101. (1) No person other than a society, shall carry on business under any name or title of which the word “co-operative” or its equivalent in any Indian language, is part without the sanction of the Government.

(2) Any person carrying on any trade or business in contravention of sub-section (1) shall be punished with a fine which may extend to two hundred rupees and in the case of a continuing offence with a fine of rupees 25 for each day on which the offence is continuing after conviction thereof.
Provided always 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 carried on his business with the word “co-operative” or its equivalent in any Indian language, at the date on which the Sikkim Co-operative Societies Act. 1955 came into operation.

(3) Any member or past member or the nominee, heir or legal representative of a deceased member of a society who contravenes the provisions of section 42 by disposing of any property in respect of which the society is entitled to have a first charge under the section or do any other act to the prejudice of such claim shall be punishable with fine which may extend to two hundred rupees.

(4) The committee of a society or an officer or member thereof willfully making a false return or furnishing false information, or any person willfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the Provisions of this Act or willfully does not furnish any information required from him by a person authorised in this behalf under the provisions of this Act, shall be punishable with fine which may extend to two hundred rupees.

(5) Any employer, who without sufficient cause fails to deduct or fails to pay to a society the amount deducted by him under sub-section (2) of section 54 within a period of seven days from the date on which such deduction is made shall be punishable with fine which may extend to five hundred rupees and in the case of a continuing default with a further fine of Rs. 25 for each day on which the offence continues after conviction thereof.

(6) If default is made in complying with provisions of section 28, sub-section (1) of section 33, section 57, section 60 section 61, section 62, the society, and every officer or member of committee of the society who is default shall be punishable with fine which may extend to two hundred rupees.

(i) after ceasing to be a member under sub-section (2) of section 21 acts as a member: or

(ii) exercises the right of member in contravention of the provision of section 25 shall be punishable with fine which may extend to two hundred rupees.

(9)If any person collecting the share money for a society in formation makes use of the funds so raised for conducting any trade or business in the name of the society to be registered or otherwise, he shall be punishable with fine which may extend to five hundred rupees.

(10) If any officer on member of a society misappropriates or un-authorisedly or illegally keeps any money belonging to that society he shall be punishable with imprisonment for a term which may extend to one year, or fine which may extend to one thousand rupees or with both.
 

102. Where an offence under sub-section (1) or sub-section (4) of section 101 has been committed by a company, every person who at the time the offence was committed, was in charge of and was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly;

Provided that nothing contained in this section shall render any such person liable to any punishment provided in the aforesaid sub-section he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

Provided further that if it is proved that the offence has been committed by the consent or connivance of or is attributable to any neglect on the part of any director, manager, secretary or other officer of the Company such director, manager, secretary, or other officer shall also be deemed to the guilty of the offence and shall be liable to be proceeded against and punished accordingly.

(a) “ company” means a body corporate and includes a firm or other association individuals; and
 

(2)No prosecution shall be instituted under this Act without the previous sanction of the Registrar and such sanction shall not be given –

(ii) if the Registrar is satisfied that the person concerned acted in good faith.
 

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