Uttar Pradesh Co-operative Societies Act, 1965
[U.P. Act No. XI of 1966]
Preamble
An Act to consolidate and amend the law relating to co-operative societies in Uttar Pradesh
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| U.P Act No. 1 of 1972 | U.P Act No. 25 of 1994 |
| U.P Act No. 12 of 1976 | U.P Act No. 17 of 1995 |
| U.P Act No. 40 of 1976 | U.P Act No. 1 of 1997 |
| U.P Act No. 17 of 1977 | U.P Act No. 2 of 1998 |
| U.P Act No. 5 of 1983 | U.P Act No. 19 of 1998 |
| U.P Act No. 5 of 1987 | U.P Act No. 30 of 2000 |
| U.P Act No. 4 of 1989 | U.P Act No. 8 of 2003 |
| U.P Act No. 12 of 1990 | U.P Act No. 29 of 2007 |
| U.P Act No. 7 of 1994 | U.P Act No. 46 of 2007 and |
| U.P Act No. 17 of 1994 | U.P Act No. 47 of 2007 |
It is hereby enacted in the Sixteenth Year of Republic of India as follows:
Statement of objects and reasons.--The following is the relevant brief extract from the statement of objects and reasons published in the U. P. Gazette, Extraordinary, dated April 5, 1966.
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In Uttar Pradesh the Co-operative Societies Act, 1912, is still in force with a few modifications which have been made from time to time by the State Government. The co-operative movement has developed in various directions since this Act was placed on the Statute Book. There has also been a reorientation of the Government's policy towards cooperation and it is now recognized that co-operative technique should be adopted in the various spheres of development activity. Experience has shown that provisions should be made in the law for certain additional functions and responsibilities of co-operative societies and the authorities entrusted with their supervision, guidance and control. Many of the existing provisions need to be liberalised or modified to suit the changed circumstances. Government, therefore, consider it expedient to repeal existing Act and replace it by a new one and it is with this object that the Bill is being introduced.
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The salient and distinguishing features of this Bill are noted below:
(1) Provision has been made for the association of non-officials to the maximum possible extent in the management of a cooperative society. For this purpose it has been provided that the Chairman of the Committee of Management of such societies will be elected from amongst the elected members of the Committee.
(2) With a view to placing the co-operative societies on sound footing financially and also to enable the weaker section of the public to derive benefit of the co-operatives, provisions has been made for State aid to co-operative societies in various forms such as loans, subsidies, purchase of shares and guarantees for the repayment of the principal and interest on debentures, and the establishment of a (1) Principal State Partnership Fund and (2) Subsidiary State Partnership Fund.
(3) It is proposed to establish Appellate. Tribunals to hear appeals against awards made by the Registrar in arbitration proceedings.
(4) Provisions has also been made for appeal against the orders of the Registrar in important maters.
(5) Provision has been made in the bill to widen the membership of the co-operative society and to give a right of appeal to an applicant against the decision a society refusing to admit him as a member.
(6) Special provisions have been made for the organization and working of Co-operative Farming Societies and the corresponding provisions on the subject contained in U.P. Zamindari Abolition and Land Reforms Act, 1950, are proposed to be repealed herewith.
(7) Procedure for the execution of awards, decrees, orders and decisions under the Act is proposed to be simplified and made more effective.
(8) Provisions regarding liquidation of a co-operative society have been made more rational and useful by providing that the registration of a society shall be cancelled after completion of winding up proceedings.
(9) Keeping in view democratisation and deofficialisation as the object of co-operative movement a provision has been made in the Bill for the State Government to constitute or recognise one or more Co-operative Federal Authority or Authorities to supervise the working of co-operative societies or class of cooperative societies and the Registrar has been empowered to authorise any officer or officers of such Authority to exercise powers of inspection and audit in respect of the societies under the supervision of the Federal Authority.
Interpretation of Statutes Rules of.--The rules of interpretation of statute has been amply laid down by Das C. J. in the Supreme Court decision of Bengal Immunity Company v. State of Bihar, A.I.R. 1955 S.C. 661 relying on Heyden's case (1584) 3 Co. Rep 7 (a) V, wherein it was held that for the sure and true interpretation of all Statute in general (be they penal or beneficial, restrictive or enlarging of the common law) four things are to be discerned and considered:
Firstly.--What was the common law before the making of the Act.
Secondly.--What was the mischief or defect for which the common law did not provide.
Thirdly.--What remedy the Parliament hath resolved and appointed to cure the disease of the commonwealth.
Fourthly.--The true reason of the remedy; and then the office of all Judges is always to make such construction as shall suppress the mischief, and advance the remedy, and to suppress suitable inventions and evasions for continuance of the mischief, and "propriate comode" and to add force and life to the cure and remedy according to the true intent of the makers of the Act "pro bono publico".
Chapter: I - Preliminary
Section 1 - Short title, extent and commencement
(1) This Act may be called the 1[Uttar Pradesh Co-operative Societies Act, 1965.
(2) It extends to the whole of the State of Uttar Pradesh.
(3) It shall come into force from such date as the State Government may, by notification in the Gazette, appoint in this behalf:
Provided that while appointing such date the State Government may declare that any provisions to be specified in the declaration shall, not come into force from the date so appointed and in that case such provisions shall come into force from such date or dates as the State Government may similarly appoint in that behalf.
Enforcement.--The whole Act was enforced w.e.f. 26-1-1968 vide Notification No. 9171-CA/10-9-62, dated 30-12-1967, except Section 135.
Footnote:
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Note: Published in U.P. Gazette, dated 5th April, 1966 and received the assent of the President on 24th March, 1966.
Section 2 - Definitions
In this Act, unless the context otherwise requires--
(a) "Arbitrator" means a person appointed under this Act to decide disputes referred to him by the Registrar:
1(a-1) "agricultural credit society" means a credit society majority of the ordinary members whereof are primarily engaged in agricultural occupation; (a-2) "agricultural occupation" shall include--
(i) production, processing or marketing of agricultural crops;
(ii) horticulture, sericulture or animal husbandry which includes piggery, pisciculture, poultry fanning and dairying;
(a-3) "agricultural society" means a co-operative society the majority of the ordinary members whereof are primarily engaged in agricultural occupation;
(a-4) "apex society", "apex level society" or "State level co-operative society" means"--
(1) U. P. State Co-operative Land Development Bank Ltd., Lucknow;
(2) U. P. Co-operative Bank Ltd., Lucknow;
(3) U. P. Co-operative Federation Ltd., Lucknow;
(4) Pradeshik Co-operative Dairy Federation Ltd., Lucknow;
(5) U. P. Co-operative Union Ltd., Lucknow;
(6) U. P. Upbhokta Sahkari Sangh Ltd., Lucknow;
(7) U. P. Co-operative Sugar Factories Federation Ltd.;
(8) U. P. Cane Unions Federation Ltd., Lucknow;
(9) U. P. Industrial Co-operative Association Ltd., Kanpur; or
(10) any other central co-operative society fulfilling the following conditions:
(i) it includes in its membership at least one other central co-operative society in the same line of business or trade; and
(ii) its area of operation covers the whole of Uttar Pradesh; and
(iii) its primary object is to facilitate the operation of the co-operative societies affiliated to it as ordinary members];
(b) "Board of Arbitrators" means a body appointed under this Act to decide disputes referred to it by the Registrar;
(c) "bye-laws" means the registered bye-laws of a co-operative society for the time being in force;
(d) "Central Government" means the Government of the Indian Union;
2[(d-1) "Central society" or central co-operative society means a cooperative society, which has any other co-operative society as its ordinary member and is not a primary co-operative society;]
(e) "Committee of management" means the committee of a cooperative society, by whatever name called, to which the management of the affairs of the society is entrusted under Section 29;
(f) "Co-operative society" means a society registered or deemed to be registered under this Act;
(g) "Co-operative society with limited liability" means a cooperative society in which the liability of its members for the debts of society in the event of its being wound up is limited by its bye-laws--
(i) to the amount, if any, unpaid on the shares respectively held by them; or
(ii) to such amount as they may respectively undertake to contribute to the assets of the society;
(h) "Co operative Society with unlimited liability" means a co operative society the members of which are, in the event of its being wound up, jointly and severally liable for and in respect of all its obligations and to contribute to any deficit in the assets of the society;
3(i) "Co-operative Year" means the year commencing on the first day of April and ending on the thirty first day of March next following]
4[(i-1) "credit society" means a society which has as its primary object the raising of funds to be lent to its members;]
(j) "Dividend" means the interest paid (to a member) on the shares held by the member in the share capital of a cooperative society out of its profits and...
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