BYE - LAWS OF
THE CENTRAL EXCISE EMPLOYEES
CO-OPERATIVE CREDIT SOCIETY LTD., NO. E 674
ERNAKULAM, KOCHI - 682 018
Name, Address and Area of operation:
1. The name of the Society shall be ‘The Central Excise Employees Co-operative Credit Society Ltd., Ernakulam.
The address of the Society shall be the Central Excise Employees Co-operative Credit Society Ltd., No. E-674, Central
Revenue Buildings, I.S. Press Road, Ernakulam, Cochin - 682 018.
Its area of operation shall extend to the whole of Kerala State.
2. The Objects of the Society shall be:
(i) to raise funds from members or non-members including Co-operative bodies by way of deposits or otherwise;
(ii) to grant loans to its members;
(iii) to encourage thrift, Co-operation and self-help among its members;
(iv) to conduct chit funds;
(v) (a) to promote the economic, social and material welfare of its members;
(b) to have a hire purchase scheme for two-wheelers, home appliances and other house hold articles.
(vi) to do such other things as will be conducive or incidental to the above objects and to promote the cause of
(vii) to conduct monthly deposit scheme (MDS) by framing sub rules thereof approved by the Joint Registrar.
(viii) to conduct special death relief/endowment scheme by framing sub rules thereof approved by the Joint Registrar..
(ix) to open branch offices anywhere in Kerala attached to Central Excise offices with the approval of the Registrar.
(x) to conduct Children’s Education Fund Scheme by voluntary monthly deposit of Rs. 10/- from each member
by framing sub rules thereof approved by the Joint Registrar.
(xi) To conduct Retirement Benefit Scheme by Voluntary monthly deposit of Rs. 100/- from each member by
framing subrules thereof approved by the Joint Registrar.
(xii) To provide house loan facilities to the employees of the Society for (a) Acquisition of ready built house / flat.
(b) Construction of house building. (c) For additions and alteration, extension and repair to the existing
house building as per the approved sub rules on the direction of the Government or Registrar of
Co-operative Societies from time to time. (Order No. 0/5388/03/R Dis; dt. 29-09-2003)
(xiii) To conduct Loan Linked Group Life Insurance Scheme by framing sub rules there of approved by the Joint Registrar.
(xiv) To conduct and operate consumer stores with approval of Joint Registrar.
(xv) To Purchase land/building or to construct building to do necessary business for the benefit of the members.
3. The authorised share capital of the Society shall be Rs.1,50,00,000 made up of 15,00,000 shares of Rs. 10/- each.
The value of each share shall be paid in full on allotment.
4. (a) Any employee working in any office in Kerala under the administrative Jurisdiction of Central Excise &
Customs Commissionarate, Kochi, Kozhikode, Thiruvananthapuram, Chief Commissioner’s office, Kochi &
Preventive Commissionarate (except Custom House staff) shall be eligible for membership in the Society.
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(b) Any employee in the Pay and Accounts unit attached to the Central Excise Commissionerate in Kerala State
shall be eligible for membership in the society.
(c) Any employee working in or deputed to the Directorate of Revenue Intelligence and Anti Evasion (Central
Excise) within Kerala State shall be eligible for membership in the Society.
(d) Any member of the Society on their time bound deputation to any other department shall be eligible to
continue their membership unless they are absorbed in the department to which they are deputed to,
provided they give necessary undertaking through their head of office to which they are deputed.
5. (I) The liability of the members of the Society for meeting the deficits in the assets of the Society in the event of
its being wound up shall be limited to the shares subscribed by them.
(2) The liability of a member to the extent mentioned in sub-clause (1) above shall continue for a period of
two years from the date of his ceasing to be such member.
(3) The Estate of a deceased member shall be liable to the extent mentioned in sub-clause (1) above for the
debts due by the Society as they stood on the date of his death for a period of two years after his death.
Admission of Members:
6. (1) Application for membership in the Society and for allotment of shares shall be made to the Secretary in the
prescribed from. Every such application shall be disposed of by the Managing Committee.
The Managing Committee may accept or reject any such application by assigning the reasons there to.
However the applicant shall have the right to file an appeal before the Registrar of Co-operative Societies and
the decision of the Registrar shall be final.
(2) Every member shall pay an admission fee of Rs. 5. In case of transfer of shares, the transferee shall also pay
the entrance fee as above.
(3) The Society shall not admit members or transfer share or shares within 30 days prior to the date of its General
Body Meeting convened for the conduct of election or at which election are to be held.
Conditions and Restrictions on holding of shares:
7. (1) Every member shall take at least one share and the maximum number of shares a member can hold shall be
as prescribed Sec. 22(b) of Kerala Co-operative Societies Act, 1969.
A member may at any time, with the sanction of the Managing Committee, increase the number of shares
held by him provided it does not exceed the limit laid down in sub-clause (1) above.
Withdrawal of Shares:
8. No member shall be permitted to withdraw any of the share or shares held by him in the Society within three years
of the date of allotment of such shares, except that in case of earlier cessation of membership resulting from
termination, retirement or death or otherwise, the Managing Committee may allow earlier refund of shares.
After such period a member may withdraw the shares held by him subject to the sanction of the Managing
Committee and subject to the provision contained in the K.C.S. Act and Rules 1969 provided that:
(i) three months have elapsed since he gave notice of withdrawal:
(ii) there are no debts due by him to the society:
(iii) there are no debts due by any person for whom he was surety to the society.
Provided further that the total amount of share capital that is permitted to be withdrawn in any year shall not
exceed 10 percent of the aggregate paid up share capital of the society as it stood on the 1st July preceding.
When a member is permitted to withdraw the shares under this Bye-law, the share capital actually paid by him
shall be refunded together with the dividend, if any, declared.
Repayment of shares on removal:
9. Should a member at any time cease to be eligible for membership, his name shall at once be removed from the list
of members and the Society shall repay within a reasonable time the share capital actually paid by him together
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with divided if any, after deducting therefrom, any amount due from him directly or as a surety to the Society.
Nomination of Heir:
10. (a) (1) In the case of death of a member, his membership shall ipsofacto cease.
(2) Every member of the Society may nominate any person to succeed to his share/s or interest/s in the
society in the event of his death. Such member may, at any time, revoke or vary such nomination. In the
event of his death such nomination shall be given effect to by the Society provided that:
(i) the nomination has been signed by the deceased in the presence of atleast two witnesses, attesting the same;
(ii) the nomination has been registered in the books of the Society kept for the purpose; and
(iii) the nominee shall have already been admitted by the Managing Committee as a member of the
Society, or he shall have been admitted as a member subsequently.
(b) In the event of there being no person nominated by the deceased member to succeed him in his shares and
/or interests in the Society, such share/s or interest/s shall be transferred to his heir or legatee as the case may
be, or any person appointed by them within a reasonable time of the death of the member.
Provided that the transferee shall have already been admitted or shall subsequently been admitted by the
Managing Committee under these Bye-laws as a member of the Society.
(c) (i) In the event of the nominee or other transferee not being eligible for membership according to the byelaws,
the society shall pay the value of the share/s and / or interest/s of the deceased member in the
Society, to the nominee or other transferee as the case may be.
(ii) In the event of the nominee being a minor on the date of nomination, the member may appoint an
appointee whose discharge shall be valid during the minority of the nominee and such discharge shall
relinguish the Society of the liabilities so discharged.
Transfer of Shares:
11. A member may be permitted to transfer his share or shares with the previous sanction of the Managing Committee.
Cessation of Membership:
12. (1) Cessation of membership shall be:
(a) by death;
(b) by retirement / resignation
(c) by disqualifying to become a member; or
(d) by expulsion
(2) If a member wilfully deceives the Society in any way or if his general conduct is such as to render his removal
necessary in the interests of the Society, it shall be open to the General Body to expel such member after
observing all procedural formalities as is contemplated in the K.C.S. Act & Rules 1969.
(3) A member who has been expelled from membership of the Society shall be paid all moneys due to him from
the Society after deducting there from any money due from him to the Society and he shall be liable as
provided in Bye-law No. 5 for the debts due by the Society as they stood on the date of cessation of membership
for a period of two years from such date.
(4) If a member drives the Society to a Court of Law for recovery of money due from him, he shall on that
account ordinarily be considered as having become liable to be expelled as provided herein above.
13. Deposits of various types such as Fixed, Savings Bank, Current Accounts, Chit Funds (Kuris), General Welfare
Fund, Provident Funds, Trade Deposits, Recurring Deposits, Compulsory Deposits may be accepted by the Society
on such terms and conditions as may be determined by the Managing Committee from time to time.
The interest rates of such deposits shall be decided by the Managing Committee from time to time subject to
instructions of the Co-operative Department.
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14. The Managing Committee shall be competent to borrow funds otherwise than by way of deposits, provided that
the interest on such borrowings shall not exceed the maximum lending rate of the District Co-operative Banks.
Maximum Borrowing Limit:
15. The total borrowings of the Society by way of deposits and loans shall not at any time exceed hundred times of the paid
up share capital plus Reserve Fund.
Organs of the Society:
16. (1) (i) General Body:
General Body shall be the assembly of the members of the Society.
(ii) Managing Committee:
Managing Committee shall consist of:
and Eleven Committee Members
(2) (a) There shall be a minimum of one member from the SC/ST Community and a minimum of three women
members in the Managing Committee.
(a) There shall be one seat in the committee of the Society reserved for the members having a deposit
of Ten Thousand rupees and above.
(b) Out of the eight members two members shall be from Kozhikode (North Zone) and two members
from Trivandrum (South Zone)
(3) The Managing Committee shall elect the office bearers as mentioned in Sub-clause (1) (ii)
Power of the General Body Meetings:
17. The ultimate authority in all matters of the Society shall vest in the General Body.
The following among other matters, shall be dealt with by the General Body:
(i) removal of the members of the Managing Committee;
(ii) discussion and approval of the Annual report due to the Registrar.
(iii) The Registrar’s Audit Report.
(iv) amendment or repeal of any of the existing Bye-Laws or enactment of any new Bye-Law;
(v) Expulsion of members;
(vi) consideration of any complaint preferred by any individual member against any member or members of the
(vii) affiliation of the Society to other Co-operative Societies;
(viii) distribution of profits;
(ix) passing of Annual Budget;
(x) writing off irrecoverable debts and losses to be recommended by the Managing Committee and;
(xi) to appoint any Sub-Committee to carry out any specific function.
List of Members for the General Body Meeting:
18. The Managing Committee shall maintain a list of members on the rolls of the Society who are qualified to vote at
General Body Meeting and shall bring such list up-to-date within a month before any such meeting.
Meetings of the General Body:
19. (i) The General Body shall meet at least once a year.
(ii) The General Body shall meet whenever the affairs of the Society call for such a meeting.
(iii) The Managing Committee may at any time call a special meeting of the General Body of the Society for the
BYE - LAWS OF THE CENTRAL EXCISE EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LTD., ERNAKULAM 6
conduct of the business if it finds it necessary; and
The Managing Committee shall call such a meeting within one month of the receipt of a requisition in writing
from one-fifth of the members clearly indicating the purpose of the meeting or from the Registrar of Cooperative
(iv) It shall be the duty of every member to attend the meeting of the General Body.
(v) The quorum for a General Body Meeting shall be 50 or one fifth of the total members whichever is less. If at
the notified time of commencement of the meeting the quorum be not present, the meeting may be adjourned
for a time not exceeding 30 minutes. If at the close of the said 30 minutes the required quorum is not
present the Meeting shall be adjourned for another day, and the date, time and place of Meeting shall be
Notice of the Meeting of the General Body:
20. (1) Notice for a General Body Meeting may be given to members in the following manner:
(a) by sending the Notice by post under Certificate of posting or
(b) by delivering the Notice in person after getting the receipt of notice acknowledged.
(2) Fifteen days’ Notice shall given before a Meeting of the General Body is convened.
Conduct of General Body Meeting:
21. The President shall preside over the Meeting of the General Body. In his absence the members present may elect
one member from among themselves to preside over the meeting. Every member present shall have only one
vote. Voting by proxy shall not be allowed. All questions shall be decided by a majority of votes of the members
present and voting. When votes are equal the decision shall be taken by drawing lots by the presiding officer.
22. (1) Subject to such resolutions as the General Body may from time to time pass, the administration of the Society
shall vest in a Managing Committee.
(2) The service of the members of the Managing Committee shall be gratuitous. They shall be entitled to
travelling allowance on such scale as may be fixed by the managing committee from time to time subject to
the Kerala Co-operative Societies Act and Rules.
Powers of the Managing Committee:
23. Amongst other things, the powers of the Managing Committee shall be:
(i) to raise funds necessary for the purpose of carrying out the functions of the Society in the form of deposits,
loans, advances, overdrafts, cash credit etc. on such terms and conditions as it may determine.
(ii) to sanction investment of the funds of the Society;
(iii) to admit members and to allot shares to them;
(iv) to arrange for the keeping of such accounts and registers as are specified by the Registrar from time to time;
(v) to arrange for placing before the General Body Meeting of the members the Audit Certificates or Inspection
notes sent by the Registrar;
(vi) to prepare the annual budget of the Society and to recommend the same to the General Body for its approval;
(vii) to incur such expenses as may be necessary for management of the Society within the budget allotment
sanctioned by the General Body for each year;
(viii) to frame, subject to the approval of the Registrar, such regulations for the conduct of the Society as may be
necessary from time to time.
(ix) to regulate from time to time the strength of the staff of the Society, their salary and allowances within the
limit of the budget sanctioned, to appoint, suspend, remove or dismiss or otherwise deal with the employees
of the Society, in accordance with such rules in force;
(x) to administer the movable and immovable properties of the Society;
BYE - LAWS OF THE CENTRAL EXCISE EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LTD., ERNAKULAM 7
(xi) to convene Meetings of the General Body;
(xii) to recommend to the General Body to write off irrecoverable debts and losses and ;
(xiii) to do such other acts and transact such other business as may be incidental to the above functions.
Election of Members to the Managing Committee and their term of office:
24. (1) The members of the Managing Committee shall be elected by the members of the society for a period of two
years. The Managing Committee will hold the office from the date of assuming charge.
(2) Any interim vacancy in the Managing Committee may be filled by election as contemplated in the K.C.S. Act
and Rules, 1969.
Qualifications and Disqualifications of the Membership of the Managing Committee:
25. (1) No member shall be eligible for election to the Managing Committee if he (a) is a paid employee of the Society
or (b) is a near relation of an employee of the Society or (c) is in default to the Society or to any Co-operative
Society in respect of any loan or loans taken by him or any other money due from him or (d) is disqualified
to be elected as per the Rules framed under the Kerala Co-operative Societies Act XXI of 1969 which will
hereinafter be mentioned as the Rules and the Act respectively.
(2) A member of the Managing Committee shall cease to hold his office as such if he incurs any of the disqualifications
mentioned in the K.C.S. Act and Rules, 1969.
Meetings of the Managing Committee:
26. (1) The Managing Committee shall meet at least once in a month or oftener if necessary, to conduct the affairs
of the Society.
(2) The quorum for a meeting of the committee shall be six.
(3) All questions before the Committee shall be decided by a majority of votes of the members present. When
the votes are equal, the decision shall be taken by lot by the presiding officer.
(4) No member of the committee shall be present in any meeting of the Managing Committee during the time
when any matter in which he is personally interested is being discussed.
(5) In case of urgency when there may not be sufficient time to convene a meeting of the Managing Committee, the
Secretary may obtain orders of the managing committee, by circulation of papers. Such decision arrived at by
circulation shall be placed before the next meeting of the Managing Committee for its ratification. Should a
difference of opinion arise in the course of such circulation, the matter shall not be decided by circulation, but
shall be placed before the meeting of the Managing Committee.
(6) Should a member of the Managing Committee absent himself from four consecutive meetings of the Managing
Committee without the permission of the President he shall cease to be a member of the Managing
Committee, but may be reinstated by the Managing Committee and its decision shall be placed before the
next General body for ex-post-facto approval.
Election and powers of the President and Secretary:
27. (1) The members of the Managing Committee shall elect from among themselves a President and a Vice President.
(2) Subject to such resolutions as the Managing Committee may pass from time to time, the officers of the
Society shall have the powers and duties mentioned below.
(a) The President shall have a general control over the affairs, of the Society, All bonds, deeds, etc. shall be in the
name of the Secretary.
(b) (i) The Secretary shall be responsible for the executive administration of the Society, subject to the control of
the President. The paid Secretary if appointed, shall have the custody of cash and all other properties of the
(ii) The Secretary shall be the officer to sue and to be sued on behalf of the Society.
(iii) He shall be responsible to check the stock as often a possible but at least once in a month, to see that
accounts and all other records are maintained properly and that all the books are written up and posted upto-
date and for safe custody of stocks.
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(iv) It shall be competent to the Secretary to incur petty contingent expenditure subject to a maximum of Rs. 100
(c) When the president happens to absent himself/ herself from his/ her office by reason of his/her absence from
Headquarters or illness or any other cause, then the Vice President or any one of the members of the
Executive Committee duly authorised by the President shall exercise the powers and perform the duties of
(d) The Bank accounts of the Society shall be operated jointly by the President and Secretary.
28. Loans shall be given to the members only. But no member can claim a loan as a matter of right. The Managing
Committee shall deal with all the loan applications and sanction the loan to the members subject to the eligibility
to each member and availability of fund.
Applications for loans:
29. Applications for loans shall be made in writing in the prescribed form to the Secretary who shall place them
before the Managing Committee for disposal.
(a) An application for a subsequent loan shall be entertained only after his recrediting 10% of the loan already
drawn by the applicant.
Purpose of Loans:
30. (1) Loans shall be given only if the Managing Committee is satisfied that the same are for useful purposes and
subject to the availability of funds.
(2) The following, among others, are useful purposes:
(i) Marriage of self/ Children/ Sisters/ Brothers
(ii) Medical Treatment
(iii) Debt Relief
(iv) Purchase of vehicles
(v) Construction/ Maintenance/ Repair/ Purchase of house/ Flats.
(vi) Purchase of Land
(vii) Purchase of house hold Articles.
Loans on Emergency:
31. In case of emergency, the President is competent to sanction on the recommendation of the Secretary, on the
responsibility of the borrower alone, upto a maximum of Rs. 30,000 provided that he agrees the same to be
deducted in 20 equal installments commencing from his current month’s salary. The interest on such loans shall
be as the managing committee decides subject to the circular issued by the Registrar of Co-operative societies decides from
time to time. All such payments shall be ratified at the next meeting of the managing committee.
Misuse of Loans:
32. Loans sanctioned shall be utilised for the purpose for which they were obtained. Should the Managing Committee
be of the opinion that a loan granted by the Society has been misued, it shall at once recall the loan and take
steps to recover it with interest without waiting for the expiry of the period for which the loan has been granted.
Individual Maximum Borrowing power:
33. (1) No member shall at any time be indebted to the Society on account of Ordinary Loan & Emergency Loan
taken by him for more than Rs. 8,00,000/-
(2) Subject to this limit a member may at the discretion of the managing committee be given a loan not
exceeding hundred times his paid up share capital or sixty times his basic pay whichever is less.
(3) Housing Loan may be granted to any eligible member upto 100 times of value of his paid up share subject to
BYE - LAWS OF THE CENTRAL EXCISE EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LTD., ERNAKULAM 9
maximum of Rs. 5,00,000/- or 50 times his basic pay whichever is less. (Order No. 0/5388/03/R Dis.
Interest on Loans:
34. Interest on all loans shall be charged at such rates as may be fixed by the Managing Committee from time to time.
The interest of loan for the month of sanctioning shall be calculated on the number of days remaining in the
month from the date of receipt of the loan amount or from the date of drawing the Demand Draft. Penal Interest
shall be charged at 2% per annum on defaulted instalments.
Security for Loans:
35. (a) Loans shall be secured in any of the following ways:
(i) On the security of any deposits at the credit of the borrower not exceeding 90% of such deposits (loans
granted under this clause will not be subject to the restrictions laid down in rule 32 of these bye-laws).
(ii) On the joint and several responsibility of the borrower and two or more members standing surety for him.
Liability of a member on his own account and on account of other members for whom he stands surety
shall not exceed Rs. 24,00,000/-
(iii) On the mortgage of unencumbered landed properties upto 50% of their market value.
(iv) On the pledge of Government promissory notes or on Life Insurance Policies.
(b) When a member standing surety for a loan ceases to be a member due to death or by provisions under bye-laws
No. 8, 9, or 12, the Managing Committee shall demand the borrower to produce a fresh surety for his loan. If
a fresh surety is not produced and arrangements are not made to repay the loan within the period fixed by
the Managing Committee, his loan account shall be closed and action taken as laid down in bye-law No. 42.
Priority in Issue of Loans and Inspection of Securities for Loans:
36. (1) All applications for loans shall be considered in the order of their dates of receipt by the Society.
(2) Notwithstanding anything contained in clause (1) preference shall be given to applications for which
deposits are offered as security.
(3) All movable and immovable properties mortgaged to the Society shall be appraised and scrutinised by two
members of the Committee and they shall give report on their estimated value and about their owners. If any
such report causes any loss to the Society, the General Body may order to realise such losses, from these
members who give such report.
(4) The Committee shall arrange to inspect such movable and immovable properties at least once in a year. If it
is found on inspection that the value of the property or properties stand reduced, the Managing Committee
shall call for additional security.
Repayment of Loans:
37. It shall be open to the borrower to repay loan wholly or partly before the due date according to his convenience.
Period of Repayment of Loans:
38. (1) The Managing Committee shall fix the period of repayment for every loan having regard to the purpose of the
loan and the financial position of the borrower, by quarterly or monthly instalments.
(2) The number and amount of instalments shall be fixed having regard to the ability of the borrower for
(3) The period of repayment of a loan, number-amount and due date of instalments shall be clearly specified in
the loan bond. The loan bond shall also provide for the recovery in full of the balance of principal and interest
thereon in the event of any default in repayment.
(4) The period of repayment shall not exceed 120 months.
(5) The first instalment will fall due on the first of the month succeeding that in which the loan is disbursed.
(6) Payment will be deemed to have been made on the first of every month, if it is received through deduction
from salary for the previous month irrespective of the actual date of receipts.
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Appropriation of payments from members:
39. When a member, from whom money is due, pays any sum, it shall be appropriated in the following order:
Firstly to fees postal, registration and other
miscellaneous charges due from him.
Secondly to interest and
Thirdly to principal.
Penal interest on Recalled Loans:
40. When a sanction for a loan is cancelled by the Managing Committee under bye-law 32 on account of its misuse,
the loan amount shall at once be recalled. When the loan is so recalled, the Managing Committee shall inform the
borrower and the sureties of the fact and of the amount outstanding including interest up to the date of recall of
the loan: On the total amount so found due, interest shall be charged at one paise per rupee per mensum from the
date of recalling the loan to the date of recovery and steps shall be taken without delay to recover the amount.
Society’s charge shares, etc.:
41. The Society shall have a first charge upon the paid up share capital, deposits and any other moneys to the credit
of a member or a past member or deceased member, in respect of any debt due to the Society from such member,
past member or deceased member and the Society may set off any sum credited or payable to a member or
deceased member in or towards payment of any such debts.
Outstanding Loans on Cessation of Membership:
42. If a member at any time becomes ineligible for membership and his name is removed from the rolls under bye-law
No. 9 or he is expelled under bye-law No. 12 and if any loan is outstanding in his name, the Managing Committee
shall close the loan account without waiting for the expiry of the period of repayment originally stipulated. Steps
shall at once be taken for the recovery of the outstanding amount and interest thereon. Interest shall be charged
on the outstanding amount at the rate of one paise per rupee per mensum from the date of closing to the date of
Issue or receipts and acceptance of bonds:
43. Receipts shall be issued for all moneys paid to the Society or moneys paid by the members. The Managing
Committee shall authorise any one or more of the members to sign any receipt. In case of borrowing from
members or non members or other institutions the receipt of bond shall be executed by the President, the
Secretary and two members of the Managing Committee.
Employees of the Society and their service conditions:
44. (1) No member of the Society shall be appointed as its paid employee.
(2) No person shall be appointed as an employee of the Society unless he possesses such qualifications and
furnishes security in such form and according to such standard as may be laid down by the Registrar from
time to time. The service conditions of the employees shall be governed as per rules framed under section 80
of the Act. The appointment shall be made only with the previous sanction of the Registrar.
(3) The Society shall introduce Employees Provident Fund Scheme and Gratuity Fund and shall frame sub-rules
governing the above. The sub-rules to be framed shall be approved by the Registrar.
(4) The Promotion and other aspect of the employees shall be governed by the sub-rules framed for that
purpose duly approved by the Registrar.
Disposal of Net Profits:
45. (a) The net profit of the Society shall, as declared by the Registrar of Co-operative Societies, with the approval of
the General Body, be distributed as follows:
(i) not less than 15% of the profit shall be carried to the Reserve Fund.
(ii) Educational Fund shall be created as per rules made under the Act.
(b) out of the remainder:
(i) a divident not exceeding 20% per annum on the paid up value of each share may be paid to the members.
(ii) the balance, if any, shall be divided in the following manner.
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(a) Not more than 50% shall be transferred to Profit Equalization Fund.
(b) Not more than 35% shall be transferred to Common Good Fund
(c) Not more than 5% shall be transferred to Building Fund.
(d) Not more than 5% shall be transferred to Bad Dedt Fund.
(e) The balance, if any, shall be transferred to Welfare Fund
46. The Reserve Fund shall be one and indivisible. It shall be invested in such manner as the Registrar may direct. It
shall be the common property of the members of the Society and is intended to meet any unforseen losses. No
member can claim a specified share in it. It shall not be drawn upon without the sanction of the Registrar.
Amendment, Repeal or Enactment of New Bye-Laws:
47. (1) Every amendment, repeal or enactment of new bye-laws shall be made only by a resolution passed by a
majority of not less than 2/3 of the members present at the meeting of the General Body of the Society.
(2) No such resolution shall be valid unless notice of the amendment, repeal or enactment has been given in the
notice issued to convene the meeting.
(3) Any such amendment, repeal or enactment shall not be effective until approved by the Registrar of Cooperative
Interpretation of Bye-Laws:
48. Should any doubt arise as to the construction of the Act or any bye-law, the same shall be reffered to the Registrar
for advice and the Society shall act according to his advice and decision and the decision of the Registrar shall be
49. The Society shall prepare annually in such form as may be specified by the Registrar.
(i) a statement showing the receipts and disbursements for the year;
(ii) a statement showing the assets and liabilities of the Society as on the 31st of March last;
(iii) a statement showing the profit and loss for the year and;
(iv) a report on the working of the Society for the year and submit them to the Registrar within fifteen days after
the close of the Co-operative year ending 31st March. After the Registrar has granted his audit certificate the
Society shall publish such of the statements as he may direct in the manner specified by him.
Arbitration of Disputes:
50. If any dispute touching the business of the Society arises, it shall be referred to the Registrar for decision as per
section 69 of the Act.
Irrecoverable losses to be written off:
51. Should any property belonging to the Society be either stolen, or otherwise lost and found irrecoverable it shall be
open to the General Body to write off such amounts after obtaining the sanction of the Registrar.
Copy of the bye-laws:
52. Every member shall obtain a copy of these bye-laws from the Society at a price fixed by the Society.
53. All cash balances in excess of Rs. 10,00,000 shall be deposited in any bank approved by the Registrar. If any one
keeps any money of the Society, penal interst at the rate of 18% per annum shall be realised on all balances kept
in hand in excess of Rs. 10,00,000 from the person who keeps the amount.
54. (1) All members of the Society shall execute an agreement in favour of the Society providing that his employer
shall be competent to deduct from the salary or wages or any other amounts payable to him by the employer,
including Provident Fund contributions of the member and the employer and in case the service of
such member has come to an end, by way of retirement, termination, death, suspension or dismissal, to
deduct from any amount payable to him or to his heirs or nominees consequent upon such retirement,
termination, death, suspension or dismissal, as the case any be, such amounts as may be notified by the
BYE - LAWS OF THE CENTRAL EXCISE EMPLOYEES CO-OPERATIVE CREDIT SOCIETY LTD., ERNAKULAM 12
Society as dues from such member, to the employer from time to time and to pay the amount deducted to
(2) Notwithstanding anything contained in clause (1), it shall be the duty of a member to remit the amounts on
or before the due dates and if the payment is defaulted, the Society may take necessary course of action to
realise such dues.
(3) The Pay Drawing and Disbursing Officer shall deduct such amounts as demanded by the Society on monthly
basis from the salary of the members in accordance with the agreement contained in Sub-Clause (1) above
and shall remit the recovered amount to the Society within 7 days of such recovery.
Change of Address:
55. Every member shall,within a reasonable time, intimate the Society in writing, any change of his address, place of
employment and transfers from one department to another. The Society shall not be responsible for any undelivered
communications or notices on account of failure of a member to notify the change of address.
Thrift Deposits and interest:
56. (1) Compulsory monthly deposits with a minimum of Rs. 5 and a maximum of Rs. 100/- shall be made by every
member of the Society to a Fund to be termed as Thrift Deposit Fund.
(2) Those deposit shall bear interst at not more than 13% per annum as may be specified by the General Body-
The interest shall be cumulative on annual basis.
(3) The balance in the Thrift Deposit Fund shall be returned only on cessation of membership.
Provided that the Managing Committee shall be competent to refund the total credit after a lapse of five years
from the date of the initial credit.
Death Benefit Scheme:
57. (1) Compulsory monthly deposits at the rate of Rs. 10 shall be made by every member of the Society towards the
Death Benefit Scheme.
(2) On the death of a member, the Society shall pay Rs. 10,000/- to the nominee or the transferee, as the case may
be referred to in Bye-law No. 10, unless the member has defaulted in his payment towards the scheme;
Provided that the Managing Committee can condone 3 months default on sufficient cause being shown
whereas the General Body has power to condone any default.
58. The society shall have an Office, Name Board and a Common Seal.