THE KARNATAKA CO-OPERATIVE SOCIETIES (SECOND AMENDMENT) ACT, 2010
(Received the assent of the President on the Nineteenth day of July, 2012)
KARNATAKA ACT NO. 28 OF 2012
(First Published in the Karnataka Gazette Extra-ordinary on the thirty-first day of July, 2012)
An Act, further to amend the Karnataka Co-operative Societies Act, 1959.
Whereas it is expedient to amend the Karnataka Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959) for the purposes hereinafter appearing;
Be it enacted by the Karnataka State Legislature in the sixty first year of the Republic of India as follows:-
1. Short title and commencement.- (1) This Act may be called the Karnataka Co-operative Societies (Second Amendment) Act, 2010.
(2) It shall come into force on such date as the State Government may, by notification, appoint.
2. Insertion of section 14A.- After section 14 of the Karnataka Co-operative Societies Act, 1959 (Karnataka Act 11 of 1959), the following section shall be inserted, namely:-
"14A. Power to direct amalgamation, division and re-organisation in public interest.- (1) Notwithstanding anything contained in this Act or the rules made thereunder and the bye-laws of the co- operative societies concerned, where the Registrar, is satisfied that it is essential in public interest or in the interest of co-operative movement or for the purpose of securing the proper management of any co- operative societies without compromising their financial viability that any two or more co-operative societies should be amalgamated to form a single co-operative society or any co-operative society should be divided or any co-operative society should be reorganized, the Registrar shall order the amalgamation, division or reorganization of such co-operative societies:
Provided that in case of a co-operative bank no order under this sub-section shall be made without the previous sanction in writing of the Reserve Bank.
(2) No order under sub-section (1) shall be made by the Registrar or any other officer without giving an opportunity of making representation or of being heard with a notice of not less than thirty days to any co-operative society or person likely to be affected by such order.
(3) The order shall,-
(a) provide for the devolution of the assets and liabilities of the co-operative society or societies amalgamated, divided or reorganized and the date on which the devolution takes effect;
(b) specify,–
(i) the composition, strength, names and the term of office of the members (including the Chairman) of the first committee;
(ii) who shall subject to section 29G be, the Managing Director / Secretary, of the new co-operative society or each of the co-operative societies, as the case may be; and
(iii) the bye-laws which the new co-operative society or each of the new co-operative societies shall, until amended in accordance with the provisions of the Act and the rules, follow:
Provided that the Registrar may by order curtail the term under sub-clause (i) and take necessary steps to hold general meeting of the co-operative society and elections before the expiry of the term so curtailed.
(4) Every order under sub-section (3) shall be published in the Official Gazette and shall, unless otherwise specified in the order, come into force on such publication.
(5) The order referred to in sub-section (1), may contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation or division or reorganization as the case may be.
(6) Notwithstanding anything contained in the Transfer of Property Act, 1882 (Central Act 4 of 1882) or the Registration Act, 1908 (Central Act 16 of 1908), in the event of amalgamation, the registration of the amalgamated co-operative society and in the event of division, the registration of new co-operative societies shall with effect from the date specified in the order of amalgamation or division in each case be sufficient conveyance to vest the assets and liabilities of the amalgamating co-operative societies or the original co-operative society in the amalgamated co-operative society or the new co- operative societies, as the case may be.
(7) The amalgamation or division or reorganization of a co-operative society shall not affect any right or obligation of the co-operative societies so amalgamated or the co-operative society so divided or reorganized or render defective any legal proceedings which might have been continued or commenced by or against the co-operative societies which have been so amalgamated or divided or reorganized and accordingly such legal proceedings may be continued or commenced by or against the amalgamated co-operative society, the reorganized co-operative society or the new co-operative societies as the case may be."
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