Amendment status not verified — confirm the current text below against the official source.
(1) No act of a society or committee or any officer, done in good faith in pursuance of the business of the society shall be deemed to be invalid by reason only of some defects subsequently discovered in the organisation of the society or in the constitution of the committee, or in the appointment or election of an officer or on the ground that such officer was disqualified for his office. (2) No act done in good faith by any person appointed under this Act, the rules and the bye-laws shall be invalid merely by reason of the fact that his appointment has been cancelled by or in consequence of any order subsequently passed under this Act, rules, and the bye-laws. (3) The Registrar shall decide whether any act was done in good faith in pursuance of the business of the society; and his decision thereon shall be final. (74) (1) If, in the opinion of the Registrar, the committee of any society on any member of such committee persistently makes default, or is negligent, in the performance of the duties imposed on it or him by this Act or the rules or the bye-laws, or commits any act which is prejudicial to the interests of the society or its members, or willfully disobeys directions issued by the Registrar for the purpose of securing proper implementation of co-operative production and other development programmes approved or undertaken by Government, “or does not hold annual general meetings, or does not conduct the election of the Board of Directors as per provisions of this Act and rules framed there under, or if the overdue loans of a society exceeds the amount of net worth of the society and if in the opinion of the Registrar the said position is not likely to be improved by the present management, or if the cumulative net loss exceeds the paid up share capital of a society where the Government has contributed the major part of the share capital 5 of 1898 Acts of societies etc. not to be invalidated by certain defects Power of Removal of committee or member thereof 41 and if in the opinion of the Registrar the position is not likely to be improved by the present management of the Society”*1 or is otherwise not discharging its or his functions properly, the Registrar may, after giving the committee or the member, as the case may be, an opportunity of standing its or his objections (if any) within fifteen days from the date of issue of notice, and after consulting the federal society to which the society is affiliated, by order published in the Official Gazette, -- (a) remove the committee, and (i) appoint a committee, consisting of three or more members of the society, in its place ; or (ii) appoint one or more administrators, who need not to be members of the society, to manage the affairs of the society for a period ( not Exceeding” two months) “*3 specified in the order. (b) remove the member and appoint any person as a member of such committee, in his place, for the remainder of the term of office of the member removed. “Explanation For the purpose of this sub-section ‘net worth’ shall mean the fixed assets minus depreciation, reserve funds, if any, cash in hand and at Bank, investments in Government securities, other investments in public sector or Joint Sector under- takings, investments in other Co-operative Societies, advances to contractors or suppliers under written agreements and other current assets, but shall not include the overdue loans”*2. (2) The committee or administrator so appointed shall, subject to the control of the Registrar and so 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 action as may be required in the interest of the society. The committee or administrator appointed as aforesaid shall, notwithstanding anything contained in the bye-laws, have power to call a special general meeting of the society to review or to reconsider the decision or the resolution taken or passed at the general meeting called by the previous committee or to endorse actions taken by it. --------------------------------------------------------------------------------------------------------------------- *1 and *2 are inserted Tripura Co-operative Societies Amendment Act, 1980. *3” one year” substituted by “two months” rest word of after the word” order” is deleted by TCS(Second Amendment) Act 2009. (3) The Registrar may fix the remuneration payable to the administrators and any expenses of management which shall be payable out of the funds of the society within such time and as such intervals as the Registrar may fix, and if such remuneration or expenses are not paid within such time or at such intervals the Registrar may direct the person having custody of the funds of the society to pay to the administrators such remuneration and expenses in priority to any other payments (except land revenue, arrears of land revenues, or any sum recoverable from the society as arrears of land revenue) and he shall, so far as the funds to the credit of the society allow, comply with the orders of the Registrar. (4) If at any time during any period…*1 referred to in sub-section (1). it appears to the Registrar that it is no longer necessary to continue to carry on the affairs of the society as aforesaid, the Registrar may be an order published in the Official Gazette, direct that the 42 management shall terminate; and on such order being made, the management of the society shall be handed over to a new committee duly constituted. (5) The committee or administrator shall, at the expiry or termination of it or his term of office, arrange for the constitution of a new committee in accordance with the bye- laws of the society. (6) All acts done or purported to be done by the committee or administrator during the period the affairs of the society are carried on by the committee or administrator appointed under sub-section (1), shall be binding on the new committee. “(7) “The committee of a State Cooperative Bank shall be superseded only in consultation with Reserve Bank of India.”*2 (8) The committee of a primary agricultural credit society shall be superseded by the Registrar only under the following conditions: (i) that a society incurs losses for three consecutive years’ or (ii) that serious financial irregularities or frauds have been identified; or (iii) that there are judicial directives to this effect ; or (iv) there is a lack of quorum for 3 (three) consecutive meetings. Provided that members of the committee of a primary agriculture cooperative society which has been superseded will be disqualified to contest the election to any committee for a period of at least three consecutive years from the date of suppression.”*3 ----------------------------------------------------------------------------------------------------------------- *1 the word” extended period” deleted by TCS (Second Amendment) Act 2009. *2 Subsection (7) is substituted by TCS (Fourth Amendment) 2018. *3 Sub- section (7) and (8) inserted by TCS (Second Amendment) Act 2009.