CO-OPERATIVE SOCIETIES ACT, 1925

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Co-Operative Societies 
1925: Act VII 
CONTENTS 
CHAPTER I 
Preliminary 
1. Short title. 
2. Extent. 
3. Definitions. 
CHAPTER II 
Registration 
4. The Registrar. 
 4-A. Power of Registrar to issue search warrant. 
5. Societies which may be registered. 
6. Restrictions on interest of member of society with li mited liability and a 
share capital. 
7. Conditions of registration. 
 7-A. Eligibility for membership. 
8. Power of Registrar to decide certain questions. 
9. Application for registration. 
 10. Registration. 
 11. Evidence of registration. 
 12. Annual general meeting. 
 13. Special general meeting. 
 14. Change of name: its effect. 
 15. Amalgamation and division of societies. 
 15-A. Merger of a society in a company, etc. 
 16. Amendment of the by-laws of a society. 
16-A. Powers of the Registrar to amend bye-laws. 
THE CO-OPERATIVE SOCIETIES ACT, 1925 
 
(VII of 1925) 
 
CHAPTER III 
Rights and liabilities of members 
 17. No rights of membership to be exercised till due payments are made. 
17A. Special provisions for membership of Resource societies. 
17-B. Expulsion of a member. 
17-C. Transfer of interest in a housing society. 
 18. Votes of members. 
18-A. General body and managing committee. 
18-B. Disqualification for being, and for voting at an election of Director, 
Manager or other officer of the society. 
 19. Restrictions on transfer of share or interest. 
CHAPTER IV 
Duties of societies 
 20. Address of societies. 
20-A. Provision of information. 
20-B. Provision of information by the Registrar. 
 21. Copy of Act etc., to be open to inspection. 
21-A. Updating of records of societies. 
 22. Audit. 
22A. Power of Registrar to exercise powers under section 50A in the course 
of an audit. 
 22-B. Internal audit committee. 
CHAPTER V 
Privileges of societies 
 23. Societies to be bodies corporate. 
 24. Prior claim of society. 
 25. Charge and set-off in respect of shares or interest of member. 
 26. Shares or interest not liable to attachment. 
 27. Transfer of interest on death of member. 
 28. Liability of past member. 
 29. Liability of the estate of deceased member. 
 30. Register of members. 
 31. Admissibility of copy of entry as evidence. 
 32. Exemption from compul sory registration of instruments relating to 
shares etc of society. 
 33. Power to exempt from income -tax, stamp -duty, registration and court 
fees. 
33A. Government may give loans or guarantee interest or return. 
CHAPTER VI 
Property and funds of societies 
 34. Restrictions on loans. 
34-A. Prohibition on issuance of bearer shares, warrants. 
 35. Restrictions on borrowing and donations. 
 36. Restrictions on other transactions with non-members. 
 37. Investment of funds. 
 38. Restriction on dividend. 
 39. Reserve fund. 
 40. Restriction on distribution of profits. 
 41. Provident fund. 
 42. Contribution to charitable purpose. 
CHAPTER VII 
Inspection of affairs 
 43. Inquiry by Registrar. 
 44. Inspection of books of indebted society. 
44-A. Inspection of books and properties. 
44B. Power of Registrar to exercise powers under section 50A in the course of 
an inquiry or inspection. 
44-C. Power to remove officers. 
44-D. Power of Registrar to give directions. 
44-E. Special measures. 
44-F. Grievance redressal. 
 45. Costs of inquiry. 
 46. Recovery of costs. 
CHAPTER VIII 
Liquidation and Arbitration 
47. Winding up. 
48. Society may be wound up if membership is reduced. 
48-A. Winding up of housing society. 
 49. Effect of cancellation of registration. 
49-A. Records of cancelled societies. 
 50. Power of a liquidator. 
50-A. Power of Registrar to assess damage against delinquent promoters, etc. 
 51. Bar of suit in winding up and dissolution matters. 
 52. Disposal of surplus assets. 
 53. Surplus assets of housing society. 
 54. Arbitration. 
54-A. Registrar’s power to set aside the award and order the dispute to be 
referred back to arbitration. 
 55. Attachment before award. 
 56. Appeal against award of arbitrator. 
 57. Finality of awards in certain orders. 
 58. Powers to enforce attendance. 
 59. Money how recovered. 
Powers of Reg istrar to recover certain sums by attachment and sale of 
property. 
Registrar or person empowered by him to be a Civil Court for certain 
purposes. 
59A. Transfer of property which cannot be sold. 
CHAPTER VIII-A 
Distraint 
59-B. Definitions. 
59C. Cases in which application for distraint may be made. 
59D. Form of application. 
59E. Procedure on receipt of application. 
59F. Execution of order for distraint. 
59G. Service of notice of demand and the grounds of distraint. 
59H. Right to reap, etc., produce. 
 59I. Sale proclamation to be issued unless demand is satisfied. 
59J. Place of sale. 
59K. Provisions relating to growing crops. 
59L. Manner of sale.  
59M. Postponement of sale. 
59N. Payment of purchase money. 
59O. Certificate be given to the purchaser. 
59P. Proceeds of sale how to be applied. 
59Q. Certain persons may not purchase. 
59R. Procedure where demand is paid before the sale. 
59S. Distraint of property which is under attachment. 
59T. Suit for compensation for wrongful distraint and appeals. 
59U. Savings. 
CHAPTER IX 
Offences 
 60. Offences. 
Default by a society, officer or member. 
Wilful neglect or default by a society, etc. 
Wilful furnishing of false information. 
Disobedience of summons, requisition, or order. 
Indulgence in fraudulent activities. 
Performing acts without approval. 
Making a false report or refusing to do an act. 
Violation of the master plan. 
Failure to provide information. 
 61. Penalty for offences not otherwise provided for. 
61-A. Penalty for offences under clause (i) of section 60. 
 62. Prohibition of the use of the word “co-operative”. 
62-A. Penalty. 
 63. Cognizance of offences. 
CHAPTER X 
Appeals and Revisions 
 64. Appeals. 
64-A. Power of  Secretary Cooperatives and the Registrar to call for 
proceedings of subordinate officers and to pass orders thereon. 
 64AA. Finality of orders of Secretary Cooperatives. 
CHAPTER XI 
Miscellaneous 
 65. Recovery of sums due to Government. 
65A.  
65-B. Officers of societies to be public servants. 
 66. Power to exempt societies from conditions as to registration. 
 67. Powers to exempt societies from provisions of Act. 
 68. Companies Act not to apply. 
 69. Branches, etc., of societies outside the Province. 
 70. Notice necessary in suits. 
70-A. Bar of Jurisdiction. 
70-B. Assistance by law enforcement agencies. 
 71. Rules. 
 72. Repeal and Savings. 
72A. Construction of references to Co -operative Societies Act, 1912, in 
enactments. 
72B. [Repealed] 
 73. [Repealed] 
THE SCHEDULE 
[repealed] 
TEXT 
1
THE CO-OPERATIVE SOCIETIES ACT, 1925 
(VII of 1925) 
[4 December 1925] 
An 
Act 
to consolidate and amend the law relating to co-operative societies in 
2
[
3
[Province of the 
Punjab]]. 
4
[Preamble.– WHEREAS it is expedient to provide for the formation, registration and 
regulation of cooperative societies for the promotion of thrift, self help and mutual assistance 
amongst agriculturist or other persons with common economic or social interests and for 
achieving better standards of living and for the matters incidental thereto; 
It is hereby enacted as follows:–] 
5
[CHAPTER I 
Preliminary] 
1. Short title.– This Act may be called the 
6
[*] Co-operative Societies Act, 1925. 
7
[
8
[2. Extent.– This Act shall extend to whole of the Punjab.]] 
3. Definitions.– In this Act, unless there is anything repugnant in the subject or context, 
1
[(a) “beneficial owner” means a natural person who owns or controls a society, whether  
                                                           
1For Statement of Objects and Reasons, see Bombay Government Gazette 1924, Part V, pp.  46-48; for R eport of Select 
Committee, see ibid., 1924, Part V, pp. 108-13 and ibid., 1925, Part V, pp. 68-70; and for Proceedings in Council, see Bombay 
Legislative Council Debates, 1924 and 1925, Vols. XII, XIII and XV.  Also see the Bombay Code , Supplementary Volume , 
Second Edition, Part I, printed in 1935, also see the Bombay Code, Volume V, Fifth Edition, printed in 1938. 
2Substituted for the word “Sind” by the Sind Co-operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), 
published in the Gazette of West Pakistan (Extraordinary), dated April 30, 1965, pp. 1987-1989, s. 2. It was earlier substituted 
for the words “the Province of Sind” by the West Pakistan Laws (Adaptation) Order, 1964, published in the Gazette of West 
Pakistan (Extraordinary), dated June 3, 1964, pp. 1805-1849, s. 2 read with the Schedule, Part IV, it came into force on June 8, 
1962. The words “Province of Sind” were previously substituted for the words “presidency of Bombay” by the Sind Laws 
(Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance V of 1955). 
3Substituted for the words “the Province of West Pakistan” by the Co-operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(b). 
4Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 2. 
5Substituted for the word “Preliminary” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind 
Ordinance V of 1955), s. 7 read with the Schedule III, Part IV, it came into force with effect from April 24,1947. Earlier the words 
and figure “Chapter I -Preliminary” were substituted for the word  “Preliminary” by the Bombay Co -operative Societies (Sind 
Amendment) Act, 1936 (Sind Act VIII of 1936), s. 2.  
6Omitted the word “Sind” by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), 
published in the Gazette of West  Pakistan (Extraordinary), dated April 30, 1965, pp.  1987-1989, s. 3.The word “Sind” was 
earlier substituted for the word “Bombay” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 
(Sind Ordinance V of 1955), s. 3(i).  
7Substituted for the original section 2 by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 
1965), published in the Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 4, as amended by the 
Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance V of 1955) and the West Pakistan 
Laws (Adaptation) Order, 1964, published in the Gazette of West Pakistan (Extraordinary), dated June 3, 1964, pp. 1805-1849, 
s. 2 read with the Schedule, Part IV, it came into force on June 8, 1962. 
8Substituted by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 3. 
directly or indirectly or by voting rights or by exercising effective control in that society or by 
such other means as may be prescribed;] 
2
[(aa)] “by-laws” means by -laws registered under this Act and for the time being in 
force and includes a registered amendment of such by-laws; 
(b) “Committee” means the Committee of Management or other directing body to 
whom the management of the affairs of a society is entrusted; 
3
[(bb) “Financing Bank” means a society the main object of which is to make loans 
in cash or in kind to any other society or to an agriculturist who is not a 
member of a society or to both societies and such agriculturists;] 
 
4
[(bb-i) “Government” means Government of the Punjab;] 
 
5
[(bbb) “Loan” includes finance as defined in the Banking Tribunals Ordinance, 1984 
(Ordinance No. LVIII of 1984) and all cognate expressions shall be construed 
accordingly]; 
(c) “Member” includes a person joining in the application for the registration of a 
society or a person admitted to membership after registration in accordance 
with the rules and by-laws applicable to such society; 
(d) “Officer” includes a Chairman, Secretary, Treasurer , member of committee or 
other person empowered under the rules or under the by -laws of a society to 
give directions in regard to the business of such society; 
6
[(dd) “prescribed” means prescribed by the rules made under this Act.]  
(e) “Society” means a s ociety registered or deemed to be registered or deemed 
to be registered under this Act; 
(f) “Registrar” means a person appointed to perform the duties of a Registrar of 
Co-operative Societies under this Act; 
(g) “Rules” means rules made under this Act; 
7
[(gg) “Secretary Cooperatives” means Secretary to the Government, Cooperatives 
Department;]  
(h)       (1) a “resource society” means a society formed with the object of 
obtaining for its members the credit, goods or services required by 
them; 
(2) a “produce rs‟ society” means a society formed with the object of 
producing and disposing of goods as the collective property of its 
members and includes a society formed with the object of the 
collective disposal of the labour of the members of such society; 
                                                                                                                                                                                     
1Added by the Co-operative Societies (Second Amendment) Act 2020, published in the Punjab Gazette (Extraordinary), dated 
September 10, 2020, pp. 1053-1056, s. 2(a).  
2Renumbered for “a” by the Act ibid. 
3Substituted by the Bombay Co -operative Societies (Sind Amendment) Act, 1947 (Sind Act XX of 1947), s. 2. Earlier inserted  
by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 2.  
4Inserted by the Co-operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette (Extraordinary), 
dated August 11, 2020, pp. 585-588, s. 4(a).  
5Inserted by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), published in the Punjab  Gazette 
(Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(1). 
6Inserted by the Co-operative Societies (Second Amendment) Act 2020, published in the Punjab Gazette (Extraordinary), dated 
September 10, 2020, pp. 1053-1056, s. 2(b).  
7Inserted by the Co-operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette (Extra ordinary), 
dated August 11, 2020, pp. 585-588, s. 4(b). 
(3) a “ consumers‟ society” means a society formed with the object of 
obtaining and distributing goods to or of performing services for its 
members, as well as to other consumers and of dividing among its 
members and customers in a proportion prescribed by the rul es or by 
the by-laws of such society, the profits accruing from such supply and 
distribution; 
(4) a “housing society” means a society formed with the object of 
providing its members with dwelling houses 
1
[and facilities relating to 
housing needs] on conditions to be determined by its by-laws; 
(5) a “general society” means a society not falling under any of the four 
classes above-mentioned. 
The Registrar shall classify all societies under one or other of the above heads and his 
decision shall be final. 
A society formed with the object of facilitating the operations of any one of the above 
classes of societies shall be classified as a society of that class. 
A list of all such societies, so classified shall be published annually in the 
2
[Official 
Gazette]. 
3
[CHAPTER II 
Registration] 
4. The Registrar.– 
4
[The 
5
[Government]] may appoint a person to be Registrar of Co -
operative Societies for 
6
[the Province] or any portion of it, and may appoint a person or 
persons to assist such Registrar, and may, by general or spe cial order, confer on any such 
person or persons all or any of the powers of a Registrar under this Act. 
7
[4-A. Power of Registrar to issue search warrant .– (1) For the purpose of recovering 
any papers, documents or books of account belonging to a society,  the Registrar may issue 
a search warrant and exercise all such powers with respect thereto as may be lawfully 
exercised by a magistrate under the p rovisions of Chapter VII of the Code of Criminal 
Procedure, 1898
8
, and all such searches shall be made in accordance with the provisions of 
that Code. 
                                                           
1Ibid., s. 4(c). 
2Substituted for the words “Bombay Government Gazette” by the Government of India (Adaptation of Indian Laws) Order, 1937, 
published in the Gazette of India (Extraordinary), dated  April 1,  1937, pp.  75-344, Article 4 (1) read with  Table of General 
Adaptations. 
3The words and figures “Chapter II -Registration” were substituted for the word “ Registration” by the Sind Laws (Adaptation, 
Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance V of 1955), s. 7 read with the Schedule III, Part IV, it came 
into force on 24 April 1947. Also see the Bombay Co-operative Societies (Sind Amendment) Act 1936 (Sind Act VIII of 1936), s. 
2.  
4Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
5Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a).   
6Substituted for the word “Sind” by the Sind Co-operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), 
published in the Gazette of West  Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 5. It was earlier substituted 
for the words “the Province” by the West Pakistan Laws (Adaptation) Order, 1964, published in the Gazette of West P akistan 
(Extraordinary), dated June 3, 1964, pp. 1805-1849, s. 2 read with the Schedule, Part IV, it came into force on  June 8, 1962. 
The word “Province” was previously substituted for the word “Presidency” by the Sind Laws (Adaptation, Revision, Repeal and  
Declaration) Ordinance, 1955 (Sind Ordinance V of 1955). 
7Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 3. 
8V of 1898.  
  (2) The powers under sub -section (1) shall not be exercised by the Registrar 
before serving a notice on the society and giving it a reasonable opportunity to produce such 
papers, documents or books of account as are specified in such notice.] 
5.  Societies which may be registered .– Subject to the provisions hereinafter 
contained a society which has as its object the promotion of the economic interests of its 
members in accordance with co-operative principles, or a society established with the object 
of facilitating the operations of such a society, may be registered under this Act with or 
without limited liability: 
  Provided that, unless 
1
[the 
2
[Government]] by general or special order otherwise 
directs– 
(a) the liability of a society of which a member is a society shall be limited; 
3
[(b) if a society is a member of another society, that society shall nominate any of 
its members to serve as a director of the society of which it is a member;  
(c) the director of a soci ety who is nominated under clause (b) shall be a natural 
person and shall provide prescribed information to the society to which he is 
nominated in the prescribed manner;  
(d) the secretary of a society shall keep an updated record of any nominated 
directors, as well as provide prescribed information of the nominated directors 
to the Registrar both annually and from time to time when changes occur in 
the prescribed manner;  
(e) the Registrar shall keep an updated record of the nominated Directors of all 
societies in the prescribed manner;  
(f) other than as set out in subsection (b), no director shall nominate on his 
behalf a member or director to perform the membership rights on his behalf.] 
4
[(g)] the liability of a society of which the primary object is the creation of funds to 
be lent to its members, and of which the majority of the members are 
agriculturists and of which no member is a registered society shall be 
unlimited and the members of such a society shall, on its liquidation, be jointly 
and severally liable for and in respect of all obligations of such a society: 
provided further that when the question whether the liability of a society is limited or 
unlimited has once been decided by the Registrar at the time of registration 
his decision shall be final. 
6. Restrictions on interest of member of society with limited liability and a share 
capital.– Where the liability of the members of a society is limited by shares, no member 
other than a society shall– 
(a) hold more than such portion of the share capital of the  society, subject to a 
maximum of one-fifth, as may be prescribed by the rules; or 
                                                           
1Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
2Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2 020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
3Inserted by the Co-operative Societies (Second Amendment) Act 2020, published in the Punjab Gazette (Extraordinary), dated 
September 10, 2020, pp. 1053-1056, s. 3. 
4Renumbered for “b” by the Act ibid.  
1
[
2
[(b) have or claim to have an interest in the shares of the society not exceeding 
two hundred thousand rupees and if the society is a housing society, a 
member may have o r claim to have an interest in the shares of the society, 
not exceeding five hundred thousand rupees:  
provided that the aforementioned restrictions shall not apply to the 
Government if it chooses to become a member of a society, in public interest, 
except a housing society.]] 
3
[7. Conditions of registration .– 
4
[(1) No society, other than a society of which a 
member is a society, shall be registered under this Act, unless it consists of at least ten 
members; in case of a producers‟ society consists of at least fifty members; and, in case of a 
housing society consists of at least one hundred members:  
 Provided that each member of a society, except the housing society and producers‟ 
society, shall have the ordinary place of abode in the same patwar circle or adjoining patwar 
circle.] 
  (2) No society shall be registered for the purpose of carrying on business as a 
banking society, financing bank or which uses as part of its name under which it proposes to 
carry on business, the word “bank” or “banking” unless– 
(a) it has a paid up capital of not less than twenty million rupees or such higher 
amount, as may be prescribed; and  
(b) satisfies such other conditions as may be prescribed. 
(3) The word “Limited” shall be the last word in the name of every society 
registered with limited liability.] 
5
[7-A. Eligibility for membership .– A person shall be eligible to become member of a 
society if– (a) in case of an individual, he is above the age of eighteen years, is of sound 
mind, is solvent and has not applied to be adjudged as an un-discharged insolvent; 
(b) it is a cooperative society; or 
(c) it is a body corporate or a company.] 
 
6
[
7
[8. Power of Registrar to decide certain questions .– If any question arises as to 
whether for the purposes of this Act, a person is an agriculturist or not, or as to which patwar 
circle he is resident of, the question shall be decided by the Registrar, whose decision shall 
be the final.]  
9.  Application for registration .– (1) For purposes of registration an application to 
register shall be made to the Registrar. 
                                                           
1Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 3. 
2Substituted by the Co -operative S ocieties (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 5. 
3Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 4. 
4Substituted by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 6. 
5Inserted by the Cooperative Societies (Amen dment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 5. 
6Substituted by the Act ibid., s. 6. 
7Substituted by the Co -operative Societies (Second Amendment) Act 2020  (XXII of 2020) , published in the Punjab Gazette 
(Extraordinary), dated September 10, 2020, pp. 1053-1056, s. 4. 
1
[(2) The application for registration of a cooperative society shall be– 
(a) made in writing specifying the address of its proposed registered office; 
2
[(b) signed by at least fifty persons in case of a producers‟ society; hundred 
persons in case of a housing society; and, at least ten persons for any other 
category of societies with proof of the identifications of those persons: 
provided that the condition as to the number of persons shall not be 
applicable in case where at least one of the proposed members is a society;] 
(c) accompanied, in the case of producers, or housing society or any other 
society which is likely to adversely affect the environment, approval of the 
competent authority in accordance with section 12 of the Pakis tan 
Environmental Protection Act, 1997 (Act XXXIV of 1997); 
(d) accompanied by the following documents: 
(i) a feasibility report showing its financial viability; 
Explanation.– Financial viability shall include a statement of finances relating to the 
expected business turn over of the society, stating the number of members and 
expenditures being within its income; 
(ii) proof that promoter members‟ contributions towards the paid up share capital 
are in accordance with the feasibility report; 
(iii) proof of the payment of such registration fee as may be prescribed; provided 
that different registration fee may be prescribed for different categories of 
societies; provided further that in case of agriculture society, the registration 
fee shall not exceed five hundred rupees; 
3
[*] 
(iv) a copy of the proposed by-laws of the society 
4
[;]  
5
[(v) information as may be prescribed about its members, beneficial owners, 
running affairs of the society; and 
(vi) information as may be prescribed regarding its employees and off icers, and 
the reasons, if any, for running the affairs by them, in case the society is run 
by non-members i.e. officers or employees.] 
 (3) A housing society shall, within a period of one year of its registration, furnish 
the schedule of proposed developm ent of land, master plan, site plan indicating availability 
of the existing public utilities, public amenities and other allied facilities in the area and, in 
case of its failure, the Registrar may de-register the society after affording it an opportunity of 
hearing. 
  (4) The Registration fee shall be deposited in the account of the Registrar and 
shall be utilized in the prescribed manner.] 
                                                           
1Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 7. 
2Substituted by  the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 7.   
3Omitted the word “and” by the Co -operative Societies (Second Amendment) Act 2020, published in the  Punjab Gazette 
(Extraordinary), dated September 10, 2020, pp. 1053-1056, s. 5(a). 
4Substituted for the full stop by the Act ibid., s. 5(b). 
5Added by the Act ibid. 
10.  Registration.– If the Registrar is satisfied that a society has complied with the 
provisions of this Act and the  rules and that its proposed by -laws are not contrary to 
1
[any 
law for the time being in force], he may register the society and its by-laws. 
11.  Evidence of registration.– A certificate of registration signed by the Registrar shall 
be conclusive evidence  that the society therein mentioned is duly registered unless it is 
proved that the registration of the society has been cancelled. 
12.  Annual general meeting.– Every society shall within a period of three months after 
the date fixed for making up its acc ounts for the year under the rules for the time being in 
force call a general meeting of its members. 
13.  Special general meeting.– A special general meeting may be called at any time by 
a majority of the committee and shall be called within one month– 
(1) on the requisition in writing of one-fifth of the members of the society, or 
(2) at the instance of the Registrar. 
14.  Change of name: its effect .– A society may, by a resolution of a general meeting 
and with the approval of the Registrar, change its name: but such change shall not affect any 
right or obligation of the society, or of any of its members, or past members and any legal 
proceedings pending may be continued by or against the society under its new name. 
2
[15. Amalgamation and division of socie ties.– (1) Any two or more societies may, with 
the prior approval of the Registrar, by a resolution passed by two -third majority of the 
members present and voting in a general or special meeting of the societies, amalgamate as 
a single society. 
 (2) A society may, with the prior approval of the Registrar, by a resolution passed 
by two-third majority of the members present and voting in a general or special meeting of 
the society divide the society into two or more societies. 
 (3) A society or societies, as the case may be, by way of a resolution passed in 
accordance with this section, transfer to, divide or amalgamate its or their assets and  
liabilities with any other society or societies in case of division or amalgamation with the prior 
written consent of the creditor or creditors, if any, of the society or the societies. 
 (4) Division of assets and liabilities shall take place after due approval and audit 
and in such manner, as may be prescribed. 
 (5) No new society arising out of an existing society shall  be registered unless it 
satisfies the conditions of registration of a society under this Act or the rules.] 
3
[15-A. Merger of a society in a company, etc.– 
4
[(1) Notwithstanding anything contained in 
this Act and subject to any other law for the time bein g in force, a society may, with the 
written consent of its creditors and the approval of the Registrar, by a resolution passed by 
two-third majority of its members present and voting in a special general meeting and 
incorporating the terms and conditions of the proposed merger, merge itself in a company or 
                                                           
1Substituted for the words “this Act or to the rules” by the Cooperative Societies (Amendment) Act, 1992 (I of 1992), published 
in the Punjab Gazette (Extraordinary), dated June 4, 1992, s. 2. 
2Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 8. 
3Inserted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 9. 
4Substituted by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 8. 
a body corporate and the merger of a society shall be as a whole rather than merger of any 
part or phase of such society:  
Provided that notice of the special general meeting shall be served upon all the 
members of the society through registered post, recognized courier service and through 
publication in a daily newspaper of national circulation at least fifteen days before such 
meeting.] 
(2) On the fulfillment of the legal formalities and disposal of obje ctions, if any, the 
Registrar may issue a certificate authorizing such merger. 
(3) On the issuance of the certificate under sub -section (2), all the assets and 
liabilities of the society shall stand transferred to the company or the body corporate, as the 
case may be.] 
16.  Amendment of the by-laws of a society.– 
1
[(1) No amendment of the bye-laws of a 
society shall be valid until it is registered under this Act.] 
  (2) If the Registrar is satisfied that any amendment of the by -laws 
2
[made by a 
society] is not contrary to 
3
[any law for the time being in force], he may register the 
amendment. 
  (3) When the Registrar registers an amendment of by -laws of a society 
4
[under 
sub-section (2)], he shall issue to the society a copy of the amendment certified by him,  
which shall be conclusive evidence that the same is duly registered. 
 
5
[16-A.  Powers of the Registrar to amend bye -laws.– (1) If the Registrar is satisfied that 
the bye-laws of a society are inconsistent with any law for the time being in force, or it is  
necessary in the interest of the society and its members to make amendments in such bye -
laws, he may, by means of a notice in writing, giving reasons, bring the fact to the notice of 
the society and advise the society to make the amendments within a period of sixty days. 
(2) If the society fails to make such amendments w ithin the time specified in 
subsection (1), the Registrar may, after giving the society an opportunity of being heard, 
register such amendments as he may decide and issue to the society a c opy of the 
amendment registered by him. 
(3) An appeal shall lie to the 
6
[Secretary Cooperatives] from an order of  the 
Registrar passed under sub section (2) within two months of the date of communication of 
the order.] 
7
[CHAPTER III 
                                                           
1Substituted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 5(i). 
2Inserted by the Act ibid., s. 5(ii). 
3Substituted for the words “this Act or to the rules” by the Cooperative Societies (Amendment) Act, 1992 (I of 1992), published 
in the Punjab Gazette (Extraordinary), dated June 4, 1992, s. 3. 
4Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 5(iii). 
5Added by the Cooperative Societies (Amendment) Act, 1992 ( I of 1992), published in the Punjab Gazette (Extraordinary), 
dated June 4, 1992, s. 4, and substituted by the Cooperative Societies (Amendment) Ordinance, 2001 (I of 2002), published in 
the Punja b Gazette (Extraordinary) dated  January 5, 2002, s.  2, It 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. 
6Substituted for the word “Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in the 
Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 9. 
7Substituted for the words “Rights and liabilities of members” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) 
Ordinance, 1955 (Sind Ordinance V of 1955), s. 7, Schedule III, Part IV, it came into force with effect from 24 April 1947. Earlier 
the words and figures “Chapter III -Rights and liabilities of members” were substituted for the word s “Rights and liabilities of 
members” by the Bombay Co-operative Societies (Sind Amendment) Act, 1936 (Sind Act No. VIII of 1936), s. 2. 
Rights and liabilities of members] 
17.  No rights of membership to be exercised till due payments are made .– No 
person shall exercise the rights of a member of a society unless or until he has made such 
payment to the society in respect of membership, or acquired such interest in  the society as 
may be prescribed by the rules or the by-laws of such society. 
1
[17A. Special provisions for membership of R esource societies .– Notwithstanding 
anything contained in this Act and any other law for the time being in force– 
(i) every applicat ion made by any person for membership of an Agricultural 
Credit Society shall be accompanied by a declaration specifying the 
immovable property on which he agrees to have a charge created for the 
dues of the society; and no such person shall be admitted as  a member or 
shall exercise rights of a member of such society unless he makes such 
declaration; 
(ii) any member of an Agricultural Credit Society may at any time make a 
declaration as in clause (i) regarding immovable property on which he agrees 
to have a charge created for the dues of the society of which he is a member; 
(iii) a declaration made under clause  (i) or (ii) may be varied at any time by a 
member with the consent of the society in favour of which such charge is 
created; 
(iv) no member of an Agr icultural Credit Society so long as he continues to 
remain such member shall alienate the whole or any part of the property 
specified in the declaration made under clause (i) or (ii); 
(v) any alienation of any property specified in the declaration made und er clause 
(i) or (ii) by such member shall be void; 
(vi) subject to the prior claim of 
2
[Government] in respect of land revenue or any 
money recoverable as arrears of land revenue, there shall be a first charge in 
favour of the society on the property spec ified in the declaration under clause 
(i) or (ii) in respect of and to the extent of any debt or other outstanding 
demand owing by such member to the society; 
(vii) an entry regarding a charge on immovable property created by a declaration 
under clause (i) or (ii) or any variation made therein under clause (iii) shall be 
made in the record of ri ghts maintained under Chapter XA of the 
3
[Sind] Land 
Revenue Code, 1879, 
4
[or the relevant provisions of any other law relating to 
land revenue in force in the area, ] notwithstanding anything contained in the 
said Chapter. 
Explanation.– For the purposes of this section an „Agricultural Credit Society‟ means a 
resource society of which the primary object is the creation of funds to be lent to its members 
and of which a  majority of the members are agriculturists and of which no member is a 
registered society and the liability of which is limited.] 
                                                           
1Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 6. 
2Substituted for the words “the Crown” by the West Pakistan Laws (Adaptation) Order, 1964, published in the Gazette of West 
Pakistan (Extraordinary), dated 3 June 1964, pp. 1805-1849, s. 2 read with the Schedule, Part IV; it came into force on 8 June 
1962. 
3Substituted for the word “Bombay” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind 
Ordinance V of 1955), section 3(i); it came into force with effect from 30 May 1951. 
4Added by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), published in the 
Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 6. 
1
[17-B. Expulsion of a member .– (1) A society may recommend to the Registrar to expel 
from its membership a member who is a p ersistent defaulter of the dues of the society or 
who commits any act prejudicial to the interests of the society: 
Provided that the managing committee of the society shall, after affording the 
member an opportunity of hearing, place the matter before the general body of the society 
and approval thereof shall be communicated to the Registrar. 
  (2) The Registrar may expel such a member from the society after affording him 
an opportunity of hearing. 
  (3) The Registrar shall, before passing the expulsion ord er, determine the 
amount payable, if any, by the society to the member and may direct that the expulsion order 
would take effect from the date of payment of the amount to such member or its deposit in 
the account of the Registrar. 
  
2
[(4) Subject to subsection (3), a member shall cease to be member of the society 
from the date when the expulsion order of the Registrar takes effect, and in case of housing 
society, the plot of the defaulter member shall also be cancelled along with cancellation of 
membership under subsection (1):  
  Provided that this provision shall not apply to a member of a housing society who has 
made full payment towards the cost of land and the requisite development charges.]] 
3
[17-C. Transfer of interest in a housing society .– A member of a society shall cease to 
be the member of such society in case all his interests in the immovable property in the 
society are transferred in favour of any other person by sale, inheritance, gift or otherwise, 
and the person acquiring such interests shall subject to the rules, be admitted as a member:  
  Provided that where more than one persons acquire the interests, one of such 
persons, with mutual consent or the person older in age, shall be admitted as a member 
having right to vote while other persons shall be the members without right to vote:  
 Provided further that where a minor or mentally disabled person acquires the 
interests, the natural or legal guardian of the minor or, as the case may be, the person 
bound to maintain the disabled person shall be admitted as a member and such membership 
shall stand transferred to the minor as soon as he acquires majority or to the disabled 
person as soon as his disability is removed.] 
18. Votes of members.– (1) No member of any society shall have more than one vote in 
its affairs, provided that in the case of an equality of votes the chairman shall have a casting 
vote. 
  (2) A Society which has invested any part of its funds in the shares of another 
society, may appoint one of its members to vote in the affairs of such other registered 
society. 
4
[18-A. General body and managing committee .– (1) The powers and management of a 
society shall vest in its general body consisting of all its members. 
                                                           
1Inserted by the Co operative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 10. 
2Substituted by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 10. 
3Inserted by the Act ibid., s. 11. 
4Inserted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab G azette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 11. 
 (2) A society shall have a managing committee, constituted in accordan ce with 
the rules and the by -laws, which shall exercise such powers and functions as may be 
delegated to it by the general body. 
 (3) Subject to any general or special order of the 
1
[Government], the Registrar 
may, on such terms and conditions as he may de em fit, appoint not more than two experts 
on the managing committee of a society for the development and proper management of the 
society. 
 (4) The Registrar may require a society to obtain approval of its general body, in 
any matter concerning the business of the society, before proceeding further in the matter.] 
2
[
3
[18-B]. Disqualification for being, and for voting at an election of Director, 
Manager or other officer of the society.– A member of the society to which the provisions 
of this section have bee n applied by the 
4
[Government] by notification in the Official Gazette 
shall be disqualified for being, and for voting at an election of, a Director, Manager or other 
officer of the Society– 
(a) if he has taken a loan from the Society which has been outsta nding for six 
months or more after it has become payable and has not been re -paid up to 
the day immediately preceding the date of the election, or 
(b) if he has taken a loan from the Society which is repayable by installments and 
the amount of three or more installments has been outstanding for six months 
or more from the date on which the amount of the last installment became 
payable and has not been re-paid up to the day immediately preceding the date 
of the election. 
Explanation.– The date on which the l oan or installment becomes payable is the date 
specified in the bond or any other instrument in writing evidencing the loan but does not 
include any extension thereof.] 
19.  Restrictions on transfer of share or interest .– (1) The transfer or charge of the 
share or interest of a member in the capital of a society shall be subject to such conditions 
as to maximum holding as may be prescribed by this Act or by the rules. 
 (2) A member shall not transfer any share held by him or his interest in the 
capital or property of any society or any part thereof unless– 
(a) he has held such share or interest for not less than one year; and 
(b) the transfer or charge is made to the society or to a member of the society or 
to a person whose application for membership has be en accepted by the 
society. 
5
[CHAPTER IV 
Duties of societies] 
                                                           
1Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a).   
2Inserted by the Bombay Co -operative Societies (Sind Amendment) Act, 1941 (Sind Act XVIII of 1941), published in the Sind 
Government Gazette, dated February 26, 1942, s. 2. 
3Section 18A renumbered as 18 -B by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab 
Gazette (Extraordinary), dated July 1, 2006, pp. 3-10, s. 11. 
4Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
5Substituted for the words “Duties of Societies” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 
1955 (Sind Ordinance V of 1955), s. 7, Schedule III, Part IV, it came into force with effect from 24 April 1947.  Earlier the words 
and figures “Chapter IV-Duties of societies” were substituted for the words “Duties of societies” by Bombay 8 of 1936, s. 2. 
1
[20. Address of societies .– (1) Every society shall have a registered office which shall 
be the address of the society. 
  (2) A society shall not change its address without the prior approval o f the 
Registrar: 
  Provided that before seeking the approval of the Registrar, the society shall inform its 
members‟ creditors and where applicable, the society of which it is a member, by post and 
also through two national daily Newspapers, as to the proposed change of the address. 
  (3) The approval of the Registrar shall immediately be communicated by the 
society to its members‟ creditors and the society of which it is a member.] 
 
2
[20-A. Provision of information.– (1) The Secretary of a society shall pr ovide information 
to the Registrar annually or as and when required by Registrar, in such manner and in such 
form as may be prescribed.  
  (2) The Secretary of a society shall provide any information, including but not 
limited to information regarding bene ficial owners, members, nominees of the members, 
officers, employees and Managing Committee of the Society, in the prescribed manner to 
the relevant officer or authority under the Anti-Money Laundering Act, 2010 (VII of 2010).  
20-B.  Provision of information by the Registrar.– The Registrar shall provide information 
to any officer or the authority mentioned under section 20 -A upon a request in writing, 
regarding the members and beneficial owners, officers/employees of the society, assets or 
shares held by the members in the society, their addresses, nominees of the members, 
properties and financial condition of the society.] 
21.  Copy of Act etc., to be open to inspection .– Every society shall keep open to 
inspection at all reasonable times at the registered address of the society– 
(a) a copy of this Act, 
(b) a copy of the rules governing such society, 
(c) a copy of the by-laws of such society, 
3
[*] 
4
[(d) an up to date register of its members and nominees of the members,]  
5
[(e) an up to date register to its beneficial owners, and  
(f) such other information as may from time to time be required by the Registrar.]  
6
[21-A. Updating of records of societies .– (1) The Registrar shall keep such record of the 
beneficial owners, members, nominees of the members, directors, managing committee and 
employees of the societies as may be prescribed.  
  (2) Within three months of the commencement of the Punjab Cooperative 
Societies (Amendment) Act 2020, every society shall provide the information about its 
beneficial owners to the Registrar.  
                                                           
1Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 12. 
2Inserted by the Co-operative Societies (Second Amendment) Act 2020, published in the Punjab Gazette (Extraordinary), dated 
September 10, 2020, pp. 1053-1056, s. 6.  
3Omitted the word “and” by the Co -operative Societies  (Second Amendment) Act 2020, published in the Punjab Gazette 
(Extraordinary), dated September 10, 2020, pp. 1053-1056, s. 7(a).  
4Substituted by the Act ibid. 
5Added by the Act ibid., s. 7(b). 
6Inserted by the Act ibid., s.8. 
  (3) If a society fails to provide the information as required under subsection (2), 
the Registrar may proceed under section 4-A of this Act.  
  (4) For the purposes of ensuring the requirements set out in subsections (1), (2) 
and (3), the Registrar shall exercise such responsibilities and powers as may be prescribed.] 
22.  Audit.– 
1
[(1) The Registrar shall, by himself, an auditor or a committee of auditors 
appointed by him, through general or special order in this behalf, specifying th e period for 
completion, audit the accounts of every society once at least in a year: 
  Provided that no person shall audit the accounts of a society for two consecutive 
years.] 
 
2
[(1-A) The Registrar may, by general or special order, determine the fee pay able to 
the auditor or the committee of the auditors, as the case may be, and the fee so determined 
shall be payable by the society.] 
  (2) The audit under sub -section (1) shall include an examination of overdue 
debts, if any, the verification of cash bala nce and securities, and a valuation of the assets 
and liabilities of the society. 
  (3) The Registrar or other person auditing the accounts of any society shall have 
free access to the books, accounts and vouchers of such society and shall be allowed to 
verify its cash balances and securities. 
  The Directors, Managers, and other officers of the society shall furnish to the 
Registrar or other person appointed to audit the accounts of a society all such information as 
to its transactions and working as the Registrar or such person may require. 
  (4) The Registrar and every other person appointed to audit the accounts of a 
society shall have power, when necessary– 
(i) to summon at the time of his audit any officer, agent, servant or member of 
the society who h e has reason to believe can give valuable information in 
regard to any transaction of the society or the management of its affairs, or 
(ii) to require the production of any book or document relating to the affairs of any 
cash or securities belonging to the  society by the officer, agent, servant, or 
member in possession of such book, document, cash or securities. 
3
[22A. Power of Registrar to e xercise powers under section 50 A in the course of an 
audit.– Where, in the course of an audit under section 22 it app ears to the Registrar that 
there exists any such ground as is specified in section 50A, he may, of his own motion or on 
the application of the person authorised by him under section 22, exercise the  powers 
specified in section 50A]. 
4
[22-B. Internal audit committee.– (1) Every housing and producers‟ society, in addition to 
the audit of accounts under section 22, shall also get the accounts audited by an internal 
audit committee comprising at least three members of the society other than the members of 
its managing committee as may be appointed by the general body with their consent. 
                                                           
1Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 13. 
2Inserted by the Act ibid., s.14. 
3Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 7. 
4Inserted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 15. 
 (2) The report of the internal audit committee shall be submitted by the society or 
the committee to the Registrar within one month of the receipt or compilation of such report.] 
1
[CHAPTER V 
Privileges of societies] 
23. Societies to be bodies corporate .– The registration of a society shall render it a 
body corporate by the name under which it is registered, with perpetual succession and a 
common seal, and with power to hold prope rty, to enter into contracts, to institute, and 
defend suits and other legal proceedings and to do all things necessary for the purposes of 
its constitution. 
24. Prior claim of society .– Subject to any prior claim of 
2
[Government] in respect of 
land revenue or any money recoverable as land revenue or of a landlord in respect of rent or 
any money recoverable as rent, 
(a) any debt or outstanding demand owing to a society by any  member or past 
member 
3
[or, in the case of a society authorised under sub -section (1) of 
section 34 to make loans to non -members, by a non-member] shall be a first 
charge (i) upon crops or other agricultural produce raised in whole or in part 
with a loan taken from the society by  
4
[such member, past member or non -
member], and (ii) upon any cattle, fodder for cattle, agricultural or industrial 
implements or machinery, or raw materials for manufacture or workshop, 
godown or place of business, supplied to or purchased by  
5
[such member, 
past member or non -member] in whole or in part from any  loan whether in 
money or goods given, him by the society: 
Provided that nothing contained in this clause shall effect the claims of any bona fide 
purchaser or transferee for value without notice of any such crops or other agricultural 
produce, cattle, fod der for cattle or raw materials for manufacture or workshops, or 
agricultural or industrial implements; and 
(b) any outstanding demands or dues payable to a housing society by any 
member or past member in respect of rent, shares, loans, or purchase money 
or any other rights or amounts payable to such society shall be a first charge 
upon his interest in the immovable property of the society. 
25. Charge and set -off in respect of shares or interest of member .– A society shall 
have a charge upon the share or in terest in the capital and on the deposits of a member or 
past member and upon any dividend, bonus or profits payable to a member or past member 
in respect of any debt due from such member or past member to the society, and may set-off 
any sum credited or p ayable to a member or past member in or towards payment of any 
such debt. 
                                                           
1Substituted for the words “Privileges of Societies” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 
1955 (Sind Ordinance V of 1955), s. 7, Schedule III, Part IV, it came into force with effect from 24 April 1947.  Earlier the words 
and figures “Chapter V-Privileges of societies” were substituted for the word s “Privileges of societies” by Bombay 8 of 1936, s.  
2. 
2Substituted for the words “the Crown” by the West Pakistan Laws (Adaptation) Order, 1964, published in the Gazette of West 
Pakistan (Extraordinary), dated 3 June 1964, pp. 1805-1849, s. 2 read with the Schedule, Part IV; it came into force on 8 June 
1962. These were earlier substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 
1937, published in the Gazette of India (Extraordinary), dated April 1, 1937, pp.  75-344, Article 3 read with Schedule III 
(Bombay Acts). 
3Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1947 (Sind Act XX of 1947), s. 4(a). 
4Substituted for the words “such member or past member.” by the Act ibid., s. 4(b).  
5Ibid. 
26. Shares or interest not liable to attachment .– Subject to the provisions of section 
25, the share or interest of a member in the capital of a society or in any provident fund 
established under section 41 of this Act shall not be liable to attachment or sale under any 
decree or order of a Court of justice in respect of any debt or liability incurred by such 
member, and 
1
[neither the Official Assignee under the  Insolvency (Karachi Division 
2
[* * *]) 
Act, 1909 nor a receiver under the Provincial Insolvency Act, 1920, shall] be entitled to or have 
any claim on such share or interest. 
27. Transfer of interest on death of member .– (1) On the death of a member of a 
society such society may within a period of one year from the death of such member transfer 
the share or interest of the deceased member to a person or persons nominated in 
accordance with the by -laws of the society, if duly admitted a member of the Society, in 
accordance with the rules or the by-laws of the society, or, if there is no person so nominated, 
to such person as may appear to the Committee to be the heir or legal representative of the 
deceased member if duly elected a member of the society, or may pay to such nominee, heir 
or legal representative, as the case may be, a sum representing the value of such member‟s 
share or interest as ascertained in accordance with the rules or by-laws: 
 Provided that such nominee, heir or legal representative, as the case may be, may 
require that payment shall be made by the society within one year from the death of the 
member of the value of the share or interest of such member ascertained as aforesaid. 
3
[Provided further that the nominee, heir or legal representative shall distribute th e 
amount received by him among the heirs of the deceased.] 
 (2) A society shall subject to the provisions of section 25 and unless prevented 
by an order of a competent court pay to such nominee, heir or legal representative, as the 
case may be, all other moneys due to the deceased member from the society. 
 (3) All transfers and payments made by a society in accordance with the 
provisions of this section shall be valid and effectual against any demand made upon the 
society by any other person. 
28. Liability of past member.– The liability of a past member for the debts of a society 
as they existed at the time when he ceases to be a member, shall continue for a period of 
two years from the date of his ceasing to be a member. 
4
[29. Liability of the estate of dec eased member.– The estate of a deceased member 
shall be liable for the debts of the society, at the time of his death, for a period of one year.] 
30. Register of members .– Any register or list of members or shares kept by any 
society shall be prima facie evidence of any of the following particulars entered therein:– 
(a) the date at which the name of any person was entered in such register or list 
as a member; 
(b) the date at which any such person ceased to be a member. 
                                                           
1Substituted for the words “a Receiver under the Provincial Insolvency Act, 1920, shall not” by the Sind Co -operative Societies 
(West Pakistan Amendment) Ordinance, 1965 (VII of 1965), published in the Gazette of West Pakistan (Extraordinary) dated  
April 30, 1965, pp. 1987-1989, s. 7. These words were earlier substituted for the words “neither the Official Assignee under the 
Presidency Town, Insolvency Act, 1920, shall” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 
(Sind Ordinance V of 1955), s. 7 read with Schedule III. 
2Deleted the words “and Dacca” by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), published in 
the Punjab Gazette (Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(2). 
3Added by the Cooperative Societies (Amendment) Ordinance, 1985 (VIII of 1985), published in the Punjab Gazette 
(Extraordinary), dated February 23, 1985, s. 2. 
4Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 16. 
31. Admissibility of copy of entry as evidence.– (1) A copy of any entry in any book, 
register or list regularly kept in the course of business in the possession of a society shall, if 
duly certified in such manner as may be prescribed by the rules, be admissible in evidence 
of the existence o f the entry and shall be admitted as evidence of the matters and 
transactions therein recorded in every case where, and to the same extent to which the 
original entry would, if produced, have been admissible to prove such matters. 
 (2) In the case of such societies as 
1
[the 
2
[Government]] by ge neral or special 
order may direct no officer of a society shall in any legal proceedings to which the society is 
not a party be compelled to produce any of the society‟s books, the contents of which can be 
proved under sub-section (1), or to appear as a witness to prove the matters, transactions 
and accounts therein recorded, unless by order of the Court or a Judge made for special 
cause. 
32. Exemption from compulsory registration of instruments relating to shares 
3
[etc] 
of society.– Nothing in section 17, sub -section (1), clauses (b) and (c), of the 
4
[* * * * *] 
Registration Act, 1908
5
, shall apply to– 
(1) any instrument relating to shares in a society notwithstanding that the assets 
of the society consist in whole or in part of immovable property; or 
(2) any debenture 
6
[participation term certificate  
7
[term] finance certificate, 
musharika certificate, modaraba certificate and such other instruments as 
may be approved by the State Bank of Pakistan], issued by any societ y and 
not creating, declaring, assigning, limiting or extinguishing any right, title or 
interest to or in immovable property except in so far as it entitles the holder to 
the security afforded by a registered instrument whereby the society has 
mortgaged, c onveyed or otherwise transferred the whole or part of its 
immovable property or any interest therein to trustees upon trust for the 
benefit of the holders of 
8
[such instruments]; or 
(3) any endorsement upon or transfer of any debenture 
9
[participation term  
certificate, term finance certificate, musharika certificate, modaraba 
certificate, and such other instruments as may be approved by the State Bank 
of Pakistan], issued by any society. 
33. Power to exempt from income-tax, stamp-duty, registration and court fees.– (1) 
The 
10
[
1
[Federal] Government], by notification in the 
2
[Official Gazette], may, in the case of 
                                                           
1Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
2Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
3Substituted for the words “and debentures” by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), 
published in the Punjab Gazette (Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(3)(i). 
4The word “Indian” was omitted by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance 
V of 1955), s. 4; it came into force with effect from 30 May 1951. 
5XVI of 1908. 
6Inserted by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL  of 1984), published in the Punjab Gazette 
(Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(3)(ii)(a). 
7Added by corrigendum published at p. 3029 in the Gazette of Punjab (Extraordinary), dated December 31, 1984. 
8Substituted for the words “su ch debentures” by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), 
published in the Punjab Gazette (Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(3)(ii)(b). 
9Inserted by the Ordinance ibid., s. 2(3)(iii). 
10Substituted for “Governor-General in Council” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated: 1 April 1937, pp.  75-344, Article 4(1) and Table of General Adaptations. Now „Federal 
any society or class of societies, remit the income -tax or super-tax payable in respect of the 
profits of the society, or of the dividends or other p ayment received by the members of the 
society on account of profits or in respect of interest 
3
[or return] on securities held by the 
society. 
 (2) The 
4
[
5
[Government]] by notification in the  
6
[Official Gazette], may, in the case 
of any society or class of societies, remit– 
(a) the stamp -duty with which, under any law for the time being in force, 
instruments executed by or on behalf of a society or by an officer or member 
and relating to the business of the society, or any class of such instruments 
7
[or secu rity bonds executed by or on behalf of officers or servants of a 
society] or awards of the Registrar or arbitrators under this Act are 
respectively chargeable; and 
(b) any fee payable under the law of registration and of court fees for the time 
being in force. 
8
[* * * * * * * * *   ] 
33A. 
9
[Government] may give loans or guarantee interest 
10
[or return ].– With such 
safeguards as may be prescribed by rules in this behalf 
11
[the 
12
[Government]] may give loans 
                                                                                                                                                                                     
Government‟, see the Federal Adaptation of Laws Order, 1975 (P.O. 4 of 1975), published in Gazette of Pakistan (Extraordinary), Part-I, 
dated August 1, 1975, pp. 435-467, see Article 2 read with Table of General Adaptations. 
1Substituted for the word “Central” by the Co-operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 12.   
2Substituted for the words “Gazette of India” by the Government of India (Adaptation of Indian Law s) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 4(1) read with Table of General Adaptations. 
3Inserted by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), published in th e Punjab Gazette 
(Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(4). 
4Substituted for the word “Government” by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), 
published in the Gazette of West  Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 8(a), which was earlier substituted for 
the words “Local Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the Gazette of India 
(Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
5Substituted for the words “Provincial Government” by the Co-operative Societies (Amendment) Act 2020 (XIX of 2020), published in the 
Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
6Substituted for the words “Bombay Government Gazette” by the Government of India (Adaptation of Indian Laws) Order, 1937, 
published in the Gazette o f India (Extraordinary), dated April 1 , 1937, pp.  75-344, Article 4(1) read with  Table of General 
Adaptations. 
7Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 8. 
8The paragraph beginning with the words “in this sub -section” and ending with the words “the Provincial Government”, which 
was earlier inserted by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the Gazette of India 
(Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts) were omitted by the Sind Co -
operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), published in the Gazette of West  Pakistan 
(Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 8. 
9Substituted for the words “Provincial Government” by the Co -operative Societies (Amend ment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
10Inserted by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), published in the Punjab Gazette 
(Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(5)(i). 
11Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
12Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
to societies or guarantee the payment of 
1
[the principal of debentures issued by them or of 
interest 
2
[or return] thereon or both].] 
3
[CHAPTER VI 
Property and funds of societies] 
34. Restrictions on loans .– (1) Except with the general or special sanction of the 
Registrar 
4
[and subject to such terms and condit ions as he may impose] a society shall not 
make a loan to any person other than a member. 
(2) Save with the sanction of the Registrar, a society with unlimited liability shall 
not lend money on the security of movable property. 
(3) 
5
[The 
6
[Government]] may, by general or special order, prohibit or restrict the 
lending of money on mortgage of immovable property by any society or class of societies. 
7
[(4) Where the Registrar has accorded sanction to a financing bank under sub -
section (1) to make loans to non -members, a society which is a member of such financing 
bank may, subject to the terms of the sanction and such other terms and conditions as the 
Registrar may impose, act as an agent of the financing bank and as such agent carry out, on 
or without the payment of any commission, all or any transactions connected with any loan s 
made or to be made by the financing bank]. 
8
[34-A. Prohibition on issuance of bearer shares, warrants.– No society shall allot, issue, 
sell, transfer or assign any bearer shares, beare r share warrants or any other equity or debt 
security of a bearer nature, by whatever name called, and any allotment, issue, sale, 
transfer, assignment or other disposition of any bearer shares or bearer share warrants or 
any other equity or debt security of a bearer nature, shall be void.] 
35. Restrictions on borrowing 
9
[and donations].– A society shall receive deposits 
10
[, 
donations, grants] and loans from persons who are not members only to such extent and 
under such conditions as may be prescribed by the rules or by the bye-laws of the society. 
36. Restrictions on other transactions with non -members.– Consumers‟, producers‟ 
and housing societies may to the extent permitted by their by -laws trade with persons who 
are not members, but the transactions of a  resource society with persons other than 
                                                           
1Substituted for the word s “interest on debentures issued by them” by the Bombay Co-operative Societies (Sind Amendment) 
Act, 1935 (Bombay Act XXII of 1935), s. 2. 
2Inserted by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), published  in the Punjab Gazette 
(Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(5)(ii). 
3Substituted for the words “property and funds of Societies” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) 
Ordinance, 1955 (Sind Ordinance V of  1955), s. 7, Schedule III , Part IV,  it came into force with effect from April 24, 1947. 
Earlier the words and figures “Chapter VI-Property and funds of societies” were substituted for the words “Property and funds of 
societies” by Bombay Co-operative Societies (Sind Amendment) Act, 1936 (Sind Act No. VIII of 1936), s. 2. 
4Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1947 (Sind Act XX of 1947), s. 5(a).  
5Substituted for the word “Government” by the Government of India (Adaptation of In dian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
6Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 202 0 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
7Added by the Bombay Co-operative Societies (Sind Amendment) Act, 1947 (Sind Act XX of 1947), s. 5(b). 
8Inserted by the Co-operative Societies (Second Amendment) Act 2020, published in the Punjab Gazette (Extraordinary), dated 
September 10, 2020, pp. 1053-1056, s. 9. 
9Added by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 17(a). 
10Inserted by the Act ibid., s.17(b). 
members except as provided under section 34 or 35 shall be subject to such prohibitions 
and restrictions, if any, as 
1
[the 
2
[Government]] may by rules prescribe. 
37. Investment of funds.– A society may invest or deposit its funds– 
(a) in the Government Saving Bank; or 
(b) in any of the securities specified in section 20 of the 
3
[* * *] Trusts Act, 1882
4
; 
or 
(c) in the shares or on the security of any other society, provided that no such 
investment shall be made in t he shares of any society other than one with 
limited liability; or 
(d) with any bank or person carrying on the business of banking approved for this 
purpose by the Registrar; or 
(e) in any other mode permitted by the rules. 
5
[38. Restriction on dividend.– (1) No society, other than housing, banking or producers‟ 
society, shall pay a dividend to its members at a rate exceeding ten percent of its net profits. 
 (2) A housing, banking or producers‟ society shall pay a dividend to its members 
at a rate not exceeding twenty percent of its net profits.] 
39. Reserve fund .– (1) Every society which does or can derive a profit from its 
transactions shall maintain a reserve fund. 
 (2) In the case of a resource or producers‟ society at least 1/4 th of the net profits 
of the society each year shall be carried to the reserve fund and in the case of any other 
society at least 1/10th of the net profits of the society each year shall be carried to the reserve 
fund, and such reserve fund may be used in the business of the societ y or may be invested, 
subject to the provisions of section 37, as 
6
[the 
7
[Government]] may by general or special 
order direct, or may, with the previous sanction of 
8
[the 
9
[Government]] be used in part for 
some public purpose likely to promote the objects of this Act or for some purposes of 
provincial or local interest. 
40. Restriction on distribution of profits .– Subject to the provisions of section 38 the 
balance of the profits of a society after making the prescribed provisions for the reserve fund 
may, together with any available profits of past years be distributed among its members, and 
in the case of consumers‟ and producers‟ societies, also among persons who are not 
                                                           
1Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
2Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
3The word “Indian” omitted by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance 
V of 1955), s. 4; it came into force with effect from 30 May 1951. 
4II of 1882. 
5Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 18. 
6Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
7Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
8Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
9Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
members, to the extent and under the conditions prescribed by the rules or by the by-laws of 
such societies, provided that:– 
(a) in the case of a resource society on a basis of unlimited liability in which the 
members do not hold shares, no distribution of profits shall be made without 
the general or special order of 
1
[the 
2
[Government]] in this behalf; and 
(b) in the case of a resource society on a basis of unlimited liability in which the 
members hold shares, no such distribution of profits shall be made until 10 
years from the date of registration of the society have elapsed. 
41. Provident fund.– Any society may establish a provident fund for its members out of 
contributions from such members in accordance with by -laws made by the society in this 
behalf and may contribute to such provident fund from its net profits, after the prescribed 
payments have been made to the reserve fund, provided that such provident fund shall not 
be used in the business of the society but shall be invested under the provisions of section 
37; and provided further, that no part of such provident fund shall be cons idered as an asset 
of the society. 
42. Contribution to charitable purpose.– With the approval of the 
3
[Registrar] and after 
the payments prescribed by sub -section (2) of section 39 have been made to the reserve 
fund, any society may– 
(a) set aside a sum not exceeding 20 per cent of its net profits, and 
(b) utilize from time to time the whole of such sum in contributing to any public or 
co-operative purpose, or to a charitable purpose as defined in section 2 of the 
Charitable Endowments Act, 1890
4
. 
5
[CHAPTER VII 
Inspection of affairs] 
43. Inquiry by Registrar .– (1) The Registrar may of his own motion by himself or by a 
person duly authorised by him in writing in this behalf hold an inquiry into the constitution, 
working and financial condition of a society. 
 (2) The Registrar shall hold such an inquiry as is contemplated in sub -section (1) 
of this section– 
(a) on the requisition of a society, duly authorised by rules made in this behalf to 
make such requisition, in respect of one of its members, such member be ing 
itself a society, 
(b) on the application of a majority of the Committee of the society, 
(c) on the application of 1/3rd of the members of the society. 
                                                           
1Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp.75-344, Article 3 read with Schedule III (Bombay Acts). 
2Substituted for the words “Pr ovincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
3Substituted for the words “Bombay Central Co -operative Institute” by the  Bombay Co-operative Societies ( Sind Third 
Amendment) Act, 1940 (Sind Act XVI of 1940), s. 2. 
4VI of 1890. 
5Substituted for the words “Inspection of Affairs” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 
1955 (Sind Ordinance V of 1955), s. 7, Schedule III, Part IV, it came into force with effect from April 24, 1947. Earlier the words 
and figures “Chapter VII-Inspection of affairs” were substituted for the words “Inspection of affairs” by Bombay 8 of 1936, s. 2. 
  (3) All officers and members of the society whose affairs are investigated shall 
furnish such infor mation in their possession in regard to the affairs of the society as the 
Registrar or the person authorized by the Registrar may require. 
  (4) The result of any inquiry under this section shall be communicated to the 
society whose affairs have been investigated. 
44. Inspection of books of indebted society .– (1) The Registrar may, on the 
application of a creditor of a society inspect or direct some person authorized by him by 
order in writing in this behalf to inspect the books of the society: 
Provided that– 
(a) the applicant satisfies the Registrar that the debt is a sum then due, and that 
he has demanded payment thereof and has not received satisfaction within a 
reasonable time; and  
(b) the applicant deposits with the Registrar such sum as security for t he costs of 
the proposed inspection as the Registrar may require. 
  (2) The Registrar shall communicate the result of any such inspection to the 
creditor. 
1
[
2
[44-A. Inspection of books and properties .– The Registrar, or any of his 
authorized representative, shall have access and right to inspect the books, accounts, cash, 
documents, properties and securities of a society and every employee, past or present, of 
the society shall produce the same and furnish such information with regard to the 
transactions and working of the society as the person making such inspection may require.]] 
3
[44B.   Power of Registrar to exercise powers under section 50A in the course of 
an inquiry or inspection .– Where, in the course of any inquiry under section 43 or an 
inspection under section 44 or section 44 A it appears to the Registrar that there exists any 
such ground as is specified in section 50A, he may, of his own motion or on the application of 
the person authorised by him under section 43 or section 44 or sec tion 44A, exercise the 
powers specified in section 50A]. 
4
[44-C.  Power to remove officers .– (1) An officer of a Society, by whatever name 
called may be removed by the Registrar, if, on an enquiry, he is satisfied that the said 
officer– 
(i) acts in a manner prejudicial  to the interest of the society or its 
members; or 
(ii) has incurred any of the disqualifications or has ceased to possess any 
of the qualifications for being an officer provided by the Act, rules or 
bye-laws; or 
(iii) has committed an act in respect of wh ich the Registrar is empowered 
to take action under section 50-A. 
                                                           
1Inserted by the Bombay Co-operative Societies ( Sind Amendment) Act, 1943 (Sind Act XVI of 1943), published in the Sind 
Government Gazette, dated April 15, 1943, s. 9.  
2Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 19. 
3Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 9. 
4Added sections 44-C, 44-D and 44-E by the Cooperative Societies (Amendment) Act, 1992 (I of 1992), published in the Punjab 
Gazette (Extraordinary), dated June 4, 1992, s. 5. 
  (2) An order under sub -section (1) shall not be passed without giving to the 
concerned officer a reasonable opportunity of being heard. 
  (3) On being removed, the officer shall not perfor m any functions as such in 
relation to the society. 
  (4) An officer aggrieved by an order under sub-section (1) may, within a period of 
seven days from the date of the order of his removal, prefer an appeal to such Appellate 
Authority as may be constituted by the Government and the decision of the said Authority shall 
be final: 
  Provided that the provisions of this section shall not apply to the Punjab Provincial 
Cooperative Bank Ltd. 
1
[
2
[(5) The Registrar may suspend, for a period not exceeding three mon ths, a 
member of the managing committee of a society or any officer or official of the society 
against whom an inquiry is pending under this Act or there are reasons to believe that any 
such member, officer or official has committed any irregularity, illeg ality, breach of trust or 
act prejudicial to the interests of the society.]] 
44-D.  Power of Registrar to give directions .– (1) Where the Registrar is satisfied that in 
the public interest or to prevent the affairs of any society from being conducted in a manner 
detrimental to the interest of its members or depositors or the society or to secure the proper 
management of any society generally, it is necessary to issue directions to the societies 
generally or to any society in particular, it may issue necessa ry directions and the societies 
or as the case may be the society shall be bound to comply with such directions. 
  (2) The Registrar may on a representation made to him or on his own motion 
modify or cancel any direction issued under sub-section (1) and in so modifying or cancelling 
any direction impose such conditions as he may think fit subject to which the modification or 
cancellation shall have effect. 
44-E.  Special measures .– (1) If it appears to the Registrar that in the interest of the 
members of a society or its depositors , it is necessary that the moneys received and other 
assets of the Society, whether held in the name of that society or any other person, are 
protected and preserved, the Registrar or any other person authorised by him, may without  
prejudice to any other action or proceedings which may be taken against the society under 
any law for the time being in force- 
(i) enter and search any premises and seize books of account or other 
documents or records; 
(ii) take in his custody all moneys,  cash securities, title deeds, properties, 
whether movable or immovable, belonging to such society including those 
being held on behalf of or in the name of any officer, employee or agent of the 
society, beneficiary or transferee of such Society or other p erson or their 
dependents; 
(iii) direct any bank, financial institution or person to freeze all moneys deposited 
with it or him on behalf of the society or of any officer, employee, agent, 
beneficiary or transferee of such society; 
(iv) take all necessary steps and measures for identifying assets and property of 
the society and for realization, protection and preservation thereof; 
                                                           
1Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 20. 
2Substituted by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 13. 
(v) restrain any society or officer, employee, agent, beneficiary or transferee of 
such society or any person deriving or claiming title through any of them from 
alienating, transferring, selling, assigning, disposing of or parting with 
possession of any property  movable or immovable  or deriving any benefit, 
rent or income therefrom; 
(vi) make such order for realization, protection  and preservation of deposits of 
money and other assets and property of the society as he may deem fit. 
  (2) The order passed under sub -section (1) may at any time be withdrawn and 
shall not remain in force for more than one year.] 
1
[44-F. Grievance redressal.– (1) A member or a society can approach the Registrar for 
redressal of grievances, not covered under section 54, by filing an application.  
(2) The Registrar may issue notice to the parties, and after providing an opportunity of 
hearing, redress the grievance through a written order.  
(3) Any party aggrieved by an order of the Registrar may file an appeal in the manner as 
provided under section 64 of this Act, before the Secretary Cooperatives within two months 
of the date of communication of the order.] 
45.  Costs of inquiry .– Where an inquiry is held under section 43 or an inspection is 
made under section 44 the Registrar may apportion the costs, or such part of the costs, as 
he may think right, between the society, the members or creditors demanding  the inquiry or 
inspection, the officers or former officers, and the members  or past members of the society 
2
[Costs may also be awarded by the Registrar to the financing bank in the case of inspection 
under section 44 A of the books of any society other tha n an Agricultural Credit Society the 
liability of which is unlimited]: 
  Provided that– 
(a) no order of apportionment 
3
[or award] of the costs shall be made under this 
section unless the society or persons liable to pay the costs thereunder has or 
have been heard or has or have had a reasonable opportunity of being heard; 
(b) the Registrar shall state in writing under his own hand the grounds on which 
the costs are apportioned 
4
[or awarded]. 
5
[Explanation.– For the purposes of this section an Agricultural C redit Society means a 
resource society of which the primary object is the creation of funds to be lent to its members 
and of which a majority of the members are agriculturists and of which no member is a 
registered society and the liability of which is unlimited.] collaborate  
 
6
[46. Recovery of costs .– Any sum awarded by way of costs under section 45, may be 
recovered, on the application of the Registrar, by a Magistrate having jurisdiction in the place 
where the person from whom the money is claimable act ually and voluntarily resides, or 
carries on business, or by an officer authorized in this behalf by the Government, by distress 
                                                           
1Inserted by the Co-operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punja b Gazette (Extraordinary), 
dated August 11, 2020, pp. 585-588, s. 14. 
2Added by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 10(i). 
3Inserted by the Act ibid., s.10 (ii). 
4Ibid. 
5Ibid. 
6Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 21. 
and sale of any movable property belonging to such person, within the limits of the 
jurisdiction of such Magistrate or any such officer.] 
1
[CHAPTER VIII 
Liquidation and Arbitration] 
47. Winding up.– If the Registrar, after an inquiry has been held  under section 43 or 
after an inspection has been made under section 44  
2
[or section 44 -A] or on receipt of an 
application made by  
3
[two third] of the members of a society present at a special general 
meeting, called for the purpose or of his own motion, in the case of a society that has not 
commenced working, or has ceased working 
4
[***], is of opinion that the society ought to be 
wound up he may issue an order directing it to be wound up, and the when necessary, may 
appoint a liquidator for the purpose and fix his remuneration. 
 
5
[48. Society may be wound up if membership is reduced .– (1) The Registrar may, by 
order in writing, direct a s ociety to be wound up, if at any time it is proved to his satisfaction 
that the membership of the society has been reduced to less than the requisite minimum 
number of members and the society, despite a reasonable opportunity, has failed to raise 
the number of members to be in accordance with the provisions of this Act. 
 (2) All existing societies shall, within two years of the commencement of this Act, 
raise their membership to be in accordance with the provisions of this Act, failing which the 
Registrar may wind up such a society after affording it an opportunity of being heard.] 
6
[48-A. Winding up of housing society.– If a housing society fails to complete development 
and allotment of plots in accordance with its development schedule, the Registrar may or der 
the winding up of the society after affording it an opportunity of hearing.] 
49. Effect of cancellation of registration .– When the affairs of a society for which a 
liquidator has been appointed under section 47 have been wound up, or, where no liquidator 
has been appointed, after two months from the date of an order under section 47, or after 
confirmation of such order in appeal, the Registrar shall make an order cancelling the 
registration of the society, and the society shall be deemed to be dissolved  from the date of 
such order. 
7
[49-A. Records of cancelled societies .– (1) The Registrar shall keep all the records of a 
society along with proceeding of liquidation completed whose registration has been 
cancelled for a period not less than five years.  
 (2) The Secretary of a society whose registration has been cancelled shall also 
keep the record of the society for a period not less than five years: 
                                                           
1Substituted for the words “Liquidation and Arbitration” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) 
Ordinance, 1955 (Si nd Ordinance V of 1955), s.  7, Schedule III , Part IV,  it came into force with effect from  April 24, 1947. 
Earlier the words and figures “Chapter VIII -Liquidation and Arbitration” were substituted for the words “Liquidation and 
Arbitration” by the Bombay Co-operative Societies (Sind Amendment) Act, 1936 (Sind Act No. VIII of 1936), s. 2. 
2Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 11. 
3Substituted for the words “three  fourths” by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the 
Punjab Gazette (Extraordinary), dated July 1, 2006, pp. 3-10, s. 22(a). 
4Omitted the words “or possesses shares or members deposits not exceeding Rs.500/-” by the Act ibid., s. 22(b). 
5Substituted by the Act ibid., s.23. 
6Inserted by the Act ibid., s.24. 
7Inserted by the Co-operative Societies (Second Amendment) Act 2020, published in the Punjab Gazette (Extraordinary), dated 
September 10, 2020, pp. 1053-1056, s. 10. 
 provided that the society shall dispose of its record after five years after the approval of 
the Registrar Cooperative Societies.] 
50.  Power of a liquidator .– A liquidator appointed under section 47 shall have power 
with the sanction of the Registrar to do all or any of the following things:– 
(a) pay any class or classes of creditors in full; 
(b) make any com promise or arrangement with creditors or persons claiming to 
be creditors or having or alleging themselves to have any claim, present or 
future, whereby the society may be rendered liable; 
(c) to compromise all calls or liabilities to calls and debts, and liabilities capable 
of resulting in debts, and all claims, present or future, certain or contingent, 
subsisting or supposed to subsist between the society and a contributory or 
alleged contributory or other debtor or person apprehending liability to the 
society and all questions in any way relating to or affecting the assets or the 
winding up of the society on such terms as may be agreed and take any 
security for the discharge of any such call, liability, debt, or claim and give a 
complete discharge in respect thereof; 
(d) from time to time to determine the contribution to be made or remaining to be 
made by the members or past members or by the estates or nominees, heirs 
or legal representatives of deceased members or by any officer to the assets 
of the soci ety, such contribution including debts due from such members or 
persons; 
(e) to institute and defend suits and other legal proceedings on behalf of the 
society in the name of his office; 
(f) to issue requisitions under section 59 upon the Collector for the  recovery as 
arrears of land revenue of any sum ordered by him to be recovered as dues 
from members, or as a contribution to the assets of the society or to the cost 
of liquidation; 
(g) to get disputes referred to arbitration; 
(h) to investigate all claims  against the society and subject to the provisions of 
this Act as to decide questions of priority arising out of such claims, and to 
pay rateably according to the amount of such debts, the surplus if any being 
applied in payment of interest 
1
[or return] from the date of liquidation at a rate 
to be fixed by the Registrar and not exceeding the contract rate; 
(i) to determine by what persons and in what proportion the cost of the 
liquidation shall be borne; 
(j) to give such directions in regard to the collection and distribution of the assets 
of the society as may appear to him to be necessary for winding up the affairs 
of the society; 
(k) to fix the time or times within which creditors shall prove their debts and 
claims or be included for the benefit of any di stribution made before those 
debts or claims are proved; 
(l) to carry on the business of the society so far as may be necessary for the 
beneficial winding up of the same: 
                                                           
1Inserted by the  Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), published in the Punjab Gazette 
(Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(6). 
 Provided that no liquidator shall determine the contribution, debt or dues to be 
recovered from a past member or the representative of a deceased member 
unless opportunity has been given to such past member or to such 
representative to answer the claim. 
1
[Provided further that all debts due to 
2
[Government] shall have priority over all debts 
which are not secured by a mortgage, charge or lien on the property of the society or 
any part thereof but nothing herein contained shall affect the provisions of sections 
137 and 138 of the 
3
[Sind] Land Revenue Code, 1879
4
 
5
[, or any other law relatin g to 
land revenue in force in the area].] 
50-A. Power of Registrar to assess damage against delinquent promoters, etc .– 
6
[(1) 
Where, in the course of winding up of a society, it appears that any person who has taken 
part in the organization or management o f the society or any past or present Chairman, 
Secretary, member of managing committee or any officer of the society has misapplied or 
retained or become liable or accountable for any money or property of the society or has 
been guilty of misfeasance or breach of trust in relation to the society or, where the society is 
acting under subsection (4) of section 34 as agent of the financing bank, has made any 
payment contrary to the instructions of the financing bank, the Registrar may himself or on 
the recommendation of the liquidators, auditor, enquiry officer in case of violation of section 
44-D or any of the creditor or contributory of such society, examine into the conduct of such 
person and make an order requiring him to repay or restore the money or prope rty or any 
part thereof respectively with interest at such rate as the Registrar thinks just, or to 
contribute such sum to the assets of the society or of the financing bank by way of 
compensation in regard to the misapplication, retainer misfeasance or br each of trust as the 
Registrar thinks just.] 
  (2) This section shall apply notwithstanding that the act is one for which the 
offender may be criminally responsible. 
51.  Bar of suit in winding up and dissolution matters .– Save in so far as is expressly 
provided in this Act no civil court shall take cognizance of any matter  
7
[arising out of any 
proceedings under Chapter VIII -A or] connected with the winding up or dissolution of a 
society under this Act and when a winding up order has been made no suit or ot her legal 
proceeding shall lie or be proceeded with against the society except by leave of the 
Registrar and subject to such terms as he may impose. 
52.  Disposal of surplus assets .– After all the liabilities including the paid -up share 
capital of a cancel led society have been met, the surplus assets shall not be divided 
amongst its members but they shall be devoted to any object or objects described in the by -
laws of the society and when no object is so described to any object of public utility 
determined by the general meeting of the society and approved by the Registrar or they may 
                                                           
1Added by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 12. 
2Substituted for the words “the Crown” by the West Pakistan Laws (Adaptation) Order, 1964, published in the Gazette of West 
Pakistan (Extraordinary), dated 3 June 1964, pp. 1805-1849, s. 2 read with the Schedule, Part IV; it came into force  on 8 June 
1962. 
3Substituted for the word “Bombay” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (S ind 
Ordinance V of 1955), s. 3(i) (with effect from May 30, 1951). 
4Sind V of 1879. 
5Added by the Sind Co -operative Societ ies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), published in the 
Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 9. 
6Substituted by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in th e Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 15. 
7Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1947 (Sind Act XX of 1947), s. 7. 
in consultation with them either be assigned by the Registrar in whole or in part to any or all 
of the following:– 
(a) an object of public utility of local or communal interest,  
(b) a charitable purpose as defined in section 2 of the Charitable Endowments 
Act, 1890
1
. 
(c) the 
2
[
3
[* * *] Provincial Co -operative Institute], or may be placed on deposit 
with 
4
[the Provincial Co-operative Bank] until such time as a new society with 
similar conditions is registered when with the consent of the registrar such 
surplus may be credited to the reserve fund of such new society. 
53. Surplus assets of housing society.– Where the society directed to be wound up is 
a housing society, its assets, both movable and immovable, shall for the purposes of winding 
up or dissolution of the society jointly vest, subject to all rights and equities, in three persons 
of whom one shall be nominated by the Registrar, one shall be nominated by the said 
society in a general meeting specifically called for the purpose and one shall be nominated 
by the 
5
[ 
6
[* * *] Provincial Co -operative Institute]. Such persons shall, for the purpose of 
winding up or dissolution of the society be Joint Liquidators and shall have al l the powers of 
a liquidator under this Act. They may, with the sanction of the Registrar, continue the 
working of the society, or may, subject to his sanction and in consultation with the members 
of the society in a general meeting, reconstruct the societ y or may sell off the premises of 
the society to the best advantage of all interests concerned, and when all the liabilities of the 
society are met, may dispose of the surplus assets of the society, if any, as provided in 
section 52. 
54.  Arbitration.– 
7
[If any dispute touching the business of a society (other than a dispute 
regarding disciplinary action taken by the society or its committee against a paid servant of 
the society) arises– 
(a) between members or past members of the society or persons claiming  
through a member or past member, or 
(b) between members or past members or persons so claiming and any past or 
present officer, agent or servant of the society, or 
(c) between the society or its committee, and any past or present member of the 
society, or  
(d) between the society or its committee, and any past or present officer, agent or 
servant of the society, or a surety of such officer, agent or servant, whether 
such surety is or is not a member of the society, 
8
[or]. 
                                                           
1VI of 1890. 
2Substituted for the words “Bombay Central Co-operative Institu te” by the Bombay Co-operative Societies ( Sind Third 
Amendment) Act, 1940 (Sind Act XVI of 1940), s. 3. 
3Omitted t he word “Sind” by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), 
published in the Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 10. 
4Substituted for the words “a Central Co -operative Bank” by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 
(XL of 1984), published in the Punjab Gazette (Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(8). 
5Substituted for the words “Bombay Provincial Co -operative Institute” by the Bombay Cooperative Societies ( Sindh Third 
Amendment) Act, 1940 (Sind Act XVI of 1940). 
6Omitted t he word “Sind” by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), 
published in the Gazette of West Pakistan (Extraordinary) dated 30 April 1965, pp. 1987-1989, s. 10. 
7Substituted for the first paragraph by the Bombay Co-operative Societies (Sind Amendment) Act, 1944 (Sind Act VIII of 1944), 
s. 2. 
8Added by the Bombay Co-operative Societies (Sind Amendment) Act, 1947 (Sind Act XX of 1947), s. 8(a). 
1
[(e) between a financing bank aut horised under sub-section (1) of section 34 and 
a person who is not a member of a society], 
2
[or] 
3
[(f) between two societies.] 
it shall be referred to the Registrar for decision by himself or his nominee, or if either 
of the parties so desires, to arbitra tion of three arbitrators who shall be the Registrar or his 
nominee and two persons of whom one shall be nominated by each of the parties 
concerned.] 
A dispute shall include 
4
[the question whether a person is or was a member of a 
society and also] claims b y a society for debts or demands due to it from 
5
[a member, past 
member or non-member] or the heirs or assets of a past member 
6
[or non-member] whether 
such debts or demands be admitted or not: 
Provided that if the question at issue between a society and a  claimant, or between 
different claimants, is one involving complicated questions of law and fact, the Registrar 
may, if he thinks fit, suspend proceeding, in the matter until the question has been tried by a 
regular suit instituted by one of the parties or by the society. If no such suit is instituted within 
six months of the Registrar‟s order suspending proceedings, the Registrar shall take action 
as laid down in paragraph 1 of this section. 
 
7
[54-A. Registrar’s power to set aside the award and order the dispute to be referred 
back to arbitration .– 
8
[(1) In the case of any award made by the arbitrators under section 
54, the Registrar, if he is not one of such arbitrators,  may of his own motion or on the 
application of any of the parties to the award, by an  order in writing rec ording reasons 
therefor,– 
(a) modify or correct the award (i) where it appears that a part of the award is 
upon a matter not referred to arbitration and such part can be separated from 
the other part and does not affect the decision on  the matter referred; or (ii) 
where the award is imperfect in form or contains any obvious error which can 
be amended without affecting such decision; or (iii) where the award contains 
a clerical mistake or an error arising from an accidental slip or omission; or 
(b) remit the award or any matter referred to arbitration to the arbitrators for 
reconsideration– 
(i) where the award has left undetermined any of the matters referred to 
arbitration or where it determines any matter not referred to arbitration 
and such matter cannot be separated without affecting the 
determination of the matters referred, or 
(ii) where the award is so indefinite as to be incapable of execution, or 
                                                           
1Inserted by the Act ibid. 
2Inserted by the Co-operative Societies (Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette (Extraordinary), 
dated August 11, 2020, pp. 585-588, s. 16. 
3Added by the Act ibid. 
4Added by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 13 (ii). 
5Substituted for the words “a member or past member” by the Bombay Co-operative Societies ( Sind Amendment) Act, 1947 
(Sind Act XX of 1947), s. 8(b)(i). 
6Inserted by the Act ibid., s. 8(b)(ii). 
7Inserted by the Bombay Co-operative Societies ( Sind Amendment) Act, 1938 (Sind  Act X of 1938), publ ished in the Sind 
Government Gazette, dated June, 9, 1938, s. 2. 
8Substituted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 14(i). 
(c) set aside the award and order that the dispute shall be referred to arbitration 
in the manner provided in the said section: 
Provided that no order referred to in clauses (a) to (c) shall be made after the issue of 
a certificate under section 59 for the execution of the award: 
Provided further that no order under clause (c) shall be mad e unless the Registrar is 
of opinion that– 
(i) an objection to the legality of the award is apparent on the face of it, or 
(ii) the award has been vitiated in consequence of corruption or 
misconduct on the part of the arbitrators, or 
(iii) the award is in any way perverse.] 
  (2) In making an order under 
1
[clause (c) of] sub -section (1), the Registrar may 
direct that all or any of the arbitrators who made the award shall not act again as arbitrators 
for deciding the dispute. 
  (3) Where a dispute is referre d back to arbitration under 
2
[clause (c) of] sub -
section (1), the arbitrators shall make a fresh award within such time as may be fixed by the 
Registrar. If the arbitrators fail to make a fresh award within the time so fixed, the Registrar 
or his nominee shall decide the dispute.] 
55.  Attachment before award .– Where a dispute has been referred to the Registrar 
under section 54 or to arbitration under clause (g) of section 50, the Registrar or his nominee 
or the arbitrators, as the case may be, if satisfied on inquiry or otherwise, that a party to such 
arbitration with intent to delay or obstruct the execution of any award that may be made,– 
(a) is about to dispose of the whole or any part of his property, or 
(b) is about to remove the whole or any part of h is property from the jurisdiction 
of the Registrar, may unless adequate security is furnished direct the 
conditional attachment of the said property; and such attachment shall have 
the same effect as if made by a competent Civil Court. 
56.  Appeal against award of arbitrator .– Any party aggrieved by any decision of the 
Registrar‟s nominee made under section 54 
3
[or sub-section (3) of section 54 -A] or an order 
passed under section 55 by the Registrar‟s nominee or arbitrators may within one month of 
the date of the award or order appeal to the Registrar and the Registrar shall decide the 
appeal 
4
[* * *]. 
 
5
[57. Finality of awards in certain orders.– The award of arbitrators or a decision by the 
Registrar or his nominee under section 54 or section 54A or an ord er passed in appeal by 
the Registrar under section 56 shall, subject to the provision  of sections 64 and 64 -A, be 
final and conclusive and shall not be liable to be called in question in any civil or revenue 
court.] 
58.  Powers to enforce attendance .– Wherever in this Act it is provided that the 
Registrar or person duly authorized by general or special order in writing by the Registrar in 
                                                           
1Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 14(ii). 
2Ibid. 
3Inserted by the Bombay Co-operative Societies ( Sind Amendment) Act, 1938 ( Sind Act X of 1938),  published in the 
Government Gazette, dated June 9, 1938, s. 3. 
4Omitted the word “himself” by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 15. 
5Substituted by the Act ibid., s. 16. 
this behalf shall hold an inquiry under section 43 or shall make an inspection under section 
44 or shall wind up a socie ty or shall arbitrate, such Registrar, or person authorized, as the 
case may be, shall have the power to summon and enforce the attendance of witnesses 
including the parties interested or any of them and to compel them to give evidence, and to 
compel the production of documents by the same means and as far as possible in the same 
manner as is provided in the case of a civil court by the Code of Civil Procedure, 1908
1
. 
59.  Money how recovered .– (1) 
2
[Every order passed by a liquidator under section 50, 
or by the Registrar under section 50A, or by the Registrar or his nominee or arbitrators on 
disputes referred to him or them under clause (g) of section 50 or under section 54 or unde r 
sub-section (3) of section 54 A, every order passed in appeal, under section  56, every order 
passed by the 
3
[
4
[Secretary Cooperatives]] in appeal against orders under sections 50, 50 A, 
54 or sub-section (3) of section 54 A and every order passed under section 64 A shall, if not 
carried out, 
5
[* * *]]: 
6
[(a) on a certificate signed b y the Registrar or a liquidator, be deemed to be a 
decree of a civil court and shall be executed in the same manner as a decree 
of such court; or] 
7
[(b) be executed according to the law for the time being in force for the recovery 
of arrears of land revenu e; provided that any application for recovery of the 
amount in such a manner shall be made to the Collector and shall be 
accompanied by a certificate signed by the Registrar or by an officer 
subordinate to the Registrar to whom the said power has been dele gated by 
the Registrar.] 
8
[(2) Powers of Registrar to recover certain sums by attachment and sale of 
property.– The Registrar or any person subordinate to him empowered by the Registrar in 
this behalf may,  subject to such rules as may be prescribed by the  
9
[Government] and 
without prejudice to any other mode of recovery provided by or under this Act, recover by 
exercising powers of the Collector under the  
10
[Sind] Land Revenue Code, 1879
11
, 
12
[or the 
relevant provisions of any other law relating to land revenu e in force in the area], and the 
Rules thereunder– 
                                                           
1V of 1908. 
2Substituted for the words beginning with “Every order passed by a liquidator” and endin g with “be executed” by the Bombay  
Co-operative Societies (Sind Amendment) Act, 1940 (Sind Act V of 1940),  published in the Sind Government Gazette, dated 
March 7, 1940, s. 4 which came into force with effect from December 4, 1925. 
3Substituted for the words “Provincial Government” by the Co -operative Societies  (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
4Substituted for the word “Government” by the Act ibid., s. 17(a). 
5Omitted the words “be executed” by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), 
s. 17(i). 
6Substituted by the Act ibid., s. 17(ii). 
7Substituted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 25(1). 
8Inserted sub-sections (2) and (3) by the Bombay Cooperative Societies (Sind Amendment) Act, 1950 (Sind Act XXVI of 1950), 
s. 2. The original sub -section (2) was repealed by the Bombay Co-operative Societies (Sind Amendment) Act, 1935 (Sind Act 
XXII of 1935), s. 3. 
9Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
10Substituted for the word “Bombay” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind 
Ordinance V of 1955), s. 3(i); it came into force with effect from 30 May 1951. 
11Sind V of 1879. 
12Inserted by the Sind Co -operative Societies (We st Pakistan Amendment) Ordinance, 1965 (VII of 1965), published in the 
Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 6. 
(a) any amount due under a decree or order of a Civil Court, a decision or an 
award of the Registrar, obtained by a registered society including a financing 
bank or liquidator; or 
(b) any sum awarded by way of costs under sections 44-B and 45; or 
(c) damages assessed in sections 22-A and 50-A; or 
(d) penalty provided for in sections 61 and 62; or 
(e) sums due to 
1
[Government] under section 65, together with the interest, 
2
[or 
return], if any, due on such am ount or sum and the cost of process, by the 
attachment and sale or by the sale without attachment of property of the 
person against whom such decree, decision, award or order has been 
obtained or passed. 
(3) Registrar or person empowered by him to be a Civ il Court for certain 
purposes.– The Registrar or any person empowered by him in that behalf shall be deemed 
when exercising any powers under this Act for the recovery of any amount by the attachment 
and sale or by the sale without attachment of any propert y, or when passing any orders on 
any application made to him for such recovery or to take some step -in-aid of such recovery 
to be a Civil Court for the purposes of Article 182 of the First Schedule to the Limitation Act, 
1908
3.] 
 
4
[(4) The 
5
[Secretary Cooperatives] or the Registrar may, on an application, direct 
that an order or award, passed under this Act, shall be executed in accordance with the 
provisions of the Civil Procedure Code, 1908 (Act V of 1908) or any other law for the time 
being in force. 
(5) The Registrar or any other officer subordinate to him, duly authorized by the 
Government to execute the orders or the awards, shall be deemed to be a civil court and shall 
have the powers vested in an executing court under the Civil Procedure Code 1908 (Act V of 
1908).] 
 
6
[59A. Transfer of property which cannot be sold .– (1) When in execution of an order 
sought to be executed under section 59, any property cannot be sold for want of buyers, if 
such property is in the occupancy of the defaulter or of some p erson on his behalf or of 
some person claiming under a title created by the defaulter subsequently to the issue of the 
certificate of the Registrar, Liquidator or Assistant Registrar under clause (a) or (b) of sub -
section (1), the Court or the Collector, as the case may be, may, with the previous consent of 
the Registrar, direct that the said property or any portion thereof shall be transferred to the 
society which has applied for the execution of the said order and that the said property or the 
portion shall be delivered to the society in the prescribed manner. 
  (2) Subject to such rules as may be made in this behalf and to any right, 
encumbrances, charges or equities lawfully subsisting in favour of any other person, such 
                                                           
1Substituted for the words “the Crown” by the West Pakistan Laws (Adaptation) Order, 1964, published in the Gazette of West 
Pakistan (Extraordinary), dated June 3, 1964, pp. 1805-1849, s. 2 read with the Schedule, Part IV, it came into force on June 8, 
1962. 
2Inserted by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), published in the Punjab Gazette 
(Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(9). 
3IX of 1908. 
4Inserted by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab  Gazette (Extraordinary), 
dated July 1, 2006, pp. 3-10, s. 25(2). 
5Substituted for the word “Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in the 
Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 17(b). 
6Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1935 (Sind Act XXII of 1935), s. 4. 
property or portion thereof shall be held by the said society on such terms and conditions as 
may be agreed upon between the Court or the Collector, as the case may be, and the said 
society: 
  Provided that any private transfer or delivery of or encumbrance or charge on the 
property made or created after the issue of the certificate of the Registrar, Liquidator or 
Assistant Registrar, as the case may be, under section 59 shall be null and void as against 
the said society]. 
1
[CHAPTER VIII-A 
Distraint] 
59-B.  Definitions.– In this Chapter, u nless there is anything repugnant in the subject or 
context– 
(a) “Collector” includes an officer appointed by the 
2
[Government] to discharge 
any of the functions of the Collector under this Chapter; 
(b) “defaulter” means a person (including his legal repre sentatives if he is dead) 
from whom any such debt or outstanding demand as is referred to in section 
59C is recoverable; 
(c) words and expressions used herein and not hereinbefore defined shall have 
the meanings respectively assigned to them by the 
3
[Sind] Land Revenue 
Code, 1879
4
 
5
[or any other law relating to land revenue in force in the area]. 
59C.  Cases in which application for distraint may be made .– Where any debt or 
outstanding demand is due to a society from any member or past member or is due to a  
society, which is authorised by the Registrar under sub -section (1) of section 34 to make 
loans to non-members, from any person who is not a member of a society, the society may, 
in addition to any other remedy to which it is entitled by law, present an a pplication to the 
Registrar requesting him to recover the debt or outstanding demand by distraining, while in 
the possession of the defaulter , any crop or other produce belonging to him, whether the 
same is growing or is ungathered or has been reaped or gathered. 
59D.  Form of application .– (1) Every application under the last foregoing section shall 
specify– 
(a) particulars of the land on which the crop or produce is or has been grown; 
(b) the name of the defaulter; 
(c) a detailed account of the debts and outstanding demands due to the society; 
(d) the nature and approximate value of the crop or produce to be distrained; 
(e) if the crop or produce is growing or is ungathered, the time at which it is likely 
to be fit to be reaped or gathered; and  
                                                           
1Chapter VIII-A (sections 59-B to 59-U), inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1947 (Sind Act 
XX of 1947), s. 9. 
2Substituted for the words “Provincial Government” by th e Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
3Substituted for the word “Bombay” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Or dinance, 1955 (Sind 
Ordinance V of 1955), s. 3(i); it came into force with effect from 30 May 1951. 
4Sind V of 1879. 
5Added by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), published in the 
Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 9. 
(f) if the crop or produce has been reaped or gathered, the place where it is kept 
or such other particulars as may suffice for its identification. 
  (2) The application shall be signed and verified in the manner prescribed by the 
Code of Civil Procedure, 1908, for the signing and verification of plaints. 
59E.  Procedure on receipt of application .– (1) A society shall at the time of making an 
application under section 59 C, file before the Registrar such documentary evidence, if any, 
as it may consider necessary for t he purpose of proving the statements made in the 
application. 
 (2) The Registrar may, after taking such evidence as he thinks fit, admit the 
application or reject it: 
 Provided that the person against whom the application is made shall be given a 
reasonable opportunity of being heard. 
 (3) Where the Registrar does not at once admit or reject the application, he may 
make an order prohibiting the removal of the crop or other produce specified in the 
application, pending a final decision on the application. 
 (4) Where an order for distraining any crop or produce is made under this section 
a considerable time before the crop or produce is likely to be fit to be reaped or gathered, the 
Registrar may suspend the execution of the order for such time as he thinks fi t and may 
make a further order prohibiting the removal of such crop or produce pending the execution 
of the order of distraint. 
 (5) An order under sub -section (3) or sub -section (4) shall be served and 
published in such manner as may be prescribed by rules. 
 (6) Any person who shall disobey any order made under sub -section (4) 
prohibiting the removal of any crop or produce pending the execution of the order of distraint, 
after the same has been published or served upon him, or who shall, within the meaning  of 
the 
1
[Pakistan] Penal Code, abet the disobedience of any such order, shall be liable, on 
conviction after a summary enquiry by the Collector, to a fine not exceeding double the 
amount due to the society for the recovery of which it is proposed to make the distraint. Such 
fine shall be recovered as an arrear of land revenue. 
59F.  Execution of order for distraint .– (1) If the application is admitted under the last 
foregoing section and an order for distraining any crop or produce is made, the Registrar 
shall send to the Collector for execution a copy of the order together with such particulars as 
may be prescribed by rules. 
 (2) Upon receipt of a copy of the order referred to in sub -section (1) the Collector 
shall depute an officer to distrain the crop or  produce specified therein or such portion 
thereof as the Collector thinks fit and the officer so deputed shall at once proceed to the 
place where the crop or produce is or is kept, and distrain the same by taking charge of it 
himself or by placing it in t he charge of some other person appointed by him in this behalf. 
The distraining officer shall publish a notification of the distraint in the manner prescribed by 
rules. 
 (3) Any crop or produce which from its nature does not admit of being stored 
shall not be distrained at any time less than twenty days before the time at which it is likely to 
be fit to be reaped or gathered. 
                                                           
1Substituted for the word “Indian” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind 
Ordinance V of 1955), s. 4; it came into force with effect from 30 May 1951. 
59G. Service of notice of demand and the grounds of distraint .– (1) The distraining 
officer shall, at the time of making the distraint serve on the defaulter– 
(a) a notice of demand for the amount due and the costs incurred in making the 
distraint (herein after called the demand amount); and  
(b) a statement of the grounds on which the distraint is made. 
  (2) The notice of demand and t he statement shall be served in such manner as 
may be prescribed by rules. 
59H.  Right to reap, etc., produce .– (1) Subject to such conditions as the Collector may 
impose in this behalf either in the order of distraint or in any subsequent order, the defau lter 
may tend, reap, gather or store the crop or produce and do any other act necessary for 
maturing or preserving it; and if the defaulter fails to do all or any of such acts, the distraining 
officer may appoint a person to do all or any of them, and the costs incurred by the 
distraining officer for this purpose shall be recoverable from the defaulter as if they were 
included in the costs of distraint. 
 (2) The crop or produce reaped or gathered by the defaulter shall remain in 
charge of the distraining officer or some other person appointed by him in this behalf. 
59I. Sale proclamation to be issued unless demand is satisfied .– (1) Unless the 
demand amount is immediately paid, the distraining officer shall issue a proclamation in 
1
[the 
local language of the  area] of the intended sale specifying the particulars of the property 
distrained and the demand amount for which it is distrained and shall further notify that he 
will, at a place and on a day specified, not being less than three or more than seven days 
from the date of the distraint, sell the distrained property by public auction: 
 Provided that when the crop or other produce distrained is capable of being  stored 
but has not been stored  the day of the sale shall be so fixed as to allow of its being stored  
before the sale. 
 (2) Such proclamation shall be made by beat of drum in the village in which the 
distrained property was seized and a copy of the proclamation shall be affixed in some 
public place in the village and in the Mukhtiarkar‟s office. 
59J. Place of sale.– The sale shall be held– 
(a) in the case of a growing crop , on or near the land on which such crop has 
been grown, or 
(b) if the crop or produce has been reaped or gathered, at or near the place 
where it is kept: 
Provided that the distraining of ficer may direct the sale to be held at the nearest 
place of public resort, if he is of opinion that the crop or produce is thereby likely to sell to 
greater advantage. 
59K. Provisions relating to growing crops .– (1) Where the crop is growing one and 
from its nature admits of being stored, the sale shall not be held until the crop is reaped or 
gathered and is ready for storing. 
 (2) Where the crop from its nature does not admit of being stored, it may be sold 
before it is reaped or gathered, and the purchas er shall be entitled to enter on the land by 
himself or by any other person appointed by him in this behalf and to do all acts necessary 
for the purpose of tending, reaping or gathering the crop. 
                                                           
1Substituted for the word “Sindhi” by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 
1965), published in the Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 11. 
59L. Manner of sale .– The distrained property shall be sold by public auction in one or 
more lots as the officer holding the sale may determine; and if the demand amount is 
realised by the sale of a portion of the property, the order of distraint shall not be executed 
with respect to the remainder. 
59M. Postponement of sale .– If, on the distrained property being put up for sale, a fair 
price, in the opinion of the officer holding the sale, is not offered for it, and if the owner of the 
property or a person authorised to act on his behalf applies to have the sale pos tponed to 
the next day, the sale shall be postponed until that date and shall then be completed 
whatever may be the price offered for the property. 
59N. Payment of purchase money.– (1) The price of each lot shall be paid at the time of 
sale or as soon ther eafter as the officer holding the sale directs, and in default of such 
payment the property shall forthwith be resold. 
 (2) Any deficiency of price which may happen on a resale by reason of the 
purchaser‟s default, and all expenses attending such resale, s hall be certified to the 
Collector by the officer holding the sale, and shall, at the instance of the society or the 
defaulter, be recoverable from the defaulting purchaser as if they were an arrear of land 
revenue. 
59O. Certificate be given to the purchas er.– When the purchase money has been paid 
in full the officer holding the sale shall grant a receipt for the same and the sale shall become 
absolute as against all persons whomsoever. 
59P. Proceeds of sale how to be applied .– (1) When any property is sold  under this 
Chapter the proceeds of the sale shall be applied to defraying the costs of distraint and sale 
and to the payment of the amount for which the distraint was made and the surplus, if any, 
shall be paid to the person whose property has been sold. 
 (2) The costs of distraint and sale shall be estimated at such rates as may, from 
time to time, be sanctioned by the 
1
[Executive District Officer (Revenue) or any other officer 
authorized by the Government in this behalf]. 
59Q. Certain persons may not purchase.– No officer or other person having any duty to 
perform in connection with any distraint or sale made under this Chapter and no officer or 
servant of any society shall, either directly or indirectly, acquire or attempt to acquire any 
interest in the property sold. 
59R. Procedure where demand is paid before the sale .– (1) If at any time after a 
distraint has been made under this Chapter and before the sale of the distrained property the 
defaulter or any other person deposits with the Collector or with the distraining officer the 
demand amount together with such costs as may have been incurred after the service of the 
notice of demand, the order of distraint shall not be executed. 
 (2) When the distraining officer receives the deposit, he shall forthwith  remit it to 
the Collector. 
 (3) After the expiration of one month from the date on which the deposit is made 
under sub-section (1), the Collector shall pay to the society which applied for distraint the 
amount due to it: 
                                                           
1Substituted for the wor d “Commissioner” by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the 
Punjab Gazette (Extraordinary), dated July 1, 2006, pp.  3-10, s.  26. It was earlier substituted for the words “Revenue 
Commissioner” by the Sind Co-operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), published in the 
Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 12. 
 Provided that, if before the expi ry of the said period the Collector receives notice of 
any suit in which the legality of the distraint order is questioned or compensation is claimed 
for illegal distraint, he shall withhold payment to the society and shall deal with the money in 
accordance with such decree 
1
[or] order as may be passed in the suit. 
59S. Distraint of property which is under attachment .– Where an order of distraint 
issued under this Chapter and an order made by a Civil Court for attachment or sale relate to 
the same property,  the order of distraint shall prevail; but if the property is sold under the 
order of distraint the surplus proceeds of the sale sha ll not be paid under section 59 P to the 
owner of the property without the sanction of the court by which the order of attach ment or 
sale was made. 
59T. Suit for compensation for wrongful distraint and appeals .– No appeal shall lie 
against an order made by the Registrar or the Collector under this Chapter; but a person 
whose property is distrained on an ap plication made under se ction 59C may institute a suit 
against the applicant for recovery of compensation if such an application is not competent 
under that section. 
59U. Savings.– Nothing contained in this Chapter shall affect the operation of the 
provisions of 
2
[the Punjab Land Revenue Act, 1967 (W.P. Act XVII of 1967)] in so far as they 
give priority to claims of the 
3
[Government] to any moneys recoverable under the provisions 
of that Chapter over any other debt, demand or claim.] 
4
[CHAPTER IX 
Offences] 
60. Offences.– It shall be an offence under this Act if– 
(a) Default by a society, officer or member.– a society with a working capital of 
Rs.50,000 or more or an officer or member thereof fails without any 
reasonable excuse to give any notice, send any return or document, do or 
allow to be done anything which the society, officer or member is by this Act 
5
[or rules made thereunder] required to give, send, do or allow to be done; or 
(b) Wilful neglect or default by a society, etc .– a society or an officer or a 
member thereof wilfu lly neglects or refuses to do any act or to furnish any 
information required for the purposes of this Act 
6
[or rules made thereunder] 
by the Registrar or other person duly authorised by him in writing in this 
behalf; or 
(c) Wilful furnishing of false infor mation.– a society or an officer or member 
thereof wilfully makes a false return or furnishes false information; or 
                                                           
1Substituted for the word “of” by the Sind Laws (Adaptation, Revision, Repeal and Decla ration) Ordinance, 1955 (Sind V of  
1955), s. 7, Schedule III, Par IV. 
2Substituted for the words “Chapter XI of the Sind Land Revenue Code, 1879, or the relevant provisions of any other law 
relating to land revenue in force in the area,” by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the 
Punjab Gazette (Extraordinary), dated July 1, 2006, pp. 3-10, s. 27. 
3Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
4Substituted for the word “Offences” by the Sind Laws (Adaptation, Revision, Repeal and Declaration), Ordinance, 1955 (Sind 
Ordinance V of 1955), s . 7, Schedule III, Part IV, it came into force with effect from 24 April 1947.  Earlier the word and figures 
“Chapter IX-Offences” were substituted for the word “Offences” by Bombay 8 of 1936, s. 2. 
5Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 18. 
6Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s.18. 
(d) Disobedience of summons, requisition, or order .– any person wilfully or 
without any reasonable excuse disobeys any summons, requisition or lawful 
written order issued under the provisions of this Act 
1
[or rules made 
thereunder] or does not furnish any information lawfully required from him by 
a person authorized to do so under the provisions of this Act 
2
[or rules made 
thereunder] 
3
[; or] 
4
[(e) Indulgence in fraudulent activities .– a member of a society indulges in 
fraudulent or corrupt activities concerning the management or business of the 
society, or indulges in any illegal or corrupt practices, as defined in the  
5
[Punjab Local Governmen t Act, 2019 (XIII of 2019)], in the conduct of 
elections of the managing committee of the society; or 
(f) Performing acts without approval.– an officer, an employee of a society or 
a member of the managing committee of the society performs any act without 
prior approval of the Registrar or of the general body of the society where 
such prior approval is required by law; or 
(g) Making a false report or refusing to do an act .– an officer or a member of 
the internal audit committee of a society refuses or negle cts to do an act 
which he is required by law to do or makes a false report; or 
(h) Violation of the master plan .– a member of the managing committee of a 
cooperative housing society commits any violation or breach of an approved 
master plan 
6
[; or]] 
7
[(i) Failure to provide information .– a member, employee, director, officer or 
secretary of the society does not furnish information under clauses (viii), (ix), 
(x) and (xi) of section 5, section 20 -A, 21 -A, or does not comply with 
subsection (1) of section 49-A or section 34-A of this Act.] 
8
[61. Penalty for offences not otherwise provided for .– (1) Every 
9
[*] officer or member 
of a society or other person guilty of an offence under this Act for which no penalty is 
expressly provided in this Act shall be liable to a penalty not exceeding rupees one million.  
 
10
[(1a) Every society guilty of an offence under this Act for which no penalty is 
expressly provided shall be liable to a penalty not exceeding rupees ten million.]  
 (2) The Registrar or a person duly autho rized by him shall be empowered to 
impose such penalty after affording an opportunity of hearing to the concerned.] 
                                                           
1Ibid. 
2Ibid. 
3Substituted for the full-stop by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette 
(Extraordinary), dated July 1, 2006, pp. 3-10, s. 28(1). 
4Inserted by the Act ibid., s.28(2). 
5Substituted for the words “Punjab Local Government Ordinance, 2001 (XIII of 2001)” by the Co -operative Societies 
(Amendment) Act 2020 (XIX of 2020), published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585 -588, s. 
18.  
6Substituted for the full stop by the Co -operative Societies (Second Amendment) Act 2020, published in the Punjab Gazette 
(Extraordinary), dated September 10, 2020, pp. 1053-1056, s. 11. 
7Added by the Co -operative Societies (Second Amendment) Act 2020, published in the Punjab Gazette (Extraordinary), dated 
September 10, 2020, pp. 1053-1056, s. 11. 
8Substituted by the Co -operative Societies (Amendment) Act 2020  (XIX of 2020) , published in the Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 19. 
9Omitted the expression “society,” by the Co -operative Societies (Second Amendment) Act 2020, published in the Punjab 
Gazette (Extraordinary), dated September 10, 2020, pp. 1053-1056, s. 12(a). 
10Inserted by the Act ibid., s. 12(b). 
1
[61-A. Penalty for offences under clause (i) of section 60 .– Any member, employee, 
director, officer or secretary of the society found guil ty under clause (i) of section 60 shall be 
punishable with imprisonment for a term which may extend to five years or with fine up to 
rupees two million or with both, and if any society is found guilty under clause (i) of section 
60, it shall be liable to a fine up to a maximum of one fourth of its working capital.] 
62. Prohibition of the use of the word “co -operative”.– (1) No person other than a 
registered society shall without the sanction of 
2
[the 
3
[Government]], trade or carry on 
business under any name  or title of which the word “co -operative” or its vernacular 
equivalent forms part: 
 Provided that nothing in this section shall apply to the use by any person or his 
successor in interest of any name or title under which he traded or carried on business at the 
date on which this Act comes into operation. 
 (2) Whoever contravenes the provisions of this section shall be punishable with 
fine which may extend to 
4
[fifty thousand] rupees and in the case of a continuing offence with 
further fine of 
5
[five hundred] rupees for each day on which the offence is continued after 
conviction therefor. 
6
[62-A. Penalty.– (1) Whoever contravenes the provisions of sub section (3) of section 44 -C 
or any direction given by the Registrar under section 44 -D shall be guilty of an offence 
punishable with imprisonment of either description for a term which may extend to six 
months or with fine or with both. 
 (2) Whoever contravenes an order passed under section 44 -E shall be guilty of 
an offence which shall be punished with imprisonm ent for a term which may extend to three 
years but which shall not be less than six months and shall also be liable to be punished with 
fine]. 
7
[63. Cognizance of offences .– No Court shall take cognizance of any offence 
punishable under this Act except on a complaint in writing made by the Registrar or by a 
person duly authorised, for the purpose, by him: 
 Provided that cognizance of an offence under s ubsection (2) of section 62 -A may be 
taken even otherwise than on such complaint.] 
8
[CHAPTER X 
Appeals and Revisions] 
1
[64. Appeals.– An appeal against an order or decision of or sanctioned by the Registrar 
under sections 10, 16, 44-F, 45, 47, 50, 50-A, 54 or subsection (3) of section 54-A and 61 may 
                                                           
1Ibid., s.13.  
2Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
3Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
4Substituted for the word “fifty” by the Cooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab 
Gazette (Extraordinary), dated July 1, 2006, pp. 3-10, s. 30. 
5Substituted for the word “five” by the Act ibid. 
6Added by the Cooperative Societies (Amendment) Act, 1992 (I of 1992), published in the Punjab Gazette (Extraordinary), 
dated June 4, 1992, s. 7.  
7Substituted by the Act ibid., s. 8. 
8Substituted for the words “Appeals and Revision” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 
1955 (Sind Ordinance V of 1955), s. 7, Schedule III; it came into force with effect from 24 April 1947. 
be made by any party aggrieved or affec ted by the order or de cision to the Secretary 
Cooperatives within two months of the date of the communication of the order: 
 provided that in case the Secretary Cooperative is not available or he refuses to hear 
an appeal, the Chief Minister may assign such appeal to any other Secretary to the 
Government for hearing and disposal.]  
64-A. Power of 
2
[
3
[Secretary Cooperatives]] and the Registrar to call for proceedings of 
subordinate officers and to pass orders thereon.– 
4
[The 
5
[
6
[Secretary Cooperatives]]] and 
the Registrar may cal l for and examine the record of any inquiry or the proceedings of any 
officer subordinate to them for the purpose of satisfying themselves as to the legality or 
propriety of any decision or order passed and as to the regularity of the proceedings of such 
officer. If in any case, it shall appear to 
7
[the 
8
[
9
[Secretary Cooperatives]]] or the Registrar that 
any decision or order or proceedings so called for should be modified, annulled or reversed, 
10
[the 
11
[
12
[Secretary Cooperatives]]] or the Registrar, as the case may be, may pass such order 
thereon as to it or him may seem fit. 
  
13
[64AA. Finality of orders of 
14
[
15
[Secretary Cooperatives]].– An order passed in 
appeal under section 64 or in revision under section 64 A by the 
16
[
17
[Secretary Cooperatives]] 
shall be fi nal and conclusive and shall not be liable to be called in question in any civil or 
revenue court.] 
18
[CHAPTER XI 
                                                                                                                                                                                     
1Substituted by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published  in the Punjab Gazette 
(Extraordinary), dated August 11, 2020, pp. 585-588, s. 20.  
2Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
3Substituted for the word “Government” by the Act ibid., s. 21. 
4Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated 1 April 1937, pp. 75-344, Article 3 read with Schedule III. 
5Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
6Substituted for the word “Government” by the Act ibid., s.21. 
7Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated 1 April 1937, pp. 75-344, Article 3 read with Schedule III. 
8Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
9Substituted for the word “Government” by the Act ibid., s. 21. 
10Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated 1 April 1937, pp. 75-344, Article 3 read with Schedule III. 
11Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
12Substituted for the word “Government” by the Act ibid., s. 21. 
13Inserted by the Bombay Cooperative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 20. 
14Substituted for the words “Provincial Government” by the Co -operative Societies (Amendme nt) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
15Substituted for the word “Government” by the Act ibid., s. 22. 
16Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
17Substituted for the word “Government” by the Act ibid., s. 22. 
18Substituted for the word “Miscellaneous” by the Si nd Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 
(Sind Ordinance V of 1955), s . 7, Schedule III, Part IV, it came into force with effect from 24 April 1947.  Earlier the words and 
figures “Chapter X-Appeals and Revision” were substituted for the words “Appeals and Revision” by Bombay 8 of 1936, s. 2. 
Miscellaneous] 
65. Recovery of sums due to Government.– (1) All sums due from a society or from an 
officer or member or past member of a societ y as such to 
1
[Government], may be recovered 
according to the law and under the rules for the time being in force for the recovery of 
arrears of land revenue. 
 (2) Sums due from a society to 
2
[Government] and recoverable under sub-section 
(1) may be recove red, firstly from the property of the society; secondly, in the case of a 
society of which the liability of the members is limited, from the members or past members 
subject to the limit of their liability; and, thirdly, in the case of other societies, from  the 
members or past members. 
 (3) The liability of past members shall in all cases by subject to the provisions of 
section 28. 
3
[65A. (1) A member of a society may execute an agreement in favour of the society 
providing that his employer shall be competen t to deduct every month from the salary or 
wages payable to him by the employer such amount , not exceeding the amount prescribed 
by rules, as may be specified in the application and pay the amount so deducted to the 
society in satisfaction of any debt or other demand owing by the member to the society. 
 (2) On the execution of such agreement the employer shall, if so required by the 
society and so long as such debt or demand or any part of it remains unpaid, make the 
deduction in accordance with the agreement and pay the amount so deducted to the society. 
 (3) The provisions of this section shall also apply to all such agreements of the 
nature referred to in sub -section (1) as were in force on the date of the commencement of 
the 
4
[Sind] Co-operative Societies 
5
[* * *] (Second Amendment) Act, 1940, but nothing herein 
contained shall be deemed to authorise the deduction, under any such agreement, of any 
amount in excess of that prescribed by the rules. 
6
[(4) Nothing contained in this section shall apply to pers ons employed in mines of 
nuclear fuels, mineral oils and natural gas.]] 
7
[65-B. Officers of societies to be public servants .– Every officer of a society, including a 
Co-operative bank, shall be deemed to be a public servant within the meaning of section 21  
of the Pakistan Penal Code (Act XLV of 1860).] 
                                                           
1Substituted for the words “the Crown” by the West Pakistan Laws (Adaptation) Order, 1964, published in the Gazette of West 
Pakistan (Extraordinary), dated June 3, 1964, pp. 1805-1849, s. 2 read with the Schedule, Part IV, it came into force on June 8, 
1962. These were earlier substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 
1937, published in the Gazette of  India (Extraordinary), dated  April 1, 1937, pp. 75-344, Article 3 read with the Schedule III 
(Bombay Acts). 
2Ibid. 
3Inserted by the Bombay Co-operative Societies (Sind Second Amendment) Act, 1940 (Sind Act XXVII of 1940),  published in 
the Sind Government Gazette, dated February 13, 1940, s. 2. 
4Substituted for the word “Bombay” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind 
Ordinance V of 1955), s. 3(i), it came into force with effect from May 30, 1951. 
5Omitted the word “Sind” by the Ordinance ibid., s. 3(ii)(b), it came into force with effect from May 30,1951. 
6Substituted by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), published in the 
Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 13, for the original subsection (4) as amended 
by the West Pakistan Laws (Adaptation) Order, 1964, published in the Gazette of West Pakistan (Extraordinary), dated June 3, 
1964, pp. 1805-1849, s. 2 read with the Schedule, Part IV, it came into force on June 8, 1962. 
7Inserted by the Co -operative Societies (Second Amendment) Ordinance, 1966 (XVII of 1966), published in the Gazette of 
West Pakistan (Extraordinary), dated April 27, 1966, pp. 1051-1053, s. 2. 
66. Power to exempt societies from conditions as to registration .– Notwithstanding 
anything contained in this Act,  
1
[the 
2
[Government]] may, by special order in each case and 
subject to such conditions, if an y, as it may impose, exempt any society from any of the 
requirements of this Act as to registration. 
67. Powers to exempt societies from provisions of Act .– 
3
[The 
4
[Government]] may, 
by general or special order to be published in the 
5
[Official Gazette], exempt any society or 
class of societies from any of the provisions of this Act, or may direct that such provisions 
shall apply to such society or class of societies with such modifications as may be specified 
in the order; provided that no order to the prejudice of any society shall be passed without an 
opportunity being given to such society to represent its case. 
68. Companies Act not to apply.– The provisions of the 
6
[* * *] Companies Act of 1913
7
, 
shall not apply to societies registered under this Act. 
69. Branches, etc., of societies outside the Province .– Every co -operative society 
registered outside 
8
[Province of the Punjab] , which has or establishes a branch or place of 
business in 
9
[Province of the Punjab] shall within six months from the commencement of this 
Act or from the establishment of such branch or place of business, file with the Registrar a 
certified copy of the by -laws and amendments and, if these are not written in the English 
language, a certified translation in English thereof, and shal l submit to the Registrar such 
returns and information as are submitted by similar societies in 
10
[Province of the Punjab] in 
addition to those submitted to the Registrar of the province where it is registered. 
70. Notice necessary in suits.– No suit shall be instituted against a society or any of its 
officers in respect of any Act touching the business of the society until the expiration of two 
months next after notice in writing has been delivered to the Registrar, or left at his office, 
stating the cause of action, the name, description and place of residence of the plaintiff and 
the relief which he claims; and the plaint shall contain a statement that such notice has been 
so delivered or left. 
                                                           
1Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated 1 April 1937, pp. 75-344, Article 3 and Schedule III. 
2Substituted for the words “Provincial Government” by the Co -operative Societies  (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
3Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the 
Gazette of India (Extraordinary), dated 1 April 1937, pp. 75-344, Article 3 and Schedule III. 
4Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
5Substituted for the words “Bombay Government Gazette” by the Government of India (Adaptation of Indian Laws) Order, 1937, 
published in the Gazette of India (Extraordinary), dated 1 April 1937, pp.  75-344, Ar ticle 4(1) read with Table of General 
Adaptations. 
6Omitted the word “Indian” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance 
V of 1955), s. 4; it came into force with effect from May 30, 1951. 
7VII of 1913. 
8Substituted for the words “the Province of West Pakistan” by the Co-operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated Augu st 11, 2020, pp. 585-588, s. 2(b). Earlier substituted for the words 
“Province of the Sind” by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), 
published in the Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 14, for the words “Province of 
Sind”. Earlier substituted for the words “Bombay Presidency” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) 
Ordinance, 1955 (Sind Ordinance V of 1955).  
9Ibid.  
10Ibid. 
1
[70-A. Bar of Jurisdiction.– (1) Notwithstanding anything provided in any other law for the 
time being in force, but save as expressly provided in this Act– 
(a) no Court or other authority whatsoever shall have jurisdiction to entertain, or 
to adjudicate upon, any matter which the 
2
[
3
[Secretary Cooperatives]], the 
Registrar or his nominee, any arbitrator or liquidator, a society, a financing 
bank, a Co-operative bank or any other person is empowered by or under this 
Act, or the rules or bye-laws framed thereunder, to dispose of or to determine; 
(b) the validity of an ything done or an order passed by the 
4
[
5
[Secretary 
Cooperatives]], a society, a financing bank, a Co-operative bank, the Registrar 
or any other person referred to in clause ( a), under this Act or the rules and 
bye-laws framed thereunder, shall not be call ed in question in any manner 
whatever before or by any Court or other authority whatsoever; and 
(c) no Court or other authority whatsoever shall be competent to grant any 
injunction or pass any other order in relation to any proceedings under this Act 
or a ny rules or by e-laws framed thereunder before the  
6
[
7
[Secretary 
Cooperatives]], a society, a financing bank, a Co-operative bank, the Registrar 
or any other person referred to in clause (a). 
 (2) The provisions of sub -section (1) shall be applicable to pro ceedings, appeals 
and revisions pending adjudication or disposal before or in any Court or other authority 
whatsoever on the date that the Co -operative Societies (Amendment) Ordinance, 1966, 
comes into force,  and any order passed in such proceedings, wheth er before or after the 
coming into force of the said Ordinance, in regard to matters referred to in sub -section (1), 
shall stand vacated and be without any force.] 
8
[70-B. Assistance by law enforcement agencies .– All law enforcement agencies 
including poli ce shall be bound to provide necessary assistance to Registrar or his 
authorized officers to execute the orders passed under this Act.] 
71. Rules.– (1) 
9
[The 
10
[Government]] may, for the whole or any part of the 
11
[Province] 
and for any society or class of societies, make rules to carry out the purposes of this Act. 
 (2) In particular and without prejudice to the generality of the foregoing power 
such rules may– 
                                                           
1Inserted by the Co-operative Societies (Amendment) Ordinance, 1966 (XII of 1966), published in the Gazette of West Pakistan 
(Extraordinary), dated April 4, 1966, pp. 751-752, s. 2.  
2Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
3Substituted for the word “Government” by the Act ibid., s. 23. 
4Substituted for the words “Provincial Government” by the Act ibid., s. 2(a). 
5Substituted for the word “Government” by the Act ibid., s. 23. 
6Substituted for the words “Provincial Government” by the Act ibid., s. 2(a). 
7Substituted for the word “Government” by the Act ibid., s. 23. 
8Inserted by the Co -operative Societies (Second Amendment) Act 2020 (XXII of 2020), published in the Punjab Gaze tte 
(Extraordinary), dated September 10, 2020, pp. 1053-1056, s. 14. 
9Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the Ga zette 
of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
10Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in 
the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
11Substituted for the word “Presidency” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind 
Ordinance V of 1955), (with effect from 30th May, 1951). 
(a) subject to the provisions of section 6, prescribe the maximum number of 
shares or portion of the capital of a society which may be held by a member; 
(b) prescribe the forms to be used and the conditions to be complied with in the 
making of applications for the registration of a society and the procedure in 
the matter of such applications; 
(c) prescribe the matters in respect of which a society may or shall make by -laws 
and the procedure to be followed in making, altering and abrogating by -laws 
and the conditions to be satisfied prior to such making, alteration or 
abrogation; 
(d) prescribe the condit ions to be complied with by persons applying for 
admission or admitted as members and provide for the election and 
admission of members and the payment to be made and the interests to be 
acquired before the exercise of the right of membership; 
(e) provide for ascertaining the value of a deceased member‟s share or interest; 
(f) provide for general meetings of the members and for the procedure at such 
meetings and the powers to be exercised by such meetings; 
(g) provide for the appointment, suspension and rem oval of the members of the 
committee and other officers and for the procedure at meetings of the 
committee and for the powers to be exercised and the duties to be performed 
by the committee and other officers; 
1
[
2
[(ga)] provide, where all the members of th e committee have been suspended or 
removed, for the appointment of a person to administer the affairs of the 
society and for the powers to be exercised and the duties to be performed by 
such person;] 
(h) prescribe the accounts and the books to be kept by a  society and provide for 
the audit of such accounts, and the charges, if any, to be made for such audit, 
and for the periodical publication of a balance sheet showing the assets and 
liabilities of a society; 
(i) prescribe the returns to be submitted by a society to the Registrar and provide 
for the persons by whom and the form in which such returns shall be 
submitted; 
(j) provide for the persons by whom and the form in which copies of documents 
or entries in books of societies may be certified, and for the charges to be 
levied for the supply of such copies; 
(k) provide for the formation and maintenance of a register of members, and 
where the liability of the members is limited by shares, of a register of shares; 
(l) prescribe the payments to be made and the conditions to be complied with by 
members applying for loans, and the period for which loans may be made, 
and the amount which may be lent to an individual member; 
3
[(m) prescribe the conditions, prohibitions and restrictions subject to which a 
society may– 
(i) transact business with persons who are not members; or 
                                                           
1Inserted the clause (gg) by the Bombay Co-operative Societies (Sind Amendment) Act, 1943 (Sind Act XVI of 1943), s. 21(i). 
2Re-numbered the clause (gg) as clause (ga) by the Sind Laws (Adaptation, Revision, Repeal and Declaration ) Ordinance, 1955 (Sind 
Ordinance V of 1955), s. 7, Schedule III, Part IV. 
3Substituted by the Bombay Co-operative Societies (Sind Amendment) Act, 1947 (Sind Act XX of 1947), s. 10(1). 
(ii) make loans against the security of movable property;] 
(n) provide for the formation and maintenance of reserve funds, and the objects 
to which such funds may be applied, and for the investme nt of any funds 
under the control of a society; 
(o) prescribe the extent to which a society may limit the number of its members; 
(p) prescribe the conditions under which profits may be distributed to the 
members of a society and the maximum rate of dividen d which may be paid 
by societies; 
(q) prescribe the procedure to be followed in presenting and disposing of 
appeals; 
(r) provide for securing that the share capital of any society shall be variable in 
such a way as may be necessary to secure that shares shall not appreciate in 
value and that necessary capital shall be available for the society as required; 
(s) provide that persons qualified under the by -laws of a society shall not be 
excluded from membership without due cause; 
(t) prescribe the procedure to be followed by a liquidator appointed under section 
47; 
(u) prescribe the mode of appointing an arbitrator or arbitrators and the 
procedure to be followed in proceedings before the Registrar or such 
arbitrator or arbitrators and for fixing and levying the  expenses of determining 
the dispute; 
(v) provide for the issue and service of processes and for proof of service 
thereof; 
(w) provide for the writing off of bad debts; 
(x) regulate the manner in which funds may be raised by means of shares or 
debentures 
1
[, participation term certificates, term finance certificates, 
musharika certificates, modaraba certificates, and such other instruments as 
may be approved by the State Bank of Pakistan], or otherwise; 
(y) provide for the withdrawal and expulsion of members and for the payments to 
be made to them and for the liabilities of past members; 
(z) provide for the nomination of a person to whom the interest of a deceased 
member may be paid or transferred; 
(aa) prescribe the cases in which an appeal shall lie from t he order of a liquidator 
appointed under section 47; 
(bb) provide for the inspection of documents in the Registrar‟s office and the levy 
of fees for granting certified copies of the same; 
(cc) prescribe the procedure to be followed for the custody of prope rty attached 
under section 55; 
 
2
[(cca) prescribe the manner in which an order under sub -section (3) o r sub-section 
(4) of section 59E or a notice of demand shall be served or published; 
                                                           
1Inserted by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), published in the Punjab Gazette 
(Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(10)(i). 
2Clauses (cca), (ccb) and (ccc) were inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1947 (Sind Act XX 
of 1947), s. 10(2). 
(ccb) prescribe the particulars to be supplied to the Collector under  sub-section (1) 
of section 59F; 
 (ccc) prescribe the manner in which a notification of distraint should be published 
under sub-section (2) of section 59F;] 
(dd) provide for the payment of contributions at such rates and subject to such 
conditions as may from time to time be prescribed by co-operative societies to 
any provident fund which may be established for the benefit of officers and 
servants employed by them; 
1
[*] 
(ee) prescribe the period and terms under which Government aid may be given to 
co-operative societies and the terms under which  
2
[the 
3
[Government]] may 
guarantee the payment of 
4
[the principal of and] interest 
5
[or return] on  
6
[instruments referred to in clause (x) of this sub -section] issued by registered 
societies; 
7
[(ff) prescribing the m anner in which any property shall be delivered to, and the 
terms and conditions subject to which such property shall be held  by, a 
society under section 59A 
8
[;] 
9
[(gg)] provide that the contravention of any rule or order issued thereunder shall be 
punishable with fine not exceeding rupees 
10
[five thousands] 
11
[; and] 
12
[(hh) prescribe the environmental standards and the standards for the use of land.] 
(3) 
13
[The 
14
[Government]] may, subject to such conditions, if any, as it thinks fit, 
delegate all or any of its powers to make rules under this section to any authority specified in 
the order of delegation. 
(4) The power to make rules conferred by this section is subject to the condition 
of the rules being made after previous publication. 
1
[(5) *  *  *  *  *  *  *  *  * ] 
                                                           
1Repealed the word “and” by the Sind Laws (Adaptation, Revision, Repeal and Declaration ) Ordinance, 1955 (Sind Ordinance V of 
1955), s. 6, Schedule II. 
2Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the Ga zette 
of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
3Substituted for the words “Provincial Government” by the Co-operative Societies (Amendment) Act 2020 (XIX of 2020), published in the 
Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
4Inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1935 (Sind Act XXII of 1935), s. 5(1). 
5Inserted by the Cooperative Societies (Punjab Amendment) Ordinance, 1984 (XL of 1984), published in the Punjab Gazette 
(Extraordinary), dated December 31, 1984, pp. 3023-3026, s. 2(10)(ii)(a). 
6Substituted for the word “debentures” by the Ordinance ibid., s.2(10)(ii)(b). 
7Clause (ff) was inserted by the Bombay Co-operative Societies (Sind Amendment) Act, 1935 (Sind Act XXII of 1935), s. 5(c). 
8Substituted for full stop by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance V of 1955), 
s. 7, Schedule III, Part IV. 
9Re-numbered clause (mm) as clause (gg) by the Sind Laws (Adaptation, Revision, Repeal and Decla ration) Ordinance, 1955 (Sind 
Ordinance V of 1955), s. 7, Schedule III, Part IV.  Earlier clause (mm) was inserted by the Bombay Co-operative Societies ( Sind 
Amendment) Act, 1943 (Sind Act XVI of 1943), s. 21(ii).  
10Substituted for the word “fifty” by the C ooperative Societies (Amendment) Act 2006 (VI of 2006), published in the Punjab Gazette 
(Extraordinary), dated July 1, 2006, pp. 3-10, s. 31(1)(a). 
11Substituted for the full-stop by the Act ibid., s.31(1)(b). 
12Inserted by the Act ibid., s.31(2). 
13Substituted for the word “Government” by the Government of India (Adaptation of Indian Laws) Order, 1937, published in the Gazette 
of India (Extraordinary), dated April 1, 1937, pp. 75-344, Article 3 read with Schedule III (Bombay Acts). 
14Substituted for the words “Provincial Government” by the Co -operative Societies (Amendment) Act 2020 (XIX of 2020), published in 
the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(a). 
2
[72. Repeal and Savings.– (1) The following enactments are hereby repealed:– 
(a) the Co-operative Societies Act, 1912
3
; and 
(b) the Bombay Co-operative Societies Act, 1925
4
, as applicable to the District of 
Karachi. 
 (2) Every society now existing which has been registered under the Co-operative Societies 
Act, 1904
5
, or under the Co-operative Societies Act, 1912
6
, shall be deemed to be registered 
under this Act, and its by-laws shall, so far as the same are not inconsistent with the express 
provisions of this Act, continue in force until altered or rescinded. 
 (3) All rules, regulations, notifications and orders made or issued under this Act and in 
force at the time of the commencement of the Sind Co -operative Societies (West Pakistan 
Amendment) Ordinance, 1965
7
, shall, so far as may be, extend and apply, until altered, 
amended or rescinded by competent authority to the areas to which this Act has been 
extended by the Sind Co -operative Societies (West Pakistan Amendment) Ordinance, 
1965
8
]. 
9
[(4) The repeal of the Acts specified in sub -section (1), hereinafter referred to as 
the repealed Acts, shall not– 
(a) revive anything not in force or existing at the time at which the repeal takes 
effect; or 
(b) affect the previous operation of the repealed Acts or anythi ng duly done or 
suffered thereunder; or 
(c) affect any right, privilege, obligation or liability acquired, accrued or incurred 
under the repealed Acts; or 
(d) affect any penalty, forfeiture or punishment incurred in respect of any offence 
committed against any repealed Act; or 
(e) affect any investigation, legal proceeding or remedy in respect of any such 
right, privilege, obligation, liability, penalty, forfeiture, or punishment as 
aforesaid, and any such investigation, legal proceeding or remedy may be 
instituted, continued, or enforced, and any such penalty or forfeiture or 
punishment may be imposed as if this Act had not been passed. 
 (5) Any person who immediately before the coming into force of the Sind Co -
operative Societies (West Pakistan Amendment) Ordinance, 1965, was appointed as, or was 
exercising the powers of, a Registrar, Liquidator, Registrar‟s nominee or any other authority, 
under any repealed Act, shall be deemed to have been so appointed under this Act, and 
shall continue to exercise the po wers of the Registrar, Liquidator, Registrar‟s nominee, or 
                                                                                                                                                                                     
1Omitted s ub-section (5) by  the West Pakistan (Adaptation and Repeal of Laws) Act, 1957 ( XVI of 1957), published in the 
Gazette of West Pakistan (Extraordinary), dated July 25, pp. 709-789, s. 3(3) read with Schedule III (Sind Acts). 
2Substituted for the original section 72 by the Sind Co-operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 
1965), published in the Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 15. 
3II of 1912. 
4Bombay VII of 1925. 
5X of 1904. 
6II of 1912. 
7W.P. Ord. VII of 1965. 
8W.P. Ord. VII of 1965. 
9Added by the Co-operative Societies (Second Amendment) Ordinance, 1966 (XVII of 1966), published in the Gazette of West 
Pakistan (Extraordinary), dated April 27, 1966, pp. 1051-1053, s. 3, above added subsections came into force with effect from  
April 30, 1965. 
other corresponding authority, as the case may be, under this Act, until such appointment is 
rescinded by the competent authority under this Act.] 
1
[72A. Construction of references to Co -operative Societies Act, 1912, in 
enactments.– All references to the Co -operative Societies Act, 1912
2
, occurring in any 
enactment made by any authority in 
3
[Pakistan] and for the time being in force in  
4
[
5
[Province 
of the Punjab] ] shall, in the application, to the  
6
[said Province], of any such enactment, be 
read and construed as references to this Act and anything done or any proceeding 
commenced in pursuance of any such enactment on or after the date on which this Act shall 
have come into operation shall be deemed to have been done or to have been commenced 
and to have had effect as if the reference in such enactment to the Co -operative Societies 
Act, 1912
7
, had been the reference to this Act, and no such thing or proceeding shall be 
deemed to have been invalid on the ground that such enactment did not refer to this Act.] 
8
[72B.  * * * * * * * * *   ] 
9
[73. *  * * * * * * * *   ] 
10
[* * * * * *] 
 
 
 
 
 
 
                                                           
1Inserted section 72-A by the Bombay Co-operative Societies (Amendment) Act, 1933 (Bombay Act VIII of 1933), s. 2. 
2II of 1912. 
3Substituted for the words “British India” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955, 
(Sind Ordinance V of 1955), s. 3(ii)(b); it came into force with effect from 30 May 1951. 
4Substituted for the word “Sind” by the Sind Co-operative Societies (West Pakistan Amendment) Ordinance, 1965 (VII of 1965), 
published in the Gazette of West Pakistan (Extraordinary) dated April 30, 1965, pp. 1987-1989, s. 2. It was earlier substituted for 
the words “the Province of Sind” by the West Pakistan Laws (Adaptation) Order, 1964, published in the Gazette of West 
Pakistan (Extraordinary), dated June 3, 1964, pp. 1805-1849, s. 2 read with the Schedule, Part IV, it came into force on June 8, 
1962. The words “Province of Sind” were previously substituted for the word “Sind” by the Sind Laws (Adaptation, Revision, 
Repeal and Declaration) Ordinance, 1955 (Sind Ordinance V of 1955).  
5Substituted for the words “the Province of West Pakistan” by the Co-operative Societies (Amendment) Act 2020 (XIX of 2020), 
published in the Punjab Gazette (Extraordinary), dated August 11, 2020, pp. 585-588, s. 2(b). 
6Substituted for the words “said territories” ibid., s. 16. These were earlier substituted for the words “said Province” by the West 
Pakistan Laws (Adaptation) Order, 1964, published in the Gazette of West Pa kistan (Extraordinary), dated June 3, 1964, pp. 
1805-1849, s. 2 read with the Schedule, Part IV, it came into force on June 8, 1962. The words “said Province” were previously 
substituted for “Presidency” by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance 
V of 1955). 
7II of 1912. 
8Repealed by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance V of 1955), s. 6, 
Schedule II. 
9Ibid. Earlier it was inserted by the Bombay Co-operative Societies (Sind Amendment), 1935 (Sind Act No. XXII of 1935), s. 6. 
10Repealed by the Sind Laws (Adaptation, Revision, Repeal and Declaration) Ordinance, 1955 (Sind Ordinance V of 1955), s . 
6, Schedule II.