Co-operative Law 7

Definitions Sec 1,2

• Kerala Co-operative Societies Act 1969
• Section 1 Rule 1:- Short title, extent and commencement
• Title- Kerala Co-operative Societies Act (KCS Act)
• Extent:- The entire State of Kerala
• Commencement:- 15-5-1969

❖Sec 2: Definitions
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• Sec 2 (a): Apex Society- Means a Society having the whole of
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the State as its area of operation and having as its members

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only other societies with similar object and declared as such by

Registrar
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• Sec 2(aa):-Assisted Society: - Means a Society who has received

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any financial assistance from Govt. or any guarantee by Govt.

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• Financial Assistance means-Share Capital, Loan, Grants or

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Guarantee for repayment of loan from Govt.

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• Sec 2(ab):- Auditing of Accounts of Co-operative Societies:-

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• Sec 2(b): Byelaws-

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• Means the registered Byelaws of a Co-operative Society for the

time being enforce.
• Byelaw provide guidance for general administration and
conduct of business which are framed with the legal frame
work of the State
• Byelaw govern the relationship between the Society and its
members
• Sec 2(c): Circle Co-operative Union-
• Means CCU constituted under Sec 88 (No.62)
• Sec 2(d): Central Society
• Means a Society having jurisdiction over one or more Revenue
District but not the whole of the State as its area of operation
and having as its members only other Societies and declared
as such by the Registrar or Govt.
• Sec 2(da):- Chief Executive
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• An employee of a Co-operative Society by whatever
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designation called and includes an officer of the of the State

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Govt. or an employee of any other Co-operative society who

discharges the functions of a Chief executive
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• Sec 2(e): Committee:

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• Committee means the governing body of a Co-operative

Society by whatever name called to which the affairs of the
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Society is entrusted.
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• Sec 2(ea): Co-operative Arbitration Court- Constituted under

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Section 70A
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• Sec 2(eb): Consortuim Lending Scheme 57(c)

• Sec 2(ec): Co-operative Development and Welfare Fund
(Sec 57 A)
• Sec 2(ecc): Co-operative Ombudsman Appointed u/s(Sec 69 A)
• Sec 2 (eccc): Co-operative Principles specified in Schedule 2
• Sec 2(ed):Co-operative service examination Board – 80B
• Sec 2(f):Co-operative Society- registered or deemed to be
registered under this Act
• Sec 2(g):Co-operative Society with limited liability
• Means the liability of the members for the debts of the
society in the event of its being wound up is limited by its
byelaws;
• a) To the amount of unpaid portion of shares
• b) To such amount undertake to contribute to the assets of

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• Sec 2(h):- Co-operative Society with Unlimited liability:-
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• Members,Being wound up jointly and severally liable for all its

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obligations and contribute to any deficit in the assets of the

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Society.
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• Sec 2 (ha):- Deposit Guarantee Scheme Sec 57 B (2 Lakh)

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• Sec2 (hb): Director of Co-operative Audit

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• appointed under Section 63 (1)- or any officer the powers

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delegated to him by the Govt. under Sec.63(3)

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• Sec 2(i): Dispute:

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• means any matter touching the business, constitution,

establishment or management of a Co-operative Society
capable of being the subject of litigation and includes a claim in
respect of any sum payable to or by a society whether such
claim be admitted or not.
• Sec 2(ia) District Co-operative Bank:-
• Sec 2(ib):- Federal Society:-
• Having more than one district as its area of operation
• Having individuals and other Co-operative Societies as its
members
• The individual membership shall not exceed 25% of total
membership
• Eg: RAIDCO,RUBCO, Marketing Societies having more than one
district as its area of operation
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• Area of operation
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• District Co-operative Bank – One revenue District

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• Central Society
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-One or more Revenue District

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• Federal Society – More than One revenue

district
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• Sec 2(j): Financing bank-

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• members only other co-operative societies, object of which is

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to raise money and lend to its members

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• Sec 2(k): General Body meeting-

• means the meeting of the members who are entitled to vote in
the affairs of the meeting.
• Sec 2(ka):- Kerala State Co-operative bank
• Means an apex Society having Primary Agricultural Credit
Societies and Urban Co-operative Banks as its members
including nominal or associate member of the District Co-
operative Bank who shall continue as nominal or associate
member.
• Sec 2(l): Member:
• means a person joining in the Application for Registration of a
co-operative Society or admitted to membership after such
registration and includes Nominal or Associate Member
• Sec 2 (la) Miscellaneous Societies:- us
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• This societies accept deposits only from its members
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• This Societies undertake business activities for the welfare of its

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members
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• This cannot provide agricultural loans or Schematic loans

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• This cannot accept deposits from nominal or associate

members
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• Eg: Social Welfare Socities, Commercial Societies, Others (12)

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• Sec 2(m): Nominal or Associate Member-

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• who possess only privileges and rights of a member, only such

liabilities of a member as may be specified in the Byelaws. Sec
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• Sec 2(n): Officer
• Means the President, Vice- President, Chairman,Vice
Chairman, Secretary, Manager, member of the committee or
Treasurer and includes a Liquidator, Administrator or any other
person empowered under the Act, Rules and Byelaws to give
direction (Sec 66 A)
• Sec 2(o) :- Prescribed :-
• Prescribed by rules made under this Act
• Sec 2(oa):- Presribed period:- Limitation period in Schedule III
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• Sec 2(oaa): Primary Agricultural Credit society
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1. Service Co-operative Society

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2. Service Co-operative Bank

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3. Farmers Service Co-operative Bank

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4. Rural Bank
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• Main object is to provide agricultural credit

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• Area of operation confined to village Panchayath or a

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Municipality
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• Sec 2(ob):- Primary Credit Society:-

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• other than apex or central Society object raise fund and lend to
members.
• Sec 2(oc):- PCARDB Primary Co-operative Agricultural and
Rural development Bank-
• Taluk area of Operation, long credit to agricultural and rural
development Activities
• Sec 2 (od):-Primary Co-operative Society:-
• Jurisdiction over a revenue district as a whole or over any
specified area with in such revenue district,
• members- individuals only or Individuals and other Societies as
members
❖ Points to remember…
• Sec 2(oaa) – Primary Agriculture Credit Society (SCS, SCB,
FSCB, Rural Bank)
• Sec 2 (ob) – Primary Credit Society – Other than Apex or

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• Sec 2 (od) – Primary Co-operative Society – Area of operation -
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A revenue District or any specified area with in such revenue

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district- Members- Individual or Individuals and other Co-

operative Societies
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• Sec 2 oe:-Primary Tourism Co-operative Society:- area of

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operation –one taluk

• Sec 2(p): Registrar-
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• RCS constituted under section 3(1)

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• Sec 2 q:- Rules-

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• Sec 2(qa): Scheduled Caste Sec 2(qb): Schedules Tribes

• order 1950
• Sec 2(qc): Special Officer – not below the rank of Asst. Registrar
• Sec 2(r):- State:- means the state of Kerala
• Sec 2(ra):- State Co-operative Agricultural and rural
Development Bank
• Sec 2(rc):- State Co-operative Election commission (28 B)
• Sec 2(s) :-state Co-operative union :- (Sec 89)
• Sec 2(sa) -Transferee Bank- KSCB
• Sec 2 (sb) – Transferor Bank - DCB
• Sec 2 (t):- Tribunal- Sec 81
• Sec 2(ta): Urban Co-operative bank- conduct banking business
with licence from RBI
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• Sec 2(taa) Urban co-operative Society:- object- Non
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agricultural credit activities – Area of operation- Municipality or
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a Corporation.
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• Sec 2(tb)- Vigilance Officer ( Sec 68 A)

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• Sec 2 (u) – Year- 1 April of any year to 31 March of succeeding

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year
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