(Pb. Act I of 1993)
[27 February 1993]
An
Act to prohibit the carrying on of business as financial institutions by
Cooperative Societies and to provide for matters ancillary thereto
Preamble.— Whereas it is expedient to prohibit the
carrying on of business as financial institutions by Cooperative Societies and
to provide for matters ancillary thereto;
It
is hereby enacted as follows:-
1. Short
title, extent and commencement.— (1) This Act may be called the Punjab Undesirable
Cooperative Societies (Dissolution) Act, 1993.
(2) It shall extend to the whole of the
Punjab.
(3) It shall come into force at once.
2. Definitions.— (1) In this Act, unless there is anything
repugnant in the subject or context—
(a) “Commission”
means the Commission appointed by the Federal Government under section 3 of the
Pakistan Commissions of Inquiries Act, 1956, by Notification No.F-2(1)/91-Pub,
dated 6th November, 1991;
(b) “Cooperatives Board” means a Board constituted
under Section 5;
[2][2][(c) “Cooperatives
Judge” means a Judge of the Lahore High Court, Lahore, nominated as
Cooperatives Judge by the Chief Justice of the said Court;]
(d) “Government”
means the Government of the Punjab;
(e) “Liquidator”
means a Cooperatives Board;
(f) “Prescribed”
means prescribed by Rules;
(g) “Registrar”
means the Registrar of Cooperative Societies appointed under the Cooperative
Societies Act, 1925;
(h) “Schedule”
means the schedule to this Act; and
(i) “Undesirable
Cooperative Society” means a Cooperative Society registered under the
Cooperative Societies Act, 1925 by whatever name called—
(i) to which Section 4 applies; or
(ii) which is specified in the schedule.
(2) Words and expressions used but not
defined shall have the same meanings as have been assigned to them in the
Cooperative Societies Act, 1925.
3. Act to override other laws, etc.— The provisions of this Act shall have effect
notwithstanding anything contained in any other law for the time being in force,
or in any judgement or decision of any court or in any agreement, contract or
instrument.
4. Registration of certain Cooperative
Societies prohibited.— (1)
No Cooperative Society formed with the object of accepting deposits from its
members or the public for the purposes of lending, investment or allowing
withdrawals in any manner shall, after the commencement of this Act be
registered under the Cooperative Societies Act, 1925.
(2) Any registration made in contravention of
sub-section (1) shall be void.
5. Cooperatives Boards.— (1) The Government may establish as many
Cooperatives Boards as it may deem necessary and assign names to them.
(2) A Cooperatives Board shall be a body
corporate, having perpetual secession and a common seal, with powers, subject
to the provisions of this Act, to enter into contracts and to acquire, hold and
dispose of property, both movable and immovable, and shall, by the said name,
sue and be sued.
(3) A Cooperatives Board shall consist of a
Chairman and at least two members.
(4) The chairman and other members whose
qualifications and terms and conditions of service shall be such as may be
prescribed, shall be appointed by the Government.
6. Meetings of the Board.— The meetings of the Board shall be held in
accordance with such procedure as may be prescribed:
Provided
that until the rules are framed, such meetings shall be convened and regulated
by the Chairman.
7. Powers of a Cooperatives Board.— A Cooperatives Board when appointed as a
Liquidator under this Act shall have all the powers exercisable by a Liquidator
under the Cooperative Societies Act, 1925 and in addition to that shall have
the power to—
(a) verify
the claims already filed with the Commission; entertain and dispose of
objections against the acceptance or rejection thereof and also entertain
claims, in case, reasonable cause is shown for not filing the same earlier;
(b) unearth and proceed against any concealed or
hidden property of an Undesirable Cooperative Society, whether in the name of
any Director, Officer, agent or any of the members of their families or in the
name of any other person, body, company or firm acquired or purchased by using
or diverting the funds of such a society;
(c) determine
the assets and liabilities of an Undesirable Cooperative Society and those of
its Promoters, Directors, Officers and agents and of the past members of its
committees of management;
(d) fix
and pay to any person on whose information to a Cooperatives Board any hidden
assets of an Undesirable Cooperative Society are retrieved, a compensation not
exceeding fifteen percent of the value of such assets;
(e) cancel
all agreements entered into by an Undesirable Cooperative Society or its
previous managements or Directors, Officers or agents, which in the opinion of
the Cooperatives Board are malafide and against the interest of such a Society
or the members thereof;
(f) decide
and settle objections and claims of third parties relating to assets and
properties of an Undesirable Cooperative Society; provided that the plea of
limitation shall not be a defence against the recovery of any assets and
properties of an Undesirable Cooperative Society;
(g) recall and recover loans advanced by an
Undesirable Cooperative Society, for which purpose the provisions of all
existing laws including the Cooperative Societies and Cooperative Banks
(Repayment of Loans) Ordinance, 1966 with necessary adaptations shall apply to
the Cooperatives Boards, but nothing contained in this clause shall be a bar
for a Cooperatives Board to make reference in respect of any loan, in terms of
Section 4 of the said Ordinance to the Assistant Registrar or Registrar as the
case may be, who shall thereafter proceed against the borrowers under the
provisions of the said Ordinance;
(h) determine
the validity of adjustment of deposits, loans, deposit certificates, securities
and other such instruments;
(i) call
for any information, document, record or evidence from any person, authority,
agency or department;
(j) initiate
inquiries through police and other agencies for unearthing hidden or concealed
properties and assets of an undesirable Cooperative Society and its Directors,
Officers, agents, benamidars and the members of their families;
[3][3][(k) initiate
criminal prosecution of Directors, Officers and Agents of an undesirable
Cooperative Society and other persons connected with the properties and affairs
of such a society;]
(l) avail
itself of financial assistance from Bait-ul-Maal and other agencies for payment
to depositors who are deserving destitutes, widows, orphans or infirm persons;
(m) develop
the properties of an undesirable Cooperative Society and for that purpose to
formulate and execute development schemes with or without the collaboration of
the official development agencies and dispose of assets and properties;
(n) assess
the market value of properties and assets of an undesirable Cooperative Society
for their disposal;
(o) take loans, financial assistance and do all
acts, deeds and things necessary for the implementation of the requirements of
this Act and directions, orders and decisions of the Cooperatives Judge;
(p) satisfy
wholly or partly the verified claims with the approval of the Cooperatives
Judge at any time pending winding up proceedings and final determination of
assets and liabilities of an undesirable Cooperative Society;
(q) incur
all reasonable expenses for the management of a society to be dealt with by it
and for other purposes under this Act;
(r) subject to the rules appoint such officers,
advisers and other employees as it considers necessary for the efficient
performance of its functions, on such terms and conditions as it may deem fit;
(s) delegate to the Chairman, or any member or
committee or officer or adviser, any of its powers under this Act or the rules;
(t) apply
to the Cooperatives Judge for guidance, in relation to any particular matter
arising in winding up proceedings;
(u) maintain
accounts in such manner as may be prescribed; and
(v) refer a case, for the recovery of a loan
advanced by an undesirable Cooperative Society or for the execution of any
decree, order or award passed in favour of such a Society, at any stage of its
proceedings to the Cooperatives Judge who may dispose it of or otherwise deal
with it in accordance with such procedure as may be prescribed and until the
procedure is prescribed as may be determined by the Cooperatives Judge.
8. Chairman, etc., deemed to be public
servants.— The Chairman,
every member, adviser, officer and employee of the Cooperatives Board, shall be
deemed to be a public servant within the meaning of section 21 of the Pakistan
Penal Code.
9. Indemnity.— No suit, prosecution or other legal
proceedings shall lie against the Registrar, Chairman, any member, officer,
adviser or employee of the Cooperatives Board in respect of anything done in
good faith and with due care and attention under this Act.
10. Validity of Acts and Proceedings.— No act done or proceedings taken under this
Act shall be questioned on the ground of the existence of any vacancy or any
defect in the constitution of a Cooperatives Board.
11. Application to
the Cooperatives Judge.— A person if aggrieved by an act or decision of the
Cooperatives Board, may [5][5][including the Chairman or his delegate may within a
period of sixty days from the date of the act or decision] apply to the
Cooperatives Judge, who may confirm, reverse, or modify the act or decision
complained against, and make such order as he may think just in the
circumstances of the case.
12. Existing
undesirable Cooperative Societies to cease to function.— An undesirable
Cooperative Society specified in the schedule on the commencement of this Act
and in case of subsequent inclusion of an undesirable Cooperative Society in
the schedule, on the date of such inclusion, shall cease to function and all
its properties, assets, securities, deposits and bank accounts shall vest in
the Registrar and shall remain so vested till such time they stand vested in the
Liquidator.
13. Winding up of
an undesirable Cooperative Society.— (1) As soon as may be, after the commencement of
this Act, the Registrar shall make a petition to the Cooperatives Judge for
winding up of an undesirable Cooperative Society who shall thereupon make an
order for its winding up and appointment of a Cooperatives Board as Liquidator.
(2) Nothing contained herein shall bar the
jurisdiction of the Cooperatives Judge to pass an interim order appointing a
Cooperatives Board as Liquidator, without prior notice to such a society.
14. Claims against an undesirable Cooperative
Society.— Any person having
any claim against an undesirable Cooperative Society or any right over any
property or assets of such society or against its Directors, officers or agents,
whether on the basis of any agreement, sale, transfer or otherwise may, within
thirty days of the appointment of a Liquidator or within a reasonable time
allowed by the Cooperatives Judge, submit his claim before the Liquidator.
15. Dissolution of an undesirable Cooperative
Society.— When an
undesirable Cooperative Society is wound up, it shall be deemed to have been
dissolved and its registration cancelled.
16. Abatement of all suits, proceedings, etc.— (1) All suits or proceedings pending before
any court or authority against an undesirable Cooperative Society in respect of
its assets and liabilities shall stand abated on the appointment of the
Liquidator:
Provided that fresh proceedings against such a Society
may be initiated before the Cooperatives Judge within sixty days of such
abatement.
(2) All
decrees, judgements and orders passed by any court, except the Supreme Court,
against an undesirable Cooperative Society or against properties and assets
thereof on or after the first day of July 1990, shall be unexecutable and of no
legal effect, unless such judgement, decree or order is confirmed by the
Cooperatives Judge after hearing the concerned parties.
(3) Any person who relies on such decrees,
judgements or orders, may within sixty days of the appointment of the
Liquidator, apply to the Cooperatives Judge for its confirmation.
17. Exclusive Jurisdiction of Cooperatives
Judge.— Save as otherwise
provided in this Act, no court shall have jurisdiction in respect of any matter
which a Cooperatives Board and the Cooperatives Judge are empowered by or under
this Act to determine and no injunction or process or order shall be granted by
any court or authority in respect of any action taken or to be taken in
exercise of any power conferred by or under this Act.
18. Confiscation
of assets, etc.— (1) Where any Director, officer, or agent of an undesirable Cooperative
Society or any other person, body, company or firm found to be in possession of
any property or assets on behalf of such Director, officer, agent or such
society for the pecuniary resources of which such Director, officer, agent,
person, body, company or firm cannot satisfactorily and reasonably account for
or holds property disproportionate to his or its known sources of income, it
shall be presumed, unless the contrary is proved, that such Director, officer
or agent, person, body, company or firm has acquired such property and assets
by misappropriating the funds of such Society.
(2) The
Cooperatives Judge may, after holding an inquiry, order confiscation of all
such properties and assets against which a presumption is raised under
sub-section (1) which shall then vest in the Cooperatives Board as assets of
such a Society for distribution among its depositors.
19. Action of Federal Government not to be
affected, etc.— (1) Nothing
in this Act shall affect any action taken by the Federal Government against an
undesirable Cooperative Society or any of its Directors, officers, agents or
any other person in pursuance of any law for the time being in force, or any
other measure adopted for providing relief to the depositors.
(2) Action under this Act against an
undesirable Cooperative Society or against its Directors, officers, agents or
any other person, shall be in addition to and not in derogation of any action
taken under any law for the time being in force.
20. Cognizance of offences, etc.— (1) All offences under this Act shall be
cognizable and non-bailable.
[6][6][(2) No
court shall take cognizance of any offence under this Act except on a complaint
made by the Cooperatives Board].
21. Penalties.— Any person who—
(a) contravenes or violates any of the provisions
of this Act or the rules made thereunder or directions or orders of the
Cooperatives Judge or the Cooperatives Board passed or given in pursuance of
the provisions of this Act or the rules; or
(b) fails to inform the Cooperatives Judge or the
Cooperatives Board within one month of the commencement of this Act, that he
holds, possesses or keeps in his control any property or assets of any undesirable
Cooperative Society shall be punishable with rigorous imprisonment which may
extend to seven years, or with fine up to twenty thousand rupees or with both.
22. Appeal.— An appeal against the final order of the Cooperatives Judge shall lie
before the Supreme Court within thirty days from the date of the order.
23. Power to make
rules.—
The Government may, by notification in the official Gazette, make rules for
carrying out the purposes of this Act.
24. Power to make regulations.— Subject to the rules, the Cooperatives Board
may make regulations for carrying out the purpose of this Act.
25. Power to remove difficulties.— If any difficulty arises in giving effect to
any of the provisions of this Act, the Government may make such order as may
appear to it to be necessary for the purpose of removing the difficulty.
26. Power to amend the schedule.— The Government may, by notification, amend
the schedule so as to add any entry thereto or modify or omit any entry
therein.
27. Savings.— All orders made, proceedings
taken and acts done by any authority, or person which were made, taken or done
or purported to have been made, taken or done under the Punjab Undesirable
Cooperative Societies (Dissolution) Ordinance, 1992 (XX of 1992), the Punjab
Undesirable Cooperative Societies (Dissolution) Ordinance, 1992 (XXXI of 1992),
the Punjab Undesirable Cooperative Societies (Dissolution) Ordinance, 1992
(XXXVII of 1992) and the Punjab Undesirable Cooperative Societies (Dissolution)
Ordinance, 1993 (II of 1993) shall be deemed to have been made, taken or done
under this Act.
28. Repeal.— The Punjab Undesirable Cooperative Societies (Dissolution) Ordinance,
1993 (II of 1993) is hereby repealed.
SCHEDULE
[See
section 2(i)]
1. Adam
Industrial Amusement Cooperative Society Ltd.
2. Agro
Commercial Investment Cooperative Ltd.
3. Agricultural
& Allied Services Cooperative Development Society Ltd.
4. Agricultural
Cooperative Development & Investment Ltd.
5. Alliance
Industrial & Commercial Cooperative Society Ltd.
6. Allied
Commercial Cooperative Corporation Ltd.
7. Allied
Industrial Cooperative Development Society Ltd.
8. Al-Sadat
Cooperative Thrift & Credit Society Ltd.
9. Asia
Cooperative Credit Corporation Ltd.
10. Asian Development Cooperative Society Ltd.
11. Barex Commercial Cooperative Society Ltd.
12. Capital Cooperatives Ltd.
13. Central Punjab Cooperative Credit Society
Ltd.
14. Citi Industrial Cooperative Development
Society Ltd.
15. The Commerce Urban Cooperative Credit
Society Ltd.
16. Commercial Cooperative Development
Corporation Ltd.
17. Commerce Development Cooperative Society
Ltd.
18. The Coop-5 Cooperative Investment Ltd.
19. Crescent Cooperative Development Society
Ltd.
20. Crescent Industrial Development Cooperative
Corporation Ltd.
21. Eurasia Industrial Cooperative Ltd.
22. Fair-deals Cooperative Society Ltd.
23. Federal Cooperative Commercial Society Ltd.
24. Federal Industrial Cooperative Society Ltd.
25. Frugal Cooperative Development Society Ltd.
26. Global Cooperative Society Ltd.
27. The Gujjar Khan Cooperative Urban Finance
Corporation Ltd.
28. The Gujrat Khawajgan Cooperative Finance
Corporation Ltd.
29. Gulf Industrial Cooperative Society Ltd.
30. Habib Industrial Cooperative Corporation
Ltd.
31. Habib Industrial Cooperative Credit Corporation
Ltd.
32. Habib National Cooperative Society Ltd.
33. Image Cooperative Society Ltd.
34. Imperial Cooperative Society Ltd.
35. Indus Cooperative Society Ltd.
36. International Industrial Cooperative Society
Ltd.
37. The Ittifaq Cooperative Commerce Corporation
Ltd.
38. Khyber Industrial Agricultural Cooperative
Society Ltd.
39. The Kissan Cooperative Commercial
Corporation Ltd.
40. Management Improvement Cooperative
Corporation of Pakistan Ltd.
41. Mercantile Cooperative Finance Corporation
Ltd.
42. The First Islamic Cooperative Credit Ltd.
43. The Millat Cooperatives Ltd.
44. The Milli Cooperative Multipurpose Society
Ltd.
45. Millat Industrial Cooperative Society Ltd.
46. The Mughal Cooperative Finance Corporation
Ltd.
47. The Muslim Industrial Cooperative
Corporation Ltd.
48. Mutual Cooperative Society Ltd.
49. National Agro and Credit Cooperative Society
Ltd.
50. National Cooperative Credit Corporation Ltd.
51. National Cooperative Investment Ltd.
52. National Development Cooperative Society Ltd.
53. National Housing Agricultural &
Industrial Cooperative Society Ltd.
54. National Industrial Cooperative Credit
Corporation Ltd.
55. National Industrial Cooperative Finance
Corporation Ltd.
56. National Investment Cooperatives Ltd.
57. Oman Cooperative Society Ltd.
58. Orient Industrial Cooperative Society Ltd.
59. The Pak Punjab Cooperative Credit
Corporation Ltd.
60. Pak Crescent Cooperative Society Ltd.
61. Pakistan Development Cooperative Corporation
Ltd.
62. Pak Industries Cooperative Society Ltd.
63. Pak Industrial Cooperative Development
Society Ltd.
64. The Pak Industrial Cooperative Ltd.
65. Pakistan National Industrial Cooperative
Credit Corporation Ltd.
66. Pasban Cooperative Credit Corporation Ltd.
67. Pasban Cooperative Finance Corporation Ltd.
68. Popular Cooperative Urban Thrift &
Credit Society Ltd.
69. The Premier Alliance Cooperative Ltd.
70. Premier Industrial Development Cooperative
Corporation Ltd.
71. Prime Industrial Cooperative Development
Society Ltd.
72. Progressive Cooperative Society Ltd.
73. Progressive Industrial Development
Cooperative Society Ltd.
74. Public Industrial and Commercial Cooperative
Society Ltd.
75. Punjab Agriculture Cooperative Development
Corporation Ltd.
76. Punjab Cooperative Agricultural Corporation
Ltd.
77. Punjab Development Cooperative Corporation
Ltd.
78. The
Punjab Industrial Development and Construction Cooperative Corporation Ltd.
79. Punjab
Industrial Cooperatives Ltd.
80. The
Quaid Cooperative Investment Ltd.
81. Qudaratabad
Multipurpose Cooperative Society Ltd.
82. Services
Cooperative Credit Corporation Ltd.
83. Shifa
Cooperative Investment Society Ltd.
84. Standard
Cooperative Industrial Development Corporation Ltd.
85. Standard
Cooperative Society Ltd.
86. Standard
Industrial Cooperative Society Ltd.
87. State
Cooperative Credit Corporation Ltd.
88. The
State Industrial Cooperative Credit Corporation Ltd.
89. Sun-shine
Cooperative Society Ltd.
90. Super
Investment Cooperative Society Ltd.
91. Traders
Cooperative Corporation Ltd.
92. Union
Cooperative Investment Ltd.
93. Union
Industrial Cooperative Corporation Ltd.
94. Union
Industrial Cooperative Society Ltd.
95. United
Agricultural Cooperative Corporation Ltd.
96. United
Cooperative Credit Corporation Ltd.
97. United
Cooperative Development Society Ltd.
98. United
Development Cooperative Society Ltd.
99. The
Urban Cooperative Thrift and Credit Society Ltd.
100. Wahid Multipurpose Cooperative Society Ltd.
101. Wattan Commercial Cooperative Society Ltd.
102. Zamindara Cooperative Credit Corporation Ltd.
[1][1]This Act was passed by the
Punjab Assembly on 15th February, 1993; assented to by the Governor of the
Punjab on 23rd February, 1993; and, was published in the Punjab Gazette
(Extraordinary), dated 27th February, 1993, Pages 1042-A to 1042-J.
[2][2]Substituted by the Punjab
Undesirable Cooperative Societies (Dissolution) (Amendment) Act, 1997 (XIII of
1997).
[3][3]Substituted by the Punjab
Undesirable Cooperative Societies (Dissolution) (Amendment) Act, 1994 (XI of
1994).
[4][4]Added by
the Punjab Undesirable Cooperative Societies (Dissolution) (Amendment) Act,
1996 (II of 1996).
[5][5]Inserted by the Punjab
Undesirable Cooperative Societies (Dissolution) (Amendment) Ordinance, 1999
(LIII of 1999), which will remain in force under the Provisional Constitution
(Amendment) Order 1999 (9 of 1999), Article 4, notwithstanding the maximum
limit of three months prescribed under Article 128 of the Constitution of the
Islamic Republic of Pakistan.
[6][6]Substituted by the Punjab
Undesirable Cooperative Societies (Dissolution) (Amendment) Act, 1994 (XI of
1994).
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