Registration of a Co-operative Society
Registration of a Co-operative Society
What is a Co-operative Society?
A Co-operative Society is a voluntary association of individuals who come together to promote their common economic interests through a jointly owned and democratically controlled enterprise. It operates on the principles of mutual help, democratic management, and equitable distribution of benefits.
Governing Law
In India, Co-operative Societies are governed by state-specific Co-operative Societies Acts. For example:
Maharashtra Co-operative Societies Act, 1960
Tamil Nadu Co-operative Societies Act, 1983
Kerala Co-operative Societies Act, 1969
These Acts regulate the formation, registration, management, and dissolution of Co-operative Societies.
Legal Provisions for Registration
The registration of a Co-operative Society is a statutory requirement under the relevant Co-operative Societies Act in the respective state. Generally, the process involves the following:
1. Application for Registration
At least 10 or more persons (varies by state) associated by a common bond of occupation, locality, or profession apply to the Registrar of Co-operative Societies.
The application is usually made on a prescribed form, providing:
Name and address of the society
Details of members
Draft Bye-laws
Purpose and objectives of the society
2. Draft Bye-laws
The society must submit draft bye-laws containing rules for:
Membership
Management of affairs
Distribution of profits
Conduct of meetings
Election of the Board of Directors
3. Examination by Registrar
The Registrar examines:
The application and documents
Whether the objectives are lawful and not contrary to public policy
Whether the society meets the minimum membership criteria
4. Grant or Refusal of Registration
If satisfied, the Registrar grants the certificate of registration, and the society becomes a legal entity.
If not satisfied, the Registrar may refuse registration, giving reasons.
5. Effect of Registration
Registration confers a separate legal entity status.
The society can sue or be sued in its own name.
It acquires powers to own property, enter contracts, and function as a corporate body.
Important Legal Aspects
Registration is compulsory for the society to be recognized as a co-operative society under law.
Non-registration does not bar the formation of a society but deprives it of statutory benefits and protections.
The Registrar’s decision can be challenged before appropriate courts or tribunals.
Relevant Case Law:
1. S.R. Chaudhary v. State of Rajasthan, AIR 1963 SC 1614
The Supreme Court observed that the registration of a co-operative society is primarily a statutory requirement to enable it to function as a legal entity.
The registration process is to ensure that societies operate within the framework of law and public interest.
2. State of Kerala v. V. Abraham, AIR 1970 SC 2226
The Court held that the Registrar has discretionary power to refuse registration if the application does not comply with statutory requirements or if the society’s objectives are unlawful.
However, such discretion must be exercised judiciously and fairly.
3. Nair Service Society Ltd. v. K.C. Alexander, AIR 1968 SC 1161
Though primarily dealing with tenancy laws, the Supreme Court highlighted the importance of statutory registration in conferring legal personality on cooperative or collective bodies.
Reinforced that registration under the Co-operative Societies Act is vital for the society’s legal standing.
4. R. Rajalakshmi v. Registrar of Co-operative Societies, AIR 1969 Mad 207
The court emphasized that bye-laws submitted for registration must be reasonable and not arbitrary.
The Registrar can require amendments before granting registration.
Summary Table
| Step | Description |
|---|---|
| 1. Application | Minimum number of persons submit application with details and draft bye-laws |
| 2. Scrutiny | Registrar examines objectives, membership, compliance |
| 3. Registration | Certificate granted if requirements met; society becomes legal entity |
| 4. Powers | Society can own property, sue, enter contracts |
| 5. Challenge | Registrar’s refusal can be challenged in court |
Importance of Registration
Legal recognition and protection
Ability to operate bank accounts, acquire assets, and enter into contracts
Members’ liability is generally limited to their share capital
Eligible for government subsidies and benefits
Enables democratic governance and accountability
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