The co-operative societies act, 1925 (Sind Act VII of 1925) content s chapter I preliminary Sections Short titl




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54. Arbitration.– 119[119][If any dispute touching the business of a society (other than a dispute regarding disciplinary action taken by the society or its committee against a paid servant of the society) arises–

(a) between members or past members of the society or persons claiming through a member or past member, or

(b) between members or past members or persons so claiming and any past or present officer, agent or servant of the society, or

(c) between the society or its committee, and any past or present member of the society, or

(d) between the society or its committee, and any past or present officer, agent or servant of the society, or a surety of such officer, agent or servant, whether such surety is or is not a member of the society, 120[120][or].

121[121][(e) between a financing bank authorised under sub-section (1) of section 34 and a person who is not a member of a society],

it shall be referred to the Registrar for decision by himself or his nominee, or if either of the parties so desires, to arbitration of three arbitrators who shall be the Registrar or his nominee and two persons of whom one shall be nominated by each of the parties concerned.]

A dispute shall include 122[122][the question whether a person is or was a member of a society and also] claims by a society for debts or demands due to it from 123[123][a member, past member or non-member] or the heirs or assets of a past member 124[124][or non-member] whether such debts or demands be admitted or not:

Provided that if the question at issue between a society and a claimant, or between different claimants, is one involving complicated questions of law and fact, the Registrar may, if he thinks fit, suspend proceeding, in the matter until the question has been tried by a regular suit instituted by one of the parties or by the society. If no such suit is instituted within six months of the Registrar’s order suspending proceedings, the Registrar shall take action as laid down in paragraph 1 of this section.



125[125][54-A. Registrar’s power to set aside the award and order the dispute to be referred back to arbitration.– 126[126][(1) In the case of any award made by the arbitrators under section 54, the Registrar, if he is not one of such arbitrators, may of his own motion or on the application of any of the parties to the award, by an order in writing recording reasons therefore,–

(a) modify or correct the award (i) where it appears that a part of the award is upon a matter not referred to arbitration and such part can be separated from the other part and does not affect the decision on the matter referred; or (ii) Where the award is imperfect in form or contains any obvious error which can be amended without affecting such decision; or (iii) where the award contains a clerical mistake or an error arising from an accidental slip or omission; or

(b) remit the award or any matter referred to arbitration to the arbitrators for reconsideration–

(i) where the award has left undetermined any of the matters referred to arbitration or where it determines any matter not referred to arbitration and such matter cannot be separated without affecting the determination of the matters referred, or

(ii) where the award is so indefinite as to be incapable of execution, or

(c) set aside the award and order that the dispute shall be referred to arbitration in the manner provided in the said section:

Provided that no order referred to in clauses (a) to (c) shall be made after the issue of a certificate under section 59 for the execution of the award:

Provided further that no order under clause (c) shall be made unless the Registrar is of opinion that–

(i) an objection to the legality of the award is apparent on the face of it, or

(ii) the award has been vitiated in consequence of corruption or misconduct on the part of the arbitrators, or

(iii) the award is in any way perverse.]

(2) In making an order under 127[127][clause (c) of] sub-section (1), the Registrar may direct that all or any of the arbitrators who made the award shall not act again as arbitrators for deciding the dispute.

(3) Where a dispute is referred back to arbitration under 128[128][clause (c) of] sub-section (1), the arbitrators shall make a fresh award within such time as may be fixed by the Registrar. If the arbitrators fail to make a fresh award within the time so fixed, the Registrar or his nominee shall decide the dispute.]

55. Attachment before award.– Where a dispute has been referred to the Registrar under section 54 or to arbitration under clause (g) of section 50, the Registrar or his nominee or the arbitrators, as the case may be, if satisfied on inquiry or otherwise, that a party to such arbitration with intent to delay or obstruct the execution of any award that may be made,–

(a) is about to dispose of the whole or any part of his property, or

(b) is about to remove the whole or any part of his property from the jurisdiction of the Registrar,

may unless adequate security is furnished direct the conditional attachment of the said property; and such attachment shall have the same effect as if made by a competent Civil Court.



56. Appeal against award of arbitrator.– Any party aggrieved by any decision of the Registrar’s nominee made under section 54 129[129][or sub-section (3) of section 54-A] or an order passed under section 55 by the Registrar’s nominee or arbitrators may within one month of the date of the award or order appeal to the Registrar and the Registrar shall decide the appeal 130[130][* * *].

131[131][57. Finality of awards in certain orders.– The award of arbitrators or a decision by the Registrar or his nominee under section 54 or section 54-A or an order passed in appeal by the Registrar under section 56 shall, subject to the provisions of sections 64 and 64-A, be final and conclusive and shall not be liable to be called in question in any civil or revenue court.]

58. Powers to enforce attendance.– Wherever in this Act it is provided that the Registrar or person duly authorized by general or special order in writing by the Registrar in this behalf shall hold an inquiry under section 43 or shall make an inspection under section 44 or shall wind up a society or shall arbitrate, such Registrar, or person authorized, as the case may be, shall have the power to summon and enforce the attendance of witnesses including the parties interested or any of them and to compel them to give evidence, and to compel the production of documents by the same means and as far as possible in the same manner as is provided in the case of a civil court by the Code of Civil Procedure, 1908132[132].

59. Money how recovered.– (1) 133[133][Every order passed by a liquidator under section 50, or by the Registrar under section 50-A, or by the Registrar or his nominee or arbitrators on disputes referred to him or them under clause (g) of section 50 or under section 54 or under sub-section (3) of section 54-A, every order passed in appeal, under section 56, every order passed by the Provincial Government in appeal against orders under sections 50, 50-A, 54 or sub-section (3) of section 54-A and every order passed under section 64-A shall, if not carried out, 134[134][* * *]:

135[135][(a) on a certificate signed by the Registrar or a liquidator, be deemed to be a decree of a Civil Court and shall be executed in the same manner as a decree of such court; or]

136[136][(b) be executed according to the law for the time being in force for the recovery of arrears of land revenue; provided that any application for recovery of the amount in such a manner shall be made to the Collector and shall be accompanied by a certificate signed by the Registrar or by an officer subordinate to the Registrar to whom the said power has been delegated by the Registrar.]

137[137][(2) Powers of Registrar to recover certain sums by attachment and sale of property.– The Registrar or any person subordinate to him empowered by the Registrar in this behalf may, subject to such rules as may be prescribed by the Provincial Government and without prejudice to any other mode of recovery provided by or under this Act, recover by exercising powers of the Collector under the 138[138][Sind] Land Revenue Code, 1879139[139], 140[140][or the relevant provisions of any other law relating to land revenue in force in the area], and the Rules thereunder–

(a) any amount due under a decree or order of a Civil Court, a decision or an award of the Registrar, obtained by a registered society including a financing bank or liquidator; or

(b) any sum awarded by way of costs under sections 44-B and 45; or

(c) damages assessed in sections 22-A and 50-A; or

(d) penalty provided for in sections 61 and 62; or

(e) sums due to 141[141][Government] under section 65, together with the interest, 142[142][or return], if any, due on such amount or sum and the cost of process, by the attachment and sale or by the sale without attachment of property of the person against whom such decree, decision, award or order has been obtained or passed.

(3) Registrar or person empowered by him to be a Civil Court for certain purposes.– The Registrar or any person empowered by him in that behalf shall be deemed when exercising any powers under this Act for the recovery of any amount by the attachment and sale or by the sale without attachment of any property, or when passing any orders on any application made to him for such recovery or to take some step-in-aid of such recovery to be a Civil Court for the purposes of Article 182 of the First Schedule to the Limitation Act, 1908143[143].]

144[144][(4) The Government or the Registrar may, on an application, direct that an order or award, passed under this Act, shall be executed in accordance with the provisions of the Civil Procedure Code, 1908 (Act V of 1908) or any other law for the time being in force.

(5) The Registrar or any other officer subordinate to him, duly authorized by the Government to execute the orders or the awards, shall be deemed to be a civil court and shall have the powers vested in an executing court under the Civil Procedure Code 1908 (Act V of 1908).]



145[145][59-A. Transfer of property which cannot be sold.– (1) When in execution of an order sought to be executed under section 59, any property cannot be sold for want of buyers, if such property is in the occupancy of the defaulter or of some person on his behalf or of some person claiming under a title created by the defaulter subsequently to the issue of the certificate of the Registrar, Liquidator or Assistant Registrar under clause (a) or (b) of sub-section (1), the Court or the Collector, as the case may be may, with the previous consent of the Registrar, direct that the said property or any portion thereof shall be transferred to the society which has applied for the execution of the said order and that the said property or the portion shall be delivered to the society in the prescribed manner.

(2) Subject to such rules as may be made in this behalf and to any right, encumbrances, charges or equities lawfully subsisting in favour of any other person, such property or portion thereof shall be held by the said society on such terms and conditions as may be agreed upon between the Court or the Collector, as the case may be, and the said society:

Provided that any private transfer or delivery of or encumbrance or charge on the property made or created after the issue of the certificate of the Registrar, Liquidator or Assistant Registrar, as the case may be, under section 59 shall be null and void as against the said society].

146[146][CHAPTER VIII-A

DISTRAINT

59-B. Definitions.– In this Chapter, unless there is anything repugnant in the subject or context–

(a) “Collector” includes an officer appointed by the Provincial Government to discharge any of the functions of the Collector under this Chapter;

(b) “defaulter” means a person (including his legal representatives if he is dead) from whom any such debt or outstanding demand as is referred to in section 59-C is recoverable;

(c) words and expressions used herein and not hereinbefore defined shall have the meanings respectively assigned to them by the 147[147][Sind] Land Revenue Code, 1879148[148] 149[149][or any other law relating to land revenue in force in the area].



59-C. Cases in which application for distraint may be made.– Where any debt or outstanding demand is due to a society from any member or past member or is due to a society which is authorised by the Registrar under sub-section (1) of section 34 to make loan to non-members, from any person who is not a member of a society, the society may, in addition to any other remedy to which it is entitled by law, present an application to the Registrar requesting him to recover the debt or outstanding demand by distraining, while in the possession of the defaulter any crop or other produce belonging to him, whether the same is growing or is ungathered or has been reaped or gathered.

59-D. Form of application.– (1) Every application under the last foregoing section shall specify–

(a) particulars of the land on which the crop or produce is or has been grown;

(b) the name of the defaulter;

(c) a detailed account of the debts and outstanding demands due to the society;

(d) the nature and approximate value of the crop or produce to be distrained;

(e) if the crop of produce is growing or is ungathered, the time at which it is likely to be fit to be reaped or gathered; and

(f) if the crop or produce has been reaped or gathered, the place where it is kept or such other particulars as may suffice for its identification.

(2) The application shall be signed and verified in the manner prescribed by the Code of Civil Procedure, 1908, for the signing and verification of plaints.



59-E. Procedure on receipt of application.– (1) A society shall at the time of making an application under section 59-C, file before the Registrar such documentary evidence, if any, as it may consider necessary for the purpose of proving the statements made in the application.

(2) The Registrar may, after taking such evidence as he thinks fit, admit the application or reject it:

Provided that the person against whom the application is made shall be given a reasonable opportunity of being heard.

(3) Where the Registrar does not at once admit or reject the application, he may make an order prohibiting removal of the crop or other produce specified in the application, pending a final decision on the application.

(4) Where an order for distraining any crop or produce is made under this section a considerable time before the crop or produce is likely to be fit to be reaped or gathered, the Registrar may suspend the execution of the order for such time as he thinks fit and may make a further order prohibiting the removal of such crop or produce pending the execution of the order of distraint.

(5) An order under sub-section (3) or sub-section (4) shall be served and published in such manner as may be prescribed by rules.

(6) Any person who shall disobey any order made under sub-section (4) prohibiting the removal of any crop or produce pending the execution of the order of distraint, after the same has been published or served upon him, or who shall, within the meaning of the 150[150][Pakistan] Penal Code, abet the disobedience of any such order, shall be liable, on conviction after a summary enquiry by the Collector, to a fine not exceeding double the amount due to the society for the recovery of which it is proposed to make the distraint. Such fine shall be recovered as an arrear of land revenue.

59-F. Execution of order for distraint.– (1) If the application is admitted under the last foregoing section and an order for distraining any crop or produce is made, the Registrar shall send to the Collector for execution a copy of the order together with such particulars as may be prescribed by rules.

(2) Upon receipt of a copy of the order referred to in sub-section (1) the Collector shall depute an officer to distrain the crop or produce specified therein or such portion thereof as the Collector thinks fit and the officer so deputed shall at once proceed to the place where the crop or produce is or is kept, and distrain the same by taking charge of it himself or by placing it in the charge of some other person appointed by him in this behalf. The distraining officer shall publish a notification of the distraint in the manner prescribed by rules.

(3) Any crop or produce which from its nature does not admit of being stored shall not be distrained at any time less than twenty days before the time at which it is likely to be fit to be reaped or gathered.

59-G. Service of notice of demand and the grounds of distraint.– (1) The distraining officer shall, at the time of making the distraint serve on the defaulter–

(a) a notice of demand for the amount due and the costs incurred in making the distraint (herein after called the demand amount); and

(b) a statement of the grounds on which the distraint is made.

(2) The notice of demand and the statement shall be served in such manner as may be prescribed by rules.



59.H. Right to reap, etc., produce.– (1) Subject to such conditions as the Collector may impose in this behalf either in the order of distraint or in any subsequent order, the defaulter may tend, reap, gather or store the crop or produce and do any other act necessary for maturing or preserving it; and if the defaulter fails to do all or any of such acts, the distraining officer may appoint a person to do all or any of them, and the costs incurred by the distraining officer for this purpose shall be recoverable from the defaulter as if they were included in the costs of distraint.

(2) The crop or produce reaped or gathered by defaulter shall remain in charge of the distraining officer or some other person appointed by him in this behalf.



59.I. Sale proclamation to be issued unless demand is satisfied.– (1) Unless the demand amount is immediately paid, the distraining officer shall issue a proclamation in 151[151][the local language of the area] of the intended sale specifying the particulars of the property distrained and the demand amount for which it is distrained and shall further notify that he will, at a place and on a day specified, not being less than three or more than seven days from the date of the distraint, sell the distrained property by public auction:

Provided that when the crop or other produce distrained is capable of being stored but has not been stored, the day of the sale shall be so fixed as to allow of its being stored before the sale.

(2) Such proclamation shall be made by beat of drum in the village in which the distrained property was seized and a copy of the proclamation shall be affixed in some public place in the village and in the Mukhtiarkar’s office.

59.J. Place of sale.– The sale shall be held–

(a) in the case of a growing crop on or near the land on which such crop has been grown, or

(b) if the crop or produce has been reaped or gathered, at or near the place where it is kept:

Provided that the distraining officer may direct the sale to be held at the nearest place of public resort, if he is of opinion that the crop or produce is thereby likely to sell to greater advantage.



59.K. Provisions relating to growing crops.– (1) Where the crop is growing one and from its nature admits of being stored, the sale shall not be held until the crop is reaped or gathered and is ready for storing.

(2) Where the crop from its nature does not admit of being stored, it may be sold before it is reaped or gathered, and the purchaser shall be entitled to enter on the land by himself or by any other person appointed by him in this behalf and to do all acts necessary for the purpose of tending, reaping or gathering the crop.



59.L. Manner of sale.– The distrained property shall be sold by public auction in one or more lots as the officer holding the sale may determine; and if the demand amount is realised by the sale of a portion of the property, the order of distraint shall not be executed with respect to the remainder.

59.M. Postponement of sale.– If, on the distrained property being put up for sale, a fair price, in the opinion of the officer holding the sale, is not offered for it, and if the owner of the property or a person authorised to act on his behalf applies to have the sale postponed to the next day, the sale shall be postponed until that date and shall then be completed whatever may be the price offered for the property.

59.N. Payment of purchase money.– (1) The price of each lot shall be paid at the time of sale or as soon thereafter as the officer holding the sale directs, and in default of such payment the property shall forthwith be resold.

(2) Any deficiency of price which may happen on a resale by reason of the purchaser’s default, and all expenses attending such resale, shall be certified to the Collector by the officer holding the sale, and shall, at the instance of the society or the defaulter, be recoverable from the defaulting purchaser as if they were an arrear of land revenue.



59.O. Certificate be given to the purchaser.– When the purchase money has been paid in full the officer holding the sale shall grant a receipt for the same and the sale shall become absolute as against all persons whomsoever.

59.P. Proceeds of sale how to be applied.– (1) When any property is sold under this Chapter the proceeds of the sale shall be applied to defraying the costs of distraint and sale and to the payment of the amount for which the distraint was made and the surplus, if any, shall be paid to the person whose property has been sold.

(2) The costs of distraint and sale shall be estimated at such rates as may, from time to time, be sanctioned by 152[152][Executive District Officer (Revenue) or any other officer authorized by the Government in this behalf].



59.Q. Certain persons may not purchase.– No officer or other person having any duty to perform in connection with any distraint or sale made under this Chapter and no officer or servant of any society shall, either directly or indirectly, acquire or attempt to acquire any interest in the property sold.
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