Application for Registration of Cooperative societies

REGISTRATION OF CO-OPERATIVE SOCIETIES. 1 [3.   x x x]1 1. Omited by  Act 40 of 1964 w.e.f. 26.6.1965. 1 [4.  

Societies which may  be  registered.-      

Subject to the provisions of this Act, a co-operative society which has as  its  objects the promotion of the economic interests or general welfare of its members,  or of the public, in accordance with co operative principles, or  a  co-operative  society established with the object of facilitating the operations of such a society, may be registered under this Act: Provided that no co-operative society  shall be registered if it is likely to be economically unsound, or the  registration  of which may have an adverse effect on development of the co-operative movement.]1 1. Substituted by  Act 40 of 1964 w.e.f. 26.6.1965. 5.    

Registration  with  limited or unlimited liability.-   

 (1) A co-operative society may be registered with or without limited liability: Provided that the liability  of  a  co-operative society of which any member is a cooperative society, shall be limited. (2) The word ‘limited’ or its  equivalent  in any Indian language shall be the last word  in the name of a co-operative society registered under this Act with limited liability. 

6.  Application for  registration  of co-operative societies.-    

(1) An application for the registration of a co-operative society shall be made to the Registrar  in  such form  1[and after complying with such formalities]1  as may be prescribed; and the applicants  shall furnish to him all such information about the society as he may require. 1.  Inserted by  Act 25 of 1998 w.e.f. 15.8.1998.

 (2) Every such application shall conform to the following requirements, namely:—

 (a) the application shall be accompanied by  2[five]2  copies of the proposed bye-laws of the co-operative society; 

 (b) where all the applicants are individuals, the number of applicants  shall not be less than ten;

 (c) every one of the applicants who is  an individual shall be above the age  of eighteen years  1[and the applicants shall not be members of the same family. Explanation.—For  the  purpose of this clause family in relation to a person means an individual, wife or husband, as the case may be, and their dependent children and parents;]1 1.  Inserted by  Act 25 of 1998 w.e.f. 15.8.1998. 2. Substituted by  Act 25 of 1998 w.e.f. 15.8.1998. 

(d) where the objects of  the  co-operative society include the creation of funds to be lent to its members and where all  the applicants are individuals, the applicants shall  reside in the same village or town  1[or in the proposed area of operation of the co-operative society]1  or belong to the same class or pursue the same occupation; 1. Substituted by  Act 25 of 1998 w.e.f. 15.8.1998.

(e)  the  application  shall be signed by every one of the applicants who is an individual and by a person duly authorized  on  behalf of any co-operative society which is an applicant. 1[( f)  the  application  shall  be  accompanied by such fee as may be prescribed and different fees may be prescribed for different  class or classes of co-operative societies.]1 1. Inserted by  Act 25 of 1998 w.e.f. 27.10.1998 by  notification  text  of  the  notification  is  the  end  of the Act. 1[(g) in the case of the co-operative which intends to convert itself into a  Cooperative  Society  under  this  Act, the application shall be accompanied by a resolution of the general meeting of such  Co-operative approving such conversion]1 1.  Inserted by  Act 13 of 2004 w.e.f.  22.03.2004. 

7.  Registration.-   

 (1) If the Registrar is satisfied,—  ( b) 

a)  that the application complies with  the provisions of  this  Act  1[, rules and the provisions of any other law for the time being in force]1;  

( c) that the objects of the proposed society are in accordance with section 4;   ( that the aims of the proposed society are not inconsistent with  the principles of social justice;  

( d)  that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and  

( e)  that the proposed society complies  with  the requirements of sound business and has reasonable chances of success; 

1[Registrar shall, within a period of three  months from the date of receipt of the application, register]1  the  co-operative society and its bye-laws  

2[and send by registered post, a certificate of registration and the original registered bye-laws signed  with  date    and seal by him to the chief promoter mentioned in the application or to the chief executive of the Co-operative which is converted]2 1. Substituted by  Act 25  of 1998 w.e.f.  15.8.1998. 2.  Inserted by  Act 13 of 2004 w.e.f.  22.03.2004. 

1 [ 2[(2) If the Registrar is unable to dispose of such application within the period specified in sub-section (1), the society  and  the  bye-laws shall be deemed to have been registered.]2 1. Sub-sections (2) to (4) inserted by  Act 40 of 1964 w.e.f. 26.06.1965. 2. Substituted by  Act 25 of 1998 w.e.f. 15.08.1998. 

(3)  Where the Registrar refuses to register a proposed co-operative society, he shall forthwith communicate his decision,  with the reasons therefor, to the person making  the  application and if there be more than one to the person who has signed first in the application.

 (4) The Registrar shall maintain a register  of all co-operative societies  registered or deemed to be registered under this Act.]1 

8.  Registration certificate.-    

Where a co-operative society is registered  1[or is deemed  to be registered]1  under this Act, 

the Registrar shall issue a Certificate of Registration signed by him, which shall  be conclusive evidence that the cooperative society therein mentioned is  a co-operative society duly registered  1[or is deemed to be registered]1  under this Act. 

Applicable Acts & Rules

1.  Karnataka  Cooperative Act 1959.    https://drive.google.com/file/d/1DRin5fbuY0tcoZUrogMB16KGCuYUpyfk/view?usp=sharing
2. Karnataka Cooperative Rules 1960   https://drive.google.com/file/d/1JywgOrsnwfIHDTF1cNej1fsV5kamendmw_GCod/view?usp=sharing
3. Amendment to KCS Act 2016  https://drive.google.com/file/d/1IQtIuScgECA6Q69N_Xhf1X5WGmiSS1mt/view?usp=sharing
4. Amendments to KCA Rules 2013   https://drive.google.com/file/d/1YahMN8eC8ZsIIL0NzuHsfqSg9aMioZFt/view?usp=sharing

Website: https://sahakara.kar.gov.in/Acts&Rules.html

High Court of Karnataka Order and Regulatory authority Direction

High Court Order

1. https://drive.google.com/file/d/1kLS5ADby6CBA420x157PBDMTT2Z6OnRu/view?usp=sharing

2. https://drive.google.com/file/d/1MAtVXcVHHXD1rWLNyDZ8V3H9YOiDdwg8/view?usp=sharing

Regulatory authority Direction

Government of Karnataka Cooperative Department Order:

 https://drive.google.com/file/d/17n_btELpJvGobHZRzzpWdZfZkTNeJw-5/view?usp=sharing

If any one still has any doubts, please raise the issue ASAP.

Chandra Nath

7760928824

IRAC Legal Analysis of Current RWA Apartment Owners Society

 IRAC Legal Analysis of Current  RWA   

ISSUE

1. Is the current  registration of  Owners Association legal?

RULES/EXPLANATION

1. Karnataka Apartment Owners Act 1972
2. Karnataka Registration of Societies Act 1960

Current registration is under ser 2 above. In this regard,, the following are relevant:

1. Current Registration of  Society under 1960 act 
1. 1960 Act only for 
1. Promotion of charitable activities.
2. Promotion of educational, science, art, literature, or the fine arts.
3. Promotion of sports
4. Diffusion of knowledge pertaining to commerce and industry
5. Political education training
6. Maintenance of library
7. Collection/preservation of historical monuments, technical and philosophical research
2. "The societies whose aims and objectives are confined to the welfare and interest of its members only such as Pensioners Association, Housing Societies etc. do not come under the scope of Societies Registration Act 1960."  https://www.indiafilings.com/learn/karnataka-society-registration/
3.  Section 10 of the Karnataka Ownership Flat Act 1972, states: ‘Promoter to take steps for formation of Cooperative society or company’ the promoter is required to register cooperative society or company hence it is not legal to register under Karnataka Society Registration Act of 1960.  
2. Regulating Authority ruling:
1. Government of Karnataka (Department of Co-operation) Registrar of Co-operative Societies, Karnataka State, Bangalore- 560052. Ref no: RSR / Cooperative / 144 / 2018-19 Date: 30-11-2018  See https://tinyurl.com/y58437bj
3. Court Rulings
1.  HC, Karnataka  ruling also on the subject.( https://indiankanoon.org/doc/1356067/)
• "3. In fact, I have often observed and even issued notice to the Registrar of Societies in Karnataka. It is strange that under the Karnataka Societies Registration -Act, 1960 (hereinafter referred to as the Act) registration is permitted to these Associations who neither have as their objects promotion of culture, sports nor education but their own trade or professional interests. On that ground it is open to this Court to reject the locus standi of the petitioner to prosecute this petition. Sec. 3 of that Act expressly provides the purpose for which the Association of person may have registered under that Act. If any Association carries on activities outside those purposes enumerated in Sec. 3 of the Act, it will not be entitled to the registration under that Act."
2. SC Ruling :
• Illachi Devi (D) By Lrs. And Ors vs Jain Society, Protection Of ... on 26 September, 2003 : "This appeal is directed against the judgment and order dated 17th August 2001 of the High Court of Delhi, which raises a question, whether a Society registered under the Societies Registration Act, 1860 is entitled to obtain Letter of Administration under Section 236 of the Indian Succession Act (in short "the Act")?.....A society is an association of persons. It may or may not be registered under the Societies Registration Act. Since the aforementioned provisions were inserted in Sections 223 and 236 of the Act, the Courts have held that no Administration can be granted in favor of a society, although a Society could be a beneficiary under a Will executed by testator." https://indiankanoon.org/doc/854277/

ANALYSIS/APPLICATION

1. Applicable statute mandates moving to registration under coop Society
2. Owners Interest also point in this direction:
1. Under 1960 Act, any thing that is given to the Society or owned by the Society is irretrievably lost to the owners for ever:
1. 23. Upon dissolution, no member to receive profit.- 
• (1) If upon the dissolution of any society registered under this Act, there shall remain, after the satisfaction of all its debts and liabilities, any property whatsoever, the same shall not be paid to or distributed among the members of the said society or any of them, but shall be given to some other society, to be determined by the votes of not less than three-fifths of the members present personally or where proxies are allowed, by proxy at the time of the 13 dissolution, or in default thereof, by the principal civil court of original jurisdiction of the district. 
• (2) Notwithstanding anything contained in sub-section (1), it shall be lawful for the members of any society dissolved, to determine by a majority of the votes of the members present personally or where proxies are allowed, by proxy, at the time of dissolution of such society that any property whatsoever remaining after the satisfaction of all its debts and liabilities shall be given to the State Government to be utilized for any of the purposes referred to in section 3. 
2. This is totally NOT in the property interests of the owners and unacceptable to the owners as the property including the UDS and common areas and facilities and also the society money (cash bank and assets of the society) are property owned by the owners and belong to the owners and can not be forced out of the owners hands by statutory provisions.

CONCLUSION

In view of all the above, Registration under 1960 Act is  totally illegal and the protection provided to the owners by the 1972 Act is NOT provided to the owners and hence compliance demands that the Society be re-registered under the proper Act.