What are the basic differences between Registered Society under the Societies Registration Act and Co-operative Society under the Co-Operative Society Act?
N.K.Assumi (Advocate) 03 June 2009
What are the basic differences between Registered Society under the Societies Registration Act and Co-operative Society under the Co-Operative Society Act?
A V Vishal (Advocate) 03 June 2009
Dear Assumi,
Purpose of the Act is to provide for registration of literary, scientific and charitable societies.
Societies Registration Act is a Central Act. However, ‘unincorporated literary, scientific, religious and other societies and associations’ is a State Subject (Entry 32 of List II of Seventh Schedule to Constitution, i.e. State List). Thus, normally, there should have been only State Laws on this subject. However, Societies Registration Act was passed in 1860, i.e. much before bifurcation of power between State and Centre was specified. Though the Act is still in force, it has been specifically repealed in many States and those States have their own Acts. Thus, practically, the Central Act is mainly of academic interest.
Societies to which the Act applies – Following societies can be registered under the Act - * Charitable societies * Military orphan funds or societies * Societies established for promotion of science, literature, or for fine arts * Societies established for instruction and diffusion of useful knowledge, diffusion of political education * Societies established for maintenance of libraries or reading rooms for general public * Societies established for Public museums and galleries for paintings or other works of art, collections of natural history, mechanical and philosophical inventions, instruments or designs [section 20]
Registration – Any seven or more persons associated for literary, scientific or charitable purpose can register a trust by subscribing their names to memorandum of association. [section 1]. [The Act envisages filing the memorandum with Registrar of Joint Stock Companies. Practically, the memorandum will have to be filed with Registrar appointed under corresponding State Act]. - - The memorandum of association shall contain name and objects of society and names and addresses of governors/council/ directors or other governing body. - - Copy of rules and regulations of society will also have to be filed along with memorandum. [section 2].
Annual list of managing body to be filed – Annual list of managing body should be filed within 14 days after AGM. [section4]. If there is no provision of AGM, then list should be filed in January every year. [section 4]. - - The governing body may be termed as governors, council, directors, committee, trustees or other body to whom by rules and regulations of society, the management of the affairs of society is entrusted. [section 16].
Society is not a body corporate – Society is not a body corporate. This is evident from following – (a) Entry 32 in List II of Schedule to Constitution itself uses the words ‘unincorporated’ (b) As per section 4, property of society vests in governing body, if not vested in trustees. Thus, property does not vest in society as such. (c) Section 6 states that suit by or against society can be only in name of President, Chairman, Principal Secretary or Trustees, as determined by rules of society. Thus, suit cannot be in name of society as such.
Office bearers not personally liable – Section 8 makes it clear that though suit against society is instituted in name of some person, he is not personally liable, but property of society will be liable.
Members of society – A member is a person who is admitted according to rules and regulations of society and who pays subscription, or signed the roll or list of members, and who has not resigned from membership. [section 15]. A member can be sued as stranger for arrear in subscription or if he injures or destroys property of society. [section 10]. Member guilty of offence of stealing, embezzlement or wilful destruction of society property can be punished as stranger, i.e. not a member. [section 11].
Alteration, extension of purposes, amlagamation or dissolution – Society can alter, extend or abridge is purposes, or amalgamate with other society after approval of general meeting of members. [section 12]. Society can be dissolved if three-fifths of members determine to do so. [section 13]. Upon dissolution, balance amount should be given to other society and not to any member. [section 14].
N.K.Assumi (Advocate) 04 June 2009
Thanks Vishal for the response:
V.S.R.Deekshitulu (B.Sc, B.L) 05 June 2009
Mr Vishal
Clongratulations, you have taken lot of pains in giving the reply. Keep it up
mir mohamed ismail ali (service) 11 June 2009
sir please let me know the person who is default in the repayment of laon in the co-operative society, wehter this banks has got right of secising i mean recovering the households items like fridge, music system etc etc. please confirm
thank you
ismail ali , email id mirali_smile@yahoo.com
V.S.R.Deekshitulu (B.Sc, B.L) 12 June 2009
Mr Ali
Any creditor can realise his dues by bringing not only the immovable property but also the movable property to sale. There is no distinction in this regard between a Bank, or a co-operative society or any ordinary creditor. The item mentionedby you are not at all exempt from attachment or sale in a court of law. In this regard I direct you to refer Sec. 60 and Order 21 of C.P.C as regards the said subject.
I hope your problem is solved
V.S.R.Deekshitulu (B.Sc, B.L) 12 June 2009
Mr. Ali
Your question is little confusing. You are mentioning Cooperative society and also Bank. Any how a creditor cannot the seize the movables of a debtor by himself, when he has no charge or hypothecation of the property in his favour. The only course is to proceed in a court of law. A Bank or a creditor who has a charge over the items mentioned in you querry, can seize the same.
One has to approch a court of law for such seizure through process of court only but not by himself. No body can take law into his hands. In this regard you may kindly refer to law of contracts regarding hypothecation, pledge etc. then you will understand the real picture. Right.
pankaj kumar agrawal (partner) 03 May 2012
vishal ji
one more thing i wanted to know whether a society under societies registration act, 1860 can be formed for making housing society in delhi, in which members will be alloted shares of Rs. 100 each and then they can purchase land on cost contribution basis and then they can contribute for construction of houses on that land on cost basis.
thanks and waiting for your response
pankaj kumar agrawal
Ajay Pandita 26 July 2016
Can someone answer me if a President can be removed through No trust motion in a 3 month old Society registered under society act working in Education sector.
There is a SC judgement 3048 of 2015, which states that officer bearer in a Cooperative Society can be removed through No trust motion only after 2 years of his assumption of office.
Will this rulling be applicable to Society registered under society act.
Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer) 12 August 2016
Please refer to the byelaws of the Society.