59.R. Procedure where demand is paid before the sale.– (1) If at any time after a distraint has been made under this Chapter and before the sale of the distrained property, the defaulter or any other person deposits with the Collector or with the distraining officer the demand amount together with such costs as may have been incurred after the service of the notice of demand, the order of distraint shall not be executed.
(2) When the distraining officer receives the deposit, he shall forthwith remit it to the Collector.
(3) After the expiration of one month from the date on which the deposit is made under sub-section (1), the Collector shall pay to the society which applied for distraint the amount due to it;
Provided that, if before the expiry of the said period the Collector receives notice of any suit in which the legality of the distraint order is questioned or compensation is claimed for illegal distraint, he shall withhold payment to the society and shall deal with the money in accordance with such decree 153[or] order as may be passed in the suit.
59.S. Distraint of property which is under attachment.– Where an order of distraint issued under this Chapter and an order made by a Civil Court for attachment or sale relate to the same property, the order of distraint shall prevail; but if the property is sold under the order of distraint the surplus proceeds of the sale shall not be paid under section 59-P to the owner of the property without the sanction of the court by which the order of attachment or sale was made.
59-T. Suit for compensation for wrongful distraint and appeals.– No appeal shall lie against an order made by the Registrar or the Collector under this Chapter; but a person whose property is distrained on an application made under section 59-C may institute a suit against the applicant for recovery of compensation if such an application is not competent under that section.
59.U. Savings.– Nothing contained in this Chapter shall affect the operation of the provisions of 154[the Punjab Land Revenue Act, 1967 (W.P. Act XVII of 1967)] in so far as they give priority to claims of the Provincial Government to any moneys recoverable under the provisions of that Chapter over any other debt, demand or claim.]
60. Offences.– It shall be an offence under this Act if–
(a) Default by a society, officer or member– a society with a working capital of Rs.50,000 or more or an officer or member thereof fails without any reasonable excuse to give any notice, send any return or document, do or allow to be done anything which the society, officer or member is by this Act 156[or rules made thereunder] required to give, send, do or allow to be done; or
(b) Wilful neglect or default by a society, etc.– a society or an officer or a member thereof wilfully neglects or refuses to do any act or to furnish any information required for the purposes of this Act 157[or rules made thereunder] by the Registrar or other person duly authorised by him in writing in this behalf; or
(c) Wilful furnishing of false information– a society or an officer or member thereof wilfully makes a false return or furnishes false information; or
(d) Disobedience of summons, requisition, or order– any person wilfully or without any reasonable excuse disobeys any summons, requisition or lawful written order issued under the provisions of this Act 158[or rules made thereunder ] or does not furnish any information lawfully required from him by a person authorized to do so under the provisions of this Act 159[or rules made thereunder] 160[; or]
161[(e) Indulgence in fraudulent activities– a member of a society indulges in fraudulent or corrupt activities concerning the management or business of the society, or indulges in any illegal or corrupt practices, as defined in the Punjab Local Government Ordinance, 2001 (XIII of 2001), in the conduct of elections of the managing committee of the society; or
(f) Performing acts without approval– an officer, an employee of a society or a member of the managing committee of the society performs any act without prior approval of the Registrar or of the general body of the society where such prior approval is required by law; or
(g) Making a false report or refusing to do an act– an officer or a member of the internal audit committee of a society refuses or neglects to do an act which he is required by law to do or makes a false report; or
(h) Violation of the master plan– a member of the managing committee of a cooperative housing society commits any violation or breach of an approved master plan.]
61. Penalty for offences not otherwise provided for.– Every society, officer or member of a society or other person guilty of an offence under this Act for which no penalty is expressly provided herein shall be liable to a fine not exceeding 162[fifty thousand rupees].
62. Prohibition of the use of the word “co-operative”.– (1) No person other than a registered society shall without the sanction of 163[the Provincial Government], trade or carry on business under any name or title of which the word “co-operative” or its vernacular equivalent forms part:
Provided that nothing in this section shall apply to the use by any person or his successor in interest of any name or title under which he traded or carried on business at the date on which this Act comes into operation.
(2) Whoever contravenes the provisions of this section shall be punishable with fine which may extend to 164[fifty thousand] rupees and in the case of a continuing offence with further fine of 165[five hundred] rupees for each day on which the offence is continued after conviction therefor.
166[62.A. Penalty.– (1) Whoever contravenes the provisions of sub-section (3) of section 44-C or any direction given by the Registrar under section 44-D shall be guilty of an offence punishable with imprisonment of either description for a term which may extend to six months or with fine or with both.
(2) Whoever contravenes an order passed under section 44-E shall be guilty of an offence which shall be punished with imprisonment for a term which may extend to three years but which shall not be less than six months and shall also be liable to be punished with fine].
167[63. Cognizance of offences.– No court shall take cognizance of any offence punishable under this Act except on a complaint in writing made by the Registrar or by a person duly authorised, for the purpose, by him:
Provided that cognizance of an offence under sub-section (2) of section 62-A may be taken even otherwise than on such complaint.]
APPEALS AND REVISIONS]
64. Appeal.– An appeal against an order or decision of or sanctioned by the Registrar under Section 10, 16, 45, 47, 50, 50-A, 169[54 or sub-section (3) of section 54-A] may be made by any party aggrieved or affected by the order or decision to 170[the Provincial Government] within two months of the date of the communication of the order.
64.A. Power of Provincial Government and the Registrar to call for proceedings of subordinate officers and to pass orders thereon.– 171[The Provincial Government] and the Registrar may call for and examine the record of any inquiry or the proceedings of any officer subordinate to them for the purpose of satisfying themselves as to the legality or propriety of any decision or order passed and as to the regularity of the proceedings of such officer. If in any case, it shall appear to 172[the Provincial Government] or the Registrar that any decision or order or proceedings so called for should be modified, annulled or reversed, 173[the Provincial Government] or the Registrar, as the case may be, may pass such order thereon as to it or him may seem fit.
174[64.AA. Finality of orders of Provincial Government.– An order passed in appeal under section 64 or in revision under section 64-A by the Provincial Government shall be final and conclusive and shall not be liable to be called in question in any civil or revenue court.]
65. Recovery of sums due to Government.– (1) All sums due from a society or from an officer or member or past member of a society as such to 176[Government], may be recovered according to the law and under the rules for the time being in force for the recovery of arrears of land revenue.
(2) Sums due from a society to 177[Government] and recoverable under sub-section (1) may be recovered, firstly from the property of the society; secondly, in the case of a society of which the liability of the members is limited, from the members or past members subject to the limit of their liability; and, thirdly, in the case of other societies, from the members or past members.
(3) The liability of past members shall in all cases by subject to the provisions of section 28.
178[65.A. (1) A member of a society may execute an agreement in favour of the society providing that his employer shall be competent to deduct every month from the salary or wages payable to him by the employer such amount not exceeding the amount prescribed by rules, as may be specified in the application and pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.
(2) On the execution of such agreement the employer shall, if so required by the society and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement and pay the amount so deducted to the society.
(3) The provisions of this section shall also apply to all such agreements of the nature referred to in sub-section (1) as were in force on the date of the commencement of the 179[Sind] Co-operative Societies 180[* * *] (Second Amendment) Act, 1940, but nothing herein contained shall be deemed to authorise the deduction, under any such agreement, of any amount in excess of that prescribed by the rules.
181[(4) Nothing contained in this section shall apply to persons employed in mines of nuclear fuels, mineral oils and natural gas.]
182[65.B. Officers of societies to be public servants.– Every officer of a society, including a Co-operative bank, shall be deemed to be a public servant within the meaning of section 21 of the Pakistan Penal Code183]
66. Power to exempt societies from conditions as to registration.– Notwithstanding anything contained in this Act, 184[the Provincial Government] may, by special order in each case and subject to such conditions, if any, as it may impose, exempt any society from any of the requirements of this Act as to registration.
67. Powers to exempt societies from provisions of Act.– 185[The Provincial Government] may, by general or special order to be published in the 186[Official Gazette], exempt any society or class of societies from any of the provisions of this Act, or may direct that such provisions shall apply to such society or class of societies with such modifications as may be specified in the order; provided that no order to the prejudice of any society shall be passed without an opportunity being given to such society to represent its case.
68. Companies Act not to apply.– The provisions of the 187[* * *] Companies Act of 1913188, shall not apply to societies registered under this Act.
69. Branches, etc., of societies outside the province.– Every co-operative society registered outside the 189[Province of West Pakistan], which has or establishes a branch or place of business in the 190[Province of West Pakistan] shall within six months from the commencement of this Act or from the establishment of such branch or place of business, file with the Registrar a certified copy of the by-laws and amendments and, if these are not written in the English language, a certified translation in English thereof, and shall submit to the Registrar such returns and information as are submitted by similar societies in the 191[Province of West Pakistan] in addition to those submitted to the Registrar of the province where it is registered.
70. Notice necessary in suits.– No suit shall be instituted against a society or any of its officers in respect of any Act touching the business of the society until the expiration of two months next after notice in writing has been delivered to the Registrar, or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims; and the plaint shall contain a statement that such notice has been so delivered or left.
192[70.A. Bar of Jurisdiction.– (1) Notwithstanding anything provided in any other law for the time being in force, but save as expressly provided in this Act–
(a) no Court or other authority whatsoever shall have jurisdiction to entertain, or to adjudicate upon, any matter which the Provincial Government, the Registrar or his nominee, any arbitrator or liquidator, a society, a financing bank, a Co-operative bank or any other person is empowered by or under this Act, or the rules or by-laws framed thereunder, to dispose of or to determine;
(b) the validity of anything done or an order passed by the Provincial Government, a society, a financing bank, a Co-operative bank, the Registrar or any other person referred to in clause (a), under this Act or the rules and by-laws framed thereunder, shall not be called in question in any manner whatever before or by any Court or other authority whatsoever; and
(c) no Court or other authority whatsoever shall be competent to grant any injunction or pass any other order in relation to any proceedings under this Act or any rules or by-laws framed thereunder before the Provincial Government, a society, a financing bank, a Co-operative bank, the Registrar or any other person referred to in clause (a).
(2) The provisions of sub-section (1) shall be applicable to proceedings, appeals and revisions pending adjudication or disposal before or in any Court or other authority whatsoever on the date that the Co-operative Societies (Amendment) Ordinance, 1966, comes into force, and any order passed in such proceedings, whether before or after the coming into force of the said Ordinance, in regard to matters referred to in sub-section (1), shall stand vacated and be without any force.]
71. Rules.– (1) 193[The Provincial Government] may, for the whole or any part of the 194[Province] and for any society or class of societies, make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power such rules may–
(a) subject to the provisions of section 6, prescribe the maximum number of shares or portion of the capital of a society which may be held by a member;
(b) prescribe the forms to be used and the conditions to be complied with in the making of applications for the registration of a society and the procedure in the matter of such applications;
(c) prescribe the matters in respect of which a society may or shall make by-laws and the procedure to be followed in making, altering and abrogating by-laws and the conditions to be satisfied prior to such making, alteration or abrogation;
(d) prescribe the conditions to be complied with by persons applying for admission or admitted as members and provide for the election and admission of members and the payment to be made and the interests to be acquired before the exercise of the right of membership;
(e) provide for ascertaining the value of a deceased member’s share or interest;
(f) provide for general meetings of the members and for the procedure at such meetings and the powers to be exercised by such meetings;
(g) provide for the appointment, suspension and removal of the members of the committee and other officers and for the procedure at meetings of the committee and for the powers to be exercised and the duties to be performed by the committee and other officers;
195[(ga)] provide, where all the members of the committee have been suspended or removed, for the appointment of a person to administer the affairs of the society and for the powers to be exercised and the duties to be performed by such person;
(h) prescribe the accounts and the books to be kept by a society and provide for the audit of such accounts, and the charges, if any, to be made for such audit, and for the periodical publication of a balance sheet showing the assets and liabilities of a society;
(i) prescribe the returns to be submitted by a society to the Registrar and provide for the persons by whom and the form in which such returns shall be submitted;
(j) provide for the persons by whom and the form in which copies of documents or entries in books of societies may be certified, and for the charges to be levied for the supply of such copies;
(k) provide for the formation and maintenance of a register of members, and where the liability of the members is limited by shares, of a register of shares;
(l) prescribe the payments to be made and the conditions to be complied with by members applying for loans, and the period for which loans may be made, and the amount which may be lent to an individual member;
196[(m) prescribe the conditions, prohibitions and restrictions subject to which a society may–
(i) transact business with persons who are not members; or
(ii) make loans against the security of movable property;]
(n) provide for the formation and maintenance of reserve funds, and the objects to which such funds may be applied, and for the investment of any funds under the control of a society;
(o) prescribe the extent to which a society may limit the number of its members;
(p) prescribe the conditions under which profits may be distributed to the members of a society and the maximum rate of dividend which may be paid by societies;
(q) Prescribe the procedure to be followed in presenting and disposing of appeals;
(r) provide for securing that the share capital of any society shall be variable in such a way as may be necessary to secure that shares shall not appreciate in value and that necessary capital shall be available for the society as required;
(s) Provide that persons qualified under the by-laws of a society shall not be excluded from membership without due cause;
(t) prescribe the procedure to be followed by a liquidator appointed under section 47;
(u) prescribe the mode of appointing an arbitrator or arbitrators and the procedure to be followed in proceedings before the Registrar or such arbitrator or arbitrators and for fixing and levying the expenses of determining the dispute;
(v) provide for the issue and service of processes and for proof of service thereof;
(w) provide for the writing off of bad debts;
(x) regulate the manner in which funds may be raised by means of shares or debentures 197[,participation term certificates, term finance certificates, musharika certificates, modaraba certificates, and such other instruments as may be approved by the State Bank of Pakistan], or otherwise;
(y) provide for the withdrawal and expulsion of members and for the payments to be made to them and for the liabilities of past members;
(z) provide for the nomination of a person to whom the interest of a deceased member may be paid or transferred;
(aa) prescribe the cases in which an appeal shall lie from the order of a liquidator appointed under section 47;
(bb) provide for the inspection of documents in the Registrar’s office and the levy of fees for granting certified copies of the same;
(cc) prescribe the procedure to be followed for the custody of property attached under section 55;
198[(cca) prescribe the manner in which an order under sub-section (3) or sub-section (4) of section 59-E or a notice of demand shall be served or published;
(ccb) prescribe the particulars to be supplied to the Collector under sub-section (1) of section 59-F;
(ccc) prescribe the manner in which a notification of distraint should be published under sub-section (2) of section 59-F;]
(dd) provide for the payment of contributions at such rates and subject to such conditions as may from time to time be prescribed by co-operative societies to any provident fund which may be established for the benefit of officers and servants employed by them; 199[* * *]
(ee) prescribe the period and terms under which Government aid may be given to co-operative societies and the terms under which 200[the Provincial Government] may guarantee the payment of 201[the principal of and] interest 202[or return] on 203[instruments referred to in clause (x) of this sub-section] issued by registered societies;
204[(ff) prescribing the manner in which any property shall be delivered to, and the terms and conditions subject to which such property shall be held by, a society under section 59-A 205[;]
206[(gg)] Provide that the contravention of any rule or order issued thereunder shall be punishable with fine not exceeding rupees 207[five thousands] 208[; and]
209[(hh) prescribe the environmental standards and the standards for the use of land.]
(3) 210[The Provincial Government] may, subject to such conditions, if any, as it thinks fit, delegate all or any of its powers to make rules under this section to any authority specified in the order of delegation.
(4) The power to make rules conferred by this section is subject to the condition of the rules being made after previous publication.
211[(5)* * * * * * * * * * * *]
212[72. Repeal and savings.– (1) The following enactments are hereby repealed:-
(a) the Co-operative Societies Act, 1912; and
(b) the Bombay Co-operative Societies Act, 1925213, as applicable to the District of Karachi.
(2) Every society now existing which has been registered under the Co-operative Societies Act, 1904214, or under the Co-operative Societies Act, 1912215, shall be deemed to be registered under this Act, and its by-laws shall, so far as the same are not inconsistent with the express provisions of this Act, continue in force until altered or rescinded.
(3) All rules, regulations, notifications and orders made or issued under this Act and in force at the time of the commencement of the Sind Co-operative Societies (West Pakistan Amendment) Ordinance, 1965216, shall, so far as may be, extend and apply, until altered, amended or rescinded by competent authority to the areas to which this Act has been extended by the Sind Co-operative Societies (West Pakistan Amendment) Ordinance, 1965217].
218[(4) The repeal of the Acts specified in sub-section (1) hereinafter referred to as the repealed Acts, shall not–
(a) revive anything not in force or existing at the time at which the repeal takes effect; or
(b) affect the previous operation of the repealed Acts or anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation or liability acquired, accrued or incurred under the repealed Acts; or
(d) affect any penalty, forfeiture or punishment incurred in respect of any offence committed against any repealed Act; or
(e) affect any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture, or punishment as aforesaid, and any such investigation, legal proceeding or remedy may be instituted, continued, or enforced, and any such penalty or forfeiture or punishment may be imposed as if this Act had not been passed.
(5) Any person who immediately before the coming into force of the Sind Co-operative Societies (West Pakistan Amendment) Ordinance, 1965, was appointed as, or was exercising the powers of, a Registrar, Liquidator, Registrar’s nominee or any other authority, under any repealed Act, shall be deemed to have been so appointed under this Act, and shall continue to exercise the powers of the Registrar, Liquidator, Registrar’s nominee, or other corresponding authority, as the case may be, under this Act, until such appointment is rescinded by the competent authority under this Act.]
219[72.A. Construction of references to Co-operative Societies Act, 1912, in enactments.– All references to the Co-operative Societies Act, 1912220, occurring in any enactment made by any authority in 221[Pakistan] and for the time being in force in 222[the Province of West Pakistan] shall, in the application, to the 223[said Province], of any such enactment, be read and construed as references to this Act and anything done or any proceeding commenced in pursuance of any such enactment on or after the date on which this Act shall have come into operation shall be deemed to have been done or to have been commenced and to have had effect as if the reference in such enactment to the Co-operative Societies Act, 1912224, had been the reference to this Act, and no such thing or proceeding shall be deemed to have been invalid on the ground that such enactment did not refer to this Act.]