|3) Persons appointed to assist the Registrar.
(1) Joint Registrar Deputy Registrar or Assistant Registrar.
(2) The Lt. Governor may confer on any person appointed to assist the Registrar all or such of the functions Persons appointed to assist the Registrar under section 3 may be designed as the Additional Registrar, and powers of the Registrar under the rules as may be specified by him by order made in writing.
(3) The Registrar may appoint other field and ministerial staff to enable him or other officers to whom powers of the Registrar have been conferred to carry on his functions efficiently and for the promotion of the co-operative movement.
The existing Sub Rule (4), (5) + (6) shall be deleted (deleted on 9.9.88)
(4) Classification of co-operative Societies.
(1) subject to the provisions of sub-section (1) of section 4, a co-operative society formed with the object of facilitating the operation of any one of the classes or sub-classes hereinafter given shall be classified as a co-operative society of that class or sub-class namely:- .
(a) "Resource-Society" means a co-operative society formed with the objective of obtaining for its members the credit, goods or services required by them such as:
(i) Thrift and Urban Credit Co-operative Society.
(ii) Agricultural Credit Co-operative Society.
(iii) Agricultural Non-Credit co-operative society.
(iv) Multipurpose Co-operative society which includes amongst its primary objects specified in (ii) and (iii) above.
(v) Urban Thrift & Credit Co-operative Bank.
(vi) Co-operative Bank.
(vii) Co-operative Land Mortgage Bank.
(viii) (a) Industrial Producers Co-operative Society.
(b) Weavers' Co-operative Society.
(c) Labour and Construction Co-operative Society.
(d) Industrial Processing Co-Operative Society.
(e) Motor Transport Co-operative Society.
(f) Industrial Service Co-operative Society.
(ix) Housing Finance Co-operative Society (Added on 8.3.93 vide notification No. F-4T/9/GH/Ceop/920)
(x) Thrift & Retirement and other ancillary benefits co-operative society. (Added on 24.8.93)
(b) "Producers' society" means a Co-operative Society formed with the object of producing and disposing of goods as the collective property of its members and includes a co-operative society formed with the object of the collective disposal of the labour of the members of such co-operative society.
(c) "Consumers' Society" means a co-operative society formed with the object of obtaining and distributing goods to or of performing services for its member, as well as to other consumers within the area of operation specified in the bye-laws, and of dividing among its members and customers in a proportion prescribed by the rules or by the bye-laws of such co-operative society, the profits accruing from such supply and distribution.
(d) "Housing Society" means a co-operative society formed with the object of providing its members with dwelling houses subject to the provisions of these rules and on the conditions to be determined by the Lt. Governor from time to time and may be of any of the following types:-
(i) "Tenant Ownership Housing Co-operative Society" where land is held either on lease hold or free hold basis by the co-operative society and the houses are to be owned by members.
(ii) "Tenant Co-partnership Housing Co-operative Society" which holds both land and buildings either on lease hold or free hold basis and allots them to the members.
(iii) "Plot-holders Housing Co-operative Society" which acquires land either on lease hold or Free hold basis, develops it into a residential area according to lay-out plan approved by the prescribed authority and sells residential plots to its members on the leasehold or free-hold basis.
(iv) "Plot Owners Housing Maintenance Co-operative Society", where the flats are owned by individuals in the Multi storeyed Buildings on lease hold or free hold basis. (Added on 24.5.82)
The existing Sub Rule (d), (ii) (deleted Vide Notification No. F47/9/GH/Coop./920 dt. 8.3.93)
(e) "Processing Society" means a co-operative society the object of which is the processing of goods by mechanical or manual process.
(f) "Marketing society" means a co-operative society formed for the purpose of marketing agricultural or other produce and includes amongst its objects, the supply of the requisites of such production.
(g) "Joint Farming Society" means a co-operative society in which with the objecfof increasing agricultural production, employment, income and better utilization of resources, land held by members is pooled together and is jointly cultivated by the members on behalf of the co-operative society.
(h) "Collective Farming Society" means a cooperative society in which the object of increasing agricultural production land is acquired from outside in the name of cooperative society and is collectively and jointly cultivated by the members themselves on behalf of the cooperative society.
(i) "Co-operative Union" means a co-operative society which has as its principal object the undertaking of Co-operative Education, Propaganda And Training.
(2) Every Co-operative Society shall be classified by the Registrar in accordance with sub-ruled)
(3) The Registrar may sub-divide any class of Co-operative Societies into categories with reference to the composition of their membership, the nature of business transacted by them or the articles handled by them or any other similar consideration.
(4) If any co-operative society classified as aforesaid is a federal society it may be classified as Apex or Central Cooperative Society.
NOTE:- (i) "Apex Co-operative Society" means a co-operative society whose area of operation extends to the whole of the Union territory of Delhi and which has as its principle objects the promotion of the principal objects and provisions of facilities for the operation of other co-operative societies affiliated to it.
(ii) "Central Co-operative society" means a co-operative society whose area of operation is confined to a specified part of the Union Territory of Delhi and which has as its principal object the promotion of the principal objects and the provision of facilities for the operation of other co-operative societies affiliated to it.
(5) If any question arises as to the class to which a cooperative society belongs within the meaning of this rule, the question shall be referred to the Registrar whose decision shall be final.
5. Procedure for conversion of a co-operative society Into a different class.
(1) Any co-operative society may, at a meeting of its general body specially called for the purpose, of which at least seven clear days' notice has been given to its members, resolve to convert itself by an amendment of its bye-laws into a co-operative society of a class different from the one to which it belongs. The said resolution (hereinafter In this rule referred to "as the preliminary resolution") shall include the amendments to the bye-laws proposed for adoption by this co-operative society.
(2) (i) A copy of preliminary resolution shall be sent to the members and creditors of the society;
(ii) Any member of the co-operative society may, notwithstanding any bye-laws to the contrary by notice-given to the cooperative society within a period of one month from the date of receipt by him of the preliminary resolution intimate his intention to withdraw his share capital from the co-operative society-.
(iii) Any creditor of the co-operative society may, notwithstanding any agreement to the contrary, by notice given to the cooperative society within the period referred to in clause (ii).. intimate his intention to demand a return of the amount due to him.
(3) After the expiry of two months from the date of dispatch of the preliminary resolution to all the members and creditors of the co-operative society, a meeting of the members of the co-operative society, of which at least fifteen clear days' notice shall be given to its members shall be convened for considering the preliminary resolution. If, at such meeting, the preliminary resolution is confirmed by a resolution passed by a majority of not less than two-thirds of the members present and voting either Without changes or with such changes as, in the opinion of the Registrar, are not material, he may, on receipt of a copy such resolution certified in the manner specified in the rules and subject to the provisions of section 11, register the amendment to the bye-laws adopted by the co-operative society. On such registration the conversion shall be deemed to have taken effect.
The opinion of the Registrar as to whether the changes made in the preliminary resolution are or are not material shall be final.
(4) At the meeting referred to in sub-rule (3) provisions hall be made by another resolution for:-
(i) the repayment of the share capital of the members who have given notice under clause (ii) of sub rule (2), and
(ii) the satisfaction or the claims of all the creditors who have given notice under clause (iii)of sub-rule (2).
Provided that no members or creditor shall be entitled to such repayment or satisfaction until the preliminary resolution is confirmed as provided in sub-rule (3).
(5) If, in the opinion of the Registrar, the provision made for the repayment of the share capital of the members and the satisfaction of the claims of creditors referred to in sub-rule (4) is not satisfactory, the Registrar may refuse to register the amendment to the bye-laws adopted by the co-operative society.
6. Application for Registration
(1) Every application for registration of a co-operative society under sub section (1) of section 7 shall be made in Form (i) in Hindi or English, and shall subject to the provisions of sub-rules (ii) and (iii), be duly signed by the applicants and be accompanied by:-
(a) four copies of the proposed bye-laws of the co-operative society duly signed by each of the persons who sign the application for registration.
(b) A certificate from the Financing Bank that the amount of share capital raised by the promoters has been deposited in the name of the proposed co-operative society in suspense account.
(c) A list for persons who have contributed to the share capital together with the amount contributed by each of them, and the entrance fee paid by them.
(d) The scheme showing the details explaining how the working of the co-operative society will be economically sound and, where the scheme envisages the holding of immovable property by the co-operative society, the description of immovable property proposed to be purchased, acquired or transferred to the co-operative society the scheme shall be drawn in accordance with the viability norms for registration of different classes/types of societies as given in Schedule VII to these rules. These norms can be modified by the Registrar from time to time. (Amended on 6.8.97)
(e) Such other documents as may be specified in the model bye-laws, if any.
(f) A declaration on oath from each of the promoters to the effect that, he is not a member of the family of any other promoter joining in the application for registration within the meaning of explanation given under section 5.
(g) In the case of a housing co-operative society an affidavit from each of the promoter members:
(i) that he does not own a residential house or plot of land for construction a residential house thereon in his own name or in the name of his wife or dependent children on lease-hold or free hold basis in the Union territory of Delhi.
(ii) that he or his wife or any of his dependent children is not a member pf any other housing society;
(iii) that he or his wife or any of his dependent children is not dealing in the business of purchase or sale of house/land in the Union Territory of Delhi directly or indirectly either as a principal or an agent,
(h) a statement showing financial position of each of the promoters.
(i) Certified copy of the resolution of the promoters which shall specify the name and address of one of the applicants to whom the Registrar may address his correspondence under the rules before registration and dispatch or hand over registration documents referred to in sub-rule (3) of rule 8.
(2) Where any member of a co-operative society to be registered is a registered co-operative society, a member of the committee of such a registered co-operative society shall be authorised by the committee by 6 resolution to sign the application for registration and the bye-laws on its behalf, and a copy of such resolution shall be appended to the application.
(3) Where any member of a co-operative society to be registered is a firm, company, corporate body, society registered Under the societies Registration Act 1860, or public trust registered under any law for the time being in force relating to registration of pubic trusts, or a local authority, then such firm, company, corporate body, society, public trust or local authority shall duly authorised any person to sign the application for registration and the bye-laws on its behalf, and a copy of such authority shall be appended to the application.
(4) The application shall be sent to sent to the Registrar by registered post, or delivered by hand.
(5) On receipt of an application under rule 6, the Registrar shall enter Particulars of the application in the register of applications to be maintained in form 2, give a serial number to the application and issue a receipt in acknowledgement thereof.
7. Disposal of application for registration
(1) On receipt of the application under rule 6 and before passing final order under section 9 the Registrar may call for such further information from the applicants or make such independent enquiries as he may deem fit.
(2) Registrar may give, whenever necessary, the reasonable time not exceeding one month to the promoters to modify the proposed byelaws before finally registering the Co-operative Society which should be within the limit prescribed under section 9 of the Act. (Amended on 9.9.98)
(3) On registering a co-operative society and its bye-laws under sub-section (1) of section 9, the Registrar shall, as soon as may be, notify the registration of the cooperative society in the official Gazette and grant to the coop. society a certificate of registration in Form 3 signed by him and bearing his official seal and containing the registration number of the co-operative society, and the date of its registration. The Registrar shall also furnish the co-operative society a copy of the byelaws approved and registered by him with a certificate in the following form recorded on the last page of the bye-laws after the signatures of the promoters:-
Certified that these bye-laws have, been registered under section 9(1) of The Delhi Co-operatives societies Act, 1972 at page .............................. Volume No..................... this.................day of...................19
(4) The documents referred in sub-rule (3) shall be delivered to a person authorised or shall be dispatched by post under "acknowledgement due" registered cover.
8. Maintenance of register.
(1) The Registrar shall maintain a register in Form 4 of all-co-operative societies registered or deemed to be registered under the Act.
(2) The Registrar shall divide the register into several parts, one for each of the following classes of co-operative societies:-
(3) The Registrar shall assign for each class or sub-class of co-operative society a code symbol for giving registration No. to the co-operative society and the co-operative society shall be registered from the date specified in the certificate of registration.
(4) All the existing co-operative societies shall be deemed to be registered under the Act, and shall first be entered in the register under distinct code symbol assigned to a class of co-operative societ3to which the existing co-operative society belongs in chronological order with reference to the date of earlier Registration deemed to be the registration under the Act. A list of all such co-operative societies shall be published in Form 9 in the official Gazette soon after the publication of the notification under sub-sec. (3) of section 1.
(5) If the particulars of any existing co-operative society deemed to be registered under the Act are not so published or published under classification different from the aims and objects in the existing registered bye-laws, the existing co- operative society shall make an application in writing to the Registrar within 30 days of the publication of the list referred to in sub-rule (4) for the publication of its name in the official Gazette.
(6) On receipt of the application under sub-rule (5), the Registrar, after making such enquiries as may be deemed fit by him, shall pass appropriate order thereon.
(7) After entering the existing co-operative society in the register, new co-operative society to be registered under the Act shall be entered in the register.
(8) The Registrar shall keep in separate guard files in loose leaf system in respect of each part of the register referred to in sub-rule (2) wherein copies of registered bye-laws of the co-operative society shall be kept in chronological order of the registration. Each page in this file shall be serially numbered. Each volume of this file shall be given its distinct serial number.
9. Commencement of business
Every co-operative society shall commence working within three months from the date of its registration.
10. Form of report under proviso to sub section (3) of section 9.
The report to be made by the Registrar to the Lt. Governor under the proviso to sub-section (3) of section 9 shall be in Form 6.
11. Refusal to register
Without prejudice to the generality of the power under sub-section(Z) of section 9, the Registrar may refuse to register a co-operative society on any one of the following grounds:-
(1) No co-operative society shall be registered by the name which is identified with or which nearly resembles the name by which a co-operative society is in existence and has been previously registered orthenam9.is in contravention of any law for that time being in force. (Amended on 24.5.82)
(2) No proposal for the registration of a co-operative society may be accepted by the name which is likely in the opinion of the Registrar, to deceive or mislead the members of the public as to its nature of identity.
(3) The Registrar may not consider the proposal favourably if in his opinion the aims and objects of the co-operative society are similar to those of a co-operative society already functioning in that area satisfactorily.
(4) Except otherwise permitted, the members of a co-operative society do not reside within the area of its operation or in the opinion of the Registrar are drawn from heterogeneous elements.
(5) If in the opinion of the Registrar area of operation of a co-operative society extends over an un-manageable area.
(6) The proposal for registration of a co-operative society is against the principles of co-operation.
(7) Any other ground considered just and equitable by the Registrar.
12. Matters in Respect of which Registrar may direct society to make bye-laws or society may make bye-laws.
(1) The Registrar may require a co-operative society to make bye-laws in respect of all or any of the following matters, namely:-
(a) the name of the co-operative society, address of the co-operative society and its branches:
(b) the area of operation;
(c) the objects of the co-operative society;
(d) the manner in which and the limit up to which the funds of the co-operative society may be raised, the maximum share capital which any one member may hold and the purpose to which the funds would be made applicable;
(e) the terms and qualifications for admission to membership;
(f) the privileges, rights, duties and liabilities of members including nominal, associate and sympathiser members;
(g) the consequences of default of members;
(h) conditions regarding sale or disposal of produce of members, wherever applicable;
(i) In the case of Credit Co-operative Societies:
(i) The maximum loan admissible to a member;
(ii) The maximum rates of interest on loans to members;
(iii) The conditions on which loans may be granted to members and penalties for misapplicable of loans so advanced,
(iv) The procedures for granting extension of time for the repayment of loans and advances;
(v) The consequences of default;
(vi) The circumstances under which a loan may be recalled:
(j) In the case of non-credit co-operative society, the mode of conducting business, such as manufacture, purchase sale, stock-taking and other like matters;
(k) In the case of a composite co-operative society, that is to say. society having both credit and non-credit functions, matters referred to in clauses (i) and (j);
(1) The mode of holding meetings of the general body and of the committee;
(m) The procedure for expulsion of members;
(n) The manner of making, altering and abrogating bye-laws;
(o) The mode of appointment either by election or otherwise and removal of members of the committee and other officers. if any, their duties and powers;
(p) The Chairman's or President's powers, duties and functions and his removal on his losing support of the majority;
(q) The method of recruitment, the conditions of service and the authority competent to fix, revise or regulate the scale of pay and. allowances of salaried officers and servants of the co-operative society and the procedure to be followed in the disposal of disciplinary case against them;
(r) The mode of custody and investment of funds and mode of keeping the accounts and records;
(s) The manner in which penalty should be levied on a member who is found to be guilty of breach of bye-laws;
(t) The disposal of net profits;
(u) Appointment of a provisional committee, where necessary;
(v) The mode of appointment and removal of committee and its powers and duties;
(w) The mode of convening annual and special general meetings, issue of notices, and the business which may be transacted there at;
(x) In the event of winding up of the society, the purpose for which surplus, if any, shall utilised;
(y) The conduct of election to the committee and other bodies of the co-operative society as provided in the bye-laws, including the number of members to be elected by different constituencies and appointment of returning officer:
(z) Any other matter incidental to the management of its business.
(2) A co-operative society may make bye-laws for "H or any of the following matters that is to say:-
(a) the circumstances under which withdrawal from membership may be permitted;
(c) the conditions, if any, under which the transfer of share or interest of member may b6 permitted;
(d) the method of appropriating payments made by members from whom moneys are due:
(e) the authorisiation of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the co-operative society;
(f) the constitution and maintenance of various funds as required to be maintained under the provisions of the Act, rules and bye-laws;
(g) constitution of representative general body consisting of delegates of members of the society and the mode of election of such delegates to exercise the powers of the general body and to specify the powers which may be exercised by such representative general body.
13. First Bye-law of a Co-operative Society.
When a co-operative society has been registered, the bye-laws of the co-operative society as approved and registered by the Registrar shall be the bye-laws of the society.
14. Model Bye-Laws
The Registrar shall make model bye-laws of each class or sub-class of a co-operative society which may be adopted with or without changes, if any.
15. Amendment of Bye-law.
(1) Subject to the provisions of this rule, the bye-laws of a co-operative society may be amended by-passing a resolution at a meeting of its general body held for that purpose.
(2) The co-operative society shall give due notice in accordance with its bye laws to all the members for considering any amendment thereof.
(3) An amendment shall be deemed to have duly passed, if a resolution in that behalf is passed at a meeting of its general body by not less than two-thirds of the members present there at, and voting.
(4) After the resolution is passed, a copy thereof shall, within a period of two months from the date of the meeting at which the resolution was passed, be furnished to the Registrar along with:-
(a) a copy of the relevant bye-laws in force with amendments proposed to be made in pursuance of the resolution, together with reasons justifying such amendments;
(b) four copies of the text of The bye-laws as they would stand after amendment, signed by the officers duly authorised in this behalf by the committee of the society;
(c) a copy of the notice given to the members of the society of the proposal to amend the bye-laws;
(d) such other information as may be required by the Registrar;
(5) On receipt of the copy of the resolution and other particulars referred to in sub-rule (4), the Registrar shall examine the amendment proposed by the society and if he is satisfied that the amendment is not contrary to the Act or the rules and is in the interest of the cooperative society and co-operative movement, he may register the amendment certified by him under sub-section (3) of section 11. Where the Registrar is of the opinion that the proposed amendment may be accepted subject to any modification, he may indicate to the cooperative society such modification after explaining in writing his reasons therefore. The Registrar shall register or refuse to register the. amendment within a period of three months. In case no decision is arrived at within that period of three months, the Registrar may after reasons to be recorded in writing extend the period for another one month. The power of extending the period shall not be delegated to any other person appointed to assist the Registrar. (Amended on 8.8.97).
16. Manner of Calling Upon Society to make Amendment to Bye-Laws
(1) If it appears to the Registrar that an amendment of a bye-law of a co-operative society is necessary or desirable in the interest of such co-operative society, he may call upon the co-operative society to make the amendment.
(2) The Registrar may by serving a Notice in form 7 call upon a society to make an amendment within a period of sixty days, by convening a general body meeting of the society. (Amended on 8.8.97)
(3) After the expiry of the period specified in the notice under sub-rule (2), and if the society fails to make the amendment, the Registrar after giving the co-operative society an opportunity of being heard, may register the amendment and issue to the co-operative society a copy of such amendment certified by him with a certificate) signed by him. With effect from the date of registration, the amendment is binding on the co-operative society and its members subject to appeal, if any.
All amendments of the bye-laws relating to the same co-operative society when registered by the Registrar shall be assigned a consecutive number in chronological order and shall be noted in index to the bye-laws to be maintained by the co-operative society in the registration file.
17. Registration File
Each co-operative society shall keep at its registered address a registration file containing:-
(a) Registered bye-taws.
(b) An index of amendment of bye-laws.
(c) All registered amendments to the bye-laws duly entered in the index along with certificates of registration of amendments.
(d) Certificate of registration.
(e) A copy of the Act.
(f) A copy of rules.
(g) The above File shall be open for inspection at all times during working hours to the Registrar or any other officer authorised by him and every member of the society.
18. Change in Name of Society.
1. The name of a co-operative society may be changed under section 14 so however that it does not refer to any caste or religious or regional denomination and is not inconsistent with the objects of the co-operative society. (Amended on 9.9.88)
2. Every change in the name of a co-operative society shall be made by amendment 6f its bye-taws and shall be notified in the official Gazette.
3. After the change in the name is approved by the Registrar the Co-operative Society shall send the original registration certificate for amendment to the Registrar, who shall return the same to the cooperative society duly amended.
19. Change in Liability
1. The change of liability of a co-operative society from unlimited to limited and vice-versa or in terms of multiple of share capital, shall be secured by passing a resolution in that behalf at a general meeting of the co-operative society indicating in clear terms the manner of changing the liability. The co-operative society shall give 30 days notice in writing of such meeting to all its members and creditors and shall furnish them with copies of the resolution proposed to be moved at the meeting. After the resolution is duly moved and passed, a copy thereof shall be send to the Registrar within three months of its passing.
2. Every notice to be given by the co-operative society under sub-sec. (2) of section 14 shall be sent by post under certificate of posting or other wise to the address of each of its members and creditors gs recorded in the book of the co-operative society. A copy of such notice shall be exhibited on the notice board of the co-operative society and a copy shall also be sent to the Registrar for exhibition on the notice board in his office; and thereupon, notice of the resolution to change the form or extent of its liability shall be deemed to have been duly given to all its members and creditors, notice not being send to their correct address or notice not being received by them, notwithstanding.
3. For the purpose of determining the claims of a member under clause (b) of sub-sec. (4) of sec. 14 the value of a share of a member in a co-operative shall be ascertained as follows:-
a. In the case of a co-operative society with unlimited liability, the value of the share shall be the actual amount received by the co-operative society in respect of such share.
b. In the case of the co-operative society with limited liability, the value of the share shall be the amount arrived at by a valuation based on the financial position of the -co-operative society as shown in the last audited balance sheet, provided that it shall not exceed the amount actually received by the co-operative society in respect of such share.
Explanation - For purposes of this rule, form of liability refers to limited or unlimited while 'extent' of friability means (a) face value of share (b) the multiple of the value of shares subscribed, and (c) value limited as to particular amount (such as guarantee liability) etc.
4. Any member or creditor desiring to exercise his opinion under sub-sec. (2) of sec. 14 shall inform the co-operative society accordingly in writing and where he does not propose to withdraw hih entire shares or deposits, the members or creditor shall clearly indicate in writing the extent of his withdrawal. The option once exercised shall be final and shall not be revoked. The co-operative society shall examine and draw up a scheme for orderly payment of all the claims in an equitable manner including shares, the value to which shall be ascertained in accordance with the provisions of sub-rule (3). the scheme may also provide for settlement of claims by mutual agreement. Where Registrar does not approve the scheme on the ground of impracticability or undesirability, the resolution passed by the society under sub-rule (1) shall be ineffective, and the form and extend of liability of a co-operative society shall not be deemed to be changed in accordance with the resolution passed aforesaid.
5. After the Registrar approves the scheme, the cooperative society shall make payments to members and creditors as provided in clause (b) of sub-sec. (4) of sec. 14 and make a report to that effect to the Registrar and furnish the Registrar with a proposal to amend the bye-laws of the co-operative society duly passed in the behalf. On receipt of the proposal, the Registrar shall register the amendment in accordance with the provisions of section 11.
20. Amalgamation, Transfer of Assets and Liabilities, Division or Conversion of Societies
1. Every co-operative society desiring to effect amalgamation, transfer of assets and liabilities, division or conversion, shall make an application to the Registrar in that behalf giving full details about such amalgamation, transfer, divisionor conversion, as the case may be.
2. On receipt of the application referred to in sub-rule (1), the Registrar may invite opinions from members and shareholders or creditors or from any other person who in the opinion of the Registrar is interested in the affairs of the co-operative society and may call for such further information or particulars from the co-operative society as he may deem necessary.
3. On receipt of such application, the Registrar may, after examining the details furnished in the application and after considering all suggestions received by him in response to his invitation referred to in sub-rule (2), and other particulars which he may call upon the co-operative society to furnish, give his approval to the amalgamation, transfer, division or conversion, as the case may be, in the interest of the co-operative society.
4. After the receipt of the approval of Registrar under sub-rule (3), the co-operative society shall convene a special general meeting by giving notice of at least 15 clear days to all its members and creditors and pass a resolution for amalgamation, transfer of assets and liabilities, divisionor conversion, as the case may be, by two-third majority of the members present and voting at the meeting. The resolution so passed shall contain the purpose and the full scheme indicating how the proposed amalgamation, transfer or division or conversion would be useful to the co-operative society and be given effect to where the scheme involves transfer of liabilities of the co-operative society to another co-operative society, a statement to that effect shall be made in the application to be made under sub-rule (1). where the scheme involves transfer of liabilities of the co-operative society, the co-operative society shall give written notice in Form 8 to all the members, creditors and other persons whose interests are likely to be affected by such transfer. The notice shall also be published in at least one newspaper in English and one in Vernacular language in circulation in the Union Territory of Delhi and a copy thereof shall be exhibited on the notice board in the office of the co-operative society and the Registrar.
5. Within one month from the date of notice referred to in sub-rule (4), the members, creditors and other persons whose interests are likely to be affected by the transfer of the liabilities of the co-operative society may exercise their option as required by sub-section(4) of section is in writing duly signed by them and delivered or caused to be delivered to the co-operative society, 'failing which they shall be deemed to have assented to the transfer of liabilities of the co-operatives society to another co-operative society. The option one exercised shall be final and shall not be revoked.
6. The co-operative society shall meet in full or otherwise satisfy all claims of members and creditors and other interested persons who exercise the option.
7 For the purposes of determining the claims of a member under clause (b) of sub-section (6) of section 15, the value of the share of a member shall be ascertained as follows:-
(a) In the case of a co-operative society with unlimited liability, the value of a share shall be the actual amount received by the co-operative society in respect of such share.
(b) In the case of a co-operative society with limited liability, the value of a share shall be the amount arrived at by a valuation based on the financial position of the 'C9-operative society as shown in the last audited balance sheet provided that it shall not exceed the actual amount received by the co-operative society in respect of such share.
8. The co-operative society shall submit a report to the Registrar of the action taken by it and request him to give effect to its decision for amalgamation, transfer, division or conversion by registering the amalgamated or converted co- operative society or the new co-operative society as the case may be and canceling the registration of the cooperative societies which have been amalgamated, divided or converted.
9. On receipt of the report from the cooperative society under sub-rule (8) the Registrar shall, after satisfying himself that the procedure has been properly followed, register the amalgamated, divided or converted cooperative societies and cancel the registration of the cooperative societies which have been amalgamated, divided or converted.
21. Direction by Registrar for Amalgamation, Division and Reorganisation of Societies.
1. Before issuing any order under Sub-Sec. (1) of Sec. 16 providing for the amalgamation, division or reorganisation of any coop. society or societies, the Registrar shall prepare a draft scheme in respect of such amalgamation division or reorganisation staling in particular the manner in which the new committee or committee of the coop. society or societies resulting from such amalgamation, conversion or reorganisation shall be constituted and the bye laws which such coop. society or societies shall follow. The Registrar shall send a copy on the draft of the order proposed to be issued by him under Sub-Sec. (1) of Sec. 16 to the coop. society or each of to coop. societies concerned calling upon-it or class of members thereof or from any creditor or class of creditors to submit such objections or suggestion together with its own or their own suggestions and objections within a period of not less than two months from the date on which the copy of draft aforesaid was received by it or them.
2. The Registrar shall consider all such suggestions and objections and make such modification in the draft order as may seem to him desirable in the light of those suggestions or objections and then issue a final order under sub- section (1) of section 16.
3. Any member or creditor of each of the co-operative societies to be amalgamated, divided\r reorganized, who has objected to the scheme of amalgamation, division or reorganisation with in the period specifying in 9ub-rule(1), may apply to the Registrar for payment of his share or interest, if he be a member, and the amount\n satisfaction of his dues, if he be creditor. Such application shall be separate and distinct from the objection or suggestion which he may have submitted to the co-operative society or the Registrar under clause (b) of sub-section (2) of section 16. It shall be competent for the Registrar to nominate an officer not below the rank of an Astt. Registrar to investigate such applications and to determine the payments required to be made to the members or creditors as the case may be.
4. Subject to the provisions of the Act, the rules and the bye-laws, the Registrar may by order require the cooperative society concerned to meet in full or satisfy other wise all due claims of the members and creditors and thereupon the co-operative society shall be bound to meet in full or satisfy otherwise all due claims of the members and creditors within such time as may be specified by the Registrar in the order.
22. Reconstruction of a Society
1. Where in the case of defunct societies or a co-operative society which is being wound up, a proposal for compromise or arrangement-
(a) between a co-operative society and its creditors:
(b) between the co-operative society and its members, is received, the Registrar may on the application of the co-operative society or any member or of any creditor of the co-operative society or of the liquidator, order reconstruction of the co-operative society in the manner hereinafter given.
2. An application for reconstruction of 'a co-operative society under sub-rule (1) may be made in Form 9. On receipt of such application, the Registrar may taking into consideration the compromise or arrangement for reconstruction of the co-operative society, if he thinks fit, prepare a draft order indicating -
(i) the manner in which the amounts payable by the co-operative society to its creditors should be paid and the amounts recoverable from its debtors and members should be recovered:
(ii) the manner in which the share capital, if any, of such member should be reduced;
(iii) the manner in which the scheme of reconstruction should be implemented: and
(iv) the manner in which the bye-law of the co-operative society Will stand amended in cruder to given effect to the scheme of reconstruction.
A copy of the draft order shall be exhibited on the notice board of the co-operative society and a copy thereof shall be exhibited on the notice board of the office of the Registrar inviting objections and suggestions from, all those interested within a specified time, which shall not exceed one month.
3. After taking into consideration the objections and suggestion (if any) received, the Registrar may issue an order approving such reconstruction or staying further proceedings in respect of such reconstruction. On issue of an order approving the reconstruction, the co-operative society shall stand reconstructed and the bye-laws of the co-operative society shall be modified to that effect and to the extent.
4. After the order referred to in sub-rule (3) has been made by the Registrar the order of the liquidation already passed shall be deemed to have been withdrawn with effect from the date of the order under sub-rule (3).
23. Appeal against the Refusal to Register the Amendment to Bye-Laws
Where an application for registration of an amendment in the bye-laws of a cooperative society is rejected by the Registrar under sub-section (4) of section 11, the appeal, if any, shaft be made only after the committee has reconsidered the matter in a meeting and has decided to prefer an appeal which shall be signed by the officer of the society authorised in this behalf by the committee. A copy of the resolution of the committee shall be attached with the memorandum of appeal. (Amended on 6.8.97)
23.A. Before making an order cancelling the registration of a co-operative society under sub-sec. (5) of section19, the Registrar shall give to the society reasonable opportunity of being heard.
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