(1) Notwithstanding anything contained in any other law for the
time being in force but subject to any claim of the Government in respect of land revenue or any sum recoverable as land revenue or as public demand, any claim, any debt or other amount due to a society by any member including a past or deceased member shall be a first charge upon the crops or other agricultural produce, cattle fodder for cattle, agricultural or industrial implements or machinery, raw materials for manufacture and any finished products manufactured from such raw materials owned by or belonging to such member past member or forming part of the estate of the deceased member as the case may be

(2) Such charge shall be available even as against any amount recoverable by the Government as if it were an arrear of land revenue subsequent to the incurring of the debt or the liability for the other amount due to the society referred to in sub-section (1)

(3) No person shall transfer any property which is subject to such charge except with the previous permission in writing of the society which holds the charge and any transfer, without such permission shall, notwithstanding anything contained in any law for the time being in force, be void.

(4) The charge under this section shall not be available against the following articles of such member.

(a) the necessary wearing apparel, cooking vessels, beds and bedding and such personal ornaments of a woman as in accordance with religious usage cannot be parted with by her;

(b) ploughs, implements of husbandry, one pair of ploughing cattle, such manure and seed grains stocked by him, as may be necessary for the due cultivation of his lands in the ensuring year.

43. (1) Notwithstanding anything contained in this Act or in any other law for the time being in force, but subject to any claim of Government in respect of land revenue, whether prior in time or subsequent, any member of a society, owning any land or having interest in any land or other immoveable property as a tenant, making an application for financial assistance from the society shall make a declaration in the form prescribed creating a charge in favour of the society on such land or interest or such portion thereof as may be specified in the declaration, as security for the payment of the loan to be granted to him by the society from time subject to such maximum as may be determined by the society together with the interest on such amount of the loans.

(2) Such declaration may be varied or cancelled at any time by the member with the consent of the society in whose favour it is made.

(3) Subject to the provisions of sub-section (1) and to the claim of any person in whose favour a charge has been created before the date of registration of declaration made under sub-section (1), no land in respect of which such declaration has been made or any part thereof or any interest therein shall be sold or otherwise transferred until the entire amount of the loan or advance taken by the member from the society together with interest thereon is paid to the society; and any transaction in contravention of this sub-section shall be void.
Provided that if a part of the amount borrowed by a member is paid, the society may on application from the member release from the charge such part of the land or interest therein as it may deem proper having outstanding from the member.

44. A mortgage executed in favour of a primary agricultural credit society or the State Co-operative Bank shall have priority over any claim of the Government arising from a loan granted subsequent to the execution of the mortgage.

45. (1) Notwithstanding anything contained in the India Registration Act. 1908, a declaration made under sub-section (1) of section 43 or a variation or cancellation made under sub section (2) of section 43 or a mortgage executed by a member in favour of a primary agricultural credit society or State Co-operative Bank, as the case may be, in respect of financial assistance given by that society shall be deemed to have been duly registered in accordance with the provisions of that Act with effect from the date of such declaration, variation, cancellation or mortgage, as the case may be provided that the society sends to the Sub-Registrar within the local limits of whose jurisdiction the whole or any part of the property charged or mortgaged is situated within thirty days from the date of such declaration, variation, cancellation or mortgage, as the case may be, by registered post acknowledgement due, a copy of the document making such declaration, variation, cancellation or mortgage duly certified to be a true copy by an officer of the society authorised to sign on its behalf.

(2) The Sub-Registrar receiving the declaration in respect of a charge or variation or a mortgage referred to in sub-section (I) shall, as immediately as practicable on receipt thereof, record in a register to be maintained in this behalf, the fact of the receipt of such declaration maintained in this behalf, the fact of the receipt of such declaration or mortgage for registration.

46. Whenever a charge or a mortgage of land or interest therein in created in favour of a society or is discharged by a society the society shall give intimation to such revenue official as may be designated in this behalf by the Government. Of the particulars of the charge or mortgage in its favour or discharge thereof. The revenue official shall make a note of the particulars of charge or mortgage or discharge thereof in the Record of Rights.
Provided that the absence of an entry in the record of rights on the basis of such declaration or a defective entry passed in the record in respect thereof shall not affect the validity of the charge or mortgage or discharge thereof.

46.A The Registration in the records of the Sub-Registrar or the recording in the record of rights of a change or variation made under section 43 shall constitute sufficient notice such change or variation to any person dealing with the property subject thereto.

47.A (1)
Notwithstanding anything contained in any law for the time being in force, a member who has available himself financial assistance from a society by creating a charge or mortgage on land or interest therein, shall not, show long as the financial assistance continues to be understanding, lease, transfer or create any incumbrance on such land or interest therein without prior permission in writing of the society in whose favour such charge or mortgage is created.

(2) Any lease or transfer or encumbrance created in contravention of this section shall be void.

(3) Nothing contained in any law relating to ceiling on agricultural holding shall apply to the acquisition of land by a society charged or mortgaged to it as security for loan.

48. A society shall have a charge upon the share or contribution or interest in the capital and on the deposits of a member, or past member deceased member and upon any dividend, or profits payable to a member or past member or the estate of deceased member, in respect of any debt or outstanding demand owing to the society and may set off any sum credited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt.

49 Subject to the provisions of section 48 the share or contribution or interest of a member or past member or deceased member in the capital of a society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt or liability incurred by such member and any receiver appointed under any law relating to insolvency for the time being in force shall not been titled to or have any claim on such share or contribution or interest

50. Every society shall keep and maintain a register or list of member or shares of the society which shall be prima facie evidence of the following particulars entered therein.

(a) The date on which any person entered in such register or list become a member;

(b) The date on which any such person ceased to be a member.

51. (1) A copy of any entry in the books of a society which are maintained in the ordinary course of business shall, if certified in the manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of the existence of such entry, and shall be admitted as evidence of the matters, transactions and accounts therein recorded in every case to the same extent as the original entry.

(2) No officer of a society and no officer in whose office the books of a society are deposited after liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society’s books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters transactions and accounts therein recorded, except under order of the court, tribunal or the arbitration made for special cause.

52. No provision relating to registration of documents contained in any law for the time being in force shall apply to

(1) any instrument relating to shares in a society not withstanding that the assets of the society consist in whole or in part of immovable property ; or

(2) any debenture or bond issued by any such society and not creation, declaring, assigning limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder thereof to the security afforded by a registered instrument whereby the society has mortgage conveyed, 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 such debentures or bonds ; or

(3) any endorsement upon or transfer of any debenture or bond issued by any such society.

53. (1) The Government may, by notification in the Official Gazette, remit in respect of any class of societies.

(a) the stamp duty chargeable under any for the time being in force in respect of any instrument executed by or on behalf of a society or by an officer or member thereof and relating to the business of such society or any class of such instruments or in respect of any award or order made under this Act, in cases, where, but for such remission the society, officer or member as the case may be, would be liable to pay such stamp duty;

(b) any fee payable under any law for the time being in force relating to the registration of documents or court fee.

(2) The Government may by notification, example any class of societies from.

(a) land revenue:

(b) taxes on agricultural income;

(c) taxes on sale or purchase of goods; and

(d) taxes on profession, trades, callings and employments.

54. (1) Notwithstanding anything contained in any law for the time being in force, a member of a society may execute an agreement in favour of the society providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement and to 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 a requisition in writing and so long the society does not intimate that the whole of such debt or demand has been paid, make the deduction in accordance with agreement and pay the amount so deducted to the society within seven days of such deduction. Such payment shall be valid discharge of the employer of his liability to pay the amount so deducted and paid to the society.

(3) If after the receipt of a requisition made under sub-section (2) the employer at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting to the society the amount so deducted, the society shall be entitled to recover any such amount from the employer as arrears of land revenue.

(4) Nothing contained in this section shall apply to establishment under the Railway administration operating any railway as defined in clause (20) of article 366 of the Constitution.

55. Notwithstanding anything contained in any law for the time being in force, the Government may

(a) subscribe to the share capital of a society;

(c) guarantee the repayment of principal and payment of interest on debentures or bonds issued by a society

(d) Guarantee the repayment of share capital of a society and dividends thereon at such rates as may be specified by the Government

(e) Guarantee the repayment of principal and payment of interest on loan and advances to a Society; and

56. (1) The Registrar may from time to time frame rules governing the terms of employment and working conditions of officers and employees in a society including the State Co-operative Bank or a class of societies and the society or the class of societies to which such terms of employment and of working conditions are applicable shall comply with the order that may be issued by the Registrar in this behalf.

Provided that while prescribing the remuneration of the officers and other employees of the State Co-operative Bank, the Registrar shall have due regard to the salary structure of the employees of the Government and the local authorities of comparable level and status in the State.

(2) Where a dispute regarding terms of employment, working condition and disciplinary action taken by a society, arises between a society and its employees, the Registrar or any officer appointed by him shall decide the dispute and his decision shall be binding on the society and its employees.

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