```
TTHHEE AANNDDAAMMAANN && NNIICCOOBBAARR IISSLLAANNDDSS
  CCOO--OOPPEERRAATTIIVVEE SSOOCCIIEETTIIEESS
    RREEGGUULLAATTIIOONNSS,, 11997733
        &&
TTHHEE AANNDDAAMMAANN && NNIICCOOBBAARR IISSLLAANNDDSS
  CCOO--OOPPEERRAATTIIVVEE SSOOCCIIEETTIIEESS
     RRUULLEESS,, 11997744

```

-----

|I N D E X|Col2|Col3|Col4|
|---|---|---|---|
|Chapte PARTICULARS Page r No. No.||||
|REGULATIONS, 1973||||
|I. Preliminary ... 2||||
|II Registration of Co-operative Societies ... 3||||
|III Members of Co-operative Societies and their Rights ... 9 and Liabilities||||
|IV Management of Co-operative Societies ... 11||||
|V Privileges of Co-operative Societies ... 14||||
|VI Properties and Funds of Co-operative Societies ... 19||||
|VII Audit, Inquiry, Inspection & Surcharge ... 20||||
|VIII Settlement of Disputes ... 23||||
|IX Winding-up of Co-operative Societies ... 25||||
|IX A Special Provisions For Insured CO-operative Banks ... 28||||
|X Execution of Awards, Decrees, Orders and ... 29 Decisions||||
|XI Appeals and Revision ... 31||||
|XII Offences and Penalties ... 33||||
|XIII Miscellaneous ... 34||||
|RULES, 1974 ...||||
|I Preliminary ... 41||||
|II Registration of Co-operative Societies & their Bye- ... 43 laws, Application for Registration||||
|III|Members of Co-operative Societies, their Rights and Liabilities|...|50|


-----

|IV General Meeting ... 52|Col2|Col3|Col4|
|---|---|---|---|
|V Working of Co-operative Societies ... 54||||
|VI Audit, Inspection, Inquiry & Surcharge ... 58||||
|VII Settlement of Disputes ... 64||||
|VIII Winding-up and cancellation ... 66||||
|IX Execution of Awards, Decrees, Orders and ... 68 Decisions||||
|X|Miscellaneous|...|81|

|APPENDIX|Col2|Col3|Col4|
|---|---|---|---|
|A Application for Registration of Co-operative Societies ... 85 See Rule 37||||
|B See Rule 8 ... 86||||
|C Notice under Rule 13 (1) ... 88||||
|D Notice under Rule 13 (3) ... 89||||
|E See Rule 16 (3) ... 90||||
|F See Rule 27 ... 91||||
|G See Rule 46(1) Form of Declaration ... 96||||
|H See Rule 46 (2) Register of Declaration made under ... 97 Section 32||||
|I See Rule 83 Form for Award ... 98||||
|J See Rule Form of liquidation order ... 99||||
|Notification (Amendment) dated 20.05.1977 ... 100||||
|K Form of Agreement ... 100||||
|L|Register to be maintained by Employer / Pay|...|101|


-----

|disbursing Officer under section 39 (4) of the Andaman and Nicobar Islands Co-operative Societies Regulation 1973 (No. 3 of 1973)|Col2|Col3|Col4|
|---|---|---|---|
||Notification dated 02.06.2010 (Powers conferred on the RCS under Section 3(2) of the Andaman and Nicobar Co-operative Societies Regulation, 1973by superseding all previous orders.||103|


-----

## ANDAMAN AND NICOBAR GAZETTE

#### EXTRAORDINARY

###### Published BY Authority


###### No. 39, Port Blair, Thursday, May, 1973 / Vaisakha 13, 1895


###### ANDAMAN AND NICOBAR ADMINISTRATION
 CHIEF COMMISSIONER'S SECRETARIAT
 ------
 NOTIFICATION

---------
Port Blair, the 3[rd] May, 1973 / Vaisakha 13, 1895

No. 44/73/1/1(135)/73.Dev.(II)- The following Regulation promulgated by

the President under Article 240 of the constitution and published in the Gazette

of India Extraordinary Part II Section I, dated the 28[th] February, 1973 is hereby

republished below for general information.

BY order,

K.K. WARRIAR,

Assistant Secretary (Dev,).

-------
###### THE ANDAMAN AND NICOBAR ISLANDS
 CO-OPERATIVE SOCIETIES 
 REGULATION, 1973

 No. 3 of 1973

Promulgated by the President in the twenty-fourth Year of the Republic of

India.

A Regulation to consolidate and amend the law relating to co-operative

societies in the Union Territory of the Andaman and Nicobar Islands.

In exercise of the powers conferred by clause (1) of article 240 of the

Constitution, the President is pleased to promulgate the following Regulation
made by him:

-----

###### CHAPTER –I

 PRELIMINARY

1. Short title, extent and commencement:- (1) This Regulation may be called
the Andaman and Nicobar Islands Co-operative Societies Regulation,1973.

(2) It extends to the whole of the Union territory of the Andaman and Nicobar

Islands.

(3) It shall come into force on such date as the Central Government may, by

notification in the Official Gazette, appoint.

_2. Definitions:- In this Regulation, unless the context otherwise require._

a. “bye-laws” means the registered bye, laws for the time being in force

and includes registered amendments of such bye-laws;

b. “Chief Commissioner” means the Chief Commissioner of the Union

territory of the Andaman and Nicobar Islands;

c. “committee” means the governing body of a co-operative society, by
whatever name called, to which the management of the affairs of the
society is entrusted;

d. “co-operative society” means a society registered or deemed to be

registered under this Regulation;

e. “co-operative society with limited liability” means a co-operative society
in which the liability of its members, for the debts of the society in the
event of its being wound up, is limited by its bye-laws

(i) to the amount, if any, unpaid on the shares respectively held by

them; or

(ii) to such amount as they may, respectively, undertake to contribute
to the assets of the society:

f. “co-operative society with unlimited liability” means a co-operative
society, the members of which are, in the event of its being wound up.
Jointly and severally liable for and in respect of all its obligations and
to contribute to any deficit in the assets of the society:

g. “credit agency” means a co-operative society which has as its principal

object the lending of money to other co-operative societies and
includes(i) a banking company as defined in section 5 of the Banking
Regulation Act. 1940: 10 of 1940.

(ii) the state Bank of India constituted under section 3 of the State
Bank of India Act.1955:23 of 1955.

(iii) a subsidiary bank as defined in section 2 of the State Banking
India (Subsidiary Banks) Act 1959:38 of 1959.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

(iv) the Agricultural Refinance Corporation established under section
3 of the Agricultural Refinance Corporation Act.1963: 10 of
1963.and

(v) a corresponding new bank constituted under section 3 of the
Banking Companies (Acquisition and transfer of Undertakings)
Act, 1970:5 of 1970

h. “Government “means the Central Government;

i. “member” means a person joining in the application for the registration
of a co-operative society and a person admitted to membership after
such registration accordance with this Regulation, the rules and the
bye-laws, and includes a nominal or an associate member and the
Government when it subscribes to the share capital of a society;

j. “nominal or associate member “ means a member who possesses only
such privileges and rights of a member and who is subject only to such
liabilities of a member as may be specified in the bye-laws;

k. “officer” includes a president, vice-president, chairman, vice chairman,

managing director, secretary, manager, member of a committee,
treasurer, liquidator, administrator and any other person empowered
under the rules or bye-laws to give directions in regard to the business
of a co-operative society;

l. “Official Gazette” means the Andaman and Nicobar Gazette;

m. “prescribed” means prescribed by rules made under this Regulation;

n. “producers society” means a society formed with the object of

producing and disposing of goods and commodities as a collective
property of its members, and includes a society formed with the object
of the collective disposal of the labour of its members;

o. “Registrar” means a person appointed to perform the duties of a

Registrar of Co-operative Societies under the Regulation, and includes
any person appointed to assist the Registrar when exercising a or any
of the powers of the Registrar under sub-section (2) of section 3;

p. “rules” means the rules made under this Regulation;

q. “Union territory” means the Union territory of the Andaman and

Nicobar Islands.

###### CHAPTER II

 REGISTRATION OF CO-OPERATIVE SOCIETIES

_3._ **_Registrar-_** (1) The Chief Commissioner may appoint a person to be the
Registrar of Co-operative Societies for the Union territory and may appoint other
persons to assist him.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

(2) The Chief Commissioner may, by general or special order, confer on any

person appointed to assist the Registrar all or any of the powers of the Registrar
under this Regulation.

(3) Every person appointed to assist the Registrar shall exercise the powers

conferred on him under sub-section (2), subject to the general superintendence
direction and control of the Registrar.

4. Societies which may be registered :-(1) Subject to the provisions hereinafter
contained, a society which has as its object the promotion of the economic
interests of its members in accordance with co-operative principles, or a society
established with the object of facilitating the operations of such a society, may be
registered under this Regulation with or without limited liability:

Provided that, unless the Chief Commissioner by general or special order

otherwise directs, the liability of the society of which a co-operative society is a
member shall be limited.

(2) Whether the liability of the members of any co-operative society is limited or

unlimited by shares, the liability of the Government or of a credit agency which
has taken shares in such co-operative society, shall be limited to the share capital
subscribed by the Government or such credit agency as the case may be.

(3) The word “limited” or its equivalent in any Indian language shall be suffixed

to the name of every society registered under this Regulation with limited liability.

5. **_Restrictions on registration:- No society, other than a society of which a_**
member is a co-operative society, shall he registered under this Regulation unless
it consists of at least ten persons (each of such persons being a member of a
different family), above the age of eighteen years and residing in the area of
operation of the society.

**_Explanation:- For the purposes of this section, the expression “member of_**

a family” means wife, husband, father, mother, grandfather, grandmother, stepfather, step-mother, son, unmarried daughter, unmarried step daughter, stepson, grandson, unmarried grand-daughter, unmarried sister, unmarried half –
sister, brother, half-brother and wife of brother or half –brother.

6. Restriction on holding of shares:- No member, other than the Government or
a co-operative society, shall hold more than such portion of the share capital of a
co-operative society, subject to a maximum of one-fifth, as may be prescribed or
have or claim any interest in the shares of such society exceeding ten thousand
rupees.

7. Application for registration: - (1) For the purposes of registration of a cooperative society under this Regulation, an application shall be made to the
Registrar in the prescribed form.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

2) The application shall be signed:
a) in the case of a society of which no member is a co-operative society, by at

least ten persons qualified in accordance with the requirements of section
5: and.

b) in the case of a society of which a member is a co-operative society, by a

duly authorized person on behalf of every such co-operative society and
where all the members of the society are not co-operative societies, by ten
other members, or when there are less than ten other members, by all of
them.

3) The application shall be accompanied by a copy of the proposed bye-laws of

the society and the persons by whom or on whose behalf such application is made
shall furnish such information in regard to the society as the Registrar may
require.

8. Registration:- (1) If the Registrar is satisfied
a. that the application complies with the provisions of this  Regulation
and the rules;

b. that the objects of the proposed society are in accordance with section 4;

c. that the proposed bye-laws are not contrary to the provisions of this
Regulation and the rules; and

d. that the proposed society has reasonable chances of success, the
Registrar may register the society and its bye-laws

2) When the Registrar refuses to register a society, he shall communicate

the order of refusal together with the reason therefore, to such of the applicants
as may be prescribed.

3) The application for registration shall be disposed of by the Registrar

within a period of 3 months from the date of receipt thereof by him.

4) Where the Registrar fails to dispose-off an application for registration

within the period specified in sub-section (3), he shall be deemed to have refused
to register the society and nothing in sub sections (2) shall apply to such refusal.

9. Registration Certificate:- Where a society is registered under this Regulation
the Registrar shall issue a certificated of registration signed by him, which shall
be conclusive evidence that the co-operative society therein mentioned is duly
registered under this Regulation, unless it is proved that the registration of the
society has been cancelled.

10. Amendment of bye-laws of co-operative society:- 1) No amendment of any
bye-laws of a co-operative society shall be valid until the same has been registered
under this Regulation.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

2) Every proposal for such amendment shall be forwarded to the Registrar in

the prescribed manner and if the Registrar is satisfied that the proposed
amendment:
(i) is not contrary to this Regulation or to the rules:

(ii) does not conflict with co-operative principles; and

(iii) will promote the economic interests of the members of the
society, he may register the amendment;

Provided that not order refusing to register the amendment of bye-laws

shall be passed except after giving the co-operative society an opportunity of
making its representation.

3) The Registrar shall forward to the co-operative society a copy of the

registered amendment together with a certificate signed by him and such
certificate shall be conclusive evidence that the amendment has been duly
registered,

4) Where the Registrar refuses to register an amendment of the bye-laws of a

co-operative society, he shall communicate the order of refusal together with the
reasons therefore, to the society in the prescribed manner.

5) An amendment of the bye-laws of a registered society shall take effect from

the date, if any, specified in the amendment and where no such date is specified,
the amendment shall take effect from the date on which it is registered.

6)(i) Where the Registrar is satisfied that for the purpose of altering the area of

operation of a co-operative society or for the purpose of improving the services
rendered by it or for any other purpose specified in the rules, an amendment of
the bye-laws is necessary, he may after consulting, in the prescribed manner, the
credit agency, if any, to which the society is affiliated, by notice in writing, call
upon the society to show cause, within such time as may be specified in the
notice, why the amendment should not be made.

(ii) If within the time specified in the notice referred to in clause (i), the co
operative society fails to make the amendment, the Registrar may, after giving the
society an opportunity of making its representations, register the amendment and
issue to the society a copy of such amendment.

(iii) Any amendment of the bye-laws registered under clause (ii) shall have

the same effect as an amendment of the bye-laws registered under sub-section (2)
unless the registration is cancelled in pursuance of a decision in appeal.

11. Change of names:- (1) A co-operative society may, by an amendment of its
bye-laws, change its name but such change shall not affect any right or obligation
of the society or of any of members or past members and any legal proceedings
which might have been continued or commenced by or against the society by its
former name may be continued or commenced by its new name.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

(2)  Where a co-operative society change its name, the Registrar shall enter
the new name on the register of co-operative societies in place of the former name
and shall amend the certified or registration accordingly.

12. Change of liability :- (1) Subject to the provision of this Regulation and the
rules, a co-operative society may, by an amendment of its bye-laws, change the
form or extent of its liability.

(2) When a co-operative society has passed a resolution to change the form or
extent of its liability, it shall give notice thereof in writing to all its members and
creditors and, notwithstanding any bye-laws or contract to the contrary, any
member or creditor shall, during a period of one month from the date of service of
the notice upon him, have the option of withdrawing his shares, deposits or loans,
as the case may be.

(3) Any member or creditor who does not exercise his option within the period
specified in sub-section (2) shall be deemed to have assented to the change.

(4) An amendment of a bye-law of a co-operative society changing the form or
extent of its liability shall not be registered or shall not take effect until either

(a)  all the members and creditors have assented, or deemed to have

assented, to the change: or

(b)  all claims of the members and creditors who exercise the option

referred to in sub-section (2) within the period specified therein
have been met in full or otherwise satisfied.

13) **_Amalgamation, transfer of assets and liabilities and division of co-_**
**_operative societies:-_** (1) A co-operative society may, with the previous approval
of the Registrar and by a resolution passed by a two thirds majority of the
members present and voting at the general meeting of the society:(a)  transfer its assets and liabilities in whole or in part to any other co
operative society ;

(b)  divide itself into two or more co-operative societies;

(2) Any two or more co-operative societies may, with the previous approval of
the Registrar and by a resolution passed by a two thirds majority of the members
present and voting at a general meeting of each such society, amalgamate
themselves and form a new co-operative society.

(3) The resolution of a co-operative society under sub-section (1) or sub-section
(2) shall contain all particulars of the transfer, division or amalgamation, as the
case may be.

(4) When a co-operative society has passed any such resolution, it shall give
notice thereof in writing to all its members and creditors and notwithstanding any
bye-laws or contract to the contrary, any member or creditor shall, during the
period of one month of the date or service of the notice upon him, have the option
of withdrawing his shares, deposits or loans, as the case may be.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

(5) Any member or creditor who does not exercise his option within the period
specified in sub-section (4) shall be deemed to have assented to the proposals
contained in the resolution.

(6) A resolution passed by a co-operative society under this section shall not
take effect, until either
(a) all the members and creditors have assented, or are deemed to have

assented, to the resolution aforesaid; or

(b) all claims of the members and creditors who exercise the option referred to

in sub-section (4) within the period specified therein have been met in full
or otherwise satisfied.

(7) Where a resolution passed by a co-operative society under this section
involved the transfer of any assets and liabilities, the resolution shall, not
withstanding anything contained in any law for the time being in force, be a
sufficient conveyance to vest the assets and liabilities in the transferee without
any further assurance.

14) **Cancellation of registration certificates of co-operative societies in**
**certain cases:- (1) Where the whole of the assets and liabilities of a co-operative**
society are transferred to another co-operative society in accordance with the
provisions of section 13, the registration of the first-mentioned co-operative
society shall stand cancelled and that co-operative society shall be deemed to
have been dissolved and shall cease to exist as a corporate body.

(2) Where two or more co-operative societies are amalgamated into a new cooperative society in accordance with the provisions of section 13, the registration
of each of the amalgamating societies shall stand cancelled on the registration of
the new society and each society shall be deemed to have dissolved and shall
cease to exist as a corporate body.

(3) Where a co-operative society divides itself into two or more co-operative
societies in accordance with the provisions of section 13, the registration of that
society shall stand cancelled on the registration of the new societies and that
society shall be deemed to have been dissolved and shall cease to exist as a
corporate body.

(4) The amalgamation and splitting of co-operative societies shall not in any
manner whatsoever affect and right or obligation of the resulting co-operative
society or societies or render defective any legal proceedings by or against the cooperative society or societies, and any legal proceedings that might have been
continued or commenced by or against the co-operative society or societies, as the
case may be, before the amalgamation or splitting, may be continued or
commenced by or against the resulting co-operative society or societies.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

###### CHAPTER III

 MEMBERS OF CO-OPERATIVE SOCIETIES AND THEIR
 RIGHTS AND LIABILITIES

**15. (1)** **_Person who may become members:- No person shall be admitted as a_**
member of a co-operative society except the following, namely:
(a) an individual competent to contract under section II of the Indian

Contract Act, 1872; 9 of 1872.

(b) any other co-operative society;

(c) the Government ; and

(d) such class or classes of persons or associations of persons as may be

notified by the Chief Commissioner in this behalf.

(2) Notwithstanding anything contained in sub-section (1); the Chief
Commissioner may, having regard to the fact that the interest of any person or
class of person conflicts or is likely to conflict with the objects of any society or
class of societies, by general or special order, published in the Official Gazette,
declare that any person or class of persons engaged in or carrying on any
profession, business or employment shall be disqualified from being admitted, or
for continuing, as members or shall be eligible for membership only to a limited
extent of any specified society or class of societies, so long as such persons is or
are engaged in or carrying on that profession business or employment, as the
case may be.

16.(1) Nominal or associate members:- Notwithstanding anything contained in
section 15, a co-operative society may admit any person [including any bank
referred to in sub-clause (i) or sub-clause (ii) or sub-clause (iii) or sub-clause (v) of
clause (g) of section 2] as a nominal or associate member in accordance with its
bye-laws.

(2) A nominal or associate member shall not be entitled to any share in any
form whatsoever in the assets or profits of the co-operative society.

(3) Save as otherwise provided in this section, a nominal or associate member
shall have such privileges and rights of a member and be subject to such
liabilities of a member, as may be specified in the bye-laws of the co-operative
society.

17. Member not to exercise rights till due payment made:- No member of a

co-operative society shall exercise the rights of a member unless he has made
such payments to the society in respect of membership or has acquired such
interest in the society as may be specified in the bye-laws.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

18. **Votes of members:- Every member of a co-operative society shall have**
**only one vote in the affairs of the society:**

Provided that
(a) in the case of an equality of votes, the chairman shall have a second or
casting vote.

(b) a nominal or associate member shall not have the right of vote; and

(c) where the Government is a member of the co-operative society, such
person nominated by the Chief Commissioner on the committee shall
have one vote.

19. Manner of exercising vote:- (1) Every member of a co-operative society shall
exercise his vote in person and no member shall be permitted to vote by proxy.

(2) Notwithstanding anything contained in sub section (1), a co-operative society
which is a member of another co-operative society, may subject to the rules,
appoint one of its member to vote on its behalf in the affairs of that other society;

20. Restriction on transfer of shares or interest: - The transfer of the share or
interest of a member in the capital of a co-operative society shall be subject to
such conditions as to maximum holding as are specified in section 6.

21. Transfer of interest on death of member:- On the death of member, a cooperative society may transfer the share or interest of the deceased member to the
person so nominated in accordance with the rules made in this behalf, or if, there
is no person so nominated, to such person as may appear to the committee to be
the heir on legal representative of the deceased member, or pay to such nominee,
heir of legal representative, as the case may be, a sum representing the value of
such member’s share or interest as ascertained in accordance with the rules or
bye-laws:

Provided that
(i) in the case of a co-operative society with unlimited liability, such nominee,
heir or legal representative, as the case may be, may require payment by the
society of the value of the share or interest of the deceased member ascertained
as aforesaid;

(ii) in the case of a co-operative society with limited liability, the society shall
transfer the share or interest of the deceased member to such nominee, heir or
legal representative, as the case may be, being qualified in accordance with rules
and bye-laws for membership of the society, or on his application within one
month of the death of the deceased member to any person specified in the
application who is so qualified; and

(iii) no such transfer or payment shall be made except with the consent of the
nominee, heir or legal representative, as the case may be.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

(2) A co-operative society shall subject to the provisions of section 31 and

unless, within six months of the death of the member prevented by an order of a
competent court, pay such nominee heir or legal representative, as the case may
be, all other moneys due to the deceased member from the society.

(3) All transfers and payments made by a co-operative society in accordance

with the provisions of this section be valid and effectual against any demand
made upon the society by any other person.

22. Liability of past member and estate of deceased member:- (1) Subject to
the provisions of sub-section (2) the liability of a past member or the estate of a
deceased member of a co-operative society for the debts of the society as they
existed,
(a) in the case of a past member, on the date on which he ceased to be a

member;

(b) in the case of a deceased member, on the date of his death, shall

continue for a period of two years from such date;

Provided that the liability of the Government or of a credit agency which

has takes shares in a co-operative society shall cease on the date on which the
Government or the credit agency ceases to be a member.

(2) Where a co-operative society is ordered to be wound up under section

57, the liability of a past member who ceased to be a member or of the estate of a
deceased member who died within two year immediately preceding the date of the
order of winding up, shall continue until the entire liquidation proceedings are
completed, but such liability shall extend only to the debts of the society as they
existed on the date of cessation of membership or death, as the case may be.

###### CHAPTER IV

 MANAGEMENT OF CO-OPERATIVE SOCIETIES

23. Final authority in a co-operative society :- (1) The final authority in a cooperative society shall vest in the general body members:

Provided that where the bye-laws of a co-operative society provide for the

constitution of a smaller body consisting of delegates of members of the society
elected or selected in accordance with such bye-laws, such smaller body shall
exercise such powers of the general body as may be prescribed or as may be
specified in the bye-laws of the society.

(2) Notwithstanding anything contained in sub-section(2) of section19,

each delegate shall have only one vote in the affairs of the society.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**24. Annual general meeting :- A general meeting of a co-operative society shall**
be held once in a year for the purpose of

(a) approval of the programme of the activities of the society prepared by the

committee for the ensuing year;

(b) election, if any, of the members of the committee other than nominated

members:

(c)  consideration of the audit report and the annual report;

(d)  disposal of the net profit:

(e)  consideration and approval of the annual budget ; and

(f) consideration of any other matter which may be brought forward in

accordance with the bye-laws.

**25. Special general meeting:- (1) The committee of a co-operative society may,**
at any time, call a special general meeting of the society and shall call such
meeting within one month after the receipt of a requisition in writing from the
Registrar or from such number of members or a proportion of the total number of
members, as may be provided in the bye-laws.

(2) If a special general meeting of a co-operative society is not called in

accordance with the requisition referred to in sub-section (1), the Registrar or any
person authorized by him in this behalf shall have the power to call such meeting
and that meeting shall be deemed to be a meeting called by the committee.

26. Election and nomination of members of committees:- (1) The members of
the committee of a co-operative society shall be elected in the prescribed manner
and no person shall be so elected unless he is a shareholder of the society.

(2) Notwithstanding anything contained in sub-section (1)
(a) where the Government has subscribed to the share capital of a co
operative society, the Chief Commissioner or any person authorized by the Chief
Commissioner in this behalf shall have the right to nominate on the committee
such number of persons not exceeding three or one-third of the total number of
members thereof, whichever is less, as the Chief Commissioner or such
authorized person may determine:

(b) Where the industrial Finance Corporation established under section 3

of the industrial Finance Corporation Act, 1948(15 of 1948) or any credit agency
has provided finance to a co-operative society, the said Industrial Finance
Corporation, or such credit agency, as the case may be, shall have the right to
nominate one person on the committee,

(3) A person nominated under sub- section (2) shall hold office during the

pleasure of the Chief Commissioner or the said Industrial Finance Corporation or
such credit agency, as the case may be.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

27. **_Super-session of committee:- (1) If, in the opinion of the Registrar, the_**
committee of any co-operative society persistently makes default or it is negligent
in the performance of the duties imposed on it by this Regulation or the rules or
bye-laws, or commits any act which is prejudicial to the interest of the society or
its members, the Registrar may, after giving committee an opportunity to state its
objection, if any, by order in writing remove the committee; and

(a) order fresh election of the committee ; or

(b) appoint one or more administrators, who need not be members of the

society, to manage the affairs of the society for such period not exceeding one year
as may be specified in the order which period may at the discretion of the
Registrar, be extended from time to time, so however, that the aggregate period
does not exceed three years.

(2) The Registrar may fix such remuneration for the administrator or

administrators as he may think fit and such remuneration shall be paid out of the
funds of the co-operative society.

(3) The administrator shall, subject to the control of the Registrar and to
such instructions as he may from time to time give, have power to exercise all or
any of the functions of the committee or of any officer of the society and take all
such actions as may be required in the interest of the society.

(4) The administrator shall, at the expiry of his term of office, arrange for the

constitution of a new committee in accordance with the bye-laws of the society.

(5) Before taking any action under sub-section (1) in respect of a co-operative

society indebted to a credit agency, the Registrar shall consult the Credit agency,
to which it is indebted regarding such action.

**28. Securing possession of records etc:- (1) If:-**

(a) in the opinion of the Registrar, the records (including registers and books

of account) of a co-operative society are likely to be tampered with or destroyed or
the funds or other property of a co-operative society are likely to be
misappropriated or misapplied;

(b) the committee of a co-operative society is reconstituted at a general

meeting of the society ; or

(c) the committee of a co-operative society is removed by the Registrar

under section 27; or

(d) a co-operative society is ordered to be wound up under section 57 and the
outgoing members of the committee thereof refuse to hand over charge of the
records and property of the society to those having, or entitled to receive, such
charge,

the Registrar may apply to the Magistrate within whose jurisdiction the society
functions for securing such records and property of the society.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

(2) On receipt of an application under sub-section (1), the Magistrate may, by a
warrant, authorize any police officer, not below the rank of a sub-inspector to
enter and search any place where such records and property are kept or are
believed to be kept and to seize such records and property, and the records and
property so seized shall be handed over to the new committee or administrator of
the society or the liquidator, as the case may be.

**29.** **_Acts of a co-operative societies not to be invalidated by certain_**
**_defects:- No act of a co-operative society or of any committee or any officer of the_**
society shall be deemed to be invalid by reason only of the existence of any defect
in procedure or in the constitution of the society or of the committee or in the
appointment or election of an officer or on the ground that such officer was
disqualified for his office.

###### CHAPTER V

 PRIVILEGES OF CO-OPERATIVE SOCIETIES

30. **_Co-operative societies to be bodies corporate:-_** The registration of co-operative
society shall render it a body corporate by the name under which it is registered
having perpetual succession and a common seal, and with power to hold
property, enter into contract, institute and defend suits and other legal
proceedings and to do all things necessary for the purposes for which it is
constituted.

31. First charge of co-operative society on certain assets :
(1) Notwithstanding anything contained in any law for the time being in force,

but subject to any prior claim of the Government in respect of land revenue or
any money recoverable as land revenue, any debt or outstanding demand due to a
co-operative society by any member or past member or deceased member shall be
a first charge upon the crops and other agriculture produce, cattle, fodder for
cattle, agricultural or industrial implements or machinery, raw materials for
manufacture and any finished products manufactured from such raw material
belonging to such member, past member or forming part of the estate of the
deceased member, as the case may be.

(2) No person shall transfer any property which is subject to a charge under

sub-section (1) except with the previous permission in writing of the co-operative
society which holds the charge.

(3) Notwithstanding anything contained in any law for the time being in force,

any transfer of property made in contravention of the provisions of sub-section (2)
shall be void.

(4) The charge created under sub-section(1) shall be available as against any

claim of the Government arising from a loan granted under the land Improvement
Loans Act, 1883, (19 of 1883)or the agriculturists loans act 1884, (12 of 1884)
after the grant of the loan by the co-operative society.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

32. **_Charge on immovable property of members borrowing loans from_**
**_certain societies:-  Notwithstanding anything contained in this Regulation or in_**
any other law for the time being in force
(i) any person who makes an application to a society of which he is a member

for a loan shall, if he own any land or has interest in any land as a tenant, make a
declaration in the prescribed form which shall state that the applicant thereby
creates a charge on such land or interest specified in the declaration for the
payment of the amount of the loan which the society may make to the member in
pursuance of the application and for all future advances, if any, required by him
which the society may make to him as such member subject to such maximum as
may be determined by the society together with interest on such amount of the
loan and advances;

(ii) any person who has borrowed a loan from a society of which he is a

member before the commencement of this Regulation, and who owns any land or
has any interest in any land as a tenant shall, in a case where such loans
subsists immediately before such commencement, make a declaration in the form
and to the effect referred to clause (i);

(iii) a declaration made under clause (i) or clause 9ii) may be varied at any time

by a member with the consent of the society in favour of which a charge referred
to in clause (i) is created;

(iv) no member shall alienate the whole or any part of the land or interest

therein, specified in the declaration made under clause (i) or clause (ii) until the
whole amount borrowed by the member together with interest thereon is paid in
full;

Provided that for the purpose of paying in full the whole amount borrowed

by the member together with interest thereon to the society, the member may,
with the previous permission in writing of the society and subject to such
conditions as the society may impose, alienate the whole or any part of such land
or interest therein;

Provided further that the standing crops on any such land may be

alienated with the previous permission of the society;

(v) any alienation made in contravention of the provision of clause (iv) shall be

void;

(vi) subject to the prior claims of the Government in respect of land revenue or

any money recoverable as land revenue, there shall be a first charge in favour of
the society on the land or interest specified in the declaration made under clause
(i) or clause (ii) for and to the extent of the dues owing by him on account of the
loan and address;

(vii) the record of rights shall also include the particulars of every charge on

land or interest created under a declaration under clause (i) or clause(ii).

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

_Explanation:-_ For the purpose of this section, “society” means any co
operative society or class of co-operative societies specified in this behalf by the
Chief Commissioner by a general or special order.

33. **_Charge and set-off in respect of share or contribution or interest of the_**
**_members:- A co-operative society shall have a charge on the share or contribution_**
or interest in the capital and on the deposits of a member or past member or
deceased member and on any dividend, bonus or profits payable to a member or
past member or the estate of a deceased member in respect of any debt due from
such member or past member or the estate of such deceased member to the
society, and may set-off any sum credited or payable to a member or past member
or the estate of a deceased member in or towards payment of any such debt.

34. Share or contribution or interest not liable to attachment:
(1) Subject to the provisions of section 33, the share or contribution or interest

of a member or past member or deceased member in the capital of a co-operative
society shall not be liable to attachment or sale under any decree or order of any
court in respect of any debt or liability incurred by such member, and an official
assignee or a receiver under any law relating to insolvency shall not be entitled to
or have any claim on such share or contribution or interest.

(2) The reserve fund, or the bad debt reserves, or the provident fund of the

employees, of a co-operative society invested by such society in accordance with
the provision of this Regulation and the rules shall not be liable to attachment
under any decree or order of a court in respect of any debt or liability incurred by
the society .

35. Register of members:- Any register or list of members or shares kept by any
co-operative society shall be _prima facie_ evidence of any of the following
particulars entered therein, namely:

(a) the date on which any person entered in such register or list became a

member;

(b) the date on which any such person ceased to be a member.

36. **_Admissibility of copy of entry as evidence :- A copy of any entry in a book_**
of a co-operative society regularly kept in the course of its business, shall, if
certified in such manner as may be prescribed, be received in any suit or legal
proceedings as prima facie evidence of the existence of such entry and shall be
admitted as evidence of the matters, transactions and accounts therein recorded
in every case where, and to the same extent as, the original entry itself is
admissible.

(2) No officer of a co-operative society and no officer in whose office

the books of co-operative society are deposited after liquidation shall,
in any legal proceedings to which the society or the liquidator is
not a party, be compelled to produce any of the society’s books
or documents the contents of  which can be proved under this section, or

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

to appear as witness to prove the matter, transactions and accounts therein
recorded, except under an order of a court or an arbitrator made for special
cause.

[

37. **_Exemption from compulsory registration of instruments:-_** Nothing in
clauses (b) and (c) of sub-section 17 of the Registration Act, 1908 (16 of 1908)
shall apply to –

(1) any instruments relating to shares in a co-operative society notwithstanding
that the assets of the society consist in whole or in part of immovable property; or

(2) any debenture issued by any such society and not creating declaring,
assigning, limiting or extinguishing any right, title or interest to or in immovable
property to except in so far as it entitles the holder thereof to the security afforded
by a registered instrument whereby the society has mortgaged, conveyed, or
otherwise transferred the whole or part of its immovable property or any interest
therein to trustees upon trust for the benefit of the holders or such debentures; or

(3) an endorsement upon or transfer of any debentures issued by any such
society.

38. Exemption from certain taxes, fees and duties:- If the Chief Commissioner
is of opinion that it is necessary in the public interest so to do, he may, by
notification in the Official Gazette:

(a) remit in respect of any class of co-operative societies any fee payable under

any law for the time being in force relating to the registration of documents or
court-fees;

(b) exempt any class of co-operative societies from payment of –

(i) land revenue;

(ii) taxes on agricultural income;

(iii) taxes on sale or purchase of goods; or

(iv) taxes on professions, trades, callings and employments,

**39.** **_Deduction from salary to meet co-operative society’s claim in certain_**
**_cases:- (1) Notwithstanding anything contained in any law for the time being in_**
force a member of co-operative society may execute an agreement in such form
as may be prescribed in favour of the society providing that his employer or the
officer disbursing his salary or wages shall be competent to deduct every month
from the salary or wages payable to him, such amount as may be specified in the
agreement but not exceeding one-third of the salary or wages and to pay the
amount so deducted to the society in satisfaction of any debt or other demand
owing by the member to the society.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

[

(2) On the execution of such agreement, the employer or the officer disbursing
the salary or wages of the members shall, if so required by the co-operative
society by a requisition in writing and so long as the society does not intimate
that the whole of such debt or other demand has been paid, make the deduction
in accordance with the agreement and pay and the pay the amount so deducted
to the society within fourteen days from the date of the deduction.

(3) If after the receipt of requisition made under sub-section (2), the employer or
the officer disbursing the salary or wages of the member at any time fails to
deduct the amount specified in the requisition or makes default in remitting the
amount deducted to the society, the society shall be entitled to recover any such
amount from such employer or officer, as the case may be, as arrears of land
revenue and the amount due from such employer or official shall rank in priority
in respect of the liability of such employer or officer equal to that of the salary or
wages in arrears.

(4) The employer or the officer disbursing the salary or wages shall maintain
such registers as may be prescribed by the Chief Commissioner or the Registrar
from the time to time.

(5) When a requisition in writing from any co-operative society registered or
deemed to be registered in any State in respect of a member of that society who
for the time being is employed in the Union Territory, is received by his employer,
the requisition shall be acted upon as if it has been made by a co-operative
society in the Union Territory.

40. **_Other forms of State aid to co-operative societies:-_** Notwithstanding
anything contained in any law for the time being in force, the Government may:
(a)  subscribe to the share capital of a co-operative society;

(b)  give loans or make advances to a co-operative society;

(c) guarantee the repayment of principal and payment of interest on

debentures issued by a co-operative society;

(d) guarantee the repayment of share capital of a co-operative society and

dividends thereon at such rates as may be specified by the Government;

(e) guarantee the repayment of principal and payment of interest on loans

and advances to a co-operative society; and

(f)  give financial assistant in any other form, including grants and subsidies,

to a co-operative society.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

###### CHAPTER VI
 PROPERTIES AND FUNDS OF CO-OPERATIVE SOCIETIES

41. Funds not to be divided by way of profit :- No part of the funds of a cooperative society shall be divided by way of bonus or dividend or otherwise among
its members :

Provided that payment may be made to a member for the work done by him

as secretary or as clerk on such scale as may be prescribed by the bye-laws :

Provided further that after at least one-fourth of the net profits in any year

have been carried to a reserve fund, payments from the remainder of such profits
and from any profits of past years available for distribution may be made –

(a) as a bonus to a member for any specific service rendered by him to the co
operative society including work done as secretary or as clerk ; and

(b) among the members to such extent and under such conditions as may be

prescribed or as may be specified in the bye-laws :

Provided also that no dividend shall be paid on the paid-up share capital of

members at a rate exceeding twelve percent per annum.

42. **_Contribution to charitable purpose :-_** Any co-operative society may, with
the sanction of the Registrar, after one-fourth of the net profits in any year has
been carried to a reserve fund, contribute an amount not exceeding five percent of
the remaining net profits to any purpose connected with the development of cooperative movement or charitable purpose as defined in section 20 of the
Charitable Endowments Act, 1890. (6 of 1890).

43. Contribution to Co-operative Education Fund :- A co-operative society shall
out of its net profits in any year credit such portion of the profits not exceeding
five per cent, as may be prescribed to the Co-operative Education Fund
constituted under the rules.

44. **_Investments of funds_** _:- (1) A co-operative society may invest or deposit its_
funds 
(a) in the post office savings bank; or
(b) in any of the securities specified in section 20 of the Indian Trusts Act,

1882 (2 of 1882); or

(c) in the shares or securities of any other co-operative society; or
(d) in any banking company as defined in section 5 of the Banking Regulation

Act, 1949 (10 of 1949), approved in this behalf by the Registrar; or

(e) in any corresponding new bank constituted under section 3 of the

Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
(5 of 1970); or

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

(f) in any State Bank of India constituted under section 3 of the State Bank of

India Act, 1955 (23 of 1955) or in any subsidiary banks as defined in section 2 of
the State Bank of India (Subsidiary Banks) Act 1959 (38 of 1959).

(2) Every investment or deposit made by a co-operative society of its funds before
the commencement of this Regulation which would have been valid if this
Regulation had been in force at the time or times such investment or deposit was
made, shall be deemed to have been made under this Regulation.

45. Restrictions on loans :- (1) A co-operative society shall not make a loan to
any person other than a member:

Provided that with the general or special sanction of the Registrar, a co
operative society may make loans to another co-operative society.

(2) Notwithstanding anything contained in sub-section (1), a co-operative

society may make a loan to a depositor on the security of his deposit.

46. **_Restrictions on borrowing_** :- (1) A co-operative society shall receive
deposits and loans only to such extent and under such conditions as may be
prescribed or as may be specified in the bye-laws.

47. Restrictions on other transactions with non-members :- Save as otherwise
provided in sections 45 and 46, every transaction of a co-operative society with
any person, other than a member, shall be subject to such prohibitions and
restrictions, if any, as may be prescribed.

###### CHAPTER VII
 AUDIT, INQUIRY, INSPECTION AND SURCHARGE

_48._ **_Audit_** :- (1) The Registrar shall audit or cause to be audited by a person
authorised by him by general or special order in writing in this behalf, the
accounts or every co-operative society at-least once in each year.

(2) The audit under sub-section (1) shall include an examination of overdue

debts, if any, the verification of the cash balance and securities, and a valuation
of the assets and liabilities of the co-operative society.

(3) The person auditing the accounts of a co-operative society shall have free

access to the books, accounts, papers, vouchers, stock and other property of the
society and shall be allowed to verify its cash balance and securities.

(4) The directors, members of the staff, administrators and other officers of

every co-operative society shall furnish to the person auditing its accounts all
such information as to its transactions and working as such person may require-
**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

(5) The Registrar or the person authorised by him under sub-section (1) to

audit the accounts of a co-operative society shall have power, where necessary –

(a) to summon at the time of his audit any officer, agent, servant or member of

the society, past or present, who, he has reason to believe, can give
valuable information in regard to transactions of the society or the
management of its affairs ; and

(b) to require the production of any book or document relating to the affairs

of, or any cash or securities belonging to, the society by any officer, agent,
servant or member of the society in possession of such books, documents,
cash or securities and in the event of serious irregularities discovered
during audit, to take them into custody.

(6) If at the time of audit the accounts of a society are not complete, the

Registrar or the person authorised by him under sub-section (1) to audit, may
cause the accounts to be written up at the expense of the society.

(7) Audit fee, if any, due from any co-operative society shall be recoverable in

the same manner as is provided in section 67.

49. **_Inspection of co-operative societies_** :- (1) The Registrar, or any person
authorised by the Registrar by general or special order in this behalf, may inspect
a co-operative society.

(2) For the purpose of inspection, the Registrar or the person authorised to

make the inspection shall at all times have access to all books, accounts, papers,
vouchers, securities, stock and other property of the co-operative society and may
in the event of serious irregularities discovered during the inspection take them
into custody and shall have power to verify the cash balance of the society and
subject to the general or special order of the Registrar to call a meeting of the
committee and a general meeting.

(3) Every officer or member of a co-operative society shall furnish such

information with regard to the working of the society as the Registrar or the
person authorised to make the inspection may require.

50. **_Inquiry by Registrar_** :- (1) Registrar may, of his own motion or on the
application of a majority of the members of the committee or of not less than onethird of the members, hold an inquiry or direct some person authorised by him by
order in writing in this behalf to hold an inquiry into the constitution, working
and financial condition of a co-operative society.

(2) The Registrar or the person authorised by him under sub-section (1) shall

have the following powers, namely

(a) he shall at all reasonable times have free access to the books, documents,

securities, accounts, cash and other properties belonging to or in the
custody of the society and may summon any person in possession

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

or responsible for the custody of any such books, accounts, documents,
securities, cash or other properties to produce the same at the
headquarters of the society or any branch thereof;

(b) he may, notwithstanding any rule or bye-law specifying the period of

notice for a General meeting of the society, require the officers of the
society to call a general meeting at such time and place at the
headquarters of the society to consider such matters, as may be directed
by him; and where the officers of the society refuse or fail to call such a
meeting he shall have power to call it himself;

(c) he may summon any person who is reasonably believed by him to have

any knowledge of the affairs of the society to appear before him at any
place at the headquarters of the society or any branch thereof and may
examine such person on oath.

(3) Any meeting called under clause(b) of sub-section (2) shall have all the

powers of a general meeting called under the bye-laws of the society and its
proceedings shall be regulated by such bye-laws.

(4) The Registrar shall communicate the brief summary of the report of the

inquiry to the society, the credit agency, if any, to which the society is affiliated,
and to the persons or authority, if any, at whose instance the inquiry is made.

51. **_Inspection of books of indebted societies_** :- (1) The Registrar shall, on the
application of a creditor of a co-operative society, inspect or direct some person
authorised by him by order in writing in this behalf to inspect the books of the
society.

Provided that no such inspection shall be made unless the applicant:
(a) satisfies the Registrar that the debt is a sum then due, and that he

has demanded payment thereof and has not received satisfaction
within a reasonable time; and

(b) deposits with the Registrar such sum as security for the costs of the

proposed inspection as the Registrar my require.

(2) The Registrar shall communicate the result of any such inspection to the

creditor.

52. **_Costs of inquiry and inspection :-Where an inquiry is held under_**
section 50, or an inspection is made under section 51, the Registrar may
apportion the costs, or such part of the costs as he may think fit between the
society, the members or creditor demanding an inquiry or inspection, and the
officers and the members or past members of the society.

Provided that –

(a) no order of appointment of the costs shall be made under this section
unless the society or the person liable to pay the costs there-under has
had a reasonable opportunity of being heard;

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

(b) the Registrar shall state in writing under his own hand the grounds on
which the costs are apportioned.

_53. Recovery of costs_ :- Any sum awarded by way of costs under section 52f may
be recovered, on application to a Magistrate having jurisdiction in the place where
the person, from whom the money is claimable, actually and voluntarily resides or
carries on business, and such Magistrate shall recover the same as if it were a
fine imposed by himself.

_54._ **_Surcharge_** :- (1) If in the course of an audit, inquiry, inspection or the
winding up of a co-operative society, it is found that any person, who is or was
entrusted with the organisation or management of such society or who is or has
at any time been an officer or an employee of the society, has made any payment
contrary to this Regulation, the rules or the bye-laws or has caused any deficiency
in the assets of the society by breach of trust or wilful negligence or has
misappropriated or fraudulently retained any money or other property belonging
to such society, the Registrar may, of his own motion or on the application of the
committee, liquidator or any creditor, inquire himself or direct any person
authorised by him, by an order in writing in this behalf, to inquire into the
conduct of such person:

Provided that no such inquiry shall be held after the expiry of six years from

the date of any act or omission referred to in this sub-section.

(2)Where an inquiry is made under sub-section (1) the Registrar may after

giving the person concerned an opportunity of being heard, make an order
requiring him to repay or restore the money or property or any part thereof, with
interest at such rate, or to pay contribution and costs or compensation to such
extent, as the Registrar may consider just and equitable.

###### CHAPTER VIII

 SETTLEMENT OF DISPUTES

**_55. Dispute which may be referred to arbitration_** :- (1) Not withstanding
anything contained in any law for the time being in force, if any dispute touching
the constitution, management or the business of a co-operative society arises
(a) among members, past members and persons claiming through members,

past members and deceased members, or

(b) between a member, past members or person claiming through a member,

past member or deceased member and the society, its committee or any
officer, agent or employee of the society or liquidator, past or present, or

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
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-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

(c) between the society or its committee and any past committee, any

officer, agent or employee, or any past officer, past agent or past
employee or the nominee, heirs or legal representatives of any deceased
officer, deceased agent, or deceased employee of the society, or

(d) between the society and any other co-operative society, between a

society and liquidator of another society or between the liquidator of
one society and the liquidator of another society,

such dispute shall be referred to the Registrar for decision and no court shall
have jurisdiction to entertain any suit or other proceedings in respect of such
dispute.

(2) For the purposes of the sub-section (1), the following shall be deemed to

include disputes touching the constitution, management or the business of a cooperative society, namely:
(a) a claim by the society for any debt or demand due to it from a member,

past member, or the nominee, heir or legal representative of a deceased
member, whether such debt or demand be admitted or not;

(b) a claim by a surety against the principal debtor where the society has

recovered from the surety any amount in respect of any debt or demand
due to it from the principal debtor as a result of the default of the
principal debtor, whether such debt or demand is admitted or not;

(c) any dispute arising in connection with the election of any officer of the

society.

(3) If any question arises whether a dispute referred to the Registrar under

this section is or is not a dispute touching the constitution, management or
business of a co-operative society, the decision thereon of the Registrar shall be
final and shall not be called in question in any court.

56. **_Reference of disputes to arbitration_** :- (1) The Registrar may, on receipt of
the reference of dispute under section 55
(a)  decide the dispute himself, or
(b)  transfer it for disposal to any person who has been invested by the

Chief Commissioner with powers in that behalf, or

(c) subject to such rules as may be prescribed, refer it for disposal to an

arbitrator or arbitrators appointed by the Registrar.

(2) Subject to such rules as may be prescribed, the Registrar may withdraw

any reference transferred under clause(b) of sub-section(1) or referred under
clause (c) of that sub-section and decide it himself.

(3) The Registrar may, of his own motion or on the application of a party to a

reference, revise any decision thereon by the person to whom such reference was
transferred or by the arbitrator or arbitration to whom it was referred;

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

Provided that no order prejudicial to any person shall be made under this

sub-section unless that person has been given a reasonable opportunity of being
heard.

(4) (a) Any decision of the Registrar under clause (a) of sub-section (1) or under

sub-section (3) shall be final and shall not be called in question in any
court.

(b) Any decision that may be made by the person to whom a reference is

transferred or by the arbitrator or arbitration to whom it is referred, shall,
save as otherwise provided in sub-section (3), be final and shall not be called
in question in any court.

###### CHAPTER IX
 WINDING UP OF CO-OPERATIVE SOCIETIES

57. **_Winding up of co-operative societies :- (1) If the Registrar, after an inquiry_**
held under section 50, or an inspection made under section 51, or on receipt of
an application made by not less than three-fourth of the members of a cooperative society, is of opinion that the society ought to be wound up, he may
after giving the society an opportunity of making its representation, by order,
direct it to be wound up.

(2) The Registrar may of his own motion make an order directing the winding

up of a co-operative society
(a) where it is a condition of the registration of a society that the society shall

consist of at least ten members and the number of members has been
reduced to less than ten; or

(b) where the society has not commenced working or has ceased to function in

accordance with co-operative principles.

(3) The Registrar may cancel an order for the winding up of a co-operative

society, at any time, in any case where, in his opinion, the society should
continue to exist.

(4) A copy of such order shall be communicated by registered post to the

society and to the credit agency, if any, of which the society is a member,

(5) Where an appeal against an order for the winding up of a co-operative

society is not presented within the period specified under sub-section (2) of
section 68, the order shall take effect on the expiry of that period.

(6) Where an appeal against an order for the winding up of a co-operative

society is presented within the period specified under sub-section (2) of
section 68, the order shall not take effect until it is confirmed by the Chief
Commissioner and such confirmation is communicated to the society.

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

_58._ **_Liquidator :- (1) Where the Registrar has made an order under section 57_**
for the winding up of a co-operative society, he may appoint a liquidator for the
purpose and fix his remuneration.

(2) Notwithstanding anything contained in sub-section(5) or sub-section (6) of
section 57 a liquidator shall, on appointment, take into his (custody) or under his
control all the property, effects and actionable claims to which the co-operative
society is or appears to be entitled and shall take all such steps as he may deem
necessary or expedient, to prevent loss or deterioration of, or damage to, such
property, effects and claims and he may carry on the business of the society so far
as may be necessary with the previous approval of the Registrar.

(3) Where an appeal is preferred under section 58 against an order for the

winding up of a co-operative society made under section 57 the liquidator shall
continue to have custody or control of the property, effects and actionable claims
in sub-section (2) and have authority to take the steps referred to in that subsection until the disposal of the appeal.

(4) Where an order for the winding up of a co-operative society is set aside in

appeal, the property, effects and actionable claims of the society shall re-vest in
the society.

(5) The Registrar may, for reasons to be recorded in writing, remove a liquidator

appointed under this section and appoint another liquidator in his place.

59. **_Powers of liquidator :- (1) Subject to any rules made in this behalf, the_**
whole of the assets of a co-operative society, in respect of which an order for
winding up has been made, shall vest in the liquidator appointed under
section 58 from the date on which the order takes effect and the liquidator shall
have power to realise such assets by sale or otherwise,

(2) Such liquidator shall also have power, subject to the control of the

Registrar:
(a) to institute and defend suits and other legal proceedings on behalf of the

co-operative society by the name of his office;

(b) to determine, from time to time, the contribution (including debts due and

costs of liquidation) to be made or remaining to be made by the members
or past members or by the estate or nominees, heirs or legal
representatives of deceased members or by any officers or former officers,
to the assets of the co-operative society ;

(c) to investigate all claims against the co-operative society and subject to the

provisions of this Regulation to decide questions of priority arising between
claimants ;

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

(d) to pay claims against the co-operative society including interest up to the

date of winding up according to their respective priorities, if any, in full or
rateable, as the assets of the society may permit; the surplus, if any,
remaining after payment of the claims being applied in payment of interest
from the date of such order of winding up at a rate fixed by him but not
exceeding the contract rate in any case;

(e) to determine by what persons and in what proportions the costs of

liquidation are to be borne;

(f) to determine whether any person is a member, past member or nominee of

a deceased member ;

(g) to give such directions in regard to the collection and distribution of the

assets of the co-operative society as may appear to him to be necessary for
the winding up of its affairs ;

(h) to carry on the business of the co-operative society so far as may be

necessary for its beneficial winding up ;

(i) to make any compromise or arrangement with creditors or persons claiming

to be creditors or having or alleging to have any claim, present or future,
whereby the co-operative society may be rendered liable;

(j) to make any compromise or arrangements with any person between whom

and the co-operative society there exists any dispute and to refer any such
dispute to arbitration ;

(k) after consulting the members of the co-operative society, to dispose of the

surplus, if any, remaining after paying the claims against the society, in
such manners as may be prescribed ; and

(l) to compromise all calls or liabilities to calls and debts and liabilities capable

of resulting in debts, and all claims, present or future, certain or
contingent, subsisting or alleged to subsist between the co-operative
society and a contributory or alleged contributory or other debtor or person
apprehending liability to the co-operative society and all questions in any
way relating to or affecting the assets or the winding up of a co-operative
society on such terms as may be agreed and take any security of the
discharge of any such call, liability, debt or claims and give a completed
discharge in respect thereof.

(3) When the affairs of a co-operative society have been wound up, the

liquidator shall make a report to the Registrar and deposit the records of the
society in such place as the Registrar may direct.

_60._ **_Priority of contributions assessed by liquidator_** :- Notwithstanding
anything contained in any law relating to insolvency, the contribution assessed by
a liquidator shall rank next to debts due to the Government or to any local
authority in order of priority in insolvency proceedings.

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

_61. Power of Registrar to cancel registration of a co-operative society :- (1)_
The Registrar may after considering the report of the liquidator made to him
under sub-section (3) of section 59 order the registration of the co-operative
society to be cancelled.

(2) An order passed under sub-section (1) shall be communicated by registered

post to the president of the society and to the credit agency, if any, of which the
society was a member.

###### * CHAPTER IX A

 SPECIAL PROVISIONS FOR INSURED CO-OPERATIVE BANKS

*** 61A. Notwithstanding anything contained in this Regulations, in the case**

**of an insured co-operative bank:-**

(i) an order for the winding-up, or an order sanctioning a scheme of

compromise or arrangement or of amalgamation or reconstruction (including
division or reorganisation) of the bank may be only with the previous sanction in
writing of the Reserve Bank of India.

(ii) an order for the winding-up of the bank shall be made by the Registrar if so

required by the Reserve Bank of India in the circumstances referred to in section
13D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961.

(iii) if so required by the Reserve Bank of India in the public interest or for

preventing the affairs of the bank conducted in a manner detrimental to the
interests of the depositors or for securing the proper management of the bank, an
order shall be made for supersession of the committee of management or other
managing body (by whatever name called) of the bank and the appointment of an
administrator there for such period or periods, not exceeding five years in the
aggregate, as may from time to time be specified by the Reserve Bank of India,
and the administrator so appointed shall, after the expiry of his term of office,
continue in office until the day immediately preceding the date of the first meeting
of the new committee.

(iv) no appeal, revision or review shall lie or be permissible against an order

referred to in clause (i), (ii) or (iii) made with the previous sanction in writing or on
the requisition of the Reserve Bank of India and such order or sanction shall not
be liable to be called in question in any manner.

(v) the liquidator or the insured co-operative bank or transferee bank, as the

case may be, shall be under an obligation to repay the amount to the Deposit
Insurance and Credit Guarantee Corporation established under the Deposit
Insurance and Credit Guarantee Corporation Act, 1961 in the circumstances, to
the extent and in the manner referred to in section 21 of the Act.

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

Explanation:- For the purpose of this section:
(i) “Co-operative bank” means a bank as has been defined in the Deposit

Insurance and Credit Guarantee Corporation Act, 1961.

(ii) “insured Co-operative bank” means a co-operative society which is an

insured bank under the provision of the Deposit Insurance and Credit Guarantee
Corporation Act, 1961.

(iii) “transferee bank” in relation to an insured co-operative bank means a co
operative bank:
(a) with which such insured co-operative bank is amalgamated; or

(b) to which the assets and liabilities of such insured co-operative bank are

transferred; or

(c) into which such insured co-operative bank is divided or converted under

the provision of section 13 of the Regulation;

(iv) “Reserve Bank” means the Reserve Bank of India constituted under the

Reserve Bank of India Act, 1934;

###### CHAPTER X

 EXECUTION OF AWARDS DECREES, ORDERS AND DECISIONS

62. **_Enforcement of charge_** :- Notwithstanding anything contained in Chapter
VIII or any other law for the time being in force but without prejudice to any other
mode of recovery provided in this Regulation, the Registrar or any person
subordinate to him empowered by the Registrar in this behalf may, debt on the
application of a co-operative society, make an order directing the payment of any
debt or outstanding demand due to the society by any member or past or
deceased member, by sale of the property or any interest therein, which is subject
to a charge under section 31;

Provided that no order shall be made under this section unless the

member, past member or the nominee, heir or legal representative of the deceased
member, has been served with a notice in the prescribed manner and has failed to
pay the debt or outstanding demand within seven days from the date of such
notice.

*** (Chapter IXA - *61A) inserted in the Andaman and Nicobar Islands Co-**
**operative Societies Regulation, 1973 vide Gazette of India, Part-II,**
**Section-I of Ministry of Law and Justice (Legislative Department) New**
**Delhi dated 12[th] March, 1998, Andaman and Nicobar Islands Co-operative**
**Societies (Amendment) Regulation, 1998(No.1 of 1998).**

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

63. **_Execution of orders, etc_** :- Every decision, award or order made under
section 54, section 56, section 62 or section 68 shall, if not carried out :
(a) on a certificate signed by the Registrar, or any person authorised by him in

this behalf, be deemed to be a decree of a civil court and shall be executed
in the same manner as a decree of such court ; or

(b) be executed, by the Registrar or any other person subordinate to him

empowered by the Registrar in this behalf, by attachment and sale or by
sale without attachment of any property of the person or co-operative
society against whom the decision, award or order has been made.

64. **_Execution of orders of liquidator :- Every order made by the liquidator_**
under section 59 shall be executed according to the law for the time being in force
for the recovery of arrears of land revenue.

65. **_Attachment of property before award or order_** :- If the Registrar is
satisfied on an application, report or enquiry that any person with intent to delay
or obstruct the enforcement of any order, decision or award that may be made
against him under the provisions of this Regulation –

(a) is about to dispose of the whole or any part of the property; or

(b) is about to remove the whole or any part of the property from the

jurisdiction of the Registrar, the arbitrator or the liquidator, as the case
may be,

he may, unless adequate security is furnished, by order, direct attachment of the
said property ; and such attachment shall have the same effect as if made by a
competent civil court.

_66._ **_Registrar or person empowered by him to be civil court for certain_**
**_purposes_** :- The Registrar or any person empowered by him in this behalf shall be
deemed, when exercising any powers under this Regulation for the recovery of any
amount by attachment and sale or by sale without attachment of any property, or
when passing any orders on any application made to him for such recovery or for
taking a step-in-aid of such recovery, to be a civil court for the purposes of article
136 of the First Schedule to the Limitation Act, 1963 (36 of 1963).

67. Recovery of sums due to Government :- (1) All sums due from a co-operative
society, or from an officer or member or past member of a co-operative society as
such, to the Government, including any costs awarded to the Government under
any provisions of this Regulation, may, on a certificate issued by the Registrar in
this behalf, be recovered in the same manner as arrears of land revenue.

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

(2) Sums due from a co-operative society to the Government and recoverable

under sub-section (1) may be recovered firstly, from the property of the society ;
secondly, in the case of a society the liability of the members of which is limited,
from the members, past members or the estates of deceased members subject to
the limit of their liability ; and thirdly in the case of other societies, from the
members, past members or the estates of the deceased members.

Provided that the liability of past members and the estates of deceased

members shall in all cases be subject to the provisions of section 22.

###### CHAPTER XI

 APPEALS AND REVISION

68. Appeals :- An appeal shall lie under this section against –

(a) an order of the Registrar made under sub-section (2) of section 8 refusing

to registrar a co-operative society ;

(b) an order of the Registrar made under sub-section (4) of section 10 refusing

to register an amendment of the bye-laws of a co-operative society or under
sub-section (6) (ii) of that section compulsorily registering an amendment
to such bye-laws ;

(c) a decision of a co-operative society, other than a producers society, refusing

to admit any person as a member of the society, who is otherwise duly
qualified for membership under the bye-laws of the society ;

(d) a decision of a co-operative society expelling any of its members ;

(e) an order made by the Registrar under section 27 removing the committee of

a co-operative society ;

(f)  an order made by the Registrar under section 52 apportioning the costs of

an inquiry held under section 50 or an inspection made under section 51 ;

(g) an order of surcharge made by the Registrar under section 54 ;

(h) a decision or award made under section 56 ;

(i)  an order made by the Registrar under section 57 directing the winding up

of a co-operative society ;

(j) an order made by a liquidator of a co-operative society in exercise of the

powers conferred on him by section 59 ;

(k) an order made under section 65 ;

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

(2) An appeal against any decision, award or order under sub- section (1) shall be

made within sixty days from the date of the decision, award or order –

(a) if the decision, award or order was made by the Registrar, to the Chief

Commissioner ; or

(b) if the decision, award or order was made by any other person, to the

Registrar ;

Provided that where the Registrar is deemed to have refused registration of a society

under sub-section(4) of section 8 and an appeal in intended to be filed against such
refusal, such appeal may be filed within sixty days from the expiry of the period of three
months referred to in sub-section (3) of that section :

Provided further that the appellate authority may admit an appeal after the said

period of sixty days if it is satisfied that the appellant had sufficient cause for not
preferring the appeal within the said period.

(3) No appeal shall be lie under the section from any decision or order made by the

Registrar in appeal.

(4) In disposing of an appeal under this section, the appellate authority may, after

giving the parties an opportunity of making their representation, pass such order
thereon as that authority may deem fit.

(5) The decision or order of the appellate authority on appeal shall be final.

69. Revision :- The Chief Commissioner may, either suo-moto or on an application, call
for and examine the records of any proceedings in which no appeal lies to the Chief
Commissioner under section 63 for the purpose of satisfying himself as to the legality or
propriety of any decision, award or order made and if in any case it shall appear to the
Chief Commissioner that any such decision, award or order should be modified,
annulled or revised, the Chief Commissioner may, after giving the party to be affected
thereby an opportunity of being heard, pass such order thereon as he may deem fit.

_70._ **_Inter-locutory orders_** :- Where an appeal is made under section 68 or where the
Chief Commissioner calls for the records of a case under section 69, the appellate
authority or the Chief Commissioner, as the case may be, may, in order to prevent the
ends of justice being defeated, make such inter-locutory orders, including an order of
stay, pending the decision of the appeal or revision as such authority or the Chief
Commissioner may deem fit.

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

###### CHAPTER XII

 OFFENCES AND PENALTIES

**_71. Punishment for certain offences :- (1) It shall be an offence under_**
this Regulation if –

(a) the committee, an officer, employee or any member of a co-operative

society wilfully makes a false return or furnishes false information or
disobeys a lawful order or direction issued under the provisions of this
Regulation ;

(b) any person wilfully or without any reasonable cause disobeys any

summon, requisition or other lawful order or direction issued under this
Regulation ;

(c) any person wilfully withholds or fails to furnish an information lawfully

required from him by a person authorised in this behalf under the
provisions of this Regulation ;

(d) any person acts in contravention of section 31 or section 32 ;

(e) the committee or a member thereof wilfully fails to produce books,

accounts, documents, records, securities, cash and other properties
belonging to or in the custody of a co-operative society.

(2) An offence under sub-section (1) shall be punishable with imprisonment

for a term which may extend to six months or with fine which may extend to five
hundred rupees or with both.

72. Prohibition of use of the word “co-operative” or its equivalent:- (1) No
person, other than a co-operative society, shall trade or carry on business under
any name or title of which the word “co-operative” or its equivalent in any Indian
language is part without the sanction of the Government:

Provided that nothing in this sub-section shall apply to the use by any person

or his successor-in-interest of any name or title under which he traded or carried
on business on the date on which the Co-operative Societies Act, 1912 (2 of 1912)
came into operation.

(2) Whoever contravenes the provisions of sub-section (1) shall be punishable

with fine which may extend to two hundred rupees and in the case of a
continuing offence with further fine of fifty rupees for each day on which the
offence is continued after conviction thereof.

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

73. **_Punishment for offences not otherwise provided for_** :- Any co-operative
society or any officer or member thereof or any other person contravening the
provisions of this Regulation for which no punishment is expressly provided
herein shall be punishable with fine which may extend to fifty rupees.

74. Cognisance of offences :- (1) No court inferior to that of a Magistrate of the
first class shall try any offence under this Regulation.

(2) No prosecution shall be instituted under this Regulation without the

previous sanction of the Registrar and such sanction shall not be given without
giving to the person concerned a reasonable opportunity to represent his case.

###### CHAPTER XIII
 MISCELLANEOUS

75. Address of co-operative societies : Every co-operative society shall have an
address registered in the manner prescribed to which all notices and
communications may be sent, and shall send to the Registrar notice of every
change thereof within thirty days of such change.

76. Copy of Regulation, rules, bye-laws, etc., to be open to inspection:- Every
co-operative society shall keep a copy of this Regulation, the rules and its byelaws and also a list of its members, open to inspection free of charge at all
reasonable times at the registered address of the society.

77. **_Power to exempt co-operative societies from conditions as to_**
**_Registration_** :- Notwithstanding anything contained in this Regulation, the Chief
Commissioner may, by special order in each case and subject to such conditions,
if any as he may impose, exempt any co-operative society from any of the
requirements of this Regulation as to registration, if he is satisfied that such
exemption is necessary having regard to the nature of the activities of the society
or that such exemption is necessary in the public interest or in the interest of the
co-operative movement.

78. **_Power to exempt co-operative societies from provisions of the_**
**_Regulation:- The Chief Commissioner may, by general or special order, exempt_**
any co-operative society or any class of co-operative societies from any of the
provisions of this Regulation or may direct that such provision shall apply to such
societies or class of societies with such modifications as may be specified in the
order if he is satisfied that such exemption or direction is necessary having regard
the nature of the activities of the society or class of societies or that such
exemption or direction is necessary in the public interest or in the interest of the
co-operative movement.

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

79. **_Registrar and other officers to be public servants_** :- The Registrar, a
person appointed to assist the Registrar under section 3, a person authorised to
audit the accounts of a co-operative society under section 48 or to make an
inspection under section 49 or to hold an inquiry under section 50 and a person
appointed as an arbitrator under section 56 or a liquidator appointed under
section 58 shall be deemed to be public servants within the meaning of section 21
of the Indian Penal Code (45 of 1860).

80. Notice necessary in suits :- No suit shall be instituted against a co-operative
society or any of its officers in respect of any act touching the constitution,
management or business of the society until the expiration of three months next
after notice in writing has been delivered to the Registrar or left at his office,
stating the cause of action, the name, description and place of residence of the
plaintiff and the relief which he claims, and the plaint shall contain a statement
that such notice has been so delivered or left.

81. Companies Act not to apply :- The provisions of the Companies Act, 1956
(1 of 1956) shall not apply to co-operative societies.

82. **_Savings of existing societies_** :- (1) Every society now existing, which has
been registered under the Co-operative Societies Act, 1912 (2 of 1912), as it
applies to the Union territory of the Andaman and Nicobar Islands, shall be
deemed to be registered under the corresponding provisions of this Regulation,
and its bye-laws shall, so far as they are not inconsistent with the provisions of
this Regulation or the rules, continue to be in force until altered or rescinded.

(2) All appointments, rules and orders made, all notifications and notices

issued and all suits and other proceedings instituted under the said Act shall, so
far as they are not inconsistent with the provisions of this Regulation, be deemed
to have been respectively made, issued and instituted under this Regulation save
that an order cancelling the registration of a co-operative society made under the
said Act shall be deemed, unless the society has already been finally liquidated as
an order made under section 57 for its being wound up.

**83.** **_Bar of jurisdiction of courts_** :- (1) Save as otherwise provided in this
Regulation, no court shall have any jurisdiction in respect of 
(a) the registration of a co-operative society or its bye-laws or of an

amendment of the bye-laws ;

(b) the removal of a committee ;

(c) any dispute required under section 55 to be referred to the Registrar ; and

(d) any matter concerning the winding up and the dissolution of a co
operative society.

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

(2) While a co-operative society is being wound up, no suit or other legal

proceeding relating to the business of such society shall be proceeded with or
instituted against the liquidator as such or against the society or any member
thereof, except by leave of the Registrar and subject to such terms as he may
impose.

(3) Save as otherwise provided in this Regulation, no order, decision or award

made under this Regulation shall be questioned in any court on any ground
whatsoever.

84. **_Registrar, etc., to have powers of a civil court_** :- (1) In exercising the
functions conferred on him by or under this Regulation, the Registrar, the
arbitrator or any other person deciding a dispute under section 56 and the
liquidator of a co-operative society and a person entitled to audit, inspect or hold
an inquiry under this Regulation shall have all the powers of a civil court, while
trying a suit under the Code of Civil Procedure, 1908 (5 of 1908) in respect of the
following matters, namely :
(a) summoning and enforcing the attendance of any person and examining

him on oath ;

(b) requiring the discovery and production of any document ;

(c) proof of facts by affidavits ; and

(d) issuing commissions for examination of witnesses.

(2) In the case of an affidavit, any officer appointed by the Registrar, the

arbitrator or any other person deciding a dispute or the liquidator, as the case
may be, may administer the oath to the deponent.

85. Indemnity :- No suit, prosecution or other legal proceeding shall lie against

the Registrar or any person subordinate to him or acting on his authority in
respect of anything in good faith done or purporting to have been done under this
Regulation.

- 86. **_Power to make rule_** :- (1) The Chief Commissioner (now the Lieutenant
Governor (Administrator), Andaman and Nicobar Islands) may, by notification in
the Official Gazette and subject to the condition of previous publication, make
rules or further to amend to carry out all or any of the purposes of this
Regulation.

- (Notification No.90/96/F.No.30-51/94-Dev.I(Coop) dated 03[rd] October,
**1996 of Andaman and Nicobar Islands Cooperative Societies Regulations,**
**1973 (No.3 of 1973) in the Andaman and Nicobar Gazette, Extra Ordinary**
**issue No.94 dated 03[rd] October, 1996)**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

(2) In particular, and without prejudice to the generality of the foregoing

power, such rules may provide for all or any of the following matters, namely:
(i) the maximum number of shares or portion of the capital of a co-operative
society which may, subject to the provisions of section 6, be held by a
member ;

(ii) the form to be used and the conditions to be complied with in the making

of applications for the registration of a co-operative society and the
procedure in the matter of such applications ;

(iii) the procedure and conditions for change in the form and extent of the

liability of co-operative society ;

(iv) the matters in respect of which a co-operative society may or shall make

bye-laws and the procedure to be followed in making, altering and
abrogating bye-laws and the conditions to be satisfied prior to such
making, alteration or abrogation;

(v) the conditions to be complied with by person applying for admission or

admitted as members, for the election and admission of members, and the
payment to be made and the interest to be acquired before the exercise of
the right of membership ;

(vi) the manner in which funds may be raised by means of shares or

debentures or otherwise ;

(vii) general meetings of the members and the procedure at such meetings and

the powers to be exercised by such meetings ;

(viii) the prohibitions and restrictions subject to which co-operative societies

may transact business with persons who are not members ;

(ix) the proportion of individuals and co-operative societies in the constitution

of the committee of management and the general body of a co-operative
society of which another co-operative society is a member ;

(x) subject to the provisions of section 26, the election and nomination of

members of committees, the appointment or election of officers and the
suspension and removal of the members and other officers, and the powers
to be exercised and the duties to be performed by the committees and other
officers ;

(xi) the appointment and regulation of work entrusted to the person or persons

replacing the committee in pursuance of section 27 ;

(xii) prohibiting a co-operative society form electing a defaulting member on its

committee or to be its representative ;

(xiii) the accounts and books to be kept by a co-operative society, the audit of

such accounts and the charges, if any, to be made for such audit, and the
periodical publication of a balance sheet showing the assets and liabilities
of a co-operative society ;

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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

(xiv)the returns to be submitted by a co-operative society to the Registrar, the
persons by whom and the form in which such returns shall be submitted
and in case of failure to submit any such return, the levy of expenses of
preparing it ;

(xv) the persons by whom and the form in which copies of entries in books of

co-operative societies may be certified and the charges to be levied for the
supply of such copies ;

(xvi)the formation and maintenance of a register of members and, where the
liability of the members is limited by shares, of a register of shares ;

(xvii) the appointment of an arbitrator to decide disputes ;

(xviii) the procedure to be followed in proceedings before the Registrar, arbitrator

or other persons deciding disputes including the appointment of a guardian
for a party to the dispute who is a minor or who, by reason of unsoundness
of mind or mental infirmity, is incapable of protecting his interests, and the
levy of expenses relating to such proceedings ;

(xix) the withdrawal and expulsion of members and the payments, if any, to be

made to members who withdraw or are expelled and the liability of past
members or the estates of deceased members ;

(xx) the mode in which the value of deceased member’s share or interest shall
be ascertained and the nomination of a person to whom such share or
interest may be paid or transferred ;

(xxi) the payments to be made and the conditions to be complied with by

members applying for loans, the period for which any loans may be made
and the maximum amount which may be lent, to any member ;

(xxii) the formation and maintenance of reserve funds and other funds and the

objects to which such funds may be applied, and the investment of any
funds under the control of a co-operative society;

(xxiii) the extent to which a co-operative society may limit the number of its

members ;

(xxiv) the conditions under which profits may be distributed to the members of a

co-operative society with unlimited liability, and the maximum rate of
dividend which may be paid by co-operative societies ;

(xxv) the calculation and writing off of bad debts by co-operative societies ;

(xxvi) the procedure to be followed by a liquidator appointed under section 58 in

respect of the provisions of section 59 ;

(xxvii)the procedure to be followed in presenting and disposing of appeals under
this Regulation :

(xxviii) the issue and service of processes and for proof of service thereof ;

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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, MAY 13, 1973**

(xxix) the manner of effecting attachment ;

(xxx) the custody, preservation and sale of property under attachment;

(xxxi) the investigation of claim by persons other than the defaulter to any right

or interest in the attached property, and the postponement of sale pending
such investigation ;

(xxxii) the immediate sale of perishable articles ;

(xxxiii)the inspection of documents in the office of the Registrar of any other
officer or authority and the levy of the fees for granting certified copies of
the same ;

(xxxiv) the terms and conditions on which Government may make share capital

contribution or give financial or other assistance to co-operative societies
and the terms and conditions on which the Government may guarantee the
payment of the principal or interest on the debentures issued by cooperative societies or loans or deposits raised by them ;

(xxxv) the manner in which the funds may be raised by a co-operative society or

a class of co-operative societies by means of share or debentures or
otherwise and the quantum of funds so raised ;

(xxxvi) the qualifications for members of the committee and the employees of a co
operative society or class of co-operative societies and the conditions of
service subject to which persons may be employed by co-operative
societies ;

(xxxvii) the method of communicating or publishing any order, decision or award

required to be communicated or published under this Regulation of the
rules ; and

(xxxviii) all other matters expressly required or allowed by this Regulation to be

prescribed by rules.

87. Repeal and savings :- The Co-operative Societies Act, 1912 (2 of 1912) in its
application to the Union Territory of the Andaman and Nicobar Islands, is hereby
repealed :

Provided that such repeal shall not affect –

(a) the previous operation of the said Act or anything duly done or suffered

there under; or

(b) any right, privilege, obligation or liability acquired, accrued or incurred

under the said Act ; or

(c) any penalty, forfeiture, or punishment incurred in respect of any offence

committed against the said Act, or

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(d) any investigation, legal proceeding or remedy in respect of any such

right, privilege, obligation, liability, penalty forfeiture or punishment as
aforesaid
and any such investigation, legal proceeding or remedy may be
instituted continued or enforced and any such penalty forfeiture or
punishment may be imposed as if this Regulation had not been passed.

######  V. V. GIRI,

   President
 K.K.SUNDARAM,
      Secy. to the Govt. of India

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## ANDAMAN AND NICOBAR GAZETTE

#### EXTRAORDINARY

###### Published BY Authority


###### No. 167, Port Blair, Wednesday, October 16, 1974 / Asvina 24, 1896


###### ANDAMAN AND NICOBAR ADMINISTRATION
 CHIEF COMMISSIONER'S SECRETARIAT
 ------
 NOTIFICATION

---------
Port Blair, the 16th October, 1974/Asvina 24, 1896.

No. 164/74/F.No.1/1(135)/73-Dev.II. In exercise of the powers conferred

by section 86 of the Andaman and Nicobar Islands Co-operative Societies

Regulation 1973 (No. 3 of 1973), the Chief Commissioner Andaman and Nicobar

Islands, hereby makes the following rules, the same having been previously

published as required by sub-section (1) of the said section, namely:
#### THE ANDAMAN AND NICOBAR ISLANDS

###### CO-OPERATIVE SOCIETIES RULES, 1974

 CHAPTER I

 PRELIMINARY

**1. Short Title Extent and Commencement:- (I) These rules may be called the**

Andaman and Nicobar Islands Co-operative Societies Rules, 1974.

(2) They shall extend to the whole of the Union Territory of the Andaman

and Nicobar Islands.

(3) They shall come into force on such date as the Chief Commissioner

may be notification in the official Gazette appoint.

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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

*** IA. The Chief Commissioner may be general or special order exempt any**

Co-operative Society or any class of Co-operative Societies from any of the
provision of these Rules or direct that such provision shall apply to such societies
or class of societies with such modification as may be specified in the order, if he
is satisfied that such exemption or direction is necessary having regard to the
matter of the activities of the society or class of societies in the public interest or
in the interest of the Co-operative movement.

**2. Definition:- In these rules, unless the context otherwise requires:-**

(a) "Appendix" means an appendix to these rules:

(b) ****** "Co-operative Year" means the year beginning on the 1[st] day of April

and ending on the 31[st] day of March”.

(c) "Decree" means any order, decision or award referred to in section 63:

(d) "Decree-holder" means any person holding a decree as defined   in

clause(c):

(e) "Maximum credit limit" means the extent to which a co-operative society

may receive deposits and loans from members and non-members:

(f) "Member of a family" includes any one of those given under Explanation

to section 5 of the Regulation:

(g) "Model bye-laws" means a set of bye-laws approved and proposed by the

Registrar for general adoption by a class of co-operative societies:

(h) "Net profit" means profit after deduction of establishment charges,

contingent charges, interest payable on loans and deposits, audit fee and
such other sums as may be prescribed:

(i) "Owned capital" means the total paid-up share-capital and reserve fund

and other funds created out of profit and undistributed profits means
accumulated losses:

(j) "Paid-up share-capital" means such portion of the subscribed share
capital as it actually paid-up:

*** (Rule 1A is inserted in the A&N Islands Co-operative Societies Rules,**
**1974 (Amendment) vide A&N Administration, Chief Commissioner’s**
**Secretariat Notification No.4/81/F.No.1/1(160)/79-Part/Dev.II dated**
**24.04.1981).**

**** (substituted name against sub-rule (b) of rule 2 vide A&N**
**Administration,** **Secretariat’s** **notification** **No.** **/F.No.30-21/92-**

**Dev.II(Coop) dated 19.08.1993, A&N Islands Co-operative Societies**
**(Amendment) Rules, 1993)**

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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(k) "Persons appointed to assist the Registrar" include Additional Registrar,

Joint Registrars, Deputy Registrars, Assistant Registrars, Chief Auditor,
Audit Officers and other persons with such designation as the Chief
Commissioner thinks fit:

(l) "Recovery Officer" means the Registrar or a person subordinate to the

Registrar who is authorised by the Registrar to exercise the powers under
clause(a) of section 63:

(m)"Regulation" means the Andaman and Nicobar Islands Co-operative
Societies Regulation, 1973 (No.3 of 1973).

(n) "Reserve fund" means a fund to which at-least one fourth of the net profit

of a co-operative society in any year shall be carried to as required by
secrion41:

(o) "Sale Officer" means the Registrar or an officer subordinate to the

Registrar and who is empowered by him, by general or special order, to
exercise powers under clause(b) of section 63:

(p) "Section" means a Section of the Regulation:

(q) "Share-Capital" means the subscribed share-capital:

(r) "Working capital" means the total of owned capital plus the borrowed

capital:

(s) Words and expressions defined in the Regulation and used in these rules

shall have the meaning respectively assigned to them in the Regulation.

###### CHAPTER II

 Registration of Co-operative Societies and their bye-laws.

 APPLICATION FOR REGISTRATION

**_3. Forms of Application:- An application for registration of a co-operative society_**
shall be made in the form prescribed in Appendix "A" and shall specify the name
and address of one of the applicants to whom the Registrar may address his
correspondence under rule 5 or rule 6.

**4.** **_Documents which shall accompany the application:- An application for_**
registration shall be accompanied by three copies of the bye-laws which the Cooperative Society proposes to adopt. Such copies of bye-laws shall bear the
signature of not less than two of the applicants, duly authorised by the members
of the proposed co-operative society.

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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**_5. Procedure on receipt of application:- (1) Before passing final order under_**
section 8, the Registrar may call for such further information from the applicants
or make such independent enquiries as he may deem necessary.

(2) After the Registrar is satisfied with regard to the matters stated in sub
section (1) of section 8, he may register the co-operative society and its bye-laws.
A copy of the registered bye-laws shall be returned by him to the co-operative
society.

**_6. Persons to whom order under section 8(2) to be communicated:- An order_**
passed by the Registrar refusing registration of a co-operative society shall be
communicated by registered post or by any other means deemed fit to the
applicant referred to in rule 3.

**7. Appeal against refusal of application for registration:- Where an application**
for registration of a co-operative society is refused by the Registrar, an appeal, if
made, shall be signed by all the persons who had signed in the application for
registration:

Provided that where an application for registration was signed by more than

ten persons, the appeal shall be signed by at-least two third of the persons who
has signed the application for registration subject to a minimum number of ten
such persons.

**8. Subject matter of Bye-Laws:- (1) A Co-operative society shall make bye-laws**
in respect of the following matters:
(a) name and address of the co-operative society;

(b) area and operation:

(c) the objects of the co-operative society:

(d) the manner in which the funds may be raised and the maximum
share capital which any one member may hold and the purpose to
which the funds may be made applicable:

(e) the qualification for membership and terms for admission of
members:

(f) the nature and the extent of the liability of the members:

(g) withdrawals and expulsion of members, and the payments, if any, to
be made to such members:

(h) transfer of shares or interest of the members:

(i) general meetings and procedures and powers of such meetings:

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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(j) procedures of election to the committee:

(k) appointment, suspension and removal of the officers of the cooperative society and members of the committee:

(l) constitution of the committee and procedure for holding its
meetings:

(m) powers and duties of the committee and officers of the co-operative
society:

(n) the privileges, rights, duties and liabilities of members:

(o) the consequence of defaults in payments of any sum due by a
member:

(p) authorisation of an officers of the co-operative society to sign
documents and to institute and defend suits and other legal
proceedings on behalf of the society:

(q) the constitution and maintenance of various funds as required to be
maintained under the provisions of Regulation, Rules and bye-laws:
and

(r) Disposal of profits:

Provided that if in the opinion of the Registrar the bye-laws of any co-operative

society do not contain provisions with regard to the matters specified in clause (i)
and (1) or contain insufficient provision with regard to these matters, the
provisions prescribed in appendix "B" shall apply to such society as if the said
Appendix had been part of the bye-laws registered under section 8:

Provided further that if there is any inconsistency in the bye-laws framed by

the society with regard to the aforesaid matters and the provisions contained in
appendix "B" the bye-laws of the society shall prevail in so far as they are
inconsistent with the provisions contained in appendix "B".

(2) The bye-laws of a co-operative society may further provide for such matter

as are incidental to the organisation of the society and the management of its
business.

**9. Amendment of Bye-Laws:- Subject to the provisions of section 10 and rule 8,**
a society may from time to time, amend its bye-laws.

**10. Resolution for Amendment:- No amendment under rule 9 shall be carried**
out save in accordance with a resolution passed at a general meeting of the cooperative society of which due notice or the intention to discuss the amendment
in the meeting has been given to its members.

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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

Provided that no such resolution shall be valid unless it is passed by a

majority of members present at the general meeting at which not less than two
third of members for the time being of the co-operative society are present:

Provided further that amendment of bye-laws on the lines of model bye
laws previously approved by the Registrar may be adopted by a majority at an
ordinary general meeting.

**11. Application to the Registrar for Registration of Amendment:- Three**
copies of the amendment adopted by a co-operative society under rule 10 signed
by two officers of the co-operative society, duly authorised by the general meeting
in this behalf, shall be submitted to the Registrar along-with an application for
registration, duly signed as aforesaid, together with a copy of the resolution
passed in the general meeting to that effect. Such copies of the amendments shall
be accompanied by a certificate signed by any one of the above two officers of the
co-operative society to the effect that the provisions of the rule 10 have been
complied with.

**12. Registration of Amendment:- On receipt of an application for registration,**
together with other documents referred to in rule 11, the Register shall examine
the amendment proposed by the co-operative society and if he is satisfied that the
amendment is not contrary to the Regulation or the rule and is in the interest of
the society and the co-operative movement, he may register the amendment and
issue to the co-operative society a copy of the amendment duly certified by him
under section 10. Where Registrar is of 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.

**13. Manner of calling upon co-operative society to make Amendment to**
**Bye-laws:- (1) Subject to the provision of this rule, the Registrar may by serving a**
notice in the form prescribed in appendix 'C' call upon a co-operative society to
make such amendment to the Bye laws of the co-operative society as he considers
to be necessary or desirable in its interest, within a period not exceeding two
months from the date of service of notice. The notice shall state exact amendment
which the society should make.

(2) For the purpose of the sub section 6 (i) of section 10 the Registrar shall send

a copy of the notice to the credit agency, if any, to which the society is affiliated,
with a request to offer its comments on the amendment which such time as may
be specified by him. If the credit agency fails to offer comments within the
specified time, it may be presumed by the Registrar that the credit agency has an
objection to the amendment.

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(3) If after considering the comments, if any of the credit agency, the Registrar

considers that the amendment, is necessary in the interest of the co-operative
society, he shall send a written notice in the form prescribed in Appendix 'D' by
registered post or by any other manner deemed fit to the registered address of the
co-operative society calling upon it to show cause in writing or through a properly
authorised representative to appear before the Registrar on the date specified in
the notice as to why the proposed amendment should not be registered within the
time specified in the notice in appendix 'C'.

(4) After the expiry of the period specified in the notice in appendix 'C' and

after considering the reply, if any, of the co-operative society and the views, if any,
of the credit agency on such reply, the Registrar may, after duly considering the
objection of the society (if any) to the proposed amendment, register the
amendment.

**14. Change in the name of society:- (1) The name of a co-operative society**
maybe changed under section 11 so however that it does not refer to any caste or
religious denomination and is not inconsistent with the object of the co-operative
society.

(2) Where the name of a Co-operative Society is changed in accordance with

section 11 such society shall send the original registration certificate for
amendment to the Registrar, who shall return the same to the society, duly
amend after following the procedure laid down under section 11(2)

(3) If the original certificate of registration is lost by a co-operative society, the

co-operative society shall apply to the Registrar in writing for a duplicate copy of
certificate and Registrar, if satisfied after inquiry that the certificate has been so
lost shall issue a duplicate certificate against a fee of rupees two.

**15. Change of Liability of a Co-operative Society:- (1) Every notice to be given**
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 or on the outer wall of society's building or at a conspicuous
public place and a copy shall also be sent to the Registrar for exhibition on the
notice board of his office; and there upon, the notice of resolution to change the
form or extent of its liability shall be deemed to have been duly given to all its
members and creditors, notwithstanding the fact that such notice had not been
sent to their correct address or that it had not been received by them.

(2) For the purpose of determining the claims of a member under clause (b) of

the sub-section 12, the value of a share of a member in a co-operative society
shall be ascertained as in the following manner, namely:

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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

`(a)` in the case of a co-operative society with limited liability, the value of a

share shall be the actual amount received by the co-operative society in
respect of such share; and

`(b)` in the case of a co-operative society with unlimited liability, the value of the

shares shall be the amount arrived at by a valuation based on the financial
position of the co-operative society as shown in the last audited balance
sheet:

Provided that it shall not exceed the actual amount received by the co-operative

society in respect of such shares.

(3) Any member or creditor desiring to exercise his option under sub-section (2)

of section 12 shall inform the co-operative 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 withdrawals. The cooperative 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 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,
resolution passed by the co-operative society for amendment of its bye-laws or the
purpose shall be ineffective and the form and extent of liability of co-operative
society shall not be changed in accordance with the resolution so passed.

(4) After the Registrar approves the scheme, the co-operative society shall make

payments to member and creditors as provided for in clause (b) of sub-section (b)
of sub-section (4) of section 12 and make a report to that effect to the Registrar
and the Registrar shall thereupon proceed to register the amendment to the byelaws of the co-operative society.

(5) Subject to the provisions of this rule the provisions of section 10 and rules

10 to 12 shall apply to an amendment of the bye-laws of a society for purpose of
changing the form or extent of its liability.

*** Rule 16: Amalgamation, Transfer of Assets and Liabilities or Division of**
**societies:-**

(1) Every Co-operative Society desiring to effect amalgamation, transfer of

assets and liabilities or division shall make an application to the Registrar to that
effect, giving full details about such amalgamation, transfer, or division, as the
case may be.

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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(2) On receipt of such application, the Registrar may, after examining the

details furnished in the application and such other particulars which he may call
upon the co-operative society to furnish, give his approval to the amalgamation,
transfer or division if he considers such amalgamation, transfer or division as the
case may be, to be in the interest of the co-operative society.

(3) After the receipt of the Registrar's approval under sub-rule (2), the co
operative society shall convene special general meeting by giving notice of at-least
clear 15 days to all its members and creditors and pass a resolution for
amalgamation, transfer of assets and liabilities or division, as the case may be by
a majority of two third members present and voting at the meeting. The resolution
so passed shall contain the purpose and the full scheme indicating how the
proposed amalgamation, transfer or division would be useful to the co-operative
society and be given effect to. Where the scheme does not involve transfer of
liabilities of the co-operative society to another co-operative society a statement to
that effect shall be made in the application to be made under sub-rule (1).

(4) Notice of such resolution, as required by section 13(4), to the members and

creditors of the co-operative society shall be in the form prescribed in appendix
'E'. The notice may also be published in a newspaper in circulation in the district
in which the society's office is situated and a copy thereof shall be exhibited in the
notice board of the society or in outer wall of the building of the co-operative
society or in any conspicuous public place and also on the notice board of the
Registrar's office.

(5) The Co-operative Society shall meet in full or otherwise satisfy all claims of

members and creditors and other interested persons who exercise the option in
pursuance of the notice under sub-rule (4).

(6) The co-operative society shall submit a report to the Registrar of the action

taken by it and request him to give effect to its decision for amalgamation,
transfer or division by registering the amalgamated or the new co-operative
society as the case may be, and cancelling the registration of the co-operative
societies which have been amalgamated or divided.

(7) On receipt of the report from the Co-operative Society under sub-rule(6),

the Registrar shall, after satisfying himself that the procedure has properly been
followed, register the amalgamated or divided societies and cancel the registration
of the co-operative societies which have been amalgamated or divided"

###### * No.165/1/1(135)/75-DII (Vol.II):- Inserted vide Chief Commissioner's Notification NO.164/74/F.No.1/1(135)/73-Dev.II dated 16th October, 1974, published in the Andaman and Nicobar Gazette Extraordinary No. 167 dated 16th October, 1974.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**17. Appeal against refusal to register amendments to bye-laws: Where an**
application for registration of an amendment to bye-laws of a co-operative society
is rejected by the Registrar under sub-section (4) of section 10, the appeal, if any,
against such refusal shall be made only after a meeting of the general body has
reconsidered the matter and has decided to prefer an appeal. Such appeal shall
be signed by an officer of the co-operative society duly authorised in this behalf by
a general body meeting".

###### CHAPTER III
 MEMBERS OF CO-OPERATIVE SOCIETIES
 THEIR RIGHTS AND LIABILITIES

**18.** **Disqualification For Membership:- (1) No person shall be eligible for**
admission as a member, if he:

(a) has applied to be adjudicated and insolvent or is an un-discharged

insolvent; or

(b) has been sentenced for any offence, other than an offence of a political

character or an offence not involving moral turpitude and a period of five
years has not elapsed from the date of expiry of the sentence.

(2) if a member becomes subject to any disqualification specified sub-rule(1), he

shall be deemed to have ceased to be a member from the date when the
disqualification was incurred.

**19. Prohibition of membership in two co-operative credit or service**
**societies:- (1)No individual being a member of primary co-operative society**
having one of the objects of creation of funds to be lent to its members shall be a
member of any other such co-operative society without the general or special
permission of the Registrar, and where an individual has become a member of two
such co-operative societies, either or both of the co-operative societies shall be
bound to remove him from membership upon a written requisition from the
Registrar to that effect.

(2)No individual who is an officer of a co-operative society shall without the

general or a special permission of the Registrar be a member of any other cooperative society whose objects are similar to the objects of the society of which
he is an officer and where such an individual has become a member of another
society with similar objects, either or both of the co-operative societies shall be
bound to remove him from membership upon written requisition from the
Registrar to that effect. If any question arises as to whether or not two cooperative societies have similar objects, the decision of the Registrar on the point
shall be final.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**20. Admission of member before general meeting of a society:- No co-**
operative society shall admit members within fourteen days prior to an annual
general meeting.

**21. Members not to exercise vote till due payment made:- No member of a co-**
operative society shall participate in the general meeting of the co-operative
society or vote in the election to the committee, unless he has made all such
payments to the co-operative society as are due from him.

**22. Disposal of application for admission of member:- A co-operative society**
other than a producers co-operative society shall dispose of an application
received for admission as a member as early as possible and in no case later than
the expiration of a period of one month from the date of receipt of the application
by the co-operative society. In case of refusal to admit, such co-operative society
shall communicate its decision together with reasons thereof, to the applicant.

**23. Withdrawals From Membership:- (1) In a co-operative society with unlimited**
liability, a member who is not indebted to the co-operative society and is not a
surety for an unpaid debt may withdraw from the co-operative society after giving
such notice to the secretary of the co-operative society as may be laid down in the
bye-laws of the co-operative society.

(2) In a co-operative society with unlimited liability a member, who withdraws

or otherwise removed or expelled from the co-operative society shall be entitled to
repayment, without interest, any money paid by him or his predecessor-ininterest towards the purchase of shares after such period as may be laid down in
the bye-laws of the co-operative society.

(3) No member of a co-operative society with limited liability shall ordinarily be

permitted to seek withdrawals or refund of his shares.

Provided that where the society has created a share transfer fund out of its

earned profits its managing committee may, keeping in view the over-all interest
of the co-operative society, allow withdrawals of shares.

Provided further that such withdrawal of shares at any time shall not

exceed five percent of the aggregate paid up share capital of the co-operative
society, excluding Government contribution as it stood on the thirtieth June of
the preceding year.

(4) Irrespective of nature of liabilities of a co-operative society the share capital

subscribed by the Government or by a central or apex co-operative financing
institution will be retired in such manner and during such period as may be
determined by the Registrar from time to time.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**24. Nomination of heir:- (1) Every member of a co-operative society shall**
nominate a person or persons to whom his share or interest referred to in
section 21 or such sums out of share or interest as may be specified by the
member, shall, on the death of the member be transferred or paid as laid down
in the bye-laws.

(2) Such nomination may, from time to time, be revoked or modified by the

member.

(3) The number of persons who may be nominated by a member shall not

exceed the number of shares held by him.

(4) When a member of a co-operative society nominates more than one person,

he shall, as far as practicable, specify the amount to be paid or transferred to
each nominee in terms of whole share and the interest accruing thereon.

(5) The record of nomination shall be kept by a co-operative society in such

manner as may be laid down in the bye-laws.

(6) The value of the share or interest transferred or paid to a nominee or

nominees shall be determined on the basis of the sum paid by the member to
acquire such share or interest, unless the bye-laws of the co-operative society
provide for calculation on different basis.

**25. Maintenance of Register of Members:- Every co-operative society shall**
maintain a register of member showing:

(a) the name, address and occupation of each member and a statement of

shares held by him.

(b) the date on which the member’s name was entered in the register:

(c) the date on which any person ceased to be a member; and

(d) the nominee appointed by a member.

###### CHAPTER IV
 GENERAL MEETING

**26. Powers of General Meeting:- Without prejudice to the provisions of**
section 24, the general meeting of a co-operative society, alone shall have the
power to transact the following business:
(a) Fixing the maximum credit limit of the co-operative society, subject to the

approval of the Registrar; and

(b) Expulsion of members.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**27. Election of Committee:- The members of the committee of a co-operative**
society shall be elected in accordance with the rules given in appendix ‘F’.

**28. Proportion of individuals and co-operative Societies for Constituting**
**Committee:- in a co-operative society, the membership of which is not exclusively**
confined to individuals, the representative of the individuals and co-operative
societies on the committee and the general body shall be such as may be laid
down in the bye-laws of the co-operative society.

**29. Disqualification for Membership of Committee:- No person shall be eligible**
for election as a member of the committee if:

(a) he is in default in any co-operative society in respect of any sum due from

him to the co-operative society or owes to any co-operative society an
amount exceeding maximum credit limit;

(b) he has directly, or indirectly any interest in any contract to which the co
operative society is a party except in transactions made with the co-operative
society as a member in accordance with the objects of the co-operative
society as stated in the bye-laws;

(c) he has at any time during a period of one year prior to the date of scrutiny of

nomination papers engaged in any private business, trade or profession of
any description which is carried on by the co-operative society.

(d) he has committed any offence involving dishonesty or moral turpitude

during a period of five years immediately preceding to the date of scrutiny of
nomination papers;

(e) he is subject to any of the disqualifications contained in rule 30;

(f) he has during a period of twelve months immediately preceding the date of

filing nomination papers remained inactive as member or has been carrying
on, through agencies other than a co-operative society of which he is a
member, same business as is being carried on by the co-operative society.

(g) he incurs any other disqualification laid down in the bye-laws of the co
operative society.

**30. Cessation of Membership of Committee:- A member of the committee shall**
cease to hold his office as such if he:

(a) continues to be in default in respect of any sum due from him to the co
operative society for such period as may be laid down in the bye-laws:

(b) Ceases to be a member of the society;

(c) is declared insolvent;

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(d) becomes of unsound mind;

(e) is convicted of an offence involving dishonesty or moral turpitude; and

(f) becomes subject to any of disqualification which would have prevented him

from seeking election, had he incurred that disqualification before election.

**31. Division of area of Co-operative Society into zones:- The Registrar may in**
cases as he thinks fit, divide the area of operation of a co-operative society into
zones not exceeding in number than the number of members to be elected for the
committee.

***32. Qualifications and conditions of service of employees:- *(1) The**
qualification and conditions of service subject to which any persons may be
employed by a co-operative society or a class of co-operative societies shall be
such as may be determined by the Lieutenant Governor (Administrator), A&N
Islands.

*(2) Where the Lieutenant Governor (Administrator) is of the opinion that it is

necessary or expedient so to do, he may by order for reasons to be recorded in
writing, relax the provisions of this rule with respect to any co-operative society or
class of co-operative societies to such extent as he may consider proper.

###### CHAPTER V
 WORKING OF CO-OPERATIVE SOCIETIES

**33.** **_Manner of certifying copies of entries in books: - For the purpose of_**
section 36, a copy of an entry in the books of a co-operative society shall be
certified by a certificate written at the foot of such copy declaring that it is true
copy of such entry and that the book containing the entry is still in the custody of
the co-operative society:

Provided that such certificate shall be dated and signed by an officer of the

co-operative society.

**34.** **_Loans and Subsidies by Government: - Loans and subsidies to a co-_**
operative society or class of co-operative societies may be granted by Government
on such terms and conditions as may be laid down by the Government by general
or special order from time to time.

*** (The Andaman and Nicobar Islands Co-operative Societies Rules, 1974**
**(hereinafter called principal rules) the existing provisions against sub rule (1)**
**sub-rule (1) & (2) of rule 32 substituted vide A&N Administration, Registrar**
**of Co-operative Societies’ Notification No. 267/F.No.RCS/26-5/2009 dated**
**21.02.2011, A&N Islands Co-operative Societies (Amendment) Rules, 2010)**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**35. Manner of making Application for Loan or Subsidy: - An application by a**
co-operative society for a loan or subsidy or both from a Government department
or a Government sponsored agency shall be made through the Registrar. While
forwarding the application the Registrar shall record his opinion regarding the
eligibility of the co-operative society for the said loan or subsidy or both, its
financial position and the desirability of sanctioning to the co-operative society,
the said loan or subsidy or both.

**_36. Submission of information and returns by Co-operative societies having_**
**_State participation:- A co-operative society receiving Government loan or_**
subsidy or a co-operative society in which a share or shares have been subscribed
or liability by way of guarantee or borrowing not less than fifty percent of the
working capital of the co-operative society has been undertaken by the
government shall furnish such information and submit such returns as the
sanctioning authority or the Registrar may, from time to time, require.

**_37. Reserve Fund: - (1) the Reserve fund of a Co-operative society or class of co-_**
operative societies may with the specific approval of the Registrar in writing, be
utilised in the business of the co-operative society.

(2) Reserve Fund shall be indivisible and no member shall be entitled to claim

specified share in it.

Provided that in exceptional circumstances and with the prior approval of

the Registrar the reserve fund may be utilized in meeting losses.

(3) No co-operative society whose reserve fund has been invested or deposited

in the manner prescribed in section 44, shall draw upon pledge or otherwise
employee such fund except with the sanction of the Registrar previously obtained
in writing.

**_38. Payment of Dividend or Bonus: - (1) in no co-operative society the dividend_**
shall exceed ten percent per annum on paid up share capital.

(2) In a co-operative society with an unlimited liability, on dividend or bonus

shall be paid, until a period of five years has elapsed from the date of registration.

(3) No dividend shall be paid by the co-operative society while any claim due

from the co-operative society to a depositor or lender remains unsatisfied.

(4) The Registrar may by general or special order direct that a co-operative

society shall not pay dividend or shall pay dividend at reduced rate so long as it
receives loans and deposits from non members.

**39.** **_Net Profit: - The net profit of a co-operative society shall be the profit_**
remaining after allowing for the following charges in addition to those specified in
clause (h) of rule 2, namely:

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(a) all other usual working charges such as repairs, rent, taxes, depreciation

and irrecoverable amounts written off;

(b) capital expenditure written off, either wholly or in part;

(c) capital loss actually incurred and not adjusted against any fund created

out of profits;

(d) provisions for estimated bad debts, doubtful debts if any;

(e) expenses incurred in connection with the meetings and elections; and

(f) any other revenue expenditure.

**_40. Creation of Co-operative Education Fund: - Every co-operative society shall_**
contribute three percent, out of its net profit of the year to the co-operative
education fund to be administered by State Co-operative Union. The contributions
payable by a co-operative society shall be a charge on funds of co-operative
society and shall be recoverable in the manner as provided for in section 67. The
State Co-operative Union shall prepare regulations with the approval of the
Registrar for the utilization and administration of the fund.

**_41. Investment of Fund: - (1) Besides the manner provided in section 41, a co-_**
operative society may invest or deposit its funds or a portion thereof:

(a) in any bonds, certificates or loans issued by the Government;

(b) in debentures floated by a co-operative society; and

(c) with the previous sanction of the Registrar in the purchase of lease of land

or building or in the acquisition, construction or in renewal of any building
that may be necessary to conduct its business.

(2) The amount of the funds invested under clause (c) of the sub-rule (1) shall

be recouped in such terms as may be determined in each case by the Registrar.

(3) The provisions of clause (c) of sub rule (1) shall not apply:

(a) to immovable property purchased

(i) by a co-operative society at a sale held in execution of a decree obtained

by it or the recovery of any sum due to it; or

(ii) by a financing bank at sale held in execution of a decree obtained by a

co-operative society financed by it for the recovery of any sum due to such society
or at sale brought about by the liquidator of such co-operative society ; or

(b) to the purchase or lease for lands or purchase, construction or renewal of

buildings by a co-operative society whose object according to its bye-laws
includes such purchase, lease, construction or renewal.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**_42. Writing off of Bad Debts and Losses: - (1) All loans including interest_**
thereon and recovery charges in respect thereof which are found irrecoverable and
are certified as bad debts by the auditor under section 48, shall first be written off
against the bad debts fund if any and the balance, if any, may be written off
against the reserve fund and the share capital of the co-operative society.

(2) All other dues and accumulated losses or any other loss sustained by the

co-operative society which cannot be recovered and has been certified as
irrecoverable by the auditor may be written off against the reserve fund and the
share capital of the co-operative 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 is so written off, the co-operative

society, if it is affiliated to Central or Apex bank shall first obtain approval of that
bank in writing and also the approval of the Registrar. If the co-operative society
is affiliated but not indebted to the central or apex bank and in all other cases it
shall obtain the approval of the Registrar in writing. If the co-operative society is
an apex bank, approval of the Registrar shall first be obtained:

Provided that in case of co-operative 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 especially created for the purpose.

Provided further, that the Registrar may, while giving his 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, out of future profits
as he deem fit.

**43. Maximum Credit Limit of Members: - The bye-laws of a co-operative society**
shall lay down limit beyond which a co-operative society may not advance loans to
individual members without the Registrar’s prior consent.

**44. Nature and Extent of Security of Loans: - The Registrar may from time to**
time, issue such directives as her considers necessary for regulating the extent of
security which a co-operative society or class of co-operative societies may
demand in respect of loans advanced by it.

  - 44.(a) Form of agreement under Sub-section(1) of Section 39 – An agreement

under sub-section (1) of section 39 shall be executed in Form given in Appendix
‘K’.

*** (Rule 44(a) inserted in the A&N Islands Co-operative Rules, 1974(Amendment)vide**
**A&N Administration, Secretariat’s Notification No.103/F.No.1/1(135) /75.Dev.II**
**(Vol.II) dated 20[th] May,1977).**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**_45. Restriction on Grants of Loans by a Co-operative Society against its_**
**_Own Shares: - No Co-operative society shall grant loans or make advances_**
against the security of its own shares.

**_46. Declaration under section 32:- (1) A declaration under clause (i) or (ii) of_**
section 32 shall be made in the Form given in Appendix ‘G’.

(2) A register of such declaration to be kept by the co-operative society shall be

in the Form given in Appendix ‘H’.

**_47. Restriction on borrowing by Co-operative societies:- (1) Subject to_**
provisions of sub-rule (2), a co-operative society shall not receive deposits and
loans whether from members or non members which exceed the limit fixed from
time to time in a general meeting, subject to the Registrar, who may, at any time
reduce it.

(2) A Co-operative society which accepts deposits and loans from members only

and has no liability to any persons other than the members, may receive such
deposits and loans in excess of the limits referred to in sub-rule (1), if the exceed
amount is deposited in a co-operative bank to which it is affiliated or is invested
in Government securities in section 20 of the Indian Trust Act 1882;

Provided that the amount so deposited or invested or any part thereof is not

withdrawn or otherwise utilized except for the payment of the deposit accepted in
excess of the aforesaid limit;

**_48. Maintenance of Resources: - Every co-operative 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.

**_49. Directives by Registrar for Successful Conduct of the Business:- The_**
Registrar may, from time to time issue such directive as he considers necessary
for the successful conduct of the business of a society or class of co-operative
society.

**_50. Restriction on Appointment of Relative to an Office: - Save in a_**
producer’s co-operative society, no relative of any member of committee or of any
other officer of co-operative society shall be appointed to any office in the cooperative society, except with previous sanction of the Registrar.

###### CHAPTER VI
 AUDIT, INSPECTION, INQUIRY AND SURCHARGES

**51. Audit: - (1) The audit under section 48 shall in all cases extend back to the**
last date of previous audit and shall be carried out up to the last date of the cooperative year immediately preceding the audit or where the Registrar so directs

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

in the case of any particular co-operative society or class of co-operative societies,
such other date as may be specified by Registrar.

(2) Unless the Registrar directs otherwise, the audit of a co-operative society as

provided in section 48 of the Regulation, shall be conducted in the registered
office of the co-operative society.

(3) The officers and the employees of co-operative society shall give the auditor

all assistance necessary for the conduct and completion of audit and take such
action with regard to the verification or examination of its accounts and stock as
he may require.

(4) The Registrar shall, in cases where the audit is done by him, prepare, and

in case where the audit so done by a person authorised by him under subsection
(1) of section 48, obtain from such person, an audit report in the form specified by
the Registrar on the account and on every balance sheet and profit and loss
account examined by him and shall state whether in his opinion and to the best
of his information as given to him, the said accounts give all the information
required by the Regulation and give a true and fair view:

(i) in the case of the balance sheet, of the state of the affairs of the co-operative

society as at the end of the co-operative year or any other subsequent date to
which the accounts are made up and examined by him; and

(ii) in the case of profit and loss account, the profit or loss of the co-operative

year, or the period covered by audit, as the case may be.

(5) The audit, report shall include statement under the appropriate parts with

full particulars of:

(a) all transactions which appear to be contrary to the provisions of the

regulations, rules or the bye-laws of the co-operative society;

(b) all sums which ought to have been but not have been brought into

account by the co-operative society;

(c) the amount of any deficiency or loss which appears to have been incurred

by breach of trust, wilful negligence, misappropriation or fraudulent
retention of any money or property of any person;

(d) any transaction which appears to him to require further investigation;

(e) any of the assets which appear to be bad or doubtful; and

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

(6) The person who does the audit shall also state:

(a) Whether he had obtained relevant records/information which to the best of

his knowledge and belief were necessary for the purpose of his audit;

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16**

(b) Whether in his opinion proper books of accounts, as required by the

Regulation, rules and the bye-laws of the co-operative society have been
kept and regularly maintained by the co-operative society so far as it
appears from his examination of such records; and

(c) Whether the balance sheet and final accounts examined by him are in

agreement with books of accounts and returns of the co-operative society.

(7) Where any of the matters referred to in sub rule(6) are answered in the

negative or with a qualification, the person who does the audit shall specify in his
audit report the reasons for such facts and figures in support of such reasons.

(8) The auditor shall examine the monetary transactions of a society in so far

as may be necessary for the purpose of ascertaining whether there has been any
material impropriety or irregularity in the expenditure or in the realisation of
moneys due to the co-operative society and whether any transaction infringe any
provisions of the Regulation, Rules or bye-laws or any directions of the committee.
In case of difference of opinion between the auditor and the co-operative society in
regard to the propriety of any of its monetary transactions; the Registrar shall
decide the matter and his decision shall be final.

(9) The Registrar shall issue direction regarding treatment of certain assets as

bad and doubtful. Before proceeding to take action to write off any assets
considered bad all possible steps be taken by the committee to realise the same.
Any assets considered bad and irrecoverable may be written off by the general
body meeting; provided, any approval of the financing agency if any and the
Registrar is obtained before the writing off is made.

(10) After every audit, the Registrar shall grand to the concerned co-operative

society an audit certificate and copy of the audit report duly signed by him after
exercising the test audit wherever necessary. The Registrar may modify or
expunge any portion of the audit report which appear to him objectionable or not
justified by fact.

(11) The Co-operative society shall publish
(i) the audit certificate granted by Registrar under sub rule (10),

(ii) the statements showing the receipts and disbursements, profit and loss ]

accounts and the balance sheet in the manner specified by the Registrar and
shall keep them open for inspection by any member of the co-operative society.
The summary of defects as revealed by audit report shall also be read out in the
general body meeting of the co-operative society. A rectification of the report
based on the deliberations of the meeting on the defect pointed out in the audit
report shall be forwarded to the Registrar within three month of the receipt of the
report by the co-operative society. The Registrar may direct the co-operative
society or its officers to take such action, and within such time, as may be
specified by him, to remedy the defects disclosed in the audit.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16**

**_Explanation: - (i) For the purpose of this chapter, audit shall include annual or_**
periodical audit, continuous or concurrent audit and test or super audit and reaudit.

(ii) For the purpose of this rule: A person authorised” means

***(a) A person who is serving in the Co-operative Department of this Union**

Territory and authorized to audit the accounts of the Co-operative Societies.

***(b) A person who holds a Higher Diploma in Co-operation or Diploma in Co-**

operative Audit or Co-operative Management or Degree in Cooperation or
Degree in Commerce and whose name is included in the panel of certified
auditors of Co-operation Societies maintained in the office of the Registrar of
Co-operative Societies.

***** In the said rules the following provisions shall be inserted as item(C) after item**
(b) under explanation (ii) of rule 51 :
“(C) an ‘Accountant’ means a Chartered Accountant whose name is included
in the panel of certified Auditors of Co-operative Societies maintained in the
Registrar’s Office”

****** (12) Every registered Co-operative Society shall pay to the Government for**

the audit of accounts conducted by the Co-operative Department for each Cooperative year in accordance with the scale prescribed in respect of class of
society as under:
i). The audit fee to be levied on a Co-operative Society shall not exceed

Rs.25,000/- that the minimum fee payable by the society shall be Rs.250/- in a
Co-operative year.

ii). The scale of audit fees payable by the societies are as follows:
a). The Co-operative Societies dealing in consumer goods shall pay audit fee at

the rate of Rs.0.25 paise per every hundred rupees or part thereof on their
sale in a co-operative year.

***** (Item (a) under explanation (ii) of rule 51 substituted vide A&N Administration,
**Secretariat’s vide Notification No. F.No.30-51/94/Dev.I(Coop) dated 21.08.1997,**
**A&N Islands Co-operative Societies (Amendment) Rules 1974)**

**** (the explanation (ii) (b) substituted in sub-rule 11 of rule 51 of the principal rule**
**1974, vide Registrar of Co-operative Societies’ Notification No.267/F.No.RCS/26-**
**5/2009 dated 21.02.2011, A&N Islands Co-operative Societies (Amendment) Rules,**
**2010)**

(Item (C) inserted under explanation (ii) in sub-rule 11 of rule 51 vide A&N
**Administration, Secretariat’s Notification No. F.No.30-51/94/Dev.I(Coop) dated**
**21.08.1997, A&N Islands Co-operative Societies (Amendment) Rules 1974)**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

b). The audit fees to be levied in respect of Agricultural credit Co-operative

Societies shall be at the rate of Rs.0.10 paise per every Rs.100/- or part
thereof the working capital of the Institution.

c). The audit fees to be levied in respect of Thrift and Credit Co-operative

societies, Credit Co-operative and Co-operative Banks shall be paid at the
rate of Rs.0.25 paise per every Rs.100/- or part thereof of the working
capital of the institution.

d). The scale of audit fees leviable from Transport Printing, Industrial Co
operative Societies shall be at the rate of Rs.0.25 paise per every Rs.100/or part thereof the turnover of these societies in a Co-operative year.

e). The scale of audit fees leviable from Labour Contract, Fisheries, Milk,

Poultries Farming and other Agricultural Produces and Marketing Cooperative Societies, Co-operative Societies for tribal and weaker sections of
the Society shall be at the rate of Rs.0.10 paise per every Rs.100/- or part
thereof of the turnover of these societies in a co-operative year.

f). In respect of Housing Co-operative Societies the audit fees chargeable at the

rate of Rs.25/- per member upon the total member of these societies in
each co-operative year.

g). All other Co-operative Societies shall be required to pay audit fee at the rate

of 3% of the net profit earned by the societies in each co-operative year.

iii). Provided further that the scale of audit fees prescribed above shall not be

apart to those Co-operative Societies which are being classified as ‘D’ Class by the
Auditor and those Co-operative Societies which are being put under liquidation.
These types of Co-operative Societies are being exempted from payment of audit
fee.

iv). In respect of Co-operative Societies, authorisation of audit of which is given

to Chartered Accountants the rate of audit fee shall be negotiated by the
concerned Chartered Accountant with management of the concerned Co-operative
Society, subject to final approval of Registrar of Co-operative Societies in this
regard.

v). The audit fee payable by the Co-operative Societies whose audit is

conducted by the departmental officers so authorised shall be deposited in the
office of the Registrar of Co-operative Societies Andaman and Nicobar Islands and
the receipt against it should be obtained under TR.

******* (13). The Registrar may at his discretion remit in whole or in part the**

audit fees payable under clause (ii) of sub-rule (12) by the Society or a class of
societies for any year or for any specific period.

**(****Rule 12 and *****Rule 13 inserted after sub-rule (11) of Rule 51 vide A&N**
**Administration, Secretariat’s Notification No. F.No.30-51/94-Dev.I(Coop) dated**
**19.03.1999, A&N Islands Co-operative Societies (Amendment) Rules, 1999).**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**52. Procedure and Principles for conduct of Inspection and Inquiry: - (1) An**
order authorising inspection under section 49 or section 51 or any inquiry under
section 50 shall, among other things, contain the following:

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

(b) the name of the co-operative society whose affair are to be inspected or

inquired into;

(c) the specific point or points on which inspection or inquiry is to be made,

the period within which the inspection or inquiry is to be completed and
report submitted to the Registrar;

(d) cost of inquiry; and

(e) any other matter relating to the inspection or inquiry as may be considered

relevant by the Registrar.

(2) A copy of every order authorising an inspection under section 49 or

section 51 or an inquiry under section 50, shall be supplied to the federal cooperative society or societies to which the co-operative society in respect of which
the order is issued, is affiliated.

(3) If the inspection or inquiry cannot be completed within the time specified in

the order referred to in sub-rule (1), the person conducting the inspection or
inquiry shall submit an interim report stating the reasons for failure to complete
the inspection or inquiry in time and the Registrar, if he is satisfied with such
reasons may grant such extension of time for the completion of the inspection or
inquiry as he may deem necessary or he may withdraw the inspection or inquiry
from the person to whom it is entrusted and hold the inspection or inquiry
himself or entrust it to such other person as deems fit.

(4) On receipt of the order referred to in sub-rule (1), the person authorised to

conduct the inspection or inquiry shall proceed to examine the relevant books of
accounts and other documents in possession of the co-operative society or any of
its officers, members, agents or servants and obtain such information or
explanation from any such officer, member, agent or servant of the co-operative
society in regard to the transactions and working of the co-operative society as he
may deem necessary for the conduct of such inspection or inquiry.

(5) The person authorised to conduct inspection or inquiry shall submit his

report to the Registrar on all points mentioned in the order referred to in sub rule
(1). The report shall contain his findings and the reasons therefore duly supported
by such documentary or other evidence as recorded by him during the course of
his inspection or inquiry. He may also specify in his report the costs of inspection
or inquiry together with reasons and recommend to the Registrar the manner in
which the entire cost of part thereof may be apportioned amongst the parties. 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.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(6) The cost of the inspection or inquiry apportioned by the Registrar under

section 52 shall be recovered as provided for in section 53. The Registrar may
direct that such costs or any part thereof shall be paid in the first instance from
the funds of the co-operative society or in case of inspection, from the amount
deposited by the creditor under clause (b) of sub section (1) of section 51 and then
recovered and repaid to the co-operative society or the creditor, as the case may
be.

**_53. Requisition of the federal co-operative society for inquiry: - Any federal_**
co-operative society duly authorised by a resolution of its committee may submit
a requisition to the Registrar to hold an inquiry under section 50 in respect of any
co-operative 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.

**_54. Levy of audit fees and supervision charges: - (1) Every co-operative society_**
which is subject to levy of audit fee as prescribed shall remit such fees in the
mode specified by the Registrar within three months from the date of issue of
demand notice in this behalf.

(2) The Registrar may levy supervision charges payable annually, on or before

specified date, on all or any class of co-operative societies including the cooperative societies under liquidation at such rate as may be fixed by him with the
approval of Chief Commissioner.

(3) Such charges, or fees if not paid by the specified date, shall be recovered as

provided for in section 67.

(4) The Chief Commissioner may authorise the Registrar to grant total or

partial exemption from the payment of audit fee and / or supervision charges
assessed to any co-operative society or class of co-operative societies.

###### CHAPTER VII
 SETTLEMENT OF DISPUTES

**55.** **_Reference of Disputes: - When a party to any dispute referred to in sub-_**
section (1) of section 55 desires to have such dispute determined in accordance
with the said section, the party shall apply to the Registrar in writing, stating the
substance of dispute and the name and address of the other party, in such form
as the Registrar may lay down from time to time.

56. Arbitration Fee: - (1) The Registrar shall have power to require the person

referring a dispute under sub section (1) of section 55 to deposit in advance the
fee, if any, to be specified by the Registrar for deciding the dispute.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(2) The Registrar may, in such cases as he thinks fit, order the payment of fee

to the arbitrator. It the Arbitrator happens to be an employee of the co-operative
department, no fee shall be paid to him and the entire amount recovered towards
his fee shall be treated as Government revenue and credited to the Government
Account.

(3) No fee shall be payable to an arbitrator till the dispute referred to him is

finally decided.

(4) The Registrar, may, in his discretion, remit the whole or any part of the fees

under sub-rule (1)

**_57. Communication of date, time and place of hearing: - In an arbitration_**
proceeding, the Registrar or the arbitrator, as the case may be, shall
communicate the date, time and place of hearing of the dispute to all the parties
concerned.

**_58. Power to appoint Guardian for minor etc:- The Registrar or the arbitrator,_**
as the case may be, shall have power to appoint or remove a guardian for the
party to the dispute who is a minor or who by reasons of unsound mind or mental
infirmity, is incapable of protecting his interest.

**_59. Hearing of Disputes: - The Registrar or the arbitrator, as the case may be,_**
shall hear the parties and witnesses who attend. On the basis of such evidence
and after consideration of any documentary evidence that may be produced by
either party, he shall give a decision or award, as the case may be in accordance
with justice, equity and good conscience. The decision or award shall be reduced
to writing, announced to the parties and filed with the office of the Registrar. In
the absence of any party duly summoned to attend the dispute may be decided
exparte.

**_60. Cost of Arbitration: - The arbitrator or the Registrar, as the case may be,_**
shall have the power to order the expenses of determining a dispute or the cost of
either party to be borne by such party or parties to the dispute as he may deem
fit. The amount of advance, if any, deposited by the party concerned with the
arbitrator under rule 56 (1) shall, however, be adjusted against the cost so
determined and the balance amount will be payable by the party concerned.

**_61. Maintenance of record of Arbitration: - (1) The record of arbitration_**
proceedings shall be kept in such place and in such manner as the Registrar may
direct.

(2) A copy of decision or award shall, on application, be given to a party

interested in the dispute by the Registrar on payment of such fees as are laid
down in rule 82 of these rules.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

###### CHAPTER VIII

 WINDING-UP AND CANCELLATION

**62. Procedure to be followed by Liquidators: - (1) A liquidator appointed under**
section 58 shall as soon as order of winding-up of a co-operative society takes
effect publish by such means as he may think proper, a notice requiring all
claims against the co-operative society, the winding up of which has been
ordered, to be submitted to him within one month of the publication of the notice.
All liabilities recorded in account book of a co-operative society shall be deemed
_ipso facto to have been duly submitted to him under this sub-rule._

(2) The liquidator shall, after setting the assets and liabilities of the co
operative society as they stood on the date on which the order for winding up is
made, proceed next to determine the contribution to be made by each of its
members, past members or by the estates or nominees, heirs or legal
representatives of deceased members or by any officers or former officer to the
assets of the co-operative society under clauses (b) & (e) of sub section (2) of
section 59. Should necessity arise, he may, make a subsidiary order regarding
such contributions and such order shall be enforceable in the same manner as
the original order.

(3) The liquidator may at any time, call a meeting of the members or the

creditors or a joint meeting of the members and creditors and such meeting shall
be called, held and conducted at such time and place and in such manner as the
liquidator may deem fit.

**_63. Approval by Registrar of orders of Liquidator: - An order passed by the_**
liquidator under clause (b) of sub section (2) section 59 shall be submitted by him
to the Registrar for approval. The Registrar may modify such order or refer it back
to the liquidator for further inquiry or action.

**_64. Submission of Quarterly Report by Liquidator:- The liquidator shall_**
submit to the Registrar a quarterly report in such form as the Registrar may
specify showing the progress made in the liquidation of the co-operative society.

**_65. Deposit of Funds by Liquidator: - All funds in charge of the liquidator shall_**
be deposited with such institutions or person as the Registrar may approve.

**_66. Expenses incurred by Liquidator: - All expenses incurred in connection_**
with the winding up of the co-operative society shall be subject to the approval of
the Registrar.

**_67. Distribution of Assets: - The liquidator shall distribute the realised assets in_**
such manner and in such priority as the Registrar may direct.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**_68. Remuneration of Liquidator: - The remuneration fixed under section 58 (i)_**
shall be included in cost of liquidation which shall be payable out of the assets of
the co-operative society under liquidation in priority to all other claims.

**_69. Disposal of surplus Assets: - After discharging the liabilities of the co-_**
operative society and repayment of share capital, the liquidator may, utilize the
surplus assets, if any, for one or more of the following purposes namely:

(a) Deposit the amount in a co-operative bank until a new co-operative

society with similar area of operation and objects are registered when it shall be
credited to the reserve fund of the new co-operative society.

(b) any purpose connected with development of co-operative movement,

subject to the approval of Registrar;

(c) an object of public utility selected with due regard to the wishes of the

members and approved by the Registrar.

**_70. Liability due to claimants whose whereabouts not known:- If any liability_**
cannot be discharged by the liquidator owing to the whereabouts of the claimants
being not known or for any other cause, the amount covered by undischarged
liability may be deposited in the co-operative bank, having jurisdiction over the
area in which the co-operative society was functioning and shall remain at the
disposal of the claimant for a period of three years after which the undrawn
amount, if any, may be transferred to the State Co-operative Union for credit to
the co-operative education fund.

**_71. Removal of Liquidators: - A Liquidator may at any time be removed by the_**
Registrar and he shall on such removal hand over all the properties and
documents relating to the co-operative society under liquidation to such persons
as the Registrar may direct.

**_72. Maintenance of Accounts by Liquidators: - The liquidator shall keep such_**
books and accounts as may be laid down by the Registrar from time to time. The
Registrar may at any time cause such books and accounts to be audited.

**_73. Final Report by Liquidator: - The liquidator shall after meeting the_**
liabilities of the co-operative society submit a final report to the Registrar in such
form as may, from time to time, be specified by the Registrar.

**_74. Disposal of Records: - All the books and records of a co-operative society_**
whose registration has been cancelled may be destroyed under the orders of the
Registrar, after the expiry of a period of three years from the date of such
cancellation.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

###### CHAPTER IX

 EXECUTION OF AWARDS, DECREES,
 ORDERS AND DECISIONS

**75. Manner of service of notice:- A notice under the provision to section 62**
shall indicate the substance of the demand or debt due to the co-operative society
and shall be served in the manner laid down for the service of summons in subrule (3) of rule 78. No order under section 62 shall be made until a period of thirty
days has expired from the date of service of the notice.

**76. Procedure in execution of awards etc.- (1) Any decree holder requiring the**
provisions of clause (b) of section 63 to be applied shall apply to the Recovery
Officer within whose jurisdiction the defaulter resides of the property of defaulter
is situated.

(2) Every such application shall be made in the form specified by the Registrar

and shall be signed by the decree holder. The decree holder may indicate whether
he wishes to proceed against any immovable property mortgaged to the decree
holder or other immovable property or secure the attachment of movable property.

(3) On receipt of such application, 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 certificate in writing
in duplicate in the form specified by the Registrar, setting-forth the name and
address of the defaulter and the amount due and forward the same to a sale
officer.

(4) Unless the decree holder has expressed a desire that proceedings could be

in a particular order as laid down in sub-rule (2) the execution shall ordinarily
take place 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
amount of decree, the immovable property mortgaged to the decree holder or
other immovable property belonging to the defaulter may be proceeded against.

(5) In the seizure and sale of immovable property the following procedure shall

be observed:
**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(a) The Sale Officer shall, after giving previous notice to the decree holder,

proceed to the village or locality where the defaulter resides or the property
to be distrained is situated and serve a demand notice to the defaulter if he
is present. If the amount due together with the expenses is not at once
paid, the Sale Officer shall make the distress and shall immediately deliver
to the defaulter a list or inventory of the property distrained and intimation
of place and day and hour at which the distrained property will be brought
to sale if the amount due are not previously discharged. If the defaulter is
absent the Sale Officer shall serve the demand notice on some adult
member of his family or on his authorised agent or when such service
cannot be affected, shall affix a copy of the demand notice on some
conspicuous part of the place where he ordinarily resides or carries on
business. He shall then proceed to make the distress and shall fix the list
of the property attached on some conspicuous part of the place where the
defaulter ordinarily resides or carries on business endorsing thereon the
place where the property may be lodged or kept and an intimation of the
place, day and hour of sale thereof.

(b) After the distress is made, the Sale Officer may arrange for the custody of

the property attached with the decree holder or otherwise. If the Sale
Officer requires the decree holder 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 decree holder. If the attached
property is livestock, the decree holder shall be responsible for providing
the necessary food for such livestock. The Sale Officer may, at the interest
of the defaulter or any person claiming and interested to any such
property, live in the village or place where it was attached in the charge of
such defaulter or person if he enters into a bond in the form specified by
the Registrar with one or more solvent sureties for the production of the
property, when called for.

(c) The distress shall be made after sun rise and before sun set and not at any

other time.

(d) The distress levied shall not be excessive, that is to say the property

distrained shall be as nearly as possible proportionate to the sum due from
the defaulter together with interest and all expenses incidental to the
distraint, detention and sale.

(e) If crops or un-gathered 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 discretion may cause them to be reaped or gathered in
due seasons or time and stored in proper place until sold. In the later case,
the expenses of reaping or gathering and storing of 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.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(f) The Sale Officer shall not work the bullocks or cattle or make use of goods

or effects distrained and he shall provide the necessary food for the cattle
or live stock, the expenses 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 in 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
any property belonging to a defaulter lodged therein provided always that it
shall not be lawful for the officer to break open or enter apartment in such
dwelling house for the Zenana or residence of women except as here-inafter provided.

(h) Where the Sale Officer has reason to believe that a property of a defaulter

is lodged within a dwelling house, the outer door of which is shut or within
any apartments appropriated to women which by custom or usage are
considered private, the Sale Officer shall represent the facts to the officerin-charge of the nearest police station. On such representation, the officerin-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 in like manner as he may break open the door of any room
within the house except the Zenana. The Sale Officer may also in the
presence of a police officer and after giving due notice for the removal of the
women within a Zenana and after furnishing the means for their removal in
a suitable manner if they be women who according to the custom and
usage cannot appear in public, enter the Zenna 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 apartment 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 the time and place of the intended sale to be made by beat
of drum in the village or locality in which the defaulter resides and in such
other place or places as the officer may consider necessary to give due
publicity to the sale. No sale shall place until after expiration of the period
of fifteen days from the date on which the sale notice has been served or
affixed in the manner indicated 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 fifteen
days, unless the amount due is sooner paid.

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

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

Provided that it shall be open to the Sale Officer to decline to accept the highest

bid where the price offered appear to be unduly low or for other reasons. Where
the property is sold for more than the amount due the excess amount, after
deducting the interest and expenses of process or/and 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 date and hour recording his reasons for
such adjournment. Where the sale is so adjourned for a longer period than seven
days, a fresh proclamation shall be made unless the defaulter consents to waive
it.

(k) The property shall be paid for in cash at the time of or as soon after as the

Sale officer shall appoint and the purchaser shall not be permitted to carry
away any part of the property until he has made payment thereof in full.
Where the purchaser fails in the payment at purchase or bid money, the
property shall be resold.

(l) Where it is proved 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 such property to be restored forthwith 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 any interest in the property attached,
pays the full amount due including interest and / or other costs incurred
in attaching the property, the Sale Officer shall cancel the order of
attachment and release the property forthwith.

(n) The movable property mentioned as exempted from attachment in the

provision to sanction 60 of the Code of Civil Procedure, 1908 (5 of 1908)
shall not be liable to attachment or sale under these rules.

(6) Where the movable properties to be attached is the salary or allowance or

wages of a public officer or of a servant of a local authority or a firm or a company
or any other institution, the Recovery Officer may on receiving a report from the
Sale Officer, order the employer concerned that the amount shall subject to the
provision of section 60 of Code of Civil Procedure, 1908 (5 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 the notice of the order,
the officers or employer shall with-hold and remit to the 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 a share or interest of the

defaulter in movable property belonging to him and another as co-owner, 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.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(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 officer of the Recovery
Officer ordering the attachment and be held subject to his further order.

(iii) Where the property to be attached is in the custody of any court or public

officer, the attachment shall be made by a notice to such court or officer
requesting that such property or any interest or dividend becoming payable
hereon may be held subject to further orders of the Recovery Officer issuing the
notice;

Provided that where such property is in the custody of court, any question of

title or priority arising between the decree holder 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 determined by such court.

(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 by the order of the Registrar if the decree sought to be attached is under
section 56 or by an arbitrator.

(ii) Where the property is to be attached is 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.

(iii) The holder of a decree attached under this sub-rule shall give the

Recovery Officer executing the decree such information and aid may reasonably
be required.

(iv) 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 sub order to the defaulter bound by the
decree attached, and no payment of adjustment of the attached decree made by
the defaulter is contravention of such order after receipt of notice thereof, either
through the said Recovery Officer or otherwise, shall be recognised so long as
attachment remains in force.

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

(a) a debt due to the defaulter in question; or

(b) a share in the capital of a corporation or a deposit invested there in; or

(c) other movable property and in the possession of the defaulter, except

property deposited in or in the custody, of any civil court, the attachment
shall be made by a written order signed by the Recovery Officer prohibiting;

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(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 or deposit, the person in whose name the share or

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 not in the possession of the

defaulter, 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 debt, to the debtor in the

case of share or deposit to the proper officer of the corporation and in the case of
the movable property except as aforesaid to the person in possession of such
property. As soon as debt referred to in clause (a) or the deposit referred to in
clause (b) above mature, the Recovery Officer may direct the person concerned to
pay the amount to him. Where the share is not withdrawable, the said Recovery
Officer shall arrange for its sale through a broker. Where the share is
withdrawable, its value shall be paid to the Recovery Officer or to the party
referred to in clause(e) the person concerned shall place it in the hands of the said
Recovery Officer as it becomes deliverable to the defaulter.

(10) The immovable property shall not be sold in execution of a decree; unless

such property has been previously attached;

Provided that 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 without attachment of immovable property, the

following procedure shall be observed:

a) The application presented under sub rule (i) 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
number and specification of the defaulter's share or interest in such
property to the best of the belief of the decree holder 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, the time allowed for payment in case of non-payment the particulars of
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 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.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

Provided that where the Recovery Officer is satisfied that a defaulter with

intent to defeat or delay the execution proceedings against him is about to dispose
of the whole or part of his property, the demand notice issued by the Recovery
Officer under sub-rule (3) shall not allow any time for 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 manner specified below.

d) Where attachment is required for sale, the Sale Officer shall if possible cause

a notice of attachment served on the defaulter personally. Where personal
service is not possible, the notice shall be affixed in some conspicuous part
of the defaulter's last known residence, if any. The fact of attachment shall
also be proclaimed by the beat of drum or other customary mode at some
place on or adjacent to such property and such other place or places as the
Recovery Officer may consider necessary to give due publicity to the sale.
The attachment notice shall be set forth that unless the amount due with
interest and expenses if any, be paid within the date therein mentioned the
property will be brought to sale. A copy thereof shall be sent to the decree
holder. Where the Sale Officer so directs, the attachment shall 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 Tehsil Office in which the property is situated at
least thirty days before the date fixed for the sale and also by beat of drum
in the village or locality 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 decree
holder and the defaulter. The proclamation shall state the time and place of
sale and specify as fully and accurately as possible :
(i) the property to be sold;

(ii) any in-cumbrance 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 the value of
the property.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

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 decree holder
shall, when the amount for the realisation of which the sale is held exceeds
rupees one hundred, 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 or Revenue Department for a period of not less
than twelve years prior to the date of the attachment of the property sought
to be sold, or in case falling under the provision to sub-rule (10), prior to the
date of application for execution. The time for the production of
encumbrance certificate may be extended at the discretion 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 the Sale
Officer to decline to accept the highest bid where price offered appears to be
unduly low or for other reasons and provided also 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 seven 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 the notice of the proclamation was affixed in the office of the
Recovery Officer. The time and place of the sale shall be fixed by the
Recovery Officer and the place of sale shall be the village or locality, where
the property to be sold is situated or such adjourning prominent place of
public resort as may be fixed by the said Recovery Officer;

Provided that in cases where an encumbrance certificate is not obtainable

owing to destruction of the connected records, an affidavit from the village Patwari
in regard to the encumbrances known to him supported by a certificate from the
Registration Department or Revenue Department that the encumbrance 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 fifteen percent 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
be forthwith resold;

Provided that where the decree holder 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 rule;

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;

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

Provided that the time for the payment of cost of the stamp may, for good

and sufficient reasons, be extended at the discretion of the Recovery Officer upto
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 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 the clause (h) within the period allowed for such payments
shall be made, after the issue of the first proclamation in the manner and for
the period hereinbefore prescribed for the sale.

k) Where a decree holder purchase the property, the purchase money and the

amount due on the decree shall be set off against one and other and the
Sale Officer shall enter up satisfaction of the decree in whole or in part
accordingly.

(12) Where prior to date fixed for a sale, a defaulter or any person acting on his

behalf or any person claiming any interest in the property sought to be sold,
tenders payment of the full amount due together with interest, travelling and
other expenses incurred in bringing the property to the sale including the
expenses of attachment, if any, the Sale Officer shall forthwith 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 five percent of the purchase
money; and

b) for payment to the decree holder, 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 decree
holder.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(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 five percent 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 authorized
to set aside the sale, shall be accepted.

(iii) If a person applied 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 decree holder or any person entitled to share in a rateable
distribution of assets or whose interest are affected by the sale may apply to the
Recovery Officer to set aside the sale on the ground of a material irregularity 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 injury 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 sale.

(iii) On the expiration of thirty day 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 order confirming the sale;

Provided that if he shall have reason to think that the sale ought to be set aside

notwithstanding that no such application has been made or on ground other than
those alleged in any application which has been made and rejected may, after
recording his reasons in writing set aside the sale.

(iv) 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 name of the purchaser and it shall be
conclusive evidence of the fact of the purchase in all court 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.

(15) Where any lawful purchase of immovable property is resisted or prevented

by any person other than any 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 purchase, any court of competent
jurisdiction, on an application and production of the certificate of sale provided
for sub-rule (14), shall cause the proper process to be issued for the purpose of
putting such purchase in possession in the same manner as if the immovable
property purchased had been decreed to the purchaser by a decision of the court.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(16) It shall be lawful for the Sale Officer to sell the whole or any portion of

immovable property of a defaulter in discharge of money due;

Provided always 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, if any, of attachment and sale.

(17) Where an attachment has been made under these rules, any private

transfer or delivery of property attached or of any interest therein and any
payment to the defaulter of any debt, dividend or any other money contrary to
such attachment shall be void as against all claims enforceable under the
attachment.

**Explanation: - For the purpose of this sub-rule claims enforceable under**

an attachment include claims for the rateable distribution of assets under subrule (24).

(18) Persons employed in serving notice or other process under these rules

shall be entitled to travelling allowance as admissible under the rules in force if
he is a Government Servant and to others, at the rates, approved and fixed by the
Registrar in consultation with the Recovery Officer from time to time.

(19) Where the cost and charges incurred in connection with the 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 decree holder, such excess shall be deducted from the sale
proceeds of the property sold or the money paid by the defaulter as the case may
be and the balance shall be made available to the decree holder.

(20) Every person making a payment towards any money due for the recovery

of which application has been made under the rule shall be entitled to a receipt
for the amount duly signed by the Sale Officer or any 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.

(21)(a) Where any claim is preferred or objection 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 off on merit.

Provided that no such investigation be made when the Sale Officer consider

the claim or objection to be 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 the objection.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(c) Where a claim or an objection is preferred, the party against whom an order

is made may institute a suit within six months from the date of the order to
establish the right which he claims to the property in dispute, but, subject
to the result of such suits, if any, the order shall be conclusive.

(22) (i) Any deficiency of price which may happen on a resale held under clause

(j) of sub-rule(11) by reasons of the purchaser's default and all expenses arising
out of such resale be certified by the Sale Officer to the Recovery Officer and shall
at the instance of either the decree holder or the defaulter, be recoverable from
the defaulting purchaser under the provisions 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, self for a higher price than at

the first sale, the defaulting purchaser at the first sale shall have no claim to the
difference or increase.

(23) Where any property has been attached in execution of a decree, but by

reason of decree holder's default the Recovery Officer is unable to proceed further
with 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.

(24) (a) Where the Sale Officer attaches or has attached under these rules, any

proper 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 objection to the attachment
thereof;

Provided that where the property is under attachment in execution of decree

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

(b) Where assets are held by the Sale Officer and before receipt such assets,

demand notice in pursuance of applications of execution of decree against
the same defaulter have been received from more than one decree holder and
decree holders have not obtain satisfaction, the assets after deducting the
cost of realisation, shall be rateably distributed by the Sale Office among-all
such decree holders in the manner provided for in section 73 of the Code of
Civil Procedure of 1908 (5 of 1908).

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(25) 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 provisions of this rule shall, save as otherwise
provided in this sub-rule, apply as if such legal representatives were defaulters.
Where decree is executed against such legal representative, he shall liable only to
the extent of the property of the deceased which has come to his hands and has
not been duly disposed of and for this purpose, such legal representative shall
produce such accounts in respect of such property to the satisfaction of the
Recovery Officer as he thinks fit.

(26) Where is connection with proceedings on an application under section 63

of the Regulation, any person requires the issue of any process or objects to any
process issued or objects to any orders passed, he shall pay such fee as may be
specified by the Registrar in this behalf.

**77. Delegation of power under section 65 :- The powers of the Registrar under**
section 65 shall not be exercised by an officer below the rank of Assistant
Registrar.

**78. Mode of service of Summons:- (1) Every summon issued under Regulation**
shall be in writing, shall be authenticated by sale, 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. IT shall require the person summoned to appear before
the said officer at a specified time and place and to give evidence or produce
documents or for both purposes, and any particular document, the production of
which is required, shall be described in the summons with reasonable accuracy.

(2) Any person may be summoned to produce a document, without being

summoned to give evidence, and any person summoned merely to produce
documents 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.

(3) The service of summons under the Regulation on any person may be

effected in any of the following ways:
(a) By giving of tendering it to such 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 seeding it to his by registered post; or

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

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(4) Where the serving officer delivers or tenders copies of the summons to the

dependent personally or to an agent or other person on his behalf, he shall
require the signature of the person to whom the copy is so delivered or tendered
to give an acknowledgement of service duly endorsed on the original summons.

(5) The serving officer shall in all cases in which the summon has been served

under sub-rule (4) endorse or annex, or cause to be endorsed or annexed, on or to
the original summon a return stating the time and the manner in which the
summon was served and the name and the address of the person, if any,
identifying the person served and witnessing the delivery or tender of the
summon.

(6) Where the party to be summoned is a public officer or is the servant of a

company or local authority of any institution, the officer issuing the summons
may, if it appears that the summons may be conveniently so served, send it by
registered post pre-paid for acknowledgment for service on the party to be
summoned to the head of the office in which he is employed, together with the
copy to be served endorsed on the original summon.

###### CHAPTER X
 MISCELLANEOUS

**79. Procedure regarding appeals:- (1) An appeal under the Regulation shall be**
presented by the appellant or by his duty appointed agent.

(2) When such an appeal is presented by an agent, it shall be accompanied by

a letter of authority of 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 opposite party, 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.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(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 the appeal and satisfy itself that:
(i) the person presenting it has the authority to do so;

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

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

(6) If the appellant authority finds that the appeal presented does not conform

to any of the said provisions, it shall make a note on the appeal in that effect and
may call upon the appellant or his agent to remedy the defects within a period of
7 days of the receipt of the notice to do so or in case, the appeal has not been
presented within the prescribed time limit, to show cause within the said period of
7 days why it should not be dismissed for being time barred.

(7) If the defect is remedied on the cause shown by the appellant or his agent

satisfies the appellant 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 appellant authority within the said period, the Appellate
authority may dismiss the appeal.

(9) In case, where it is considered expedient to give a hearing, the appellate

authority may fix a date for hearing of which due notice shall be given to the
appellate or his agent and the opposite party.

(10) On the date so fixed, the appellate authority shall go through the relevant

papers, hear the parties present, and pass suitable order on the appeal.

(11) The appellate authority may, at its discretion adjourn to any other day, the

hearing of any appeal at any stage.

(12) Where the hearing of the appeal is completed, the Appellate authority shall

announce its judgement forthwith or may fix a date for the same after due notice
to the Appellant or the other parties to the appeal.

(13) 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 likely to be affected by the decision or the
order.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**80. Returns to be submitted by co-operative societies :- The Registrar may lay**
down the returns to be submitted by a co-operative society and provide for the
persons by whom and the form is which such returns shall be submitted. If a
society fails to comply with the directive within a reasonable time, the Registrar
may have the returns completed at the expenses of the society.

**81. Inspection of Documents:- Any member of the public shall be permitted on**
payment of fee of one rupee for each occasion to inspect, for any lawful purpose,
any public document exclusive of public document privileged under section 123,
124, 128 or 131 of the Indian Evidence Act, 1872 (1 of 1872), filed in the office of
the Registrar of Co-operative Societies and in particular the following documents,
namely;

(1) The Registration Register.

(2) The Registration certificate of the society,

(3) The Registered bye-laws of a society and amendment affected to such bye
laws.

(4) An order cancelling the registration of a society.

(5) An order directing the liquidation of a registered society.

(6) The annual accounts of a society.

(7) Any decision of the Registrar or award of arbitrator.

**82. Fees for copies of public documents :- Notwithstanding anything contained**
in the Court Fees Act 1870 (7 to 1870), as amended in its application to the Union
Territory of the Andaman and Nicobar Islands, the fees prescribed for certified
copies of any public document which any person has under the proceeding rule a
right for inspection shall be as follows:
(1) For Registration Certificate  - Rs. 5/
(2) In the case of other documents,

a sum calculated at the following rates:
(i) For first two hundred words or under - Rs.1/
(ii) Every additional hundred words or
fraction thereof        - Paise 50

**83. Forms of order and award:- The award of an arbitrator shall be in the form**
given in appendix "I" and the order of a liquidator under clause (b) or (e) of subsection (2) of section 59 in the form is the appendix "J".

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**84. Special Rule:- (1) Notwithstanding anything contained in these rules, the**
procedure in this rule shall apply to co-operative society whose working capital
exceeds rupees 50,000/
(i) At least 15 days clear notice, specifying the date, place, time and agenda

for a meeting of a general body or committee and at least seven days clear notice
for a meeting of any smaller body set-up by either of them, whether convened by
the Registrar or the President or otherwise of such co-operative society, shall be
given to all the members of the general body committee or smaller body, as the
case may be;

Provided that a shorter notice may be, given to all the members of the

general body or committee or smaller body, as the case may be with the
permission of the Registrar or under his direction.

(ii)(a) The Registrar may on his own motion or on a reference made to him,

declare the proceedings of a meeting referred to in clause (i) as invalid, if he is
satisfied that the meeting was held without a proper notice or without all the
members having received the notice for the meeting or if the meeting was not
conducted at appropriate place and time; and

(iii) No matter shall, except with the permission or direction of the Registrar, be

considered in a meeting of a general body/committee or in a meeting of a smaller
body set-up by either of them, unless that matter is specifically included in the
agenda which is circulated to all members at least fifteen clear days or seven days
in advance, respectively.

(iv) Should a difference of opinion in respect of any matter arise between

nominated member of the committee and other members thereof the opinion of
the nominated member shall be recorded in the minutes of the proceeding of the
meeting in the words of the nominated member and the proceeding shall also be
got signed by nominated member.

The Chairman shall, as soon as possible, make a reference to the Chief

Commissioner and if no reference is made within seven days of the date of the
meeting, the Registrar may on the receipt from a nominated member make a
reference to the Chief Commissioner for getting his decision.

(2) In a co-operative society in which shares has been subscribed by the

Government and of which another co-operative society is a member, the
Registrar may after such inquiry as he may deem fit and after giving the
person concerned a reasonable opportunity of showing cause, remove any
member of committee who has been guilty of any act of omission or
commission resulting in financial loss of the co-operative society.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

**_85. Bar on voting by members nominated by the Chief commissioner on_**
**_pertain matters:- The members nominated by the Chief Commissioner to a_**
committee of a co-operative society under clause (a) of sub-section (2) of section
26 shall not vote in the election of the office bearers of the co-operative society.

**86. Repeal :- As from the commencement of this Rule the Andaman and Nicobar**
Co-operative Societies Rules, 1926 shall stand repealed;

Provided that such repeal shall not;

(i) Affect the previous operation of the rules so repealed or anything
duly done or suffered thereunder;

(ii) Affect any right, privilege, obligation or any liability acquired,
accrued or incurred under the rules so repealed;

(iii) Affect any investigation, legal proceeding or remedy in respect of any
such right, privilege, obligation or liability;

Provided further that subject to the proceeding provision anything done or

any action taken under the rules so repealed, shall in so far as it is not
inconsistent with the provisions of these rules be deemed to have been done or
taken under the corresponding provisions of these rules and shall continue in
force accordingly, until it is superseded by anything done or any action taken
under these rules.

###### APPENDIX "A"
 (See Rule 37)

### APPLICATION FOR REGISTRATION OF
 A CO-OPERATIVE SOCIETY

We, the undersigned, hereby apply for the registration of a co-operative

society; as proposed hereunder, under section 8(1) of the Andaman and Nicobar
Islands Co-operative Societies Regulation 1973 and enclose herewith three copies
of the bye-laws as required by rule 4 of the Rules made thereunder.

1. Name of the proposed co-operative society:

2. Class of co-operative society and liability:

3. Address to be Registered:

4. Area of operation:

5. Main Objects:

6. Number of members joining at present:

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

7. Area mortgaged by members joining (in case of service societies)

8. Capital with details of shares, deposits, fees etc.,:

9. Value of shares and mode of payment:

10. Names of members of Ad-hoc Committee, if any:

11. Name of applicant for purpose of correspondence by the Registrar  (see

rule 3)


Name and

Father's

name


Age Occupation Place of

residence
(Village &

P.O)


Number of

shares

(Subscribed)


Signature


1 2 3 4 5 6

###### APPENDIX "B"
 (See Rule 8)

 PART – 'A'

1. Special general meeting of a co-operative society may be called from time to

time by the committee or by an officer of a co-operative society under the direction
of the committee.

2. Special general meeting of a co-operative society shall be called by the

committee on the receipt of a requisition for such a meeting from one fifth of the
total number of members.

3. If, on the receipt of the requisition referred to in the preceding rule, the

committee fails, within a reasonable time to call special general meeting, the
signatories of the requisition may refer the matter to the Registrar, who may, if he
think fit, summon the general meeting.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

4. A special general meeting called by the Registrar or any person authorised

by him in writing shall be held in such manner and at such time and place as
may be directed by him.

5. When the Registrar or any person authorised by him calls a special general

meeting of the co-operative society, the mater for the consideration for such a
meeting may also be laid down by him and such matter shall be considered at the
meeting so called.

6. If at a general meeting or special general meeting, there is no quorum

within one hour of the time fixed for the meeting, it shall be adjourned and fresh
general meeting or special general meeting, as the case may be, shall be reconvened, after giving due notice. If at the re-convened meeting also, there is no
quorum within one hour of time appointed for the meeting, then at the end of one
hour members present shall constitute quorum.

7. Every resolution at general meeting or special general meeting shall be

passed by the majority of votes of the members present.

###### PART – 'B'

1. A meeting of the committee shall be called by the President or Chairman or

the Secretary as the case may be, or such officer of the Co-operative Society as
may be specified in the bye-laws.

2. Any three or one third of the total members of the committee whichever is

less, may, in writing, request the president or the chairman as the case may be, of
the co-operative society to summon a special meeting of the committee and may
propose items which shall be considered in such meeting. On receipt of such a
requisition, the president or chairman shall convene a meeting of the committee.
If within seven days of the receipt of the requisition, the president or chairman
fails to summon the meeting, the Registrar, on the application of the signatories
of the requisition, may summon a meeting of the committee after giving due
notice to all the members as may be required under the rules or bye-laws.

###### PART – 'C'

The quorum at a general or a special general meeting shall be one-forth of

the total number of members or fifty whichever is less. The quorum at a
committee meeting shall be one-third of the total number of the committee
members.

###### PART – 'D'

The Registrar or his representative may attend any meeting of the

committee of the co-operative society at any time but shall not have the right to
vote, unless permitted under the bye-laws.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

###### APPENDIX "C"
 (See Rule 13 (1))

 Notice under Rule 13(1)

By Registered Post A/D
To

The Chairman/Secretary

..........................Co-operative Society,

.........................

Sir,
It appears to me that an amendment/amendments of the bye-laws of your

society as indicated in the attached statement is /are necessary and that it/those
is/are desirable in the interest of your society.

I am so request your to consider this/these amendment/amendments in

the interest of your society and to call upon by this notice under rule 13(1) of the
Andaman and Nicobar Co-operative Societies Rules, 1974 ........... to take
necessary steps to make a amendment to the bye-laws of your society within .....
days from the date of receipt of this notice, failing which action will be taken as
provided under section 10(6) of the Andaman and Nicobar Co-operative Societies
Regulation, 1973.

Yours faithfully,

Registrar of Co-operative

Societies

No..............
Date ...........
(Seal of the Officer)

###### Statement accompanying notice under Rule 13(1)


Sl.
No.


The exact wording
of existing bye-laws


Bye-laws, as it
would read after
amendment


Exact wording
of bye-law, if it
is a new one


Reasons why
amendment is
considered
necessary


Registrar of Co-operative Societies

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

###### APPENDIX "D"
 (See Rule 14 (4)

 Notice under Rule 13 (3)

To

The Chairman,

..................Co-operative Society,

...............

Sir,
Whereas you were called upon to make amendment to the bye-laws of your

society as per this office notice No............. dated .............

And whereas you have failed to make the amendment within the time

specified therein;

Now, therefore, you are hereby called upon to show cause in writing within

........... days from the date of receipt of this notice as to why proposed

amendment of your bye-laws as indicated in this office notice referred to above

should not be registered. If you desire to be heard in person, you may attend or

send your representative duly authorised on ......... at .......am/pm in my office

and put your defence if any, before me.

If you fail to send your written statement or your representative on the date

specified above or if your statement is found to be unsatisfactory, necessary

further action according to the provision of section 10(6) of the Andaman and

Nicobar Co-operative Societies Regulation, 1973, will be taken.

Yours faithfully,

Registrar of Co-operative Societies,

....................

No..............

Date ...........

Place ..........

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

###### APPENDIX "E"
 (See Rule 16 (3)

Notice to members, creditors and other persons whose interests will be affected by

the amalgamation/transfer of assets and liabilities/conversion /division of Co-operative
Societies.

Notice is hereby given as required under sub-section(4) of section 13 of the

Andaman and Nicobar Co-operative Societies Regulation,1973 by the ..............................
Society registered under No. ................ dated ............ and having its registered office at
.................... to all members/creditors/persons interested that the society, after obtaining
the approval of the Registrar and a preliminary resolution to that effect having been
passed by a special general body meeting of the society held on ........, has decided to
amalgamate itself with ................ society, convert itself into ................. society; divide
itself into (i) ........... (ii) ........ societies, transfer its assets and liabilities to ..............
society. The details regarding transfer of the liabilities of society to be amalgamated,
transferred or divided are given in the schedule below:

###### SCHEDULE

I. Applicable to co-operative societies amalgamating/transferring assets and
liabilities:(1) Name of the Co-operative Society or Co-operative Societies;
(2) Statement showing the assets and liabilities of the society (to be enclosed);
(3) Names of the members and creditors

NB:- Information should be given separately in respect of each co-operative society

which is affected by the amalgamation, transfer of assets and liabilities.

II. Applicable to the co-operative societies to be divided:(1) Name of the Co-operative Society;
(2) Present area of operation;
(3) Statement showing assets and liabilities (to be enclosed);
(4) Name of members ;
(5) Names of creditors.

III. Applicable to Co-operative Societies which will stand divided:
Particulars of (1) .......................Society.

(i) Assets and liabilities which will remain with the co-operative society after
division (Statement to be enclosed).

(ii) Proposed area of operation.

(iii) Names of members who will remain with the co-operative society.

(iv) Names of creditors who will remain with the society.

Particulars of (2) .......................Society.

(i) Assets and liabilities which will remain with the co-operative society after
division (Statement to be enclosed).

(ii) Proposed area of operation.

(iii) Names of members who will remain with the society

(iv) Names of creditors who will remain with the Co-operative society.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

Any person whose interest is affected by the proposed amalgamation, transfer of

assets and liabilities or division may send his objections, if any, and give intimation to his
option to become a member of any of the new Co-operative Societies / continue his
membership in amalgamated co-operative societies to demand payment of share or
interest or dues, to the office of the co-operative society within one month from the date of
this notice.

If no option is exercised and if no objection is received within one month, it will be

assumed that the interested persons have assented to the decision.

Place......... Secretary,

Date ......... By order of the Board/Managing Committee

###### APPENDIX "F"

 (See Rule 27)

 PART – 'I'

 General Rules for election of committee.

**_1. Definition:- In this appendix, unless the context otherwise requires:-_**

(a) **ELECTION means election to the committee.**

*** (b) RETURNING OFFICER means any person appointed by the Registrar or**

appointed by an authorized officer by a special or general order;

EXPLANATION:- (i) For the purpose of this rules “a person appointed”

means – a person serving in Co-operative Department of the Union
Territory or serving Gazetted Officer of the A&N Administration or a retired
Gazetted Officer or a retired Official of the Co-operative Department or any
other retired Official/Officer of any department of the A&N Administration.

(ii) In case of the appointment of election officials other than officials of the
Co-operative Department, the Registrar may prescribe the scale of
honorarium to be paid to the election Officials engaged for conducting
elections to the concerned co-operative society with prior approval of the
Lt. Governor (Administrator), A&N Islands.

*** (In the principal rule, 1974, the existing provision against 1(b) of Part-I**
**Appendix –F to the Rule 27 substituted vide Registrar of Co-operative**
**Societies’ Notification No.267/F.No.RCS/26-5/2009 dated 21.02.2011, A&N**
**Islands Co-operative Societies (Amendment) Rules, 2010)**

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(c) **PRESIDING OFFICER means a person appointed by the Returning Officer**

to be in-charge of the polling station for the purpose of election;

(d) **MANAGER means any person appointed as such by the Registrar for the**

purpose of the provisions contained in this appendix and if no such
person is appointed, then the head of office of a co-operative society, by
whatsoever name called, to whom the management of the co-operative
society is entrusted;

(e) **VOTER means any person entitled to vote under these rules;**

(f) **REPRESENTATIVE means an elector who is authorised to vote on behalf**

of a co-operative society; and

(g) **CANDIDATE** means a voter who files his nomination papers to seek

election as a member of the committee of a co-operative society.

2. **_Qualification of candidate:- No person shall be eligible for election as a_**

member of the committee if he is subject to any disqualification mentioned in the
Regulation and the Rules and bye-laws framed thereunder.

3. **_Voting:- The election shall be held by secret ballot or by raising hand and a_**

voter shall exercise his vote only in favour of one candidate for each of the posts
in the committee.

4. **_Election Programme:- (1) The manager shall draw a detailed programme_**

of election and send the same to the Registrar for approval and for the
appointment of Returning Officer for conducting the election.

(2) The zonal list of voters shall be prepared, if necessary, by the manager in

accordance with the direction issued by the Registrar from time to time.

(3) The notice indicating the election programme together with the zones

constituted if any, shall be exhibited by the manager at the registered office of the
co-operative society and in common places in the area of operation of the cooperative society. This would be in addition to any other mode of notice which
may be laid-down either in the bye-laws or in the revolution of the committee or
as may be specified by the Registrar by general or special order.

5. **_Filling of nomination papers:- The nomination papers, duly completed_**

shall reach the Returning Officer by such date, time and place as may be specified
in the election programme.

6. **_Scrutiny of nomination papers:- (1) The Returning Officer shall_**

scrutinise the nomination papers at the place, date and times specified in this
behalf, hear objects, if any, presented by the objections in person to the eligibility
of any candidate and dispose-off these objections after such inquiry as he may
consider necessary. The decision of rejecting or accepting the nomination papers
and brief statement of reasons thereof shall be endorsed on the nomination
papers and signed by the Returning Officer may:
**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(a) Permit any clerical error is the nomination papers, in regard to the names

or numbers to be corrected to bring them in conformity with the
corresponding entries in the list of voters.

(b) Where necessary, direct that any printing error in the said entries may be

over-looked.

(2) The person objecting under sub-rule (i) must be a voter.

(3) The Returning Officer shall after scrutiny of nomination papers, prepare

and announce a list of validity nominated candidates and the same shall be
exhibited at the registered office of the society and at other common places in the
area of operation of the co-operative society. The Returning Officer after preparing
the list of validity nominated candidates shall declare such candidates as elected
if there is no contest about his election and communicate the same to the
Presiding Officer and the Manager of the society.

7. **_Withdrawal of nomination papers:- Any candidate may withdraw his_**

nomination by a notice in writing which shall be subscribed by him and deliver to
the Returning Officer by the date as specified in the election programme.

8. **_Death of Candidate:- If an intimation of death of a candidate is received_**

by the Returning Officer, after the last date of the filing of the nomination papers
and before the commencement of the poll, the Returning Officer shall cancel
the poll in respect of that zone for which the deceased was a candidate and report
the fact to the manager and all proceedings with reference to the election of that
zone shall be commenced again on the basis of the list or voters already prepared.

9. **_Appointment of Presiding Officer and his duties:- The Returning Office_**

may appoint Presiding Officer for each polling station and also polling officers and
polling assistants to assist the Presiding Officer to conduct the poll. The Presiding
Officer shall perform such duties as may be prescribed by the Registrar from time
to time.

10. **Procedure for casting of vote:- (1) If the Registrar so requires, a voter**

shall be required to produce an admission card, at the time of casting his vote, to
be issued by the co-operative society under postal certificate or any other means
as may be decided upon. The representatives of Member Co-operative Societies,
shall in addition, produce resolution of their respective co-operative societies
authorising them to represent the co-operative society in the general meeting;

Provided that a copy of resolution, duly attested by a co-operative society

authorising one of its members to represent it for election, shall reach the
Manager of the Co-operative Society whose election is to be held, at-least four
days before the date of polling. In case such a resolution is not received by the
manager within the stipulated period, such representative of the co-operative
society shall not be entitled to vote.

(2) If any difficulty arises in regard to the identification of individual members

or representatives of member co-operative societies, the Returning Officer or the
Presiding Officer, as the case may be, may call-upon one or more officials of the
State Co-operative Department to assist him in establishing the identity of such
members or representatives and his decision in this regard shall be final.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

(3) The manager shall make such arrangements in regard to the admission

and seating of members and others invited by the Co-operative Society as may be
considered necessary by the Returning Officer,

11. **_Declaration of election results:- (1) After the counting of the votes has_**

been completed, the candidate who secures a majority of votes shall be declared
elected by the Returning Officer or the Presiding Officer, as the case may be. If the
number of votes in favour of two or more candidates are equal, the mater shall be
decided by lots drawn by the Returning Officer or the Presiding Officer, as the
case may be.

(2) When the result of the election has been declared, the Returning Officer or

the Presiding Officer as the case may be, shall prepare a consolidated list of
elected candidates, including those declared elected unopposed, and

communicate the names of persons elected under his signature to the Assistant
Registrar concerned and in the case of Central or Apex Co-operative Societies,
such a list shall also be sent to the Registrar. The Returning Officer or the
Presiding Officer, as the case may be shall also direct the Manager to exhibit the
list of the names of the persons elected at some conspicuous place at the
registered office of the society for a minimum period of seven days after
declaration of result of the election.

12. **_General :- (1) The Registrar may issue such instructions as may be_**

necessary for the purpose of drawing of election programme, filling of nomination
papers, withdrawals of nomination papers, allotment of symbols, manner of
voting, counting and other relevant matters to facilitate the holding of election in
respect of a co-operative society or class of co-operative societies.

(2) If any dispute arises in connection with election of any officer of co
operative society, it shall be referred to within thirty days of the declaration of the
result of such election to the Registrar in same manner as provided in rule 55 of
the rules.

###### PART – II

 RULES FOR ELECTION IN PRIMARY CO-OPERATIVE 
 SOCIETIES IF HELD IN 
 SPECIAL GENERAL MEETING

1. **_Calling of special general meeting:- (1) The meeting of election shall be_**

convened by the manager or the secretary as the case may be, under the direction
of the committee in the manner prescribed in the bye-laws of the co-operative
society and at-least fifteen days notice specifying the date, time and the place of
the meeting shall be given to all members.

(2) _The notice of the meeting shall be given by affixing a copy of the notice at the_

_co-operative society's office and by the circulation of the notice and getting the_
_signatures of the members on it or by beat of drum in the area of operation of the_
_co-operative society._

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

2. **_Presiding over the meeting:- The meeting shall be presided over by the_**

Returning Officer.

3. **_Proposal of candidates for contesting election:- (1) The names of the_**

candidates shall be proposed and recorded by any of the members present in the
meeting.

(2) The Returning Officer, shall ask for withdrawal, if any, of the names

proposed immediately after such proposal has been made.

4. **_Voting:- (1) If the number of the candidates left after the withdrawal is_**

equal to or less than the number of persons to be elected, then all the persons
shall be declared elected by the Returning Officer.

(2) If the number of candidates proposed is larger than the number of persons

to be elected, then election shall take place by secret ballot or by raising hands as
may be decided upon.

(3) Each member present shall be supplied with an improvised ballot paper or

a piece of paper bearing the seal of the co-operative society when the election is
held by ballot. The member shall be asked to mark "X" against the name of the
candidate in whose favour he wants to cast his vote. Each member shall have
same number of votes as shall be the number of candidate to be elected as per
provision of the bye-laws of a society at the rate of one vote per candidate.

(4) The improvised ballot paper on which vote has been recorded will be cast

in an improvised closed box.

5. **_Counting of votes:- (1) The ballot box will be opened in the presence of all_**

the members present in the meeting and vote secured by each candidate shall be
counted separately. The Candidates found to have obtained largest number of
votes in order of merit shall be declared elected by the Returning Officer. In the
event of candidates securing equal number of votes, the matter shall be decided
by lot.

(2) Where election is held by raising hands, the Returning Officer shall count

with the help of officers authorised by him, the number of hands raised in favour
of a candidate. No voter shall be permitted to raise both the hands. If a voter
raises his favour of the contesting candidates exceeding the number of candidates
to be elected as per provision of the bye-laws of the society, all his votes shall be
treated as cancelled in favour of all the contesting candidates. The Returning
Officer shall declare such candidates elected as have secured larger votes in order
of merit. In the event of equality of votes by two are more contesting candidates,
matter shall be decided by lot.

(3) The Returning Officer shall immediately alter declaration of results,

communicate the same to the manager as the secretary of the co-operative
society, as the case may be, and send a copy of the same to the Assistant
Registrar concerned.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

###### APPENDIX "G"
 (See Rule 46(1)

 FORM OF DECLATION

I ............................ (AGE ......), RESIDING AT ................. having been

admitted to the membership of ........... society limited ............ and being desirous
of borrowing loan from the society with unlimited liability ...... / having borrowed
loan from the society before the date of coming into force of the Andaman and
Nicobar Islands Co-operative Societies Regulation,1973, make this declaration as
required by section 32 of the Andaman and Nicobar Co-operative Societies
Regulation,1973. That I      own                    land specified in the
Have interest as a tenant in

schedule, and I hereby create a charge on the said   land    in favour of the
interest

co-operative society for the payment of the amount of loan which the society

may make  and for all future advances, if any which the society may make to
has made

me, subject to the maximum amount of Rs. ............... together with interest or
such amount of the loan and advances.

###### SCHEDULE

Description of land


Name of

the

Village


Name of

the

Tehsil


Name of

District


Khasra

No.


Kind of

land


Share

in land


Extent Remarks

if any


1 2 3 4(i) 4(ii) 4(iii) 4(iv) 4(v)

In witness whereof I, Shri ................... set my hand this .......... day of

................ in the year one thousand nine hundred and ................. signed and
delivered by the above named Shri ............ in the presence of :

Witness:

1. ............... Applicant's

2. ............... --------------- Signature
Borrower's

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


-----

**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

###### APPENDIX "H"
 (See Rule 46(2)

 REGISTER OF DECLATION MADE UNDER SECTION 32


Serial
NO.


Date of entry in
the Register


Name of the
Member


Date of
declaration


Name of Village
within which land
is situated


1 2 3 4 5

Description of land


Khasra

No.


Area Kind of

land


Share in

land


Extent Remarks

if any


Account

of loan

applied

for /

borrowed

7


6(i) 6(ii) 6(iii) 6(iv) 6(v) 6(vi)


Remarks if any Signature of Chairman/ President

8                         9

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

###### APPENDIX "I"
 (See Rule 82)

 FORM OF AWARD

Whereas the dispute between the .................................. of the first part

and Shri ................... S/o .................... and his sureties, namely (1) ..................

S/o ..................... and (2) ........................... S/o ................................. of

..................................................................... the second part, regarding

............................................. has been referred to me for determination by the

Registrar's Order    No. ............ Dated .............

NOW, THEREFORE, I, ......................having duly considered the matter,

hereby direct that ................................................ do pay to ..................... interest

at ........................ percent to this date, and Rs. ...................... costs, or Rs. ........

in all, together with interest at the rate of ................ percent per annum until the

realisation of the principal amount viz. Rs. ...........

The above amount shall be paid by ..................... and if it is not so paid,

the amount may be realised through a civil court either by sale of all property of

debtor or his sureties which was specifically, mortgaged for the satisfaction of this

debt and which is shown in detail in the schedule attached to his award or of any

other property belonging to the debtor or his sureties or both or by the arrest of

the debtor.

SCHEDULE

Here enter the details of the property

Dated .......................

Signed ..................

Registrar
Or
Arbitrator Award given in presence of

.................................. and ......................

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

###### APPENDIX "J"

 (See Rule 83)

 FORM OF LIQUIDATION ORDER

I, .................................. Liquidator ................... society under liquidation

Tehsil .......... Dist ........... authorised under section 59(2) (b) and (e) of the

Andaman and Nicobar Co-operative Societies Regulation,1973 do hereby order /

assess Shri .............. Son of ................... Caste ................... resident of ..............

Tehsil ................... District .................... to pay Rs......... as

debt/contribution/liquidation expenses as member/past member/other nominee,

heir or legal representative of Shri .................... Son of ........................ resident of

................... deceased member / past Office towards assets of the society.

Liquidator ....................

Dated. ..................

###### HAR MANDER SINGH,

Chief Commissioner,

Andaman and Nicobar Islands,

By order and in the name of the Chief Commissioner

###### SAROOP LALL,

Assistant Secretary (Development)

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

###### ANDAMAN AND NICOBAR ADMINISTRATION
 CHIEF COMMISSIONER'S SECRETARIAT
 -------- NOTIFICATION

##### -----
Port Blair, the 20th May, 1977/Vaisakha 30, 1899.

No.103/77/F.No.1/1(135)/75-Dev.II (Vol.II):- In exercise of the powers

conferred by sub-section (1) of section 86 of the Andaman and Nicobar Islands

Co-operative Societies Regulation,1973 (No.3 of 1973), the Chief Commissioner,

Andaman and Nicobar Islands, hereby makes the following amendments to the

Andaman and Nicobar Islands Co-operative Societies Rules, 1974, the same

having been previously published as required by section (1) of the said section,

namely:

AMENDMENT

(1) In the said rules, after rule 44, the following shall be inserted namely:

"44-(a) Form of agreement under sub-section (1) of Section 39 – An

agreement under sub-section (1) of section 39 shall be executed in

Form given in Appendix "K"

(2) After Appendix "J" to the Rules, the following Appendix "K" shall be

added, namely:

###### APPENDIX "K"
 [See Rule 44(a)]
 FORM OF AGREEMENT

This agreement is made on the ......... by Shri ................... S/o Shri

.......................... resident of ......................... (herein-after referred to as First
Party) in favour of ..................... ............................(herein-after referred to as
Second Party).

Whereas Shri .................. (First Party) working as ............ in the

establishment of ..................... has borrowed a loan of Rs............. (Rupees
............................................)/made credit purchase from the

...................................... and whereas the said first party is required to enter into
an agreement containing the terms and conditions on which the 2nd party i.e.,
the said Co-operative Institution has agreed to sanction loan/make credit.

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**

Now, therefore, in consideration thereof it is agreed by the said first party

as follows:

(i) That the first party shall repay the loan with interest accrued

thereon from his salary/wages by monthly instalments, within the

stipulated period.

(ii) That the said first party hereby authorise his employer

................/officer disbursing his salary/wages to deduct at the rate

of Rs. ......... (Rupees .................. only) per month from his

salary/wages payable to him every month and to remit the amount

so deducted to the ................. on receipt of demand from the

..................

(Signature)
Name and address

Witness
1.
2.

Accepted
Secretary

..........................
..........................

(3) After appendix “K”, the following appendix “L” shall be added namely:

###### APPENDIX "L"
 REGISTER TO BE MAINTAINED BY EMPLOYER/
 PAY DISBURSING OFFICER UNDER SECTION 39 (4)
 OF THE ANDAMAN AND NICOBAR ISLANDS
 CO-OPERATIVE SOCIETIES REGULATION, 1973 (No.3 of 1973)


Name of 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)

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, OCT, 16, 1974**


Receipt                        Payment
Demand Date of Amount of Date of
recovery Recovery remittance


Amount
remitted


No. and date of
official printed
receipt of the
Society


(4) (5) (6) (7) (8) (9)

Remarks

|Remarks|Col2|
|---|---|


(here enter the reason for the
difference if any between the amount
in columns (4) and (6)


Initials of the officer disbursing the

salary or wages


(10) (11)

A.P. GOPALAN,

Assistant Secretary (Dev.)

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**


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**ANDAMAN & NICOBAR GAZETTTE, EXTRAORDINARY, June, 02, 2010**

###### ANDAMAN AND NICOBAR GAZETTE

EXTRAORDINARY

Published BY Authority


**No. 126, Port Blair, Wednesday, June 02,2010**


###### ANDAMAN AND NICOBAR ADMINISTRATION

SECRETARIAT

------
NOTIFICATION

---------
Port Blair, the 2[nd] June, 2010

No. 115/2010/F.No.RCS/26-5/2008(PF)- In exercise of the powers conferred

under Section 3(2) of the Andaman & Nicobar Islands Co-operative Societies Regulation,
1973, and in supersession of Notification No. F.No.30-51/99-Dev.I (Coop) dated
15.11.2001 & all previous Orders and Notifications in this behalf, the Lt. Governor,
Andaman and Nicobar Islands (Administrator), hereby orders that the powers conferred
on the Registrar of Co-operative Societies under the said Regulation, as specified in
Column (1) of the table below shall be exercised by Deputy Registrar of Co-operative
Societies, Assistant Registrar of Co-operative Societies and Inspector of Co-operative
Societies of Co-operative Department of the A&N Administration to the extent as specified
in the corresponding entries in Column (2), (3) & (4) of the said table within the areas of
their respective jurisdiction, subject to the general superintendence, direction and control
of the Registrar of Co-operative Societies.

Sections of the Extent of powers Extent of powers Extent of powers

Regulation conferred on Deputy conferred on Assistant conferred on Inspection of

(RCS) Registrar of Co-operative Registrar of Co-operative Co-operative Societies

Societies (DRCS) Societies (ARCS) (Inspector)

(1) (2) (3) (4)

All powers as All powers in respect of All powers in respect of All powers in respect of
specified in Primary & Central Coop. Primary Coop. Societies Primary Coop. Societies

A&N Islands Societies except sections except sections 8, 9, 10, except section 8, 9, 10,

Co-operative 10(6), 13, 14, 27, 54, 55, 11, 12, 13, 14, 27, 50, 54, 11, 12, 13, 14, 26, 27, 50,
Societies 56, 57, 58, 61, 65, 68 & 55, 56, 57, 58, 61, 65, 67, 54, 55, 56, 57, 58, 61, 65,
Regulation, 74 of the Regulation and 68 & 74 of the Regulation 67, 68 & 74 of the
1973 and to to decide non-monetary and to decide non- Regulation and to decide
decide and monetary disputes monetary and monetary non-monetary & monetary
monetary transferred/referred disputes transferred / disputes transferred
disputes under section 56 of the referred under section 56 referred under section 56
above Rupees Regulation above Rupees of the Regulation above of the Regulation upto
25.00 lakhs 10.00 lakhs (Ten lakhs) Rupees 5.00 lakhs (Five Rupees 5.00 lakhs (Five

(Twenty five and upto Rupees 25.00 lakhs) and upto Rupees lakhs)

lakhs) lakhs (Twenty five lakhs) 10.00 lakhs (Ten lakhs)

Lieutenant General (Retd.) Bhopinder Singh

Lieutenant Governor

By order and in the name of the Lieutenant Governor

Sd/
Commissioner-cum-Secretary (Coop)

Andaman & Nicobar Administration

**Registrar of Co-operative Societies, Co-operative Department, A&N Islands, VIP Road,**
**Junglighat Port Blair PIN-744103 (Contact No 03192232388) 2019**

|Societies, Assistant Registrar of Co-operative Societies and Inspector of Co-operative Societies of Co-operative Department of the A&N Administration to the extent as specified in the corresponding entries in Column (2), (3) & (4) of the said table within the areas of their respective jurisdiction, subject to the general superintendence, direction and control of the Registrar of Co-operative Societies.|Col2|Col3|Col4|
|---|---|---|---|
|Sections of the Extent of powers Extent of powers Extent of powers Regulation conferred on Deputy conferred on Assistant conferred on Inspection of (RCS) Registrar of Co-operative Registrar of Co-operative Co-operative Societies Societies (DRCS) Societies (ARCS) (Inspector)||||
|(1) (2) (3) (4)||||
|All powers as specified in A&N Islands Co-operative Societies Regulation, 1973 and to decide monetary disputes above Rupees 25.00 lakhs (Twenty five lakhs)|All powers in respect of Primary & Central Coop. Societies except sections 10(6), 13, 14, 27, 54, 55, 56, 57, 58, 61, 65, 68 & 74 of the Regulation and to decide non-monetary and monetary disputes transferred/referred under section 56 of the Regulation above Rupees 10.00 lakhs (Ten lakhs) and upto Rupees 25.00 lakhs (Twenty five lakhs)|All powers in respect of Primary Coop. Societies except sections 8, 9, 10, 11, 12, 13, 14, 27, 50, 54, 55, 56, 57, 58, 61, 65, 67, 68 & 74 of the Regulation and to decide non- monetary and monetary disputes transferred / referred under section 56 of the Regulation above Rupees 5.00 lakhs (Five lakhs) and upto Rupees 10.00 lakhs (Ten lakhs)|All powers in respect of Primary Coop. Societies except section 8, 9, 10, 11, 12, 13, 14, 26, 27, 50, 54, 55, 56, 57, 58, 61, 65, 67, 68 & 74 of the Regulation and to decide non-monetary & monetary disputes transferred / referred under section 56 of the Regulation upto Rupees 5.00 lakhs (Five lakhs)|


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