Amendment status not verified — confirm the current text below against the official source.
In Section 2 of the Principal Act, after clause (r), following shall be added as a new clause, namely:— (s) "Bank” means— A Banking Company as Banking Regulation Act, 1949. (i) defined in the (ii) The State Bank of India the State Bank of India Act, 1955. constituted under (iii) Bank of A subsidiary bank as defined in the State India (Subsidiary Banks) Act, 1959. (iv) A. corresponding new Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. (iv) THE ASSAM GAZETTE, EXTRAORDINARY, OCT. 22, 1975 925 (v) The Agricultural Refinance Corporation constituted under the Agricultural Refinance Cor poration Act, 1963. (vi) Agricultural Finance Corporation Limit ed, a company incorporated under the Indian Com panies Act, 1956; and (t) A "Financing Bank” means a bank as de fined in clause (s) of Section 2 of this Act or a Co-operative Bank providing working capital to a registered Co-operative Society. of'section ^ 3 - For Section 4 of the Principal Act the following of A s s a mshall be substituted, namely:— Act J of 1950. "4(1) Societies which may be registered— A Society which has as its objects the promotion of the economic interests or general welfare of its members or of the public in accordance with the Co-operative principles, or a Society established with the object of facilitating the operations of any society may be registered under this Act with limited liability. (2) No society shall be registered if in the opinion of the Registrar, its declared objects are unlikely to be achieved or if it is likely to be economically unsound or if it may have an adverse effect upon any registered society or the Co-operative movement as a whole.” Amendment of Section 14 of Assam Act I of 1950. 4.(a) In Section 14 of the Principal Act:— in the heading, in between the words "society” and "to” the words "or financing Bank” shall be inserted. (b) In sub-section (2) clauses (i) and (ii) the following shall be substituted:— "(i) When it appears to an affiliating society or a financing bank that an amendment of the bye-laws of a registered society which is a member of such society or debtor of financing bank is necessary in the interest of the society it may suggest to the affiliated society or the debtor society, as the case may be, to make such amend ment within such time as it may specify. The affiliating society or the financing bank shall forward to the affiliat ed society or the debtor society, as the case may be, a draft of the suggested amendment of the bye-laws. (ii) If the society fails to make the amendment with in the time specified, the affiliating society or the financ ing bank may forward to the Registrar the amendment and the Registrar, if satisfied that the amendment is necessary in the interest of the society and not contrary to the provisions of this Act or rules, may thereupon after giving an opportunity of x 926 THE ASSAM GAZETTE, EXTRAORDINARY, OCT. 22, 1975 showing cause to the society concerned against the proposed amendment register the amendment and forward to the socie ty a copy thereof together with a certificate signed by him. The certificate shall be conclusive evidence that the amend ment has been registered and such amendment shall thereupon be binding upon the society and its members. (iii) If the Registrar considers that the amendment re ferred in clause (ii) above is not acceptable, he shall submit a report to the Government. (iv) An affiliating society or a financing bank or the Registered Society if aggrieved by a decision of the Regis trar may prefer an appeal to the Government, The orders of the Government on such appeal shall be final. • (v) The State Government may out of its own motion or the Registrar subject to such direction as may be given by the Government amend the bye-laws of any society or gioup of societies in the interest of public service.” Amendment 5, i n Section 15 of the principal Act, for sub-section :ff I : 5 CamnAct(3) ’ t h e f o , l o w i a 8 shall he substituted, namely:— 1 of 1955, “ (3) (a) Notwithstanding anything container! in sub sections (1) and (2) of this Section if the Registrar is of opinion that for reasons of ensuring economic viability of any registered society or societies or avoiding overlapping or conflict of jurisdictions of registered societies in any area or in order to secure proper management of any Co-operative Society, or in the public interest or in the interest of the Co-operative movement in the State as a whole, or in the interest of depositors and the Co-cparative banking system in the State as a whole, it is necessary to divide, amalgamate or merge fully or partially any such society or societies with any specified society, he may, by an order published in the official Gaaette make a scheme for division, amalgamation or merger, with prior approval of the State Government. Explanation.—In this section the society which is divided, amalgamated or merged shall be referred to as “ Transferor” society and the societies which are formed out of any division, amalgamation or merger under this section shall be referred to as “Transferee” society or societies. (b) A scheme referred to in sub-section (a) in respect of division, amalgamation or merger may provide for ail or any of the following matters, namely :•— (i) The transfer of the business, properties mova ble or imm< vable‘ assets including cash balances and reserve iund, rights, privileges, liabilities, debts Z THE ASSAM GAZETTE, EXTRAORDINARY, OCT. 22, 1975 927 and obligations of the transferor society or societies to the transferee society or societies on such terms and conditions as may be specified in the said scheme. (ii) The reduction of the interest or rights which the members, depositors and other creditors have in or against the transferor society or societies before division, amalga mation or merger to such extent as the Registrar considers necessary in the public interest or in the interest of the mem bers, depositors and other creditors for the maintenance of the business of such society or societies having due regard to the assets and liabilities of the transferor society or societies. (iii) The payment in cash or otherwise to the depositors and other c: editors in full satisfaction of their claims:— (a) in respect of their interest or rights in or against the traisferor society or societies before or after division, merger or amalgamation, or (b) where the interest or rights as aforesaid, in or against the transferor society or societies has or have been reduced under clause (ii), in respect of such interest or lights as so reduced. (iv) (a) The allotment of shares in the transferee society to the members of the transferor society against the shares held by them in the transferor society or societies, before the division, amalgamation or merger, or (b) where it is not possible to allot shares in the transferee society or societies to such members against the shares held by them in the transferor society or societies, the payment to such members in cash in full satisfaction of their claims in respect of their interest in the shares of the transferor society or societies or where such interest has been reduced under clause (ii), in respect of thdir interest in the shares as so reduced : Provided that an aforesaid scheme shall secure— (i) that allotment or shares or payment in cash in favour ot the members of the tiansferor society or societies under this clause shall not be made until all the depositors and creditors of the transferor society or societies have been paid under sub-clause (a) of this clause, or, as the case may be, undar sub-clause (b) of clause (iii), and 928 THE ASSAM GAZETTE, EXTRAORDINARY, OCT. 22, 1975 (ii) that such allotment of share or payment in cash in favour of the members of the transferor society or societies shall be made only out of the surplus of the assets of the transferor society or societies, if any, that may be left after payment to the depositors and the creditors as indicated in sub-clause (i). (v) The continuance t of the service of all or any of the employees of the transferor society or societies in the transferee society or societies on such terms and conditions of service as may be determined in this behalf : Provided thet, if any employee is found to be ineligible for continuance in service of the transferee society under the terms and conditions of the scheme, the services of such employee shall stand terminated on and from the date on which the division, amalgamation or merger takes effect and the transferee society shall within three months of the afore said date, make payment to such employee such compensa tion as suth employee may be entitled under any law relat ing to industrial dispute in force in the State and pension, gratuity, provident fund and other retirement benefits as are ordinarily admissible to him under the rules of the trans feror society in force immediately before the division, amal gamation or merger. (vi) The scheme for division shall provide division of the assets and liabilities, the area of operation, the employees and the members of such society among the new societies into which such society is to be divided. (e) (i) No order referred to in sub-sec’ion (a) shall be made unless a copy of the proposed order including the scheme is sent to the societies affected calling upon them to invite ■ objections or suggestions from the members, creditors and suggestions together with their own suggestions and objections, if any, to the Registrar within thirty days from the date of receipt of the copy of the proposed order by such societies. (ii) The Registrar shall consider the suggestions and objections which may be received under (i) above within the period referred to therein and may make such modifi cations in the proposed order including the scheme as he thinks just and fit and finalise the proposed order including the scheme in consultation with the State Government: Provided that such order shall not be passed with out the prior approval of the Reserve Bank of India in case of any society coming under the purview of the j. HE ASSAM GAZETTE, EXTRAORDINARY, OCT. 22, 1975 929 --------- ;--------------- ;------------------------------ ;-------------------------— Banking Regulation Act, 1949 (as applicable to Co-operative Societies) (Central Act No. 10 of 1949). (d) An order referred to in clause (a) may contain such incidental, consequential and supplemental provisions as the Registrar in consultation with the State Government may consider necessary to give effect to the propored division, amalgamation or merger and shall have effect on - nd from such date as may be specified in the final order referred to in sub clause (ii) of c’ause (c). (e) On and from the date from which the division, amalgamation or merger, take effect, the assets and liabilities of the societies referred therein shall stand divided, amalga- , mated or merged wi'h the assets and liabilities of the socieiies formed out of such division or amalgamation or merger and the members, credito s and debtors of such societies, shall be deemed to be members, creditors and debtors, as the case may be of the new society or societies as ordered . by the Registrar. (f) (i) Notwithstanding anything contained in thie, Act, the Registrar shall register all new societies created after divi sion of an existing society under this Act and such registra tion shall be effective from the dato on which the division takes effect and the registration of the society osdered to be divided shall be deemed to have been cancelled from the said date and such registration and cancellation shall be effective from the date on which the division takes effect notwithstanding the actual registration is done later on. (ii) In case of the society directed to amalgamate or merge, the registration or the transfe:or society or societies shall be deemed to have been cancelled from he date on which the amalgama’ioa or merger takes effect. (g) The provisions of this section shall have effect notwithstanding anything to the contrary elsewhere in this Act or in any other law or agreement, award or other ins trument for tie time being in force. (h) (i) Notwithstanding anything contained in the Transfer of Property Act, 1882, or the Registration Act, 1908, an order issued under this section shall be sufficient conveyance to divide or to transfer the assets and liabili ies of the society or societies covered by any order passed under sub-clause (ii) of clause (c)i (ii) Notwithstanding a n y t h i n g contained in any other law for the time being in force no civil court 930 THE ASSAM GAZETTE, EXTRAORDINARY, OCT. 22, 1975 > shall exercise any jurisdiction in respect of any action taken or order passed under this section and nothing done or order passed in exercise of any power under this section shall be called in question in any such court.” Insertion of a new Sec tion 35 A in Assam Act 1