[1]THE [2] [PUNJAB] CO-OPERATIVE SOCIETIES AND
CO-OPERATIVE BANKS (REPAYMENT
OF LOANS) ORDINANCE, 1966
( W.P. Ordinance XIV of 1966)
[27th
April, 1966]
An
Ordinance
to provide for the
repayment of unsecured loans or loans insufficiently secured.
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][Punjab]
Co-operative Societies and Co-operative Banks (Repayment of Loans) Ordinance,
1966.
(2)
It extends to the whole of the province of 4[the
Punjab], except the Tribal Areas.
(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;
[4][(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;]
[5][(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
cooperative principles, is registered or deemed to be registered under the Act;
(f)
“loan” means a loan (including [7][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
cooperative society by any person, whether a member of such society or not, or
from a co-operative bank by any person [8][but
not an Agricultural Cooperative 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,—
[9][(i) finance as defined in the Banking
Tribunals Ordinance, 1984 (Ordinance No. LVIII of 1984) and all cognate
expressions shall be construed accordingly].
[10][(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;
[11][(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
[12][(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 [13][five
hundred thousand] rupees, the Assistant Registrar, and in the case a loan
exceeding [14][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.
[15][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 cooperative 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 [16][(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 [17][five
hundred thousand] rupees, and to the notice of the Registrar, when the amount
of the loan exceeds [18][
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 [19][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.
[20][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.— [21][(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.]
[22][(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.
[23][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, 190825, 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 [24][five
hundred thousand], and by the Assistant Registrar where the loan owed by such
person does not exceed rupees [25] [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 subsection (2) refusing to issue a certificate, shall be final
and not open to question in any manner.]
[26][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 [27][five
hundred thousand], and by the Assistant Registrar, where the loan does not
exceed rupees [28][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 cooperative
bank.
(3)
Any party aggrieved by a decision made by the Registrar
under subsection (2) may prefer an appeal to Government against such decision,
and the order made by Government, on such appeal [29][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.
[30][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.—
[31][(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.
[32][(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 [33][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 [34][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] 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] Substituted by the
Punjab Laws (Adaptation) Order, 1974 (Pb. A.O. 1 of 1974), for “West Pakistan”.
[4] Added by the West
Pakistan Co-operative Societies and Co-operative Banks (Repayment of Loans)
(Amendment) Ordinance, 1966 (XXV of 1966).
[5] Ibid.
[6] Substituted by the
Punjab Laws (Adaptation) Order, 1974 (Pb. A.O. 1 of 1974), for “Government of
West Pakistan”.
[7] Inserted by the
West Pakistan Co-operative Societies and Co-operative Banks (Repayment of
Loans) (Amendment) Ordinance, 1966 (XXV of 1966).
[8] Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 (II of 1992).
[9] 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).
[10] Ibid.
[11] Ibid.
[12] Ibid.
[13] Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 ( II of 1992).
[14] Ibid.
[15] Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 ( II of 1992).
[16] Inserted by the
West Pakistan Co-operative Societies and Co-operative Banks (Repayment of
Loans) ( Amendment) Ordinance, 1966 (XXV of
1966).
[17] Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 ( II of 1992).
[18] Ibid.
[19]
Inserted ibid.
[20] Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 (II of 1992).
[21] 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).
[22]
Ibid.
[24] Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 (II of 1992).
[25] Ibid.
[26] Added by the West
Pakistan Co-operative Societies and Co-operative Banks (Repayment of Loans)
(Amendment) Ordinance, 1966 (XXV of 1966).
[27] Substituted by the
Cooperative Societies and Cooperative Banks (Repayment of Loans) (Amendment)
Act, 1992 (II of 1992).
[28] Ibid.
[29] Added by the
Punjab Co-operative Societies and Co-operative Banks (Repayment of Loans)
(Amendment) Ordinance, 1985 (IX of 1985).
[30] 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.
[31] 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).
[32] Added ibid.
[33] Substituted, for
“the Registrar” by the West Pakistan Co-operative Societies and Co-operative
Banks (Repayment of Loans) (Amendment) Ordinance, 1966 (XXV of 1966).
[34]
Ibid.
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