Delhi Co-operative societies Law

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Delhi Co-operative societies Law

Delhi Co-operative societies Law

The Societies Registration Act, 1860 is legislation in India which allows the registration of entities generally involved in the benefit of society – education, health, employment etc. The British Indian Empire, with a wish to encourage such activities and to promote the formal organisation of groups of like-minded people, incorporated the Act 21 of 1860, in other words, The Societies Registration Act, 1860 (21 of 1860), which came into force on 21 May 1860. The Act continues until today and being an Act of Parliament, comes under the Right to Information Act, wherein the government is legally responsible to give any information requested by any citizen of India with respect to any society.

The Indian Societies Registration Act of 1860 was enacted under the British Raj in India, but is largely still in force in India today. It provides for the registration of literary, scientific and charitable societies.

Under the Act societies may be formed, by way of a memorandum of association, by any seven or more people associated for any literary, scientific or charitable purpose. The memorandum of association has to be filed with the Registrar of Societies. The memorandum has to contain the name of the society, its objects, and the names, addresses, and occupations of the members of the governing body, by whatever name it may be called, duly signed for consent by all the members forming the society. A copy of the rules and regulations of the society also has to be filed along with the memorandum of association. A fee of Rs.50 is payable in cash, for registration.

Types of Cooperative Society

  • Producer Cooperative: To protect the interest of small producers, these societies are set up. The co-operative society members may be farmers, landowners, owners of the fishing operations. To increase the marketing possibilities and production efficiency, producers decide to work together or as separate entities. They perform several activities like processing, marketing & distributing their own products. This helps in lower costs and strains in each area with a mutual benefit to each producer.
  • Consumer Cooperative: These businesses are owned and governed by consumers of a particular area for their mutual benefit. Their view is to provide daily necessary commodities at an optimum price. Rather than earning a pecuniary profit, their aim is towards providing service to the consumers.
  • Credit Unions: Credit unions are generally member-owned financial cooperatives. Their principle is of people helping people. They provide credit and financial services to the members at competitive prices. Each and every depositor has the right to become a member. Members attend the annual meeting and are given rights to elect a board of directors.
  • Marketing Cooperative Society: With an aim of helping small producers in selling their products, these societies are established. The producers who wish to obtain reasonable prices for their output are the members of this society. For securing a favourable market for the products they eliminate the middlemen and improve the competitive position of its members. It collects the output of individual members. Various marketing functions like transportation, packaging, warehousing, etc are performed by the cooperative societies to sell the product at the best possible price.
  • Housing Cooperative Society: To help people with limited income to construct houses at reasonable costs, these societies are established. Their aim is to solve the housing problems of the members. A member of this society aims to procure the residential house at lower cost. They construct the houses and give the option to members to pay in installments to purchase the house. They construct flats or provide plots to members on which the members themselves can construct the houses as per their choice.

Merit & Demerit of Co-operative Society

Merit of Co-operative Society

  • Voluntary organization
  • Ease of formation
  • Democracy
  • Equitable distribution of surplus
  • Limited liability
  • Stable existence
  • Each for all and all for each
  • Greater identity of interests
  • Government support
  • Elimination of middlemen
  • Low taxes
  • Rural credit
  • Role in agricultural progress
  • Own sources of finance
  • Encourages thrift
  • Fair price and good quality
  • Social benefit

Demerit of Co-operative Society

  • Over reliance on government funds
  • Imposed by government
  • Benefit to rural rich
  • Inadequate rural credit
  • Lack of managerial skills
  • Government regulation
  • Misuse of funds
  • Inefficiencies leading to losses
  • Lack of secrecy
  • Conflicts among members
  • Limited scope
  • Lack of accountability
  • Lack of motivation
  • Low public confidence

Nature of Dispute

There are various core issues which are arose inside co-operative society among members and/or managing committee. Some important issues are described below:-

  • Harassment by President and/or among the members of managing committee.
  • Fiduciary transaction of society fund by the Managing Committee
  • Fraudulent transaction or collection of fund behind issue share certificate.
  • Illegal collection of money from the members of society
  • FAR extension issue.
  • Maltreatment of power or authority
  • Sexual Harassment
  • Political and Religious Harassment

Our services

We are providing and handling matter related to co-operative society as are follows:-

  • Rendering litigation services before Registrar of Co-operative Society
  • Handling mediation services.
  • Enforcing and challenging enforcement of Awards
  • Appointment of arbitrator through High Court of Delhi
  • Representing clients before High Courts in arbitration/appeal/petitions.
  • Registration and compliances of C-operative Society and others Societies
  • Applying to stay proceedings against impugned order
  • Drafting settlement of issue/arbitration pleading and appeal
  • Registration of property
  • Handling matter related to adverse possession
  • Handling matter related to land acquisition and compensation
  • Matter pertaining to joint ownership, legal heirs dispute, partition
  • Matter related to Lal-Dora property.