COOPERATIVE SOCIETIES (REPAYMENT OF LOANS) ORDINANCE, 1960

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THE COOPERATIVE SOCIETIES (REPAYMENT OF LOANS) 
ORDINANCE, 1960 
(XXXIV of 1960) 
CONTENTS 
1. Short title, extent and commencement. 
2. Definitions. 
3. Repayment of Loans, etc. 
4. Determination of liability to repay, etc. 
5. Power of Registrar when making inquiry. 
6. Power to make Rules. 
7. Penalty. 
8. Procedure. 
 
 
 
TEXT 
1
THE COOPERATIVE SOCIETIES (REPAYMENT OF LOANS) ORDINANCE, 
1960 
(XXXIV of 1960) 
[15 August 1960] 
An 
Ordinance 
to provide for the repayment of certain unsecured loans or loans insufficiently 
secured. 
 WHEREAS it is expedient to provide for the repayment of such loans taken 
from Cooperative Banks and other Cooperative Societies as have not been secured 
or are insufficiently secured; 
 NOW, THEREFORE, in pursuance of the Proclamation of the seventh day of 
October, 1958, and in exercise of all powers enabling him in that behalf, the 
President is pleased to make and promulgate the following Ordinance:– 
1. Short title, extent and commencement .– (1) This Ordinance may be called 
the Cooperative Societies (Repayment of Loans) Ordinance, 1960. 
 (2) It extends to the whole of Pakistan. 
 (3) It shall come into force at once. 
2. Definitions.– In this Ordinance, unless there is anything repugnant in the 
subject or context– 
(a) “Cooperative Bank” means a Cooperative Socie ty established for 
carrying on banking business and having as its principal object the 
financing of other Cooperative Societies, and includes cooperative 
societies known as Banking Unions and Zamindari Banks; 
(b) “Cooperative Society” means a society which , having as its object the 
promotion of the common interests of its members in accordance with 
cooperative principles or having been established with the object of 
facilitating the operation of such a society, is registered under the 
Cooperative Societies Act, 1912 (II of 1912), or under any other law for 
the time being in force relating to the registration of cooperative 
societies; 
(c) “loan” means loan, whether of money or in kind, which has not been 
secured or is insufficiently secured and taken– 
                                                           
1This Ordinance was promulgated by  the President of Pakistan on August 1, 1960 , published in the Gazette of Pakistan 
(Extraordinary), dated August 15, 1960, pp. 1375-1378; saved and given permanent effect by Article 225 of the Constitution of 
the Islamic Republic of Pakistan (1962). It has  been adopted by the Punjab Laws (Adaptation) Order, 1974 (Pb. A.  O. 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 read with Schedule, Part I, Serial No. 25. 
(i) from a cooperative society, not being a Cooperative Bank, by 
any person other than a member of such society, or 
(ii) from a Cooperative Bank by any person, including any member 
thereof, but not a cooperative society, and includes any 
transaction which, in the opinion of the Registrar, is in substance 
a loan as aforesaid; 
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 c ase of a loan not exceeding thirty thousand rupees, the 
cooperative society concerned, and, in the case of a loan exceeding thirty thousand 
rupees, the Registrar, may think adequate. 
 (d) “Registrar” means:– 
(i) 
1
[ * * * * * * * *   ] 
(ii) 
2
[ * * * * * * * *   ] 
(iii) in relation to a cooperative society in 
3
[the Punjab], the Registrar 
of Cooperative Societies, 
4
[Punjab]. 
3. Repayment of Loans, etc.– Notwithstanding anything contained in any other 
law for the time being in force, or in any agreement or othe r instrument, every loan 
repayable on any day earlier than one year preceding the commencement of this 
Ordinance and every loan any installment whereof was payable as aforesaid and 
has not been so paid, shall unless repaid earlier, be repaid and secured in  the 
following manner, that is to say– 
(a) not less than twenty per cent of the loan repayable as aforesaid shall 
be paid within six months from the commencement of this Ordinance; 
and 
(b) the balance of the loan after payment as aforesaid shall, within tw o 
months from the expiry of the period mentioned in clause (a), be 
secured by mortgage, pledge, hypothecation or assignment of such 
property of the borrower or of his surety or of both as, in the case of a 
loan not exceeding thirty thousand rupees, the coo perative society 
concerned, and, in the case of a loan exceeding thirty thousand 
rupees, the Registrar, may think adequate, and shall be repaid in such 
installments within a period not exceeding two years from the 
commencement of this Ordinance as the coop erative society or the 
Registrar, as the case may be, directs: 
 Provided that the Registrar may, if he considers necessary, in cases in which 
not less than fifty per cent of the loan has been repaid within the aforesaid period of 
two years, extend the peri od by a further period, and such further period shall not 
exceed six months. 
                                                           
1Deleted 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 read with Schedule, Part I, Serial No. 25.  
2Ibid. 
3Substituted for the words “West Pakistan” by the Order ibid. 
4Ibid. 
4. Determination of liability to repay, etc.– (1) Every cooperative society shall, 
within thirty days of the commencement of this Ordinance, or within such further 
period as the Registrar may, in special circumstances, allow, furnish to the Registrar 
full information in respect of all cases of loans required to be repaid or secured under 
section 3.  
 (2) On receipt of information under sub -section (1) in respect of any loan, 
the Registrar shall cause notice to be issued to the borrower requiring him to repay 
and secure the loan in accordance with the provisions of section 3. 
 (3) Where any borrower to whom notice under sub -section (2) is issued 
does not admit the loan, or any liabil ity arising therefrom, he shall, within thirty days 
of the receipt of notice, or within such further period as the Registrar may, in special 
circumstances, allow, submit, either personally or by registered post 
(acknowledgment due), a written statement to that effect to the Registrar, who 
thereupon shall cause notice to be issued to the cooperative society concerned, and 
shall, after making such inquiry as he considers necessary, and giving the parties 
reasonable opportunity of being heard, decide the matter. 
 (4) The decision of the Registrar under sub -section (3) shall be final, and 
shall not be called in question in any court. 
5. Power of Registrar when making inquiry .– The Registrar shall, for the 
purpose of making any inquiry under this Ordinance, have the same powers as are 
vested in a civil court under the Code of Civil Procedure, 1908  (Act V of 1908), when 
trying a suit, in respect of the following matters, namely:– 
(a) summoning and enforcing the attendance of any person and examining 
him on oath; 
(b) requiring the discovery or production of any document; 
(c) requisitioning any public record from any court or office; 
(d) issuing commissions for the examination of witnesses; 
(e) appointing guardians or next friends of persons who are minors or of 
unsound mind; 
(f) adding legal representatives of deceased borrowers or sureties; 
(g) substituting the names of rightful parties; 
(h) consolidation of cases; and 
(i) any other matter which may be prescribed by rules made under section 
6. 
6. Power to make Rules .– The 
1
[Provincial Government] may, by notification in 
the official Gazette, make rules to carry out the purposes of this Ordinance. 
7. Penalty.– Whoever contravenes any of the provisions of this Ordinance or the 
rules made thereunder shall be punishable w ith imprisonment for a term which may 
extend to two years, or with fine, or with both. 
                                                           
1Substituted for the words “Central Government” by the Central Adaptation of Laws Order, 1964  (1 of 1964), published in the 
Gazette of Pakistan (Extraordinary), dated May 28, 1964, pp. 251c-251am, Article 2(i) read with Schedule. 
8. Procedure.– No court shall take cognizance of any case under this 
Ordinance except on a complaint in writing made by the Registrar.