BYE-LAWS OF A CO-OPERATIVE HOUSE-BUILDING SOCIETY

II. BYE-LAWS OF A CO-OPERATIVE HOUSE-BUILDING SOCIETY


I. PRELIMINARY

1. The name of the Society is ________________________________ COOPERATIVE HOUSE BUILDING SOCIETY LIMITED and its registered address is __________________________________________________ ___________________________________________________________ Any change in the address shall be notified to The registrar within 14 days.

2. In these bye-laws unless there is anything repugnant to the subject or context, the expression “the Act” means the Delhi Co-operative Societies Act. 1972 (No. 35 of 1972), and the words and expression defined in the Act and used in these bye-laws shall have the same meaning as assigned to them in the said Act and the Rules. “The Rules” means the Delhi Co-operative Societies Rules, 1987.

II. OBJECTS

3. The objects of the Society shall be:
(i) To acquire either through out-right purchase or on lease, land for –
(a) The construction of houses, for giving to members, either on rent on hire-purchase system or by out-right sale;

(b) Allotment of plots to its members, on such terms and conditions as may be fixed by the Society in accordance with these bye-laws, for the construction of houses by the members for their own use;

(c) To arrange to supply, either on commission or otherwise, building material to its members for the construction of houses by them (members) for their own use on the land allotted to them (members) by the Society;

(d) To advance loans to its members for building houses for residential purpose;

(e) To undertake welfare activities for members and their families;
(f) To do all such things as are incidental or conducive to the attainment of any or all of the above objects.

III. MEMBERSHIP

4. The members shall consist of:
(i) The persons joining in the application for registration;
(ii) Persons admitted in accordance with these bye-laws;

(iii) Normal or associate members subject to conditions as laid down in Rule 26;

(iv) The Society may admit joint members provided they make a declaration in writing that the person whose name stands first in the share certificate shall have the right to vote and all the liabilities will be borne jointly and severally by them as provided in the Act. Rules and bye-laws;

(v) In accordance with the procedure laid down in the bye-laws and Rules for admission of any member, the store may admit minors and persons of unsound mind inheriting share or interest of deceased members as its members through their legal representatives or guardians respectively. The members so admitted will enjoy such rights and liabilities as are laid down in these bye-laws and which are consistent with the Act. and Rules.

5. (i) No person shall be a member unless:
(a) He is a resident in ______________________________________;
(b) His written application for membership has been approved by the Managing Committee;

(c) His age is more than 18 years, except in the case of minor heir of a deceased member;

(d) He is not a member of any other House Building Society/Group Housing Society;

(e) He or his wife (she or her husband in case of a women) or any of his/her dependent does not own a plot or a welling house in Delhi;

(f) He, directly or indirectly, does not deal in purchase or sale of houses or land for construction of houses either himself or through any of his dependents;

(g) He has carried out the provisions of bye-laws 11.

(ii) Every person seeking membership of the Society shall sign a declaration to the effect that he or his wife (she or her husband) or any of his/her dependents does not own a dwelling house or plot in Delhi and that he/she is not a member of any other Co-operative House Building Society.

(iii) Every member on admission shall pay Rs.10/- as admission fee which shall not be refunded in any case.

(iv) When a person’s application has been accepted by the Committee and he has paid his admission fee and first installment of his share, he shall be deemed to have acquired all the rights and incurred all the obligations and liabilities of a members of the Society as laid down in the Co-operative Societies Act. the Rules made there under and these bye-laws.

(v) Application for admission as member and for allotment of shares shall be made to the Secretary in the form, prescribed by the Society for the purpose. Every such application shall be disposed off by the Managing Committee who shall have power to grant admission or to refuse it after recording reasons for such refusal, provided however, that any person whose application has been refused by the Managing Committee may prefer an appeal within 30 days to the Registrar, Co-operative Societies. Thee decision of the Registrar shall be final.

6. Original members are exempted from the provisions of bye-laws 5(I)(b).

7. A MEMBER OF THE society may be expelled by a two-third majority of vote of the members present at a general meeting which shall be called by the Managing Committee for this purpose, within one month of the date of suspension of the member concerned after giving him reasonable opportunity to submit his explanation:

(1) if he makes default in the payment of instalments of his shares, and land, development cost; or

(2) if he has applied for bankruptcy; or
(3) if he joins any other House Building Society; or
(4) if he is convicted of a criminal offence involving dishonesty and moral turpitude; or

(5) if he intentionally does any act likely to injure the credit of the Society or fail to observe proper discipline in regard to the work of the Society; or

(6) for any action which may be held by the Managing Committee or the General Meeting to be dishonest or contrary to the stated objects of the Society, its activities or to the spirit and interest of co-operation; or

(7) incurs any of the disqualifications as contained in Rule 25.

An opportunity shall be given to a member before expulsion from membership to represent his case to the Society and expulsion shall not be effective unless it is approved by the Registrar.

8. A person ceases to be a member:
(i) On death; or
(ii) For lack of confirmation of membership as per bye-law (5)(i) [bye-law 5(i)(b)]; or

(iii) When his resignation is accepted by the Managing Committee; or
(iv) On expulsion under bye-law 7; or
(v) On withdrawal after 3 months notice in writing to the Society, provided that the member withdrawing does not owe anything to the Society and is not a surety for an unpaid debt. Withdrawal will take effect from the date of disposal of his shares as provided in these bye-laws; or

(vi) On ceasing to hold the minimum number of shares prescribed in these bye-laws; or

(vii) On undertaking the business of purchase and sale of houses or land for construction of houses either directly or indirectly or on purchasing house or a plot of land or for construction of house either in his own name or in the name of any of his dependent through any other source and the member shall, within one month of his undertaking the said business of purchase of a house or a plot of land shall inform the Society about this.

9. (1) A member or the nominee or successor of an ex-member may transfer his shares to another member or applicant qualified under bye-law 5 and approved by the Committee or to a share transfer fund created by the Society out of its profits and shall then be paid the value of his share, less any sum due from him to the Society. No transfer of share or interest shall, however, be made unless a member has held such shares for not less than one year but the condition of bye-law will not be applicable to the nominee or legal heir of the deceased member.

(2) The value of the share shall in no case be more than the sum received by the Society in payment thereof.

(3) A member on withdrawal, whether voluntarily or through the action of the society shall subject, however, to the rules of the Society have no claim on the funds or property of the Society of any kind.

IV. CAPITAL
10. The Capital shall be comprised of:
(a) Under mentioned number of shares of the value of Rs.100 each;
(b) Loans and deposits from non-members and members;
(c) Donations and grants;
(d) Contributions of the cost of houses, land, maintenance of roads, drains and parks etc.

(e) Other funds; and
(f) Realized profits;

Provided that the acceptance of deposits and loans from non-member shall be subject to any restriction which the Registrar may impose from time to time.

The Capital of the Society shall be used in carrying out its objects. Surplus funds of the Society not likely to be immediately required, shall be invested in accordance with section 49 of the Act.

11. Every member shall purchase atleast one share and no member shall hold shares of which the nominal value exceeds Rs.20,000 or exceeds 1/5th of the total subscribed whichever is less. If any member by inheritance or otherwise becomes possessed of more than the maximum holding permitted by this rule, the Managing Committee shall have power to sell the excess number or buy them on behalf of the Society and to hold the proceeds at his disposal. A member will not be entitled to pay towards his second and subsequent share until the first or provisions one has been paid in full.


12. Shares may be paid up in a single payment.


13. (a) A share certificate shall be issued under the seal of the Society after the full amount of share money in respect of shares, has been paid. Share certificate shall be signed by the President, one member of the Committee authorized by the Committee for the purpose, and Secretary of the Society.

(b) If a share certificate is lost or destroyed, a duplicate shall be issued on payment of Rs.2.

14. If the payment due on account of share remains unpaid for more than 3 months the Committee may declare such shares forfeited together with all payment made thereon and the right of membership attaching to these shares shall thereupon be extinguished. The committee may allow such shares to be restored provided:

(a) That all arrears, together with such penal interest as the Committee may demand are paid-up;

(b) That ordinarily such payment be made within three months of the date of forfeiture; and

(c) The amount of forfeited shares shall be credited to Reserve Fund of the Society.

15. Share shall not be withdrawn or repair or transferred otherwise than as provided in bye-laws.

16. Every member may nominate a person or persons to whom on death, his shares shall be transferred but no member may nominate more than one person, unless he holds more than one share and in case unless the amount available for transfer, as the case may be is duly specified when the nominee is appointed and he shall attest the nomination by putting his signature or thumb impression in the Register of members. If not admitted to membership the nominee or nominees shall be paid the value f the shares of the deceased, and if there are more than one nominee, the amount to be deducted shall be set off against the amount due to each nominee in proportion to his interest.

17. The Society shall have the right to set off any money due on any account from the Society to a member or past member or person claiming through him in payment of any sum which he owes to the Society, or for which he stands surety.


V. LIABILITY


18. The liability of the members for meeting any deficit in the assets of the Society on liquidation shall be limited to five times the face value of their subscribed shares.


VI. GENERAL MEETING


19. The first General Meeting of the members shall have the same powers as are herein given to the Annual Meeting.

20. (a) The preliminary General Meeting shall be called within a period of not less than one month and not more than three months from the date of its registration. In this meeting the following business shall discussed and decided:

(i) Approval of allotment of shares, amount collected and amount spent in connection with the registration of the Society before registration;

(ii) Election, if any, of the members of the Committee other than nominated members, subject to the provisions of Section 31(1);

(iii) Programme of activities and the budget estimates for the ensuing year.

b) The Annual General Meeting shall be called within a period of 3 months of the close of Co-operative Year. A special General Meeting may be called at any time by the Managing Committee and shall be called by the Secretary on receipt of a requisition from 1/5th of the total number of members or from the Registrar, Co-operative Societies or any person authorized by him.

c) In case of the Annual General Meeting, time and place of the meeting shall be announced at least 14 days early in advance and in case of Special General Meeting at least 7 days clearly in advance and in case of Special General Meeting at least 7 days in advance, by a written notice published on the Notice Board of the Society and circulated to the members.

d) The presence of 1/3rd of the total number of the members subsisting as such on the date of notice of the meeting subject to a minimum of 10 members shall be necessary for the disposal of any business at General Meeting. Each member shall have one vote irrespective of the shares held by him. The Chairman shall have a casting vote in addition. No proxy shall be allowed.

e) Provided that THE registrar may be general or special order, extend the period for holding such meeting for a further period not exceeding 3 months.

f) Provided further that if such meeting is not held by the Society within the extended period, if any, granted by the Registrar, he or any person authorized by him may call such meeting in the manner prescribed and that meeting shall be deemed to be the General Meeting duly called by the Society and the Registrar may order that the expenditure incurred in calling such a meeting shall be paid out of the funds of the Society or by such person or persons who, in the opinion of the Registrar were responsible for the refusal or failure to convene the General Meeting.

g) If within an hour from the time appointed for the meeting, quorum is not present, the meeting shall stand adjourned for one hour and will be held at the same place for which no quorum is required but if the meeting is called upon the requisition of the members not the Registrar, it shall stand dissolved.

h) The agenda proposed for the Annual General Meeting and Special General Meeting shall be dispatched to all members 14 days and 7 days in advance respectively before the date of the meeting, giving date, time and place of meeting. No matter shall be discussed at any meeting, which has not been included in the agenda of the meeting provided that the Chairman may in case of emergency permit the discussion of such matters, when the majority of member present so desire.

i) The President or the Vice-President or in their absence one of the other members elected for the purpose shall preside.

21. The duties and powers of the General Meeting are:
(1) To elect, suspend or remove members of the Managing Committee, including a President and one or more Vice-Presidents and if the number of members in the Society exceeds 20, to elect a Committee of Control:

(2) To receive from the Committee a report on the proceding year’s working of the Society together with a statement showing the receipts and expenditure, assets and liabilities and profit and loss for the year;

(3) To consider the audit note/inspection note of the Registrar, or Financing Institution and any other communication from the Registrar;

(4) To dispose off profits in accordance with the Act. notified Rules and bye-laws;

(5) To discharge any member of the Managing Committee on the recommendation of the Committee of Control which may for these purposes cail a General Meeting at any time;

(6) To consider the reports of the Committee of Control together with comments, if any, of the Managing Committee thereon and action to be taken on the recommendation contained with regard to any matter emerging from that report;

(7) To fix the maximum credit limit for each member provided that such maximum limit shall not be more than that laid down in the Registrar’s instruction on the subject but this may be exceeded with the special sanction of the Registrar to be obtained in each case:

(8) To fix subject to the approval of the Registrar the maximum liability to be incurred during the following year, in loans or deposits from non-members;

(9) To amend ‘he bye-laws, subject to the sanction of the Registrar;
(10) To expel members subject to the approval of the Registrar;

(11) To fix the terms of and the rates at which penal interest shall be charged by the Managing Committee on overdue instalments which shall not exceed 3% over the normal rate of interest.

(12) To consider any other business brought forward for which the Managing Committee is not authorized or is unable to transact.

22. All business discussed or decided at a General Meeting shall be recorded in a proceedings book which shall be signed by the Chairman of the meeting.

23. Amendments to the bye-laws shall only be carried out by a majority of not less than two-third of the members present in a General Meeting in which due notice of the intention to discuss such amendments has been given and amendments shall be forwarded to the Registrar for registration within a period of 3 months from the date of meeting.

(a) If it appears to the Registrar that an amendment of bye-laws of the Cooperative Society is necessary or desirable in the interest of such Cooperative Society he may call upon the Society to make the amendment;

(b) The Registrar may be serving a notice inform/call upon a Society to make an amendment within a period not exceeding sixty days;

(c) After the expiry of the period specified in the notice and if the Society fails to make the amendments, the Registrar after giving the Cooperative Society an opportunity of being heard, may register the amendment and issue to the Cooperative Society a copy of such amendment certified by him with a certificate signed by him. With effect from the date of registration, the amendment is binding on the Cooperative Society and its members subject to appeal, if any;

(d) All amendments of the bye-laws relating to the same Cooperative Society when registered by the Registrar shall be assigned a consecutive number in chronological order and shall be noted in index to the bye-laws to be maintained by the Cooperative Society in the registration file. All other questions before the General Meeting shall be decided by a majority of vote.


VII. MANAGING COMMITTEE


24. (a) The Managing Committee shall consist of not less than 5 members of the Society and note more than 15, over the 21 years including a President and one or more Vice-Presidents. The President or Vice-President or in their absence one of the other members elected for the purpose shall preside. Each member of the Committee shall have one vote but the President shall have a casting vote in addition.

(b) Committee members shall be elected and hold office for three years and shall be eligible for re-election, but no member shall be eligible for holding the office of the President, Vice-President, Chairman, Vice-Chairman, Managing Director, Secretary, Joint Secretary and Treasurer for more than two consecutive terms whether full or part. These office-bearers shall also not be eligible to hold such offices on a Committee of another Cooperative Society of the same type or on the Committees of more than three different type of the Society. 1/3 Members of Committee shall retire every year by rotation through draw of lots.

(c) The election of the Managing Committee shall be by secret ballot in the manner given in Schedule II of Rule 58 of the Delhi Co-operative Societies Rules, 1973.

(d) The meeting of the Committee shall be held when necessary and shall be called the Secretary on receipt of a requisition from three or 1/3rd members of the Managing Committee, whichever is more or from the Registrar, Co-operative Societies, or any person authorized by him. The Managing Committee shall cause minutes of all proceedings of its meetings to be entered in the book for the purpose in hand written at the spot in the presence of members present and voting. The minutes of each meeting shall contain the names of the members, if any, dissenting from or not concurring in any resolution. At the end of the minutes, each member present and voting shall sign them. If the minutes are not made and recorded in this manner, they shall not be considered valid and it shall be presumed that no such meeting was duly called and held. Five days notice shall be given to Managing Committee Members for Meeting but emergent Meeting can be called by giving 24 Hours notice in person.

(e) The meeting shall be held as often as required but a meeting shall be held atleast once in every month.

25. A member of the Committee shall cease to hold office if he:
(1) ceases to be a member of the Society;
(2) applied for insolvency or is declared insolvent;
(3) becomes of unsound mind;
(4) if convicted of any offence involving dishonesty or moral turpitude:
(5) accepts any office of profits under the Society or receives any honorarium.

(6) Carries on business on his own account similar to that as specified in bye-law 3(ii).

(7) Resigns and his resignation is accepted by the Committee;
(8) Fails to attend three consecutive meetings of the Committee.

26. The Committee shall exercise all the powers of the Society except those reserved for the General Meeting subject to any regulations, restrictions laid down by the Society in a General Meeting or in the bye-laws and in particulars shall have the following powers and duties:

(1) To observe in all their transactions, the Act. the notified Rules and these bye-laws;

(2) To maintain true and accurate account of all money received, expended and all stock brought or sold;

(3) To keep a register of member correct and up-to-date.
(4) To keep true account of assets and liabilities of the Society.
(5) To prepare and lay before the General Meeting the annual profit and loss account and audited balance sheet;

(6) To examine the accounts, sanction contingent expenses and annual profit and loss account and audited balance sheet;

(7) To consider the inspection notes of the Registrar or of any other person authorized to inspect by the Registrar or financing institution and take necessary action.

(8) To elect new members and issue new shares and transfer old shares;
(9) To arrange for the recovery of shares instalments;
(10) To summon General Meetings in accordance with bye-laws;
(11) To contract loans subject to any restriction imposed by the Registrar or General Meetings and to make necessary arrangement for its repayment.

(12) To decide the terms on and the period for which loans are to be given, to approve, reject the security, to arrange for the recovery of loans and interest and to impose and recover penal interest on overdue instalments as laid down by the General Meeting and to sanction, renew loans when necessary;

(13) To decide the terms on, the period for and the rates of interest at which deposits are to be received and arrange for the payment of such deposits;

(14) To watch that the loans are applied to the approved purposes for which they were made;

(15) To assist in the inspection of the books, other documents and papers of the Society by any person authorised to see them;

(16) To appoint, suspend, punish and dismiss employees;
(17) Through any member or officer-bearer or employee of the Society or any other person specially authorised, to conduct, defend, compromise, refer to arbitration or abandon legal proceedings by or against the Society or Committee or the officer or employees concerning the affairs of the Society;

(18) To acquire on behalf of the Society shares in other registered Co-operative Societies;

(19) To fix the rate of interest on loans to members subject to bye-law No.48;

(20) To arrange for the custody of books and to appoint one of its members or one of the officer of the Society resident in area of operation to take charge of all the registers and papers prescribed in these bye-laws.

(21) To invest the surplus funds of the Society in accordance with Section 49 of the Co-operative Societies Act;

(22) To acquire and hold property and to enter into contracts on behalf of the Society;

(23) To fix the maximum credit limit of each member in accordance with the instructions of the Registrar, subject to the approval of the General Meeting. This limit will be fixed only when a member files a declaration giving the amount of his debts secured and unsecured with the rate of interest. The proposal for maximum credit limit of a member of the Committee shall be brought before the General Meeting in a separate detailed resolution and shall not be included in the proposal for maximum credit limits of other members.

(24) To decide the manner of execution of work and its allotment to members and employees;

(25) To appoint a Treasurer to keep the money of the Society and require him to give such security as it may deem sufficient;

(26) To elect a Secretary out of the Managing Committee Members;
(27) To distribute the duties between the Secretary and Manager, if necessary;

(28) To coopt. Members against the vacancy caused by the resignation or disqualification of any member of the Managing Committee.

In the conduct of the affairs of the Society, the Committee shall exercise the prudence an diligence of ordinary men of business and shall be responsible for any loss sustained through Acts contrary to the Law, Rules and these bye-laws.

27. No member of the Committee shall receive any remuneration for his work as a member of the Committee. No member of the Committee shall vote in any application for a loan in which he himself is interested as a borrower nor shall he stand surety for loan to another Member of the Committee.

28. All business discussed or decided at a meeting of the Committee shall be recorded in Minutes Book which shall be signed by the Chairman of the Meeting and all members of the Committee present.

29. The Committee may appoint from amongst its own members a Sub-Committee and may delegate to it or any officer of the Society such of its own powers as it may consider desirable for the better conduct of the Society’s affairs. The Sub-Committee or officers, shall in the discharge of the function entrusted to them, conform in all respects to these bye-laws and to the instructions given by the Managing Committee.


VIII. COMMITTEE OF CONTROL


30. The Committee of control shall consist of three members whose duty will be to get all accounts examined and internally audited atleast once in every quarter and to report at the end of the year on the financial position and working to the Society. The Committee of Control shall meet atleast once in a month.

31. The Committee of Control has right to examine any papers at any time and to be present at all inventories and stock taking. It has also, the right of making suggestion to the Managing Committee for the removal of the Managing Committee or any member or Members of the Committee or any of the employees.

32. The Committee of the Society shall specify which of the officers of the Society shall –

(a) Keep the books of accounts;
(b) Keep other books and registers;
(c) Prepare returns and statements;

Provided that a person charged with the keeping of accounts shall not be the Incharge of Cash.

(2) If the Committee of a Cooperative Society has not specified the officers required to be specified in sub-rule (1) notwithstanding anything contained in the bye-laws of the Society, the following officers shall be responsible for keeping accounts, records, etc. indicated against cash namely:

(a) Treasurer: He shall keep or cause to be kept all the books of account and vouchers and shall prepare or cause to be prepared Annual Profit and Loss Accounts. Receipt and Disbursement Account and the Balance Sheet, whosever may be writing these books of accounts, they shall always be deemed to be in his custody, possession, power and control. He shall be responsible for their safe delivery to his successor after making a list of documents handed and taken over.

(b) Secretary: He shall keep or cause to be kept all other records of the Society and shall be responsible for preparation and submission of various returns to the Registrar, whosever may be keeping these records, these shall always be deemed to be in his custody, possession, power and control. He shall be responsible for making over the charge of this record to his successor under proper charge report to be signed by the relieving and the relived officers.

(c) Cash: Cash balance in hand shall remain in the hands of the Treasurer or any other officer appointed by the Committee.

33. Every Co-operative Society shall from time to time determine at a Meeting of the Committee the minimum numbers of paid staff required for its business. The Committee shall prescribe their qualifications and experience and the emoluments. The Committee shall be competent to appoint, dismiss or remove any paid staff.

34. The minimum paid staff for the Cooperative Bank and any Cooperative Society with a Working Capital or annual transaction of rupees five lakhs or over shall be:

(i) One Secretary or Manager.
(ii) One Accountant;
(iii) One Cashier.


IX. REGISTERS


35. The following registers and papers shall be maintained and shall be open to the inspection of any one interested in its funds, except that no one shall be allowed to see the deposit account of any person without that person’s consent in writing:

(1) A register of members showing the name, address and occupation of every member, the number of shares held by him, the date of admission to membership, date of termination of membership and the nominee appointed under bye-laws;

(2) Cash Book showing the income, expenditure and balance on each day on which business is done:

(3) A ledger account for each member, depositor, creditor and miscellaneous and contingent income and expenditure by the Society;

(4) A register showing the maximum credit limit of each member;

(5) An account showing monthly instalments of shares and deposits;

(6) A Minute book;

(7) A register showing the monthly instalments for payment of loans;

(8) A book of bonds for all loans issued;

(9) A share allotment register;

(10) The register of application for membership containing the name and address of the applicant, the date of receipt of application, the number of shares applied for and in case of refusal, the date of communication of the decision refusing admission to the applicant; and

(11) Any other register prescribed by the Registrar.


X. COMPULSORY DEPOSIT


36. Copies of the Bye-laws and Balance Sheet shall be supplied free on demand to any member. The last Balance shall be open to public inspection during office hours.

37. The Committee shall appoint one of its member or one of the officer of the Society to take hold and keep in safe custody all the registers prescribed in bye-law 35 and other papers in use of the Society.

38. (1) Every member shall subscribe atleast Rs.___________ per month towards compulsory deposits and may also contribute towards any of savings, deposits.

(2) Such deposits shall be governed by rules to be framed by the Society subject to the approval of the Registrar.

(3) With the sanction of the Committee, a member may be exempted from the obligation to deposit for any period during which his circumstances do not permit of such payment.


XI. LOANS


39. No loans shall be advanced save for one or more of the following purposes:

(1) Purchase and preparation of a house site including demolition of any existing building, excavating, leveling and fencing: etc.

(2) Building, altering, repairing or furnishing a residential house and its buildings;

(3) Making, restoring, improving a garden including sinking or repairing a well to be used for drinking or irrigation.

40. Cash loans shall not be made to any person other than member of the Society. No loans shall be made to a member within a month of his admission but this does not apply to the transfer of an existing loan of a past member to his nominee or other successors in whose interest he is admitted as a member to the Society. All applications for loans shall be submitted to the Secretary with a clear and true statement of the purposes for which they are required and they shall be dealt with by the Committee at their next meeting according to their direction.

The borrower shall execute a Bond and shall furnish surety or sureties as laid down in subsequent bye-laws.

All sureties must be members of the Society and must furnish the declaration required in bye-law 26(23).

No loan shall be made to a member whose instalments of shares are in arrears or who is a persistent defaulter.

41. All loans shall be granted within the maximum credit limit of a member at discretion of the Committee. Such loan shall not exceed 70% of the value of the property mortgaged to the Society. In addition to the tangible security, the borrower shall furnish atleast two personal sureties who must be members of the Society.

Such loans shall be granted subject to any further general or special restrictions or conditions which may be imposed by the Registrar from time to time.

42. Loans shall be payable in equal monthly instalments spread over 12 years. The Committee may suspend repayment of any instalment for one or more months on sufficient cause being shown and may thereby extend the time of total payment by a period not exceeding 14 years.

43. The property given by borrowing members as surety shall remain under first mortgage of the Society till the borrower payes of the whole dues. Such mortgages shall always in addition to personal sureties who must be members of the Society provided that the amount for which a member stands surety shall not exceed the balance of his maximum credit limit, after deducting the amount he himself owes on a mortgage.

44. Houses given in security shall be insured against fire for their full value. The insurance premium shall be paid by the borrower failing which the Society will pay the premium and debit the amount to the member’s account.

45. If the Committee finds that the security for an outstanding loan has become insufficient or that the borrower’s material position has weakened, they shall call on the borrower to provides satisfactory security and in default shall call in the loan at once. The loan shall also be recalled if the Committee finds that it has not been applied to the purpose for which it was taken.

46. A member’s commitments as surety shall not exceed an additional amount equal to his maximum credit limit. Unaviled portion of member’s credit limit may be added to increase he limit upto which he may stand as surety. When a member has stood for an additional amount owing to his maximum credit limit not being fully drawn, he may not draw further against his maximum credit limit until his liability as surety has been correspondingly decreased.

Permanent sureties may be taken subject to rules and regulations approved by the Registrar, but the provision regarding unavailed portion of maximum credit limit as mentioned above shall not apply in such cases.

The limit to which a member can stand as surety in accordance with this bye-law may be exceeded at the discretion of the Committee in case where collateral security is also taken.

47. Interest on loans from members shall be charged at a rate of rates to be fixed by the Committee provided that the margin between the borrowing and lending rate is of at least 2% per annum. In case of default, penal rate may be prescribed by the General Meeting under bye-law 21 (11) not exceeding 3% above normal rate of interest of the Society.

48. All documents creating a charge, obligation on the Society shall be signed by the President or Vice-President and two other members of the Managing Committee appointed for the purpose provided that in the case of receipts and cheques upto Rs.200 and receipt for deposits and repayments of loans, the President or Secretary and Treasurer may sign. All important documents of the Society shall be sealed with Society’s seal. The seal shall be kept in the custody of the Secretary or any other officer or office bearer of the Society authorised for the purpose.

49. Society shall not allot or transfer by sale or otherwise any property including plots and houses to any person except to members. No member shall be allotted by sale or otherwise more than one plot by the Society.

50. In case any member does not want to construct a house over the plot, the same will be returned to the Society. Provided that a member may subject to the condition of the lease, mortgage his interest in the plot for the purpose of raising loans for construction of a house on the said plot to the L.I.C. of India, a Scheduled Bank or a Financial Institution recognized by Government of Delhi State.

51. No member shall be permitted to transfer or sell or mortgage his plot to any person other than the member of the Society or the Society itself. Provided that a member may subject to the conditions of lease, mortgage his interest in the plot for the purpose of raising loan for the construction of a house on the said plot to the Life Insurance Corporation of India. Scheduled Bank or Financial Institution recognized by the Government of Delhi State.


XII. RULES FOR HOUSE BUILDING


52. The plans of all building constructed by members with an advance from the Society must first be passed by the Managing Committee. The Committee shall pay due attention to principles of sanction and hygiene. This is an addition to any municipal or other bye-laws in force which shall be observed.


XIII. AUDIT


53. The accounts of the Society shall be audited atleast once a year by an Auditor appointed by the Registrar. The Society shall pay such contribution to Delhi Audit Fund/Audit Fee as may be fixed by the Registrar, Co-operative Societies, Delhi from time to time.


XIV. DISTRIBUTION OF PROFITS


54. The following shall be first charge on profits:
(i) Any loss undergone by the Society;
(ii) Necessary deduction for deprecation of machinery, building etc;
(iii) All insurance charges;
(iv) All payments of salaries, provided fund and working expenses;
(v) Interest on loans, deposits etc.;
(vi) Contribution to the Delhi Audit Fund as may be fixed from time to time by the Registrar.

The balance shall be the net profit of the Society of which:
(i) Not less than 25 per cent of the net profit shall be carried to the Reserve Fund which shall be indivisible and no member shall be entitled to any share in it.

(ii) The Society shall credit a sum calculated at two percent of its net profit subject to a maximum of Rs.10,000/- every year for contribution to the Cooperative Education Fund administered by the Registrar/Committee. The Registrar may frame regulation for the utilization and the administration of the Fund. This fund shall be kept with the State Bank of India. Any such amount payable by the Society shall be a charge on the funds of the Society.

(iii) Divided on shares may be paid not exceeding 12% per annum.
(iv) Not more than 30% of the balance shall be credited to Bad Debt Fund.

(v) The remaining amount, if any, may be allotted to any or all of the purposes detailed below or may be carried over to:

a. Bad debt fund;
b. Rebate on goods purchased by members:
c. Common good fund according to Section 47 of the Act;
d. Dividend equalization fund;
e. Share transfer fund;
f. Any other fund required for the business of the Society.

55. If no dividend is claimed for a period of three years from the date of declaration, a notice shall be issued by the Society at the registered address of the member at his cost calling upon him to take the amount within one month of the receipt of the notice if the dividend is not claimed during this period it shall be credited to the Reserve Fund.

56. Bonus shall be paid according to the rules approved by the General Meeting and subject to any restrictions imposed by the Registrar.

57. No bonus in addition to the dividend shall be distributed on shares.

58. No dividend shall be paid while any claim due from the Society to a depositor or credit or remains unsatisfied.

59. Members shall have no right to the dividend unless declared and approved by the General Body. The dividend shall be paid to all members within three months of the approval by the General Body.

60. Allocation and distribution of profits shall be made only after the Annual Audit.



XV. RESERVE FUND


61. The Reserve Fund is indivisible and no member is entitled to claim a specified share in it. It shall be invested in Government Securities or otherwise as directed by the Registrar under Section 49 of the Act.


XVI. DISPUTES

62. If any dispute touching the construction or business of the Society arises between members or past members of the Society or person claiming through a member or past member or between members or past members or persons so claiming and any officer, agent or servant of the Society (past or present) or between the Society or its Committee and any officer, member, or servant of the Society) (past or present) it shall be referred to the Registrar as provided in the Act. and the Rules made there under.


XVII. GENERAL


63. All matters not specially provided for are to be decided in accordance with the Co-operative Societies Act. and the Rules notified there under.

64. The Managing Committee with the approval of the General Meeting may frame rules of business not inconsistent with the Co-operative Societies Act. the rules and these bye-laws for carrying on the work of the Society and may make additions or alterations in them from time to time.

65. The Society shall be wound up and dissolved only by an order of the Registrar under Section 63 of the Delhi Co-operative Societies Act. 1972 and rules and thereunder.

After all the liabilities including the paid-up share capital have been met, the surplus assets, shall not be divided among the members but shall be devoted to an object of public utility determined by the General Meeting of the Society within three months of the date of the final liquidation and approved by the Registrar in while or part to any or all of the following:

(a) A subject of public utility of local interest;
(b) A charitable purpose as defined in Section (2) of the Charitable Endowments Act;

(c) Or may be placed on deposit with the Delhi State Co-operative Bank Ltd., 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.

LIST OF PROMOTER MEMEBRS TO BE APPENDED WITH THE BYE LAWS AT THE TIME OF REGISTRATION

We the following promoters were present in the general body meeting of the ____________________ Cooperative ___________________ Society Limited ________________________ held on ____________________ and have gone through the Model Bye-Laws and the same were adopted unanimously.

S. No. Name of Promoter Member Father’s/Husband’s Name Signature