e) if the crop of produce is growing or is ungathered, the time at which it is likely to
be fit to be reaped or gathered; and
(f) if the crop or produce has been reaped or gathered, the place where it is kept or
such other particulars as may suffice for its identification.
(2) The application shall be signed and verified in the manner prescribed by the
Code of Civil Procedure, 1908, for the signing and verification of plaints.
59-E. Procedure on receipt of application.— (1) A society shall at the time of making an
application under section 59-C, file before the Registrar such documentary evidence, if any, as it
may consider necessary for the purpose of proving the statements made in the application.
(2) The Registrar may, after taking such evidence as he thinks fit, admit the
application or reject it:
Provided that the person against whom the application is made shall be given a
reasonable opportunity of being heard.
(3) Where the Registrar does not at once admit or reject the application, he may
make an order prohibiting removal of the crop or other produce specified in the application,
pending a final decision on the application.
(4) Where an order for distraining any crop or produce is made under this section a
considerable time before the crop or produce is likely to be fit to be reaped or gathered, the
Registrar may suspend the execution of the order for such time as he thinks fit and may make
a further order prohibiting the removal of such crop or produce pending the execution of the
order of distraint.
(5) An order under sub-section (3) or sub-section (4) shall be served and published
in such manner as may be prescribed by rules.
(6) Any person who shall disobey any order made under sub-section (4) prohibiting
the removal of any crop or produce pending the execution of the order of distraint, after the
same has been published or served upon him, or who shall, within the meaning of the
[Pakistan] Penal Code, abet the disobedience of any such order, shall be liable, on conviction
after a summary enquiry by the Collector, to a fine not exceeding double the amount due to the
society for the recovery of which it is proposed to make the distraint. Such fine shall be
recovered as an arrear of land revenue.
59-F. Execution of order for distraint.— (1) If the application is admitted under the last
foregoing section and an order for distraining any crop or produce is made, the Registrar shall
send to the Collector for execution a copy of the order together with such particulars as may be
prescribed by rules.
(2) Upon receipt of a copy of the order referred to in sub-section (1) the Collector
shall depute an officer to distrain the crop or produce specified therein or such portion thereof
as the Collector thinks fit and the officer so deputed shall at once proceed to the place where
the crop or produce is or is kept, and distrain the same by taking charge of it himself or by
placing it in the charge of some other person appointed by him in this behalf. The distraining
officer shall publish a notification of the distraint in the manner prescribed by rules.
(3) Any crop or produce which from its nature does not admit of being stored shall
not be distrained at any time less than twenty days before the time at which it is likely to be fit
to be reaped or gathered.
59-G. Service of notice of demand and the grounds of distraint.— (1) The distraining
officer shall, at the time of making the distraint serve on the defaulter–
(a) a notice of demand for the amount due and the costs incurred in making the
distraint (herein after called the demand amount); and
(b) a statement of the grounds on which the distraint is made.
(2) The notice of demand and the statement shall be served in such manner as may
be prescribed by rules.
59.H. Right to reap, etc., produce.— (1) Subject to such conditions as the Collector may
impose in this behalf either in the order of distraint or in any subsequent order, the defaulter may
tend, reap, gather or store the crop or produce and do any other act necessary for maturing or
preserving it; and if the defaulter fails to do all or any of such acts, the distraining officer may
appoint a person to do all or any of them, and the costs incurred by the distraining officer for this
purpose shall be recoverable from the defaulter as if they were included in the costs of distraint.
(2) The crop or produce reaped or gathered by defaulter shall remain in charge of
the distraining officer or some other person appointed by him in this behalf.
59.I. Sale proclamation to be issued unless demand is satisfied.— (1) Unless the
demand amount is immediately paid, the distraining officer shall issue a proclamation in [the
local language of the area] of the intended sale specifying the particulars of the property
distrained and the demand amount for which it is distrained and shall further notify that he will,
at a place and on a day specified, not being less than three or more than seven days from the
date of the distraint, sell the distrained property by public auction:
Provided that when the crop or other produce distrained is capable of being stored but
has not been stored, the day of the sale shall be so fixed as to allow of its being stored before
the sale.
(2) Such proclamation shall be made by beat of drum in the village in which the
distrained property was seized and a copy of the proclamation shall be affixed in some public
place in the village and in the Mukhtiarkar’s office.
59.J. Place of sale.— The sale shall be held–
(a) in the case of a growing crop on or near the land on which such crop has been
grown, or
(b) if the crop or produce has been reaped or gathered, at or near the place where it
is kept:
Provided that the distraining officer may direct the sale to be held at the nearest place of
public resort, if he is of opinion that the crop or produce is thereby likely to sell to greater
advantage.
59.K. Provisions relating to growing crops.— (1) Where the crop is growing one and from
its nature admits of being stored, the sale shall not be held until the crop is reaped or gathered
and is ready for storing.
(2) Where the crop from its nature does not admit of being stored, it may be sold
before it is reaped or gathered, and the purchaser shall be entitled to enter on the land by
himself or by any other person appointed by him in this behalf and to do all acts necessary for
the purpose of tending, reaping or gathering the crop.
59.L. Manner of sale.— The distrained property shall be sold by public auction in one or
more lots as the officer holding the sale may determine; and if the demand amount is realised
by the sale of a portion of the property, the order of distraint shall not be executed with respect
to the remainder.
59.M. Postponement of sale.— If, on the distrained property being put up for sale, a fair
price, in the opinion of the officer holding the sale, is not offered for it, and if the owner of the
property or a person authorised to act on his behalf applies to have the sale postponed to the
next day, the sale shall be postponed until that date and shall then be completed whatever
may be the price offered for the property.
59.N. Payment of purchase money.— (1) The price of each lot shall be paid at the time of
sale or as soon thereafter as the officer holding the sale directs, and in default of such
payment the property shall forthwith be resold.
(2) Any deficiency of price which may happen on a resale by reason of the
purchaser’s default, and all expenses attending such resale, shall be certified to the Collector
by the officer holding the sale, and shall, at the instance of the society or the defaulter, be
recoverable from the defaulting purchaser as if they were an arrear of land revenue.
59.O. Certificate be given to the purchaser.— When the purchase money has been paid in
full the officer holding the sale shall grant a receipt for the same and the sale shall become
absolute as against all persons whomsoever.
59.P. Proceeds of sale how to be applied.— (1) When any property is sold under this
Chapter the proceeds of the sale shall be applied to defraying the costs of distraint and sale
and to the payment of the amount for which the distraint was made and the surplus, if any,
shall be paid to the person whose property has been sold.
(2) The costs of distraint and sale shall be estimated at such rates as may, from time
to time, be sanctioned by [Executive District Officer (Revenue) or any other officer authorized
by the Government in this behalf].
59.Q. Certain persons may not purchase.— No officer or other person having any duty to
perform in connection with any distraint or sale made under this Chapter and no officer or
servant of any society shall, either directly or indirectly, acquire or attempt to acquire any
interest in the property sold.
59.R. Procedure where demand is paid before the sale.— (1) If at any time after a distraint
has been made under this Chapter and before the sale of the distrained property, the defaulter or
any other person deposits with the Collector or with the distraining officer the demand amount
together with such costs as may have been incurred after the service of the notice of demand, the
order of distraint shall not be executed.
(2) When the distraining officer receives the deposit, he shall forthwith remit it to the
Collector.
(3) After the expiration of one month from the date on which the deposit is made
under sub-section (1), the Collector shall pay to the society which applied for distraint the
amount due to it;
Provided that, if before the expiry of the said period the Collector receives notice of any
suit in which the legality of the distraint order is questioned or compensation is claimed for
illegal distraint, he shall withhold payment to the society and shall deal with the money in
accordance with such decree [or] order as may be passed in the suit.
59.S. Distraint of property which is under attachment.— Where an order of distraint
issued under this Chapter and an order made by a Civil Court for attachment or sale relate to
the same property, the order of distraint shall prevail; but if the property is sold under the order
of distraint the surplus proceeds of the sale shall not be paid under section 59-P to the owner
of the property without the sanction of the court by which the order of attachment or sale was
made.
59-T. Suit for compensation for wrongful distraint and appeals.— No appeal shall lie
against an order made by the Registrar or the Collector under this Chapter; but a person
whose property is distrained on an application made under section 59-C may institute a suit
against the applicant for recovery of compensation if such an application is not competent
under that section.
59.U. Savings.— Nothing contained in this Chapter shall affect the operation of the provisions
of [the Punjab Land Revenue Act, 1967 (W.P. Act XVII of 1967)] in so far as they give priority to
claims of the Provincial Government to any moneys recoverable under the provisions of that
Chapter over any other debt, demand or claim.]
[CHAPTER IX
OFFENCES]

60. Offences.— It shall be an offence under this Act if–
(a) Default by a society, officer or member– a society with a working capital of
Rs.50,000 or more or an officer or member thereof fails without any reasonable
excuse to give any notice, send any return or document, do or allow to be done
anything which the society, officer or member is by this Act [or rules made
thereunder] required to give, send, do or allow to be done; or
(b) Wilful neglect or default by a society, etc.— a society or an officer or a
member thereof wilfully neglects or refuses to do any act or to furnish any
information required for the purposes of this Act [or rules made thereunder] by
the Registrar or other person duly authorised by him in writing in this behalf; or
(c) Wilful furnishing of false information– a society or an officer or member
thereof wilfully makes a false return or furnishes false information; or
(d) Disobedience of summons, requisition, or order– any person wilfully or
without any reasonable excuse disobeys any summons, requisition or lawful
written order issued under the provisions of this Act [or rules made thereunder ]
or does not furnish any information lawfully required from him by a person
authorized to do so under the provisions of this Act [or rules made thereunder] [;
or]
[(e) Indulgence in fraudulent activities– a member of a society indulges in fraudulent
or corrupt activities concerning the management or business of the society, or
indulges in any illegal or corrupt practices, as defined in the Punjab Local
Government Ordinance, 2001 (XIII of 2001), in the conduct of elections of the
managing committee of the society; or
(f) Performing acts without approval– an officer, an employee of a society or a
member of the managing committee of the society performs any act without prior
approval of the Registrar or of the general body of the society where such prior
approval is required by law; or
(g) Making a false report or refusing to do an act– an officer or a member of the
internal audit committee of a society refuses or neglects to do an act which he is
required by law to do or makes a false report; or
(h) Violation of the master plan– a member of the managing committee of a
cooperative housing society commits any violation or breach of an approved
master plan.]
61. Penalty for offences not otherwise provided for.— Every society, officer or member
of a society or other person guilty of an offence under this Act for which no penalty is expressly
provided herein shall be liable to a fine not exceeding [fifty thousand rupees].
62. Prohibition of the use of the word “co-operative”.— (1) No person other than a
registered society shall without the sanction of [the Provincial Government], trade or carry on
business under any name or title of which the word “co-operative” or its vernacular equivalent
forms part:
Provided that nothing in this section shall apply to the use by any person or his
successor in interest of any name or title under which he traded or carried on business at the
date on which this Act comes into operation.
(2) Whoever contravenes the provisions of this section shall be punishable with fine
which may extend to [fifty thousand] rupees and in the case of a continuing offence with further
fine of [five hundred] rupees for each day on which the offence is continued after conviction
therefor.
[62.A. Penalty.— (1) Whoever contravenes the provisions of sub-section (3) of section 44-C or
any direction given by the Registrar under section 44-D shall be guilty of an offence punishable
with imprisonment of either description for a term which may extend to six months or with fine
or with both.
(2) Whoever contravenes an order passed under section 44-E shall be guilty of an
offence which shall be punished with imprisonment for a term which may extend to three years
but which shall not be less than six months and shall also be liable to be punished with fine].
[63. Cognizance of offences.— No court shall take cognizance of any offence punishable
under this Act except on a complaint in writing made by the Registrar or by a person duly
authorised, for the purpose, by him:
Provided that cognizance of an offence under sub-section (2) of section 62-A may be
taken even otherwise than on such complaint.]
[CHAPTER X
APPEALS AND REVISIONS]

64. Appeal.— An appeal against an order or decision of or sanctioned by the Registrar under
Section 10, 16, 45, 47, 50, 50-A, [54 or sub-section (3) of section 54-A] may be made by any
party aggrieved or affected by the order or decision to [the Provincial Government] within two
months of the date of the communication of the order.
64.A. Power of Provincial Government and the Registrar to call for proceedings of
subordinate officers and to pass orders thereon.— [The Provincial Government] and the
Registrar may call for and examine the record of any inquiry or the proceedings of any officer
subordinate to them for the purpose of satisfying themselves as to the legality or propriety of any
decision or order passed and as to the regularity of the proceedings of such officer. If in any case,
it shall appear to [the Provincial Government] or the Registrar that any decision or order or
proceedings so called for should be modified, annulled or reversed, [the Provincial Government] or
the Registrar, as the case may be, may pass such order thereon as to it or him may seem fit.
[64.AA. Finality of orders of Provincial Government.— An order passed in appeal under
section 64 or in revision under section 64-A by the Provincial Government shall be final and
conclusive and shall not be liable to be called in question in any civil or revenue court.]
[CHAPTER XI
MISCELLANEOUS]

65. Recovery of sums due to Government.— (1) All sums due from a society or from an
officer or member or past member of a society as such to [Government], may be recovered
according to the law and under the rules for the time being in force for the recovery of arrears
of land revenue.
(2) Sums due from a society to [Government] and recoverable under sub-section (1)
may be recovered, firstly from the property of the society; secondly, in the case of a society of
which the liability of the members is limited, from the members or past members subject to the
limit of their liability; and, thirdly, in the case of other societies, from the members or past
members.
(3) The liability of past members shall in all cases by subject to the provisions of
section 28.
[65.A. (1) A member of a society may execute an agreement in favour of the society providing
that his employer shall be competent to deduct every month from the salary or wages payable
to him by the employer such amount not exceeding the amount prescribed by rules, as may be
specified in the application and pay the amount so deducted to the society in satisfaction of
any debt or other demand owing by the member to the society.
(2) On the execution of such agreement the employer shall, if so required by the
society and so long as such debt or demand or any part of it remains unpaid, make the
deduction in accordance with the agreement and pay the amount so deducted to the society.
(3) The provisions of this section shall also apply to all such agreements of the
nature referred to in sub-section (1) as were in force on the date of the commencement of the
[Sind] Co-operative Societies [* * *] (Second Amendment) Act, 1940, but nothing herein
contained shall be deemed to authorise the deduction, under any such agreement, of any
amount in excess of that prescribed by the rules.
[(4) Nothing contained in this section shall apply to persons employed in mines of
nuclear fuels, mineral oils and natural gas.]
[65.B. Officers of societies to be public servants.— Every officer of a society, including a Cooperative
bank, shall be deemed to be a public servant within the meaning of section 21 of the
Pakistan Penal Code]
66. Power to exempt societies from conditions as to registration.— Notwithstanding
anything contained in this Act, [the Provincial Government] may, by special order in each case and
subject to such conditions, if any, as it may impose, exempt any society from any of the
requirements of this Act as to registration.
67. Powers to exempt societies from provisions of Act.— [The Provincial Government]
may, by general or special order to be published in the [Official Gazette], exempt any society
or class of societies from any of the provisions of this Act, or may direct that such provisions
shall apply to such society or class of societies with such modifications as may be specified in
the order; provided that no order to the prejudice of any society shall be passed without an
opportunity being given to such society to represent its case.
68. Companies Act not to apply.— The provisions of the [* * *] Companies Act of 1913,
shall not apply to societies registered under this Act.
69. Branches, etc., of societies outside the province.— Every co-operative society
registered outside the [Province of West Pakistan], which has or establishes a branch or place
of business in the [Province of West Pakistan] shall within six months from the commencement
of this Act or from the establishment of such branch or place of business, file with the Registrar
a certified copy of the by-laws and amendments and, if these are not written in the English
language, a certified translation in English thereof, and shall submit to the Registrar such
returns and information as are submitted by similar societies in the [Province of West Pakistan]
in addition to those submitted to the Registrar of the province where it is registered.
70. Notice necessary in suits.— No suit shall be instituted against a society or any of its
officers in respect of any Act touching the business of the society until the expiration of two
months next after notice in writing has been delivered to the Registrar, or left at his office,
stating the cause of action, the name, description and place of residence of the plaintiff and the
relief which he claims; and the plaint shall contain a statement that such notice has been so
delivered or left.
[70.A. Bar of Jurisdiction.— (1) Notwithstanding anything provided in any other law for the
time being in force, but save as expressly provided in this Act–
(a) no Court or other authority whatsoever shall have jurisdiction to entertain, or to
adjudicate upon, any matter which the Provincial Government, the Registrar or
his nominee, any arbitrator or liquidator, a society, a financing bank, a Cooperative
bank or any other person is empowered by or under this Act, or the
rules or by-laws framed thereunder, to dispose of or to determine;
(b) the validity of anything done or an order passed by the Provincial Government, a
society, a financing bank, a Co-operative bank, the Registrar or any other person
referred to in clause (a), under this Act or the rules and by-laws framed
thereunder, shall not be called in question in any manner whatever before or by
any Court or other authority whatsoever; and
(c) no Court or other authority whatsoever shall be competent to grant any injunction or
pass any other order in relation to any proceedings under this Act or any rules or bylaws
framed thereunder before the Provincial Government, a society, a financing
bank, a Co-operative bank, the Registrar or any other person referred to in clause
(a).
(2) The provisions of sub-section (1) shall be applicable to proceedings, appeals and
revisions pending adjudication or disposal before or in any Court or other authority whatsoever on
the date that the Co-operative Societies (Amendment) Ordinance, 1966, comes into force, and
any order passed in such proceedings, whether before or after the coming into force of the said
Ordinance, in regard to matters referred to in sub-section (1), shall stand vacated and be without
any force.]
71. Rules.— (1) [The Provincial Government] may, for the whole or any part of the
[Province] and for any society or class of societies, make rules to carry out the purposes of this
Act.
(2) In particular and without prejudice to the generality of the foregoing power such
rules may–
(a) subject to the provisions of section 6, prescribe the maximum number of shares
or portion of the capital of a society which may be held by a member;
(b) prescribe the forms to be used and the conditions to be complied with in the
making of applications for the registration of a society and the procedure in the
matter of such applications;
(c) prescribe the matters in respect of which a society may or shall make by-laws
and the procedure to be followed in making, altering and abrogating by-laws and
the conditions to be satisfied prior to such making, alteration or abrogation;
(d) prescribe the conditions to be complied with by persons applying for admission or
admitted as members and provide for the election and admission of members and
the payment to be made and the interests to be acquired before the exercise of the
right of membership;
(e) provide for ascertaining the value of a deceased member’s share or interest;
(f) provide for general meetings of the members and for the procedure at such
meetings and the powers to be exercised by such meetings;
(g) provide for the appointment, suspension and removal of the members of the
committee and other officers and for the procedure at meetings of the committee
and for the powers to be exercised and the duties to be performed by the
committee and other officers;
[(ga)] provide, where all the members of the committee have been suspended or
removed, for the appointment of a person to administer the affairs of the society
and for the powers to be exercised and the duties to be performed by such
person;
(h) prescribe the accounts and the books to be kept by a society and provide for the
audit of such accounts, and the charges, if any, to be made for such audit, and
for the periodical publication of a balance sheet showing the assets and liabilities
of a society;
(i) prescribe the returns to be submitted by a society to the Registrar and provide for
the persons by whom and the form in which such returns shall be submitted;
(j) provide for the persons by whom and the form in which copies of documents or
entries in books of societies may be certified, and for the charges to be levied for
the supply of such copies;
(k) provide for the formation and maintenance of a register of members, and where
the liability of the members is limited by shares, of a register of shares;
(l) prescribe the payments to be made and the conditions to be complied with by
members applying for loans, and the period for which loans may be made, and
the amount which may be lent to an individual member;
[(m) prescribe the conditions, prohibitions and restrictions subject to which a society
may–
(i) transact business with persons who are not members; or
(ii) make loans against the security of movable property;]
(n) provide for the formation and maintenance of reserve funds, and the objects to
which such funds may be applied, and for the investment of any funds under the
control of a society;
(o) prescribe the extent to which a society may limit the number of its members;
(p) prescribe the conditions under which profits may be distributed to the members of a
society and the maximum rate of dividend which may be paid by societies;
(q) Prescribe the procedure to be followed in presenting and disposing of appeals;
(r) provide for securing that the share capital of any society shall be variable in such a
way as may be necessary to secure that shares shall not appreciate in value and
that necessary capital shall be available for the society as required;
(s) Provide that persons qualified under the by-laws of a society shall not be
excluded from membership without due cause;
(t) prescribe the procedure to be followed by a liquidator appointed under section
47;
(u) prescribe the mode of appointing an arbitrator or arbitrators and the procedure to be
followed in proceedings before the Registrar or such arbitrator or arbitrators and for
fixing and levying the expenses of determining the dispute;
(v) provide for the issue and service of processes and for proof of service thereof;
(w) provide for the writing off of bad debts;
(x) regulate the manner in which funds may be raised by means of shares or debentures
[,participation term certificates, term finance certificates, musharika certificates,
modaraba certificates, and such other instruments as may be approved by the State
Bank of Pakistan], or otherwise;
(y) provide for the withdrawal and expulsion of members and for the payments to be
made to them and for the liabilities of past members;
(z) provide for the nomination of a person to whom the interest of a deceased
member may be paid or transferred;
(aa) prescribe the cases in which an appeal shall lie from the order of a liquidator
appointed under section 47;
(bb) provide for the inspection of documents in the Registrar’s office and the levy of
fees for granting certified copies of the same;
(cc) prescribe the procedure to be followed for the custody of property attached under
section 55;
[(cca) prescribe the manner in which an order under sub-section (3) or sub-section (4)
of section 59-E or a notice of demand shall be served or published;
(ccb) prescribe the particulars to be supplied to the Collector under sub-section (1) of
section 59-F;
(ccc) prescribe the manner in which a notification of distraint should be published
under sub-section (2) of section 59-F;]
(dd) provide for the payment of contributions at such rates and subject to such
conditions as may from time to time be prescribed by co-operative societies to any
provident fund which may be established for the benefit of officers and servants
employed by them; [* * *]
(ee) prescribe the period and terms under which Government aid may be given to cooperative
societies and the terms under which [the Provincial Government] may
guarantee the payment of [the principal of and] interest [or return] on [instruments
referred to in clause (x) of this sub-section] issued by registered societies;
[(ff) prescribing the manner in which any property shall be delivered to, and the terms
and conditions subject to which such property shall be held by, a society under
section 59-A [;]
[(gg)] Provide that the contravention of any rule or order issued thereunder shall be
punishable with fine not exceeding rupees [five thousands] [; and]
[(hh) prescribe the environmental standards and the standards for the use of land.]
(3) [The Provincial Government] may, subject to such conditions, if any, as it thinks fit,
delegate all or any of its powers to make rules under this section to any authority specified in the
order of delegation.
(4) The power to make rules conferred by this section is subject to the condition of
the rules being made after previous publication.
[(5) * * * * * * * * * * * *]
[72. Repeal and savings.— (1) The following enactments are hereby repealed:-
(a) the Co-operative Societies Act, 1912; and
(b) the Bombay Co-operative Societies Act, 1925, as applicable to the District of
Karachi.
(2) Every society now existing which has been registered under the Co-operative
Societies Act, 1904, or under the Co-operative Societies Act, 1912, shall be deemed to be
registered under this Act, and its by-laws shall, so far as the same are not inconsistent with the
express provisions of this Act, continue in force until altered or rescinded.
(3) All rules, regulations, notifications and orders made or issued under this Act and
in force at the time of the commencement of the Sind Co-operative Societies (West Pakistan
Amendment) Ordinance, 1965, shall, so far as may be, extend and apply, until altered,
amended or rescinded by competent authority to the areas to which this Act has been
extended by the Sind Co-operative Societies (West Pakistan Amendment) Ordinance, 1965].
[(4) The repeal of the Acts specified in sub-section (1) hereinafter referred to as the
repealed Acts, shall not–
(a) revive anything not in force or existing at the time at which the repeal takes
effect; or
(b) affect the previous operation of the repealed Acts or anything duly done or
suffered thereunder; or
(c) affect any right, privilege, obligation or liability acquired, accrued or incurred
under the repealed Acts; or
(d) affect any penalty, forfeiture or punishment incurred in respect of any offence committed
against any repealed Act; or
(e) affect any investigation, legal proceeding or remedy in respect of any such right,
privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid, and
any such investigation, legal proceeding or remedy may be instituted, continued,
or enforced, and any such penalty or forfeiture or punishment may be imposed
as if this Act had not been passed.
(5) Any person who immediately before the coming into force of the Sind Cooperative
Societies (West Pakistan Amendment) Ordinance, 1965, was appointed as, or was
exercising the powers of, a Registrar, Liquidator, Registrar’s nominee or any other authority,
under any repealed Act, shall be deemed to have been so appointed under this Act, and shall
continue to exercise the powers of the Registrar, Liquidator, Registrar’s nominee, or other
corresponding authority, as the case may be, under this Act, until such appointment is
rescinded by the competent authority under this Act.]
[72.A. Construction of references to Co-operative Societies Act, 1912, in enactments.— All
references to the Co-operative Societies Act, 1912, occurring in any enactment made by any
authority in [Pakistan] and for the time being in force in [the Province of West Pakistan] shall, in the
application, to the [said Province], of any such enactment, be read and construed as references to
this Act and anything done or any proceeding commenced in pursuance of any such enactment
on or after the date on which this Act shall have come into operation shall be deemed to have
been done or to have been commenced and to have had effect as if the reference in such
enactment to the Co-operative Societies Act, 1912, had been the reference to this Act, and no
such thing or proceeding shall be deemed to have been invalid on the ground that such enactment
did not refer to this Act.]
72.B. [Validity of transfer made under section 59 (2) of Sind VII of 1925]. Repealed by the
Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance V
of 1955), section 6, Schedule II.
73. [Repeal]. Repealed by the Sind Laws (Adaptation, Revision, Repeal and Declaration)
Ordinance, 1955 (Sind Ordinance V of 1955), s.6. Schedule II.
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THE CO-OPERATIVE SOCIETIES RULES, 1927
[14th July, 1926]

CONTENTS
1. Short title – Definition
2. Application for Registration
3. Decision of Registrar to be communicated in case of refusal to
register
4. Matters in respect of which a society shall or may make bylaws
5. By-laws
6. Amendment of by laws
6-A. Special general meeting at the instance of Registrar
7. Loans and deposits
8. Restrictions on borrowing societies with limited liability
8-A.
9. Shares not to be hypothecated to that society
9-A. Value of share of a member
10. Deposits with agricultural credit societies
11. Loans on suretyship of non-members
12. Writing off of losses
13. Interblending
14. Accounts, returns and documents
15. By whom copies of documents or entries may be certified
16. Inspection of documents
17. Registrar may require statements and returns to be furnished
17-A. Preparation of necessary statements or returns of accounts or
books at the expanses of the societies
18. Periodical financial statement to be furnished
18-A. Maintenance of fluid resources
19. Annual balance-sheet
20. Transfer of interest
21. Nomination of persons
22. Distribution of profits
23. Distribution of bonus
24. Payment of dividend by consumers’, producers’ or housing
societies
24-A.
25. Distribution of balance of profits
25-A.Limitation on the payment of dividend or bonus
26. Restrictions on distribution of funds by way of bonus, dividend or
otherwise
26-A.Co-operative conference and contribution to expenses thereof
by societies
27. Investment of funds
28. Reserve fund
28-A.Building fund
29. Levy of audit fees
30. .
31. Audit of accounts of consumers’ societies
32. Arbitration
32-A. Interlocutory orders
33. Registrar may appoint any person to be his nominee for any specified
area
34. Payment of expenses of arbitration
34-A.
35. Procedure in arbitration proceedings
36. Appearance by pleaders
37. Execution of arbitration orders in special cases
37-A.
38. Liquidation
39. Execution of orders
39-A.Recovery of costs of execution when property is not sold
40. Disposal of records of a society whose registration is cancelled
41. Interest in Liquidation proceedings
42. Service of summonses –miscellaneous
43. Fees to be credited to Government
44. Mode serving summonses
44-A.Procedure for the custody of Property attached under Section
55 of the Act
45. Restriction on membership of two credit societies
45-A.
46. Societies not be involved in controversial matters of a religious
character
47. Registrar to keep a record of names, addresses and by-laws of
societies
48. .
49. Issue of proclamation prohibiting private transfers of property
50. Transfer of property under Section 59-A
51. .
52. Power and duties of the committee
53. Qualification of members of committee
54. Investment of funds
55. Power to make Rules

NOTIFICATION

No.5978/24: Whereas certain rules, which it was proposed to make under Section 71 of the Co-operative Societies Act, 1925 (Act VII of 1925), were published in Government Notification in the Revenue Department No.5978/24, dated 14th July 1926;
And whereas the objections and suggestions received with reference to the said rules have been considered by the Government of Province concerned;
Now, therefore, the Government of the Province concerned, in exercise of the powers conferred by Section 71 of the Co-operative Societies Act, 1925 (Act VII of 1925), and in supersession of certain Notifications, are pleased to make the following rules:

1. Short title. (1) These rules may be called the Co-operative Societies Rules, 1927.
(2) Definitions. In t h e s e rules, unless there is a n y t h i n g repugnant to t h e subject or context,
(i) the expression “the Act” means the Co-operative Societies Act, 1925;
(ii) “section” means a section of the Act;
(iii) words and expressions defined in the Act shall have the meanings assigned to them in the Act.
REGISTRATION
2. Application for registration. (1) Every application for the registration
of a society under sub-section (1) of Section 9 shall be in the form of
Schedule ‘A’ hereto annexed.
(2) In addition to the copy of the by-laws which is required to
accompany the application for registration under sub-section (3) of
Section 9 two other copies of the proposed by-laws of the society shall be
forwarded therewith.
(3) In case where one of the members of the society to be
registered is a registered society, a member of the Managing Committee
of such registered shall be authorised by such Committee by resolution to
sign the application for registration and the by-laws on its behalf, and a
copy of such resolution shall be appended to the application.
3. Decision of Registrar to be communicated in case of refusal to
register . If the Registrar refuses to register the society or of its by-laws
under Section 10, he shall communicate to the applicants his reasons for
so doing.
BY-LAWS
4. Matters in respect of which a society shall or may make bylaws
(1) The matters in respect of which every society shall make by-laws are
the following:—
(a) the name and address of the society and its branches, the
tribe, class, caste or occupation of its members if the
membership is proposed to be so restricted, and the area for
which it is to be registered;
(b) the object of the society, the purposes to which its funds are
applicable, the terms of admission of members, and their
rights and liabilities, the consequences of default in payment
of any sum due by a member and in the case of credit
societies, the conditions on which loans may be granted, and
the rate of interest and the system of calculation of interest and
the maximum number of members that may be admitted;
and, in the case of non-credit societies, the mode of
conducting business, purchase, sale, stock-taking, and other
like matters;
(c) the mode of holding meetings, and, subject to the provisions of
rules 5 and 6, the manner of making, altering and abrogating
by-laws;
(d) the mode of appointments and removal of members of the
committee and the officers, if any, and the duties and powers of
the committee and officers;
(e) the manner in which capital may be raised;
(f) the mode of custody and of investment of funds, and, subject
to rules 14, 17, 18 and 19, the mode of keeping of accounts;
and
(g) the distribution of its profits.
(2) Every society may make by-laws in the respect of any other
matters incidental to the management of its business.
5. By-laws. When a society has been registered, the by-laws
submitted under sub- section (3) of Section 9 shall, subject to any
modification approved by the Registrar, and adopted at a general
meeting, having a quorum, by majority of not less than two-thirds of the
members present at such meeting, become the by-laws of society.
6. Amendment of by-laws. By-laws may be made, altered or
abrogated by a resolution passed at a general meeting of the society;
provided that—
(1) due notice of any proposal to make, alter or abrogate the bylaws
is given in accordance with the by-laws;
(2) the resolution is passed by not less than two-thirds of the
members present at the general meeting at which a quorum shall be
present or, at an adjournment general meeting (at which if a quorum is
not present members present shall form a quorum) and a copy of the
resolution is forwarded to the Registrar within a period of three months
from the date of the meeting. A copy of the existing by-law or by-laws, so
marked as to show the alterations proposed to be made, and three
copies of the proposed amendments signed by the officers of the society,
shall be attached to the copy of the resolution; and
(3) the making, alteration or abrogation of the by-laws is approved
and registered by the Registrar.
6-A. Special general meeting at the instance of Registrar.
Notwithstanding anything contained in the rules or by-laws of a society
as to the manner of summoning a General Meeting and a notice to be
given, for the said purpose, any person authorised in this behalf by the
Registrar may call a special general meeting for which a requisition has
been made by the Registrar under sub-section (2) of Section 13 in such
manner and at such time and place as the Registrar may direct. A
special general meeting so convened shall have powers to transact all
business which can be transacted at the annual general meeting under
the by-laws framed by the society and such other business as is specially
mentioned in the requisition made by the Registrar.
7. Loans and deposits. Every society with unlimited liability shall,
from time to time, fix in a general meeting the maximum liability which it
may incur in loans and in deposits from non-members. The maximum
so fixed shall be subject to the sanction of the Registrar, who may at any
time reduce it, for reasons to be communicated by him to the society in
writing, and may prescribe a period, not being less than four months,
within which the society shall comply with his orders. No such society shall
receive any loan or deposit from a non-member which will make its
liability to non-members exceed the limit sanctioned by the Registrar.
8. Restrictions on borrowing societies with limited liability. No
society with limited liability shall incur liabilities from persons who are not
members exceeding in total fifteen times the total amount of its paid-up
share capital, accumulated reserve fund, and building fund, minus
accumulated losses. In calculating the total amount of liabilities for the
purposes of this rule, in the case of an agricultural sale society, purchase
and sale society, or a multi-purpose sale society, specified by the
Register by general or special order in that behalf, a sum equal to the
amounts borrowed by such society from a banking society for giving
advances on the security of agricultural produce shall be deducted
from the amount of actual liabilities if such society and in the case of the
Provincial Co-operative Bank Ltd., a sum equal to the face value of the
gilt-edged securities owned by the Bank up to an amount of the paid-up
share capital of the Bank shall be deducted from the amount of actual
liabilities of the Bank.
8-A. The provisions of rules 8 shall apply to land mortgage societies
and District Industrial Associations registered under the Co-operative
Societies Act, 1925, with the modification that for the words “fifteen
times” occurring herein the words “twenty times” shall be substituted.
9. Shares not to be hypothecated to that society. The shares of a
society shall not be hypothecated to that society by its members as a
security for a loan.
9-A. Value of share of a member. If a member resigns his membership
of a society or dies, the sum representing the value of interest in the
capital of the society to be paid to him or his nominee, heir or legal
representative, shall be ascertained as under:—
(i) In the case of a society with unlimited liability, it shall be the
actual amount received by the society in respect of such share
or interest,
(ii) In the case of a society with limited liability, it shall be the
amount arrived at by a valuation based on the financial position
of the society as shown in the last audited balance-sheet
preceding the resignation or death of such member; provided
that it shall not exceed the actual amount received by the
society in respect of such share or interest.
10. Deposits with agricultural credit societies. Agricultural credit
societies shall not accept deposits which are not fixed for a period of at
least two months, except savings deposits in such societies as have
made in their by-laws provision for the encouragement of thrift among
their members by the opening of savings accounts.
11. Loans on suretyship of non-members. No society shall make
any loan to a member on a bond secured by the suretyship of a nonmember;
provided that the Registrar may, for special reasons, exempt
any society by name from the operation of this rule.
12. Writing off of losses. Losses may be written off against the reserve
fund of any society, and in the case of limited liability societies, if the
losses exceed the reserve fund, the balance remaining may be written off
against the share capital of society:
Provided that—
(i) no losses shall be written off without the sanction of a general
meeting;
(ii) before any such losses are so written off, the society, if it is
affiliated and indebted to a Central Bank, shall obtain the
approval of the Central Bank in writing, which approval shall
be given after consultation with the Assistant Registrar, and
shall be countersigned by him. If the society is no so affiliated,
or if the society is so affiliated and is not indebted to the Central
Bank, it shall first obtain the approval of the Assistant
Registrar in writing; and
(iii) if the society itself is a Central Bank, the approval of the
Provincial Co-operative Bank, given in consultation with and
countersigned by the Registrar, shall first be obtained:
Provided further that the Assistant Registrar or the Registrar, as the
case may be, may while according or countersigning the approval,
impose such condition as to the restoration of part or whole of the
amount written off to the reserve fund from out of future profits, as he
deems fit.
Explanation. ‘Losses’ includes losses on account of bad debts
also.
13. Interlending. For the purposes of sub-section (1) of Section 34 a
loan also means and includes a deposit made by one society with
another society.
14. Accounts, returns and documents. (1) Every credit society
shall keep the following accounts and books, viz.:—
(a) A register of members including persons nominated under
Section 27;
(b) A register of shares and debentures (where capital is raised by
shares or debentures);
(c) A shares transfer register (where capital raised by shares or
debentures);
(d) Cash account;
(e) Members’ loan account;
(f) Deposit account;
(g) Loan register;
(h) Interest accounts;
(i) Expense account;
(j) Bank account;
(k) Minute book, recoding the proceedings of general meetings;
(l) Minute book, recording the proceedings of the Committee;
(m) Register of members’ credit worthiness;
(n) Such other accounts and books as may from time to time be
prescribed by the Registrar:
Provided the Registrar may exempt any society or c l a s s of s o c i e t i e s
from the operation of clause (m) mentioned above.
(2) Societies other than credit societies shall keep the accounts
and books mentioned in clauses (a), (d), (k) and (l) of sub-rule (1)
and such other accounts and books as may be approved, or from
time to time, required by the Registrar.
(3) The Registrar may, by order in writing direct any society to
get any or all the accounts and books required to be kept by it under
sub-rule (1) and (2) written upto such date, in such form and within
such time as he may prescribe.
4) The accounts and books by a society shall be kept in such
place and by such person as the Registrar may direct.
15. By whom copies of documents or entries may be certified. For
the purpose of Section 31 copies of documents or entries in the books of a
society may be certified by any officer of the society.
16. Inspection of documents. (1) Any member of the public shall be
permitted, on payment of a fee of one rupee for each inspection, to
inspect for any lawful purpose any public document (exclusive of public
documents privileged under Articles 6, 7, 12 and 14 of the Qanun-e-
Shahadat Order, 1984) filed in the office of the Registrar and in
particular the following documents, namely:—
Application for registration of a society.
The Registration Certificate of a society. The Registration
Register.
The registered by-laws of a society including any amendment
made in such by- laws.
An order for the winding up of the affairs of a society. An order for
the appointment of a Liquidator.
An order cancelling the registration of a society.
The annual accounts of a Society or its annual balance-sheet.
(2) The Registrar shall give certified copies of the documents which
are liable to inspection as mentioned in clause (1) above, to a person
demanding the same on payment of fee as specified hereunder:
(i) For Registration Certificate of society Rs.300
(ii) In case of other documents, a sum
calculated at the following rates:
(a) First 200 words or under Rs.100
(b) Every additional 100 words or
Fraction thereof Rs.100
17. Registrar may require statements and returns to be furnished.
The Registrar may require any society to submi t any statement and any
periodical return of receipts and disbursements on such dates and in
such form as he may prescribe. Every housing society shall submit a
property register to the Register on such dates and in such form as he may
prescribe.
17-A.Preparation of necessary statements or returns or accounts or
books at the expanses of the societies. In case of failure by any society
to submit any statement or return mentioned in rule 17 or to maintain any
account or books mentioned in rule 14 or to get such accounts or books
written according to the direction given by the Registrar under rule 14, the
Registrar may depute an officer of the Provincial Government to
prepare the necessary statements, or returns or accounts of books at the
expense of the society. Such expenses shall be recoverable from the
society in the manner specified in Section 65.
18. Periodical financial statement to be furnished. All registered
societies classified by the Registrar as Central Banks or as Urban Banks
shall submit to that officer a quarterly finance statement in the form
prescribed by the Government for the quarters ending March 31st, June
30th, September 30th, and December 31st, not later than April 15th, July
31st, October 15th and January 15th, respectively.
18-A.Maintenance of fluid resources. All societies which obtain portion
of their working capital by deposits, shall maintain such fluid resources as
may from time to time by prescribed by the Registrar.
19. Annual balance-sheet. (1) On or before 15th September of each
year, the Committee of every society shall publish an annual balance
sheet showing (a) the profit and loss, and (b) the receipts and expenditure
of the previous financial year, and (c) the assets and liabilities as they
stood on June 30 th. The balance-sheet shall be in such form as the
Registrar may prescribe for any society or class of societies. This
balance-sheet shall be open to the inspection of any member during
office hours at the office of the society and a copy thereof shall be
submitted before September 30th to the Registrar and to the Auditor
appointed by the Registrar for the audit of that society.
(2) In case of Taluka Development Association the financial
year will begin from 1st April and close on 31st day of March.
20. Transfer of interest. The name and address of every person
nominated under Section 27 and any revocation or variation of such
nomination shall be entered in the register kept under Rule 14, sub-rule
(1), clause (a).
21. Nomination of persons. (1) A member may, by writing under his
hand deposited with the society during his life time, or by a statement
signed by the member made in any book kept by the society, nominate
any person to whom under Section 27 his share or interest in the society or
so much thereof as may be specified in such nomination, shall be paid or
transferred on his death.
(2) A nomination so made may be revoked or varied by another
nomination similarly made.
22. Distribution of profits. In calculating the profits of a society for the
year, all accrued interest which is overdue shall be deducted from the
gross profits of the year before the net profits are arrived at. All accrued
interest, that has been so deducted from the profits of the year and is
actually recovered during the subsequent year, may be added to profits
of the subsequent year.
23. Distribution of Bonus. No registered society shall distribute any
bonus or shares beyond the divided declared under Section 38.
24. Payment of dividend by consumers’, producers’ or housing
societies. (1) No society shall pay its shareholders a dividend exceeding
6¼ per cent in any year on the paid-up share capital standing in the name
of each shareholder. If a society is unable to pay dividend of 6¼ per cent in
any year, it may make good the deficit by paying the difference out of
profits in future years.
(2) (a) No Resource or General Society shall, without the
previous written sanction of the Registrar, pay to its shareholders a
dividend exceeding 7½ per cent, (inclusive of bonus, if any) in any year
on the paid-up share capital standing in the name of each shareholder.
(b) Such society may credit in any year a sum not
exceeding 2 per cent on the paid-up share capital to a fund called ‘the
Dividend Equalization Fund’ until the total amount in such fund amounts
to 7½ per cent of the paid-up share capital. Except for the purpose of
paying a dividend, no withdrawals from such fund shall be made without
the previous written sanction of the Registrar.
(3) No society shall declare a dividend at a rate exceeding
that recommended by its Managing Committee or Board of Directors, as
the case may be.
24-A. No dividends shall be paid by any society otherwise than out of
profits of the year or any other undistributed profits.
25. Distribution of balance of profits. Any distribution of the
remaining balance of profits under Section 40 and after the distribution of
dividend under Section 38 shall be in accordance with the by-laws of the
society regarding such distribution. It shall be in proportion to the
wages earned by each member in the case of a producers’ society, and
to the amount of goods purchased by each member, or, where it is so
provided, in the by-laws, by each member or customer, in the case of a
consumers’ society. It shall also be in proportion to the amount of rent
paid by each member in the case of a Housing Society, and, in the case
of a resource society, may be in proportion to the goods obtained or
sold through the society by each member, or to the loans borrowed from,
and the deposits made with, the society by each member.
25-A. Limitation on the payment of dividend or bonus. (1) Subject
to the provision of sub-section (2) of Section 39 and clause (b) of Section
40, in a society with unlimited liability in which members held shares, no
dividend or bonus shall be paid until ten years have elapsed from the
date of its registration. In the eleventh year, the accumulated net profits of
previous years, less the amount carried to the reserve fund, may be
appropriated among the members in the form of permanent shares,
which will not be returnable except to widow, minor nominees of destitute
members and past members subject to the approval of the Registrar in
the twelfth and each following year, after at least one-fourth of the net
profits of the year have been carried to the reserve fund, a dividend not
exceeding 7½ per cent, on each fully paid-up share may be paid from the
reminder of the profits.
Explanation.- (1) In the case of a society formed by splitting up of a
society or the amalgamation of two or more societies, its date of
registration for the purpose of this sub-rule shall be deemed to be the
date of the registration of the original society or societies, as the case
may be.
(2) No dividend shall be paid by any society while any claim
overdue from the society to a depositor or lender remains unsatisfied.
(3) The Registrar may, by general or special order, direct that a
society shall not pay dividend or pay it at a reduced rate so long as it
receives loans or deposits from non-members other than a Central
Bank.
26. Restrictions on distribution of funds by way of bonus, dividend
or otherwise. Without the sanction of the Registrar, no part of the funds of
a registered society shall be divided, by way of bonus or dividend or
otherwise, amongst its members in any year unless the entire
expenditure incurred by such society has been debited in the annual
profit and loss account before the net profit has been calculated:
Provided that any loss or portion of loss on account of bad debts
written off during the year may not be so debited if it be deducted from any
bad debt or with the sanction of the Registrar from the Reserve Fund.
26-A. Co-operative conference and contributions to expenses
thereof by societies. No society shall contribute any money towards
the expenses of any co-operative conference unless such conference
is held under the auspices of a society which is authorised by its by-laws
to hold such conference. The Society holding the conference shall keep
separate accounts of its income and expenditure due to such conference
and such accounts shall be open to audit by the Registrar or the person
authorised by him under Section 22.
27. Investment of funds. With the previous sanction of the Registrar
any society may invest its funds or a portion thereof (a) in the shares of the
State Bank of Pakistan constituted under the State Bank of Pakistan
Order, 1948, (b) in the purchase or leasing of land or building, and (c) in the
construction of buildings; provided that the purchase of such land or the
construction of such buildings, is likely to be advantageous to the society
in the conduct of its business.
28. Reserve fund. The reserve fund of any registered society may be
utilised in the business of the society, or be invested or deposited in any
of the ways mentioned in clauses (a), (b), (c) and (d) of Section 37. The
Registrar may, for reasons to be communicated in writing by him to the
society, by general or special order, direct that the latter course be
adopted. In the case of a society constituted with the object of cooperative
housing on a co-partnership tenancy basis, the reserve fund
may be utilised for expenditure on the maintenance, repair and renewal of
the buildings of the society.
28-A. Building fund. The fund created by a registered society for
the purpose of constructing buildings, shall be called the building fund.
The amount of such fund may when it is not utilised for the construction
of building be used in the business of the society or be invested or
deposited in the same manner and subject to the same conditions as the
reserve fund of such society is permitted to be used, invested or
deposited under the Act and these rules.
29. Levy of audit fees. The Registrar may with the previous sanction of
the Provincial Government levy audit fees on all societies; provided that
in the case of an agricultural co-operative credit society, the audit fees so
levied shall not exceed 5/8 per cent calculated on the working capital of
the society as it stood at the close of the last preceding co-operative year.
The Registrar shall employ the proceeds of such audit fees in
maintaining a staff to audit the accounts of the societies. Such audit fees
shall be recoverable under Section 65.
30. [Deleted]
31. Audit of ac counts of consumers’ societies. (1) Consumers’
Societies with a working capital exceeding Rs.50,000 may at their
option arrange for their own annual audit independently. The societies
arranging for their own audit shall report the fact to the Registrar before
the 1st of May every year. Failing the receipt of such report from any
Consumers’ Society before the 1st of May in any year, the Registrar shall
arrange for the compulsory audit of such society by an official auditor.
When the audit is made by an official auditor, a fee of Rs.10 per day for the
whole period of the audit (a portion of a day being treated as a full day)
shall be recovered from the society and credited to Government.
(2) If, after an inquiry under Section 43 or an inspection under
Section 44, the Registrar has grounds for thinking that the audit
arranged independently by the society has been seriously defective, he
may order the official auditor to make a fresh audit of the society, and
may recover the cost of the audit from the society.
32. Arbitration. When a dispute has been referred to the Registrar
under Section 54, the Registrar or his nominee shall issue a notice to all
parties, and, unless either of the parties desires within 15 days of the
issue of such a notice that the matter be related to arbitration, shall
proceed to decide the dispute himself.
When either of the parties desires that the matter be referred to
arbitration, the Registrar (or his nominee) shall call on each party to
nominate his arbitrator within 15 days, and to send a statement signed
by the proposed arbitrator about his willingness to serve as an arbitrator.
When there are more persons than one on each side, the principal party
on each side will have the right to nominate the arbitrator. In such cases
the Registrar will decide who is the principal party and his decision shall
be final.
When either of the parties fails to make a nomination within the
period aforesaid, the Registrar may nominate an arbitrator on behalf of
such party.
The Registrar or his nominee will act as Chairman of the Committee
of three Arbitrations. He will fix the date and place of hearing the dispute
and carry on the necessary correspondence in connection with the
disposal of the case.
When any dispute is referred to the Registrar’s nominee or to three
arbitrators for decision and is not decided by them within two months or
such further period as the Registrar may allow, the Registrar may
decide the dispute himself or refer it again to his nominee for decision.
32-A. Interlocutory orders. The Registrar or his nominee or the
arbitrators, as the case may be, may in order to prevent the ends of justice
being defeated, make such interlocutory order pending the decision in a
dispute referred to under Section 54, as appear to be just and
convenient.
33. Registrar may appoint any person to be his nominee for any
specified area . The Registrar, by special order to be notified in the
Provincial Gazette may appoint any person to perform the duties of his
nominee for disputes arising in any one or more co-operative societies
within any area specified in the order for a period to be specified in the
order. Such period shall not ordinarily exceed one year but may be
extended by further special order for a further period not exceeding one
year in each case.
34. Payment of expenses of arbitration. The Registrar or his
nominee and the arbitrators shall have power to order the expenses of
determining the disputes to be paid out of the funds of the society, or by
such party or parties to the dispute as they think fit, according to a scale
laid down by the Registrar. The Registrar may fix the fees to be paid to his
nominee out of the expenses so recovered.
34-A. Before referring a dispute for the decision under Section 54,
the Registrar may require the plaintiff to make a deposit of the probable
expenses of arbitration.
35. Procedure in arbitration proceedings. The Registrar or his
nominee shall record a brief in English or in vernacular of the evidence of
the parties and witnesses who attend, and upon the evidence so
recorded, and upon consideration of any documentary evidence
produced by either side, a decision or awards, as the cases may be, shall
be given in accordance with justice, equity and good conscience, and
shall be reduced to writing. If any party duly summoned to attend fails to
appear, the dispute may be decided exparte. In cases where three
arbitrators are appointed, the opinion of the majority shall prevail. In case
of equality of votes, it shall be decided by the Registrar himself.
36. Appearance by pleaders. In proceedings held under rules 32 to
35, no party shall be represented by a legal practitioner.
37. Execution of arbitration orders in special cases. Subject to the
provisions of Section 59 of the Act, the Registrar may by an order in
writing specially authorise any officer of the Co-operative Department
not below the rank of Sub-Auditor or a Supervisor of supervising union to
call for and send arbitration orders obtained by any society for execution.
The societies in respect of which those powers are to be exercised by the
officers so authorised shall be mentioned in the order.
37-A. When recovery of arbitration awards is made by village
Officers, the Registrar shall have power to order the expense of such
recovery to be paid out of the society or by such party or parties in default
as he may think fit according to a scale laid down by the Registrar.
38. Liquidation. Where a Liquidator has been appointed under
Section 47, the following procedure shall be adopted:—
(1) The appointment of the Liquidator shall be notified by the
Registrar in the Provincial Gazette.
(2) The Liquidator shall at once take charge of the books and
property and assets of the society and publish by such means as he may
think proper a notice requiring all claims against the dissolved society to
be notified to him within two months of the publication of the notice. He
shall thereafter proceed to take such further action as he is empowered
to take under the Act. All liabilities recorded in the account books of the
society shall be deemed to have been duly notified to the liquidator.
(3) The Liquidator shall made separate orders against the various
members and past members of the society, noting the amount to be
realised from each as a contribution under clause (d) of Section 50 and
as the cost of liquidation under clause (1) of the said Section. These
orders shall be submitted for approval to the Registrar, who may modify
them or refer them back to the Liquidator for further inquiry or other
action or may forward them for execution under Section 59.
(4) If the sum assessed against any member is not recovered, the
Liquidator may frame a subsidiary order or orders against any other
member or members to be extent of the liability of each of the debts of the
society, until the whole amount due from members is recovered, and
these orders shall be dealt within the same way as orders under sub-rule
(3).
(5) The Liquidator shall submit a quarterly progress report to the
Registrar in such form as the Registrar may require.
(6) All funds in the charge of the Liquidator shall be deposited
either in the Post Office Savings Bank or in a Central Co-operative
Bank, and shall stand in his name.
(7) Where recovery of dues is made by village officers the
Liquidator may pay to such officers remuneration at the rate of one per
cent of the amount collected by such officers.
(8) The Registrar shall fix the amount of fee, if any to be paid to the
Liquidator.
(9) At the conclusion of the Liquidator a general meeting of the
members of the dissolved society shall be called at which the Liquidator
shall summarise his proceedings, point out the causes of the failure of the
society, and report what sum, if any, remains in his possession after
meeting all the liabilities of the society, as determined under the rules.
(10) The record of a society that is being wound up shall be kept in
such place and by such person as the Registrar may direct.
39. Execution of orders. Every order passed by the Registrar under
Section 50-A, and every order issued under Section 55 shall, if not
carried out, be executed, in accordance with Section 59.
39-A. Recovery of costs of execution when property is not sold.
When recovery is made under Section 59 in execution of any order
referred to in the said Section, and the property is not sold in such
execution the Registrar may order the expenses of such recovery to be
paid by any party in default according to scale laid down by him not
exceeding in the aggregate five per centum of the amount of the dues.
40. Disposal of records of a society whose registration is
cancelled .(1)When an order directing a society to be wound up is issued
under Section 47 and no Liquidator is appointed, the officers of the society
which is would up shall, within 15 days of the publication of the order in the
Provincial Gazette send by registered book post or Railway parcel, the
records and books of the society to the Assistant Registrar or hand over
the same to the local Auditor.
(2) When the affairs of a society for which a Liquidator has been
appointed has appointed, have been wound up and an order cancelling
the registration is made under Section 49, the Liquidator will forward all the
books and records of the cancelled society, and all his own papers and
proceedings, by Railway parcel to the Assistants Registrar, together with
an account of his expanses, showing how the balance has been
disposed of and attaching the receipt of the person to whom it was
handed over.
(3) All the books and records of a society whose registration has
been cancelled and proceedings of liquidation completed shall be
destroyed by the Assistant Registrar, after the expiry of two year from the
date of the order cancelling he registration of the society.
41. Interest in Liquidation proceedings. On any debt, which is due
from a society that is being wound up, the creditor may prove for interest
up to the date of the Registrar’s order for winding up at a rate, which in the
case of the Provincial Co-operative Bank or Co-operative Bank or a
District Co-operative Bank or other Co-operative Bank permitted by the
Registrar to finance societies, shall be the contract rate, and in other
cases shall be a rate to be fixed by the Registrar and no exceeding the
contract rate:
Provided that, if any surplus assets remain after all liabilities,
including liabilities on shares, have been paid off, further interest on such
debts at a rate to be fixed by the Registrar and not exceeding the contract
rate may be allowed to creditors from the date mentioned above upto the
date of the repayment of the principal.
42. Service of summonses—miscellaneous. Summonses issued by
the Registrar, or by a person authorised to hold an inquiry or to make an
inspection or by the Auditor or Liquidator, or by the Registrar’s nominee,
under Section 58, shall, if sent for service to a Mukhtiarkar to be served
by such officer.
43. Fees to be credited to Government. All (fees) fines levied under
Section 61 and rule 42 shall be credited to Government.
44. Mode serving summonses. (1) A summons issued by any of the
officers mentioned in rule 42 may be served personally or through a
Mukhtiarkar or any member of the Co-operative Department or any
Honorary Organiser or Chairman or Secretary of the society or by
registered post, acknowledgement paid.
(2) The serving officer shall, in all cases in which summons has
been served, endorse or annex, or cause to be endorsed or annexed on or
to the original summons a return stating the time when, and the manner
in which, the summons was served, and the name and address of the
person (if any) identifying the person served and witnessing the delivery
or tender of the summons.
(3) The person issuing the summons may examine the serving
officer on oath, or cause him to be so examined by the Mukhtiarkar
through whom it is served, and may make such further inquiry in the
matter as he thinks fit; and shall either declare that the summons has
been duly served, or order it to be served in such manner as he thinks fit.
44-A. Procedure for the custody of property attached under Section
55 of the Act:
Attachment of movable property, other than agricultural produce
in possession of debtor. (1) where the property to be attached is
movable property, other than agricultural produce, in the
possession of the debtor the attachment shall be made by actual
seizure, and the attaching officer shall keep the property in his
own custody or in the custody of one of his subordinates, or of a
Receiver, if one is appointed under sub-rule (3) and shall be
responsible for the due custody thereof:
Provided that, when the property seized is subject to speedy and
natural decay, or when the expense of keeping it in custody is likely to
exceed its value, the attaching officer may sell it at once.
(2) Where it appears to the officer ordering conditional attachment
under Section 55 to be just and convenient, he may appoint a Receiver for
the custody of the movable property attached under sub-rule (1); and
his duties and liabilities shall be identical with those of a Receiver
appointed under Order XL of Schedule I to the Code of Civil Procedure,
1908.
Attachment of immovable property. (3) (i) Where the property to
be attached is immovable, the attachment shall be made by an
order prohibiting the debtor from transferring or charging the
property in any way, and al l persons from taking any benef i t f rom
such transfer or change.
(ii) The order shall be proclaimed at some place on or adjacent to
such property by beat of drum or other customary mode, and a
copy of the order shall be fixed on a conspicuous part of the Village
Chawdri, and also where the property is land paying revenue to the
Government, in office of the Collector of the district in which the
land is situated.
45. Restriction on membership of two credit societies. (1) No
person being a member of a co-operative credit society or any society
dispensing credit other than a land mortgage bank or a central
financing society or a sale society, shall be a member of any other
society of a similar type without the general or special sanction of the
Registrar and where a person has become a member of two or more
such societies, any or all such societies shall be bound to remove him
from membership upon receiving written requisition from the Registrar to
that effect.
(2) Credit societies or societies dispensing credit shall not admit
as members of an unregistered firm, partnership or association of
individuals.
45-A. The Registrar shall have power to expel from any
registered society a member who in the Registrar’s opinion is a
persistent defaulter or who does any act prejudicial to the interest of the
society:
Provided however that the member so expelled shall always
have the right to appeal to Government against such order.
46. Societies not be involved in controversial matters of a
religious character . No society may take any action which would
invoice the society in the discussion or propagation of controversial
opinions of a religious character, and the Registrar may prohibit any
action or rescind any resolution which in his opinion is of such a
tendency.
47. Registrar to keep a record of names, addresses and by-laws
of societies. The Registrar shall keep a register of the names and
addresses of all registered societies and shall record a copy of the
registered by-laws and subsequent amendments to the by-laws of such
societies.
48. (1) Notwithstanding anything contained in the by-laws of a society
the Registrar may, by order published with reasons thereof in the
Official Gazette, supersede the committee or a society for a period to be
specified in such order.
(2) The period of suspension specified in an order under sub-rule
(1) may from time to time be extended by the Registrar.
(3) All powers and duties of the committee shall, during the period
of supersession, be exercised and performed by such person or persons
not exceeding 9 as the Registrar may from time to time appoint in this
behalf.
(4) The person or persons appointed under sub-rule (3) shall hold
office for a period of 2 years.\
(5) On the expiry of every 2 year period, if the order of
supersession is still in force, fresh appointment of person or persons
shall be made by the Registrar for a period of 2 years, or for the period
during which the order of supersession is in force, whichever is less.
(6) Before making an order under sub-rule (1) or sub-rule (2) the
Registrar shall:
(a) give the society an opportunity to show cause why such
an order should not be made;
(b) if the society affiliated to a financing bank, consult such
bank regarding such action and the provision to be made
for management of the affairs of the society;
(c) if the society is the provincial Co-operative Bank Ltd.,
obtain the previous approval of the Provincial
Government.
(7) In the case of the Provincial Co-operative Bank, the appointment
of a person or persons under any of the foregoing sub-rules or the filling of
any vacancy shall be made by the Registrar with the previous approval of
the Provincial Government.
(8) Nothing in this rule shall affect the by-laws of the society
relating to the meetings of the committee.
(9) Nothing in this rule shall be deemed to affect the powers of
Registrar to cancel the registration of a society under Section 47.
49. Issue of proclamation prohibiting private transfers of
property. (1) The Registrar, Liquidator or Assistant Registrar acting
under clause (a) or clause (b) of sub- section (1) of Section 59 of the Act,
shall, at the same time that he signs a certificate affecting any property,
issue a proclamation in the form prescribed in Schedule ‘B’ annexed
hereto and, in the case of immovable property, shall also forward a copy
of the proclamation to the Mamlatdar of the Taluka in which the property is
situated.
(2) The Mamlatdar shall cause an entry about such certificate to
be made in the Record of Rights.
50. Transfer of property under section 59-A. (1) When in execution
of an order sought to be executed under Section 59 any property cannot
be sold for want of buyers, if such property is in the possession of the
defaulter, or of some person on his behalf, or of some person claiming it
under a title created by the defaulter subsequently to the issue of the
certificate by the Registrar, Liquidator or Assistant Registrar under
Clause (a) or (b) of sub-section (1) of the said section, the officer
conducting the execution shall as soon as practicable report the fact to (a)
the Court or the Collector, as the case may be, and (b) the society which
applied for the execution of said order.
(2) On receipt of a report under sub-rule (1) the society may, within
one month from the date of the receipt of the report, submit an application
in writing to the Court or the Collector, as the case may be, stating the terms
and conditions on which it agreed to take over such property.
(3) On receipt of an application under sub-rule (2) notices shall be
issued to the defaulter and to all persons known to be interested in the
property, including those whose names appear in the Record of Rights
as persons holding any interest in the property, about the intended
transfer.
(4) On receipt of such a notice, the defaulter, or any person
owning such property, or hold an interest therein by virtue of a title
acquired before the date of the issue of a certificate under Section 59
may within one month from the date of the receipt of such notice, deposit
with the Court or the Collector, as the case may be, for payment to the
society sum equal to the amount due under the order sought to be
executed together with interest thereon and such additional sum of
payment of costs and other incidental expenses as may determined in
this behalf by the Court or the Collector, as the case may be.
(5) On the failure of the defaulter, or any person interested or any
person holding any interest in the property to deposit the amount under
sub-rule (4), the Court or the Collector, as the case may be, shall direct the
property to be transferred to the society on the conditions stated in the
certificate in the form prescribed in Schedule ‘C’ annexed hereto.
(6) The certificate granted under sub-rule (5) shall state whether
the property is transferred to the society in full or partial satisfaction of the
amount due to it from the defaulter.
(7) If the property is transferred to the society in partial
satisfaction of the amount due to it from the defaulter, the Court or the
Collector, as the case may be, shall, on the production by the society of a
certificate signed by the Registrar recover the balance due to the society
in the manner prescribed in Section 59.
(8) The transfer of the property under sub rule (5) shall be affected
as follows:
(i) In the case of moveable property—
(a) Where the property is in the possession of the
defaulter himself or has been taken possession of on
behalf of the Court or the Collector it shall be delivered to
the society.
(b) Where the property is in possession of some
person on behalf of a defaulter, the delivery thereof shall
be made by giving notice to the person in the possession
directing him to give actual peaceful possession to the
society and prohibiting him from delivering possession
of the property to any other person.
(c) The property shall be delivered to a person
authorised by the society to take possession on behalf of
the society.
(ii) In the case of immovable property—
(a) Where the property is a growing or standing crop, it
may be delivered to the society before it is cut and
gathered and the society shall be entitled to enter on the
land, and to do all that is necessary for the purpose of
tending and cutting a gathering it.
(b) Where the property is in the possession of the
defaulter or of some person on his behalf or some person
claiming under a title created by the defaulter
subsequent to the issue of a certificate under Section 59,
the Court or the Collector, as the case may be, shall order
delivery to be made by putting the society or any person
whom the society may appoint to receive delivery on its
behalf in actual possession of the property and if need be
by removing any person who illegally refuses to vacate
the same, after holding an inquiry as provide in rules 13-
A to 13-C of the rules regulating execution of decrees
transferred to the Collector under Section 68 of the Code
of Civil Procedure, 1908.
(c) Where the property is in the possession of a tenant
or other person entitled to hold the same by a title
acquired before the date of issue of a certificate under
Section 69, the Court or the Collector, as the case may
be, shall order delivery to be made by affixing a copy of
the certificate of transfer of the property to the society in
some conspicuous place on the property and
proclaiming to such person by beat of drum of other
customary mode at some convenient place, that
interest of the defaulter has been transferred to the
society.
(9) The society shall be required to pay expenses incidental to
sale including the cost of maintenance of livestock, if any, according to
such scale as may be fixed by the Government from time to time.
(10) Where land is transferred to the society under clause (ii) (a) of
sub-rule (8) before a growing or standing crop is cut and gathered the
society shall pay the current year’s land revenue on the land.
(11) The society shall forthwith report any transfer of property
under clauses (ii) (b) or (c) of sub rule (8) to the village accountant for
information and entry in the Record of Rights.
(12) The society to which property is transferred under sub-rule (5)
shall maintain for each such defaulter a separate account showing all the
expanses including payment of outside encumbrances, land revenue
and other dues on the property and all the income derived from it.
(13) The society to which property is transferred under sub-rule (5)
shall use its best endeavour to sell the property as soon as practicable to
the best advantage of the society as well as that of the defaulter the first
option being always given to the defaulter who originally owned the
property. The sale shall be subject to confirmation by the Assistant
Registrar. The proceeds of the sale shall be applied to defraying the
expenses of the sale and other expenses incurred by the society as
referred to in sub-rules (9) and (12) and to the payment of the arrears due
by the defaulter under the order in execution and the surplus (if any) shall
then be paid to the defaulter.
(14) Until the property is sold, the society to which the property is
transferred under sub-rule (5) shall use its best endeavour to lease it or
to make any other use that can be made of it so as to derive the largest
possible income from the property.
(15) When the society to which property is transferred under subrule
(5) has realized all its dues under the order in execution of which the
property was transferred from the proceeds of management of the
property, the property, if unsold, shall be restored to the defaulter.
51. The deduction from salary or wages under sub-section (1) of
Section
65-A, shall not exceed one-third, round off in the manner provided in this
rule, of the salary or wages payable to a member of a society, the
rounding off shall be done by deleting all fractions of a rupee up to but
excluding half and counting half and all higher fractions as one rupee.
52. Power and duties of the committee. (1) The business of every
registered society shall be managed by the committee subject to the
provisions of the Act and these rules and subject to such by-laws, not
being inconsistent with the Act or these rules as have been passed in
general meeting and registered under the Act; but no by-law registered
under the Act, shall invalidate any prior act of the committee which
would have been valid if that by-law had not been made registered.
(2) The committee shall take such security from servants and
officers of the society as the committee may decide with the sanction of
the Registrar.
(3) If, in the opinion of the Registrar the number of persons who are
employed by a committee as officers or servants or whom a society
proposes to employ or the remuneration assigned by the committee to
those persons or to any particular person is excessive, the committee
shall, on the requirement of the Registrar, reduce the number of the said
persons; or the remuneration of the said person or person: Provided that
the committee may appeal against any such requirement to the
Provincial Government, whose decision shall be conclusive.
(4) Notwithstanding anything contained in the by-laws of any
society, except societies with unlimited liability and those having less
than Rs.20,000 paid up share capital, a committee shall not sanction a
loan in any form to a member of the committee or to an officer or servant
of the society without the prior sanction of Registrar:
Provided that if such sanction is refused the borrower may appeal to
the Government against the orders of the Registrar.
Explanation. For the purpose of this sub-rule, grant of a loan
includes surety ship for a loan.
(5) Notwithstanding anything contained in the by-laws of a society
other than a land mortgage bank, the committees shall not advance a
loan in any form of a total period exceeding three years, inclusive of
extensions, if any, and shall not deposit or invest its funds in the 1st
mortgage on immovable property under Section 37 of the Act, without the
prior sanction mentioned in sub-rule (4) of this rule.
(6) Notwithstanding anything contained in the by-laws of a society,
the committee shall not grant any extension to a member in respect of
debts or demands due by such member to the society, after the dispute
has been referred to arbitration under Section 54 without the prior
sanction mentioned in sub-rule (4) of this rule.
(7) The committee of every bank shall frame rules with the
sanction of the Registrar to regulate the grant of loans to members of the
society. The rules shall prescribe the maximum limits of loans which
can be granted to a member, inclusive of loans for which a member is
surety under the various classes of loans. Such rules may be amended
with the prior sanction of the Registrar.
53. Qualification of members of committee. (1) No member of a
society shall be on the committee elected under the by-laws:
(a) Who —
(i) has been sentenced by a criminal Court to
imprisonment or whipping for an offence punishable with
imprisonment for a terms exceeding six month, or to
transportation, such sentence not having been
subsequently reversed or quashed if, and, so long as
such sentence has not expired; or
(ii) has been removed from office under rule 48, unless he
has by an order which the Registrar is hereby
empowered to make in this behalf, has been relieved
from the disqualification arising on account of such
sentence or removal from office; or
(b) Who is an uncertified bankrupt or an undischarged insolvent or
legally disabled, to contract; or
(c) Who is less than 21 year of age; or
(d) Who is of unsound mind; or
(e) Who is declared by the Registrar to be a persistent defaulter; or
(f) Who is a servant or officer and at the same time a borrower of
the society.
(2) In co-operative banks and in such societies as, have a paid-up
share capital of Rs.20,000 or above, no member of the society shall be in
the committee—
(a) who suffers from any of the disqualification specified in subrule
(1); or
(b) who is a borrower or surety of a borrower, unless the has
obtained the previous permission from the Financing Bank to
which the society is indebted or of the Federation or Union to
which the society is affiliated, or of the Registrar if the society is
not so indebted or affiliated; or
(c) who is interested, directly or indirectly in any contract or
employment with or under or by or on behalf of the society; or
(d) who does not hold shares of the paid-up value of at least
Rs.500; or
(e) in case of a representative of society, if he or the society of
which he is a member, is a defaulter in payment of a loan to
the bank or society from which he or it has borrowed a loan:
Provided, however, that a person referred to a clause (e) of subrule
(1) or clause (a) of this sub-rule may appeal to the Government for the
removal of the disability operating in his case.
(3) The provisions of sub-rules (1) and (2) of this rule shall apply
notwithstanding anything contained in the by-laws of a society but shall
not apply to the Punjab Provincial Co-operative Bank Ltd., the Sind
Baluchistan Provincial Co-operative Bank Ltd., the Frontier Co-operative
Bank Ltd., and the Abbasia Co-operative Bank Ltd.
(4) Where it appears to the Registrar that a member of a
committee is not qualified or has become disqualified from being or
continuing as a member of such committee under the provisions of subrules
(1), (2) and (3) or rule 55, the Registrar shall issue a notice to such
member to show cause why he should not be removed from his office;
and if on receipt of the notice, such person either fails to show cause
against the proposed action, or if the Registrar, on considering any cause
shown by such member, is satisfied that such member is not qualified or
has become disqualified from being continuing as a member of the
committee, the Registrar shall direct that such member shall with
immediate effect, cease to be a member of the committee, and such
member shall thereupon cease to be a member of the committee from the
date of such direction.
54. Investment of funds. A society may, with the previous sanction of
the Registrar, invest its funds or any portion thereof in the purchase or
lease of land or buildings or in the construction of buildings required for the
conduct of its business.
55. Power to make Rules. (1) The committee of every Co-operative
Bank and society having a working capital of over Rupees one lac,
shall frame rules for regulating the appointment, removal, dismissal and
promotion of its employees.
(2) The rules to be made under sub-rule (1) shall not be deemed to
be in force until they have been approved by the Registrar.
(3) The Registrar may, in respect of any post under a society
referred to in sub-rule (1), lay down the technical and educational
qualifications of persons to be appointed to such post and also the
security or securities to be obtained from such persons and no person
shall be appointed to such post who does not possess such technical
and educational qualifications and furnish security or securities.
(4) Except with the previous sanction of the Registrar, no relative of
any member of the committee or of the Honorary Secretary of such society
shall be appointed in the service of the society.
(5) No person shall be elected on the committee of such a society or
appointed Honorary Secretary of such society if any relative of his is in the
service of the society.
(6) If a person is elected on the Committee of such a society, or is
appointed as the Honorary Secretary of such a society, and it is at any
stage discovered that any relative of his is in the employment of the
society, such person shall cease to hold office on the committee or as
Honorary Secretary, as the case may be.
Explanation. For the purpose of the Rule, a person shall be
deemed to be a “relative” of another, if he is either related to such person
through a common ancestor not more remote than a grandfather, or is
married to a person who is so related to such other person.
__________________
If you tremble with indignation at every injustice then you are a comrade of mine.(Che Guevara)
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