Rajasthan Co-Operative Societies Rules, 1966

Published vide Notification No. F. 4 (6) Co-operative 1/65/4173, dated 26-12-66, Published in Rajasthan Gazette, Part 4-C, Ordinary, dated 23-3-67

RJ801

LEGISLATIVE HISTORY 6

And subsequently amended also by the following notifications:

· Notification No. F. 4(11) Agriculture/4/Co-op/83, dated 6.8.83 Published in Rajasthan Rajpatra Part IV-C(I), dated 9.8.83, Page 143

· Notification No. F. 4(15) Agriculture IV/Co-op/88, dated 15.7.89 Published in Rajasthan Rajpatra Part IV-C(I), dated 24.8.89, Page 199

· Notification No. F. 4(15) Agriculture/Gr.IV/Co-op/88, dated 31.8.90 Published in Rajasthan Rajpatra Part IV-C(I), dated 4.6.92, Page 246

In exercise of the powers conferred by sub-sections (1) and (2) of section 148 of the Rajasthan Co-operative Societies Act, 1965 (Rajasthan Act 13 of 1965), the Government of Rajasthan hereby, makes the following rules the same having been previously published as required by sub-section (1) of section 148 of the said Act, namely:-

CHAPTER I

Preliminary

Short title and extent.- (1) These rules may be called the Rajasthan Co-operative Societies Rules, 1966.

(2) They shall extend to the whole of the State of Rajasthan.

Definitions.- In these rules, unless the context otherwise requires:-

(a) "Act" means the Rajasthan Co-operative Societies Act, 1965 (Rajasthan Act 13 of 1965):

(b) "Agricultural Marketing Society" means a society the object of which is the marketing of agricultural produce and the supply of implements and other requisites for agricultural production, of which not less than three-fourth of the members are agriculturists or societies formed by agriculturists;

(c) "Apex Society" means a society whose principal object is to provide facilities for the operation of other societies affiliated to it and whose area of operation extends to the whole of the State of Rajasthan;

(d) "Bonus" means payment made in cash or kind out of the profits of a "society to a member, or an employee, on the basis of his contribution (including any contribution in the form of labour or service) to the business of the society, and in the case of a joint farming society, on the basis both of such contribution and also the value or income or, as the case may be, the area of the lands of the members brought together for joint cultivation as may be decided by the society;

(e) "Central Society" means a Society other than a Land Development Bank, whose area of operation is confined to a part of the State and which has as its principal object the promotion of the principal objects and the provision of facilities for the operations of other societies affiliated to it, and not less than five members of which are themselves societies;

(f) "Consumers Society" means a society the object of which is the procurement, production or processing, and distribution of goods to, or the performance of other services for, its members as also other customers;

(g) "Co-operative Bank" means a society registered under this Act and doing the business of banking, as defined in clause (b) of sub-section (1) of section 5 of the Banking Companies Act, 1949;

(h) "Co-operative Year" means the year ending on the [31st day of March] or in the case of any co-operative society or class of cooperative societies the accounts of which are balanced on any other date, with the previous sanction of the Registrar, the year ending on such date;

(i) "Credit Society" means a society the main object of which is to lend money to its members;

(j) "Dividend" means the amount paid, out of the profits of a society, to a member in proportion to the shares held by him;

(k) "Farming Society" means a society in which, with the object of increasing agricultural production, employment and income and the better utilisation of resources, lands are brought together and jointly cultivated by all the members, such lands (a) being owned by or leased to the members (or some of them), or (b) coming in possession of the society in any other manner whatsoever;

(l) "General Society" means a society not falling in any of the classes of societies defined by the other clauses of these rules;

(m) "Housing Society" means a society the object of which is providing members with dwelling houses or the construction of houses for its members or the financing or facilitating the construction of houses by its members;

CHAPTER II

Registration of Co-operative Societies

Rural Families included in "Weaker Section".- The following classes of persons shall be categorized as economically and socially backward or neglected sections of the village community:-

(i) Agriculturists owing or cultivating not more than one standard acre of land;

(ii) Persons belonging to scheduled castes, scheduled tribes, denotified and nomadic tribes;

(iii) Landless agricultural labour;

(iv) Village artisans and workers engaged in small crafts; and

(v) Persons, other than agriculturists, engaged in productive vocations subsidiary to agriculture e.g. milk production, poultry farming etc.:

Provided that a person belonging to categories (ii) to (v) does not have annual income exceeding Rs. 500/-.

Application for Registration.- (1) Every application for registration of a society under section 6 shall be made in such form as may be specified by the Registrar from time to time and shall, subject to .the provisions of sub-rules (2) and (3) be duly signed by the applicants, and be accompanied by:-

(a) three copies of the proposed bye-laws of the society.

(b) a certificate, from the co-operative bank stating the credit balance in favour of the proposed society therein.

(c) a list of 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) in case of a producers' society the scheme showing the details explaining how the working of the society will be economically sound.

(e) in case of a Service Co-operative Society, a list of the members of the weaker section as per rule (3).

(f) such other documents as may be specified in the model bye-laws, if any, framed by the Registrar.

(2) Where any member of the proposed society is a registered society, the application for registration shall be signed by a member of the registered society duly authorized for the purpose by the committee of the registered society and a copy of such resolution authorizing the member shall be appended to the application.

(3) Where any member of a society to be registered is a corporate body, or a local authority then such corporate body or local authority shall duly authorize any person to sign the application for registration on its behalf, and a copy of the resolution giving such authority shall be appended to the application.

(4) The promoters of the proposed society shall also intimate while sending the application for registration, the name and address of one of the applicants to whom correspondence before the registration of the society, if any, may be addressed by the Registrar.

(5) On receipt of an application for registration the Registering Authority shall enter particulars of the application in the register of applications to be maintained in such form as may be specified by the Registrar.

Registration.- (1) On receipt of an application under rule 4, the Registrar, shall examine the proposed bye-laws and may give, wherever necessary, opportunity to the promoters to modify the proposed bye-laws before finally registering the society or rejecting the application for registration of the society.

(2) On registering a society and its bye-laws under section 8, the Registrar shall grant to the society, a certificate of registration signed by him and bearing his official seal and containing the registration number of the society, and the date of its registration and shall also furnish the society with a copy of the bye-laws approved and registered by him. The Registrar shall, as soon as may be, notify the registration of the society in the Official Gazette.

(3) The register to be maintained by the Registering Authority for the registration of the society shall be in such form as the Registrar may, from time to time, specify.

Form of report under section 8(2).- The report to be made by the Registrar to the Government under sub-section (2) of section 8 shall be in Form "A".
Refusal of Registration.- (1) Where any society does not furnish the information in regard to the society as required by the Registrar or fulfil any of the conditions laid down in the Act or these rules, or the Registrar may not consider the registration of the society in the interest of the co-operative movement or in public interest, he may refuse to register the society.

(2) If the Registrar refuses to register a co-operative society, he shall communicate the order of refusal with reasons therefor to the applicant referred to in sub-rule (4) by registered post.

Subject-matter of bye-laws.- (1) The bye-laws of a co-operative society shall provide for the following matters namely:-

(a) the name and address of the society;

(b) the area of its operation;

(d) the manner in which funds may be raised and the maximum share- capital which a single member may hold;

(e) the nature and extent of the liability of the members;

(f) the extent to which the society may borrow funds and the rates of interest payable on such funds;

(g) the entrance and other fees to be collected from members;

(h) the purposes for which its funds may be applied;

(i) the terms, qualifications and conditions of admissions of members and their rights and liabilities;

(j) in the case of credit societies;

(i) the maximum loan admissible to a member,

(ii) the maximum rates of loans to members,

(iii) the conditions on which loans may be granted to members,

(iv) the procedure for granting extension of time for the repayment of loans and advances,

(v) the consequences Of default in payment of any sum due, and

(vi) the circumstances under which a loan may be recalled,

(k) the mode of conducting business, purchase, sale, stock taking and other allied matters in case of non-credit societies;

(l) the mode of holding meetings and issue of notice;

(m) the mode of appointment of the committee by election or otherwise and removal of the committee and mode of appointment and removal of other officers, the duties and powers of the committee and such officers and their term; (n) the disposal of net profits;

(o) the preparation and submission of the annual statements specified by the Registrar and the publication of the same; and

(p) the constitution of an "Agricultural Credit Stabilisation Fund" in case of every co-operative society which facilitates the operations of affiliated agricultural co-operative credit societies and which has received financial assistance from the Government.

(q) constitution and maintenance of Funds;

(r) the privileges, rights, duties and liabilities of members including nominal, and associate members;

(s) the manner of making, altering and abrogating bye-laws;

(t) the Chairman's powers, duties and functions and his removal oh his losing support of the majority;

(u) the mode of convening annual and special general meetings issue of notices, and the business which may be transacted there at;

(v) to send a representative to another society;

(w) any other matters incidental to the management of its business.

(2) A society may make bye-laws for the following matters, namely:-

(a) the method of recruitment, the conditions of service and the authority competent to fix, revise or regulate the scales of pay and allowances of paid officers and employees of the society and the procedure to be followed in the disposal of disciplinary cases against them;

(b) the circumstances under which withdrawal from membership may be permitted;

(d) the conditions, if any, under which the transfer of share or interest of a member may be permitted;

(e) the method of appropriating payments made by members from whom moneys are due;

(f) powers of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the society.

Classification and sub-classification of societies.- (1) After registration of a society, the Registrar shall classify the society into one or other of the following classes and sub-classes of societies specified below according to the principal object provided in its bye-laws:-

Class	Sub-class	Examples of societies falling in the class or sub-class, as the case may be
1	2	3
1. Agricultural Marketing Society		All purchase and sale Unions and Marketing Societies of Agricultural Produce
2. Consumers Society		Federations, Stores and Canteens
3. Co-operative Bank	(a) Apex Bank (b) Central Bank (c) Other Banks	“Financing Bank” having jurisdiction over the whole of the State of Rajasthan District Central Banks having provisions in their bye-laws to advance loans to Co-operative Societies Urban Banks, Land Development Banks, Salary Earners Societies
4. Farming Society	(a) Collective Farming Society (b) Joint Farming Society	Farming Societies where ownership is vested in the Society Societies where the ownership is retained by members
5. Housing Society	(a) Tenant Ownership Housing Society (b) Tenant Copartnership Housing Society (c) Other Housing Societies	Housing Societies where land is held either on leasehold or free- hold basis by societies and houses are owned or are to be owned by members Housing Societies which hold both land and building either on leasehold or freehold basis and allot them to their members House Mortgage Societies and House Construction Societies
6. Processing Society	(a) Agricultural Processing Society (b) Industrial Processing Society	Societies, which process Agricultural produce like Co-operative Sugar Factories and Oil mills Wool Processing and Tanners’ Societies, Spinning Societies
7. Producers society	(a) Industrial Producers Society (b) Labourers Industrial Society (c) Agricultural Producers’Society	Weavers’ and Carpenters’ Societies Forest Labourers’ Societies and Labour Contract Societies Cattle Breeding, Dairy and Poultry Societies
8. Resource Society	(a) Urban Credit Resource Society (b) Non-Credit Resource Society (c) Service Cooperative Society	Urban Employees Credit and Thrift Societies Seeds and implements and Agricultural Requisites Societies Service Co-operatives, Multipurpose Co-operatives and Agricultural Credit Societies
9. General Society	(a) Social (b) Commercial (c) Others	Better Living Societies and Education Societies Insurance and Motor Rickshaw Puller Transport Societies Not falling in either of the above sub-clauses

Change of form and extent of liability.- (1) The change of liability of a society from unlimited to limited, and vice versaor in terms of multiple of share capital, shall be secured by passing a resolution in that behalf at a general meeting of the society indicating in clear terms the manner of changing the liability. The society shall give thirty 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 sent to the Registrar within thirty days of its passing.

(2) Every notice to be given by the society under sub-section (2) of section 12 shall be sent by post under certificate of posting or otherwise to the address of each of its members and creditors as recorded in the books of the society. A copy of such notice shall be exhibited on the notice board of the 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 sent 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-section (4) of section 12, the value of a share of a member in a society shall be ascertained as follows:-

(a) In the case of a society with unlimited liability, the value of a share shall be the actual amount received by the society in respect of such share.

(b) In the case of a 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 society as shown in the last audited balance sheet, provided that it shall not exceed the actual amount received by the society in respect of such share.

(4) Any member or creditor desiring to exercise this option under sub-section (2) of section 12 shall inform the society accordingly in writing, and when he does not propose to withdraw his entire shares or deposits, the member or creditor shall clearly indicate in writing the extent of his withdrawal. The society shall examine and draw up a scheme for orderly payment of all claims in an equitable manner including shares, the value of 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 the 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 extent of liability of a society shall not be deemed to be changed in accordance with resolution passed aforesaid.

(5) After the Registrar approves the scheme, the society shall make payments to members and creditors as provided in clause (b) of sub-section (4) of section 12, make a report to that effect to the Registrar and furnish the Registrar with a proposal to amend the bye-laws of the society duly passed in that behalf. On receipt of the proposal, the Registrar shall register the amendment in accordance with the provisions of section 13.

Procedure regarding amendment of bye-laws.- (1) Where a co-operative society proposes to amend its bye-laws, no such amendment shall be made save by a resolution passed by a two- thirds majority of the members present and voting, at a general meeting of the society:

Provided that model bye-laws or amendment previously approved by the Registrar may be adopted by simple majority.

(2) No such resolution shall be valid, unless notice of the proposed amendment has been given to the members of the society at least 15 days before the general meeting.

(3) After the resolution is passed, an application shall be made to the Registrar alongwith:-

(a) A copy of the relevant bye-laws in force with amendment proposed to be made in pursuance of the resolution together with reasons justifying such amendments:

(b) Three copies of the bye-laws as it would stand after amendment, signed by the officers duly authorized in this behalf by the society;

(d) A copy of the resolution referred to in sub-rule (1);

(e) The total number of members of the society on the date of such meeting;

(f) The number of members who formed the quorum of such meeting;

(g) The number of members present at such meetings;

(h) The number of members who voted for the amendment;

(i) A certificate signed by the officers duly authorized by the society that the procedure specified in sub-rule (1) and sub-rule (2) and in the bye-laws has been followed, and

(j) Such other information as may be required by the Registrar.

(4) Every such application shall be made within fourteen days from the date of the general meeting at which such amendment was passed:

Provided that the Registrar may condone the delay, if any, for sufficient cause.

(5) On receipt of a copy of the resolution and other particulars referred to in sub-rule (3), the Registrar shall examine the amendment in the light of the provisions under sub-section (2) of section 13, and if he is satisfied, he may register the amendment and issue to the society a copy of the amendment registered by him as per provision under sub-section (3) of section 13. Where the Registrar is of the opinion that the proposed amendment may be accepted subject to any modification, he may indicate to the society such modification after explaining in writing his reasons therefor.

Amalgamation, division and Reorganisation of societies.- (1) Every society desiring to effect amalgamation, transfer assets and liabilities, or division under section 16 shall frame a full scheme of amalgamation or division or transfer of assets and liabilities indicating how proposed amalgamation, transfer of assets, and liabilities or division would be useful to the society and be given effect to. Where the scheme involves a division of a society into two or more societies, it shall contain proposals regarding the name, the area of operation, draft bye-laws and the list of members and creditors of the new society or societies into which the society would be divided.

(2) After framing the scheme of amalgamation or division under sub-rule (1), the society shall convene a special general meeting by giving a written notice of twenty-one-days to all its members alongwith the proposed scheme of amalgamation or division. In the case of the society desiring amalgamation with or transfer of the assets and liabilities in whole or in part to any other society (hereinafter referred to as the other society), the society shall send a copy of the notice and the proposed scheme to the other society also for information. The society shall pass a resolution for amalgamation, transfer of assets and liabilities or division, as the case may be. by two-thirds majority of the members present and voting at the special general meeting and shall in the case of the amalgamation or transfer of assets and liabilities forward a copy of such resolution to the other society.

(3) After the receipt of the resolution the other society shall convene a special general meeting by giving a written notice of twenty-one days to all its members alongwith the scheme of amalgamation or division and draft amendment to its bye-laws, if any, and pass a resolution by two-thirds majority of the members present and voting at the special general meeting for approving the scheme of amalgamation or division, as the case may be, and the amendment to its bye-laws, if any, and send a copy of its resolution in respect of the approval to the society which has decided to amalgamate or divide itself.

(4) The affected society shall, in the case of amalgamation or transfer of assets and liabilities, after the receipt of the approval under sub-rule (3) and in the case of division, after passing of the resolution under sub-rule (2) take action under sub-section (4) and (6) of section 16'.

(5) The affected society shall submit a report to the Registrar of the action taken by it and request him to approve the decision for amalgamation, transfer of assets and liabilities or division.

(6) On receipt of the report from the affected society under sub-rule (5), the Registrar shall, after satisfying himself that the procedure has been properly followed, approve the decision of the society and register the amalgamated or divided society or societies and cancel the registration of societies which have been amalgamated or divided.

Direction by Registrar for Amalgamation, division and Reorganisation of societies.- (1) Before issuing any order under section 17 for the amalgamation, transfer of assets and liabilities, division or reorganisation of any society or societies, the Registrar shall prepare a draft scheme in respect of such amalgamation, division or reorganisation stating in particular the manner in which the new committee or committees of the society or societies resulting from such amalgamation, division, or reorganisation shall be constituted and the bye-laws which such society or societies shall follow. The Registrar shall send a copy of the draft of the order proposed to be issued by him under section 17, to the society or each of the societies concerned calling upon it or them to invite objections or suggestions from any member or class of members thereof or from any creditor or class of creditors and to submit such objections or suggestions together with its own or their own opinion within a period of not less than two months from the date on which the copy of the aforesaid draft was received by it or them.

(2) The Registrar shall consider all such suggestions and objections and make such modifications 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 section 17.

(3) Any member or creditor of each of the societies to be amalgamated, divided or re-organised who has objected to the scheme of amalgamation, division or reorganisation within the period specified in sub-rule (1), may apply to the Registrar for payment of his share or interest, if he be a member, and the amount in satisfaction of his dues, if he be a creditor. Such application shall be separate and distinct from the objection or suggestion which he may have submitted to the society or the Registrar under clause (b) of sub-section (2) of section 17. It shall be competent for the Registrar to nominate an officer to investigate such applications and 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 society concerned to meet in full or satisfy otherwise all due claims of the members and creditors and thereupon the 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.

CHAPTER III

Members of Co-operative Societies: Their Rights and Liabilities

Admission of Firm, Companies, Local Authorities as member under Section 19(1)(d).- The following persons, bodies or local authorities may be admitted as members of a co-operative society:-

(a) a firm, a company or any other body corporate constituted under any law for the time being in force, or the society registered under the Societies Registration Act, 1958.

(b) Zila Parishads or Panchayat Samitis constituted under Rajasthan Panchayat Samitis and Zila Parishads Act, 1959.

(d) a Public trust registered under any law for the time being in force for the registration of such trust.

(e) a municipality constituted under the Rajasthan Municipalities Act, 1959.

(f) a Khadi Village Industries Board constituted under the Khadi and Village Industries Act No. 5 of 1955:

Provided that a firm, a company, municipality or any other body constituted under any law for time being in force shall not be admitted as member in any co-operative society except with the previous sanction of the Registrar and that the application for membership is accompanied by a resolution authorising to apply for such membership.

(2) No person shall be admitted as a member of a society unless,-

(i) he has applied in writing for membership:

(ii) his application is approved by the committee of the society in pursuance of the powers conferred on it in that behalf and subject to such resolution as the general body of members may, in pursuance of the powers conferred on it in that behalf from time to time, pass, or is admitted by the orders of the Registrar in pursuance of sub-section (4) of section 19 and in the case of nominal or associate member, by an officer of the society authorised in that behalf by the bye-laws;

(iii) he has fulfilled all other conditions laid down in the Act, the rules and the bye-laws.

Admission of Associate members under section 20.- (1) The following may be admitted as nominal, associate member:-

(i) in case of financing bank, other than a Land Development Bank, a person who maintains a deposit of at least Rs. 500/-in the deposit account of the Bank; and

(ii) in case a marketing society, a person who carries on business in agricultural commodities in the area of operation of the society and has dealings with it.

(2) The following local authorities may be admitted as associate members in a co-operative society;-

(i) Zila Parishads and Panchayat Samitis constituted under the Rajasthan Panchayat Samitis and Zila Parishads Act, 1959; and

(ii) Panchayats constituted under the Rajasthan Panchayat Act, 1953.

Disqualifications for membership.- (1) No person shall be eligible for admission as a member of a co-operative society, if he-

(a) has applied to be adjudicated an insolvent or is an undischarged insolvent; or

(b) is adjudged by a court of competent jurisdiction to be of unsound mind or;

(c) has been sentenced for any offence, other than an offence of a political character or an offence not involving moral turpitude, such sentence not having been reversed or the offence pardoned, and a period of five years has not elapsed from the date of expiry of the sentence:

Provided that the provision of sub-rule (1)(c) shall not apply to a person sentenced for any offence, during the period he is undergoing the sentence in the Jail and seeking admission as a member of a society formed for the betterment of the prisoners and meant exclusively for the inmates of the Jail, but such person shall cease to be a member of such society as soon as he is released from the Jail:

Provided further that a convict can be admitted as a member of a co-operative society even after his release from Jail if his good conduct is certified by a Jail authority not below the rank of a Superintendent of Jail.

(2) If a member becomes subject to any of the disqualifications specified in sub-rule (1), he shall be deemed to have ceased to be a member from the date of his incurring the disqualification.

Prohibition of membership in two credit societies.- No individual, being a member of a primary co-operative credit society shall be a member of any other such society other than a Land Development Bank or a marketing society without the general or special sanction of the Registrar, and where an individual has become a member of two such credit societies, either or both of the societies shall be bound to remove him from membership upon a written requisition from the Registrar to that effect.
Procedure for expulsion of Members.- (1) Any member who has been persistently defaulting payment of his dues or has been failing to comply with the provisions of the bye-laws regarding sales of his produce through the society or, other matters in connection with his dealings with the society or who, in the opinion of the committee, has brought disrepute to the society or has done other acts detrimental to the interest or proper working of the society may, by a resolution passed by a majority of not less than three-fourth of the members entitled to vote who are present at a general meeting held for the purpose, expel a member from the society:

Provided that no resolution shall be valid, unless the member concerned is given an opportunity of representing his case to the general body, and no resolution shall be effective unless it is approved by the Registrar.

(2) Where any member of a society proposes to bring a resolution for expulsion of any other member he shall give a written notice thereof, to the Chairman of the society. On receipt of such notice or when the committee itself decides to bring in such resolution, the consideration of such resolution shall be included in the agenda for the next general meeting and a notice thereof shall be given to the member against whom such resolution is proposed to be brought, calling upon him to be present at the general meeting, to be held not earlier than a period of one month from the date of such notice and to show cause against expulsion to the general body of members. After hearing the member, if present, or after taking into consideration any written representation which he might have sent, the general body of members shall proceed to consider the resolution.

(3) When a resolution passed in accordance with sub-rule (1) or (2) is sent to the Registrar or otherwise, brought to his notice the Registrar may consider the resolution and after making such inquiries as he may deem fit, give his approval and communicate the same to the society and the member concerned. The resolution shall be effective from the date of such approval.

(4) Expulsion from membership may involve forfeiture of shares held by the member.

(5) No member of a society who has been expelled under the foregoing sub-rules shall be eligible for re-admission as a member of that society, or for admission as a member of any other society, for a period of one year from the date of such expulsion:

Provided that the Registrar may, on an application by the Society and in special circumstances, sanction the re-admission, or admission within the said period, of any such member as a member of the said society or of any other society, as the case may be.

Cessation of membership.- A person shall cease to be a member, of a society on his resignation from the membership thereof being accepted or on the transfer of the whole of his share or interest in the society to another member, or on his death, removal or expulsion or incurring any of the disqualification specified in the Act and rules.
Nomination of an heir.- (1) A member of a co-operative society may nominate a person or persons to whom in the event of his death, his share or interest in the capital of the society shall be transferred or the value thereof or any other moneys due to him from the society shall be paid. Such member may, from time to time, revoke or vary such nomination.

(2) The number of persons who may be nominated by a member shall not exceed the number of shares held by the member.

(3) When a member nominates more than one person in respect of any shares held by him, he shall, as far as practicable, specify the amount to be paid or transferred to each nominee in terms of a whole share.

(4) A nomination made by a member under this rule shall not be valid and shall not, in the event of the death of the member, have effect, unless:-

(a) it is made in writing and is signed by the member in the presence of at least two witnesses: and

(b) it is registered in the books of the society kept for the purpose.

Procedure for admission of joint members and minor and persons of unsound mind inheriting the share or interest of deceased member.- (1) A society may admit joint members provided they make a declaration in writing that the person whose name stands first in the share certificate shall have the right to vote and all the liabilities will be borne jointly and severally by them as provided in the Act, rules and bye-laws.

(2) In accordance with the procedure laid down in its bye-laws and these rules for admission of any member, a society may admit minors and persons of unsound mind inheriting share or interest of deceased members as its members through their legal representatives or guardians, respectively. The members so admitted will enjoy such rights and liabilities through such legal representatives or guardians as are laid down in the bye-laws of the society that are consistent with the Act and rules.

Valuation of shares.- (1) Where member of a society ceases to be a member thereof, the sum representing the value of his share or interest in the share capital of the society to be paid to him or his nominee, heir, or legal representative, as the case may be, shall be ascertained in the following manner, namely:-

(i) In the case of a society with unlimited liability, it shall be the actual amount received by the Society in respect of such share or interest;

(ii) In the case of a society with limited liability, it shall be the amount arrived at by a valuation based on the financial position of the society as shown in the last audited balance sheet preceding the cessation of membership:

Provided that the amount so ascertained shall not exceed the actual amount received by the society in respect of such share or interest.

(2) Where a person is allotted a share by a society, the payment required to be made therefor shall not exceed the face value of the share notwithstanding anything contained in the bye-laws of the society.

(3) When a share is transferred by a member to another member duly admitted as a member of a society, the transferee shall not be required to pay anything in excess of the value of the share determined in accordance with sub-rule (1).

Register of Members.- A Register of members shall be kept by every society in such form as the Registrar may, from time to time, specify.
List of members of Co-operatives.- Every co-operative society shall prepare a list of its members as on the last day of each cooperative year. The list shall be kept open at the office of the society during office hours for inspection by any member of the society. The list of members shall be revised thirty days prior to the date of the meeting fixed for the election of the committee of the society and shall include the member admitted and exclude the members removed during the period commencing from the date when the list was revised and ending with the date of the revision of the list. The list shall be in form "B".
Restrictions of defaulting member to vote at the election.- No member shall be eligible to vote at the meeting fixed for any election if on the date thirty days prior to the date of such meeting, he is a defaulter against whom decree has been issued under section 117.
Admission of members before the general meeting of a society.- No co-operative society shall admit members within thirty days prior to the date of its annual general meeting.
Chairman to have second or casting vote.- In the event of an equality of votes the chairman of a meeting of a co-operative society shall have a second or casting vote.
Disabilities of a defaulting member.- (1) No member of a cooperative society, who is in arrears to the society in respect of any loan taken by him, for such period as is specified in its bye-laws, or in any case for a period exceeding three months, shall be appointed to represent the society in any other co-operative society and to vote on its behalf in such other co-operative society.

(2) Where a member of a co-operative society so appointed falls in arrears to the society for the period specified in sub-rule (1), subsequent to his appointment, he shall cease to be a representative of the society as from the end of the said period.

CHAPTER IV

Management of Societies

First general meeting.- (1) Within three months from the date of registration of a society, the Secretary of the Society shall convene the first general meeting of all persons who had joined in the application for registration of the society, and also those who were admitted to membership after its registration. Where the Committee or the Officer fails to convene the meeting as aforesaid, it shall be convened by any person authorised in that behalf by the Registrar.

(2) At the first general meeting, the following business shall be transacted-

(i) Election of a President for the meeting.

(ii) Receiving statement of accounts and reporting all transactions entered into by the society upto 14 days before the meeting.

(iii) Constitution of a committee until elections are held in the next annual general meeting.

(iv) Fixing the limit up to which the funds may be borrowed.

(v) Any other matter which has been specifically mentioned in the bye-laws.

General meeting.- (1) Every society shall within a period of three months next after the date fixed for making up its accounts for the year under the rules for the time being in force, call a general meeting of its members.

(2) All general meetings of a society shall be convened by the Secretary or any other officer authorised by and under the bye- laws to convene such meetings under intimation to the Registrar, who may attend such meetings or authorise some person to attend such meetings on his behalf. The Chairman of the society or in his absence the Vice-Chairman or, in the absence of both, a member elected by members present at the meeting shall preside over the meeting unless the bye-laws specify that the Chairman of the meeting should be elected by the meeting.

(3) Unless otherwise provided in these rules or the bye-laws, a notice of the meeting stating the place, date and hour of the meeting together with a statement of business to be transacted at it shall be sent to every member seven clear days before the date of the meeting in the manner provided in these rules or the bye- laws.

(4) (i) Unless otherwise provided in the bye-laws, the quorum for the general meeting shall be one-fifth of the total number of the members subsisting as such as on the date of a notice of the general meeting.

(ii) No general meeting shall be held or proceeded with unless the number of members required to form a quorum is present.

(iii) If within an hour from the time appointed for the meeting no quorum is formed, in case of a meeting which has been called on the requisition of members under sub-section (1) of section 31 shall not be adjourned but dissolved.

(5) The Secretary or any other officer convening the meeting shall read out the notice convening the meeting and the agenda for the meeting and then the subjects shall be taken up for consideration in the order in which they are mentioned in the agenda unless the members present, with the permission of the Chairman agree to change the order. Unless otherwise specified in the Act, these rules and the bye-laws, the resolutions will be passed by a majority of the members present.

(6) When the members are divided on any resolution, any member may demand a poll. When poll is demanded, the Chairman shall put the resolution for vote.

(7) Voting may be by show of hands or by ballot as may be decided by the members present at the meeting, unless otherwise specified in the bye-laws.

(8) When voting is to be by ballot, the Chairman shall take necessary steps for the issue of ballot papers and counting of votes.

(9) The result of voting shall be announced by the Chairman.

(10) If all the business in the agenda cannot be transacted on the date on which the general meeting is held, the meeting may be postponed to any other suitable date not later than 7 days from the date of the meeting as may be decided by the members present at the meeting.

(11) The remaining subject or subjects on the agenda shall be taken up for consideration at the postponed meeting.

(12) If the general meeting cannot be held for want of quorum, it shall be adjourned to a later hour on the same day as may have been specified in the notice calling the meeting or to a subsequent date not earlier than seven days and not later than 15 days and at such adjourned meeting the business on the agenda of the original meeting shall be transacted whether there is a quorum or not.

(13) No resolution regarding expulsion of a member of a society, removal of a member of the committee or amendment of bye-laws shall be brought forward in any general meeting unless due notice thereof is given in accordance with the provisions of the Act, these rules and the bye-laws of the society.

(14) (i) Every society shall cause minutes of the proceedings of general meetings to be entered in a book kept for that purpose.

(ii) Unless the minutes are drawn up and are duly signed by the Chairman immediately on the termination of the meeting, the minutes free from all alteration or corrections shall be drawn up and shall be signed by the Secretary and the Chairman within 72 hours from the time when the meeting terminated. The minutes so signed shall be the evidence of the proceedings of that meeting.

(iii) Until the contrary is proved, every general meeting of a society, in respect of the proceedings whereof minutes have been so recorded, shall be deemed to have been duly called and held.

(15) In the event of disorder, the chairman may suspend the meeting and adjourn it to such date or time as he may fix as provided in sub-rule (12).

Power to call annual and special general meeting.- Notwithstanding anything contained in these rules or bye-laws of a society as to the mode of summoning a general meeting and the period of notice to be given for the said purpose, the Registrar or any other person authorised by him in this behalf may call the annual general meeting or special general meeting as the case may be, if the annual general meeting of the society is not called in accordance with the provisions of section 30 or if the committee of the society or an officer authorised in this behalf fails to call a special general meeting in accordance with the provisions of section 31 in such manner and at such date, time or place as he may direct and may specify what matters shall be discussed in the meeting. The Registrar or the person authorised by him in this behalf shall have all the powers and functions of the officer of the Society authorised to convene such annual or special general meetings, under its bye-laws and preside at such meeting and exercise all the powers and perform all the duties of the Chairman of a meeting including the power to adjourn the meeting to a date to be specified by him but shall have no vote unless he is a member of the society. In the event of equality of votes, the question shall be decided by drawing lots.
Election of members of Committee by the General Body.- (1) The election of the members of the Committee of every society belonging to the following classes shall be conducted in the manner specified in this rule by an Election Officer appointed by the Registrar:-

(a) Apex Societies;

(b) Central Societies;

(d) Primary Land Development Banks;

(e) Consumers Co-operative Societies;

(f) Housing Co-operative Societies;

(g) All other societies not enumerated above, the share capital of which exceeds Rs. 1 lakh;

(h) Any other society or class of Societies which may be notified by the Registrar, from time to time in this behalf:

Provided that a society may for the purpose of election of members to its committee divide its membership into different groups on a territorial or any other basis. The bye-laws of such a society may specify the number or proportion of the members of the committee who may be elected to represent each such group on the committee and may specify further that such representative may be elected:-

(a) by all the members of the society: or

(b) by only that particular group of members of the society to which such representative belongs.

(2) The election shall be held at a general meeting of the Society of which not less than seven clear days notice shall be given to the members. The Election Officer shall commence and conduct the election; provided that at the commencement of the meeting there shall be the quorum specified in the rules or the bye-laws;

(3) (i) The notice of the general meeting shall be sent by the Election Officer to the members by one or more of the following modes, namely:-

(a) by local delivery;

(b) by post under certificate of posting;

(d) by publication through beat of drum; or

(e) by publication through press.

Notice of the general meeting shall also be affixed to the notice board of the Society and published at such public places of importance as may be decided by the Election Officer.

(ii) the notice shall contain information regarding-

(a) the member of vacancies to be filled up by election;

(b) any area or constituency that is specified in the bye-laws from which the members are to be elected;

(d) the date on which, the place at which and the hours between which nomination papers shall be filled by member, such date being not less than three clear days before the date fixed for election, or if that day is a public holiday the next succeeding day which is not a public holiday;

Explanation. - In this clause 'public holiday' means any day which is a public holiday for the purposes of section 25 of the Negotiable Instruments Act, 1881 (Central Act XXVI of 1881), or any day which has been notified by the Government to be a holiday for the Government Offices in the State.

(e) the date on which, the place at which and the hour when the nomination papers will be scrutinized, and

(f) the date on which, the place at which and the hours between which the polling will take place.

[(4)(i) The Election Officer shall prepare a list, as it stood thirty days prior to the date fixed for the poll of members who are qualified in accordance with the provisions of Act, rules and the bye-laws framed thereunder to vote at the election and publish by affixing them to the notice board at the Head Office of the society and all its branches for inviting objections within a week. The list shall specify the admission number name of the eligible members and in case of individual member, the name of the father or husband, as the case may be, and the address of such members.

(ii) The Election Officer after considering the objections shall finalise the list and publish the same as above not less than ten days prior to the date fixed for the election. A copy of the list shall be supplied by the Election Officer to any member on payment of Rupee One per folio.]

(5) [(i) The nomination of a candidate for election shall be in form "G". For form shall, on application, be supplied to a member on payment of Rupees Two by the Election Officer.]

(ii) Every nomination paper shall be signed by two members whose names are included in the list referred to in sub-rule (4). One of the members shall sign the Form as proposer and the other as seconder for the nomination. The nomination paper shall also contain a declaration signed by the candidate proposed for election to the effect that he is willing to stand for election.

[(iii) Every nomination paper accompanied with the security amount mentioned below, shall be presented in person to the Election Officer by the candidate himself or by his proposer or seconder, before the date and hour specified in notice referred to in sub-rule (3):-

(1)	Primary Society	Rs. 25/-
(2)	Marketing Society	Rs. 50/-
(3)	Wholesale Bhandar	Rs. 50/-
(4)	Primary Land Development Bank	Rs. 100/-
(5)	Central Co-operative Bank	Rs. 100/-
(6)	Apex Society	Rs. 250/-]

(iv) (a) The Election Officer shall enter on the Nomination paper its serial number and certify the date and hours at which the nomination paper is received by him and also immediately acknowledge receipt of the nomination paper.

(b) Nomination papers received after the date and hours fixed under clause (ii) of sub-rule (3) shall be rejected.

(6) (i) (a) On the day following the date fixed for the receipt of nomination papers, the Election Officer shall take up the scrutiny of the nomination papers at the time fixed under clause (ii) of sub-rule (3). The candidates for election, their proposers or seconders may present themselves at the time of scrutiny.

(b) The Election Officer shall examine the nomination papers and shall decide all objections which may be made at the time of scrutiny and may either on such objection or on his own motion after such summary enquiry, if any, as he thinks necessary, reject any nomination for valid reasons:

Provided that the nomination of a candidate shall not be rejected merely on the ground of an incorrect description of his name or of the name of his proposer or seconder, or of any other particulars relating to the candidate or his proposer or seconder, as entered in the list of members referred to in sub-rule (4), if the identity of the candidate, proposer or seconder, as the case may be, is established beyond reasonable doubt.

(ii) The Election Officer shall give all reasonable facilities to the contesting candidates or their representatives to examine all the nomination papers.

(iii) The Election Officer shall endorse on each nomination paper, his decision accepting or rejecting the same and, if the nomination paper is rejected, he shall record in writing a brief statement of his reasons for such rejection.

(7) The list of valid nominations, shall be published on the notice board of the Society on the same day on which the scrutiny is completed.

(8) (i) Any candidate may withdraw his candidature by notice in writing signed by him and delivered at any time after the presentation of his nomination paper but before 5 P.M. on the day following the day on which the valid nominations are published under sub-rule (7) to the Election Officer by such candidate in person. A notice of withdrawal of candidature once given shall be final.

(ii) The list of contesting candidates shall be published on the notice board of the society after the time of withdrawal is over, on the same day.

[(iii) The candidates shall be allowed symbol out of the symbols given below:-

(1) Horse and Rider.

(2) Tiger.

(3) Sword.

(4) Bus.

(5) Cycle.

(6) Umbrella.

(7) Spade.

(8) Cart.

(9) Flower.

(10) Watch.

(11) Sheep.

(12) Lock.

(13) Lantern.

N.B. - If the number of candidates exceeds 13, the Election Officer may allot any other symbol other then the Election symbol of any Political Party.]

(9) If for any area or constituency for which election is to be held, the number of candidates in respect of whom valid nomination papers have been filed does not exceed the number of candidates to be elected for that area or constituency, the candidates for whom valid nominations have been received shall be deemed to have been duly elected for the area or constituency as the case may be and the names of such candidates shall be published on the notice board of the society, after the date and time fixed for withdrawal under sub-rule (8).

(10) If the number of candidates for any area or constituency for which valid nominations have been received exceeds the number to be elected, the Election Officer shall arrange for taking a poll on the date fixed for the purpose and he may appoint one or more polling officers, as may be necessary.

(11) The Election Officer shall provide the Polling Officer with the ballot boxes, ballot papers, copy of the list of members referred to in sub-rule (4) and such other articles as may be necessary for the conduct of the election. The ballot box shall be so constructed that ballot papers can be introduced therein but cannot be taken out therefrom without the box being unlocked.

(12) A candidate contesting the election may by a letter to the Election Officer, appoint an agent to represent him at every booth where polling is held. Such letter shall contain the consent in writing of the agent concerned.

(13) Immediately before the commencement of the poll, the Election Officer or the Polling Officer as the case may be, shall show the empty ballot box to such persons as may be present at the time and shall then lock it up and place his seal upon it in such manner as to prevent its being opened without breaking the seal. The candidate or his agent may also affix his own seal, if he so desires.

(14) The ballot papers shall contain the names of the candidates and the seal of the society.

(15) Each polling station and where there is more than one polling booth at a station, each such booth shall contain a separate compartment in which the members can record their votes screened from observation.

(16) No ballot papers shall be issued to a member unless the Polling Officer is satisfied that the member concerned is the same person as noted in the list of members furnished to him.

(17) On receiving the ballot paper, a member shall forthwith proceed into the polling compartment, make the mark 'X' or '+' on the ballot paper against the name or names of the candidate or candidates for whom he desires to vote and put the ballot paper in the ballot box with the utmost secrecy.

[(18) If owing to the blindness or other physical infirmity a member is unable to mark the ballot paper, the Election Officer or Polling Officer as the case may be, shall ascertain from him the candidate or candidates in whose favour he desires to vote, make the mark on his behalf and put the ballot paper in the ballot box.]

(19) The counting of votes shall commence immediately after the polling is completed. Votes shall be counted by or under the super vision of the Election Officer. Each candidate and his authorised agent shall have a right to be present at the time of counting.

(20) (i) A ballot paper shall be rejected:-

(a) if it bears any mark by which the member who voted can be identified: or

(b) if it does not bear the seal of the society: or

(c) if the mark indicating the vote thereon is placed in such manner as to make it doubtful to which candidate the vote has been casted.

(ii) The authority competent to reject a ballot paper shall be the Election Officer.

(21) (i) Soon after the counting of votes is over, the Election Officer shall prepare and certify a return setting forth:-

(a) total number of ballot papers issued;

(b) the number of valid votes given to each candidate;

(c) the number of ballot papers declared to be invalid or rejected. On the basis of this return, the candidates who have secured the largest number of valid votes shall be declared elected at the general meeting and their names shall be published on the notice board of the Society under the signatures of the Election Officer; and

(d) in case of equality of votes polled by two or more candidates lots shall be drawn in such manner as the Election Officer may fix to determine the name or names of the successful candidate or candidates.

(ii) The result of the election shall be attested by the Election Officer and should also be recorded in the minute book of the society.

(22) The Election Officer shall take custody of the ballot papers. Ballot Papers and other records relating to the election shall be secured in a container which shall be affixed with the seal of the Election Officer and of the candidates who desire to affix their seals. All ballot papers and other election materials so sealed and secured in a container shall be delivered by the Election Officer to the Assistant Registrar of the District having jurisdiction for safe custody and preservation for a period of three months from the date of the poll. They shall be destroyed after the said period of three months, if no dispute relating to or in connection with that election is referred to the Registrar.

(23) The election of the members of the Committee of Primary Agricultural Credit Societies shall be conducted by an Election Officer appointed by the Registrar in such manner as has been provided in the bye-laws of such Society under reference subject to such further instructions as the Registrar may issue in this behalf from time to time.

(24) The election of the members of the committees of such Societies as have not been specified in sub-rule (1) and (23) of this rule, shall be conducted in such manner as have been provided in their respective bye-laws: Provided that the Registrar may in respect of any society to which this sub-rule applies, where a Committee has not been appointed under the proviso of section 33 of the Act, appoint any person as an Election Officer to conduct the election for the constitution of a committee in accordance with the bye-laws of such society. The Election Officer shall in such cases record the result of the election in the minute book of the society and attest the same.

Election of Chairman, Vice-Chairman etc. by members of the Committee.- (1) (i) The election of Chairman, Vice-Chairman and Secretary, Treasurer or any other Officer by whatever name he is designated shall be by ballot in the manner specified in this rule.

(ii) In cases of all societies specified in sub-rules (1) and (23) of rule 32, the Registrar shall appoint an Election Officer to conduct the elections in the manner specified in sub-rules (2) to (8) hereunder for the office bearers mentioned in clause (i) above. In case of all other societies, such elections shall be conducted as specified in sub-rule (9);

(2) As soon as the members of the Committee have been elected, the Election Officer shall arrange to convene a meeting of the members of the Committee for the purpose of election of office bearers (other than those required to be elected in the general meeting);

(3) The nomination papers shall be presented to the Election Officer at the meeting, in the form prescribed in sub-rule (5) of rule 32. The Election Officer shall decide the objections, if any, which may be made at the time, to any nomination, after making such summary enquiry as he thinks necessary announce the name or names of the eligible candidate or candidates.

(4) Where there is not more than one valid nomination for any office, the Election Officer shall declare the candidate in respect of whom the nomination paper has been received duly elected to such office.

(5) Where there is more than one valid nomination, for any office, the Election Officer shall forth-with arrange for taking a poll in the manner prescribed in sub-rules (13) to (18) of rule 32.

(6) As soon as all the members present have recorded their votes or the time fixed for voting is over the Election Officer shall open the ballot box in the presence of the members, count the votes and announce the results of election declaring the candidate or candidates elected who have secured highest votes and indicate the number of votes secured by each. In the event of equality of votes polled by two or more candidates, lots shall be drawn in such manner as may be determined by the Election Officer.

(7) The proceedings of the meeting with the result of the election shall be recorded in the minutes book of the society and attested by the Election Officer;

(8) The ballot papers and other records shall be secured in a container which shall be affixed with the seal of the society and of the candidates who desired to affix their seal and they shall be preserved for three months from the date of election. They shall be destroyed after that period, if no dispute relating to or in connection with the election is referred to the Registrar.

(9) The Election of the Chairman. Vice-Chairman, Secretary, Treasurer or any other Office bearer of Societies by whatever name he is designated belonging to classes not specified in sub-rules (1) and (23) of rule 32 shall be conducted as follows;-

(a) As soon as the members of the committee have been elected the outgoing Chairman of the Society shall arrange to convene a meeting of the members of the committee for the purpose of election of the officers.

(b) The meeting shall be presided over by the Chairman or Vice Chairman of the society, if he is not a candidate for election, or any other member not being a candidate for election chosen by the committee, or any person authorised by the Registrar (such person being hereinafter in this rule referred to as the Presiding Officers) for the purpose.

(c) The Presiding Officer shall proceed to conduct the election in the manner prescribed in sub-rules (3) to (8) of this rule: provided that all references to the Election Officer in the aforesaid sub-rules shall be deemed to be references to the Presiding Officer for purposes of this sub-rule.

Appointment of Committee.- (1) Subject to the provisions contained in sections 33 and 36 of the Committee of a society shall be constituted in the manner provided in the bye-laws. The number of members of the committee of a society shall in no case be less than five:

Provided that where the bye-laws so provide, the Government or the Registrar may nominate all or any of the members of the committee for such period as may be specified in the bye-laws.

[(2) The members of the committee shall continue in office for such term as may be specified in the bye-laws.]

(3) A casual vacancy in the office of an elected members shall be filled up by co-option by the remaining members of the committee or any other mode specified in the bye-laws. Such member shall hold office till the next general meeting when the vacancy shall be filled by-election.

(4) The Registrar or any other authority competent to register a society other than a financial bank shall be the specified authority to nominate as members of the committee on behalf of the Government under section 35.

(5) The Committee shall as soon as may be possible elect from among its members a chairman and such other officers as are specified in the bye-laws unless they provide for such election by general meeting.

[(6) A committee shall take office on the expiry of such term of the previous committee as may be specified in the bye-laws.]

Disqualification for representation.- (1) (a) No society shall elect any member as its delegate, who suffers from any of the disqualifications laid down in rule 36 to represent the society in another society or to the committee of another society.

(b) A money lender as defined in the Rajasthan Money-Lenders Act, 1963 (Act 2 of 1964).

(2) A delegate of a society sitting on the committee of another society or representing it in another society shall cease to hold his office as such:-

(a) if he suffers from any of the disqualifications laid down under the rule 36;

(b) if he ceases to be a member of the society from which he is delegated; or

(d) if the committee of a society which elected him has been removed under sub-section (1) of section 36; in which case the person appointed under the said sub-section shall have power to nominate himself to fill the vacancy so caused; or

(e) if he was appointed to manage the affairs of a society after the removal of the committee under sub-section (1) of section 36; when a new committee is constituted under subsection (4) of section 36; or

(f) if the registration of the society of which he is a delegate is cancelled or orders for winding up of the society have been issued.

Disqualification for membership of Committee.- (1) No person shall be eligible for election or appointment as a member of the committee of a co-operative society, if-

(a) he is, in the opinion of the Registrar persistently and deliberately committing breach of the co-operative discipline with reference to linking up of credit with co-operative marketing or co-operative processing, or

(b) he has, directly or indirectly, any interest in any subsisting contract made with the society or in any property sold or purchased by the society or in any other transaction of the society, except in any investment made in, or any loan taken from, the society; or

(d) he is a paid employee of a society unless the society is composed of exclusively of paid employees; or

(e) is or becomes of unsound mind:

Provided that a Government servant shall be eligible for appointment as a member of the Committee of a society composed of exclusively of Government Employees; or as a nominee of the Government or any authority specified by the Government in this behalf under section 35, or as a nominee of the Government or the Registrar under the authority given by the bye-laws, or is a representative of such a society of which all the members are Government Servants or employees of a society.

(2) (i) A member of a society who carries on business of the kind carried on by his society, shall not be eligible to be a member of the committee of that society without the general or special sanction of the Registrar.

(ii) Where any person not eligible to be a member of the committee without the general or special sanction of the Registrar is elected to be a member of such committee without the sanction of the Registrar, he shall cease to be a member of the committee on receipt of a written requisition by the Committee in that behalf from the Registrar.

(3) He has been convicted of an offence under Untouchability (Offences) Act, 1955 (Central Act 22 of 1955).

(4) He has been convicted of an offence punishable under the Rajasthan Prevention of Mirtyu Bhoj Act, 1960.

(5) A member of the committee of a society shall cease to hold office if he incurs any of the disqualifications mentioned in sub-rule (1) or (2) or (3) or (4) or incurs any of the disqualifications specified by the Act or ceases to be member of the society (unless he is nominated or co-opted member of the committee).

Remuneration payable to Administrator.- (1) The remuneration payable to an Administrator appointed under section 36 shall be such as the Registrar may, from time to time, determine.

(2) The amount of such remuneration and other costs, if any, incurred by the Administrator in relation to the management of the co-operative society shall be payable from the funds of the society.

Procedure for appointment, suspension and removal of member or members of the committee and other officers, etc.- (1) Notwithstanding anything contained in the bye-laws of a society but subject to the provisions of section 36, the Registrar may by an order-

(a) remove the committee and appoint an Administrator, who shall be Government servant, to manage the affairs of the society; or

(b) remove any member of the committee of a society and get the vacancy filled up for the remainder of the term of the outgoing member according to the bye-laws.

(2) Before making any order under sub-rule (1), the Registrar shall consult the financing bank to which the society is affiliated and give an opportunity to the committee or the member concerned to show cause, within fifteen days from the date of issue of notice, why such an order shall not be made.

(3) The member appointed under clause (b) of sub-rule (1) shall hold office so long as the member in whose place he is appointed would have held office, if the vacancy had not occurred, or till the next general meeting when the vacancy shall be filled by election whichever is earlier.

(4) Immediately after the appointment of an administrator under sub-rule (1), the committee in whose place such appointment is made and officers of the society shall give the administrator the charge of all the books, accounts, documents, papers, securities, cash and other properties belonging to. or in the custody of the society.

(5) The Chairman or any officer of a society may be removed from the office by a resolution of a general meeting specifically convened for the purpose.

Notice of meeting of the committee.- The notice of a meeting of the committee of a society specifying the place, date and hour of the meeting together with an agenda of business to be transacted thereat shall be given not less than 7 days or such less period as may be provided in the bye-laws, to each member of the committee in writing or in such other manner as may be laid down in the bye-laws, before the date of the meeting:

Provided that any urgent business though not included in the agenda accompanying the notice may, however, be brought up and considered with the consent of all the members present at the meeting.

Procedure to be adopted for taking possession of books, documents, securities, cash, other properties etc. of the society.- (1) Where taking possession of books, accounts, documents, papers, securities, cash or other properties of a society is considered necessary and where taking of such possession is resisted or obstructed, the Registrar, the liquidator, the administrator or any other person entitled to the same may take or cause to be taken order for seizing the books, accounts, documents, papers, securities, cash or other properties of the society, as the case may be in the manner provided in section 37.

(2) Any person appointed by the Registrar as a Liquidator of a society or any person authorised by the Registrar to audit the accounts of a society under section 68 or any person authorised by the Registrar to hold an inquiry into the constitution, working and financial conditions of a society under section 70 or any person authorised by the Registrar to inspect the books of a society under section 71 or inspection of Books by Financing Banks under section 72 shall, in cases where the misappropriation of funds, breach of trust or fraud has been committed or where it is suspected or apprehended that the books, accounts, documents, papers, securities, cash or other properties of a society are likely, to be tampered with or destroyed or removed and where taking possession of such books, accounts, papers, securities, cash or other properties is considered necessary, shall follow the same procedure, with the previous permission of the Registrar, as is laid down in section 37 for the purpose of obtaining such possession.

Officers and employees of co-operative societies.- (1) Notwithstanding anything contained in the bye-laws of society no Cooperative society shall appoint any person as its paid officer or employees in any category of service, unless he possess the qualifications and furnishes the security if so specified by the Registrar from time to time, for such category of service in the society, or for the class of society to which it belongs. The conditions of service of the employees of the societies shall be as specified by the Registrar.

(2) No co-operative society shall retain in service any paid officer or employees, if he does not acquire the qualifications or furnish the security as is referred to in sub-rule (1) within such time as the Registrar may direct.

(3) The Registrar may for special reasons, relax in respect of any paid officer or employee, the provisions of this rule in regard to the qualifications he should posses or the security he should furnish.

(4) Where in the course of an audit under section 68 or an inquiry under section 70 or an inspection under section 71 or section 72 it is brought to the notice of the Registrar that a paid officer or servant of a society has committed or has been otherwise responsible for misappropriation, breach of trust or other offence, in relation to the society, the Registrar may, if in his opinion there is prima facieevidence against such paid officer or servant and the suspension of such paid officer or servant is necessary in the interest of the society direct the committee of the society pending the investigation and disposal of the matter, to place or cause to be placed such paid officer or servant under suspension from such date and for such period as may be specified by him.

(5) On receipt of a direction from the Registrar under sub-rule (4), the committee of the society shall, notwithstanding any provision to the contrary in the bye-laws, place or cause to be placed the paid officer or servant under suspension forthwith.

(6) The Registrar may direct the committee to extend from time to time the period of suspension and the paid officer or servant suspended shall not be reinstated except with the previous sanction of the Registrar whose decision shall be final.

(7) If the committee fails to comply with the direction issued under sub-rule (4), the Registrar may make an order placing such paid officer or servant under suspension, from such date and for such period as he may specify in the order and thereupon the paid officer or servant, as the case may be, shall be under suspension.

Prohibition against being interested in contracts etc.- ( 1) No officer of a co-operative society shall have an interest, directly or indirectly otherwise than as such officer,-

(a) in any contract made with the society; or

(b) in any property sold or purchased by the society; or

(c) in any other transaction of the society except as investment made or as loan taken from the society or the provision of residential accommodation by the society to any paid employee of the society.

(2) No officer of a co-operative society shall purchase directly or indirectly, any property of a member of the society sold for the recovery of his dues to the society.

Annual statements of accounts including balance sheet etc.- Within forty-five days of the close of every co-operative year, or within such extended period, as may be specified by the Registrar in the case of any society or class of societies, the committee of every society shall prepare annual statements of accounts showing,-

(i) receipts and disbursements during the previous co-operative year,

(ii) the profit and loss account for the year, and

(iii) the balance sheet as at the close of the year.

These statements of accounts shall be open to inspection by any member during office hours at the office of the society and a copy thereof shall be submitted, within fifteen days from the date of preparation, to the auditor appointed by the Registrar for the audit of that society.

Form for the balance sheet and the profit and loss account.- (1) The balance sheet and the profit and loss account to be laid before the annual general meeting of a society by the committee shall ordinarily be in form "H":

Provided that, it shall be competent for the Registrar to permit a society or class of societies to adopt such other form as he may deem fit.

(2) A copy of the balance sheet and profit and loss account to be presented at the annual general meeting under sub-section (2) of section 30 and a copy of the report of the committee under sub-section (3) of section 30 shall be fixed on the notice board of the society at least fourteen days before the date fixed for the annual general meeting.

CHAPTER V

Privileges of (Do-operative Societies

Raising of funds by societies.- (1) Every society, which has a share capital, shall provide in the bye-laws the maximum amount of such share capital, the number of shares into which it is divided, the class of shares the face value of each share of each class and the rights and liabilities attaching to each class of shares and where the full amount of the share is not payable on allotment, the amount and the number of instalments in which it is required to be paid and such other incidental matters.

(2) Any society, which is authorised under its bye-laws to raise funds by issue of debentures and bonds, may with the prior sanction of the Registrar, frame regulations regarding the maximum amount to be raised by the issue of debentures and bonds, the class or classes of debentures and bonds, the face value of each debenture or bond, the date on which the debentures or bonds are to be redeemed, the rate at which interest is payable, the terms and conditions regarding transfer of debentures and bonds and other incidental matters.

(3) The total amount of debentures and bonds issued at any time together with the other liabilities incurred by the society shall not exceed the maximum amount which the society can borrow under the provisions of rules 59, 60, 61 or 62 as the case may be and its bye-laws.

Additional conditions for raising funds by societies.- The Registrar may, by general or special order, lay down such additional conditions as he deems fit, subject to which and the extent upto which any society or class of societies may receive deposits, issue debentures or raise loans from any creditor other than a Central Bank.
Regulation of loans to be granted by societies.- (1) In case of grant of loans against security of movable or immovable property, the lending society shall maintain such margin as the Registrar may, by general or special order, direct from time to time with reference to different commodities, securities or classes of societies.

(2) In case of cash credit, the amount of loan shall not exceed such multiple of owned funds of the borrowing society as may be laid down by the Registrar from time to time.

(3) It shall be lawful for a society to grant loans without taking security of movable or immovable property if the purpose for which the loans given is considered production worthy or creditworthy and it is reasonably expected that the loans will be repaid by the loanee. The Registrar may, issue directions to societies to ensure that creditworthy purposes indicated above received finance from the societies without any difficulties, on the one hand, and without being detrimental to the financial interest of the societies on the other.

(4) The Registrar may recognise a Central Bank as a Central Financing Agency which shall be primarily responsible for financing credit requirements of all creditworthy purposes through the concerned societies in its jurisdiction. On such recognition, such Bank shall be responsible for making all possible efforts to mobilize local resources for making loans available to the societies in its area. Such loans may be granted for credit worthy purposes, given due importance to the production plans and requirements of various stratas of the producers and co-operative discipline with reference to linking up of credit with co-operative processing or co-operative marketing.

(5) Except with the general or special permission of the Registrar the loan advanced to a member by a society, or to a society by a financing Bank, shall be subject to such conditions as may be laid down by the Registrar, including the maximum amount to be advanced and the period of repayment both in regard to total advances to members and societies as also against different types of securities.

(6) In the matter of grant of loans to societies by Central Banks or to members by Primary Societies, the Registrar may lay down, the procedure regarding receiving applications, assessing credit needs, making inquiries in respect of the production programme for which such loan is required and the procedure for finally sanctioning the loan as also the rates of finance to be followed from year to year and the nature of inquiries to be made for the purpose of financing of different crops and imposition of certain conditions regarding proper utilisation of loans and sale of agricultural produce through specified co-operative organisation before such finance is granted.

(7) The Registrar may by general or special order prohibit or regulate grant of loans by a Central Bank or a society where such grant is considered neither in the interest of the society nor in the interest of that development of co-operative movement on sound lines.

(8) No society shall carry on transactions on credit or sanction trade credit to its members or to non-members except in accordance with the general or special direction that may be issued by the Registrar in that behalf.

Credit limits by non-credit societies.- (1) No society whose objects do not include grant of loan or financial accommodation to its members shall grant loans or sanction credit to any member without the sanction of the Registrar:

Provided that any society which has, as one of its objects supply of goods or services required by members for production purposes, may supply goods or provide services on credit against sufficient security on condition that the cost of the goods supplied or services provided shall be recoverable from the amount of the sale proceeds of the agricultural produce or other goods produced by the member.

(2) A consumer society may sell goods on credit to its members and other customers upto the extent of deposits received from them.

Form of declarations be made by members borrowing loans from certain societies and conditions on which any charge in favour of a society shall be satisfied.- (1) A declaration to be made under clauses (a) and (b) of section 39 shall be in Form "C".

(2) A register of such declarations shall be kept by the society in Form "D".

(3) A charge on any immovable property created by a member in favour of a society for amounts borrowed or likely to be borrowed by him, from time to time, shall, subject to the provisions of clauses (c) and (d) of section 39 continue in force till the person creating the charge ceases to be a member of the society.

(4) Where a member of a society creates a charge on his land or on his interest in any land as a tenant by declaration under section 39, the society may, if compelled to make use of such property for the recovery of the loan granted to such member against the security of such property or interest in the property utilise the whole or any portion of such property which may be sufficient to satisfy the amount due with interest and any incidental expenses incurred in that connection.

(5) Where a charge is created by a member on his land or on his interest in any land as a tenant by declaration under section 39, the society shall record or cause to record such particulars of charge in the Record of Rights maintained by the village officers of the village where such property is situated. Such recording of the charge in the Record of Rights of the village shall be treated as a reasonable notice of such charge created under section 39.

Deduction from the salary or wages.- (1) On the execution of an agreement under sub-section (1) of section 41, the society may send intimation by registered post or by messenger of the execution of the agreement to the employer or the officer disbursing the salary or wages of the member who has executed the agreement and furnish the said employer or officer with a copy of such agreement certified in the manner specified in rule 103. The employer or the officer disbursing the salary or wages shall on receipt of such intimation from the society, make a note of the agreement in the register maintained by him for the disbursement of salary or wages.

(2) A member who has executed such an agreement shall, on every occasion he becomes subject to a new pay disbursing authority whether by reason of change of office or place of employment or otherwise, within a week of his becoming as subject, give intimation of the same to the society. Similarly in case of such change of office or employment the former disbursing authority shall also give intimation to the change of office or place of employment to the society within a week of such change. The society shall within a fortnight of the receipt of such intimation send intimation by registered post or by messenger of the execution of the agreement to such pay disbursing authority and furnish the said authority with a copy of such agreement certified in the manner specified in rule 103. The employer or the officer concerned shall, on receipt of such intimation from the society, make a note of the agreement in the register maintained by him for the disbursement of salary or wages.

(3) Any amount recovered by an employer or officer disbursing salary or wages from an employee by deduction from his salary or wages in pursuance of a requisition received from any society or societies, as the case may be, remitted be such employer or officer as the case may be, to the society or societies concerned as soon as possible and in any case within a period of fourteen days from the date of recovery.

(4) The cost of remittance to the society or societies of the deductions made under sub-section (2) of section 41 shall be borne by the society or societies concerned. The employer or the officers disbursing the salary or wages shall furnish to the society or societies as the case may be, alongwith the remittance a statement of recoveries effected from the members and the cost of remittance, if any, of the money to the society or societies in Form No. E.

(5) Where an amount deducted by the employer or the officer disbursing the salary or wages of the member of a society under sub-section (2) of section 41 is remitted by such employer or officer to a society, the society shall promptly issue to such employer or officer a receipt for the amount so remitted: and the receipt given by the society for such amount shall constitute a good and sufficient discharge of the liability of such employer or officer in respect of any claims by such member against such employer or officer.

(6) Any amount realised by a society from a member by deduction shall be credited by the society to the account of such member on the date on which the amount was deducted by the employer or the officer disbursing the salary or wages irrespective of the date on which the amount was actually received by such society, the particulars of credit for the amount realised shall forthwith be furnished to the members by the society.

(7) The employer or the officer disbursing the salary or wages shall maintain a register showing the recovery and remittance of moneys due to societies in form No. F.

State aid to societies.- (1) Subject to the provisions of the Act, the Government may grant State aid in any form to a society on the following terms and conditions, namely:-

(a) A society receiving State aid shall not pay any dividend or distribute or take any profit in excess of such percentage, rate upon the amount of the capital of the society as the Government may, from time to time, fix.

(b) A society receiving State aid shall, with the approval of the Registrar appoint a paid secretary or manager of the society.

(i) to comply with any general or special order of the Government or Registrar relating to the inspection of the society;

(ii) to permit the inspection of all accounts relating to the society;

(iii) to maintain such accounts and to furnish such statements and returns as the Government or the Registrar may, from time to time, require; and

(iv) to comply with any order or conditions issued or imposed by the Government as may in its opinion be necessary or expedient to safeguard its interest.

(2) If the society to which State aid has been given in any form, fails to comply with any order made under the Act or the rules framed thereunder or commits any breach of any terms or conditions laid down for the grant of State Aid, or if on inspection of accounts, returns, statements or audit report of such society the Government is of opinion that the State aid should be withdrawn, the Government may after considering any representation which the society may make within such time as the Government may allow, in this behalf, make an order directing-

(i) that the balance of any loan outstanding shall be recoverable forthwith;

(ii) that the guarantee given shall cease from the date of such orders;

(iii) that the full value of any other State aid given and enjoyed till the date of the order shall be payable forthwith and the grant of such State aid beyond such date shall be discontinued.

(3) The Government may set out other terms or conditions on which it shall provide State aid to a society.

CHAPTER VI

Properties and Funds of Co-operative Societies

Writing off of bad debts and losses.- All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts, by the auditor appointed under section 68, shall first be written off against the Bad Debt Fund and the balance, if any, may be written off against the Reserve Fund and the share capital of the society.

All other dues and accumulated losses or any other loss sustained by the society which cannot be recovered and have been certified as irrecoverable by the auditor may be written off against the Reserve Fund or share capital of the society:

Provided that:-

(1) no bad debts or losses shall be written off without the sanction of the general body;

(2) before any such bad debts or losses are so written off, the society, if it is affiliated and indebted to a Financing Bank, shall first obtain the approval of that Bank in writing and also the approval of the Registrar. If the society is affiliated but not indebted to the Financing Bank and in all other cases, it shall obtain the approval of the Registrar in writing. If the society is a Central Bank, approval of the State Co-operative Bank and the approval of the Registrar shall first be obtained:

Provided that, in case of societies classified as A or B at the time of last audit, no such permission need be taken if the bad debts are to be written off against the Bad Debt Fund specially created for the purpose:

Provided further that the Registrar may while giving the approval, impose such conditions as to the recoupment of the Bad Debt Fund and restoration of part or whole of the amount written off against the Reserve Fund, from out of future profits as he deems fit.

Co-operative Education Fund.- (1) Every Co-operative Society shall contribute to the "Co-operative Education Fund" to be administered by the State Co-operative Union at a rate of 1% of its net profits out of the net profits of the year.

(2) The contributions payable by a society shall be a charge on the funds of the society and shall be recoverable in the manner provided in Section 118 of the Act as arrears of land revenue and the officer of the society wilfully failing to comply with the requirement of this rule, shall be personally liable for making good the amount to the State Co-operative Union. The amount so allocated shall be remitted to the State Co-operative Union within two months of the date of allocation of the net profits by the General body of the society. The State Co-operative Union shall prepare regulations with the approval of the Registrar for the utilisation and administration of the fund and such regulations shall, among other things, provide for distribution amongst the District Co-operative Unions, and contribution to the All India Co-operative Union. No part of the funds shall be utilised by the State Co-operative Union till the previous permission of the Registrar is obtained or regulations as aforesaid are approved by him.

Investment of other funds.- (1) A society may invest any of its funds (other than the reserved fund) in any of the modes specified in section 63 when such funds are not utilised for the business of the society.

Explanation. - For the purpose of this sub-rule, "business of society" shall include any investment made by the society in immovable property with the prior sanction of the Registrar in the process of Recovery of the society's normal dues or for the purpose of construction of building or buildings for its own use.

(2) The Registrar may, in the case of any society or class of societies, specify by a special or general order the maximum amounts to be invested in any class or classes of securities.

(3) Every society which has invested an amount not less than 10 percent of its working capital in securities shall be required to constitute an investment fluctuation fund. The Registrar may direct that a specified percent of the net profits every year shall be credited to the investment fluctuation fund until, in his opinion, the amount of the funds is adequate to cover anticipated losses arising out of the disposal of the securities.

(4) a society may, with the previous sanction of the Registrar, invest the whole or any portion of its funds in the purchase for lease of land or in the acquisition, construction or renewal of any building that may be necessary to conduct its business. The amount of the funds so invested shall be recouped on such terms as may be determined in each case by the Registrar.

(5) The provision of sub-rule (4) shall not apply-

(a) to immovable property purchased-

(i) by a society at a sale held in execution of a decree obtained by it, for the Recovery of any sum due to it; or

(ii) by a financing bank at a sale held in execution of a decree obtained by a society financed by it, for the recovery of any sum due to such society or at a sale brought about by the liquidator or such society; or

(b) to the purchase or lease of lands or purchase, construction or renewal of buildings by a society whose objects according to its bye-laws include such purchase, lease construction or renewal.

(6) No recoupment of the amount invested under this rule shall be necessary where the investment is made-

(a) by a society from its building fund constituted out of profits;

(b) by a society, other than a credit society, in which the share capital raised from the members is intended to build up the special kind of business for which it has been registered.

(7) Nothing in this rule shall apply to investment of the reserved fund of a society and such investment shall be governed by rule 55.

Object and investment of reserved fund.- (1) A reserve fund maintained by a co-operative society shall belong to the society and is intended to meet unforeseen losses. It shall be indivisible and no member shall have any claim to a share in it.

(2) A co-operative society shall not invest or deposit its reserve fund except in one or more of the modes mentioned in clauses (a) to (d) of section 63 of the Act:

Provided that the Registrar may, by general or special order, permit any co-operative society or any class of co-operative societies to invest the reserve fund or a portion thereof to in its own business:

Provided further that in the case of a society constituted with the object of Co-operative Housing on a co-partnership basis, the Reserve Fund may be utilised for expenditure on the maintenance, repairs and renewal of the buildings of the society and in the case of a Processing Society the Reserve Fund may be utilised in the acquisition purchase or construction of land building and machinery.

(3) No co-operative society whose reserve fund has been separately invested or deposited shall draw upon, pledge or otherwise employ such fund, except with the sanction of the Registrar previously obtained in writing.

(4) The Reserve Fund of a society shall be available, with the sanction of the Registrar, for being utilised for any of the following purposes, subject to the condition that the amount drawn shall be reimbursed as directed by the Registrar, unless the Registrar, dispenses with such reimbursement in special cases:-

(i) to meet unforeseen losses incurred by the society;

(ii) to meet such claims of the creditors of the society as cannot otherwise be met; and

(iii) to provide for other financial needs in times of special scarcity.

Disposal of reserve fund on winding up of a co-operative society.- (1) On the winding up of a co-operative society, the reserve fund together with other funds constituted by the society in accordance with its bye-laws, shall be applied by the liquidator to the discharge of such liabilities of the society as may remain undischarged out of the assets of the society in the following order, namely;-

(a) the debts of the society;

(b) the paid-up share capital; and

(c) the divided upon paid up share capital at rates not exceeding six percent for any period or periods for which dividend has not been paid; or such dividend upon paid up share capital as will bring the dividend to the maximum rate for any period for which the dividend at a rate lower than the maximum specified has been paid. No dividend shall, however, be paid on share capital if the bye-laws of the society do not provide for payment of dividend.

(2) Any surplus funds remaining after the payments mentioned in sub-rule (1) shall be utilised in the following manner and subject to the following conditions, namely:-

(a) in the case of a co-operative society, other than a financing bank-(i) the surplus funds shall be applied to such object of public utility as may be selected by the general body of the dissolved society at a meeting and approved by the Registrar, (ii) if within thirty days after the issue of notice by the liquidator appointed to wind up the affairs of the society, the general body fails to make any selection that is approved by the Registrar, the Registrar may place the surplus funds at the disposal of the State Co-operative Union, to be utilised in the manner as may be directed by the Registrar.

(b) In the case of a financing bank, the surplus funds shall be assigned by the Registrar to the reserve fund or funds of any other financing bank or banks to which the societies working in the area in which the financing bank which is being wound up carried on its operations, are affiliated. If there is no financing bank working in such area, the Registrar shall invest the amount in the State Co-operative Bank, until a new financing bank is formed in such area in which case the funds shall be credited to the reserve fund of such financing bank.

Maintenance and administration of provident fund.- A society which has established a provident fund for its employees under section 67 shall, with the previous approval of the Registrar, frame regulations for the maintenance and utilisation of the provident fund for its employees. Among other matters, such regulations shall provide for the following:-

(i) authority administering the provident fund;

(ii) category of employees entitled to contribute to the provident fund;

(iii) amount (not exceeding ten per cent of the employee's salary) of contribution to be deducted from the employee's salary;

(iv) the rate of contribution (not exceeding the annual contribution made by the employee) to be made by the society.

(v) the purpose for which and the extent to which advances may be made against the security of the provident fund and the period after which this could be done and number of monthly instalments in which it is to be recouped;

(vi) refund of employees' contribution and contribution made by the society;

(vii) mode of nomination for payment of the amount of the provident fund in case of employees' death;

(viii) mode of investment of the provident fund and payment of interest thereon;

(ix) Maintenance of accounts in respect of provident fund drawals and such other matters as may be necessary in such form as may be specified by the Registrar.

Conditions to be complied with by members applying for loans.- (1) Every member of a society applying for a loan from the society shall be required to hold shares in such manner and in such proportion to the amount of loan applied for by him as may be specified in the bye-laws of the society.

(2) Subject to the maximum limit specified in the bye-laws, a loan to be granted to a member of a resource society and the period of its repayment shall be in accordance with the standard laid down by the Registrar.

(3) A loan in excess of the maximum amount may be granted to a member with the previous sanction of the Central Bank to which the society is affiliated:

Provided that, where the amount of loan exceeds twice the maximum limit contained in the bye-laws, prior sanction of the Registrar shall also be obtained.

Conditions for borrowing by societies with limited liability.- (1) No society other than those referred to in rule 60 and 61 with limited liability shall, without the previous sanction of the Registrar, incur liability exceeding in total ten times the total amount of its paid up share capital, accumulated reserve fund and building fund minus accumulated losses:

Provided that central banks and urban banks, shall not except with the previous sanction of the Registrar, incur liabilities exceeding twelve times the total of their paid up share capital, accumulated reserve fund and building fund minus accumulated losses.

Explanation. - In calculating the total amount of liability for the purposes of this sub-rule, in the case of any society or class of societies the bye-laws of which permit borrowing or granting credit facilities on the pledge of agricultural produce or other goods, specified in that behalf by the Registrar, by general or special order, or against mortgage of movable property a sum equal to the amount borrowed by such society or class of societies, on the security of agricultural produce or other goods of such society or its members, shall be excluded from the amount of the actual liability under this rule.

(2) Any society may incur liabilities in excess of the limit specified in sub-rule (1) by receiving deposits or borrowing loans subject to the condition that the amount received as deposits or borrowed as loans in excess of the said limit shall not be utilised in the business of the society but shall be invested in Government Securities which in the case of Central Banks, shall be deposited with the Rajasthan State Co-operative Bank and, in case of other Co-operative Banks, with the Central Banks. No society shall borrow against such securities.

Conditions for borrowing of Rajasthan State Co-operative Bank.- Except with the previous sanction of the Registrar the Rajasthan State Co-operative Bank limited, shall not incur liabilities exceeding in total fifteen times the total amount of its paid up share capital, and all reserves minus accumulated losses, actual bad debts, if any and over due interest:

Provided that, the Bank may incur liabilities in excess' of the aforesaid limit by receiving deposits or borrowing loans subject to the condition that the amount received as deposits or borrowed as loans in excess of the said limit shall not be utilised in the business of the Bank but shall be invested in Government securities which shall be deposited with the Reserve Bank of India. The bank shall not borrow against such securities.

Explanation. - In calculating the total amount of liability for the purposes of this rule, a sum equal to the amount borrowed by the bank on the security of agricultural produce or other goods of the members of the Bank shall be excluded from the amount of the actual liability under this rule.

Conditions for borrowing of Land Development Banks.- Land Development Banks may incur liabilities not exceeding in total twenty times the total amount of their paid up share capital, accumulated reserve and building funds minus accumulated losses.
Loans and deposits from non-members in unlimited liability society.-Every society with unlimited liability shall, from time to time, fix in a general meeting the maximum liability which it may incur in loans and in deposits from non-members. The maximum so fixed shall be subject to the sanction of the Registrar, who may at any time reduce it, for reasons to be communicated by him to the society in writing, and may specify a period not being less than four months, within which the society shall comply with his orders. No such society shall receive any loan or deposit from a non-member, which will make its liability to non-members exceed the limit sanctioned by the Registrar.
Restrictions on transactions with non-members.- On the application of a member of any society or of his own motion, when it appears to the Registrar that it is necessary in the interest of the working of any particular society, to regulate or restrict transactions of such society with any non-member, the Registrar shall, after giving an opportunity to the society of being heard, issue such directions as he may consider necessary regulating or restricting such transactions.
Restrictions on grant of loans by a co-operative society against its own shares.- No society shall grant loans or make advances against the security of its own shares.
Manner of recalling of loan.- (1) Notwithstanding anything contained in the agreement entered into with the borrowing member, the committee of a society shall be entitled, after giving a week's notice to such member, to recall the entire loan amount immediately, when it is satisfied that the loan given has not been applied for the purpose for which it was given or there has been breach of any of the conditions for grant of such loan.

(2) Nothing in this rule shall be deemed to preclude the Registrar from directing the society to recall a loan of his own motion, when it is brought to his notice that the loan given by the society has been misapplied or conditions thereof, have not been followed. The Registrar may make in the matter such inquiries as he may deem necessary and after giving a show cause notice to the society issue with the prior approval of the financing bank, necessary directions to the society. The directions issued by the Registrar in this respect shall be complied with by the society.

Maintenance of fluid resources.- Every society accepting deposits and granting cash credits shall maintain fluid resources in such form and according to such standards as may be fixed by the Registrar, from time to time, by general or special order.
Appropriation of Profits.- (1) A society earning profits, shall calculate the net profits by deducting from the gross profits for the year, all interests accrued and accruing in accounts which are over due establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent taxes and deprecations and after providing for or writing off bad debts and losses not adjusted against any fund created out of profits. A society may, however,, add to the net profits for the year, interest accrued in the preceding years, but actually recovered during the year. The net profits thus arrived at, together with the amount of profits brought forward from the previous year, shall be available for appropriation.

Explanation. - Establishment charges shall also include the remuneration, allowances or honoraria paid or to be paid to a member of the society for the services rendered by him to the society.

(2) In addition to the sums referred in sub-rule (1) the following sums shall be deducted by a society from its profits before arriving at its profit for the purposes of distributable profits:

(i) Contribution, if any, to be made to any sinking fund or guarantee fund constituted under the provisions of the Act, these rules or bye-laws of the society for ensuring due fulfilment of guarantee given by Government in respect of loans raised by the society.

(ii) provision considered necessary for depreciation in the value of any security bonds or shares held by the society as part of its investments.

(iii) Any provision required to be made for the redemption and share capital contributed by Government or by a financial bank.

Distribution of net profits.-The net profits of any society as declared by the Registrar in respect of any co-operative year shall be appropriated in the manner set forth in section 62 subject to the following conditions, namely:-

(1) In a society with shares and limited liability, not less than one-fourth of the net profits shall be carried to the reserve fund. In a society with shares and unlimited liability, not less than one-third of the net profits shall be carried to the reserve fund until the total of reserve fund and other reserves of the society equals the paid -up share capital of the members held by its and there after not less than one-fourth of the net profits shall be so carried:

Provided that in the case of a Farming Society not less than one-tenth of the net profits shall be carried to the reserve fund:

Provided further that, the Registrar may, having regard to the financial position of any society or class of societies, fix the contribution to be made to the reserve fund under this sub-rule at a lower rate, but not lower than one-tenth of the net profits of the society or societies concerned.

(2) Every agricultural credit society other than a Land Development Bank or a society the object of which is to grant long-term loans exclusively on the mortgage of immovable properties and every financing bank other than a financial bank the principal object of which is to provide funds for the grant of long-term loans on the mortgage of immovable properties, shall set apart such percentage of its net profits as may be directed by the Registrar from time to time towards an agricultural credit stabilisation fund to be utilised to enable borrowers to make postponement of repayment of loans on account of famine, drought or such other unforeseen causes. This fund shall not be utilised except with the previous permission of the Registrar.

(3) The payment of dividend on shares to members by a society shall not exceed 10 percent per annum on the paid-up value of each share:

Provided that the Government may, by general or special order, permit any society or class of societies to pay dividend at a rate exceeding 10 percent.

(4) A society may pay, in accordance with its bye-laws bonus to its members, based on the extent of business done by those members with it or on the value of the services rendered by such members to the society, subject to a maximum of 25 percent of the net profits:

Provided that:-

(i) a co-operative society shall not utilise any portion of the bonus accruing on the business done by non-members for payment of bonus to members but shall carry the entire amount so accrued to the reserve fund or business losses reserve.

(5) A society which employs paid establishment may pay bonus to such employees:

Provided that the amount so paid shall not exceed such amount as may be specified in its bye-laws subject to a maximum of two months basic pay.

(6) Subject to the availability of funds, such sum as may be decided upon by the general body calculated at 10 percent of the net profits may be carried to a common good fund for being utilised on any of the object specified in section 2 of the Charitable Endowment Act, 1890 (Central Act VI of 1890) such as medical relief, sanitation, co-operative propaganda, maintenance of library education and relief to poor.

Bonus and Dividend Equalization Fund.- (1) A society may create out of its net profits a fund to be called the Bonus Equalisation Fund and a fund to be called the Dividend Equalisation Fund.

(2) Except otherwise specifically authorised by the Registrar, the funds so created shall be utilised in accordance with the provisions of the bye-laws of the society only for payment of bonus or dividend, as the case may be.

(3) A society may credit in any year a sum not exceeding 2 percent of the paid up share capital to the Dividend Equalization Fund until the total amount in such Fund amounts to 9 percent of the paid up share capital.

CHAPTER VII

Audit Inquiry, Inspection, Surcharge

Audit fees.- (1) Every co-operative society shall pay to the State Government a fee for the audit of its accounts for each co-operative year in accordance with the scale fixed by the Registrar, with the previous approval of the State Government, in respect of the class of societies to which it belongs.

(2) All fees payable under this rule shall be recoverable in the manner specified in section 121 of the Act.

(3) The Registrar may, subject to such conditions as may be laid down by the State Government, remit the whole or any part of the fees payable under sub-rule (1) by a particular society or by a particular class of societies for any year or other specified period by a general or specific order in this behalf.

Procedure for appointment of auditors and for conducting audit.- (1) The audit of accounts of societies shall be conducted by Departmental Auditors or by Certified Auditor appointed by the Registrar from time to time on such terms and conditions as he deems fit:

Provided that, any society or class of societies notified by the Registrar may get their accounts audited by an auditor selected from the panel of certified auditors maintained by the Registrar and published by him in the Official Gazette.

Explanation 1. - For purposes of this Chapter, audit shall include annual or periodical audit, continuous or concurrent audit and test or super-audit and re-audit.

Explanation 2. - For purposes of this rule "a certified auditor" includes,-

(a) a Chartered Accountant within the meaning of the Chartered Accounts Act, 1949.

(b) a person who holds a Government diploma in co-operative accounts or a Government diploma in co-operation and accountancy; or

(c) a person who has served as an auditor in the co-operative department of the Government, and whose name has been included by the Registrar in the panel of certified auditors maintained and published by him in the Official Gazette at least once every three years.

(2) The audit under section 68 shall in all cases extend back to the last date of the previous audit and shall be carried out upto the last date of the co-operative year immediately preceding the audit or where the Registrar so directs in the case of any particular society or class of societies, such other date as may be specified by the Registrar.

(3) The auditor shall submit an audit memorandum to the society and to the Registrar in the Form specified by the Registrar, on the accounts examined by him and on the balance sheet and profit and loss account as on the date and for the period upto which the accounts have been audited shall state whether in his opinion and to the best of his information and according to the explanations given to him, the said accounts given all the information required by the Act in the manner so required and give true and fair view.-

(i) in the case of the balance sheet, of the State of society's affairs as at the end of the financial year or any other subsequent date upto which the accounts are made up and examined by him, and

(ii) in the case of the profit and loss account, of the profit or loss for the co-operative year, or the period covered by the audit, as the case may be.

(4) The audit memorandum shall state,-

(i) whether the auditor had obtained all the information and explanations, which to the best of his knowledge and belief, were necessary for the purpose of his audit;

(ii) whether in his opinion proper books of accounts, as required by the Act, these rules and the bye-laws of the society have been kept by the society so far as it appears from the examination of these books; and

(iii) whether the balance sheet and profit and loss account examined by him are in agreement with the books of accounts and returns of the society.

(5) Where any of the matters referred to in sub-rule (4) are answered in the negative or with a qualification, the audit memorandum shall specify the reasons for the answer.

(6) The audit memorandum shall also contain schedules with full particulars of:-

(i) all transactions which appear to be contrary to the provisions of the Act, the rule or the bye-laws of the society;

(ii) all sums which ought to have been but have not been brought into account by the society;

(iii) any material impropriety or irregularity in the expenditure or in the realisation of moneys due to the society;

(iv) any money or property belonging to the society which appears to the auditor to be bad or doubtful debt; and

(v) any other matters specified by the Registrar in this behalf.

(7) The summary of audit memorandum as prepared by auditor shall be read out in general meeting. The audit memorandum together with its accompaniments shall be open to inspection by any member of the society. The Registrar may however direct that any portion of the audit memorandum which appears to him to be of objectionable nature or not justified by facts shall be expunged and the portion so expunged shall not form part of the audit memorandum.

(8) The Registrar may from time to time specify the form or forms in which the statements of accounts and information shall be prepared for audit, by the society.

(9) On completion of his statutory audit, the auditor shall award an audit classification to the society whose accounts he has audited in accordance with the instructions issued by the Registrar from time to time. The Registrar may, if thinks necessary amend the audit classification for reasons to be recorded in writing.

Requisition of the Apex or Central Society for inquiry.- An apex or Central Society duly authorised by a resolution of its committee, may submit a requisition to the Registrar to hold an inquiry under section 70 in respect of any society affiliated to it, duly setting out the grounds on which the inquiry is sought. A copy of such requisition shall be supplied to the society in respect of which the requisition is made.
Procedure and principles for the conduct of inquiry and inspection.- (1) An order authorising inquiry under section 70 or inspection under section 71 and 72 shall, among other things, contain the following:-

(a) the name of the person authorised to conduct the inquiry or inspection;

(b) the name of the society whose affairs are to be inquired into or whose books are to be inspected;

(c) the specific point or points on which the inquiry or inspection is to be made, the period within which the inquiry or inspection is to be completed and report submitted to the Registrar;

(d) cost of inquiry,

(e) any other matter relating to the inquiry or inspection.

(2) A copy of every order authorising inquiry under section 70 or inspection under section 71 shall be supplied to the apex or central society or societies to which the society in respect of which the order is issued is affiliated.

(3) If the inquiry or inspection cannot be completed within the time specified in the order referred to in sub-rule (1) the person conducting the inquiry or inspection shall submit an interim report stating the reasons for failure to complete the inquiry or inspection and the Registrar, if he is satisfied, grant such extension of time for the completion of the inquiry or inspection as he may deem necessary or he may withdraw the inquiry or inspection from the officer to whom it is entrusted and hold the inquiry or inspection himself or entrust it to such other person as he deems fit.

(4) On receipt of the order referred to in sub-rule (1) the person authorised to conduct the inquiry or inspection shall proceed to examine the relevant books of accounts and other documents in possession of the society or any of its officer, members, agents or servants and obtain such information or explanation from any such officer, members, agents or servants of the society in regard to the transactions and working of the society as he deems necessary for the conduct of such inquiry or inspection.

(5) The person authorised to conduct the inquiry or inspection shall submit his report to the Registrar, on all the points mentioned in the order referred to in sub-rule (1). The reports shall contain his findings, and the reasons therefor supported by such documentary or other evidence as recorded by him during the course of his inquiry or inspection. He shall also specify in his report the costs of the inquiry or inspection together with reasons and recommend to the Registrar the manner in which the entire cost or a part thereof may be apportioned, amongst the parties specified in section 73. The Registrar shall pass such orders thereon as may be considered just after giving a reasonable opportunity of being heard to the person or persons concerned.

(6) The costs of the inquiry or inspection apportioned by the Registrar under section 73 shall be recovered as arrears of Land Revenue. The Registrar may direct that such costs or any part thereof shall be paid in the first instance from the funds of the society or in case of inspection, from the amount deposited by the creditor under clause (b) of sub-section (1) of section 71 and then recovered and repaid to the society or the creditor, as the case may be.

Procedure for assessing surcharge under section 74.- (1) On receipt of a report referred to in section 74 or otherwise the Registrar or any other person authorised by him may make such further inquiries as he may deem necessary regarding the extent to which the person who has taken any part in the organisation or management of a society or any deceased, past or present officer or employee of the society has misapplied or retained, or become liable to accountable for, any money or property of the society, or has committed misfeasance or breach of trust in relation to the society or has made any payment contrary to the Act, these rules or bye-laws.

(2) On the completion of the further inquiries under sub-rule (1), where necessary, the Registrar or the person authorised by him shall issue a notice to the person or persons concerned furnishing him or them with particulars of the acts of misapplication, retention misfeasance or breach of trust and the extent of his or their liability involved therein and calling up on him or them to put in statements in his or their defence within fifteen days of the date of issue of the notice.

(3) On receipt of the statement referred to in sub-rule (2), the Registrar or the person authorised by him, if he is satisfied that there are reasonable grounds for holding the person or persons liable, shall frame charges.

(4) The person or persons concerned shall, after the charges are framed, be asked to put in his statement defence and to indicate the documentary or oral evidence which he would like to produce. The Registrar or the person authorised by him may permit production of other documentary or oral evidence, if considered necessary, subsequently.

(5) The Registrar or the person authorised by him shall thereafter record the evidence led by the society or the person or persons concerned and take on record the documents proved by them and shall thereafter fix a date for hearing arguments of both the parties.

(6) On the day fixed for hearing under sub-rule (5), the Registrar, or the person authorised by him, shall hear the arguments and may pass his final orders on the same day or on any date fixed by him within sixty days from the date on which the hearing was completed. On the day fixed for hearing under sub-rule (5) the Registrar or the person authorised by him shall make his final order either ordering repayment of the money or return of the property to the society together with interest at such rate as may be specified by him or to contribute such amount to the assets of the society by way of compensation in regard to misapplication, retention, misfeasance or breach of trust as may be determined or may reject the claim submitted on behalf of the society.

(7) The Registrar or the person authorised by him, may also provide in his order for the payment of the cost of the proceeding under this rule or any part of such cost as he thinks just.

(8) The Registrar or the person authorised by him shall furnish a copy of his order, under sub-rule (6) to the party concerned within ten days of the date on which he makes his final order. .

CHAPTER VIII

Settlement of Dispute

Reference of dispute.- (1) A reference of a dispute under section 75 of the Act shall be made in writing to Registrar in Form I. Wherever necessary, the Registrar may require the party referring the dispute to him to produce a certified copy of the relevant records on which the dispute is based and such other statements or records' as may be required by him; before proceeding with the consideration of such reference.

(2) Where on receipt of a reference under sub-rule (1), the Registrar, decides under clause (c) of sub-section (1) of section 77 of the Act to refer it for disposal by arbitrator, the reference shall be made to one arbitrator appointed by the Registrar.

Procedure for hearing and decision of dispute.- (1) Where any dispute is referred to any person or arbitrator under clauses (b) and (c) of sub-section (1) of section 77 for decision and is not decided by him within three months or such further period as the Registrar may allow, the Registrar may withdraw the dispute from him and decide the dispute himself or refer it again to another person or arbitrator.

(2) The Registrar, the arbitrator or other person deciding the dispute shall record in Hindi the evidence of the parties to the dispute and witnesses who attend, and upon the evidence so recorded, and upon consideration of any documentary evidence produced by the parties, a decision or award, as the case may be, shall be given in accordance with justice, equity and good conscience by such Registrar, arbitrator or other person. The decision or award given shall be reduced to writing. Such decision or award shall be pronounced either at once or on some future date of which due notice shall be given to the parties.

(3) When any party duly summoned to attend the proceeding fails to appear, the dispute may be decided ex parte.

(4) Any award made or decision given or order passed by arbitrator or other person authorised under section 77, shall be sent by him with all the papers and proceedings of the dispute to the Registrar within 15 days from the date on which it is made, given or passed.

Summons, Notices and fixing of dates, place etc. in connection with the disputes.- (1) The Registrar, the arbitrator, or any other person authorised in this behalf may issue summons or notices at least fifteen days before the date fixed for hearing of the dispute requiring:-

(i) the attendance of the parties to the dispute and of witness if any; and

(ii) the production of all books and documents relating to the matter in dispute.

(2) Summons or notices issued by Registrar or the arbitrator or the person authorised may be served through the Tehsildar or any employee of the Co-operative Department or a central society or through the Chairman or Secretary of the society or by registered post with acknowledgment due. Every person or society to whom summons or notices are sent for service shall be bound to serve them within a reasonable time.

(3) The Officers serving a summons or notice shall, in all cases in which summons or notice have been served, endorsed or annexed or cause to be endorsed on or annexed to, the original summons or notice, a return stating the time, when, and the manner in which, the summons or, as the case may be, notice was served, and the name and address of the person (if any) identifying the person served and witnessing the delivery or tender of the summons or the notice.

(4) The officer issuing the summons or notice may examine the serving officer on oath or cause him to be so examined by the Tehsildar or other officer through whom it is served and may make such further inquiry in the matter as he thinks fit; and shall either declare that the summons or, as the case may be, notice has been duly served or order it to be served in such manner as he thinks fit.

Payment of expenses of decision of disputes.- (1) Where the dispute has been referred to the Registrar or Arbitrator or to any person under section 77, the Registrar may require the party or parties referring the dispute, to deposit in advance such sum as may in his opinion, be necessary to meet the expenses including payment of fees to the Registrar or any person or the arbitrator.

(2) The Registrar or the arbitrator or any person, shall have power to order the fees and expenses for determining the disputes, to be paid by the society out of its funds or by such party or parties to the dispute, as he may think fit, according to the scale laid down by the Registrar, after looking into account, the amount deposited under sub-rule (1).

(3) The Registrar, may by general or special order specify the scale of fees and expenses to be paid to him or the arbitrator or any person.

CHAPTER IX

Winding up and dissolution of societies

Procedure to be adopted by liquidator.- Where a liquidator has been appointed under sub-section (1) of section 79, the following procedure shall be adopted, namely:-

(1) The appointment of the liquidator shall be notified by the Registrar in the Official Gazette.

(2) As soon as may be, after the order is issued under section 78 the liquidator shall take over the custody and control of all the property, effects and actionable claims and books, records, cash and other documents pertaining to the business of the society and continue to hold custody and control thereof.

(3) The liquidator shall publish by such means as he may think proper a notice requiring all claims against the society to be submitted to him within two months of the publication of such notice. All liabilities recorded in the account books of such society shall be deemed ipso facto to have been duly submitted to him under this clause.

(4) The liquidator shall, after settling the assets and liabilities of the society as they stood on the date on which the order under section 78 for its winding up was made proceed next to determine the contribution to be made by each of its members, past members, or by the estates of nominees, heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the society under clauses (b) and (e) of sub-section (2) of section 80. If, however, necessity arises, he may also frame a subsidiary order or orders regarding such contributions and such orders and the original orders shall be enforceable under section 118.

(5) The liquidator shall submit a quarterly report and other returns and statements to the Registrar in such forms as the Registrar may require showing the progress made in the liquidation of the society.

(6) The liquidator may empower any person by general or special order in writing to make collections and to grant valid receipts on his behalf.

(7) All funds in the charge of the liquidator shall be deposited in the Government treasury or in the post office saving bank or in a financing bank or with such other bank or person as may be approved by the Registrar and shall stand in the name of the liquidator.

(8) The remuneration of the liquidator fixed under sub-section (1) of section 79 shall be included in the cost of winding up which shall be payable out of the assets of the society in priority to all other claims.

(9) The liquidator shall have power to make call for meetings of members of the society from time to time.

(10) The liquidator shall keep such books and accounts as may from time to time be required by the Registrar, who may at any time cause such books and account to be audited.

(11) The liquidator may submit an application to the Registrar, for revival of the society if in his own opinion such revival has a reasonable chance of success. The Registrar may pass orders as he may deem proper under sub-section (3) of section 78.

(12) At the conclusion of the winding up a general meeting of the society shall be called at which the liquidator or any person authorised by him by general or special order in writing in this behalf shall summarise the result of his proceedings, and shall take a vote as to the disposal of any surplus funds in the manner prescribed in sub-rule (2) of rule 50.

(13) If any liability cannot be discharged by the liquidator owing to the whereabouts of claimants not being known or for any other cause, the amount covered by such undischarged liability may be deposited in a financing bank and shall be available for meeting the claims of the person or persons Concerned. On the expiry of three years from the date of deposits of such amount, the Registrar may, on his own motion or on the application of the financing bank, pass an order directing that the said amount shall be utilised as provided in sub-rule (2) of rule 65:

Provided that no such order shall be passed by the Registrar unless he has published a notice of his intention to pass such order by beat of drum in the village or villages comprised within the area of operations of the society or by publication in the official Gazette or by any other means which he may consider suitable and a period of thirty days has expired from the date of such publication.

(14) A liquidator may at any time, be removed by the Registrar and he shall on such removal be bound to hand over all the property and documents relating to the society ordered to be wound up to such person as the Registrar may direct.

(15) As soon as may be after the affairs of the society for which a liquidator has been appointed under section 79 have been wound up and an order cancelling the registration is made under section 83, the liquidator shall forward ail the books and records of the wound up society and all his own papers and proceedings, by railway parcel to the Registrar together with an account of his expenses, showing how the balance has been disposed of, and attaching the receipt of the person to whom it was handed over.

(16) All the books and records of a society whose registration has been cancelled and the proceedings of liquidation may be destroyed by the Registrar after the expiry of two years from the date of the order cancelling the registration of the society.

Interest on amounts due from a society under liquidation.- The creditor of a society, which is being wound up, may apply to the liquidator, for payment of interest on any debt due from the society upto the date of the Registrar's order for winding up. The rate at which interest shall be paid, shall be in the case of the Rajasthan State Co-operative Bank or a Financing Bank permitted by the Registrar to finance societies, the contract rate and in any other case the rate which may be fixed by the Registrar which shall not exceed the contract rate:

Provided, that, if any surplus assets remain after all the liabilities, including liabilities on shares, have been paid off, further interest on such debts at a rate to be fixed by the Registrar but not exceeding the contract rate may be allowed to the creditors from the date mentioned above upto the date of the repayment of the principal.

CHAPTER X

Land Development Banks

Procedure for submission and consideration of applications for loans from Land Development Banks.- (1) All applications for loans from a Land Development Bank shall be made in the form prescribed by the State Land Development Bank with the approval of the Registrar. The form shall among other things contain a list of documents which are required to be submitted for purposes of dealing with the application.

(2) Every Land Development Bank shall keep sufficient stock of printed copies of the forms of loan applications and shall supply them to the intending borrower on payment of such fee as may be specified, from time to time, by the State Land Development Bank.

(3) Every Land Development Bank shall specify, from time to time the name, designation and address of the officer (hereinafter in this chapter referred to as "the Receiving Officer"), who shall receive all loan applications from the intending borrowers.

(4) The application together with copies of necessary documents and the amount of all fees specified by the State Land Development Bank with the approval of the Registrar and deposit equivalent to the value of one share of the Bank, shall be submitted by the applicant to the Receiving Officer.

(5) On receipt of an application for loan, the Receiving Officer shall put his initials on the application and mention his designation and the date of receipt of the application.

(6) After an application for loan has been received, the Receiving Officer shall verify whether it contains all the necessary particulars and is accompanied by the necessary documents. If any details are lacking, he shall get the application completed by the applicant.

(7) Each application shall be entered in the chronological order in the register of applications for loans from the Land Development Bank to be maintained by the Receiving Officer and shall be dealt with in the same order.

(8) Immediately after the application is entered in the register of applications for loans from the Land Development Bank, the Receiving Officer shall forward it to the Assistant Registrar/Additional Assistant Registrar of Co-operative Societies within whose jurisdiction the land in respect of.which the application is made is situate, being the person prescribed for the purposes of sub-section (1) of section 91 of the Act, hereinafter in this Chapter referred to as "the Public Enquiry Officer". The Public Enquiry Officer shall give at least eight days-public notice in Form "J" calling upon all persons interested to present their objections to the loan, if any. The notice shall also be given by beat of drum and shall be affixed at the Chopal of the village or villages where the applicant resides and in the limits of which the land or lands proposed to be improved or offered as security for the loan is or are situated. A copy of the notice shall be exhibited in the head office and relevant branch office, if any, of the Land Development Bank concerned and in the office, if any of the person giving the notice.

If any person interested fails to appear as stated as required by the aforesaid notice, the questions at issue will be decided in their absence and such persons will have no claim whatsoever against the property for which the loan applied for will be sanctioned till such time as the loan together with interest thereon or any other dues arising out of the loan are paid in full by the loanee.

(9) The Public Enquiry Officer shall consider every objection submitted under sub-section (1) of section 91 in the manner laid down in that section.

(10) The Public Enquiry Officer shall then forward the applications within two days of their disposal to the Land Development Bank concerned. The Land Development Bank may appoint an enquiry officer (hereinafter in this Chapter referred to as "the Enquiry Officer") to enquire into the applications. The Enquiry Officer shall make inquiry by actually visiting the land in which the improvement is proposed to be effected and the lands and other property offered as security. He shall conduct his enquiry in accordance with the form to be prescribed by the State Land Development Bank, with the approval of the Registrar.

In case the Public Enquiry Officer is unable to forward the application within two days, he shall make a report to the Registrar, stating thereunder the reasons therefor and he shall, thereafter act in accordance with such directions as may be issued to him by the Registrar.

(11) The Enquiry Officer may make such other enquiries as may be necessary and shall value the lands according to such formula as may be laid down by the State Land Development Bank, with the approval of the Registrar, from time to time, estimate the repaying capacity of the applicant and examine the feasibility and the utility of the proposed improvement. He shall then submit his report stating what amount of loan may be granted to the applicant against what security and for what purpose and the period within which it may be recovered from him. The Enquiry Officer shall complete his enquiry within fifteen days of the date of the receipt of the application by him.

If the Enquiry Officer is unable to complete his enquiry within fifteen days, he shall make a report to the Registrar stating therein the reasons therefor and he shall thereafter act in accordance with such directions as may be issued to him by the Registrar.

(12) After completion of the enquiry, the application together with his report shall be submitted by the Enquiry Officer to the Land Development Bank together with the following certificates:-

(a) Certificate regarding outstanding Government dues.

(b) Any other relevant certificate.

(13) On receipt of the report of the Enquiry Officer under sub-rule (12), the Land Development Bank shall satisfy itself that the inquiry has been properly conducted. If there are any deficiencies, the Bank shall get them completed immediately.

(14) The Land Development Bank may then undertake such further scrutiny as may be necessary and either pass final orders to the extent as may be empowered by the State Land Development Bank or recommend to the State Land Development Bank within 30 days. Decision shall be communicated to the applicant within 7 days thereafter. The State Land Development Bank may also undertake such further scrutiny as may be necessary and pass final orders within 30 days of the receipt of the application. In case the final orders are not passed within 30 days, the Land Development Bank or the State Land Development Bank as the case may be, make a report to the Registrar stating therein the reasons therefor and shall thereafter act in accordance with such directions as may be issued to it by the Registrar.

(15) All the applications received by the Land Development Bank shall be disposed of by the Bank within a maximum period of four months. If the Bank is unable to dispose of an application for loan within the period of four months , it shall make a report to the Registrar stating therein the reasons therefor and the Bank shall thereafter act in accordance with such directions as may be issued to it by the Registrar.

(16) In the case of rejection of applications for loans, the reasons therefor shall be communicated by the Bank to the applicant. When the loan has been sanctioned, the Bank shall lay down the terms and conditions regarding grant of the loan, regarding payment of instalments, submission of report on the progress of improvement of land and release of subsequent instalments. The applicant shall be asked by the Land Development Bank to remain present at the head office or branch office of the bank on such date to be fixed, first for execution of the mortgage deed and the next date for receiving loan or the first instalment thereof. The later date shall not ordinarily be later than 15 days from the date of communication of sanction-of loan to applicant.

(17) The applicant, while receiving the amount of the loan or the first instalment of the loan, shall purchase shares of the bank to such extent as may be required under the bye-laws of the Bank. The Land Development Bank shall issue a receipt to the applicant giving full particulars of the amounts paid by him from time to time.

(18) Failure to comply with any time-limits specified in this rule shall hot in any manner affect the validity of the sanction of the loans by Land Development Bank or by the State Land Development Bank.

Registration of copies of instruments under section 95.- Copies of instruments referred to in section 95, duly certified by the Manager/Secretary of the Land Development Bank, shall be sent by the Land Development bank to the Registering Officer concerned within a period of three months from the date of execution of the instruments, by registered post or by hand delivery.
Authority to Land Development Bank to exercise power under section 106.- The authorisation for the purposes of clause (a) of the proviso to sub-section (1) of section 106 shall be granted to the Land Development Bank by the Registrar after hearing the objections, if any of the mortgagor or mortgagors concerned.
Appointment of Receiver and his powers under section 106.- (1) The State Land Development Bank may. on the application of a Land Development Bank and under circumstances in which the power of sale conferred by section 106 can be exercised appoint any person in writing to be a Receiver of the produce and income of the mortgaged property or any part thereof and such Receiver shall be entitled either to take possession of the property or collect its produce and income, as the case may be, to retain out of any money realised by him. his expenses of management including his remuneration, if any. as fixed by the State Land Development Bank and to apply the balance in accordance with the provisions of sub- section (8) of section 69-A of the Transfer of Property Act, 1882.

(2) A Receiver appointed under sub-rule (1) may, for sufficient cause and on application made by' the mortgagor, be removed by the State Land Development Bank.

(3) A vacancy in the office of the Receiver may be filled up by the State Land Development Bank.

(4) Nothing in this rule shall empower the State Land Development bank to appoint a Receiver where the mortgaged property is already in the possession of a Receiver appointed by civil court.

Appointment, qualifications and powers and functions of a Sale Officer under section 106.- A Land Development Bank may, from time to time, by a resolution of its committee, appoint any of its officers or any other person as Sale Officer, with the approval of the Registrar, for the purpose of effecting sale of mortgaged property under section 106. Such Sale Officer shall exercise the same powers and functions as are conferred upon a Recovery Officer and Sale Officer under these Rules.
Procedure for distraint and sale of the produce of the mortgaged land and sale of mortgaged property - The procedure laid down in rule 92 shall mutatis mutandisapply for the distrains and sale of the produce of the mortgaged land and the sale of mortgaged property under section 105 and 106:

Provided that, in the case of sale of mortgaged property, the notice of demand for the payment of the mortgaged money or part thereof, as the case may be. as also the notice for the sale of the mortgaged property in the event of the payment not being made within the time allowed, shall be served upon the mortgagor or each of the mortgagors and also upon the following persons, namely:-

(i) any person who has any interest in or charge upon, the property mortgaged, or in or upon the right to redeem the same, so far as is known to the Bank,

(ii) any surety for the payment of the mortgaged debt or any part thereof, and

(iii) any creditor of the mortgagor who has in a suit for administration of his estate obtained decree for sale of mortgaged property.

The time allowed for payment of the mortgage money or part thereof in the demand notice referred to above, shall be not less than three months after the service of the notice.

Circumstances under which the State Land Development Bank or the Trustee may take action under section 106(2).- (1) If a Land Development Bank fails to take action against a defaulter under section 102 or 105 or sub-section (1) of section 106, the State Land Development Bank may call upon the former to take necessary action within a period of seven days and report compliance. If no report of compliance is received, the State Land Development bank may itself take necessary action as indicated in the aforesaid section and subsection.

(2) Where necessary action is not taken against the defaulter by the Land Development Bank or by the State Land Development Bank, the Trustee may call upon them to take necessary action within seven days and report compliance. If no such report of compliance is received, the Trustee may himself take the necessary' action.

Submission of report for confirmation of sale under section 107.- (1) When the sale of the mortgaged property has been effected by a Land Development Bank under section 106 and the purchase amount has been received from the purchaser, the Bank shall submit a report of the sale immediately to the State Land Development Bank and the Registrar as required by sub-section (1) of section 107.

(2) When the sale of the mortgaged property has been effected by the State Land Development Bank or the Trustee under section 106 and the purchase amount has been received from the purchaser, the State Land Development Bank or the Trustee, as the case may be, shall submit a report of sale immediately to the Registrar as required under sub-section (2) of section 107.

(3) The report referred to in sub-rules (1) and (2) shall contain amongst other details, the following specific particulars:-

(a) brief account of the circumstances which rendered the sale necessary;

(b) full details showing how the provisions of clauses (a), (b)(i) to (iv) and (c) of the proviso to sub-section (1) of section 106 have been complied with;

(c) full details showing how the procedure laid down in Rule 92 for holding the sale of immovable property has been followed;

(d) name of the Sale Officer;

(e) place of sale;

(f) date of sale;

(g) description of property sold;

(h) name of purchaser and his address;

(i) value realised;

(j) cost of sale; and

(k) date of receipt of purchase money from the purchaser.

(4) The State Land Development Bank or the Registrar may call for any clarification deemed necessary' from the Land Development Bank and satisfy itself or himself that the sale has properly been conducted and the Land Development Bank shall furnish the same forthwith. Similarly, the Registrar may call for any clarification from the State Land Development Bank or the Trustee for the same purpose and such clarification shall be furnished forthwith by the State Land Development Bank or the Trustee as the case may be.

Certificate of purchase.- The certificate to be granted by a Development Bank under sub-section (1) of section 109 shall be in Form "K".
Sale of immovable property purchased by a Land Development Bank.- (1) The Land Development Bank or the State Land Development Bank which has purchased any immovable property sold under Chapter XI of the Act shall, unless otherwise directed by the Trustee, use its best endeavour to sell the property as early as possible to the best advantage of the Bank. The sale shall be effected by public auction within a period of six months from the date of purchase or within such further period as may be permitted by the Trustee.

(2) The date and the place of such public auction shall previously be notified not less than thirty days by-

(a) advertising the sale of property with full details in one or more local newspapers,

(b) proclamation of sale by beat of drum in the village where the property is situated,

(i) the village Chopal, Panchayat and a conspicuous place of the village,

(ii) the office of the Tehsildar concerned,

(iii) the office of the Land Development Bank, and

(iv) the principal office of the Assistant Registrar in the District.

The sale shall be subject to confirmation by the Registrar.

Certain provisions of Rule 92 to apply to sale of immovable property under Chapter XI of the Act.- (1) The provisions of clauses (c), (f), (g), (h). (i), (j) and (k) of sub-rule (11) and of sub-rules (12), (13) and (14) of Rule 92 shall mutatis mutandis apply to the sale of immovable property under Chapter XI of the Act.

(2) The expenses incidental to such sale or attempted sale shall be calculated in accordance with the scale laid down in that behalf by the Registrar, from time to time.

CHAPTER XI

Execution of awards, decrees, orders and decisions

Procedure in execution of awards etc.- (1) Any decree-holder or any person specially authorised by the Registrar in this behalf hereinafter referred to as applicant requiring the provisions of clause (c) of section 118 to be applied shall apply to the Recovery Officer within whose jurisdiction the defaulter resides or the property of the defaulter is situated.

(2) Every such application shall be made in the form specified by the Registrar and shall be signed by the applicant and shall be accompanied by deposit, if required, at such scales as may be specified by general or special order by the Registrar. The applicant may indicate whether he wishes to proceed against the immovable property mortgaged to the decree holder or other immovable property or to secure the attachment of movable property.

(3) On receipt of such application, or when the Registrar is proceeding under Rule 96 the Recovery Officer shall verify the correctness and genuineness of the particulars set forth in the application with the records, if any in the office of the Registrar and prepare a demand notice in writing in duplicate in the form specified by the Registrar setting forth the name of the defaulter and the amount due and forward it to the Sale Officer.

(4) Unless the applicant has expressed a desire that proceedings should be taken in a particular order as laid down in sub-rule (2), execution shall ordinarily be taken in the following manner:-

(i) movable property of the defaulter shall be first proceeded against, but this shall not preclude the immovable property being proceeded against simultaneously in case of necessity,

(ii) if there is no movable property, or if the sale proceeds of the movable property, or properties attached and sold are insufficient to meet in full the demand of the applicant, the immovable property mortgaged to the applicant, or other immovable property belonging to the defaulter may be proceeded against.

(5) In the seizure and sale of movable property, the following shall be observed:-

(a) The Sale Officer shall, after giving previous notice to the applicant, proceed to the village, town or city as the case may be where the defaulter resides or the property to be distrained is situated and serve a demand notice upon the defaulter if he is present. If the amount due together with the expenses be not at once paid, the Sale Officer shall make the distress and shall immediately deliver to the defaulter a list of inventory of the property distrained and an intimation of place and day and hour at which the distrained property will be brought to sale if the amounts due are not previously discharged. If defaulter is absent, the Sale Officer shall serve the demand notice on some adult male member of his family, or on his authorised agent, or when such service cannot be effected, shall affix a copy of the demand notice on some conspicuous part of his residence. He shall then proceed to make the distress and shall fix the list of the property attached on the usual place of residence of the defaulter endorsing thereon the place where the property may be lodged or kept and an intimation of the place, day and hour of sale.

(b) After the distress is made, the Sale Officer may arrange for the custody of the property attached with the applicant or otherwise. If the Sale Officer requires the applicant to undertake the custody of the property, he shall be bound to do so and any loss incurred owing to his negligence shall be made good by the applicant. If the attached property is live-stock, the applicant shall be responsible for providing the necessary food therefor. The Sale Officer may, at the instance of the defaulter or of any person claiming an interest in such property, leave it in the village, city or town as the case may be or place where it was attached, in the charge of such defaulter or such person, if he enters into a bond in the form specified by the Registrar with one or more sufficient securities for the production of the property when called for.

(d) The distress levied shall not be excessive, that is to say, the property distrained shall as nearly as possible be proportionate to the sum due by the defaulter together with interest and all expenses incidental to the distraint, detention and sale.

(e) If crops or ungathered products of the land belonging to a defaulter are attached, the Sale Officer may cause them to be sold when fit for reaping or gathering, or at his option may cause them to be reaped or gathered in the due season and stored in proper place until sold. In the latter case, the expense of reaping and gathering and storing such crops or products shall be defrayed by the owner upon his redeeming the property or from the proceeds of the sale in the event of its being sold.

(f) The Sale Officer shall not work the bullocks or cattle, or make use of the goods or effect distrained, and he shall provide the necessary' food for the cattle or live-stock, the expense attending which shall be defrayed by the owner upon his redeeming the property or from the proceeds of the sale in the event of its being sold.

(g) It shall be lawful for the Sale Officer to force open any stable cow house, granary, godown, out-house or other building and he may also enter any dwelling house, the outer door of which may be open and may break open the door of any room in such dwelling house for the purpose of attaching property belonging to a defaulter and lodged therein, provided always that it shall not be lawful for the Sale Officer to break open or enter apartment in such dwelling house appropriated for the zenana or residence of women except as hereinafter provided.

(h) Where the Sale Officer may have reason to believe that the property of a defaulter is lodged within a dwelling house the outdoor of which may be shut or within any apartments appropriated to women which by custom or usage are considered private, the Sale Officer shall report the fact to the Officer-in-charge of nearest police station. On such report the officer-in-charge of the said station shall send a police officer to the spot in the presence of whom the Sale Officer may force open the outer door of such dwelling house or break open the door of any room within the house except room appropriated by women. The Sale Officer may also, in the presence of a police officer, after due notice given for the removal of women within a Zenana and, after furnishing means for their removal in a suitable manner if they be women of rank, who, according to the customs or usage cannot appear in public, enter the zenana apartments for the purpose of distraining the defaulter's property, if any, deposited therein, but such property, if found, shall be immediately removed from such apartments after which they shall be left free to the former occupants.

(i) The Sale Officer shall on the day previous to, and on the day of, sale cause proclamation of time and place of the intended sale to be made by beat of drum in the village, city or town as the case may be, in which the defaulter resides and in such other place or places as the Sale Officer may consider necessary to give due publicity to the sale. No sale shall take place until after the expiration of the period of 15 days from the date on which the sale notice has been served or affixed in the manner laid down in clause (a):

Provided that, where the property seized is subject to speedy and natural decay, or where the expenses of keeping it in custody is likely to exceed its value, the Sale Officer may sell it, at any time, before the expiry of the said period of 15 days unless the amount due is sooner paid.

(j) At the appointed time, the property shall be put in one or more lots, as the Sale Officer may consider advisable, and shall be disposed of to the highest bidder:

Provided that, it shall be open to the Sale Officer to decline to accept the highest bid where the price offered appears to be unduly low or for other adequate reasons. Where the property is sold for more than the amount due, the excess amount, after deducting the interest and the expenses of process and the other charges, shall be paid to the defaulter:

Provided further, that the Recovery Officer or the Sale Officer may, in his discretion, adjourn the sale to a specified day and hour recording his reasons for such adjournment. Where a sale is so adjourned for longer period than 7 days, a fresh proclamation under clause (i) shall be made unless the defaulter consents to waive it.

(k) The property sold shall be paid for in cash at the time of sale, or as soon thereafter as the Sale Officer holding the sale shall appoint, and the purchaser shall not be permitted to carry away any part of the property until he has paid for it in full. Where the purchaser fails in the payment of purchase money, the property shall be re-sold.

(l) Where it is provided to the satisfaction of any civil court of competent jurisdiction that any property which has been distrained under these rules has been forcibly or clandestinely removed by any person, the court may order forthwith such property to be restored to the Sale Officer.

(m) Where prior to the day fixed for sale, the defaulter or any person acting on his behalf or any person claiming an interest in the property attached, pays the full amount due including interest, batta and other costs incurred in attaching the property, the Sale Officer shall cancel the order of attachment and release the property forthwith.

(n) The movable properties exempted from attachment by the proviso to section 60 of the Code of Civil Procedure, 1908 [Central Act, V of 1908] shall not be liable to attachment or sale under these rules

(6) Where the movable property to be attached is the salary or allowance or wages of a Public Officer or a Railway servant or a servant of a local authority or a firm or a company, Co-operative Society, the Recovery Officer may, on receiving a report from the Sale Officer, order that the amount shall subject to the provisions of section 60 of the Code of Civil Procedure, 1908 (Central Act V of 1908), be with-held from such salary or allowance or wages either in one payment or by monthly instalments as the Recovery Officer may direct and upon receipt of the orders, the officer or other person whose duty it is to disburse such salary or allowance or wages shall with-hold and remit to Sale Officer, the amount due under the order or the monthly instalments, as the case may be.

(7) (i) Where the property to be attached consists of the share or interest of the defaulter in movable property belonging to him and another as co-owners, the attachment shall be made by a notice to the defaulter, prohibiting him from transferring the share or interest or charging it in any way.

(ii) Where the property to be attached is a negotiable instrument not deposited in a court, nor in the custody of a public officer, the attachment shall be made by actual seizure and the instrument shall be brought to the office of the Recovery officer ordering the attachment and be held subject to his further orders.

(iii) Where the property to be attached is in the custody of any court or public officer, the attachment may be made by a notice to such court or officer requesting that such property and any interest: or dividend becoming payable thereon may be held subject to the further demands of Recovery Officer issuing the notice:

Provided that, where such property is in the custody of a court or Recovery Officer of another district, any question of title or priority arising between the applicant and any other person not being the defaulter, claiming to be interested in such property by virtue of any assignment, attachment or otherwise shall be left to be determined by such court or Recovery Officer.

(8) (i) Where the property to be attached is a decree either for the payment of money or for sale in enforcement of a mortgage or charge, the attachment shall be made, if the decree sought to be attached was passed by the Registrar or by any person to whom a dispute was transferred by the Registrar under section 77 of the Act or by an arbitrator or any person, then by the order of the Registrar.

(ii) Where the Registrar makes an order under clause (i), he on the application of the applicant who has attached the decree, proceed to execute the attached decree and apply the net proceeds in satisfaction of the decree sought to be executed.

(iii) The holder of a decree sought to be executed by the attachment of another decree of the nature specified in clause (i) shall be deemed to be the representative of the holder of the attached decree and to be entitled to execute such attached decree in any manner for the holder thereof.

(iv) Where the property to be attached in execution of a decree is a decree other than a decree of the nature referred to in clause (i), the attachment shall be made by the issue of a notice by the Recovery Officer to the holder of such decree, prohibiting him from ^transferring or charging the same in any way.

(v) The holder of a decree attached under this sub-rule shall give the Recovery Officer executing the decree such information and aid as may reasonably be required.

(vi) On the application of the holder of a decree sought to be executed by the attachment of another decree, the Recovery Officer making an order of attachment under this sub-rule shall give notice of such order to the judgment debtor bound by the decree attached; and no payment or adjustment of the attached decree made by the judgment debtor in contravention of such order after receipt of notice thereof, either through the Recovery Officer or otherwise, shall be recognised so long as the attachment remains in force.

(9) Where the movable property to be attached is-

(a) a debt due to the defaulter in question,

(b) a share in the capital of a corporation or a deposit invested therein, or

(c) other movable property not in the possession of the defaulter, except property deposited in, or in the custody of, any civil court, tire attachment shall be made by a written order signed by the Recovery Officer prohibiting,-

(i) in the case of a debt, the creditor from recovering the debt and the debtor from making payment thereof;

(ii) in the case of a share of deposit, the person in whose name the share or the deposit may be standing, from transferring the share or deposit or receiving any dividend or interest thereon; and

(iii) in the case of any other movable property, the person in possession of it from giving it over to the defaulter.

A copy of such order shall be sent, in the case of the debt, to the debtor, in the case of the share or deposit, to the proper officer of the corporation and in the case of any other movable property to the person in possession of such property. As soon as the debt referred to in clause (a) or the deposit referred to in clause (b) matures, the Recovery' Officer may direct the person concerned to pay the amount to him. Where the share is not with drawable, the Recovery Officer shall arrange for its sale through a broker where the share is with drawable, its value shall be paid to the Recovery Officer or the party referred to in clause (c). The person concerned shall place it in the hands of the Recovery Officer as it becomes deliverable to the debtor.

(10) Immovable property shall not be sold in execution of a decree unless such property has been previously attached; provided that where the decree has been obtained on the basis of a mortgage of such property it shall not be necessary to attach it.

(11) In the attachment and sale or sale without attachment of immovable property, the following rules shall be observed:

(a) The application presented under sub-rule (2) shall contain a description of the immovable property to be proceeded against, sufficient for its identification and in case such property can be identified by boundaries or numbers in a record of settlement or survey, the specification of such boundaries or number and the specification of the defaulters' share or interest in such property to the best of the belief of the applicant and so.far as he has been able to ascertain it.

(b) The demand notice issued by the Recovery Officer under sub-rule (3) shall contain the name of the defaulter, the amount due, including the expenses, if any, and the batta to be paid to the person who shall serve the demand notice, the time allowed for payment and in case of non-payment, the particulars of the properties to be attached and sold or to be sold without attachment, as the case may be. After receiving the demand notice, the Sale Officer shall serve or cause to be served a copy of the demand notice upon the defaulter or upon some adult male member of his family at his usual place of residence, or upon his authorised agent or, if such personal service is not possible, shall affix a copy thereof on some conspicuous part of the immovable property about to be attached and sold or sold without attachment, as the case may be:

Provided that, where the Recovery Officer is satisfied that a defaulter with intent to defeat or delay the execution proceeding against him is about to dispose of the whole or any part of his property, the demand notice issued by the Recovery Officer under sub-rule (3) shall not allow any time to the defaulter for payment of the amount due by him and the property of the defaulter shall be attached forthwith.

(c) If the defaulter fails to pay the amount specified in the demand notice within the time allowed, the Sale Officer shall proceed to attach and sell or sell without attachment, as the case may be, the immovable property noted in the application for execution in the following manner.

(d) Where attachment is required before sale, the Sale Officer shall if possible, cause a notice of attachment to be served on the defaulter personally. Where personal service is not possible, the notice shall be affixed in some conspicuous part of the defaulters last known residence, if any. The fact of attachment shall also be proclaimed by beat of drum or other customary mode at some place on or adjacent to, such property and at such other place or places as the Recovery Officer may consider necessary' to give due publicity to the sale. The attachment notice shall set forth that unless the amount due with interest and expenses be paid within the date therein mentioned, the property will be brought to sale. A copy shall be sent to the applicant. Where the Sale Officer so directs, the attachment shall also be notified by public proclamation in the Official Gazette.

(e) Proclamation of sale shall be published by affixing a notice in the office of the Recovery Officer and the Tehsil office at least thirty days before the date fixed for the sale and also by beat of drum in the village, city or town as the case may be (on two consecutive days previous to the date of sale and on the day of sale prior to the commencement of the sale). Such Proclamation shall, where attachment is required before sale, be made after the attachment has been effected. Notice shall also be given to the applicant and the defaulter. The proclamation shall state the time and place of sale specify as fairly and accurately as possible:-

(i) the property to be sold,

(ii) any encumbrance to which the property is liable,

(iii) the amount for the Recovery of which sale is ordered, and

(iv) every other matter which the Sale Officer considers material for a purchaser to know in order to judge the nature and value of the property.

(f) When any immovable property is sold under these rules, the sale shall be subject to the prior encumbrances on the property, if any. The applicant shall, when the amount for the realisation of which the sale is held exceeds Rs. 100, furnish to the Sale Officer within such time as may be fixed by him or by the Recovery Officer, an encumbrance certificate from the Registration Department for the period of not less than twelve years prior to the date of attachment of the property sought to be sold, or in cases falling under the proviso to sub-rule (10), prior to the date of the application for execution. The time for production of the encumbrance certificate may be extended at the direction of the Sale Officer or the Recovery Officer, as the case may be. The sale shall be by public auction to the highest bidder:

Provided that, it shall be open to Sale Officer to decline to accept the highest bid where the price offer appears be unduly low or for other adequate reasons:

Provided further that, the Recovery Officer or the Sale Officer may, in his discretion, adjourn the sale to a specified day and hour, recording his reason for such adjournment. Where a sale is so adjourned for a longer period than 7 days, a fresh proclamation under clause (e) shall be made, unless the defaulter consents to waive it.

The sale shall be held after the expiry of not less than thirty days calculated from the date on which notice of the proclamation was affixed in the office of the Recovery Officer. The time and place of sale shall be fixed by the Recovery Officer and the place of sale shall be the village, city or town as the case may be, where the property to be sold is situated or such adjoining prominent place of public resort as may be fixed by the Recovery Officer:

Provided that, in cases where an encumbrance certificate is not obtainable' owing to the destruction of the connected records, and affidavit from the village Patwari in regard to the encumbrances known to him supported by a certificate cannot be granted owing to the destruction of the connected records, shall be accepted in place of an encumbrance certificate.

(g) A sum of money equal to 15 per cent of the price of the immovable property shall be deposited by the purchaser in the hands of the Sale Officer at the time of the purchase, and in default of such deposit the property shall forthwith be resold:

Provided that, where the applicant is the purchaser and is entitled to set off the purchase money under clause (k) the Sale Officer shall dispense with the requirement of this clause.

(h) The remainder of the purchase money and the amount required for the general stamp for the sale certificate shall be paid within fifteen days from the date of sale:

Provided that, the time for payment of the cost of the stamp may, for good and sufficient reasons, be extended at the discretion of the Recovery Officer up to thirty days from the date of sale:

Provided further that, in calculating the amounts to be paid under this clause, the purchaser shall have the advantage of any set off to which he may be entitled under clause (k).

(i) In default of payment within the period mentioned in the last preceding clause, the deposit may, if the Recovery Officer thinks fit, after defraying the expenses of the sale, be forfeited to the Government and the defaulting purchaser shall forfeit all claims to the property or to any part of the sum for which it may subsequently be sold.

(j) Every resale of immovable property in default of payment of the amounts mentioned in clause (h) within the period allowed for such payment, shall be made after the issue of a fresh proclamation in the manner and for the period therein before prescribed for the sale.

(k) Where an applicant purchases the property, the purchase money and the amount due on the decree shall be set off against one another, and the sale Officer shall enter up satisfaction of the decree in whole or in part accordingly.

(12) Where prior to the date fixed for a sale, the defaulter or any person acting on his behalf or any person claiming an interest in the property sought to be sold tenders payment of the full amount due together with interest, batta and other expenses incurred in bringing the property to sale, including the expenses of attachment, if any, the Sale Officer shall forth with release the property after cancelling, where the property has been attached, the order of attachment.

(13) (i) Where immovable property has been sold by the Sale Officer, any person either owing such property or holding an interest therein by virtue of a title acquired before such sale may apply to have the sale set aside on his depositing with the Recovery Officer.-

(a) for payment to the purchaser a sum equal to 5 per cent of the purchase money, and

(b) for payment to the applicant, the amount of arrears specified in the proclamation of sale as that for the recovery of which the sale was ordered together with interest thereon and the expenses of attachment, if any, and sale and other costs due in respect of such amount, less amount which may since the date of such proclamation have been received by the applicant.

(ii) If such deposit and application are made within thirty days from the date of sale, the Recovery Officer shall pass an order setting aside the sale and shall repay to the purchaser, the purchase money so far as it has been deposited, together with the 5 per cent deposited by the applicant:

Provided that, if more persons than one have made deposit and application under this sub-rule, the application of the first depositor to the officer authorised to set aside the sale, shall be accepted.

(iii) If a person applies under sub-rule (14) to set aside the sale of immovable property, he shall not be entitled to make an application under this sub-rule.

(14) (i) At any time within thirty days from the date of the sale of immovable property, the applicant or any person entitled to share in a rateable distribution of the assets or whose interests are affected by the sale, may apply to the Recovery Officer to set aside the sale on the ground of a material irregularly or mistake or fraud in publishing or conducting it:

Provided that, no sale shall be set aside on the ground of irregularity or fraud unless the Recovery Officer is satisfied that the applicant has sustained substantial inquiry by reason of such irregularity, mistake or fraud.

(ii) If the application be allowed, the Recovery Officer shall set aside the sale and may direct a fresh one.

(iii) On the expiration of thirty days from the date of sale if no application to have the sale set aside is made or if such application has been made and rejected, the Recovery Officer shall make an order confirming the sale:

Provided that, if he shall have reason to believe that the sale ought to be set aside notwithstanding that no such application has been made or on grounds other than those alleged in any application which has been made and rejected, he may, after recording his reasons in writing set aside the sale.

(iv) Whenever the sale of any immovable property is not so confirmed or is set aside, the deposit or the purchase money, as the case may be, shall be returned to the purchaser.

(v) After the confirmation of any such sale, the Recovery Officer shall grant a certificate of sale bearing his seal and signature to the purchaser, and such certificate shall state the property sold and the names of the purchaser, and it shall be conclusive evidence of the fact of the purchase in all courts and tribunals, where it may be necessary to prove it and no proof of the sale or signature of the Recovery Officer shall be necessary unless the authority before whom it is produced shall have reason to doubt its genuineness.

(vi) An order made under this sub-rule shall be final, and shall not be liable to be questioned in any suit or other legal proceedings.

(15) Where any lawful purchaser of immovable property is resisted and prevented by any person other than a person (not being the defaulter) claiming in good faith to be in possession of the property on his own account from obtaining possession of the immovable property purchased, any court of competent jurisdiction on application, and production of the certificate of sale provided for by sub-rule (14) shall cause the proper process to be issued for the purpose of putting such purchaser in possession in the same manner as if the immovable property purchaser had been decreed to the purchaser by a decision of the court.

(16) It shall be lawful for the Sale Officer to sell the whole or any portion of the immovable property of a defaulter in discharge of money due:

Provided that, so far as may be practicable, no larger section or portion of immovable property shall be sold than may be sufficient to discharge the amount due with interest and expenses of attachment, if any and sale.

(17) Persons employed in serving notice or in other process under these rules shall be entitled to batta at such rates as may, from time to time, be fixed by the Recovery Officer.

(18) Where the cost and charges incurred in connection with attachment and sale of movable property or the attachment and sale or sale without. attachment of immovable property under this rule, exceeds the amount of the cost deposited by the applicant, such excess shall be deducted from the sale proceeds of the property sold or the moneys paid by the defaulter, as the case may be, and the balance shall be made available to the applicant.

(19) Every person making a payment towards any money due for the recovery of which application has been made under this rule shall be entitled to a receipt for the amount signed by the Sale Officer or other officer empowered by the Recovery Officer in that behalf, such receipt shall state the name of the person making the payment and the subject matter in respect of which the payment is made.

(20) (a) Where any claim is preferred to, or any objection is made to the attachment of, any property attached under this rule on the ground that such property is not liable to such attachment, the Sale Officer shall investigate the claim or objection and dispose it of on merits:

Provided that no such investigation shall be made when the Sale Officer considers that the claim or objection is frivolous.

(b) where the property to which the claim or objection relates has been advertised for sale, the Sale Officer may postpone the sale pending the investigation of the claim or objection.

(c) Where a claim or an objection is preferred to the party against whom an order is made may institute a suit to establish the right which he claims to be the property in dispute, but, subject to the result of such suit, if any, the order shall be final.

(21) (i) any deficiency of price which may arise on a re-sale held under clause (j) of sub-rule (11) by reason of the purchaser's default, and all expenses attending such re-sale shall be certified by the Sale Officer to the Recovery Officer and shall, at the instance of either the applicant or the defaulter, be recoverable from the defaulting purchaser under the provision of this rule. The costs, if any, incidental to such recovery shall also be borne by the defaulting purchaser.

(ii) Where the property may on the second sale, sell for a bigger price than at the first sale, the defaulting purchaser at the first sale, shall have no claim to the difference or increase.

(22) Where any property has been attached in execution of decree, but by reason of the applicant's default the Recovery Officer is unable to proceed further with the application for execution, he shall either dismiss the application or for any sufficient reason adjourn the proceedings to a future date. Upon the dismissal of such application, the attachment shall cease.

(23) (a) Where the Sale Officer attached or has attached under these rules, any property not in the custody of any court, which is already under attachment made in execution of a decree of any court, such court shall receive and realise such property and shall determine claims thereto and any objections to the attachment thereof:

Provided that, where the property is under attachment in the execution of decree of more courts than one, the court which shall receive or realise such property and shall determine any claim thereto and any objection to the attachment thereof shall be the court of the highest grade, or where there is no difference in grade between such courts, the court under whose decree the property was first attached.

(b) Where assets are held by the Sale Officer and before the receipt of such assets, demand notices in pursuance of applications for execution of decree against the same defaulter have been received from more than one decree-holder and the decree-holders have not obtained satisfaction, the assets after deducting the costs of realisation, shall be rateably distributed by the Sale Officer among all such applicants in the manner provided in section 73 of the Code of Civil Procedure, 1908.

(24) Where a defaulter dies before the decree has been fully satisfied an application under sub-rule (1) may be made against the legal representative of the deceased and thereupon all the provision of this rule shall, save as otherwise provided in this sub-rule, apply as if such legal representative were the defaulter. Where the decree is executed against such legal representative, he shall be liable only to the extent of the property of the deceased which has come to his hands and has not been duly disposed off; and for the purpose of ascertaining such liability, the Recovery Officer executing the decree may, of his own motion or on the application of the applicant, compel such legal representative to produce such accounts as he thinks fit.

(25) Where, in connection with the proceedings on an application under section 118 of the Act, any person requires the issue of any process or objects to any process issued or objects to any order passed, he shall pay such fee as may be specified by the Registrar in this behalf.

Mode of making attachment before judgment under section 120.- (1) Attachment of property under section 120 of the Act shall be made in the manner provided in Rule 92.

(2) Where a claim is preferred to property attached under sub-rule (1), such claim shall be investigated in the manner and by the authority specified in Rule 92.

(3) Where a direction is made for the attachment of any property under sub-rule (1) the Recovery Officer shall order the attachment to be withdrawn-

(a) when the party concerned furnishes the security required, together with security for the costs of the attachment or

(b) when the liquidator determines under clause (b) of sub-section (2) of section 80 of the Act that no contribution is payable by the party concerned; or

(c) when the Registrar passes an order under sub-section (1) of section 74 that the party concerned need not repay or restore any money or property or contribute any sum to the assets of the society by way of compensation; or

(d) when the dispute referred to in sub-section (1) of section 77 has been decided against the party at whose instance the attachment was made;

(e) when the order passed under section 128 or any of the provisions of the Act.

(4) Attachment made under sub-rule (1) shall not affect the rights existing prior to the attachment, of persons not parties to the proceedings in connection with which the attachment was made, not bar any person holding a decree against the person whose property is attached from applying for the sale of t he property under attachment in execution of such decree.

(5) Where property is under attachment by virtue of the provisions of this rule and a decree is subsequently passed against the person whose property is attached, it shall not be necessary upon an application for execution of such decree to apply for re- attachment of the property.

Procedure for the custody of property attached under section 120.- (1) Where the property to be attached is movable property, other than agricultural produce, in the possession of the debtor, the attachment shall be made by actual seizure and the attaching officer shall keep the property in his own custody or in the custody of one of his subordinate or of a Receiver, if one is appointed under sub-rule (2) and shall be responsible for the due custody thereof:

Provided that, when the property seized is subject to speedy and natural decay, or when the expenses of keeping it in custody is likely to exceed its value, the attaching officer may sell it at once.

(2) Where it appears to the officer ordering conditional attachment under section 120 to be just and convenient, he may appoint a Receiver for the custody of the movable property attached under that section and his duties and liabilities shall be identical with those of a Receiver appointed under Order XL in the First Schedule to the Code of Civil Procedure, 1908.

(3) (i) Where the property to be attached is immovable, the attachment shall be made by an order prohibiting the debtor from transferring or charging the property in any way, and all persons from taking any benefit from such transfer or charge.

(ii) The order shall be proclaimed at some place on, or adjacent to, such property by beat of drum or other customary mode, and a copy of the order shall be fixed on a conspicuous part of the property and upon a conspicuous part of the village, and where the property is land paying revenue to the Government, also in the office of the Collector of the district and in the office of the Tehsildar or any other Revenue Officer within whose jurisdiction the property is situated.

Issue of proclamation prohibiting private transfers of property.- The Registrar or any person authorised by him in this behalf, when acting under section 118 shall, at the time of signing a certificate affecting any property, issue a proclamation in form "L" and in the case of immovable property shall also forward a copy of the proclamation to the Tehsildar within whose jurisdiction the property is situated, who shall cause an entry about such certificate to be made in the Record of Rights.
Execution of awards or orders in special cases.- Subject to the provision of section 118, the Registrar may, by an order in writing specially authorise any officer of the Co-operative Department or any officer of an Apex or Central Society, on an application made by it, to call for and send awards or orders obtained by any society for execution. The society or societies in respect of which these powers are to be exercised shall be specified in the order.
Transfer of property which cannot be sold.- (1) When in execution of an order sought to be executed under section 118 any property cannot be sold for want of buyers, if such property is in the possession of the defaulter or of some person on his behalf, or of some person claiming it under a title created by the defaulter subsequent to the issue of the certificate by the' Registrar or any person authorised by him in this behalf under clause (a) or (b) of the said section, the officer conducting the execution shall as soon as practicable report the fact to the Court or the Collector or the Registrar, as the case may-be, and the society applying for the execution of the said order.

(2) On receipt of a report under sub-rule (1), the society may, within six months from the date of the receipt of the report or within such further period as may for sufficient reasons be allowed in any particular case by the- Court or the Collector or the Registrar, submit an application in writing to the Court, the Collector or the Registrar, as the case may be, stating whether or not it agrees to take over such property.

(3) On receipt of an application under sub-rule (2), notices shall be issued to the defaulter and to all persons known to be interested in the property, including those whose names appear in the Record of Rights as persons holding any interest in the property, about the intended transfer.

(4) On receipt of such a notice, the defaulter, or any person owing such property or holding an interest therein by virtue of a title acquired before the date of the issue of a certificate under section 118, may within one month from the date of the receipt of such notice, deposit with the Court or the Collector or the Registrar, for payment to the society a sum equal to the amount due under the order sought to be executed together with interest thereon and such additional sum for payment of costs and other incidental expenses as may be determined in this behalf by the Court or the Collector or the Registrar, as the case may be.

(5) On failure of the defaulter, or any person interested, or any person holding any interest in the property to deposit the amount under sub-rule (4), the Court or the Collector or the Registrar, as the case may be, shall direct the property to be transferred to the society on the conditions stated in the certificate in Form "M".

(6) The certificate granted under sub-rule (5) shall state whether the property is transferred to the society in full or partial satisfaction of the amount due to it from the defaulter.

(7) If the property is transferred to the society in partial satisfaction of the amount due to it from the defaulter, the Court or the Collector or the Registrar, as the case may be-, shall, on the production by the society of a certificate signed by the Registrar, recover the balance due to the society in the manner laid down in section 118.

(8) The transfer of the property under sub-rule (5) shall be effected as follows:-

(i) In the case of movable property:-

(a) Where the property is in the possession of the defaulter himself or has been taken possession of on behalf of the Court or the Collector or the Registrar, it shall be delivered to the society.

(b) Where the property is in the possession of some person on behalf of a defaulter, the delivery thereof shall be made by giving notice to the person in possession, directing him to give actual peaceful possession to the society, and prohibiting him from delivering possession of the property to any other person.

(ii) In the case of immovable property:-

(a) Where the property is growing or standing crop, it may be delivered to the society before it is cut and gathered and the society shall be entitled to enter on the land, and to do all that is necessary for the purpose of tending and cutting and gathering it.

(b) Where the property is in the possession of the defaulter or of some person on his behalf or some person claiming under a title created by the defaulter subsequent to the issue of a certificate under section 118, the court or the Collector or the Registrar, as the case may be, shall order delivery to be made by putting the society or any person whom the society may appoint to receive delivery on its behalf in actual possession of the property and if need be by removing any person who illegally refuses to vacate the same.

(c) Where the property is in the possession of a tenant or other person entitled to hold the same by a title acquired before the date of issue of a certificate under section 118, the Court or the Collector or the Registrar, as the case may be, shall order delivery to be made by affixing a copy of the certificate of transfer, of the property to the society in some conspicuous place on the property and proclaiming to such person by beat of drum or other customary mode at some convenient place, that the interest of the defaulter has been transferred to the society.

(9) The society shall be required to pay expenses incidental to sale including the cost of maintenance of live-stock, if any, according to such scale as may be fixed by the Registrar from time to time.

(10) Where land is transferred to the society under sub-clause (a) of clause (ii) of sub-rule (8) before a growing or standing crop is cut and gathered, the society shall be liable to pay the current year's land revenue on the land.

(11) The society shall forthwith report any transfer of property under sub-clause (b) or (c) of clause (ii) of sub-rule (8) to the village patwari for information and entry in the Record of Rights.

(12) The society to which property is transferred under sub-rule (5) shall maintain for each such defaulter a separate account showing all the expenses incurred including payment to outside encumbrances, land revenue and other dues on the property and all the income derived from it.

(13) The society to which property is transferred under sub-rule (5) shall use its best endeavour to sell the property as soon as practicable to the best advantages of the society as well as that of the defaulter, the first option being always given to the defaulter who originally owned the property. The sale shall be subject to confirmation by the Registrar. The proceeds of the sale shall be applied to defraying the expenses of the sale and other expenses incurred by the society and referred to in sub-rules (9) and (12) and to the payment of the arrears due by the defaulter under the order in execution, and the surplus (if any), shall then be paid to the defaulter.

(14) Until the property is sold the society to which the property is transferred under sub-rule (5) shall use its best endeavours to lease it or to make any other use that can be made of it so as to derive the largest possible income from the property.

(15) When the society to which property is transferred under sub-rule (5) has realised all its dues, under the order in execution of which the property was transferred, from the proceed of management of the property, the properly, if unsold, shall be restored to the defaulter.

Procedure for recovery of sums due to Government.- The provisions of rules 92 to 97 shall apply in regard to the recovery of any sum due to the Government from a society or from an officer, former officer member or past or deceased member of a society in pursuance of a demand issued by the Registrar or by any authority competent to issue such demand including any costs awarded to the Government in proceedings under the Act as if the Government were a decree-holder and the society or officer, former officer, member, or past or deceased member of society, as the case may be, was a defaulter, subject to the following modifications namely:-

(1) The Registrar may, of his own motion, take any steps which he may deem suitable in the matter of such recovery in accordance with the provisions of those rules and without any applications having been made to him in that behalf under those rules.

(2) It shall not be necessary to deposit any sum by way of costs as required by sub-rule (2) of rule 92.

(3) It shall not be necessary for the sale officer to give the decree-holder previous notice, as required by clause (a) of sub- rule (5) of rule 92 of the intention to serve the demand notice on the defaulter and in default of payment to distrain his property. Nor shall the provision of clause (b) of sub-rule(5) of that rule which empowers the sale officer to require the decree-holder to undertake the custody of the distrained property apply.

(4) It shall not be necessary to send a copy of the attachment notice to the decree-holder as required by clause (d) of sub-rule (11) of rule 92.

(5) It shall not be necessary to give notice of the proclamation of sale to the decree-holder as required by clause (e) of sub-rule (11) of rule 92.

(6) The Registrar shall himself obtain the encumbrance certificate required to be furnished by the decree-holder under clause (f) of sub-rule (11) of rule 92.

(7) The payments required to be made under clause (1) (b) of sub-rule (13) of rule 92 shall be made to the Sale Officer on behalf of the decree-holder.

(8) The application referred to in clause (i) of sub-rule (14) of rule 92 shall be made by the Recovery Officer on behalf of the decree-holder.

CHAPTER XII

Appeals, Revision and Review

Procedure for presentation to and disposal of appeals by Government and Registrar under section 124.- (1) (a) An appeal to the Government or the Registrar shall be presented by the appellant or by his duly appointed agent to the appellate authority either in person during office hour or sent to it by registered post. When the appeal is presented on behalf of a society, a copy of the resolution of the Committee of the society in respect of appeal and authorising the officer to sign and present the said appeal, shall also accompany the memorandum of appeal.

(b) An appeal to the State Government under the Act may be heard by such officer or officers as may be specified by the Government.

(2) When such an appeal is presented by an agent, it shall be accompanied by a letter of authority of the appellant appointing him as such.

(3) Every appeal shall be accompanied by a certified copy of the order against which the appeal is preferred.

(4) Every appeal shall :-

(i) be either type-written or hand-written in ink legibly;

(ii) specify the name and the address of the appellant and also the name and address of the opponent, as the case may be;

(iii) state by whom the order against which the appeal is preferred was made;

(iv) clearly state the grounds on which the appeal is made;

(v) state precisely the relief which the appellant claims; and

(vi) give the date of the order appealed against.

(5) On receipt of the appeal, the appellate authority shall endorse on it the date of its receipt by it. The appellate authority shall, as soon as possible, examine it and satisfy itself that;-

(i) the person presenting it has the authority to do so;

(ii) it is made within the prescribed time; and

(iii) it conforms to all the provisions of the Act and these rules.

(6) If the appellate authority finds that the appeal presented does not conform to any of the said provisions, it shall make a note on the appeal to that effect and may call upon the appellant or his agent to remedy the defects within a period of seven days of the receipt of the notice to do so or in case the appeal has not been made presented within the prescribed time limit to show cause within the said period of seven days why it should not be dismissed as time-barred by the appellate authority.

(7) If the defect is remedied or the cause shown by the appellant or his agent satisfies the appellate authority, the appellate authority may proceed to consider the appeal.

(8) If the appellant or his agent fails to remedy the defects or to show cause to the satisfaction of the appellate authority within the said period, the appellate authority may if the appeal is not presented within the time limit dismiss the appeal as time- barred. In cases where it is considered necessary to give a hearing, the appellate authority may fix a date for hearing, of which due notice shall be given to the appellant or his agent.

(9) On the date so fixed, the appellate authority shall go through the relevant papers, hear the appellant or his agent, if present, and pass suitable order on the appeal.

(10) The appellate authority may, at its discretion, adjourn to any other day the hearing of any appeal at any stage.

(11) When the hearing of the appeal is completed, the appellate authority shall announce its judgment forth with or may fix a date for the same, after giving due notice to the appellant or the other parties to the appeal.

(12) Every decision or order of the appellate authority shall be in writing and a copy of the same shall be supplied to the appellant and such other parties as in the opinion of the appellate authority are likely to be affected by the decision or the order.

CHAPTER XIII

Miscellaneous

Accounts and other books to be maintained by societies.- (1) Every society shall keep and maintain the following accounts and books for the purpose of recording the business transacted by it:-

(a) Minutes book for recording the proceedings of the committee and of the general body of members.

(b) Register of applications for membership, containing the name and address of the applicant, the date of receipt of application, the number of shares applied for and in case of refusal, the date of communication of the decision refusing admission to the applicant.

(c) Register of members showing the serial number, name and address of each member, the date of admission, the number of share or shares taken by him, the name or names of nominee appointed by such member, witness to such nomination and the date of cessation of membership.

(d) Register of shares showing the name and address of each member, the number of share or shares taken by him and the amount paid by him towards such shares and the amount of share capital, if any refunded to him together with the date of each such payment and refund, the number of share or shares transferred and the name of transferee with the date of such transfer.

(e) Cash book, showing daily receipts and expenditure, and the balance at the end of each day of transactions.

(f) Receipt book, containing forms in duplicate, one of each set to be issued for money received by the society and the other to serve as counterfoil.

(g) Voucher file, containing all vouchers for contingent expenditure incurred by the society, numbered serially and filed chronologically.

(h) Ledger of borrowings, showing deposits and other borrowing of all kinds.

(i) In the case of societies issuing Loans-

(1) Loan ledger, showing the number and date of disbursement of each loan issued to members, the amount of loan, the purpose for which it is granted and the date or dates of repayment, distinguishing principal and interest.

(2) Liability register showing the indebtedness of each member to the society whether on account of loans taken directly by him or on account of loans for which he stands as surety.

(j) In the case of a society with unlimited liability, property statement of members showing the assets and liabilities of each individual member on the date of his admission with full details of the property including the survey number of the lands, the statement being revised as often as may be necessary and in any case at least once in three years and such statements being entered in a register in a stitched volume.

(k) In the case of a society, the working capital of which exceeds twenty thousand rupees, general ledger showing receipts and disbursements and the out-standings under various heads from day-to day.

(l) In the case of a society to which rule 66 applies, register of fluid resources showing the immediate liabilities of the society and the extent of fluid resources available to meet them.

(m) Monthly register of receipts and disbursements.

(n) Register of dividend.

(o) Register of debentures and bonds (where capital is raised by debentures and bonds).

(p) Stock register.

(q) Property register.

(r) Plant and machinery register in case of processing and producers society etc.

(s) Register of audit objections and their rectification.

(t) Such other accounts and books as may be required by the Registrar from time to time.

(2) The Secretary of the society shall be responsible for the custody of the registers prescribed under these rules, bye-laws and other record of the society.

Maintenance of register of names etc. of co-operative societies.- The Registrar or the authority competent to register a society shall maintain:-

(1) a register of the names and addresses of all co-operative societies registered under the Act, and

(2) a record of the bye-laws of each co-operative society, with all subsequent amendments thereto, arranged in the order in which the amendments are registered.

Power to Registrar to direct accounts and books to be written up.- The Registrar may, by order in writing, direct any cooperative society to get any or all the accounts and books required to be kept by it under rule 100 written up to such date, in such form and within such time as he may direct. In case of failure by any society to do so, the Registrar may depute an officer subordinate to him to write up the accounts and books. In such cases, it shall be competent for the Registrar to determine, with reference to the time involved in the work and the emoluments of the officer deputed to it, the charges which the society concerned should pay to the State Government and to direct its recovery from the society.
Certifying copies of entries in books.- (1) For the purposes specified in section 141, a copy of an entry in the books of a cooperative society regularly kept in the course of its business shall be certified:-

(a) by the Chairman or Secretary of the Society and shall also bear the society's seal, or

(b) by the liquidator where an order has been passed under section 79, appointing a liquidator of the society, or

(2) The charges to be levied for the supply of such certified copies shall not exceed the amounts specified in rule 109.

Statements and returns to be furnished by Societies.- (1) Every Co-operative society shall prepare for each Co-operative year-

(a) a statement showing the receipts and disbursements for the year,

(b) a profit and loss account.

(d) such other statements or returns as may be specified by the Registrar.

(2) Every co-operative society shall submit to the Registrar annually, within such time as he may direct a copy of the statements specified in sub-rule (1). After the Registrar or auditor has verified the statements and granted his audit certificate, the society shall publish the audit certificate and such of the other statement as he may direct in the manner specified by him and the audit certificate shall so far as practicable be granted within one year from the date of receipt of the statements specified in sub-rule (1).

(3) Every Co-operative society shall, in addition to the annual statements specified in sub-rule (1) also submit to the Registrar any statement or return in such form, within such time, and for such period as the Registrar may specify.

(4) In case of failure by any society to submit any statement or return specified in sub-rule (1) or (3) within the time directed by him, the Registrar may depute an officer to prepare the necessary statement or return. The members of the committee and other officers of the society shall furnish to such officer entrusted with the work, all information necessary for preparing the return or returns. In such cases, it shall be competent for Registrar to determine with, reference to the time evolved in the work and emoluments of the officer deputed to do it, the charges which the society concerned should pay to Government and to direct its recovery from the society as arrears of land revenue.

Mode of service of summons or notices.- (1) Every summons or notices issued under the Act or these rules shall be in writing shall be authenticated by seal, if any, of the officer by whom it is issued and shall be signed by such officer or by any person authorised by him in writing in that behalf. The summons or notices shall require the person summoned to appear before the said officer at a stated time and place, and shall specify whether his attendance is required for the purpose of giving evidence or to produce a document or for both purposes; and any particular document, the production of which is required shall be described in the summons with reasonable accuracy.

(2) Summons or notices issued under the Act or these rules may be served through a Tehsildar or any employee of the Co-operative Department or of an apex or Central Society or through the Chairman or Secretary of the society or by registered post with acknowledgment due. Every person or society to whom summons or notices are sent for service shall be bound to serve them within a week.

(3) Any person may be summoned to produce a document without being summoned to give evidence, and any person summoned merely to produce a document shall be deemed to have complied with the summons if he causes such document to be produced, instead of attending personally to produce the same.

(4) The service of summons or notices under the Act or these rules on any person, may be effected in any of the following ways:-

(a) by giving or tendering it in person; or

(b) if such person is not found, by leaving it at his last known place of abode, or business or by giving or tendering it to some adult member of his family; or

(c) if the address of such person is known to the Registrar or other authorised person, by sending it to him by registered post with acknowledgment due; or

(d) if none of the means aforesaid is available, by affixing it in some conspicuous part of his last known place of abode or business.

(5) Where the serving officer delivers or tenders a copy of the summons or notices to the defendant personally or to an agent or to other person on his behalf, he shall require the signature of the person to whom the copy is so delivered or tendered as an acknowledgment of service endorsed on the original summons or notices.

(6) The serving officer shall in all cases in which the summons or notices have been served under sub-rule (5), endorse or annex, or cause to be endorsed or annexed, on or to the original summons or notices a return stating the time when and the manner in which the summons or notices were served and the name and address of the person, if any, identifying the person serviced and witnessing the delivery or tender of the summons or notices.

(7) Where the defendant to be summoned is a public officer or is the servant of a local authority or of a society, the officer issuing the summons may, if it appears that the summons may be conveniently so served, send it by registered post acknowledgment due for service on the party to be summoned to the head of the office in which he is employed together with a copy to be retained by the defendant.

Authentication of notice or process.- Every notice or process issued under the Act, or these rules shall be in writing shall be authenticated by the seal, if any, of the officer by whom it is issued, and shall be signed by such officer or by any person authorised by him in writing in that behalf.
Communication of order, decision of award.- Any order, decision or award required to be communicated under the Act or these rules shall, unless otherwise specifically provided in the Act or these rules, be posted to the last address of the party as given by the party under certificate of posting and under intimation to the society with instructions to display a copy thereof on its notice board.
Inspection of Documents.- A member of the society may inspect the following documents in the office of the Registrar on payment of a fee of rupee one for each occasion and may obtain certified copies thereof, on payment of the following fees:-Paisa

(i)	application for registration of a society	25 per every 200 words or less
(ii)	certificate of registration	25 each
(iii)	bye-laws of societies	25 per every 200 words or less
(iv)	amendment of bye-laws of a society	25 per every 200 words or less
(v)	order of cancellation of the registration of a society	25 per every 200 words or less
(vi)	audit memorandum of a society	25 per every 200 words or less
(vii)	annual balance sheet	25 per every 200 words or less
(viii)	order of surcharge under section 74	25 per every 200 words or less
(ix)	order of supersession of a committee or removal of any member thereof	25 per every 200 words or less
(x)	order referring a dispute or decision	25 per every 200 words or less
(xi)	any other order against which an appeal is provided	25 per every 200 words or less

Provided, the document privileged under sections 123, 124, 129 and 131 of the Indian Evidence Act shall not be open to inspection.

Supply of copies of documents by societies and fees therefor.- (1) A member of a society requiring a copy of any of the documents mentioned in sub-section (ii) of section 134, may apply to the society for the same. Every such application shall be accompanied by a deposit of the cost of preparing the copies according to the following scale, namely:-

For every folio or less English	25 Paise
For every folio or less Hindi	25 Paise

On receipt of the deposit, the society shall issue a receipt for the same.

(2) Where the copies are prepared, the amount due from the member according to the scale laid down in the sub-rule (1), shall be retained by the society as copying fees and the surplus amount, if any, remaining out of the deposit shall be refunded to the member at the time of supplying copies. Where the amount deposited by the member is found to be insufficient to cover the copying fees, the member shall be called upon to pay the deficit before taking delivery of the copies.

(3) The copies shall be certified and signed as to true copies by any person mentioned in the rule 103.

Power to exempt from rules.- The Government may, by general or special order, exempt any society or any class of societies from any of the provisions of the rules or may direct that such provisions shall apply to such society or class of societies with such modifications and, or conditions as may be specified in the order.
Repeal and Savings.- The Rajasthan Co-operative Societies Rules, 1957, and the Rajasthan Sahkari Bhumi Bandhak Bank Rules, 1957, are hereby repealed, except as respects thing done or omitted to be done before the repeal thereof.

Form "A"

(See rule 6)

Report to Government

The Secretary to Government,

Co-operative Department,

Rajasthan, Jaipur.

Registration proposal

Sub:- Report regarding.

I have received a proposal for registration of ............ Society village .......... Tehsil .................... District ... on It may not be possible to dispose of this registration proposal within a period of three months as laid down under section 8(3) of the Rajasthan Co-operative Societies Act, 1965 for the following reasons, that is to say:-

(1) The promoters have not given information called for from them within the specified time.

(2) The promoters have not been able to collect the share capital which is necessary for the successful working of the society.

(3) Details regarding immovable property proposed to be purchased/acquired/transferred to the society are not given by the promoters.

(4) The concurrence of other departments regarding the feasibility of the scheme has not been received.

(5) The promoters have not been able to give detailed working of the scheme which they propose to implement.

(6) Any other reasons.

In the circumstances, I would request that Government may please be moved to allow me to register the society after the above requirement(s) is/are fulfilled within a further period upto:-

Assistant/ Deputy/ Joint/ Additional Registrar of Co-operative Societies.

Submitted through the Deputy/Joint/Additional Registrar of the Co-operative Societies for onward transmission to Government.

N.B. - The reasons for delay to be given in the body of the letter should be self-explanatory, any other reasons, if any, for the delay in the registering of the society should also be mentioned.

Form "B"

(See rule 24)

List of members of ............. Society Limited/Unlimited.

As on .............

S. No.	Full name of the member with Father’s name/ Husband’s name	Address	Class of Members
1	2	3	4

Form "C"

[See rue 49(1)]

Declaration under Section 39.

I, ...................... (age .....) residing at................ having been admitted to the membership of.......................Society with Limited/ unlimited liability and being desirous of borrowing loan from the society/having borrowed loan from the society before make this declaration as required by section 39(a)/39(b) of the Rajasthan Co-operative Societies Act, 1955, that own/1 have interest as a tenant -in land specified in the Schedule, and I hereby create a charge on the said land/interest in favour of the society for the payment of the amount of the loan which the society may make /has made and for all future advances, if any, which the society may make to me subject to the maximum amount of Rs. ................ to together with interest on such amount of the loan and advances.

Schedule

Name of village	Name of Tehsil	Name of District	Survey No.
			City Survey No.
			Khata No.	Khasra No.
1	2	3	4	5

Boundaries				Area
South	East	North	West	Bighas	Biswas
6	7	8	9	10	11

Assessment		Encumbrances if any, +		Remarks if any
Rupees	P.	Approximate value	Nature	Amount
12	13	14	15	16	17

In witness whereof, I, Shri....................hereunder set my hand this ................ day of........... in the year one thousand nine hundred and..........

Witness

Signed and Delivered by the above named in the presence of.-

(1) .....................	Applicant's/ Borrower’s Signature
(2) .....................	Attested ..........................................
	Designation ....................................

Forwarded with compliments to the Patwari with a request to include the particulars of the charge.....................created under the declaration in the Record of Right and to return to the society for its record.

Chairman

Secretary

.............. Society,

Panchayat Samiti.

Return with compliments to the Chairman ....................society, Limited/Un-limited. The Charge created under the declaration is duly included in the Record of Rights on the day of 19........................

Signature of Patwari ............ Halka ................................. Tehsil ................................. District ...............................

Form "D"

[See rule 49(2)]

Register of declaration made under Section 39(a)/(b)

S. No.	Date of entry in the Register	Name of the member	Date of declaration.	Name of the village in which land is situated
1	2	3	4	5

Survey No.		Area		Assessment
City Survey No.		Bighas	Biswas	Rupees	Paisa
Khata No.	Khasara No.
6	7	8	9	10	11

Approximate value	Encumbrances, if any		Amount of Maximum loan	Remarks if any	Initial of the Chairman
Approximate value	Nature	Amount	Amount of Maximum loan	Remarks if any	Initial of the Chairman
12	13	14	15	16	17

Form "E"

[See sub-rule (4) of rule 50 of the Rajasthan Co-operative Societies Rules, 1966]

Form of remittance under sub-rule (4) of rule 50 of the Rajasthan Co-operative Societies Rules, 1966, of recoveries effected from the members on account of the dues to a co-operative society.

The President/Secretary.

Co-operative Society.

Sir,

With reference to your requisition, dated the ................ for the recovery of amounts due to your society for the month 19 remit herewith Rs................(Rs.............................in words)

Details of the amount recovered are furnished below:-

Name of the Member	Amount recovered Rs. P.	Date of recovery	Total

Total

Less cost of remittance, if any Net amount remitted.

Please acknowledge receipt.

Yours faithfully,

Employer or officer disbursing salary or wages

Form "F"

[See sub-rule (7) of rule 50 of the Rajasthan Co-operative Societies Rules, 1966.]

Register showing the recovery and remittance of moneys due to Co-operative Societies maintained under sub-rule (7) of rule 50 of Rajasthan Co-operative Societies Rules, 1965.

S.No.	Name of the Co-operative Society	Date of receipt of demand from the Society	Name of the employee from whom dues have to be recovered
1	2	3	4

Receipts			Payments
Demand	Date of Recovery	Amount recovered	Amount	remitted
6	7	8	9	10

Payments		Remarks (here enter the reasons for the difference if any between the amounts in columns (4) and (6)	Initials of the officer disbursing the salary or wages
Challan No. and date of remittance or signature of the authorised representative of the society	No. and date of the official printed receipt of the society		Initials of the officer disbursing the salary or wages
11	12	13	14

Form "G"

[See clause (i) of sub-rule (5) of rule 32 of the Rajasthan Co-operative Societies Rules, 1966.]

Nomination form for election under clause (i) of sub-rule (5) of rule 32 of the Rajasthan Co-operative Societies Rules, 1966 as a member of the Committee of a Co-operative Society.

Name of the Society.
Admission Number and name of the candidate.
Father's or husband's name.
Address.
Admission number and name of the proposer.
Signature or thumb-impression of the proposer.
Admission number and name of the seconder.
Signature or thumb-impression of the seconder.

Candidate's declaration

I declare that I am willing to stand for election.

(Signature or thumb impression of candidate.)

Endorsement by the person authorised to receive the nomination paper

This nomination was presented to me in person at ............ on (date) at ........................(hour) by .............

Form "H"

[See Rule 44(1)]

Balance Sheet

Instructions in accordance with which liabilities should be made out		LIABILITIES				ASSETS			Instructions in accordance with which assets should be made out

		Figures for the previous year		Figures for the current year		Figures for the previous year	Figures for the current year
	1	2		3		4	5		6
		Rs		Rs		Rs	Rs
I	Contributed by Government and by co-operative societies and different classes of individual members shall be shown separately. Terms of redemption or conversion of any redeemable preference shares should be mentioned.		I.	Share Capital:- Authorised: shares of Rs.....each. Subscribed: (distinguishing between the various classes of capital and stating the particulars specified below, in respect of each class) Shares of each. Less- Calls in arrears, add- Calls in advances.	I.	Cash and Bank balance. (a) Cash in hand. (b) Cash in Bank:— (i) Current Account. (ii) Savings Banks Account. (iii) Call deposit on Bank.		I.	Fixed deposits and call deposits with Central Banks and other approved bankers should be shown under the heading “Investments” and not under the heading “Cash and bank balance.”
			I.A	Subscriptions towards shares.
II	(a) Statutory Reserve Fund and other reserves and funds shall be shown separately. (b) Additions and deductions since last Balance Sheet to be shown under each of the specified head. (c) Funds in the nature of reserves and funds created out of any profits for specific purposes should be shown separately.		II	Reserve Funds and other Fund: (a) Statutory Reserve Fund. (b) Building Fund. (c) Special Development Fund. (d) Bad and Doubtful Debts Reserve (e) Investment Depreciation Fund. (f) Dividend Equalization Fund. (g) Bonus Equalization Fund. (h) Reserve for overdue interest. (i) Other funds.	II	Investments: (a) Government securities. (b) Other Trustee Securities. (c) Non-Trustee Securities. (d) Shares of other Co-operative Societies. (e) Shares, Debentures or Bonds of companies registered under the Companies Act. (f) Fixed deposits.		II	The nature of each investment and the mode of valuation (cost or market value) should be mentioned. If, the book value of any society is less than the market value a remark to that effect should be made against each item.
III.	Staff Provident Fund and any other Insurance or Bonus Funds maintained for the benefit of the employees should be shown separately.		III.	Staff Provident Fund:-	III.	(1) Investment of Staff Provident Fund (2) Advances against Staff provident Fund.		III.	Quoted and unquoted securities should be shown separately.
IV.	The nature of the security should be specified in each case. Where loans have been granted by Government of State Co-operative of Central Banks a mention thereof should also be made together with the maximum amount of such guarantee. Loans from (1) Government, (2) State Co-operative Banks, or Central Bank, State Bank of India & other Banks should be shown separately.		IV.	Secured Loans: (a) Debentures. (b) Loans, overdrafts and cash credits from Banks. (c) Loans from Governments. (d) Other secured loans	IV. 1.	Loans & Advances: (a) Loans (b) Overdrafts. (c) Cash Credits: (i) Against pledge of goods. (ii) Against hypothecation of goods. (iii) Clear (of which over due (Rs.... ) 2. Loans due by managing committee members Rs........ Loans by Secretary. and other employees Rs...........		IV.	In case of Central Banks and other federal societies loans due by societies and individual members should be shown separately.
V.			V.	Unsecured Loans; (a) Loans, cash credits & overdraft from Central Banks. (b) Form Government (c) From others (d) Bills payable.	V.	Sundry Debtors: (1) Credit Sales. (2) Advances. (3) Others.		V.
VI	Deposits from societies and individual should be shown separately.		VI	Deposits: (a) Fixed Deposits. (b) Recurring deposits. (c) Thrift or saving deposits. (d) Current deposits. (e) Deposits at call. (f) Other deposits. (g) Credit balance in each credit and overdrafts accounts.	VI	Current Assets:- 1. Stores spare parts. 2. Loose tools. 3. Stock-in-trade. 4. Works in Progress.		VI	Mode of valuation and stock shall be stated and the amount in respect of raw materials, partly finished and finished goods and stores required for consumption should be stated separately. Mode of valuation or works in progress shall be stated.
VII			VII	Current liabilities & Provisions. (a) Sundry creditors. (b) Outstanding creditors:- (i) for purchases, (ii) for expenses including salaries of staff, rent, taxes, etc. (c) Advances, recoveries for the portion for which value has still to be given, viz., unexpired subscriptions, premiums, commission etc.	VII	Fixed Deposits: (a) Lands and buildings. (b) Lease holds. (c) Railway siding. (d) Plants & Machinery. (e) Loose tools, tackles & other equipments. (f) Dead-stock. (g) Furniture & fittings. (h) Live stock (i) Vehicles etc.		VII	Under each head the original cost & the additions thereto and deduction therefrom made during the year and the total depreciation on.........Written off or provided upto the end of the year should be stated.
VIII			VIII	Unpaid Dividends.	VIII	Miscellaneous expenses and Losses: 1. Goodwill. 2. Preliminary expenses. Expenses connected 3. with the issue of shares and debentures including underwriting charges, brokerage, etc. 4. Deferred revenue expenditure.
IX.			IX.	Interest accrued due but not paid.	IX.	Other Items: (a) Prepaid expenses. (b) Interest accrued but not due. (c) Other items (to be specified).
			X	Other liabilities (to be specified)	X	Profits & Loss Account. Accumulated Losses not written off from the reserve or any other fund.
XI.	Contingent liabilities which have not been provided for should also be mentioned in the Balance Sheet by way of a foot-note.		XI.	Profit & Loss Account: Profit for last year. Less-Appropriation. Add-Current profits.	XI.	Current Losses.

Profit and Loss Account

Last years figures Rs. P		Expenditure	This year's figures Rs. P	Last year's figures Rs. P		Income	This year's figures Rs. P
1		2	3	4		5	6
	1	Interest: (a) Paid Rs. (b) Payable Rs.			1	Interest received :— (a) On loans and Advances (b) On investments.
	2	Bank Charges.			2	Dividend received on shares.
	3	Salaries and allowances of staff.			3	Commission.
	4	Contribution to staff provident fund.			4	Miscellaneous Income-
						(a) Share transfer fees.
						(b) Rents.
						(c) Rebate in Interests
						(e) Others Items.
	5	Salary and Allowances of Managing Director			5	Land Income and Expenditure accounts.
	6	Attendance fees and travelling expenses of Directors and Committee Members.
	7	Travelling expenses of staff.
	8	Rent, rates and taxes.
	9	Postage, Telegram and Telephone Charges.
	10	Printing and Stationery.
	11	Audit fees.
	12	(Contingencies) General expenses.
	13	Bad Debts written off or provision made for bad debts.
	14	Depreciation on fixed assets.
	15	Land Income and Expenditure Account.
	16	Other items.
	17	Net Profit carried to Balance Sheet.

Note:- In the case of marketing societies, consumers' societies and similar other societies which have undertaken trading activities, the Profit and Loss Account shall be divided into two parts showing separately the trading account and the Profit and Loss Account. In case of producers' societies processing societies, forest labourer's societies and other societies which have undertaken production activities, the manufacturing account shall also be prepared in addition.

Form "I"

(See rule 75)

Application regarding reference of a dispute

To,

The Registrar/ Additional/ Joint/ Deputy/ Assistant Registrar.

1. Name: Occupation: 2. Name: Occupation: 3. Name: Occupation:	Age: Address Age: Address Age: Address	]	Disputants
		Versus
1. Name: Occupation: 2. Name: Occupation: 3. Name: Occupation:	Age: Address Age: Address Age: Address	]	Opponents

Particulars of the claim or the facts constituting the cause of action and when it arose:-

The Disputant/ Disputants prays/ pray as under:-

In support of the above claim or relief sought I/ We enclose documents and papers as per the list annexed hereto.

Date:

(Signed)..........................

Disputant/ Disputants.

I/ We .................................. Disputant/ Disputants/ declare that the facts stated above are true to the best of my/ our knowledge and belief.

Date:

(Signed)..........................

(1)	\|
(2)	\|	+ Disputant
(3)	\|

Filed in the office ........... on ................. 19.

Note:- (1) In case there are more Disputants or Opponents their names. Addresses, Ages and Occupations should also be mentioned.

(2) In disputes relating to monetary claims, the applicants should state the precise amount claimed but where this cannot be exactly ascertained the applicants shall state the approximate amount claimed.

(3) When a society is a disputant, a copy of the resolution of its Committee or Board of Directors shall accompany the application.

Form "J"

[See rule 81(8)]

Whereas Shri ................... resident of..............has applied for loan the purpose of (specify purpose) ...................... a purpose mentioned in Section 84 of the Rajasthan Co-operative Societies Act, 1965 from .............. Land Development Bank Limited..................and has proposed to offer as a security for the loan, the lands mentioned in the margin;

Lands in which improvement is to be effected.			Notice is hereby given that objections, if any, to the grant of loan from all persons interested will be heard by the undersigned at......... O'clock on ..... 19 .... at... Any person wishing to submit any objection should appear in person at the above mentioned time and place before the undersigned together with any documents he wants to produce in support of his objections.
Name of village	Survey No.	Assessment
......	......	......
......	......	......
Lands proposed to be offered as security.
Name of the village	Survey No.	Assessment
......	......	......
......	......	......

It is hereby notified for the information of all persons interested that according to the provisions of Section 92 of the Rajasthan Cooperative Societies Act, 1965, a written order by the Land Development Bank or person or committees authorised under the bye-laws of the Bank to make loans for all or any of the purposes specified in Section 84. granting either before or after the commencement of the said Act, a loan to or with the consent of person mentioned therein, for purposes of carrying out the work specified therein for the benefit of the land or for the productive purpose mentioned therein, shall for purposes of the said Act, be conclusive of the following matter, that is to say-

(a) that the work described or the purpose for which the loan is granted, is an improvement or productive purpose, as the case may be, within the meaning of Section 84;

(b) that the person had at the date of the order a right to make such improvement or incur expenditure for productive purpose, as the case may be; and

(c) that the improvement is one befitting the land specified and productive purpose concerns the land offered in security, or any part thereof as may be relevant.

If any person interested fails to appear as stated as required by this notice, the questions at issue will be decided in their absence and such persons will have no claim whatsoever against the property for which the loan applied for, will be sanctioned till such time as the loan together with interest thereon or any other dues arising of the loan are paid in full by the loanee.

Dated this day of ................ 19

(Signed)

Designation of Officer

Copy forwarded with compliments to the Patwari or other corresponding Officer.................village and the..............Land Development Bank, Limited ....................with a request to affix this notice at the village chopal and head office and relevant branch office of the Bank immediately and inform the undersigned accordingly by......................

Form "K"

(See rule 89)

Certificate to be granted to the purchaser of the property under Section 109 (1) of the Rajasthan Co-operative Societies Act, 1965

This is to certify that the following property:-

S. No.	Survey No.	Boundaries	Village	Tehsil	District	Name of the Mortgager who held the land
1	2	3	4	5	6	7
1 to 10

Has been sold to .............. at in public auction of the property held under Section 106 (1) of the Rajasthan Co-operative Societies Act, 1965, on.............for Rs............and the said........ has been declared to be the purchaser of the said property at the time of the sale. The sale price of the said property was received on..........by the..............Land Development Bank, Limited The sale was confirmed under Section 107 of the Act and become absolute on

(Signature)................... Secretary/ Manager, Land Development Bank, Limited.

Form "L"

(See rule 95)

Proclamation to be issued at the time of the issue of a certificate under section 118.

In the case of immovable property:-

Whereas ..................... (judgment creditor) has obtained an award or awards under section 117 or an order or orders of the Liquidator under section 80 of the Rajasthan Co-operative Societies Act, 1965, for an amount of Rs. against ......................(judgment debtor) and proposes to execute the same by sale of the undermentioned property of the said judgment debtor and whereas the said judgment creditor has obtained a certificate dated ............... or execution of the award/ awards or the order/ orders, under section 118 of the said Act.

Notice is hereby given that any private transfer or delivery of, or encumbrance or charge on, the property made or created after the issue of the certificate shall null and void against the said judgment creditor under the proviso of Section 122(2) of the Act aforesaid.

Description of the Property

Date of award or order	Names of the parties against whom has been passed and certificate under section 118 has been issued.	Survey No. or House No.	Name of the Village or Town etc.	Area	Assessment or other taxes.	Other description of the property such as boundaries etc.

The notice shall be proclaimed at some place on or adjacent to such property by beat of drum or other customaiy mode, and a copy of the said notice shall be fixed on a conspicuous part of the property and upon a conspicuous part of the Village Chopal, and also where the property is land paying revenue to State Government, in the office of the Collector of the District in which the land is situated.

Place: ............	Registrar of Co-operative Societies/ Liquidator.
Date: ............

In the case of movable property a similar notice may be given necessary charges as to the description of the property, a copy shall be delivered to the judgment debtor.

Form "M"

[See rule 97(5)]

Certificate for transfer of property under Section 122.

In the case of immovable property:-

Whereas in execution of the award or order or awards or orders passed under section 117 or an order or orders made by a Liquidator under section 80 of the Rajasthan Co-operative Societies Act, 1965, in favour of the ............ society, an order was made on the .......... day of 19 for sale of the undermentioned property of the person or persons (debtor or debtors);

And Whereas the Court/the Collector/the Registrar is satisfied that the said property cannot be sold for want of buyers;

It is hereby ordered under section 122 of the said Act that the right, title and interest of the debtor in the said property shall vest in the said society and shall be delivered to the society subject to the terms and conditions laid down in the Schedule hereto annexed.

Description of the Property