Updated: Saturday May 21, 2016/AsSabt
Sha’ban 14, 1437/Sanivara
Vaisakha 31, 1938, at 06:06:41 PM
The Co‑Operative
Farming Act, 1976
1ACT No. LII OF 1976
[19th July, 1976]
WHEREAS it is expedient to
provide for the formation, working and promotion of co‑operative farming
and setting up of allied agro‑based industries on the basis of self‑help
and mutual aid amongst the farmers and matters ancillary thereto or connected
therewith;
AND WHEREAS the Provincial
Assemblies of the Provinces of Baluchistan, the North‑West Frontier, the
Punjab and Sind have passed resolutions under clause (1) of Article 144 of the
Constitution of the Islamic Republic of Pakistan to the effect that Parliament
may, by law, regulate the formation, working and promotion of co‑operative
farming and setting up of allied agro‑based industries on the basis of
self‑help and mutual aid amongst the farmers;
It is hereby enacted as follows:---
CHAPTER 1
1. Shot title, extent and
commencement.___(1) This Act may be called the
Co‑operative Farming Act, 1976.
(2) It extends to the whole of
(3) It shall come into force at
once.
2. Act to override other laws. The provisions of this Act and
the rules shall have effect notwithstanding anything contained in the Co‑operative
Societies Act, 1925 (Act VII of 1925), or in any other law for the time being
in force relating to the rights of landlords and tenants.
3. Definitions. In this Act, unless there is anything repugnant in the subject or
context,‑--
(a) ’agricultural year’ has the same
meaning as in the West Pakistan Land Revenue Act, 1967 (W. P. Act No. XVII of
1967);
(b) bye‑laws’ means bye‑laws
registered under this Act;
(c) ‘committee’ means the managing committee of a society;
(d) ’co‑operative farm’ means
the total land pooled by the members of a society;
(e) ’District Co‑operative
Council’ means a District Co‑operative Council formed under section 39;
1For Statement of Objects and
Reasons, see Gaz., of P., 1976, Ext., Pt., III, p. 577.
(f) ”District Co‑operative
Federation” means a District Co‑operative Federation of Co‑operative
Farming Societies formed under section 35;
(g) ”member” means a member of a
society;
(h) ”National Co‑operative
Council” means the National Co‑operative Council constituted under
section 43;
(i) ”nation building department”
means the departments which the Provincial Government may, by notification in
the official Gazette, designate as such for the purposes of this Act;
(j) ”net profits” means net profits
as defined in subsection (3) of section b7‑C of the Companies Act, 1913
(VII of 1913);
(k) ”office‑bearers” means the
Chairman, Vice‑Chairman, Secretary and Treasurer of a Committee;
(l) ”prescribed” means prescribed by
rules;
(m) ”produce index units” means the
measures in terms of which (be comparative productivity of an area of land of a
particular kind in a particular assessment circle or area is computed and
expressed for the purposes of the schemes relating to the re‑settlement
of displaced persons on land and, in respect of any assessment circle or area
where no such units have been deter mined, such measures as may be
prescribed;.
(n) ”produce income” means the total
income derived from all earnings of the co‑operative farm before
deducting any expenses;
(o) “Provincial Co‑operative Council” means a Provincial Co‑operative
Council formed under section 41;
(p) ”Provincial Co‑operative
Federal means a Provincial Cooperative Federation of Co‑operative arming
Societies formed under section 37;
(q) ”Registrar” means a person
appointed to perform the duties of Registrar of Cc‑operative Societies
under the Co‑operative Societies Act, 1925 (Act VII of 1925), and
includes an officer authorised by Government to perform the duties of Registrar
under this Act;
(r) ”rules” means rules made under
this Act;
(s) ”society” means a co‑operative
farming society registered under this Act;
(t) ”tenant” means tenant as defined
in the Punjab Tenancy Act, 1887 (Punjab Act No. XVI of 1887); and
(u) ”value in relation to land,
means the value as evaluated under section 13.
CHAPTER II
REGISTRATION OF SOCIETIES
4. Conditions of registration.___(1) A co‑operative farming
society which fulfils the following conditions may apply to the Registrar for
registration under this Act, namely
(a) it consists of not less than
twenty members;
(b) the total land pooled by its
members is,---
(i) in the case of the Provinces of
Baluchistan, the Punjab and
(ii) in case of the
(c) the land pooled by its members
forms one contiguous farm.
(2) An application under
sub-section (1) shall be made in such form, and be accompanied by such
documents, as may be prescribed.
5. Procedure of registration. If, after making such enquiry as he considers necessary, the
Registrar is satisfied that a co‑operative farming society applying for
registration is eligible for registration under this Act, and that the bye‑laws
proposed to be famed by it are not inconsistent with any of the provisions of
this Act, or he rules, he shall register it, and its bye‑laws within
fifteen days from the receipt of its application.
6. Evidence of registration. A certificate of registration signed by, the Registrar shall be
conclusive evidence that the society mentioned therein is duly registered,
unless it is proved that the registration of the society has been cancelled.
7. Amendment of the bye‑laws
of a society.___ (1) No amendment of the bye‑laws
of a society shall be effective unless it is registered with the Registrar.
(2) If the Registrar is
satisfied that an amendment of the bye‑laws proposed to be made by a
society is not inconsistent with any of the provisions of this Act or the rules
he shall register the amendment.
CHAPTER III
MEETINGS
8. General meetings. Every society shall call an annual general meeting of its
members and not less than one other general meeting in an agricultural year.
9. Special general meeting.___ (1) On a requisition signed by
not less than one‑fifth of the total number of members of a society, the
Chairman shall call special general meeting of the society within thirty days
of the receipt of the requisition.
(2) If the Chairman does not
call the meeting within the time specified in sub-section (1), the Registrar
shall direct the Chairman to call the meeting within a period of seven days
and, if the Chairman fails to do so, may himself call the meeting.
CHAPTER IV
MANAGING COMMITTEE AND RIGHTS
AND LIABILITIES OF MEMBERS
10. Managing committee of a
society.___ (1) Each member shall have one
vote irrespective of the area of the land pooled by him; provided that in case
of a deceased member all his heirs who want to remain members shall be
registered and shall have the right to vote.
(2) The members shall, in their
annual general meeting, elect, by majority of votes,---
(a) a managing committee consisting
of not less than seven and not more than eleven members, including the office‑bearers;
and
(b) one representative for the
District Co‑operative Federation.
(3) A member of a committee,
including an office‑bearer, and the representative shall unless he
resigns or is removed from office earlier, hold office for a term of two years.
(4) No member of a committee or
an office‑bearer or the representative shall hold office for more than
two consecutive terms.
(5) Subject to such decisions,
if any, as may be taken in a general meeting of a society, the management of
the affairs of a society shall vest in the committee.
(6) A member of a committee,
including an office‑bearer or the representative, may be removed from
office by a resolution passed by a majority of the total number of members of a
society in an annual general meeting or a meeting requisitioned for this
purpose by not less than one‑third of the total number of members.
(7) Any member of a committee,
including an office‑bearer, may by writing under his hand addressed to
the Chairman, resign his office.
11. Pooling of land.___ (1) Every member shall, subject
to the provisions of clause (c) of sub-section (1) of section 4, pool his
entire holding without affecting his ownership of the holding in any way:---
Provided that a member or group
of members owning a subsistence holding may retain for his or their personal
use an area not exceeding,---
(a) in the case of
(b) in the case of the other
Provinces, one acre:---
Provided
further that a member or group of members pooling more than a subsistence
holding may retain for his or their personal use such area not exceeding,---
(a) in the case of
(b) in the case of the other
Provinces, two acres; as may be determined by the committee:---
Provided further that the
location of the area to be so retained may tae determined by the committee:---
Provided further that a member
owning less than a subsistence holding shall not be entitled to retain any land
for his personal use.
Explanation.___In this section, ‘subsistence
holding’ shall have the same meaning as in the Land Reforms Regulation, 1972.
(2) All land pooled for a co‑operative
farm by members shall for the purposes of management, vest in the society.
12. Liability of members. The liability of a member shall be limited to the value of the
land pooled by him.
13. Evaluation of land, etc.___ (1) The land pooled by each
member for a co‑operative farm shall be evaluated by the Managing
Committee according to quality and area on the basis of produce index units.
(2) If any land pooled by a
member for a co‑operative farm contains orchards, ponds or any other
immovable structures, the value of the orchards, ponds and other structures
shall be assessed by the Managing Committee and added to the shares of such
member:---
Provided that trees other than
orchards shall continue to be the property of the member and the value thereof
shall not be assessed or added to his share:---
Provided further that, if the
committee decides to remove such trees or structures standing on any land, such
trees or structures shall be removed on payment to the owner of such land of
such compensation as may be determined by the committee.
14. Withdrawal from membership.___ (1) A member who has been a
member of a society for not less than three years may, by notice under his hand
addressed to the Chairman and delivered to him by the thirty-first day of
March in any year, withdraw from membership of the society.
(2) Where, due to the death of a
member, the rights and liabilities of the member devolve upon his legal heirs
or successors and any of the heirs or successors is a minor the rights and
liabilities of the minor shall be the rights and liabilities of his guardian
until such time as the minor attains majority.
(3) A minor referred to in
sub-section (2) may, after he attains majority, withdraw from the membership of
the society in the manner provided for in sub-section (1) if the land owned by
him has formed part of the co‑operative farm for not less than three
years.
(4) On a member withdrawing from
the membership of a society,---
(a) he shall cease to be member on
and from the first day of July following the day on which he gives notice of
his withdrawal;
(b) the land pooled by him shall
revert to him on the aforesaid day subject to any encumbrances that may have
been created on it by the society, to such extent as may be determined by the
society;
(c) he shall not be entitled to any
share in the Development Fund or to any right or interest in anything
established or purchased out of that Fund; and
(d) he shall pay to the society,
towards the cost of tube wells installed, residential houses, sheds or other
structures raised, or improvements done on his land by the society, such
amount, and in such manner, as may be determined by the society.
(5) As soon as may be after a
person ceases to be a member, his name shall be notified to the Registrar for
removal from membership.
15. Admission of new members.___ (l) Subject to the other provisions of
this Act, a committee may admit to the membership of the society any owner of
land who pools his land:
Provided that no owner of land
shall be so admitted except after the close of the agricultural year during
which the society is registered.
(2) As soon as may be after an
owner of land is admitted as a member under sub-section (1), his name shall be
notified to the Registrar.
CHAPTER V
PRIVILEGES AND LIABILITES OF
SOCIETIES
16. Societies to be bodies
corporate. A society shall be a body
corporate by the name under which it is registered, having perpetual succession
and a common seal, with power to hold property, bath movable and immovable, and
shall by the said name sue and be sued.
17. Office of society. Every society shall have its office at such place within the co‑operative
farm as it may decide.
18. Copy of Act, etc., to be
open to inspection. Every society shall keep open to
inspection at all reasonable times at the registered address of the society,
free of charge,---
(a) a copy of this Act,
(b) a copy of the rules governing
such society,
(c) a copy of the bye‑laws of
such society, and
(d) a register of its members.
19. Liability in respect of
encumbrances on land.___Where the land pooled by a
member is subject to any encumbrances, such encumbrances shall continue to be
the liability of such member.
20. Audit and accounts.___ (1) The accounts of a society
shall be maintained in the prescribed manner shall be audited every year by an
auditor or auditors appointed at each Annual General Meeting out of a list of
auditors prepared by the Registrar and shall be laid before the Annual General
Meeting for adoption.
(2) An auditor appointed under
sub-section (1) shall have power,---
(a) to summon at the time of audit
any officer, agent, servant and member, past or present, of the society whom he
has reason to believe can give material information in regard to any transaction
of the society or the management of its affairs; and
(b) to require the production of a
book or document relating to the affairs of, or any cash or security belonging
to, the society, by the officer, agent, servant or member believed by the
auditor to he in possession of such book, document, cash or security.
(3) An auditor appointed under
sub-section (1) shall hold office until the next Annual General Meeting and
shall be paid such fees as may be determined by the Annual General Meeting.
21. Transfer of interest on
death of a member. On the death of a member, the
rights, interests and liabilities of tile member shall devolve on the legal
heirs or successors of the member and such legal heirs or successors shall
become the members of the society in place of tile deceased member.
CHAPTER VI
PROPERTY AND FUNDS OF THE
SOCIETY
22. Assets of the Society.___ (1) A society shall have its own
assets consisting of its properties built or acquired out of’ the Development
Fund and such funds and properties as may be prescribed.
(2) A society may purchase any
land or other property for the purposes of setting up its office or any agro‑based
industry car for such other projects of public utility.
(3) Subject to such limits as
may be prescribed. a society may, in so far as may be necessary for the
purposes of the society, borrow money on the security of its property or of
land forming part of the co‑operative farm.
(4) Where a society borrows
money on the security of its property and also of the land forming part of the
co‑operative farm, the society shall, as far as practicable, repay the
loan obtained by it on the security of such land in priority to the other loans.
23. Provisions for Reserve Fund
Development Fund and other expenses.___ (1) Every society shall maintain
a Reserve Fund and a Development Fund.
(2) The Reserve Fund shall be
utilized to meet natural calamities affecting the co‑operative faun or
other property of the society and for such other purposes, and in such manner,
as the committee may determine.
(3) The Development Fund shall
be utilized for the development of the co‑operative farm and
establishment of agro‑based industries, hospitals and schools and for
such other purposes as, may be determined by the society.
(4) Every society may recover
from the produce income of the co‑operative farm sufficient amount to
meet its office expenditure, for the contribution it has to make to the
District Co‑operative Federation and for the payment of fees to the
auditors and of such traveling allowance and daily allowance to its
representatives for attending meetings of the District Co‑operative
Federation as it may from time to time determine.
24. Distribution of produce
income of co‑operative farm.___Out of the produce income of
the co‑operative farm the direct expenses on account of agricultural
inputs, including seeds, fertilizers pesticides, water charges, land revenue,
maintenance of tractors, tube‑wells, farm animals and agricultural
implements, consumption of electricity, depreciation on fixed assets and the
expenses referred to in subsection (4) of section 23, shall first be deducted
and the balance shall be distributed as follows, namely:---
(a) not less than five per cent each
for the Reserve Fund and Development Fund shall be set apart; and
(b) of the remaining amount, forty
per cent shall be distributed amongst the members in proportion to the value of
the land pooled by them and sixty per cent amongst the workers, including
working members, and other staff working on the farm according to the quality
and quantity of the work done, as determined by the committee.
25. Distribution of profits. The net profits of the society from sources other than the co‑operative
farm shall be distributed as follows, that is to say,---
(a) one‑third shall be set
apart for credit to the Development Fund and repayment of loans, in such
proportion as may be determined by the society; and
(b) the remaining two‑thirds
shall be distributed amongst the members in proportion to the value of the land
pooled by them.
26. Rights of tenants etc.___ (1) The tenants of the land
pooled by a member for a co‑operative farm shall stand ejected from such
land upon its being so pooled.
(2) The tenants ejected from any
land by virtue of sub-section (1) shall be given preference in providing
employment on the co‑operative farm or in the agro‑based industries
of the society and if a member withdraws from the society or the society is
wound up, the tenancy rights of such tenants shall stand restored.
CHAPTER VII
LIQUIDATION AND WINDIING UP
27. Winding up.___ (1) If one third of the total
number of members of a society apply to the Chairman of the District Co‑operative
Federation for winding up the society and the Chairman, after such enquiry as
he may deem fit, is of the opinion that the society ought to be wound up, he
may issue an order directing it to be wound up, and when necessary may appoint
a liquidator for the purpose from amongst the members of the District Co‑operative
Federation and fix his remuneration.
(2) A copy of an order passed
under sub-section (1) shall be sent to the Registrar.
28. Winding zip if membership is
reduced.___ (1) Where the membership of a
society is reduces to less than twenty members or the area of the cooperative
farm is reduced to less than the minimum area specified in clause (b) of
sub-section (1) of section 4, the Chairman of the District Co‑operative
Federation may, after allowing the society a period of sixty days to make up
the deficiency by order in writing direct that the society be wound up, and
when necessary, may appoint a liquidator .or the purpose from amongst the
members of the District Co‑operative Federation and fix his remuneration.
(2) A copy of an order passed
under sub-section (1) shall be sent to the Registrar.
29. Effect of winding up. When a society is wound up,---
(a) the standing crop of the co‑operative
farm shall be harvested and the produce income distributed in accordance with
the provisions of this Act;
(b) the land comprising the co‑operative
farm shall revert to the members together with improvements, if any, made by
the society and subject to the encumbrances, if any, created thereon by the
society and subject to payment by each member of the cost of such improvements
on his land as at the tune of the winding up;
(c) after all the liabilities of the
society have been met, the assets of the society, including the Reserve Fund,
shall, subject to clause (d) be divided amongst the members in proportion to
the value of the land pooled by them; and
(d) the hospitals, schools and other
social institutions, if any, established by the society shall stand transferred
to, and vest in, the District Co‑operative Federation and shall be
managed by it in accordance with schemes prepared by it and approved by the
Provincial Co‑operative Federation.
30. Power of Chairman of
District Co‑operative Federation to assess damage. Where, in the course of the winding up of a society, it appears
that any person who has taken part in the organisation or management, of the
society or any past or present member or office‑bearer of a committee or
officer of the society has misapplied or retained or become liable or accountable
for any money or property of the society or has been guilty of breach of trust
in relation to the society. the Chairman of the District Co‑operative
Federation may, of his own motion or on the application of a liquidator or any
other interested person, hold an inquiry into the conduct of such person,
member or officer and make an order requiring him to repay or restore the money
or property or any part thereof respectively with interest at such rate as the
chairman thinks just , or to contribute such sum to the assets of the society
by way of compensation in regard try the misapplication, retainer or breach of
trust as the Chairman thinks just.
31. Bar of suit. Save as is otherwise provided in the Act, no civil court shall
have jurisdiction in respect of any matter arising out of any proceedings
under this Act or connected with the winding up of a society nor shall any suit
or other legal proceedings lie or be proceeded with against the society, except
by the leave of the Chairman of the Provincial Co‑operative Council and
subject to such terms as he may impose.
32. Arbitration.___ (1) If any dispute with regard
to the business of a society other than a dispute regarding disciplinary action
taken by the society or its committee against a paid servant of the society,
arises,---
(a) between the members or past
members of a society, or persons claiming through a member or past member; or
(b) between the members or past
members or persons so claiming and any past or present office‑bearer; or
(c) between the society or its
committee and any past or present member of the society; or
(d) between the society or its
committee and any past or present of member of the society;
it shall be reported to the
Chairman of the District Co‑operative Federation. who shall refer it for
decision to not more than three arbitrators appointed by him from amongst the
members of the ‘District Co‑operative Federation.
(2) Any party aggrieved by the
award of the arbitrators under sub-section (1) may within one month of the
date of the communication of the order, prefer an appeal to the District Judge.
(3) The award of arbitrators, or
an award passed in appeal by the District Judge under sub-section (2), shall,
subject to the provisions of section 54, be final and shall not be liable to be
called in question in any Court.
33. Attachment before award. Where a dispute has been
referred to arbitration under section 32 and the arbitrators are satisfied on
inquiry or otherwise that a party to such arbitration is, with intent to delay
or obstruct the execution of any award that may be made, about to dispose of
the whole or any part of his property, the arbitrators may direct the
conditional attachment of the said property and such attachment shall have the
same effect as if made by a competent civil Court.
34. Recoveries of dues. Every award made under section 32, every order passed in appeal
under that section, and every order passed under section 5 shall be deemed to
be a decree of a civil Court and shall be executed in the same manner as a
decree of such court.
CHAPTER VIII
FEDERATION OP THE SOCIETIES
35. District Co‑operative
Federation.___ (1) In each district in which
not less than two societies are in existence, there shall be formed a District
Cooperative Federation of Co‑operative Farming Societies which shall
consist of one representative from each society in the district.
(2) Each District Co‑operative
Federation shall elect at its general meeting its office‑bearers,
including the Chairman, two representatives for the District Co‑operative
Council and one representative for the Provincial Co‑operative
Federation, provided that till such time as the requisite number of representatives
mentioned in sub-section (1) are available, two or more representatives shall
carry out the responsibilities of all the required office‑bearers.
(3) The office‑bearers,
including the Chairman and representatives shall hold office for a term of two
years.
(4) A representative for a
District Co‑operative Council or a Provincial Co‑operative
Federation may, by writing under his hand addressed to the Chairman of the
District Co‑operative Council or, as the case may be, the Provincial Co‑operative
Federation, resign his office.
36. Fund and functions of
District Co‑operative Federation.___ (1) A District Co‑operative
Federation shall have a fund to which shall be credited the contributions
received by it from the societies and out of which shall be defrayed the
contributions it shall make to the Provincial Co‑operative Federation and
the office and other expenses of the District Co‑operative Federation.
(2) A District Co‑operative
Federation shall deal with matters of mutual interest to the societies in the
district and make recommendations to the District Co‑operative Council on
matters with which the Provincial Government is concerned.
37. Provincial Co‑operative
Federation.___ (1) There shall be formed in
each Province a Provincial Federation of Co‑operative Farming Societies
which shall consist of one representative from each of the District Co‑operative
Federations within the Province.
(2) Each Provincial Co‑operative
Federation shall elect in its general meeting its office‑bearers,
including the Chairman, five representatives for the Provincial Co‑operative
Council and one representative for the National Cooperative Council.
(3) A representative shall hold
office for a term of one year.
(4) A representative for a
Provincial Co‑operative Council or the National Co‑operative
Council, may, by writing under his hand addressed to the Chairman of the
Provincial Co‑operative council or as the case may be, the National Co‑operative
Council, resign his office.
(5) The Provincial Co‑operative
Federation may make bye‑laws relating to its meeting and procedure and
the performance of its functions.
38. Fund and functions of the
Provincial Co‑operative Federation.___ (1) A Provincial Co‑operative
Federation shall have a fund to which shall be credited the contributions
received by it from the District Co‑operative Federation and out of which
shall be defrayed its office and other expenses.
(2) The functions of the
Provincial Co‑operative Federation shall be to deal with matters of
mutual interest to the societies in the Province and make recommendations to
the Co‑operative Council on matters with which the Provincial Government
is concerned.
39. District Co‑operative
Council.___ (1) There shall be formed in
each district a District Co‑operative Council which shall consist of the
heads of the nation‑building departments in the district and two
representatives of the District Co‑operative Federation:
Provided that, pending the
availability of the representatives of the District Co‑operative
Federation, the District Co‑operative Council may consist of only the
heads of the said departments.
(2) The elected Chairman of the
District Council established under the Provincial Law relating to local
government shall be the ex officio Chairman of the District Co‑operative
Council.
(3) Pending the election of the
Chairman of the District Co‑operative Council referred to in sub-section
(2) the Chairman shall be appointed by the Provincial Government from amongst
the members of the council.
(4) The District Co‑operative
Council may make bye‑.laws relating to its meetings and procedure and the
performance of its functions.
40. Functions of the District Co‑operative
Council.___ (l) A District Co‑operative
Council shall, of its own motion or on the recommendation of the District Co‑operative
Federation, co‑ordinate
the services of the different nation‑building departments and the
District Co‑operative Federation and extend all possible assistance to
the societies within the district.
(2) A District Co‑operative
Council shall review the decisions taken by it from time to time, the progress
of co‑operative farming movement within the district and suggest measures
for its improvement and future development.
(3) The Provincial Government shall
make available to a District Cooperative Council such funds as the Provincial
Government may consider adequate for enabling the Council to perform its
functions.
41. Provincial Co‑operative
Council.___ (1) There shall be formed in
each Province a Provincial Co‑operative Council which shall consist of
all the Secretaries to the Provincial Government in the nation‑building
departments and five representatives of the Provincial Co‑operative
Federation.
(2) The Provincial Minister
dealing with the matters relating to cooperation shall be the ex-officio Chairman of the Provincial Co‑operative
Council and the Secretary of the department dealing with such matters shall he
the ex-officioSecretary of the Council.
(3) The Provincial Co‑operative
Council may make bye‑laws relating to its meetings and procedure and the
performance of its functions.
42. Functions of the Provincial
Co‑operative Council.___ (1) The Provincial Co‑operative
Council shall co‑ordinate the activities of all the District Cooperative
Councils within the Province, ensure uniformity of policy throughout the
Province and perform at the Provincial level the functions assigned by section
40 to the District Co‑operative Council at the district level.
(2) The Provincial Government
will make available to the Provincial Cooperative Council such funds as the
Provincial Government may consider adequate for enabling the Council to perform
its functions.
43. National Co‑operative
Council.___ (1) As soon as may be after the
commencement of this Act the Federal Government shall constitute the National
Co‑operative Council which shall consist of the following members, namely,---
(a) the Federal Minister‑in‑charge
of the Ministry dealing with matters relating to co‑operatives, who shall
be the Chairman of the Council;
(b) the Provincial Ministers dealing
with matters relating to Co‑operation in each Province;
(c) one representative of the
Provincial Co‑operative Federation; and
(d) such other members as the Federal
Government may appoint:
Provided that, for the first
constitution of the National Co‑operative Council the members referred to
in clause (c) shall be nominated by the Chairman of the Council.
(2) The National Council may
make bye‑laws relating to its meetings and procedure and the performance
of its functions.
44. Functions of the National Co‑operative
Council.___ (1) The National Cooperative
Council shall co‑ordinate the activities of the Provincial Co‑operative
Councils and ensures uniformity of policy in all the Provinces by laying down
policy guidelines for the working of the Provincial Co‑operative Councils
and the District Co‑operative Councils.
(2) The National Co‑operative
Council shall review its decisions taken from time to time and the progress of
the co‑operative movement in all the Provinces and suggest measures for
its over‑all future development.
(3) The National Co‑operative
Council shall also maintain liaison between the Federal and Provincial nation‑building
departments and arrange for the holding of national and international seminars
on various aspects of co‑operative farming.
(4) The Federal Government shall
make available to the National Cooperative Council such funds as the Federal
Government may consider adequate for enabling the Council to perform its
functions.
CHAPTER IX
INSPECTION OF AFFAIRS
45. Inquiry by Chairman District
Co‑operative Federation. ___(1) The Chairman of tile
District Co‑operative Federation may. of his own motion, by himself or by
a person duly authorized by him in writing in this behalf hold an inquiry into the
constitution, working and financial condition of a society.
(2) The Chairman of the District
Co‑operative Federation shall hold such an inquiry as is contemplated in
sub-section (1) of this section,---
(a) on the application of a majority
of the committee of the society, or
(b) on the application one‑third
of the members of the society.
(3) All officers and members of
the society whose affairs are investigated shall furnish such information in
their possession in regard to the affairs of the society as the person holding
the inquiry may require.
(4) The result of any inquiry
under this section shall be communicated to the society whose affairs have been
investigated.
46. Inspection of books of
indebted society.___ (1) the Chairman of the District
Co‑operative Federation may, on the application of a creditor of a
society, inspect or direct some person authorized by him by order in writing in
the behalf to inspect the books of the society:---
Provided that the applicant,---
(a) satisfies the Chairman that the
debt is a sum then due, and that he has demanded payment thereof and has wit
received satisfaction within a reasonable time; and
(b) deposits with the Chairman such
sum as security for the costs of the proposed inspection as the Chairman may
require.
(2) The Chairman shall
communicate the result of any such inspection to the creditor.
47. Power of Chairman District
Cooperative Federation to exercise powers under section 30 in the course of an
inquiry or inspection. Where in the course of any
inquiry under section 45 or an inspection under section 46, it appears to the
Chairman of the District Co‑operative Federation that there exists any
such grounds as is specified in section 30, he may of his own motion or on the
application of the person authorized by him under section 45 or section 46,
exercise the powers specified in section 30.
48. Costs of inquiry. Where an inquiry is held under section 45 or an inspection is made
under section 46, the Chairman of the District Co‑operative Federation
may apportion the costs, or such part of the costs, as he may consider proper
between the society, the members of creditor demanding the inquiry or
inspection, the officers or former officers, and the members or past members of
the society:
Provided that,---
(a) no order of apportionment of the
costs shall be made under the section unless the society or person liable to
pay the costs thereunder has or have been heard or has or have had a reasonable
opportunity of being heard; and
(b) the Chairman shall record the
grounds on which the costs were apportioned.
49. Recovery of costs. Any sum awarded by way of costs
under section 48 may be recovered, on application by the Chairman of the
District Co‑operative Federation to a Magistrate having jurisdiction in
the place where the person from whom the money is claimable actually and
voluntarily resides, or carries on business, by the distress and sale of any
movable property within the limits of the jurisdiction of such Magistrate
belonging to such person, and such Magistrate shall proceed to recover the same
to the same manner as if it were a fine imposed by himself.
50. Amalgamation or transfer of
societies.___ (1) Any two or more societies
may. with the approval of the District Co‑operative Federation, by
resolution passed by a three‑fourths majority of the members present at a
special general meeting of each such society held for the purpose, amalgamate
as a single society:---
Provided that each member has
had fifteen clear days’ notice of the resolution and the date of the meeting.
(2) An amalgamation referred to
in sub-section (1) may be effected without a dissolution, or a division of the
funds, of the amalgamating societies and the resolution of the societies
concerned shall on such amalgamation, be a sufficient conveyance to vest the
assets and liabilities of the amalgamating societies in the amalgamated
society.
(3) Any society may, by a
resolution passed in accordance with the procedure laid down in subsection (1)
transfer its assets and liabilities to any other society which is prepared to
accept them:
Provided that, when any such
amalgamation or transfer of assets and liabilities involves the transfer of its
liabilities by any society to any other society, it shall not be made without
giving three months’ notice to the creditors of both or such societies:
Provided further that if a
creditor of any of the societies concerned objects to such amalgamation or
transfer of assets and liabilities and gives written notice to that effect to
the society or societies concerned one month before the date fixed for the
amalgamation or transfer, the amalgamation or transfer shall not be made until
the dues of such creditor have been satisfied.
51. Powers to exempt from stamp
duty or registration fee, etc. The Provincial Government may, by notification in the official
Gazette, reduce or remit,---
(a) the stamp‑duty with which.
under any law for the time being in force, any instrument executed by or on
behalf of a society or by an officer or member and relating to the business of
the society, or security bonds executed by or on behalf of officers or servants
of a society, or awards of the arbitrators under this Act, are chargeable; and
(b) any fee payable under the law
relating to the registration of documents or to court‑fees for the time
being in force.
52. Exemption from income‑tax. The earnings of a society and the dividend paid by it to its
members shall be exempt from income‑tax.
53. Notice necessary in suits. No suit shall be instituted against a society or any of the office‑bearers
in respect of any act relating to the business of the society until the
expiration of three months next, after notice in writing has been given to the
Chairman of the District Cooperative Federation.
54. Power of revision. The Chairman of the Provincial Co‑operative Council may, of
his own motion or otherwise call for the record of any case or proceedings
under this Act for the purpose of satisfying himself as to the correctness,
legality or propriety of any decision or order passed by any authority, and may
pass such order in relation thereto as he may think fit:
Provided that no order shall be
passed under this section revising or modifying an order affecting any person
unless such person has been afforded an opportunity of being heard.
55. Transitional provisions.___ (1) Till such time as the
District Cooperative Federation is formed in a District and its Chairman has
been elected,---
(a) the powers and functions of the
District Co‑operative Federation under this Act and the rules shall be
exercised and performed by the District Co‑operative Council; and
(b) the powers and functions of the
Chairman under this Act and the rules shall be exercised and performed by the
Chairman of the District Cooperative Council.
(2) Till such time as the Provincial Co‑operative Federation
is formed in a Province, its powers and functions under this Act and the rules
shall be exercised and performed by the Provincial Co‑operative Council.
56. Power to make rules. The Provincial Government may make rules for carrying out the
purposes of this Act.
157. Repeal. The Co‑operative Farming Ordinance, 1976 (XXII of 1976), is
hereby repealed.
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