PUNJAB CO-OPERATIVE SOCIETIES AND CO-OPERATIVE BANKS (REPAYMENT OF LOANS) ORDINANCE, 1966

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THE PUNJAB CO-OPERATIVE SOCIETIES AND CO-
OPERATIVE BANKS (REPAYMENT OF LOANS) 
ORDINANCE, 1966 
(XIV of 1966) 
CONTENTS 
1. Short title, extent and commencement. 
2. Definitions. 
3. Repayment of Loans. 
4. Supply of information to the Registrar. 
5. Service of notice to the borrowers. 
6. Determination of liability when loan is not admitted. 
7. Securing and Repayment of Loans. 
8. Recovery of loans. 
8-A. Restrictions on registration of documents. 
8-B. Restrictions on alienations. 
9. Power of Registrar when making inquiry. 
9-A. Revision. 
10. Penalty. 
11. Procedure. 
12. Power to make rules. 
 
 
 
TEXT 
1
THE 
2
[PUNJAB] CO-OPERATIVE SOCIETIES AND CO-OPERATIVE 
BANKS (REPAYMENT OF LOANS) ORDINANCE, 1966 
(XIV of 1966) 
[27 April 1966] 
An 
Ordinance 
to provide for the repayment of unsecured loans or loans insufficiently secured. 
Preamble.– WHEREAS it is expedient to provide for the securing and repayment of 
such loans taken from the co -operative banks and other co -operative societies as 
are not secured or are insufficiently secured; 
 AND WHEREAS the Provincial Assembly of West Pakistan is not in session 
and the Governor of West Pakistan is satisfied that immediate legislation is 
necessary; 
 NOW,THEREFORE, in pursuance of the powers conferred on him by clause 
(1) of Article 79 of the Constit ution, the Governor of West Pakistan is pleased to 
make and promulgate the following Ordinance, namely:– 
1. Short title, extent and commencement .– (1) This Ordinance may be called 
the 
3
[Punjab] Co-operative Societies and Co -operative Banks (Repayment of Lo ans) 
Ordinance, 1966. 
 (2) It extends to the whole of the Province of 
4
[the Punjab] , except the 
Tribal Areas. 
 (3) It shall come into force at once. 
2. Definitions.– In this Ordinance, unless there is anything repugnant in the 
subject or context– 
(a) “Act” means the Co-operative Societies Act, 1925 (Sind VII of 1925); 
(b) “Assistant Registrar” means an Assistant Registrar of Co -operative 
Societies appointed or deemed to have been appointed under the Act 
to assist the Registrar; 
 
1
This Ordinance was promulgated by the Governor of West Pakistan on April  24, 1966,  published in the Gazette of West 
Pakistan (Extraordinary), dated June 10, 1966, pp. 1031-1037 and approved by the Provincial Assembly of West Pakistan on 
June 10, 1966, under clause (3) of Article 79 of the Constitution of the Islamic Republic of Pakistan (1962). 
2
Substituted for the words “West Pakistan” by the P unjab Laws (Adaptation) Order, 1974 (1 of 1974) (w.e.f.  14.8.1973), 
published in the Punjab Gazette (Extraordinary), dated November 20, 1974, pp. 1425 -A-1425-PP, Article 2(1) read with 
Schedule Part III, Serial No. 87. 
3
Ibid. 
4
Ibid. 
1
[(bb) “benami loan” means a loan the real beneficiary or recipient whereof is 
a person other than the person in whose name the loan is advanced or 
granted; 
(bbb) “borrower” includes, in the case of a benami loan, the real beneficiary 
or recipient of the loan;] 
(c) “co-operative bank”  means a co -operative society established for 
carrying on banking business and having as its principal object the 
financing of other co -operative societies registered or deemed to be 
registered under the Act; 
(d) “co-operative s ociety” means a society whic h having as its object the 
promotion of economic interest of its members in accordance with co -
operative principles, is registered or deemed to be registered under the 
Act; 
(e) “Government” means the 
2
[Provincial Government of the Punjab]; 
(f) “loan” means  a loan (including 
3
[a benami loan, or]  any transaction 
which in the opinion of the Registrar is in substance a loan), whether of 
money or in kind, which is not secured or is insufficiently secured, and 
taken from a co-operative society by any person, whether a member of 
such society or not, or from a co-operative bank by any person 
4
[but not 
an Agricultural Cooperative Society, Dairy Farming Cooperative 
Society or Poultry Farming Cooperative Society having in each case a 
working capital not exceeding five hundred thousand rupees] but not a 
Co-operative Society, and includes– 
5
[(i) finance as defined in the Banking Tribunals Ordinance, 1984 
(Ordinance No. LVIII of 1984) and all cognate expressions shall 
be construed accordingly.] 
6
[(ii)] any amount which is due from any such person to a co -
operative society or a co -operative bank, whether taken as a 
loan or not;] 
 
1Inserted by the West P akistan Co -operative Soc ieties and Co -operative Banks (Repayment of Loans) (Amendment) 
Ordinance, 1966 (XXV of 1966), published in the Gazette of West Pakistan (Extraordinary), dated August 7, 1966, pp. 2223 -
2227, s. 2(i). 
2Substituted for the words “Gover nment of West Pakistan” by the Punjab Laws (Adaptation) Order, 1974 (1 of 1974) (w.e.f.  
14.8.1973), published in the Punjab Gazette (Extraordinary), dated November 20, 1974, pp. 1425 -A-1425-PP, Article 2(1) read 
with Schedule, Part III, Serial No. 87. 
3Inserted by the West Pakist an Co -operative Societies and Co -operative Banks (Repayment of Loans) (Amendment) 
Ordinance, 1966 (XXV of 1966), published in the Gazette of West Pakistan (Extraordinary), dated August 7, 1966, pp. 2223 -
2227, s. 2(ii). 
4Substituted for the words “but not a  Co-operative Society” by the Punjab Co -operative Societies and Co -operative Banks 
(Repayment of Loans) (Amendment) Act, 1992 (II of 1992), published in the Punjab Gazette (Extraordinary), dated June 4, 
1992, pp. 2903-E-2903-G, s. 2(i). 
5Added by the Punja b Co-operative Societies and Co -operative Banks (Repayment of Loans) (Amendment) Ordinance, 1984 
(XXXIX of 1984), published in the Punjab Gazette (Extraordinary), dated December 31, 1984, pp. 3021-3022, s. 2. 
6Re-numbered from “(i)”  by the Punjab Co -operative Societies and Co -operative Banks (Repayment of Loans) (Amendment) 
Ordinance, 1984 (XXXIX of 1984), published in the Punjab Gazette (Extraordinary), dated December 31, 1984, pp. 3021 -3022, 
s. 2. 
 
1
[(iii)] any amount due from any such person to a co -operative society 
or a co -operative bank under a decree passed by a Civil Court 
or an award given by an arbitrator or a decision of the Registrar, 
whether in exercise of his original or appellate jurisdiction; and  
2
[(iv)] any loan due from any such person to a co -operative society or 
a co-operative bank which is the sub ject matter of any pending 
suit, arbitration proceedings, appeal or revision, whether under 
the Act or before any Court. 
Explanation.– A loan is “insufficiently secured” if it is not secured by mortgage, 
pledge, hypothecation or assignment of such property  of the borrower or of his 
surety or of both, as in the case of a loan not exceeding 
3
[five hundred thousand] 
rupees, the Assistant Registrar, and in the case of a loan exceeding 
4
[five hundred 
thousand] rupees, the Registrar may think adequate; and 
(g) “Registrar” means a Registrar of Co -operative Societies appointed or 
deemed to have been appointed under the Act, and includes a person 
upon whom all the powers of a Registrar have been conferred under 
the Act. 
5
[3. Repayment of Loans.– Notwithstanding anything contained in any other l aw 
for the time being in force or in any agreement or other instrument, award or decree 
of any court, every loan outstanding, whether barred by limitation or not, in whole or 
in part and every loan, any instalment whereof is out standing shall, unless repai d 
earlier be repaid and secured in the manner provided in section 7.] 
4. Supply of information to the Registrar.– Every co-operative society and co-
operative bank, through its Manager or Secretary, shall– 
(a) when a loan obtained from it is not repaid by the date on which it is due 
for repayment, bring such fact, together with full details of the case and 
the particulars of the borrower 
6
[(including in the case of a benami loan, 
the real beneficiary or recipient of the loan)] and the surety, to the 
notice of the Assistant Registrar, when the amount of the loan does not 
exceed 
7
[five hundred  thousand] rupees, and to the notice of the 
 
1Re-numbered from “(ii)” by the Ordinance ibid. 
2Re-numbered from “(iii)” by the Ordinance ibid. 
3
Substituted for the words “thirty thousand” by the Punjab Co -operative Societies and Co -operative Banks (Repayment of 
Loans) (Amendment) Act, 1992 (II of 1992), published in the Punjab Gazette  (Extraordinary), dated June 4, 1992, pp. 2903-E-
2903-G, s. 2(ii). 
4
Ibid. 
5
Substituted by the Act ibid., s. 3. 
6
Inserted by the West Pakistan Co -operative Societies and Co -operative Banks (Repayment of Loans) (Amendment) 
Ordinance, 1966 (XXV of 1966), publ ished in the Gazette of West Pakistan (Extraordinary), dated August 7, 1966, pp. 2223 -
2227, s. 3. 
7
Substituted for the words “thirty thousand” by the Punjab Co -operative Societies and Co -operative Banks (Repayment of 
Loans) (Amendment) Act, 1992 (II of 199 2), published in the Pun jab Gazette (Extraordinary), dated June 4, 1992, pp. 2903-E-
2903-G, s. 4. 
Registrar, when the amount of the loan exceeds 
1
[five hundred 
thousand] rupees; and 
(b) when so dir ected by the Registrar or th e Assistant Registrar, as the 
case may be, within thirty days of receipt of such direction, furnish to 
the Registrar, or the Assistant Registrar, as the case may be, full 
information in respect of all cases of loans falling unde r section 3 
required to be repaid or secured under section 7. 
5. Service of notice to the borrowers .– (1) On receipt of information under 
section 4  
2
[or on his own information]  in respect of any loan, the Registrar or the 
Assistant Registrar, as the case may be, shall issue or cause to be issued a notice to 
the borrower and his surety requiring them to repay and secure the loan in 
accordance with the provisions of section 8. 
 (2) A notice under sub-section (1) may be served– 
(a) by giving or tendering it to the person named in the notice; or 
(b) by enclosing it in a cover and sending such cover by registered post, 
acknowledgment due, to the last known address of the person named 
in the notice; or 
(c) by affixing such notice on a conspicuous part of the last known 
residence of the person named in the notice; or 
(d) by publication of the notice in a newspaper. 
6. Determination of liability when loan is not admitted .– Where any borrower 
or his surety, to whom notice under section 5 is issued, does not admit the loan or 
any liability arisin g therefrom, such borrower or surety, as the case may be, shall, 
within thirty days of the receipt of the notice, submit, either personally or by 
registered post (acknowledgment due), a written statement to that effect to the 
Registrar or the Assistant Reg istrar, by whom such notice was issued or caused to 
be issued, and such Registrar or Assistant Registrar, as the case may be, thereupon 
shall cause notice to be issued to the co -operative society, or the co-operative bank, 
as the case may be, and in the case of a benami loan, to the alleged beneficiary, and 
shall, after making such inquiry as he may consider necessary and giving the parties 
a reasonable opportunity of being heard, decide the matter. 
3
[7. Securing and Repayment of Loans.– Within thirty days of the service of the 
notice under section 5, in a case where the borrower does not deny the loan or the 
liability arising therefrom, and in other cases, within thirty days of the decision of the 
Registrar or the Assistant Regis trar, as the case may be, un der section 6, the 
borrower and his surety shall– 
(a) secure the loan or the liability arising therefrom by mortgage, pledge, 
hypothecation or assignment of such property of the borrower or his 
 
1
Ibid. 
2
Inserted by the Act ibid., s. 5. 
3
Substituted by the Punjab Co-operative Societies and Co-operative Banks (Repayment of Loans) (Amendment) Act, 1992 (II of 
1992), published in the Punjab Gazette (Extraordinary), dated June 4, 1992, pp. 2903-E-2903-G, s. 6. 
surety or of both as, in the case of a loan not exceeding five  hundred 
thousand rupees, the Assistant Registrar, and in the case of a loan 
exceeding five hundred thousand rupees, the Registrar, may think 
adequate; and 
(b) repay the loan after thirty days of the service of notice under sect ion 5, 
when he does not deny the loan or the liability arising therefrom, and in 
any other case, after thirty days of the decision of the Registrar or the 
Assistant Registrar, as the case may be, in eight months in four equal 
instalments, the first instalm ent being due on the day imm ediately 
succeeding the one month period of notice or, as the case may be, the 
decision of the Registrar or the Assistant Registrar, specified above.] 
8. Recovery of loans.– 
1
[(1)] If the amount of any loan or any part thereof t o be 
repaid in accordance wi th the provisions of section 7 is not paid within the period or 
the periods specified in the said section, the same may, without prejudice to the 
provisions of section 10, be recovered according to the law and under the rules fo r 
the time being in force for the recovery of arrears of land revenue. 
 
2
[(2) Where the borrower is a firm, partnership, company or other 
association of persons (not being a company registered under the Companies Act, 
1913
3
, the liability of the members whe reof is limited), the loan or any part thereof 
due from such borrower may be recovered from the assets of such firm, partnership, 
company or other association of persons, as the case may be, or from the members 
or partners thereof.] 
4
[8-A. Restrictions on registration of documents .– (1) Notwithstanding anything 
contained in any other law for the time being in force , no Registering Officer shall 
register any document relating to property, which is required to be registered under 
the provisions of clause (a), (b), (c) or (e) of section 17 of the Registration Act, 1908
5
, 
or which is produced before him for voluntary registration, nor shall any Revenue 
Officer on the basis of any such document effect any mutation in the Record of 
Rights under the provisions of any law for the time being in force, unless–  
(a) the person whose right, title or interest in the property is or will be 
transferred, assigned, limited or extinguished under the terms of the 
document or on the basis of the mutation in the Record of Rights,  as 
the case may be, furnishes an affidavit to the Registering Officer or the 
Revenue Officer, as the case may be, to the effect that he does not 
owe any loan, whether due immediately or on a future date, to a co -
operative society or a co-operative bank; or 
 
1
Re-numbered by the West Pakistan Co -operative Societies and Co -operative Banks (Repayment of Loans) (Amendment) 
Ordinance, 1966 (XXV of 1966), publi shed in the Gazette of W est Pakistan (Extraordinary), dated August 7, 1966, pp. 2223 -
2227, s. 4. 
2
Added by the Ordinance ibid. 
3
VII of 1913. 
4
Inserted by the West Pakistan Co -operative Societies and Co -operative Banks (Repayment of Loans) (Amendment) 
Ordinance, 1966 (XXV of 1966) , published in the Gazette of West Pakistan (Extraordinary), dated August 7, 1966, pp. 2223 -
2227, s. 5. 
5
X of 1908. 
(b) where such person owe s a loan to a co -operative society or a co -
operative bank, whether due immediately or on a future date, it is 
certified by the Registrar, where the loan owed by such person 
exceeds rupees 
1
[five hundred thousand], and by the Assi stant 
Registrar, where the loan owed by such person does not exceed 
rupees 
2
[five hundred thousand], that either satisfactory arrangements 
have been made for the repayment of the loan or that the loan has 
been secured in accordance with the provisions of section 7.  
 (2) Where an ap plication is made to the Registrar or an Assistant 
Registrar, as the case may be, for issuing a certificate under the provisions of sub -
section (1), he shall not refuse to issue the certificate unless he has first given the 
applicant an opportunity of bein g heard and adducing evidence to show that either 
satisfactory arrangements have been made for the repayment of the loan owed by 
the applicant or that the loan has been secured in accordance with the provisions of 
section 7. 
 (3) An order made by the Regis trar or an Assistant Registrar under sub -
section (2) refusing to issue a certificate, shall be final and not open to question in 
any manner.] 
3
[8-B. Restrictions on alienations .– (1) Where any person owing a loan, whether 
due immediately or on a future date, to a co-operative society or a co-operative bank 
has, on or after the twenty -seventh day of April, 1966, alienated any immovable 
property, by sale, exchange, gift, mortgage or will, otherwise than by or under an 
order or decree of a Civil, Revenue or Cr iminal Court, which alienation is fraudulent 
with intent to defeat the claim of a co -operative society or a co -operative bank, such 
alienation shall not operate to transfer any right, title or interest in the property of the 
debtor, unless–  
(a) the loan due from the debtor has been repaid; or  
(b) it is certified by the Registrar, where the loan exceeds rupees 
4
[five 
hundred thousand], and by the Assistant Registrar, where the loan 
does not exceed rupees 
5
[five hundred thousand] , t hat either 
satisfactory a rrangements have been made for the repayment of the 
loan or that the loan has been secured in accordance with the 
provisions of section 7.  
 (2) An alienation of immovable property shall be deemed to be fraudulent 
with intent to defeat the claim of a co-operative society or a co-operative bank for the 
 
1
Substituted for the words “thirty thousand” by the Punjab Co -operative Societies and Co -operative Banks (Repayment of 
Loans) (Amendment) Act, 1992 (II of 1992), published in the Punjab Gazette (Extraordinary), dated June 4, 1992, pp. 2903-E-
2903-G, s. 7. 
2
Ibid. 
3
Inserted by the West Pakistan Co -operative Societies and Co -operative Banks (Repayment of Loans) (Amendment)  
Ordinance, 1966 (XXV of  1966), published in the Gazette of West Pakistan (Extraordinary), dated August 7, 1966, pp. 2223 -
2227, s. 5. 
4
Substituted for the words “thirty thousand” by the Punjab Co -operative Societies and Co -operative Banks (Repayment of 
Loans) (Amendment) Act, 1992 (II of 1992), published in the Punjab Gazette (Extraordinary), dated June 4, 1992, pp. 2903-E-
2903-G, s. 8 
5
Ibid. 
purposes of sub -section (1), if the Registrar, after giving the person by whom the 
alienation has been made, and the person or persons in whose favour the alienation 
has been made, an opportunity of being heard, issues a declaration to the effect that 
the alienation is fraudulent with intent to defeat the claim of a co -operative society or 
a co-operative bank. 
 (3) Any party aggrieved by a decision made by the Registrar under sub -
section (2) may prefer an appea l to Government against such decision, and the 
order made by Government on such appeal 
1
[passed after giving an opportunity of 
being heard to the appellant] shall be final and shall not be open to question in any 
manner.] 
9. Power of Registrar when making inquiry.– The Registrar or the Assistant 
Registrar, as the case may be, shall, for the purpose of making any inquiry under this 
Ordinance, have the same powers as are vested in a Civil Court under the Code of 
Civil Procedure, 1908 (A ct V of 1908), when try ing a suit, in respect of the following 
matters, namely:– 
(a) summoning and enforcing the attendance of any person and examining 
him on oath; 
(b) requiring the discovery or production of any document; 
(c) requisitioning any public record from any Court or office; 
(d) issuing commissions for the examination of witnesses; 
(e) appointing guardians or next friends of persons who are minors or of 
unsound mind; 
(f) adding legal representatives of deceased borrowers or sureties; 
(g) substituting the names of right ful parties, including the beneficiaries of 
benami loans; 
(h) consolidation of cases; 
(i) any other matter which may be prescribed by rules made under section 
12; and 
(j) enforcing any order made by him under the provisions of this 
Ordinance or the rules framed thereunder. 
2
[9-A. Revision.– (1) When any decision or award is made by the Registrar, the 
Government may, at any time, suo-moto, call for and examine the record of any 
inquiry or proceeding relating thereto for the purpose of satisfying itself as to  the 
legality or propriety of such decision or award.   
 (2) When any decision or award is made by a Deputy Registrar exercising 
the powers of the Registrar or by an Assistant Registrar, the Registrar may call for 
and examine the record of any inquiry or p roceeding relating thereto for the purpose 
of satisfying himself as to the legality or propriety of such decision or award.  
 
1
Added by the Punjab Co -operative Societies and Co -operative Banks (Repayment of Loans) (Amendment) Ordinance, 1985 
(IX of 1985), published in the Punjab Gazette (Extraordinary), dated February 23, 1985, s. 2. 
2
Added by the West Pakistan Co -operative Societies and Co -operative Banks (Repayment of Loans) (Punjab Amendment) 
Ordinance, 1972 (III of 1972), published in the Punjab Gazette (Extraordinary), dated February 15, 1972, pp. 128-A-128-C, s. 2. 
 (3) If, after examining the aforesaid record, the Government or the 
Registrar is of the opinion that any decision or award should be modified, annulled or 
reversed, the Government or the Registrar, as the case may be, may, after giving the 
parties an opportunity of being heard, pass such order thereon as may be deemed 
just and proper, and the order so passed shall be final and conclusive.  
 (4) Any order passed by the Registrar in exercise of his revisional powers 
shall not be further revisable by Government.] 
10. Penalty.– Whoever contravenes any of the provisions of this Ordinance or the 
rules made thereunder sha ll be punishable wit h imprisonment for a term which may 
extend to seven years, or with fine, which, in the case of default in the repayment of 
a loan, shall not be less than one -fourth of the amount of the loan outstanding 
against him, or with both. 
11. Procedure.– 
1
[(1)] No Court shall take cognizance of any offence under this 
Ordinance except on a complaint in writing made by the Registrar or an Assistant 
Registrar, or by a person duly authorised by the Registrar or Assistant Registrar. 
 
2
[(2) Notwithstanding anything to the  contrary contained in the Code of 
Criminal Procedure, 1898, the provisions of Chapter XX of the said Code shall apply 
to the trial of cases under this Ordinance.] 
12. Power to make rules .– Government may, by notification in the Officia l 
Gazette, make rules to carry out the purposes of this Ordinance. 
13. Bar of Jurisdiction.– (1) No Court or other authority shall have jurisdiction– 
(a) to entertain or adjudicate upon any matter which 
3
[Government, the 
Registrar] or the Assistant Registr ar is empowered by o r under this 
Ordinance or the rules framed thereunder to dispose of or determine; 
or 
(b) to question the legality or validity of anything done under this 
Ordinance or the rules framed thereunder by 
4
[Government, the 
Registrar] or Assistant Registrar. 
 (2) No Court or other authority shall be competent to grant an injunction or 
other order in relation to any proceedings before 
5
[Government, the Registrar] or the 
Assistant Registrar, or anything done or to be done by or at the instance of 
 
1
Re-numbered by the West Pakistan Co -operative Societies and Co -operative Banks (Repayment of Loans) (Punjab 
Amendment) Ordinance, 1972 (III of 1972), published in the Punjab Gazette (Extraordinary), dated February 15, 1972, pp. 128-
A-128-C, s. 3. 
2
Added by the Ordinance ibid. 
3
Substituted for the words “the Registrar” by the West Pakistan Co -operative Societies and Co-operative Banks (Repayment of 
Loans) (Amendment) Ordinance, 1966 (XXV of 1966), published in the Gazette of West Pakistan (Extraordinary), dated August 
7, 1966, pp. 2223-2227, s. 6. 
4
Ibid. 
5
Ibid. 
1
[Government, the Re gistrar] or the Assistant Registrar under this Ordinance or the 
rules framed thereunder. 
 
1
Ibid.