Keywords : Apex Society, Assisted Society, Director of Co-Operative Audit, Committee, Co-Operative Bank, Co-Operative Society with limited Liability, Co-Operative Year, Co-Operative Society with Unlimited Liability, Credit Agency, Deposit Insurance Corporation, Federal Society, Financing Bank, office Bearer, Primary Society, Registrar, Scheduled Castes and Scheduled Tribes, Secondary Society, State Representative, Tribunal
Amendments appended: 24 of 2001, 13 of 2004, 6 of 2010, 4 of 2011, 28 of 2012, 3 of 2013
STATEMENT OF OBJECTS AND REASONS
I
Act of 11 of 1959.—The Report of the Committee of Directors of the All
India Rural Credit Survey, appointed by the Reserve Bank of India, was
published in December, 1954. At the first conference of State Ministers in
charge of Co-operation held at New Delhi in April, 1955, it was agreed that
schemes of Co-operative development under the Second Five-Year Plan
should be drawn up to give effect to the recommendations contained in the
Rural Credit Survey Report. The Report recommended, among other things,
increased State partnership in Co-operative Societies and State
participation in their management. In order to implement the
recommendations of the Rural Credit Survey Report and to facilitate the
implementation of the schemes of co-operative development under the
Second Five-Year Plan and also to simplify, rationalise and modernise the
existing laws relating to Co-operative Societies, the Committee on Cooperative Law was appointed by the Government of India. The Committee
observed that the implementation of the recommendations of the Rural
Credit Survey Report and of the schemes of co-operative development
under the Second Five-Year Plan requires revision of the existing Cooperative Societies Act and the Rules made thereunder in all States.
Further, the Re-organisation of States has brought together, areas which
are being governed by different Acts and Rules. Under these circumstances
the Committee felt, the present juncture was very opportune for revising the
Co-operative Societies Act, in force in the different States with a view to
bringing about as large a degree of uniformity in the legislation governing
Co-operative Societies as possible throughout the country. Taking these
factors into consideration, the Committee prepared a Model Co-operative
Societies Bill and Model Rules which they recommended to State
Governments for enactment and adoption. At present five different Cooperative Societies Acts are in operation in the different parts of the Mysore
State. This is a source of considerable administrative inconvenience. It is
necessary to have a uniform Co-operative Societies Law as applicable to
the whole of the State.
Government have, therefore, decided to introduce the present Bill. The
Bill has been drafted after taking into consideration the Model Co-operative
Societies Bill recommended by the Committee on Co-operative Law
appointed by the Government of India. The principle of State partnership in
Co-operative Societies and State participation in their management has
been accepted and incorporated in the relevant provisions of this Bill.
1959:KAR.ACT 11] Co-operative Societies 9
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 10th
April 1958 as No. 21 at page 1.)
II
Amending Act 40 of 1964.—The Mysore Co-operative Societies Act,
1959, which was brought into force from First July 1960 has revealed in the
course of working the need for some amendments for speedy
implementation. It has also become necessary to amend the chapter
relating to the Mysore Central Land Mortgage Bank Ltd., so that the Bank
could take up expeditiously development activities for which funds could be
made available from the provision made under Taccavi loans or from the
funds borrowed from the Agricultural Re-finance Corporation of India or from
the debentures raised by the Bank itself. Hence the amending Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 18th
June 1964 as No. 152 at page 55.)
III
Amending Act 27 of 1966.— Note.-By this Act the Karnataka
Agricultural Produce Marketing (Regulation) Act, 1966 (Karnataka Act 27 of
1966) was enacted. Certain consequential amendments are made therein to
this Act .
IV
Amending Act 16 of 1967.— Consequent on the amendment of the
Central Sales Tax Act by the Parliament providing for the enhancement of
the rates of tax applicable to the declared good under the local sales tax
laws, it has become necessary to amend the IX Schedule which specifies
the declared goods and the rates of tax applicable to them. The rates of tax
applicable tot he declared goods specified therein are now being enhanced
accordingly. Co-operative Societies
The Government was considering the question of granting certain
concessions to new industries with a view to encourage development of
industries in the State. The Government recently took a decision that in
respect of new industries exemption from the payment of Sales Tax should
be provided for an initial period of two years. The manner in which that
exemption should be provided was examined and it was though that it can
be best done by means of Notifications issued from time to time whenever
occasion arises. Since the Act did not contain a provision empowering the
State Government to issue such notifications it is now intended to insert a
provision empowering the Government to notify exemptions and reduction of
tax rates. Such a provision exists in the Sales Tax Laws of the neighbouring
States also.
This occasion is also utilised to make certain minor amendments relating
to procedural matters and also to provide for concessional rate of tax for
vermicelli and to reduce the rates of tax on sugarcane and to exempt Amber
Charkas, Druggets, Durries and Carpets. The benefit of exemption granted
to bona fide producers under item 28 of the V Schedule is proposed to be
limited to persons who produce goods exclusively coming under village
industry.
1959:KAR.ACT 11] Co-operative Societies 10
Note: By this Act some consequential amendments are made to Act 11 of
1959 .
(Obtained from L.A. Bill No.35 of 1967 Page No. 9 & 10)
V
Amending Act 1 of 1972.—According to clause (c) of section 101 of the
Mysore Co-operative Societies Act, 1959, an order, decision and award
made under the Act can be executed by the Registrar or any other person
subordinate to him by attachment and sale of any property of the person or
co-operative society against whom the order, decision or award has been
obtained or passed. In order to implement this provision necessary rules
have been made and rule 41 of the Mysore Co-operative Societies Rules,
1960, empowers the Sale Officer to investigate the claims to property
attached in execution. In pursuance of this provision, Sale Officers have
been investigating such claims.
In Jyotiba Yellappa vs. Hubli Co-operative Cotton Sale Society, Ltd.,
[1970 (2) Mys. L.J. 344], the High Court of Mysore held that the procedure
under Rule 41 of the Co-operative Societies Rules is limited in its operation
to persons who can properly be made parties to the original dispute under
section 70 of the Act and that hence a claim by non-members against the
attachment and sale in execution of an award cannot be adjudicated under
rule 41.
In view of this decision, execution of orders, decisions and awards in
which claims to the property attached had been made by non-members
would become
Invalid and ineffective. Further, execution of orders, decisions and
awards could not be proceeded with except in cases where members of the
society were interested in the properties liable to attachment and sale.
Consequently, the Co-operative Societies could not pursue the expeditious
procedure for recovery under the Co-operative Societies Rules.
Hence it became necessary to empower the Registrar and his
subordinate to exercise the powers of investigating claims to property
attached in the execution of the orders, decisions and awards.
As the Houses of Legislature were not in Session and the matter was
urgent, an Ordinance was promulgated amending section 101 of the Act and
validating the action already taken. Thereafter before the Ordinance could
be replaced by the Act of State Legislature, the State Legislature was
suspended by the proclamation of the President dated 27th March 1971
under article 356 of the Constitution. The Bill is intended to replace the
Ordinance and is for enactment under the provisions of the Mysore State
Legislature (Delegation of Powers) Act, 1971.
The Consultative Committee on State Legislature relating to Mysore at its
second meeting on the 7th December 1971, has considered the Mysore Cooperative Societies (Amendment) Bill, 1972, and has accorded its approval
of the same.
(Obtained from Presidents Act 1 of 1972.)
1959:KAR.ACT 11] Co-operative Societies 11
VI
Amending Act 14 of 1973.—The post of Director of Sugar has been
created to fulfil the need for a single agency to deal with all matters relating
to sugar industry in the State in a comprehensive and co-ordinated manner.
Since there are a number of sugar factories already in the co-operative
sector and more factories are likely to come up in future it was necessary to
designate the Director of Sugar as Additional Registrar of Co-operative
Societies in respect of all the Sugar Factories in the co-operative sector. At
present the Registrar of Co-operative Societies is dealing with all matters
relating to Co-operative Sugar Factories and it is felt that the Director of
Sugar should assist the Registrar in the discharge of his functions in respect
of Co-operative Sugar Factories. The Additional Chief Marketing Officer has
been designated as Ex-Officio Additional Registrar of Co-operative
Societies.
- Section 2-A of the Mysore Co-operative Societies Act, 1959 provides
for the appointment of an Additional Registrar of Co-operative Societies. In
order to enable the Additional Chief Marketing Officer and the Director of
Sugar to be designated as Additional Registrar of Co-operative Societies
and also in order to provide for future contingencies it is considered
necessary to amend the provision to enable Government to appoint as
many Additional Registrars of Co-operative Societies as it thinks fit for the
purpose of assisting the Registrar.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 2nd
May 1973 as No. 433 at page 3.)
VII
Amending Act 2 of 1975.— Note.- By this Act the Karnataka Agricultural
Credit Operations and Miscellaneous Provision Act, 1975 (Karnataka Act 2
of 1975) was enacted. Certain consequential amendments are made therein
to Act 11 of 1959.
VIII
Amending Act 39 of 1975.—In order to facilitate the extension of
Deposit Insurance Schemes under the Deposit Insurance Corporation Act,
1961 (Central Act 47 of 1961) to co-operative banks registered under the
Mysore Co-operative Societies Act 1959 the Government of India, Ministry
of Food, Agriculture, Community Development and Co-operation and also
the Reserve Bank of India have suggested to the State Government to
make necessary amendments in the State Act so as to enable the State
Government and the Reserve Bank of India to exercise powers of
supersession, re-constitution and liquidation of Co-operative Banks. The
Committee appointed by the Government with the then Deputy Minister for
Co-operation as the Chairman with non-official Presidents of some of the
major Co-operative Institutions and officers of the Government to consider
the amendments to be made in the State Act in the light of the policies and
programmes of the Government, recommended among others, making all
the necessary provisions in the Co-operative Societies Act as suggested by
the Government of India and the Reserve Bank. A Bill was introduced for
1959:KAR.ACT 11] Co-operative Societies 12
this purpose in the Legislative Assembly in March 1970. The Bill was not
taken up for consideration by the Assembly, and with the dissolution of the
Legislative Assembly, the Bill has lapsed. It was considered necessary by
Government to amend the Act to provide for certain urgent and important
items noted below:
(1) Extension of deposit insurance schemes to the Co-operative Banks;
(2) Amalgamation of Co-operative Banks;
(3) Creation of second charge on the land of the member of the Society
enabling him to draw finance for agricultural operations.
(4) Nomination of members of Committee by State Government in certain
cases;
(5) Winding up of Co-operative Banks.
Accordingly, an amendment Bill was prepared and forwarded to the
Government of India with a request to get it enacted as President’s Act. The
Government of India suggested certain changes in the Bill. As elections to
the State Legislature were to be held the Bill was not enacted as a
President’s Act.
It is now considered necessary to amend the Mysore State Co-operative
Societies Act 1959, so as to facilitate the extension of Deposit Insurance
Scheme to Co-operative Banks, to allow for the admission of Commercial
Banks as nominal members of the Co-operative Societies, to afford relief to
the borrowers from Co-operative Society to get proportionate release of
charge on lands where partial discharges of loans are made and where
Area Development Works are taken up in compact areas to protect the
interest of Government or Land Development Bank financing the scheme, to
make suitable provision in the Act for nomination of two-thirds of the total
number of Directors on the Board of Directors of any Co-operative Society in
which Government hold shares of the value not less than 50 percent of the
share capital of Co-operative Society, to make provisions of framing T.A.
Rules of the members of the Co-operative Societies, to provide for the
Central Banks to initiate the Arbitration Proceedings on some of the
members of the Primary Co-operative Societies, to make provision for
disqualification of defaulters from membership of Committee of
Management, to provide for the commencement of term office of the
members, resignation of Members of the Committee and for disqualifying a
member to be appointed or continued as President, vice-president, etc., of a
co-operative society for more than six consecutive years, to provide for the
constitution of a bench comprising of two members, by the Chairman,
Mysore Co-operative Appellate Tribunal and to make provision enabling
Government to constitute an authority/authorities for the recruitment,
training, etc., of employees of the Co-operative Societies.
During the President’s rule, section 101 of the Mysore Co-operative
Societies Act, 1959 was amended by President Act No. 1 of 1972. This was
to overcome the difficulty arising out of the decision of the High Court in
regard to execution of decree against non-members. As the operation of the
President’s Act is upto March 1973, and it is necessary to continue the
provisions made therein, these provisions have to be re-enacted.
1959:KAR.ACT 11] Co-operative Societies 13
Hence the Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 26th
February 1973 as No. 179 at page 22–24.)
IX
Amending Act 19 of 1976.—The Karnataka Co-operative Societies Act
was amended on 10th March 1976 providing for reorganization of Cooperative Societies with a view to making the Societies more viable and to
serve the interest of weaker sections in particular and to slacken the hold of
vested interests over the Societies. But even after the amendment of the
Act, it was seen that there were some difficulties in the timely and effective
implementation of the provision of the Act. It is also considered necessary to
provide for legal steps towards ensuring proper management of the Cooperative Institutions as also for effective action on the erring Co-operative
Societies. Accordingly the provisions pertaining to the following matters
have been amended suitably by promulgating Ordinance Nos. 15 and 19 of
1976 on 19th July 1976 and 7th August 1976 respectively:
(1) Reorganization of Co-operative Societies.
(2) Appointment of Special Officers to Co-operative Societies.
(3) Power to give direction to Co-operative Societies.
(4) Appeal provisions under the Act as consequential measure.
(5) Removal and disqualification of members on the Committee of
Management.
(6) Extending the indemnity provision to the new Management
Committee and the Administrators and Special Officers appointed under the
Act.
The reorganization of Co-operative Societies was of an urgent nature.
The Reserve Bank of India and the Government of India were pressing all
State Governments to immediately complete the reorganization of Cooperative Societies so as to enable effective implementation of the 20 Point
Economic Programme.
In certain cases immediate action for taking over the management of Cooperative Societies is considered essential. Hence a new Section 30(A) has
been included. It is also considered to have legal authority to enable
Government to give directions in public interest, to Co-operative Societies.
Provision for removal of members of the Committees existed in the rules. It
was necessary to make provision under the Act.
The provision regarding the indemnifying the officers who acted in good
faith was sought to be extended to the new Committees of Management as
also administrators and the Special Officers appointed under the Act is
considered necessary.
All the amendments were of urgent nature in the interest of development
of Co-operative Movement on right lines and in the absence the Legislative
Assembly in Session recourse to promulgation of Ordinance had to be
resorted to.
These amendments do not involve additional cost to Government.
This Bill seeks to replace the said Ordinances.
1959:KAR.ACT 11] Co-operative Societies 14
(Published in Karnataka Gazette (Extraordinary) part IV-2A dated 8th
November 1976 as No. 4430 at page 7 & 8.
X
Amending Act 70 of 1976.— The Karnataka Co-operative Societies Act
was amended on 10th March 1976 providing for reorganization of Cooperative Societies with a view of making the Societies more viable and to
serve the interest of weaker sections in particular and to slacken the hold of
vested interests over the Societies. But even after the amendment of the
Act, it was seen that there were some difficulties in the timely and effective
implementation of the provision of the Act. It is also considered necessary to
provide for legal steps towards ensuring proper management of the Cooperative Institutions as also for effective action on the erring Co-operative
Societies. Accordingly the provisions pertaining to the following matters
have been amended suitably by promulgation Ordinance Nos. 15 and 19 of
1976 on 19th July and 7th August respectively.
(1) Reorganization of Co-operative Societies.
(2) Appointment of Special Officers to Co-operative Societies.
(3) Power to give direction to Co-operative Societies.
(4) Appeal provisions under the Act as consequential measure.
(5) Removal and disqualification of members on the Committee of
Management.
(6) Extending the indemnity provision to the new Management
Committee and the Administrators and Special Officers appointed under the
Act.
The reorganization of Co-operative Societies was of an urgent nature.
The Reserve Bank of India and the Government of India were pressing all
State Governments to immediately complete the reorganization of Cooperative Societies so as to enable effective implementation of the 20 Point
Economic Programme.
In certain cases immediate action for taking over the management of Cooperative Societies is considered essential. Hence a new Section 30(A) has
been included. It is considered to have legal authority to enable Government
to give directions in public interest, to Co-operative Societies. Provision for
removal of members of the Committees existed in the rules. It was
necessary to make provision under the Act.
The provision regarding the indemnifying the officers who acted in good
faith was sought to be extended to the new Committees of Management as
also administrators and the Special Officers appointed under the Act is
considered necessary.
All the amendments were of urgent nature in the interest of development
of Co-operative Movement on right lines and in the absence the Legislative
Assembly in Session recourse to promulgation of Ordinance had to be
restored to.
These amendments do not involve additional cost to Government.
This Bill seeks to replace the said ordinances.
(Obtained from L.A. Bill No. 45 of 1976)
1959:KAR.ACT 11] Co-operative Societies 15
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A
dated 8-12-1976 as No. 4430.)
XI
Amending Act 71 of 1976.—With a view streamline the working of the
Co-operatives and to enable them to play an effective role in the
implementation of the economic policies and programmes of Government,
certain amendments to the Co-operative Societies Act were considered
necessary:—
(i) To enable specially the urban banks to allow institutions like firms etc.,
to be admitted as members;
(ii) To bar persons carrying on the same kind of business as that of a Cooperative Society from being members;
(iii) To deny voting rights to name-sake societies who used to be
activised at the time of election and to deny voting rights to surities also as
in the case of defaulters since their responsibility were co-existance with the
defaulters;
(iv) To enable the State Land Development Banks to float debentures
without mortgage of securities in view of their diversified finances even
including Dairy Development to put a stop the tendency of the Co-operative
Societies holding their meeting at inconvenient places with ulterior motives;
(v) To make the penalties for offences committed under the Act more
rigorous.
All these amendments would help to streamline the working of the Cooperative Societies to instil a sense of responsibility amongst the office
bearers, the loanees, surities, etc.
Hence the Bill.
(Obtained from LA Bill No. 65 of 1976.)
XII
Amending Act 14 of 1978.—With a view to make the Co-operative
Societies effective instruments of assisting the weaker sections and also for
handling the financing of agricultural production on an increasing scale, it
was considered necessary to reorganize the Co-operative Societies into
stronger units. The need for reorganization of these Societies into viable
units has gained urgency in view of the necessity for filling up the credit gap
as a result of the Debt Relief measure which apart from redeeming the
debts of weaker sections has resulted in more or less drying up the
traditional sources of available finance.
Writ petitions were filed before the High Court of Karnataka by the
Primary Agricultural Credit Co-operative Societies/individuals challenging
the validity of the provisions of section 14A of the Karnataka Co-operative
Societies Act, 1959, as also the orders issued by the Deputy Registrars of
Co-operative Societies.
The Hon’ble High Court of Karnataka while disposing of the writ petitions
has upheld the constitutional validity of section 14A of the Karnataka Cooperative Societies Act, 1959 but the orders issued by the authorities under
1959:KAR.ACT 11] Co-operative Societies 16
section 14A of the Act have been struck down on the ground of nonapplication of the principle of udi alterem partem.
As the amalgamation and reorganization of societies already taken place
and the said societies have functioned for quite some time it was not
practicable to revert back to the original position. Hence it was considered
necessary to validate the action taken earlier by specifically excluding the
application of principle of natural justice before taking action under section
14A of the Act by suitably amending the Act with retrospective effect.
Since the Legislature Council was not in session an Ordinance was
promulgated. This Bill seeks to replace the said Ordinance.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 30th
June 1978 as No. 1005 at page 4.)
XIII
Amending Act 16 of 1979.—In December 1968, Government
constituted a Committee with the Deputy Minister for Co-operation as the
Chairman and non-official Presidents of some major co-operative institutions
and officers of Government as members to consider the various
amendments to the Mysore Co-operative Societies Act, in the light of the
policies and programmes of Government and also the experience gained by
the Department of Co-operation in implementing the various provisions of
the existing Act. The Committee after a detailed consideration of the working
of the various classes of cooperative societies submitted its
recommendations suggesting certain amendments to the Act.
It is considered necessary to amend the Act as recommended by the
Committee subject to certain modifications. Hence this Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 16th
March 1970 as No. 94 at page. 58.)
XIV
Amending Act 3 of 1980.—Under the existing provisions of the
Karnataka Co-operative Societies Act, 1959, the Registrar of Co-operative
Societies is empowered to get the accounts of the Co-operative Societies
audited by a person authorized by him.
In order to ensure that the accounts of the Co-operative Societies are
audited by independent persons, the State Government has created a
separate audit wing with the Chief Auditor as the head thereof. This wing
has been functioning effectively since more than two years.
In order to give the Chief Auditor and officers sub-ordinate to him
statutory recognition it was considered necessary to amend the Cooperative Societies Act 1959 suitably. As the matter was very urgent, the
Karnataka Co-operative Societies (Amendment) Ordinance 1979 (Karnataka
Ordinance No. 20 of 1979) was issued.
Hence this Bill to replace the said Ordinance.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 27th
February 1980 as No. 139 at page 6.)
1959:KAR.ACT 11] Co-operative Societies 17
XV
Amending Act 4 of 1980.—Section 14A of Karnataka Co-operative
Societies Act was first introduced by an amendment to Karnataka Cooperative Societies Act through Karnataka Co-operative Societies
Amendment Act 1975. Sub-section (1) of Section 14-A contained a proviso
providing for the previous sanction in writing of the Reserve Bank of India in
the case of amalgamation, division, Re-organization of Co-operative Banks.
This proviso was retained when further amendment were carried out by
Karnataka Act 19 of 1976. When the Karnataka Act 70 of 1976 was
published carrying out further amendments to the Co-operative Societies
Act it is found that this proviso to sub-section (1) of Section 14-A is not
found in the Karnataka Act 70 of 1976. In this amendment the sub-section
(1) of Section 14-A was substituted by new provision and the proviso was
left out.
Hence an amendment to Section 14-A is necessary for incorporating then
proviso which was left out while further amendments were made in
Karnataka Act 70 of 1976.
Hence this Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 29th
February, as No. 151 at page. 3.)
XVI
Amending Act 5 of 1984.—The Karnataka Co-operative Societies Act,
1959 has revealed in the course of working the need for some amendments
on the lines of the recommendations made by K. H. Patil Committee for
speedy implementation. It has become necessary to amend the provisions
relating to audit, so that Government could constitute an audit board for
audit of accounts of Milk Co-operative Unions and Milk Co-operative
Federations in the State. It has also become necessary to amend the
chapter relating to the “Land Development Bank” so that the bank could take
up expeditiously developmental activities for which funds could be made
available on the basis of hypothecation of moveable property. The penalties
under the Act have been enhanced by way of fine, imprisonment to create a
deterrant impact on the persons committing offences under the Act.
Hence the Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 24th
February 1984 as No. 139 at page 16.)
XVII
Amending Act 34 of 1985.—It is considered necessary to amend the
Karnataka Co-operative Societies Act, 1959 for speedy recovery of large
amounts due from the members of various Co-operative Institutions in the
State of Karnataka. The Amendment proposed enables the State
Government to purchase the defaulters’ properties by Government bidding
in the public auction and to dispose of such properties in such manner as
Government deems fit. - As the matter was very urgent, and the Legislative Assembly was not
in session, the Karnataka Co-operative Societies (Amendment) Ordinance,
1959:KAR.ACT 11] Co-operative Societies 18
1985 (Karnataka Ordinance No. 15 of 1985) was issued. This Bill seeks to
replace the said ordinance.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 29th
July 1985 as No. 405 at page 3.)
XVIII
Amending Act 34 of 1991.—It is considered necessary to omit section
101-C, since other provisions relating to recovery of Co-operative dues are
found to be adequate and the purchase of immovable property by the State
Government in the auctions has caused un-necessary anxiety and hardship
to the farmers.
Hence the Bill.
(Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 30th
September 1991 as No. 622 at page 254.)
XIX
Amending Act 25 of 1998.—Keeping in view the recommendations
made by the Committee headed by Sri K. H. Patil and two other Committees
and also various suggestions made by prominent co-operators and officers
of the Co-operative Department, It was considered necessary to amend the
Karnataka Co-operative Societies Act 1959,—
(i) to define primary societies, secondary societies, federal societies and
apex societies;
(ii) to prohibit members of the same family from applying for registration of a
co-operative society;
(iii) to provide deemed registration of co-operative, society and amendment
of byelaws within a period of three months from the date of receipt
of the proposal;
(iv) to provide for cessation of membership of a person who fails to fulfill his
obligations as a member under the Act, Rules and Byelaws for a
continuous period of three years;
(v) to remove the powers of the Registrar to direct amalgamation, division,
and re-organization of co-operative societies;
(vi) to prohibit a member who is a defaulter from exercising his right to vote
at a meeting of the co-operative society
(vii) to remove the restrictions on holding of shares by the members of cooperative societies;
(viii) to substitute section 27 to have more comprehensive provision in
respect of conducting annual general meeting;
(ix) to require a Committee to make arrangements for election of
membership of next Committee and also to provide for
consequences of default in making such arrangements;
(x) to provide for nomination of only three persons in the Committee of
assisted societies;
(xi) to remove the powers of Government under section 30A and 30B for
appointment of special officer;
1959:KAR.ACT 11] Co-operative Societies 19
(xii) to do away with the Government nomination of one third of the total
strength of the Committee under section 53A;
(xiii) to prohibit such nominated members from contesting in the election of
President, Vice-President and other office bearers of the
Committee;
(xiv) to provide office bearers to continue even after two terms;
(xv) to make detailed provisions regarding election of President, VicePresident and other office bearers and also filling up of casual
vacancy in the office of the members of the Committee;
(xvi) to provide for appointment of Chief Executive of the Co-operative
Society and also to specify his powers and functions;
(xvii) to provide for appointment of Special Officer in case a society is not
functioning on account of the number of members of the Committee
falling short of the required number of quorum;
(xviii) to incorporate a new Chapter VA and sections 39A to 39K to have
comprehensive provisions relating to election of the members of the
Committee;
(xix) to remove the powers of the Government under section 121 by deleting
the provision;
(xx) to take power to notify model byelaws.
Certain consequential amendments are also made.
Hence the Bill.
(Obtained from file DPAL16 LGN 97.)
XX
Amending Act 2 of 2000.— Keeping in view the recommendations
made by the various Committees and the suggestions made by leading cooperators, it is considered necessary to amend the Karnataka Co-operative
Societies Act, 1959,
(i) to make co-operative institutions economically sound in the interest of
society and its members;
(ii) to bar Industrial Tribunals from entertaining disputes of the nature of
industrial disputes arising under the Co-operative Societies Act, in order to
avoid multiplicity of forums, and for certain other purposes.
Hence the Bill.
(Obtained from L.A. Bill No. 20 of 1997.)
XXI
Amending Act 13 of 2000.— Several amendments were made to the
Karnataka Co-operative Societies Act, 1959 by the Karnataka Co-operative
Societies (Amendment) Act, 1997 including the amendments,-
(i) to deprive a nominated member’s right to vote in the election of office
bearers and President, Chairperson, Vice President and Vice Chairperson
of the Co-operative Society;
(ii) to omit section 30B which provides for power to give direction in public
interest;
1959:KAR.ACT 11] Co-operative Societies 20
(iii) to omit section 53A which provides for nomination of members to a
Committee by the State Government in certain cases.
The Government has come across several hurdles while implementing
the amended provisions. The Government has invested a large amount of
money in various Co-operative Societies in the form of share capital, loan
and subsidy. Further, the Government has also given guarantee to various
Co-operative institutions for repayment of loan and interest due by them.
Therefore, it is felt that there should be some enabling provision providing
for effective intervention by the Government to safeguard public interest and
also the interest of the shareholders of a Co-operative Society.
Therefore, it is considered necessary to amend the Karnataka Cooperative Societies Act, 1959,-
(i) to confer voting right on nominated members in the election of office
bearers of the Committee and Chairpersons, Vice Chairpersons, President
and Vice President so that they can effectively participate in the
management of a Co-operative Society;
(ii) to reintroduce the provision 30A empowering the State Government to
issue direction in public interest;
(iii) to reintroduce section 52A providing for nomination of members of
Committee of a Co-operative Society by the State Government in certain
cases where the State Government has given substantial financial
assistance.
As the matter was urgent and where both the Houses of the Karnataka
Legislature were not in session, the Karnataka Co-operative Societies
(Amendment) Ordinance, 2000 was promulgated.
This Bill seeks to replace the said Ordinance.
Hence the Bill.
(Obtained from L.A. Bill No. 13 of 2000)
XXII
Amending Act 6 of 2001.- To give effect to the proposals made in the
Budget Speech, it is considered necessary to amend the Karnataka Stamp
Act, 1957 and the Karnataka Co-operative Societies Act, 1957.
Hence the Bill.
(Vide L.A.Bill No.6 of 2001 File No. ÊÐÀÐôÆÑ… 10 ÆÑÊйР2001)
XXIII
Amending Act 24 of 2001.- To achieve better results in the Co-operative
Field and to over come certain difficulties encountered in the effective
implementation of the existing provisions of the Karnataka Co-operative
Societies Act, 1959. It is considered necessary to amend the Act to provide
for the following, namely:-
(1) To enlarge the definition of “Assisted Society” by including even
societies which receive assistance in the form of loan or grant or guarantee
for repayment of loan or interest.
(2) To restore the earlier provision providing for appointment of a person
as the Director of Co-operative Audit.
1959:KAR.ACT 11] Co-operative Societies 21
(3) To omit section 2B as it is redundant in view of the provisions
contained in the Karnataka Appellate Tribunal Act, 1976.
(4) To provide for levy of fee in respect of amendment of bye-laws of Cooperative Societies.
(5) To provide for admission of Self Help Groups as nominal members of
a society.
(6) To have a specific provisions indicating when a person shall cease to
be a member of a Co-operative Society.
(7) To restore earlier provision providing for expension of time by the
Registrar to convene the Annual General Body Meeting of a Society by a
period not exceeding six months.
(8) To enhance the total of members of an Apex Society from the existing
25 to 32 and in the case of an urban co-operative bank having an area of
operation not beyond a district to enhance it upto 15 members.
(9) To reduce the term of office of the members of the Committee from
the existing five co-operative years to three co-operative years.
(10) To provide that the nominated members shall not have right to
become bearers of a primary co-operative society and any other class or
classes of co-operative society as may be specified by the Government and
to provide that the members so nominated shall hold office during the
pleasure of the Government.
(11) To provide for disqualification under certain circumstances in the
case of a person who represents a co-operative society in the Committee of
District Central Society or with a Federal society or an Apex society.
(12) To reduce the term of office of the office bearers from the existing
two and half years to one year.
(13) To provide for appointment and removal of the Chief Executive of an
assisted Society by the Government or Registrar.
(14) To provide for supercession of a Committee even in case of
violation of any direction issued under section 30B and to provide for further
extension of period of appointment of an Administrator up to one year in
aggregate.
(15) To restore the earlier provision providing for appointment of a
Special Officer to a society by the State Government on a report made by
the Registrar.
(16) To empower the Registrar to extend the period of appointment of a
special officer under section 31 for a further period of one year in the
aggregate.
(17) To provide for postponement of election of co-operative societies in
the case of natural calamities et.,
(18) To restore earlier provision providing for audit of all co-operative
societies by the Director of co-operative Audit.
(19) To provide explicitly for initiation of surcharge proceedings against
Government nominees and ex-officio members.
1959:KAR.ACT 11] Co-operative Societies 22
(20) To restore earlier provision providing for exemption of societies from
the applicability of the provisions of the Act subject to the modification that it
shall not apply to section 30A.
(21) To provide for submission of copies or resolution or order to the
Registrar by the Chief Executive and for rescinding or canceling the
resolution or order under certain circumstances.
Certain incidental provisions are also made.
Hence the Bill.
(obtained from LA Bill No. 32 of 2000)
XXIV
Amending Act 13 of 2004.- It is considered necessary to amend the
Karnataka Co-operative Societies Act, 1959 to provide for.-
(i) conversion of a Co-operative under Karnataka Souharda Sahakari
Act, 1997 into a Co-operative Society.
(ii) voting rights to the Co-operative Societies after 12 months of their
admission as in the case of individuals.
(iii) prior sanction of RBI in respect of a Co-operative Bank under section
26A and 26B.
(iv) the Registrar to conduct the general meeting in case of failure to the
Committee to hold Annual general body meeting.
(v) the election shall be held within a three months from the date of
registration of a Co-operative Society or Societies formed after
amalgamation or reorganization or division and that an administrator
be appointed for the said period of three months.
(vi) vesting of powers under section 30, 31, 59 and 64 with the Registrar.
(vii) appeal provision against the orders of Registrar under sec 12, 17
and 31.
(viii) vesting of compounding of offences relating to audit with the
Director of Co-operative Audit.
Some consequential amendments are also made in view of
judgement passed by the Hon’ble High Court in W.A.No: 1899-1912/2001
and W.P.No. 21461/1999.
Hence the Bill
[ L.A. BILL No. 1 OF 2004 ]
(Entry 32 of List II of the Seventh Schedule to the Constitution of India)
XXV
Amending Act 6 of 2010.- The Government of Karnataka had
appointed a 3 men Committee namely:-
1) Sri B.S. Viswanathan, Ex-President & Present director of
Karnataka State Cooperative Apex & Rural Development Bank
Ltd., Bengaluru
