Section 2 of Maharashtra Co-operative Societies Act, 1960




In this Act, unless the context otherwise requires,—

(1) “agricultural marketing society” means a society—

(a) the object of which is the marketing of agricultural produce and the supply of implements and other

requisites for agricultural production, and

(b) not less than three-fourths of the members of which are agriculturists, or societies formed by

agriculturists ;

Hanuman @ Hemant Haribahan Thakare v/s Devrao     Sudhamrao Kadu 2010 (3) MHLJ 198

        The eligibility in respect of election of the market committee was considered on the basis of as to whether the person holding APMC license is agriculturalist or not.

(2) “apex society” means a society,—

(a) the area of operation of which extends to the whole of the State of Maharashtra.

(b) the main object of which is to promote the principal objects of the societies affiliated to it as members and to provide for the facilities and services to them, and

(c) which has been classified as an apex society by the Registrar.

- Maharashtra State Co-operative Bank v/s State of Maharashtra 1997 (2) All MR 278: Whether the Co-operative society registered under the multistate co-operative society can be recognized and notified by the state govt as state co-operative bank. The Hon’ble high court have answered this issue in negative and set aside the said impugned notification dated 30/12/1995.

(4) “bonus” means payment made in cash or kind out of the profits of a society to a member, or to a person who is not a member, on the basis of his contribution (including any contribution in the form of labour or service) to the business of the society, and in the case of .a farming society, on the basis both of such contribution and also the value or income or, as the case may be, the area of the lands of the members brought together for joint cultivation as may be decided by the society[but does not include any sum paid or payable as bonus to any employee of the society under the Payment of Bonus Act, 1965;]

-Commissioner of income tax v/s Terna Shetkari Sahakari Sakhar Karkhana Limited, 2008 (301) ITR 222.

-Commissioner of income tax v/s Manjara Shetkari Sahakari Karkhana Limited, 2008 (301) ITR 191.

(5) by-laws “means by-laws registered under this Act and for the time being in force and includes registered amendments of-such by-laws ;

-Co-operative Central Bank and others v/s Additional Industrial Tribunals Andhra Pradesh. AIR 1970 SC 245:

If the statute gives power to a government or other authority to make rules, so the rules framed have the force of statute and are to be deemed to be incorporated as a part of the statue but this principle does not apply to bye laws of the nature that a co-operative society is empowered by the act to make.

Bye laws may be binding between the persons affected by them, but they do not have the force of a statue.

-Jayprakash Raosaheb Salunke v/s State of Maharashtra, 2000 (3) Mh.L.J. 714.

-Co-operative credit bank v/s Industrial Tribunal, Hyderabad. AIR 1960 SC 245; 19Fac LR 56.

-Akola Zilla Parishad primary teachers co-operative credit society ltd v/s State of Maharashtra through its secretary of ministry of  co-operation, marketing, textiles department and others 2008 (6) All MR 141 (NB): 2008 (6) Mh. L.J. 580 (NB).

The divisional joint registrar have jurisdiction to entertain the application for amendment of the bye laws.

-Murlidhar Vishnu Chaudhary v/s Chief Executive Officer Zilla Parishad, 1973 Lawsuit (Bom) 31.

-Balwant rao Kadam v/s District Deputy Registrar Co-operative Societies, 1979 BCR 161

-Kolhapur Zilla Shetkari Venkar Sahakari Suthar v/s Bandopant Kolhapure, 1990 CTJ 844.

-Ashok Sravan Patil v/s State of Maharashtra   

-Anant s/o. Ramkrushna Deshmukh v/s State of Maharashtra and others, 2010 (5) AIR BOM R 167 (NB).

-Suresh s/o Anandrao Choudhari v/s State of Maharashtra

Date of Decision: 28 February 2012

Citation: 2012 (3) AllMR 33

(6) “Central Bank” means a co-operative bank, the objects of which include the creation of funds to be loaned to other societies; but does not include the urban co-operative bank;

-Karsing s/o sardarsingh pardeshi v/s State of Maharashtra

Date of Decision: 18 February 1993

Citation: 1993 LawSuit(Bom)

(7)committee “means the committee of management or board of directors or other directing body, by whatever name called, in which the management of the affairs of a society is vested under section 73;].

-Supreme Court Of India (From Bombay) (f.b.) Gajanan Narayan Patil v/s Dattatraya Waman Patil Date Of Decision: 20 February 1990 Citation: 1990 Lawsuit(Sc) 91 Maharashtra Co-operative Societies Act, 1961 – Sec 27(9), 73ID – Maharashtra Co-operative Societies Rules, 1961 – R 57A – non-service of notice of no confidence special meeting on Directors renders said special meeting illegal as there has been infringement of provisions of Act, R 57A of Rules, 1961 and Bye-laws 29(D)(i) and (iii) and 29-E of Bye-laws of Society.

-HIGH COURT OF BOMBAY (NAGPUR BENCH) (F.B.)-Narayan S/o Gujabrao Bhoyar; Rajendra Babarao Raut V/S Yeotmal Zilla Parishad Karmachari And Rajudas s/o Laxmanrao Jadhav Date of Decision: 25 September 2009-In a case under Sec 73FF, upon earning disqualification, there is cessation of membership of Committee and automatic vacation of seat for period as regulated under provisions of Sec 73FFF – while order of removal passed under Sec 78(1) would remain in force unless disturbed/set aside by Competent Authority under provisions of Act.

(8)Company ” means a company as defined in the Companies Act, 1956 and includes a Banking Company and also any board, corporation or other corporate body, constituted or established by any Central, State or Provincial Act for the purpose of the development of any industry ;

(9) ” Consumer’s society” means a society the object of which is—

(a) the procurement, production or processing, and distribution of goods to, or the performance of other services for, its members as also other customers and

(b) the distribution among its members and customers, in the proportion prescribed by rules or by the bylaws of the society, of the profits accruing from such procurement, production or processing, and distribution;-Baburao Chanappa Chakote v/s Brihmadeo Krishnat Mane Date Of Decision: 17 September 1979-1980 CTJ 146

(10) “co-operative bank” means a society, which is doing the business of banking as defined in clause (b) of sub-section (1) of’ section 5 of the Banking Companies Act, 1949 and includes any society which is functioning or is to function as [an Agriculture and Rural Development Bank] under Chapter XI ;Apex Co-operative Bank of Urban Maharashtra and Goa Ltd v/s The Maharashtra State Co-operative Bank Ltd and others alongwith Maharashtra State Co-operative Bank and another.

Bank operating in one state and declare as state co-operative bank by RBI cannot be declared as State Co-operative bank in other state.Bharat Co-operative Bank (Mumbai) Ltd v/s Co-operative Bank Employee Union, 2007:  But if co-operative society registered under multi state act which has been recognized and notified by one state government as state co-operative bank than RBI can issue license to run banking business in more than one state.Khaja Industries v/s State of Maharashtra, 2007 (6) All MR 887 (AB): 2007 (5) AIR Bom R 722 (AB): 2008 (2) Bom. C.R 860 (AB): 2007 (6) Mh.L.J. 712 (AB).Co-operative Bank definition falls within the ambit of Securitisation act, 2002.Nashik Merchant’s Co-operative Bank Ltd v/s Aditya Hotels Pvt Ltd., 2009 (3) AIR Bom R 687: 2009 (111) Bom. L.R. 1863: 2009 (4) Bom. C.R. 734: 2009 (4) Mh.L.J. 183.

  • Greater Bombay Co-operative Bank Limited v/s United Yarn Tex Pvt. Ltd and others., 2007 AIR (SC) 1584: 2007 (4) AD (SC) 589: 2007 (5) Scale 366: 2007 (3) Mh.L.J. 434 (SC)
  • Indian Bank v/s Godhara Nagrik Co-operative Society Ltd and Anothers
  • State of Maharashtra v/s Promodkumar Damadhar Wani and another, 2008 All MR (Cri) 1099 (AB): 2008 AlR Bom R 178 (AB)
  • Suresh Prabhu v/s  Bombay Mercantile Co-operative Bank Ltd and others 2008 (1) AII MR232: 2007 (6) AIR Bom R 452: 2007 (5) Bom. C.R.205.
  • Laxman Ladu Raut and anothers v/s Union of India through the secretary, Ministry of Agricultural and others, 2007 (5) AII MR (GB): 2007 (4) Bom. C.R. 613 (GB): 2007 (2) Bom. L.R. 1005 (GB).
  • State of Madhya Pradesh v/s Rameshwar and others, 2009 (5) JT 171 (SC): 2009 (5) Scale 214.
  • State of Maharashtra v/s Laljit Rajshi Shah 2000 (2) SCC 699 2000 AIR (SC) 937.
  • Ramesh Balkrishna Kulkarni v/s State of Maharashtra, 1985 (3) SCC 606
  • Indian Bank v/s Kapol Co-operative Bank Ltd and others, 2009 (5) Mh.L.J. 318.
  • Kunbi Sahakari Bank Ltd v/s M. Shakti Paper COmpany and others, 2009 (2) AII MR 804.
  • woods beach Hotels Ltd v/s Mapusa Urban Co-operative Bank of Goa Ltd and others 2009 (5) Scale 335., 2009 (4) JT 412 (SC).
  • Suresh Badrinarayan Somani v/s  State of Maharashtra and others, 2009 AII MR (Cri) 1163 (AB).
  • M.M. Co-operative Bank Ltd v/s J.P. Bhimani and others, 2009 AIR (SCW) 5406.


    • Akola Zilla Parishad primary teachers co-operative credit society ltd v/s State of Maharashtra through its secretary of ministry of  co-operation, marketing, textiles department and others 2008 (6) All MR 141 (NB): 2008 (6) Mh. L.J. 580 (NB).


  • Shakuntala Bharat Kachare and others v/s Subhash Prataprao Chavan and others., 2010 (4) AII MR 681.
  • Mrs. Smita Vaibhav Mulay v/s union of India, through Ministry of banking and finance and others, 2010 (3) AII MR 82 (AB).
  • Ranakar Bank Ltd, Kolhapur v/s Regional Provident Fund Commissioner, Kolhapur and others, 2010 (3) Mh.L.J. 785
  • Harsha Nitin Kokate v/s Saraswat co-operative Bank Ltd., 2010 (112) Bom. L.R. 2014.
  • Reserve Bank of India v/s Imran Ashraf Furniturewalls and others, 2010 AII MR (Cri) 3084.
  • New Hariyana Dal Mill and others v/s union of India through the secretary, Ministry of Finance and others, 2010 (1) Bom.C.R. 198 (NB).
  • Goa State Co-operative Bank Ltd v/s Kurtarkar Traders, 2010 (1) AIR Bom R 52 (PB).
  • Rafique Reheman Shaha v/s State of Maharashtra and anothers, 2010 (1) AIR Bom R 365 (NB).
  • Goa State Co-operative Bank Ltd v/s Mohan Surya Naik, 2010 AII MR 1924 (Cri).


  • Commissioner of Income tax IV v/s Solapur Nagari Audyogic Sahakari Bank Ltd.

(10-ai) “Co-operative Appellate Court” means ‘the Maharashtra State Co-operative Appellate Court  constituted under this Act;


  • Rambhau Ramchandra Samarth v/s Arti Ramrao Ingole and others, 2001 (1) AII MR 172.


(10-aii) “Co-operative Court” means a Court constituted under this Act to decide disputes referred to it under any of the provisions of the Act;


  • State of Maharashtra v/s labour Law Practitioners Association, Bombay 1987 Mah.L.J. 1917 (DB).
  • Maharashtra Co-op Courts Bar Association Bombay v/s State, 1990 Mah. L.J. 1064.


(10-aiii) “co-operative year” means a year ending on the 31st day of March or on such other day in regard to a particular society or class of societies [as may have been fixed by the Registrar, from time to time, for balancing its or their accounts ;

(10-A) ‘crop protection society’ means a society the object of which is protection of the crops, structures, machinery, agricultural implements and other equipment such as those used for pumping water on the land ;

(11) ” dividend” means the amount paid, out of the profits of a society, to a. member proportion to the shares held by him;

(12) ” farming society ” means a society in which, with the object of increasing agricultural production, employment and income and the better utilisation of resources, lands are brought together and jointly cultivated by all the members, such lands (a) being owned by or leased to the members (or some of them),

or (b) coming in possession of the society in any other manner whatsoever;

  • Anant s/o. Ramkrushna Deshmukh v/s State of Maharashtra and others, 2010 (5) AIR BOM R 167 (NB).

(13) ” federal society “ means a society—

(a) not less than five members of which are themselves societies,and

(b) in which the voting rights are so regulated that the members which are societies have not less than four-fifths of the total number of votes in the general meeting of such society;

(14) ” firm” means a firm registered under the Indian Partnership Act, 1932;

(15) “general society” means a society not falling in any of the classes of societies denned by the other clauses of this section;


  • Naresh Shankar Srivastava v/s State of U.P and others, 2009 AIR (SC) 2450.


(16) ” housing society ” means a society, the object, of which is, to provide its members with open plots for housing, dwelling houses or flats; or if open plots, the dwelling houses or flats are already acquired, to provide its members common amenities and services;


  • Ravindranath H. Hiremath (Lt. Col.) v/s Prashant Kumar Buttan 1994 (2) Mh.L.J. 1731.
  • BEML Employees House Building Co-op Society Ltd v/s State of Karnata, 2005 (1) Mh.L.J. 389 (SC)


    • State of Maharashtra v/s Karvanagar Saharkari Griha Rachna Sanstha Maryadit, (2000) 9 SCC 295


  • Sukhsagar Co-operative Housing Society Ltd and anothers v/s State of Maharashtra, 2004 (3) Mh.L.J. 1010
  • SanjayKumar Amrutial Shah and others v/s Uttamlal Ratilal Shah (dead) through BharatKumar Uttamlal Shahand others., 2007 (5) AII MR 195 (AB).
  • Regional Director , employees State Insurance Corporation and others v/s Tulsiani Chambers Premises Co-operative Society and others, 2008 (1) Mh.L.J. 178
  • Brahma Siddheshwar Co-operative Housing Society Ltd and 5 others v/s State of Maharashtra and 3 others, 2009 (4) AII MR 119.
  • N.T. kotian & anothers v/s State of Maharashtra and others, 2009 AII MR (Cri) 769
  • Jamuna Sagar Co-op Housing Society Ltd v/s Municipal Corporation for Greater Bombay and others 2009 (3) AII MR 325
  • Smt. Jagvatibal S. Taak v/s S.D. Paithane, the then Presiding officers, VIIIth labour court and others, 2008 (5) AIR Bom R 667
  • Acknur Constructions Pvt. Ltd v. Sweety Rajendra Agarwal & Ors., 2010 (2) All MR 858 : 2010 r Bom.C.R. 15 : 2010 (112) Bom.L.R. 844.
  • Godi Kamgar Griha Sanstha Ltd & Anr v. Mr. Jerry Thomas Cherian & Ors., 2010 (5) All MR 91
  • Shailaja Kamalakar Limaye & Ors v. Niikanth Ganesh Pethe & Ors., 2010 (3) All MR 678 : 2010 (112) Bom.L.R. 1425 : 2010 (4) Mh.L.J. 160.
  • Mittal Court Premises Co-operative Society Ltd v. Income Tax Officer.


(16-A) ” lift irrigation society ” means a society the object of which is to provide water supply;, by motive power or otherwise to its members, for irrigation and otherwise;

(17) ” Liquidator ” means a person appointed as liquidator under this Act;

(18) “local authority ” includes. school board and an agricultural produce market committee constituted by or under any law for the time being in force;

(19)(a) ” member ” means a person joining in an application for the registration of a co-operative society which is subsequently registered, ,or a person duly admitted to membership of society after registration, and includes a nominal, associate or sympathiser member;


  • Bhaskar s/o Eknathrao Shinde v. State of Maharashtra & Ors, 2008 (2) All MR 214.
  • Hindustan Co-operative Housing Building Society Ltd v. Registrar, Co-operative Societies & Anr, 2009 (2) JT 530 (SC).


(b) ” associate member ” means a member who holds jointly a share of a society with others, but whose name does not stand first in the share certificate;

-R B Rajput v/s Hiralal Bhagwandas Rajput

Date of Decision: 13 October 1989 1990 (1) BCR 310

(c) ” nominal member ” means a person admitted to membership as such after registration in accordance with the by-laws;

(d) ” sympathiser member ” means a person who sympathises with the aims and objects of the society and who is admitted by the society as such member.


  • K.K. Adhikar V/s T.G. Kulkarni and others 1980 C.T.J. 241
  • AIR 1980 Bom 261 Rajendra v/s State of Maharashtra
  • Bihar Finance Service H.C. Co-operative Society Ltd v/s Gautam Goswami & others, 2008 (4) Scale 306: 2008 (2) Supreme 335.
  • N.T. kotian & anothers v/s State of Maharashtra and others, 2009 AII MR (Cri) 769


(20) ” officer ” means a person elected or appointed by a society to any office or such society according to its by-laws; and includes a chairman, vice-chairman, president, vice-president, managing director, manager, secretary, treasurer, member of the committee, and any other person elected or appointed under this Act, the rules or the by-laws, to give directions in regard to the business of such society;


  • Yeshwant Gunaji Sorte v/s State of Maharashtra, 1981 Bom. C.R. 752
  • Hanmant Janardhan patil v/s State of Maharashtra. 1993 (1) Mh.L.J. 511
  • Shriram Dhonduji Raut v/s Bahu Uddeshiya Sahakari Sanstha Virsi, 2004 (3) Bom. C.R. 383
  • K. Ashoka v/s N.L.Chandrashekhar and others, 2009 (5) SCC 199: 2009 (5) Scale 587
  • Lokmanya Nagar Priyadarshini v/s State of Maharashtra, 2007 (1) Bom. C.R. 929
  • Smt. Savitri Chandrakesh (part I) v/s State of Maharashtra and others, 2009 (4) AII MR 194: 2009 (4) Mh.L.J. 406


[(20-A) ” Official Assignee ” means a person or body of persons appointed by the Registrar under subsection (2) of Section, 21A;];


  • Shriram Dhonduji Raut v/s Bahu Uddeshiya Sahakari Sanstha Virsi, 2004 (3) Bom. C.R. 383


(21) “prescribed” means prescribed by rules;

(22) processing society” means a society the object of which is the processing of goods;

(23) producers’ society means a society the object of which is, the production and disposal of goods or the collective disposal of the labour of the members thereof;

(24)” Registrar means a person appointed to be the Registrar of Co-operative Societies under this Act;


  • Smt. Savitri Chandrakesh (part I) v/s State of Maharashtra and others, 2009 (4) AII MR 194: 2009 (4) Mh.L.J. 406


(25) “resource society means a society the object of which is the obtaining for its members of credit, goods or services required by them;


  • Narayan Kisan Gade v/s Machchindranath Kundlik Tarade, 1994 (1) Mh.L.J. 558
  • State of Maharashtra v/s Pramodkumar Damodhar Wani & Another, 2008 AII MR (Cri) 1099 (AB)


(26) rules ” means rules made under this Act;

(27) society means a co-operative society registered, or deemed to be registered, under this Act;


  • Kapurchand Jivraj Jain v/s Shri Datta Co-op Housing Society Ltd., Amainer, 1995 (1) Mh.L.J. 340
  • Utkarsha Gruha Nirman Co-op Housing Society Ltd v/s State of Maharashtra and others, 2007 (5) AIR Bom R 606 (AB)
  • Mahatma Jyotiba Phule Adivasi Magasvargiya Gruha Nirman Sahakari Sanstha Ltd v/s State of Maharashtra and others, 2007 (5) AIR Bom R 91 (AB)
  • Delhi Development Authority v/s Arjun Lal Satija and others, 2007 (13) Scale 468
  • Shantaram Pandurang Jadhav and anothers v/s Kiran Industrial Premises Co-op Society Limited, 2007 (3) CLR 418
  • Pranita Powerloom Co-operative Societies Ltd  and other v/s State of Maharashtra and others, 2009 (6) Scale 209
  • State of Assam v/s Barak Upatyaka D.U. Karmachari Sanstha, 2009 AIR (SC) 2249
  • Nagpur Vinkar Sahakari Soot Girni Maryadit v/s Rashiya Mill Mazdoor Sangh and other, 2008 (4) AII MR 394 (NB)
  • Naresh Shankar Srivastava v/s State of U.P and others, 2009 AIR (SC) 2450
  • Kallakurichi Taluk Co-operative Housing Society v/s M. Maria Soosai and others.


(28) “society with limited liability ” means a society having the liability of its members limited by its bylaws;

(29) ” society with unlimited liability ‘* means a society, the members of which .ire, in the event of its being wound up. Jointly and severally liable for and in respect of its obligations and to contribute to any deficiency in the assets of the society;

[ * * * * * CLAUSE (30) DELETED* * ]

(31) ” working capital” means funds at the disposal of a society inclusive of paid-up share capital, funds built out of profits, and money raised by borrowing and by other means.


  • Mukesh s/o Zanaka Paserka Paserkar v/s State of Maharashtra and others, 2010 (5) AII MR 142 (NB).



0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>