Saturday, April 8, 2017

Chptr-2. Co-operative Registration in India

                                                                                                        HISTORICAL BACKGROUND


sir rajagopalchari, who was the registrar of co-operative societies  at  madras province was  appointed  as diwan  of  Cochin  and  subsequently  as  diwan  of  travacore  state.  he had  the  experience  in  the  working    of  co-operative  societies.  so  he  took   the  initiative rand  thereby the first act  by  the  name  Cochin  co-operative  societies  act  of  1913  was   passed.                                                                          
according  to  the  provisions  of  this  act  first  society  organised  in  Cochin  state  is still working  by  the name  edavanakkad  service  co-operative  bank. the  same rajagopalachari  was  appointed   as  the  diwan  of   travancore  also.he  took  the initiation  and thereby travancor co-operative societies  regulation was passed in the year 1914. the late c. govindpillai was appointed as the first registrar of co-operative society in travencore state on November 1914 the first society was registered on 17th November 1914 by the name trivandram central co-operative bank ltd which is the present Kerala state co-operative bank in 1949 the travencore and Cochin state were integrated and thereby travencore Cochin state was formed .at the time travencore co-operative society act was applicable to the Cochin state. There arise necessity to have a common law for the entire travencore Cochin state and in 1952 travencore Cochin co-operative societies act was passed. This was applicable to the entire travencore, Cochin State and old acts were repealed  

Acts


1. Cochin co-operative society Act 1913 
2. Madras co-operative society Act 1932 
3. Travencore co-operative society Act 1914
4. Travencore Cochin co-operative society Act 1952
5. Kerala co-operative society Act 1969 

Chptr-1.Co-operative Registration in India

HISTORICAL BACKGROUND 


During the early period of British rule the economic condition of the Indian villages was completely shattered.
Britain exploited India by exporting the rich raw materials of our country and importing the manufactured goods from England. Britishers made India a market of their finished product. as a result Indian industries had a set back and they gradually collapsed .
the people who were engaged in such industries had no other alternative but to fall back upon agriculture for their livelihood. this situation added the pressure on land. the Britishers did not pay attention to the problems of  the agriculturists. consequently it was a period of money lenders. they lend money at high rate of interest to the needy agriculturists. this situation increased their indebtedness the money lenders exploit agriculturists , which resulted in unrest among agriculturists   
 ACTS

1. The co-operative credit society Act 1904
2. The co-operative credit society Act 1912
3. Co-operation as state subject 1919
4. Multi unit co-operative society Act 1942
5. Multi state co-operative society Act 1984
6. Multi state co-operative society Act 2002
7. Andhra pradesh mutually aided co-operative society Act 1995
8. banking regulation Act 1949 applicable to co-operatives

Chptr-4.Chptr-4.Registration Of Co-operative Societiess

Co-operative societies are one of the forms of business organisation these are formed by the people who wish to get some benefit from that organisation. they function under the sovereign principle principle of mutual help. generally, they are formed by the economically weaker sections who join together for the promotion of their common economic interest. in this way different sections of people join together and form co-operative organisation or society for their betterment. The object of the society is to improve the condition of the community as a whole.


REGISTRATION
For forming the society it is compulsory to register for getting the legal entity. For that purpose a co-operative society must be registered  under co-operative society Act only after the registration, it can commence its operation . Section 4 to 8 of Kerala co-operative society act 1969 and rules 3 and 4 dealt with the registration of a co-operative society

SECTION 3 (1)
*Registrar
SECTION 4
*Objects
SECTION 5
*Limited liability
SECTION 6 AND RULES 3
*Application for registration
SECTION 7 AND RULE 4
*Registration
*Modification
*Refusal
SECTION 8
*Registration certificates
SECTION 9
*Corporate status
RULE 5
*Bye-Laws
*Subject matters of bye laws
RULE 6
*Model bye-laws
SECTION 10
*Change of name of society
SECTION 11 AND RULE 12 
*Change of liabilty
SECTION 12 AND RULE 9
*Amendment of bye-law
*Procedure for amendment
*Compulsory amendment of bye-law 

Chptr-5.Membership in Co-operative Societies s

SECTION 16

ELIGIBILITY TO BECAME A MEMBER  
Section 16 of the co-operative society act provides that membership of co-operative
society is given to the following category of people and institutions.
1. An individual
2. Any other society
3. A local self government
4. the government 
5. Any body of person whether incorporated or not and approved by the government

SECTION 16 & RULE 16 
INDIVIDUAL MEMBERSHIP-QUALIFICATION
According to the section 16 and rule 16 of the co-operative society Act an individual must have the following qualification for membership in a a co-operative society
1. he must have attained 18 year 
2. he is sound of mind
3. He must be a resident within the area of operation of the society or in the occupation
    of land with in the area of operation of the society  
4. He should not be adjudicated as an insolvent
5. he should not have been sentenced for an offence other than of political nature or
    involving moral turpitude
6. He is not a paid employee of society or of this financing bank. This restriction shall
    not apply to co-operative motor transport society, co-operative work shop, societies
    for the employees for financing
    bank  and societies formed for benefit of actual workers 
7. He should not have been surcharged, if surcharged a period of three year
    have been elapsed

PROCEDURE OF GETTING A MEMBERSHIP 
1. He should apply in the prescribed form given by the society
2. His application is approved by the committee 
3. He has full filled all other condition laid down in the act, rules and bye-laws
4. In case of other society or body of person or non statutory board approved by government, committee or     corporation the application for membership shall be accompanied by a resolution authorized it to apply for     such membership    

TERMINATION OF MEMBERSHIP 
1. By expulsion of members if he has acted against the interest of the society
2. By removal of member
3. By withdrawing all his shares 
4. By transfer all of his shares 
5. By liquidating the society
6. By the death of a member

Chptr-6.Management Of Co-operative Societiess

Like other body co-operative society may also be managed.This is for getting work done. This is also be managed. This is for getting work done. This is a accomplished by using the services of other people in the society. As management of co-operative society is done on democratic basis it is vested with the general body and managing committees.


SECTION 27
GENERAL BODY
The general body is considered as the supreme authority or final authority of a co-operative society . It is the organisation of members of the society. All members of the society except nominal or associate members are entitled to attend the general body meting. Proxy is not allowed in the case of general body of societies. Ordinarily managing committee convenes the general body. If the committee fails then the registrar will convene the general body.

SECTION 28
MANAGING COMMITTEE
As per section 28(1) the general body of a society shall constitute a committee for a period not exceeding five year in accordance with act, Rules and bye laws and entrust the management, the affairs of the society to such committee the maximum number of members of the committee shall not exceed 15 in the case of primary society and 25 in other societies. In the case of federal society, number of individual in the society and the committee there of shall not exceed 25 percent of the total number of members in the society

POWERS OF MANAGING COMMITTEE
1. Election of office bearers
2. Admission of members and allocation of shares
3. To raise necessary funds in the form of deposits and loans
4. To convenes the general body meetings
5. To arrange for the proper maintenance of accounts of the society
6. To appoint, control and supervise the staff
7. To constitute the sub committee
8. To sanction transfer of shares and withdrawel of shares
9. To decide on how to invest the funds of the society
10.Consideration of  audit, inspection and enquiry report

Chptr-7.Privileges Of Co-operative Societiess

Co-operative society are public institution formed by a group of persons having identical needs, to promote their economic interest though self help and mutual aid concept. Societies are registered under the co-operative societies act of Kerala and these institutions have been granted special privileges and concession under the co-operative society

SECTION 35  
FIRST CHARGE OF SOCIETY ON CERTAIN ASSETS
Section 35 provides that any debt due from a member or past member or deceased member shall be a firs charge.
1. Upon the crops or agricultural produce which are raised with the loan
    available from the society
2. Upon any cattle fodder for cattle agricultural or industrial implements or
    machinery purchased out of any       loan given by society. The charge made
    in favor of society shall not  be transferred without the previous permission
    of the society such charges shall be available as against any claim of the
    government arising from any loan granted by them
SECTION 36 RULE 51
CHARGE ON LAND HELD BY MEMBERS
Section 36 rule 51 provides that a member of an agricultural society where he hold any land can create declaration in the prescribed form. This declaration creates charge on land for the payment of loan taken by the member. The declaration shall be registered

SECTION 37 RULE 52
DEDUCTION FROM SALARY TO MEET SOCIETY'S CLAIM 
A member of the society as loan or surety may executive the agreement in favor of the society providing
that the employer or salary disbursement officer shall be competent to deduct from this salary such amount as may be specified in the agreement and to pay the amount so deducted to the society towards any debt or dues payable by the member to the society . In the case of default by such member the society. in the case of defaulter by disbursement officer to deduct such amount from his salary unit the full realization of the debt.

SECTION 40
EXEMPTION FROM STAMP DUTY
Section 40 provides that a society are exempted from stamp duty in respect of transactions made between the society and member up to a certain limit.
The government may by notification in the official gazette exempt any class of societies from taxes-on
1. Agricultural income
2. sale or purchases of goods and
3. professions, trade, callings and employments

Chptr-8.State Aid To Co-operative Societies

State partnership in co-operative society would provide a helping hand to co-operative movement so as to enable the co-operative organisation to withstand oppositions from vested interest This would also create confidence of the public in the co-operative institutions .it would also provide the societies adequate borrowing power and enable them to meet the credit requirement of members to the desired extent. In this respect state partnership should not lead to state control or interference

SECTION 42
DIRECT PARTICIPATION OF GOVERNMENT
The government may subscribe directly to the share capital of a society with limited liability. The government is entitled to get dividend at the rate payable to other shares of the society. The government cannot claim a high rate of dividend

SECTION 43
INDIRECT PARTNERSHIP OF GOVERNMENT
The government may advance money to the society for the purchase of the shares in other society with limited liability

SECTION 44
PRINCIPLE STATE PARTNERSHIP FUNDS
An apex society which has received money from the government for the purchase of shares shall establish a fund known as principal state partnership fund. The fund shall be utilized
1. Directly to purchase shares in other society with limited liability
2. providing funds to a central society to enable the society to purchase shares
    in other societies with limited liabilities
3. Making payment to the government in accordance with the provisions
4. And for no other purpose

SECTION 45
SUBSIDIARY STATE PARTNERSHIP FUND
A separate funds known as subsidiary state partnership fund shall be established by a central bank. with the money received from the apex bank. Subsidiary state partnership fund shall be utilized.
1. only for the purpose of purchasing shares in primary society
2. Also to make payment to the apex society
3. And for no other purpose.

Chptr-9.Properties & Funds of Co-operative Societiess

Like other organisation co-operative society are business organisation. They are also dealing in funds and financial matters. Hence they require sound financial base and control. For the systematic and sound financial operations societies are framed property with measures and rules in co-operative act this chapter deals with sections and rules which are needed for the management of properties and funds of co-operative societies.

SECTION 55 
FUNDS NOT TO BE DIVIDED 
Except the net profit, the funds of co-operative society shall not be paid as bonus or dividend or otherwise distributed to members. But a member may be paid down in the bye-laws for the service rendered by him to the society.

SECTION 56 
DISPOSAL OF NET PROFIT 
Net profit of a co-operative society shall disposed in the following manner.
1. Transfer an amount not less than 15% of net profit to the reserve funds.
2. An amount not exceeding 5% shall be paid to the co-operative education
    fund subject to a maximum of  Rs.40000
3. In the case of central society including a direct co-operative bank an amount
    not exceeding 25% of the paid up capital for dividend to its members

The balance of profit may be utilized for any of the following purposes

1. dividend to members at a rate not exceeding 20% of the paid up share capital
2. Bonus to members in proportion to the business transacted with the society
3. Contribution to special funds as specified in the bye law.
4. Contribution to common good fund to the extent of 10%
5. payment of bonus to employees of the society as specified in the bye law.

SECTION 57 
INVESTMENT OF FUNDS
This deals with the manner in which the funds of a society shall be invested.It may be as follows.
1. In government savings bank
2. In share or securities of the society approved by the registrar
3. securities specified in section 20 of the Indian trust act
4. In any bank approved by the registrar
5. In any other manner prescribed in rule 54

Chptr-10.Final Accounts Of Co-operative Societies

BOOK OF ACCOUNT

Every co-operative society shall keep account.
1. All sums of money receive and expended by the society and matters in respect
    of which the receipt or expenditure take place
2. All sales and purchases of goods by the society
3. The assets and liability of the society and shall maintain corrected up-to-date
    such account books and subsidiary ledger and such as the registrar may direct
BOOKS OF ACCOUNT FOR CONSUMERS CO-OPERATIVE SOCIETY 
1. Cash book
2. Cash sale subsidiary book
3. Credit sale registrar
4. purchases, issues and stock registrar
5. Liability registrar
6. Store ledger
7. Security registrar
8. Fixed asset registrar
9. Members registrar
10. Share certificate register
11. stamp register, etc

BOOK AND REGISTER TO BE MAINTAINED BY THE CO-OPERATIVE CREDIT SOCIETIES 
1. Day book
2. Payment book for loans advance
3. Sundry payment book (other than loan)
4. Receipts and payment books for fixed deposit receipts
5. Sundry receipt book
6. dividend payment books
7. Members registrar
8. Share ledger form
9. Fixed deposit personal ledger
10. Unpaid dividend register
11. Suspense register
12. Investment register
13. Share transfer register
14. dead stock register
15. Recoveries register for advance
16. Sanction register for loan, for membership, for share refund
17. register for cheques, draft, payment order inward
18. postage register for postage stamps

Chptr-11.Audit, Enquiry and Inspection

An efficient audit program ensures proper management of the society. Being democratic institution the persons who are related with the society want to known whether the society is going for the common interest of all.

SECTION 63                       

DIRECTOR OF CO-OPERATIVE AUDIT 

Section 63 of the co-operative society act deals with audit. It provides that director of co-operative audit or any body authorized by him audit the accounts of the society at least once a year.

SECTION 64 

SCOPE OF AUDIT - POWERS OF THE DIRECTOR OF CO-OPERATIVE AUDIT AND PROCEDURE FOR AUDIT


AUDIT MEMORANDUM

The auditor shall submit to the registrar, after the audit of a society is finalized an audit memorandum or report in the form prescribed by the registrar. This is concerned with the audit work done by him or the accounts examined by him and on the balance sheet and final account. 
Memorandum will state the following
1. Whether in the opinion of the auditor proper book of accounts have been
    kept as per the act and bye laws
2. Whether he has obtained all the information and explanation for the conduct
    of the audit
3. Whether the final accounts are in tally with the book of account

The memorandum will also contain the schedules with the particular of 

1. All transaction which appear to be contrary to the provisions of the act,
    Rules and bye laws.
2. All sums which ought to have been brought to accounts but not done so by the society.
3. any material irregularity 
4. any money or property are doubtful 

SECTION 65 & rule 66 
ENQUIRY
Section 65 deals with enquiry. An enquiry is held by the registrar to esquire in to the constitution, working and financial condition of a society as and when occasion arises and circumstances warrant it. This is usually held when there are serious irregularities noticed in the working of the society.

The enquiry is ordered at the following circumstances

1. Registrar on his on accord
2. On an enquiry report of the vigilance officer 
3. On a report of the director of co-operative audit.
4. On an application by majority of the committee members

Chptr-12.Settlement Of Disputes

DISPUTES


In section 2(1) of kerala co-operative society act the term dispute is defined. Accordingly," a dispute means any matters touching the business, constitution,
establishment or management of a society capable of being the subject matters of litigation and includes a claim in respect of any sum payable to or by a society whether such claim be admitted or not".

 SECTION 69 

DISPUTES TO BE DECIDED BY CO-OPERATIVE ARBITRATION COURT AND REGISTRAR 

Section 69 provides that any dispute touching the constitution or business or establishment or management of a society which fall under the following categories shall be referred to the registrar for decision and no court shall have jurisdiction for such disputes.
1. Among members, past members
2. deceased member and the society
3. Between the society or its committee and past committee, any officer or employee
   or any past officer
4. Between the society and any other society
5. Between the society and the members of a society affiliated to it.
6. Between the society and surety of a member
7. Between the society and a creditor of a company

According to section 69(2) the disputes may be in the following cases

1. A claim by the society or any amount due to it from a member nominee or legal
    representatives of the deceased member
2. A clam by a surety against the principal debtor
3. Any disputes arising  in connection with the election of the board of  management
    or any officer of the society

The person deciding the dispute should pass an order under the provisions of the act rules and bye laws. such an award shall be final subject to the provision of section 82.
For the easy and quick disposal of disputes in co-operative societies act the registrar is empowered to act as an arbitrator and the power of the civil court have been conferred on him.   

Chptr-13.Liquidation

A co-operative society is formed with definite objectives. Members normally expect certain services from a society. But this may not be really achieved from a defunct or dormant society. If the society is going against its object and beyond his power, there is no other alternative but dissolve it. The competent authority under the act to wind up or dissolve the society is the registrar who usually appoint a liquidator for the purpose.

SECTION 71 (1) (2) 
WINDING UP OF LIQUIDATOR
Section 71 (1) state that if the registrar after an inquiry has been held under section 65 or an inspection has been made under section 66 or on receipt of an application made by not less than 3/4 of the member of the society, is of the opinion that, the society ought to wound up he may make an order in writing to direct the society to be wound. Before doing so, he should consult the financing bank and circle co-operative union. He shall give an opportunity to the society to state its objection if any.

the other circumstance of  liquidation are the following.

1. Where the total number of the members has been reduced to less than 25
2. Where the society has not commenced working with in six month of it registration 
3. Where the number of actual workers falls below the prescribed limit in the case of
    a society formed exclusively for the benefit of the person engaged in a particular
    industry or operation 

SECTION 73 & RULES 69 
POWERS OF LIQUIDATOR 
1. The liquidator shall publish a notice require all claims against the society to be
    submitted to him within a period of tho months
2. File the case for and on the behalf of the society
3. To determine the contribution to be made by the members, past members,
    legal heirs, nominees etc after settling the asset and the liability of the society 
4. Liquidator shall investigate the clime against the society. Priority in settling
   the clime shall also be decided by the society. He shall have the power to fix
   the rate of payment as per the availability of the funds.       
5. Cost of liquidation shall be decided by him
6. he shall have the power to decide whether a person is a member, past member,
    nominee, heir etc.

Chptr-14.Insured Co-operative Banks

SECTION 74 A 

CHARACTERISTIC FEATURE OF INSURED CO-OPERATIVE BANKS  
 According to section 74 A,an insured co-operative bank means a society which has been affiliated with the deposit insurance and credit guarantee corporation.
The provision of banking regulation act 1949 was made applicable to state co-operative bank. district co-operative bank and co-operative urban bank. the co-operative bank are coming under the banking regulation act are eligible to get their deposit insured
under the provision of deposit insurance co-operative act of 1961. Thus RBI advised the power on the matters such as regulation and advance, maintenance of cash reserve,
winding up, supervision of management etc. Accordingly Kerala government inserted section 74 A by amending the act in 1974 so as to avail the facilities of insurance cover to the deposits of co-operative banks as in the case of commercial banks.

Section 74 A provides the following 

1. An order to winding up or at sanctioning of amalgamation, transfer of asset or
   division shall be made only with previous written sanction of the RBI 
2. An order for winding up of the bank shall be made by the registrar if so
    required by the RBI on the circumstance referred to in section 13 D of
    deposit insurance corporation act 1961 
3. The registrar may super cede the committee if so required by the RBI
4. An order to winding up, amalgamation, transferee of assets, division and
    supervision can not be questioned in any manner other than by appeal review or revision 
5. The liquidator or insured co-operative bank or transferee bank as the
    case may be, shall be under an obligation to repay the DIC to the extent
    and in the manner referred to in it  

   For the purpose of this  section a co-operative bank means a bank as has been defined in the deposit insurance corporation act 1961. Insured co-operative bank under the provision of deposit insurance corporation act of 1961

Chptr-15.Executive Of Awards, Of Decrees, Orders and decision

Generally execution of award or decree is the duty of civil court. But for the speedy implementation of their work this power is specially conferred on the registrar or any other person authorized by him under the co-operative society act.

SECTION 75 
ENFORCEMENT OF CHARGE 
Under section 75 the registrar may on the application of the society direct the payment of any debt due to the society by any member, past member or deceased member, by sale of property or interest there in which is to charge under section 35(1). Before issuing such an order, the member concerned has to be given a notice of the application and if the member failed to pay the debt within thirty days from the date of serving the above notice.

SECTION 76 
EXECUTION OF ORDER, AWARD ETC
The following order, award etc. if not carried out shall be executed as a decree of a civil court.
1.The order of surcharge issued under section 68.
2. order passed under under section 75 for enforcement of charge
3. Award issued issued under section 70
4. Order made by liquidator under section 73
5. Every order in appeal review by the tribunal under section 82,84,85 or 86
6. The order in appeal made by other authorities under section 83

If the parties fail to carry out orders they shall be executed in the following ways.

(1). On a certificate signed by the registrar or any person authorized by him in this
       behalf, be deemed to be a decree of a civil court and shall be executed in the
       same manner as a decree of such court.
(2). Where the order is for the recovery of money, be be executed accounting to the
       law for the time being in force for the recovery of arrears of public revenue due
      on land. the application for such recovery shall be       made to the collector
       accompanied by a certificate signed by the registrar. The application should be
       submitted within 12 years from the date of the order.
(3). the registrar or any other person empowered by the registrar in this behalf shall
       executed it by the attachment and sale or through attachment of any property of
       the person or a society.

Chptr-16.Establishment

Employees are an impotent part of any type of organisation. The success and the failure depends upon its employees. if they are efficient their organisation becomes inefficient. So maximum attention is laid in the co-operative act for an efficient staff pattern. The following paragraph shows the employee pattern and the service and the service condition of the employees.
SECTION 80 
OFFICERS ETC. OF CO-OPERATIVE SOCIETY
1. The government shall classify the society in the state according to their
    type and financial position 
2. In consultation with the state co-operative union the government shall fix
    the number and designation of officers and other servant of various class of societies.
3. The government shall in consultation with the state co-operative union
    make rules regulating the qualification, remuneration, allowance and other
    conditions of service of the officers and servants of the different classes of societies  

SECTION 80A 
PENSION SCHEME 
80 A (1) provides that the government may by notification in the gazette, frame a self financing pension scheme for the establishment of a pension funds for payment of pension to the employee of society in the manner provided there in and may fix different dates for the application of the scheme to different classes of society.

SECTION 80 B 
CO-OPERATIVE SERVICE EXAMINATION BOARD 
The government shall constitute a co-operative service examination board for the conduct of written examination for all director recruitment of the posts of junior clerk and above in the primary agriculture credit societies, primary credit society, Urban co-operative banks, and primary agricultural and rural  development bank in the state.
The board consist of not more than 3 members and its term is five year. the mode of conduct of written examination and the powers of the board are enlisted under rules 182 and 182 A of the act 

RULE 190 
LEAVE RULES
All employee are eligible for leave as per the Kerala service rule.

RULE 196 
FRAMING OF RULES BY THE SOCIETY 
Societies are to frame necessary bye laws specifying the duties and responsibilities of the employees and to implement them.

Chptr-17.Other Laws-One

CIVIL PROCEDURE CODE 1908 


INTRODUCTION
Civil procedure code 1908 came into force in India on 1st January 1909. it extends to the whole of India except the state of Janmu and Kashmir, state of nagaland and the tribal areas. But the state government concerned may extend the provisions of this code to the whole or part of the state of nagaland or such tribal areas by notifications in the official gazette.
CIVIL PROCEDURE CODE 
The civil procedure code 1908 is a comprehensive law constitute of 158 section and 51 orders governing the procedure of civil courts in India 

DECREE
Decree according to section 2(2) of civil procedure code means the formal expression of an adjudication which so far as the court expressing it, conclusively determines the rights of the parties with regard to all or any of the matters in controversy in the suit and may be either preliminary or final. It shall be deemed to include the rejection of a plaint and the determination of any question. it shall not include.  
1. Any adjudication from which an appeal lies as an appeal from an order or
2. Any order of dismissal.
A decree may be final or preliminary 

CONTENTS IN A DECREE  

The term decree includes the following essential element.
1. There must be formal expression of  adjudication
2. The adjudication must have determined the right of the parties with regard to matters in
    controversy in the suit
3. The decree must have determined the right of the parties with regard to matters in 
   controversy in the suit.
4. Such determination must be of a conclusive nature

ORDER
Oder means the  formal expression of any decision of a civil court which is not a decree. Oder may be of appeal able orders and interlocutory orders  

Chptr-19.Other Laws-Three

THE KERALA CHITTIES ACT  1975 
Chitty helps to obtain fund for meeting the financial emergencies of common man. the advantages of person who conduct of common man. the advantage of person who conduct the chitty is that he is entitled to receive the first installment of collection, interest due from the subscribes who may make a default in payment of their subscription on due dates and a small fee on all the collections. It is not a speculative transaction but a commercial or business venture
The Kerala chitty act came in to force in 1975 and it extends to the whole state of keral. since 1975 and it extends to the whole state of kerala. since 1975 when ever a person is conducting chitty the permission from
the registrar appointed for the purpose of the should be obtained. the registration the application should be submitted to the registrar along with the permission and variola. The person who conduct the chitty is called foreman. Variola means the document containing the articles of agreement between foremen and subscribers relating to the chitty.
VARIOLA 
This is the document containing the articles of the chitty association. It is the deed of agreement entered in to by the foreman and subscribers. It contain the following.
1. Name and address of subscribers
2. The number of tickets subscribed by each subscriber
3. The amount of ticket
4. Method of filling up the subscribers
5. Commission of foreman, discount etc.
6. Foreman's bank
7. Nature of sureties offered by foreman
8. Nominee's particular
9. the books maintained by foreman

according to section 18 the following books must be maintained by the foreman.

1. Register showing name and address of subscribers.
2. Chitty minutes book
3. Chitty ledger
4. Register of sureties.
5. Receipt book
6. Notice book

CHITTY-WINDING UP
Chitty can be wound up in the following circumstances.
1. Expiry of the chitty period
2. As per the terms of variola
3. Mutual agreement by prized subscribers and non defaulter-ed non prized subscribers
4. death or lunacy of the foreman and his legal heirs are unable to proceed the chit. 

Chptr-20.Other Laws-Four

KERALA LAND REFORMS ACT

The passing of Kerala land reforms act is an important event not only in Kerala but also in the country. In 1960 Kerala agrarian relation act was passed. But the supreme court delayed it as unconstitutional. Soon in 1963 Kerala land reforms bill was passed. But this lacked some benefit to kudikidappukars and actual cultivator of land. Consequently in 1969 Kerala land reforms act was passed. this legislation attracted the masses of agriculturist in the state and stood as important land legislation in the country.

SPECIAL FEATURES OF THE ACT

The special features of kerala land reforms act are the following.
1. This legislation conferred the right of fixity of tenure on cultivating tenants
2. The act prescribed the uniform rate of rent applicable through out the state for different class of land 
3. Provided provisions enabling the cultivating tenant to purchase the rights of the land owner
4. Prescribed and secures the right of kudikidappukars
5. There were provision fixing the ceiling on land 
6. provision were made for the constitution of land tribunal and land boards

SECTION 81 

EXEMPTION

In computing the ceiling area the following land are excepted
1. Land owned by the government 
2. Lands taken under the management of court of wards
3. Lands comprised in mills, factories or workshop and which are necessary for the 
    use of them 
4. Private forests
5. Plantations
6. Lands mortgaged to government, co-operative societies kerala financing 
    corporation KSIDC etc.
7. Land purchased by agriculture development banks, KFC,SFC
8. Lands belonging to an industrial or commercial under takings 
9. House sites
10. Sites of temples, mosques, churches, and cemeteries and burial and burning grounds 
11. Sites of warehouses 
12. Commercial sites
13. Lands occupied by educational institution 
14. Lands vested by bhoodan yegna committee
15. Land owed by the university