[1][1]THE [2][2][PUNJAB] CO-OPERATIVE SOCIETIES AND CO-OPERATIVE BANKS (REPAYMENT OF
LOANS) ORDINANCE, 1966
(W.P. Ordinance XIV of 1966)
[27 April 1966]
Preamble.— WHEREAS it is expedient to provide for the
securing and repayment of such loans taken from the co-operative banks and
other co-operative societies as are not secured or are insufficiently secured;
AND
WHEREAS the Provincial Assembly of West Pakistan is not in session and the
Governor of West Pakistan is satisfied that immediate legislation is necessary;
Now, THEREFORE, in pursuance of the powers conferred
on him by clause (1) of Article 79 of the Constitution, the Governor of West
Pakistan is pleased to make and promulgate the following Ordinance, namely:-
1. Short title, extent and commencement.— (1) This Ordinance may be called the [3][3][Punjab] Co-operative Societies and
Co-operative Banks (Repayment of Loans) Ordinance, 1966.
(3) It shall come into force at once.
2. Definitions.— In this Ordinance, unless there is anything
repugnant in the subject or context:-
(a) “Act” means the Co-operative Societies Act,
1925 (Sind VII of 1925);
(b) “Assistant Registrar” means an Assistant
Registrar of Co-operative Societies appointed or deemed to have been appointed
under the Act to assist the Registrar;
[5][5][(bb) “benami
loan” means a loan the real beneficiary or recipient whereof is a person other
than the person in whose name the loan is advanced or granted;]
[6][6][(bbb) “borrower” includes in case of a benami loan, the real beneficiary or
recipient of the loan;]
(c) “co-operative
bank” means a co-operative society established for carrying on banking business
and having as its principal object the financing of other co-operative
societies registered or deemed to be registered under the Act;
(d) “co-operative society” means a society which
having as its object the promotion of economic interest of its members in
accordance with co-operative principles, is registered or deemed to be
registered under the Act;
(f) “loan”
means a loan (including [8][8][a benami loan
or] any transaction which in the opinion of the Registrar is in substance a
loan), whether of money or in kind, which is not secured or is in-sufficiently
secured, and taken from a co-operative society by any person, whether a member
of such society or not, or from a co-operative bank by any person [9][9][but not an Agricultural Co-operative Society, Dairy
Farming Co-operative Society or Poultry Farming Cooperative Society having in
each case a working capital not exceeding five hundred thousand rupees], and
includes,—
[10][10][(i) finance as defined in the Banking Tribunals
Ordinance, 1984 (Ordinance No. LVIII of 1984) and all cognate expressions shall
be construed accordingly].
[11][11][(ii)] any amount which is due from any such person
to a co-operative society or a co-operative bank, whether taken as a loan or
not;
[12][12][(iii)] any amount due from any such person to a
co-operative society or a co-operative bank under a decree passed by a Civil
Court or an award given by an arbitrator or a decision of the Registrar,
whether in exercise of his original or appellate jurisdiction; and
[13][13][(iv)] any loan due from any such person to a
co-operative society or a co-operative bank which is the subject matter of any
pending suit, arbitration proceedings, appeal or revision, whether under the
Act or before any Court.
Explanation— A loan is “insufficiently secured” if it is
not secured by mortgage, pledge, hypothecation or assignment of such property
of the borrower or of his surety or of both, as in the case of a loan not
exceeding [14][14][five hundred thousand] rupees, the Assistant
Registrar, and in the case a loan exceeding [15][15][five hundred thousand] rupees, the Registrar
may think adequate; and
(g) “Registrar” means a Registrar of Co-operative
Societies appointed or deemed to have been appointed under the Act, and
includes a person upon whom all the powers of a Registrar have been conferred
under the Act.
[16][16][3. Repayment of loans.— Notwithstanding anything contained in any
other law for the time being in force or in any agreement or other instrument,
award or decree of any Court, every loan outstanding, whether barred by
limitation or not, in whole or in part and every loan, any instalment whereof
is outstanding shall, unless repaid earlier, be repaid and secured in the
manner provided in section 7].
4. Supply of
information to the Registrar.— Every co-operative society and co-operative bank,
through its Manager or Secretary, shall—
(a) when a loan obtained from
it is not repaid by the date on which it is due for repayment, bring such fact,
together with full details of the case and the particulars of the borrower [17][17][(including in the case of a benami loan, the real beneficiary or recipient of the loan)] and
the surety, to the notice of the Assistant Registrar, when the amount of the
loan does not exceed [18][18][five hundred thousand] rupees, and to the notice
of the Registrar, when the amount of the loan exceeds [19][19][five hundred thousand] rupees; and
(b) when so directed by the
Registrar or the Assistant Registrar, as the case may be, within thirty days of
receipt of such direction, furnish to the Registrar, or the Assistant
Registrar, as the case may be, full information in respect of all cases of
loans falling under section 3 required to be repaid or secured under section 7.
5. Service of notice to the borrowers.— (1) On receipt of information under section
4 [20][20][or on his own information] in respect of any
loan, the Registrar or the Assistant Registrar, as the case may be, shall issue
or cause to be issued a notice to the borrower and his surety requiring them to
repay and secure the loan in accordance with the provisions of section 8.
(2) A notice under sub-section (1) may be
served—
(a) by giving or tendering it
to the person named in the notice; or
(b) by enclosing it
in a cover and sending such cover by registered post, acknowledgment
due, to the last known address of the person named in the notice; or
(c) by affixing such notice on a conspicuous part
of the last known residence of the person named in the notice; or
(d) by publication of the notice in a newspaper.
6. Determination of liability when loan is
not admitted.— Where any
borrower or his surety, to whom notice under section 5 is issued, does not
admit the loan or any liability arising therefrom, such borrower or surety, as
the case may be, shall, within thirty days of the receipt of the notice,
submit, either personally or by registered post (acknowledgment due), a written
statement to that effect to the Registrar or the Assistant Registrar, by whom
such notice was issued or caused to be issued, and such Registrar or Assistant
Registrar, as the case may be, thereupon shall cause notice to be issued to the
co-operative society, or the co-operative bank, as the case may be, and in the
case of a benami loan, to the alleged
beneficiary, and shall, after making such inquiry as he may consider necessary
and giving the parties a reasonable opportunity of being heard, decide the
matter.
[21][21][7. Securing and repayment of loans.— Within thirty days of the service of the
notice under section 5, in a case where the borrower does not deny the loan or
the liability arising therefrom, and in other cases, within thirty days of the
decision of the Registrar or the Assistant Registrar, as the case may be, under
section 6, the borrower and his surety shall—
(a) secure the loan or the liability arising
therefrom by mortgage, pledge, hypothecation or assignment of such property of
the borrower or his surety or of both as in the case of a loan not exceeding five
hundred thousand rupees, the Assistant Registrar, and in the case of a loan
exceeding five hundred thousand rupees, the Registrar, may think adequate; and
(b) repay the loan after thirty
days of the service of notice under section 5 when he does not deny the loan or
the liability arising therefrom, and in any other case, after thirty days of
the decision of the Registrar or the Assistant Registrar, as the case may be,
in eight months in four equal instalments, the first instalment being due on
the day immediately succeeding the one month period of notice or, as the case
may be, the decision of the Registrar or the Assistant Registrar specified
above.]
8. Recovery of loans.— [22][22][(1) If the amount of any loan or any part
thereof to be repaid in accordance with the provisions of section 7 is not paid
within the period or the periods specified in the said section, the same may,
without prejudice to the provisions of section 10, be recovered according to
the law and under the rules for the time being in force for the recovery of
arrears of land revenue.]
[23][23][(2)] Where
the borrower is a firm, partnership, company or other association of persons
(not being a company registered under the Companies Act, 1913, the liability of
the members whereof is limited), the loan or any part thereof due from such
borrower may be recovered from the assets of such firm, partnership, company or
other association of persons, as the case may be, or from the members or
partners thereof.
[24][24][8-A. Restrictions on registration of
documents.— (1)
Notwithstanding anything contained in any other law for the time being in force
no registering officer shall register any document relating to property, which
is required to be registered under the provisions of clause (a), (b),
(c) or (e) of section 17 of the Registration Act, 1908[25][25], or which is produced before him for
voluntary registration, nor shall any Revenue Officer on the basis of any such
document effect any mutation in the record of rights under the provisions of
any law for the time being in force, unless—
(a) the person whose right, title or interest in
the property is or will be transferred, assigned, limited or extinguished under
the terms of the document or on the basis of the mutation in the record of
rights, as the case may be, furnishes an affidavit to the registering officer
or the revenue officer, as the case may be, to the effect that he does not owe
any loan, whether due immediately or on a future date, to a co-operative
society or a co-operative bank; or
(b) where such person owes a
loan to a co-operative society or a co-operative bank, whether due immediately
or on a future date, it is certified by the Registrar where the loan owed by
such person exceeds rupees [26][26][five hundred thousand], and by the Assistant Registrar
where the loan owed by such person doe snot exceed rupees [27][27][five hundred thousand], that either satisfactory
arrangements have been made for the repayment of the loan or that the loan has
been secured in accordance with the provisions of section 7.
(2) Where an
application is made to the Registrar or an Assistant Registrar, as the case may
be, for issuing a certificate under the provisions of sub-section (1), he shall
not refuse to issue the certificate unless he has first given the applicant an
opportunity of being heard and adducing evidence to show that either
satisfactory arrangements have been made for the repayment of the loan owed by
the applicant or that the loan has been secured in accordance with the
provisions of section 7.
(3) An order made by the Registrar or an
Assistant Registrar under sub-section (2) refusing to issue a certificate,
shall be final and not open to question in any manner.]
[28][28][8-B. Restrictions on alienations.— (1)
Where any person owing a loan, whether due immediately or on a future
date, to a co-operative society or a co-operative bank has, on or after the
twenty-seventh day of April, 1966, alienated any immovable property, by sale,
exchange, gift, mortgage or will, otherwise than by or under an order or decree
of a Civil, Revenue or Criminal Court, which alienation is fraudulent with
intent to defeat the claim of a co-operative society or a co-operative bank,
such alienation shall not operate to transfer any right, title or interest in
the property of the debtor, unless—
(a) the loan due from the
debtor has been repaid; or
(b) it is certified by the
Registrar, where the loan exceeds rupees [29][29][five hundred thousand], and by the Assistant
Registrar, where the loan does not exceed rupees [30][30][five hundred thousand], that either satisfactory
arrangements have been made for the repayment of the loan or that the loan has
been secured in accordance with the provisions of section 7.
(2) An alienation of immovable property shall
be deemed to be fraudulent with intent to defeat the claim of a co-operative
society or a co-operative bank for the purposes of sub-section (1), if the
Registrar, after giving the person by whom the alienation has been made, and
the person or persons in whose favour the alienation has been made an
opportunity of being heard, issues a declaration to the effect that the
alienation is fraudulent with intent to defeat the claim of a co-operative
society or a co-operative bank.
(3) Any party aggrieved by a decision made by
the Registrar under sub-section (2) may prefer an appeal to Government against
such decision, and the order made by Government, on such appeal [31][31][passed
after giving an opportunity of being heard to the appellant] shall be final and
shall not be open to question in any manner.]
9. Power of
Registrar when making inquiry.— The Registrar or the Assistant Registrar, as the case
may be, shall, for the purpose of making any inquiry under this Ordinance, have
the same powers as are vested in a Civil Court under the Code of Civil Procedure,
1908 (Act V of 1908), when trying a suit, in respect of the following matters,
namely:-
(a) summoning and enforcing the attendance of any
person and examining him on oath;
(b) requiring the discovery or production of any
document;
(c) requisitioning any public record from any Court
or office;
(d) issuing commissions for the examination of
witnesses;
(e) appointing guardians or next friends of persons
who are minors or of unsound mind;
(f) adding legal representatives of deceased
borrowers or sureties;
(g) substituting the names of rightful parties,
including the beneficiaries of benami
loans;
(h) consolidation of cases;
(i) any other matter which may be prescribed by
rules made under section 12; and
(j) enforcing any order made by him under the
provisions of this Ordinance or the rules framed thereunder.
[32][32][9-A. Revision.— (1) When any decision or award is made by
the Registrar, the Government may, at any time, suo moto, call for and examine the record of any inquiry or
proceeding relating thereto for the purpose of satisfying itself as to the
legality or propriety of such decision or award.
(2) When any decision or award is made by a
Deputy Registrar exercising the powers of the Registrar or by an Assistant
Registrar, the Registrar may call for and examine the record of any inquiry or
proceeding relating thereto for the purpose of satisfying himself as to the
legality or propriety of such decision or award.
(3) If, after examining the aforesaid record,
the Government or the Registrar is of the opinion that any decision or award
should be modified, annulled or reversed, the Government or the Registrar, as
the case may be, may, after giving the parties an opportunity of being heard,
pass such order thereon as may be deemed just and proper, and the order so
passed shall be final and conclusive.
(4) Any order passed by the Registrar in
exercise of his revisional powers shall not be further revisable by
Government.]
10. Penalty.— Whoever contravenes any
of the provisions of this Ordinance or the rules made thereunder shall be
punishable with imprisonment for a term which may extend to seven years, or
with fine, which, in the case of default in the repayment of a loan, shall not
be less than one-fourth of the amount of the loan outstanding against him, or
with both.
11. Procedure.— [33][33][(1)] No Court shall take cognizance of any
offence under this Ordinance except on a complaint in writing made by the
Registrar or an Assistant Registrar, or by a person duly authorised by the
Registrar or Assistant Registrar.
[34][34][(2) Notwithstanding
anything to the contrary contained in the Code of Criminal Procedure, 1898, the
provisions of Chapter XX of the said Code shall apply to the trial of cases
under this Ordinance.]
12. Power to make
rules.—
Government may, by notification in the official Gazette, make rules, to carry
out the purposes of this Ordinance.
13. Bar of Jurisdiction.— (1) No Court or other authority shall have
jurisdiction—
(a) to entertain or adjudicate upon any matter
which [35][35][Government, the Registrar] or the Assistant
Registrar is empowered by or under this Ordinance or the rules framed
thereunder to dispose of or determine; or
(b) to question the legality or
validity of anything done under this Ordinance or the rules framed thereunder
by [36][36][Government, the Registrar] or Assistant
Registrar.
(2) No Court or other authority shall be
competent to grant an injunction or other order in relation to any proceedings
before the Registrar or the Assistant Registrar, or anything done or to be done
by or at the instance of the Registrar or the Assistant Registrar under this
Ordinance or the rules framed thereunder.
[1][1]This Ordinance was
promulgated by the Governor of West Pakistan on 24th April, 1966; approved by
the Provincial Assembly of West Pakistan on 10th June, 1966, under clause (3)
of Article 79 of the Constitution of the Islamic Republic of Pakistan (1962);
and, published in the West Pakistan Gazette (Extraordinary), dated 10th June,
1966, pages 1677-A to 1677-J.
[2][2]Substituted
by the Punjab Laws (Adaptation) Order, 1974 (Pb. A.O. 1 of 1974), for “West
Pakistan”.
[5][5]Added by the West Pakistan
Co-operative Societies and Co-operative Banks (Repayment of Loans) (Amendment)
Ordinance, 1966 (XXV of 1966).
[7][7]Substituted by the Punjab
Laws (Adaptation) Order, 1974 (Pb. A.O. 1 of 1974), for “Government of West
Pakistan”.
[8][8]Inserted by the West Pakistan
Co-operative Societies and Co-operative Banks (Repayment of Loans) (Amendment)
Ordinance, 1966 (XXV of 1966).
[9][9]Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 (II of 1992).
[10][10]Original sub-clauses (i),
(ii) and (iii) re-numbered as sub-clauses (ii), (iii) and (iv) and sub-clause
(i) added by the Punjab Co-operative Societies and Co-operative Banks
(Repayment of Loans) (Amendment) Ordinance, 1984 (XXXIX of 1984).
[14][14]Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment) Act,
1992 (II of 1992).
[16][16]Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 (II of 1992).
[17][17]Inserted by the West Pakistan
Co-operative Societies and Co-operative Banks (Repayment of Loans) (Amendment)
Ordinance, 1966 (XXV of 1966).
[18][18]Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 (II of 1992).
[21][21]Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 (II of 1992).
[22][22]Section 8 re-numbered as
sub-section(2) and sub-section (1), added by the West Pakistan Co-operative
Societies and Co-operative Banks (Repayment of Loans) (Amendment) Ordinance, 1966
(XXV of 1966).
[26][26]Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 (II of 1992).
[28][28]Added by the West Pakistan
Co-operative Societies and Co-operative Banks (Repayment of Loans) (Amendment)
Ordinance, 1966 (XXV of 1966).
[29][29]Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 (II of 1992).
[31][31]Added by the Punjab Co-operative
Societies and Co-operative Banks (Repayment of Loans) (Amendment) Ordinance,
1985 (IX of 1985).
[32][32]Added by the West Pakistan
Co-operative Societies and Co-operative Banks (Repayment of Loans) (Punjab
Amendment) Ordinance, 1972 (III of 1972), and shall be deemed always to have
been so added.
[33][33]Section 11, re-numbered as
“11(1)” by the West Pakistan Co-operative Societies and Co-operative Banks
(Repayment of Loans) (Punjab Amendment) Ordinance, 1972 (III of 1972).
[35][35]Substituted, for “the
Registrar” by the West Pakistan Co-operative Societies and Co-operative Banks
(Repayment of Loans) (Amendment) Ordinance, 1966 (XXV of 1966).
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