103. Co-operative societies functioning immediately before reorganisation of States.—(1) Where,
by virtue of the provisions of Part II of the State Reorganisation Act, 1956 (37 of 1956) or any other
enactment relating to reorganisation of States, any co-operative society which immediately before the
day on which the reorganisation takes place, had its objects confined to one State becomes, as from that
day, a multi-State co-operative society, it shall be deemed to be a multi-State co-operative society
registered under the corresponding provisions of this Act and the bye-laws of such society shall, in so far
as they are not inconsistent with the provisions of this Act, continue to be in force until altered or
rescinded.
1
[Provided that where all the successor States take necessary steps to divide or reorganise such
deemed multi-State co-operative society into State co-operative societies in order to confine their objects,
services and the members to respective States within a period of three years, such deemed multi-State cooperative society shall cease to be a multi-State co-operative society:
Provided further that the deemed multi-State co-operative society other than those mentioned in the
first proviso shall submit an application for registration and obtain the certificate of registration from the
Central Registrar.]
(2) If it appears to the Central Registrar or any officer authorised in this behalf by the Central
Government (hereafter in this section referred to as the authorised officer) that it is necessary or expedient
to reconstitute or reorganise any society referred to in sub-section (1), the Central Registrar or the
authorised officer, as the case may be, may, with the previous approval of the Central Government, place
1. Ins. by Act 11 of 2023, s. 36 (w.e.f. 3-8-2023).
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before a meeting of the general body of that society, held in such manner as may be prescribed, a scheme
for the reconstitution or reorganisation, including proposals regarding—
(a) the formation of new multi-State co-operative societies and the transfer thereto in whole or in
part, of the assets and liabilities of that society; or
(b) the transfer, in whole or in part, of the assets and liabilities of that society to any other
multi-State co-operative society in existence immediately before the date of that meeting of the
general body (hereafter in this section referred to as the existing multi-State co-operative society).
(3) If the scheme is sanctioned by a resolution passed by a majority of the members present at the said
meeting, either without modifications or with modifications to which the Central Registrar or the
authorised officer agrees, he shall certify the scheme and upon such certification, the scheme shall,
notwithstanding anything to the contrary contained in any law, regulation or bye-laws for the time being
in force, be binding on all the societies affected by the scheme, as well as the shareholders and creditors
of all such societies.
(4) If the scheme is not sanctioned under sub-section (3), the Central Registrar or the authorised
officer may refer the scheme to such judge of the appropriate High Court, as may be nominated in this
behalf by the Chief Justice thereof, and the decision of that judge in regard to the scheme shall be final
and shall be binding on all the societies affected by the scheme as well as the shareholders and creditors
of all such societies.
Explanation.—For the purposes of this sub-section, “appropriate High Court” means the High Court
within the local limits of whose jurisdiction the principal place of business of the multi-State co-operative
society is situated.
(5) Notwithstanding anything contained in this section, where a scheme under sub-section (2)
includes any proposal regarding the transfer of the assets and liabilities of any multi-State co-operative
society referred to in clause (b) thereof, the scheme shall not be binding on such multi-State co-operative
society or the shareholders and creditors thereof, unless the proposal regarding such transfer is accepted
by that multi-State co-operative society by a resolution passed by a majority of the members present at a
meeting of its general body.