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Power to remove difficulties. ***** STATEMENT OF OBJECTS AND REASONS I Act of 11 of 1959.—The Report of the Committee of Directors of the All India Rural Credit Survey, appointed by the Reserve Bank of India, was published in December, 1954. At the first conference of State Ministers in charge of Co-operation held at New Delhi in April, 1955, it was agreed that schemes of Co-operative development under the Second Five-Year Plan should be drawn up to give effect to the recommendations contained in the Rural Credit Survey Report. The Report recommended, among other things, increased State partnership in Co-operative Societies and State participation in their management. In order to implement the recommendations of the Rural Credit Survey Report and to facilitate the implementation of the schemes of co-operative development under the Second Five-Year Plan and also to simplify, rationalise and modernise the existing laws relating to Co-operative Societies, the Committee on Co- operative Law was appointed by the Government of India. The Committee observed that the implementation of the recommendations of the Rural Credit Survey Report and of the schemes of co-operative development under the Second Five-Year Plan requires revision of the existing Co- operative Societies Act and the Rules made thereunder in all States. Further, the Re-organisation of States has brought together, areas which are being governed by different Acts and Rules. Under these circumstances the Committee felt, the present juncture was very opportune for revising the Co-operative Societies Act, in force in the different States with a view to bringing about as large a degree of uniformity in the legislation governing Co-operative Societies as possible throughout the country. Taking these factors into consideration, the Committee prepared a Model Co-operative Societies Bill and Model Rules which they recommended to State Governments for enactment and adoption. At present five different Co- operative Societies Acts are in operation in the different parts of the Mysore State. This is a source of considerable administrative inconvenience. It is necessary to have a uniform Co-operative Societies Law as applicable to the whole of the State. Government have, therefore, decided to introduce the present Bill. The Bill has been drafted after taking into consideration the Model Co-operative Societies Bill recommended by the Committee on Co-operative Law appointed by the Government of India. The principle of State partnership in Co-operative Societies and State participation in their management has been accepted and incorporated in the relevant provisions of this Bill. 1959:KAR.ACT 11] Co-operative Societies 9 (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 10th April 1958 as No. 21 at page 1.) II Amending Act 40 of 1964.—The Mysore Co-operative Societies Act, 1959, which was brought into force from First July 1960 has revealed in the course of working the need for some amendments for speedy implementation. It has also become necessary to amend the chapter relating to the Mysore Central Land Mortgage Bank Ltd., so that the Bank could take up expeditiously development activities for which funds could be made available from the provision made under Taccavi loans or from the funds borrowed from the Agricultural Re-finance Corporation of India or from the debentures raised by the Bank itself. Hence the amending Bill. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 18th June 1964 as No. 152 at page 55.) III Amending Act 27 of 1966.— Note.-By this Act the Karnataka Agricultural Produce Marketing (Regulation) Act, 1966 (Karnataka Act 27 of 1966) was enacted. Certain consequential amendments are made therein to this Act . IV Amending Act 16 of 1967.— Consequent on the amendment of the Central Sales Tax Act by the Parliament providing for the enhancement of the rates of tax applicable to the declared good under the local sales tax laws, it has become necessary to amend the IX Schedule which specifies the declared goods and the rates of tax applicable to them. The rates of tax applicable tot he declared goods specified therein are now being enhanced accordingly. Co-operative Societies The Government was considering the question of granting certain concessions to new industries with a view to encourage development of industries in the State. The Government recently took a decision that in respect of new industries exemption from the payment of Sales Tax should be provided for an initial period of two years. The manner in which that exemption should be provided was examined and it was though that it can be best done by means of Notifications issued from time to time whenever occasion arises. Since the Act did not contain a provision empowering the State Government to issue such notifications it is now intended to insert a provision empowering the Government to notify exemptions and reduction of tax rates. Such a provision exists in the Sales Tax Laws of the neighbouring States also. This occasion is also utilised to make certain minor amendments relating to procedural matters and also to provide for concessional rate of tax for vermicelli and to reduce the rates of tax on sugarcane and to exempt Amber Charkas, Druggets, Durries and Carpets. The benefit of exemption granted to bona fide producers under item 28 of the V Schedule is proposed to be limited to persons who produce goods exclusively coming under village industry. 1959:KAR.ACT 11] Co-operative Societies 10 Note: By this Act some consequential amendments are made to Act 11 of 1959 . (Obtained from L.A. Bill No.35 of 1967 Page No. 9 & 10) V Amending Act 1 of 1972.—According to clause (c) of section 101 of the Mysore Co-operative Societies Act, 1959, an order, decision and award made under the Act can be executed by the Registrar or any other person subordinate to him by attachment and sale of any property of the person or co-operative society against whom the order, decision or award has been obtained or passed. In order to implement this provision necessary rules have been made and rule 41 of the Mysore Co-operative Societies Rules, 1960, empowers the Sale Officer to investigate the claims to property attached in execution. In pursuance of this provision, Sale Officers have been investigating such claims. In Jyotiba Yellappa vs. Hubli Co-operative Cotton Sale Society, Ltd., [1970 (2) Mys. L.J. 344], the High Court of Mysore held that the procedure under Rule 41 of the Co-operative Societies Rules is limited in its operation to persons who can properly be made parties to the original dispute under section 70 of the Act and that hence a claim by non-members against the attachment and sale in execution of an award cannot be adjudicated under rule 41. In view of this decision, execution of orders, decisions and awards in which claims to the property attached had been made by non-members would become Invalid and ineffective. Further, execution of orders, decisions and awards could not be proceeded with except in cases where members of the society were interested in the properties liable to attachment and sale. Consequently, the Co-operative Societies could not pursue the expeditious procedure for recovery under the Co-operative Societies Rules. Hence it became necessary to empower the Registrar and his subordinate to exercise the powers of investigating claims to property attached in the execution of the orders, decisions and awards. As the Houses of Legislature were not in Session and the matter was urgent, an Ordinance was promulgated amending section 101 of the Act and validating the action already taken. Thereafter before the Ordinance could be replaced by the Act of State Legislature, the State Legislature was suspended by the proclamation of the President dated 27th March 1971 under article 356 of the Constitution. The Bill is intended to replace the Ordinance and is for enactment under the provisions of the Mysore State Legislature (Delegation of Powers) Act, 1971. The Consultative Committee on State Legislature relating to Mysore at its second meeting on the 7th December 1971, has considered the Mysore Co- operative Societies (Amendment) Bill, 1972, and has accorded its approval of the same. (Obtained from Presidents Act 1 of 1972.) 1959:KAR.ACT 11] Co-operative Societies 11 VI Amending Act 14 of 1973.—The post of Director of Sugar has been created to fulfil the need for a single agency to deal with all matters relating to sugar industry in the State in a comprehensive and co-ordinated manner. Since there are a number of sugar factories already in the co-operative sector and more factories are likely to come up in future it was necessary to designate the Director of Sugar as Additional Registrar of Co-operative Societies in respect of all the Sugar Factories in the co-operative sector. At present the Registrar of Co-operative Societies is dealing with all matters relating to Co-operative Sugar Factories and it is felt that the Director of Sugar should assist the Registrar in the discharge of his functions in respect of Co-operative Sugar Factories. The Additional Chief Marketing Officer has been designated as Ex-Officio Additional Registrar of Co-operative Societies.