MCS Act- 1960

Maharashtra Co-operative Societies Act, 1960 provides order and laws for development of co-operative societies in the state of Maharashtra. This Act was passed as a law by the Maharashtra legislative assembly in 1960 enacted in the eleventh year of the Indian republic. It extends to the whole state of Maharashtra giving detailed laws for registration to membership and liability of members and incorporation of duties and privileges of the co-operative societies across the state. This micro enterprises are leading in promoting women entrepreneurship, keep the market available for them, development of their business, encourage decent employment, promote self-help organization etc. These types of co-operatives are usually deals in producer, consumer, and worker co-operatives.

Section 91-A of the MCS Act 1960 was inserted in 1974 and Co-operative Courts were established in certain territories to deal with the number of cases, then pending in this area. Section 91 of the MCS Act 1960 confers exclusive jurisdiction on Co-operative Courts to decide the disputes between parties referred to in section. It prescribes the jurisdiction of ordinary civil courts to decide such disputes between the parties referred to in the said section.

Section 101 of the MCS Act 1960 contemplates a recovery of the amount due to the society in a summary manner with regards to certain societies. The different procedures that are followed under these two sections often conflict with one another. Societies and Co-operative banks are interested in recovering amounts, due from the members, by adding sureties as parties u/s 101 of the MCS Act 1960. The reason for this is that a certificate can be obtained from the Registrar as per the provisions of the MCS Act 1960 without a full-fledged trial. Thus, the procedure for the recovery of money due to a society or bank is comparatively easy & speedily disposed off. Unfortunately, often Co-operative Societies and banks, in order to defraud their creditors and to expedite their claims from borrowers, file proceedings under Section 101 before the Registrar. The reason is that this section gives relief quickly and without any full-fledged inquiry. However, this practice is prejudicious to the members of the society.

Now Maharashtra has a recent State Ordinance promulgated on March 9th 2019 amending the MCS Act 1960 with view to provide a simpler regulatory regime for housing societies in Maharashtra.