Cooperative Societies (Repayment of Loans) Ordinance, 1960

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THE COOPERATIVE SOCIETIES (REPAYMENT OF LOANS) 
ORDINANCE, 1960 
 
 
 
CONTENTS 
1.  Short title, extent and commencement 
2.  Definitions 
3.  Repayment of Loans, etc. 
4.  Determination of liability to repay, etc. 
5.  Power of Registrar when making inquiry 
6.  Power to make Rules 
7.  Penalty 
8.  Procedure 

 
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THE COOPERATIVE SOCIETIES (REPAYMENT OF LOANS) ORDINANCE, 
1960 
ORDINANCE NO. XXXIV OF 1960 
[15th August, 1960] 
An Ordinance to provide for the repayment of certain unsecured loans or loans insufficiently 
secured. 
 WHEREAS it is expedient to provide for the repayment of such loans taken from  
Cooperative Banks and other Co operative Societies as have not been secured or are insufficiently 
secured ; 
 Now, THEREFORE, in pursuance of the Proclamation of the seventh day of October 1958, 
and in exercise of all powers enabling him in that behalf, the President is pleased to make and 
promulgate the following Ordinance :― 
 1. Short title , extent and commencement. ―(1) This Ordinance may be called the 
Cooperative Societies (Repayment of Loans) Ordinance, 1960. 
 (2) It extends to the whole of Pakistan. 
 (3) It shall come into force at once. 
 2. Definitions. ―In this Ordinance , unless there is anything repugnant in the subject or 
context__ 
(a)  “Cooperative Bank” means a Cooperative Society established for carrying on 
banking business and having as its principal object the financing of other 
Cooperative Societies, and includes cooperative socie ties known as Banking 
Unions and Zamindari Banks ; 
(b)  “Cooperative Society ” means a society which, having as its object the 
promotion of the common interests of its members in accordance with 
cooperative principles or having been established with the object of facilitating 
the operation of such a society, is registered under the Cooperative Societies 
Act, 1912 (II of 1912), or under any other law for the time being in force 
relating to the registration of cooperative societies ; 
(c)  “loan” means loan, whether of money or in kind, which has not been secured 
or is insufficiently secured and taken__ 
(i) from a cooperative society, not being a Cooperative Bank, by any 
person other than a member of such society, or 
(ii) from a Cooperative Ba nk by any person, including any member 
thereof, but not a cooperative society, and includes any transaction 
which, in the opinion of the Registrar, is in substance a loan as 
aforesaid ; 
 
 
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 Explanation.__A loan is “insufficiently secured ” if it is not secure d 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 thirty thousand rupees, the cooperative society concerned, and, in the 
case of a loan exceeding thirty thousand rupees, the Registrar, may think adequate. 
1[(d)  “Registrar” means, ― 
(i) in relation to a cooperative society in the Islamabad Capital Territory,  
the Registrar of Cooperative “Societies appointed by the Federal 
Government for that territory; and 
(ii) in relation to a co -operative Society in a Province, the Registrar of  
Cooperative Societies of the Province.] 
 3. Repayment of Loans , etc.―Notwithstanding anything contained in any other law for the 
time being in force, or in any agreement or other instrument, every loan repayable on any day earlier 
than one year preceding the commencement of this Ordinance and every loan any instalment whereof 
was payable as aforesaid and has not been so paid, shall unless repaid earlier, be repaid and secured 
in the following manner, that is to say__ 
(a)  not less than twenty per  cent. of the loan repayable as aforesaid shall be paid 
within six months from the commencement of this Ordinance ; and 
(b)  the balance of the loan after payment as aforesaid shall, within two months 
from the expiry of the period mentioned in clause (a), be 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 thirty thousand rupees, 
the cooperative society concerned, and, in the case of a loan exceeding thirty 
thousand rupees, the Registrar, may think adequate, and shall be repaid in such 
instalments within a period not exceeding two years from the commencement 
of this Ordinance as the co operative society or the Registrar, as the case may 
be, directs : 
 Provided that the Registrar may, if he considers necessary, in cases in which not less 
than fifty per  cent. of the loan has been repaid within the aforesaid period of 
two years, extend the period by a further period, and such further period shall 
not exceed six months. 
 4. Determination of liability to repay , etc.―(1) Every cooperative society shall, within 
thirty days of the commencement of this Ordinance, or within such further period as the Registrar 
may, in special circumstances, allow, furnish to the Registrar full information in respect of all cases 
of loans required to be repaid or secured under section 3. 
 (2) On receipt of information under sub -section (1) in respect of any loan, the Registrar shall 
cause notice to be issued to the borrower requiring him to repay and secure the loan in accordance 
with the provisions of section 3. 
 
 
1Subs. by the Federal Laws (Revision and Declaration) Ordinance, 1981 (Ordinance No. XXVII of 1981), s.5. and Sch. IV. (Amended to the extent of 
Islamabad Capital Territory). 
 
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 (3) Where any borrower to whom notice under sub -section (2) is issued does not admit the 
loan, or any liability arising there from, he shall, within thirty days of the receipt of notice, or within 
such further period as the Registrar may, in special circumstances, allow, submit, either personally or 
by registered post (acknowledgement due), a written statement to that effect to the Registrar, who 
thereupon shall cause notice to be issued to the cooperative society concerned, and shall, after 
making such in quiry as he considers necessary, and giving the part ies reasonable opportunity of 
being heard, decide the matter. 
 (4) The decision of the Registrar under sub -section (3) shall be final, and shall not be called 
in question in any court. 
 5. Power of Registrar when making inquiry. ―The Registrar shall, for th e 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 ; 
(h)  consolidation of cases ; and 
(i)  any other matter which may be prescribed by rules made under section 6. 
 6. Power to make Rules.―The 1[Provincial Government] may, by notification in the official 
Gazette, make rules to carry out the purposes of this Ordinance.  
 7. 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 two years, or with 
fine, or with both. 
 8. Procedure.―No court shall take cognizance of any case under this Ordinance except on a 
complaint in writing made by the Registrar. 
___________ 
RGN Date: 03-07-2024 
1Subs. by A. O., 1964, Art. 2 and Sch.