THE WEST PAKISTAN CO-OPERATIVE SOCIETIES AND CO-OPERATIVE BANKS (REPAYMENT OF LOANS) ORDINANCE 1966. (WEST PAKISTAN ORDINANCE, XIV OF 1966).
PREAMBLE Sections Pages
8-A. Restriction on Registration of documents. 8-B. Registration on alienations. 9. Power of Registrar when making inquiry.
THE WEST PAKISTAN CO-OPERATIVE SOCIETIES AND CO-OPERATIVE BANKS (REPAYMENT OF LOANS) ORDINANCE, 1966.WEST PAKISTAN ORDINANCE NO. XIV OF 1966. [27th April, 1966] AN ORDINANCE to provide for the repayment of unsecured loans or loans insufficiently secured.
AND WHEREAS the Provincial Assembly of West Pakistan is not in session and the Governor of West Pakistan is satisfied that immediate legislation is necessary; NOW, THEREFORE, in pursuance of the powers conferred on him by clause (1) of Article 79 of the Constitution, the Governor of West Pakistan is pleased to make and promulgate the following Ordinance, namely:—
Short title extent and commencement.
2. In this Ordinance, unless there is anything repugnant in the subject or context.—
(a) "Act" means the Co-operative Societies Act, 1925 (Sindh VII of 1925); (b) "Assistant Registrar" means an Assistant Registrar of Co-operative Societies appointed or deemed to have been appointed under the Act to assist the Registrar;
3: Subs, by N.W.F. P. Adaptation of Laws Order, 1975.
1(bb) "benami loan" means a loan the real beneficiary or recipient whereof is a person other than the person in whose name the loan is advanced or granted; 1(bbb) "borrower" includes in case of a benami loan the real beneficiary or recipient of the loan;
(f) "loan means a loan (including 1[a benami loans or] any transaction which in the opinion of the Registrar is in substance a loan), whether of money or in kind, which is not secured or is insufficiently secured, and taken from a co-operative society by any person, whether a member of such society or not, or from a co-operative bank by any person but not a co-operative society and includes, 4[(i) finance as defined in the Banking Tribunals Ordinance, 1984 (LVIII of 1984), and all cognate expressions shall be Construed accordingly] 3[(ii) any amount which is due from any such person to a co-operative society or a co-operative bank whether taken as a loan or not; (iii) any amount due from any such person to a co-operative society or a co-operative bank under a decree passed by a Civil Court or an award given by an arbitrator or a decision of the Registrar, whether in exercise of his original or appellate jurisdiction ; and
(iv) any loan due from any such person io a co-operative society or a co-operative ban k which is the subject matter of any pending arbitration proceedings, ap ;al or revision whether under the Act or before any Court.
Explanation. — A loan is "insufficiently secured" if it is not secured by mortgage, pledge, hypothecation or assignment of such property of the borrower or of his surety or of both, as in the case of a loan not exceeding thirty thousand rupees, the Assistant Registrar, and in the case of a loan exceeding thirty thousand rupees, the Registrar may think adequate: and (g) "Registrar" means a Registrar of Co-operative Societies appointed or deemed to have been appointed under the Act, and includes a person upon whom 1[..]the powers of a Registrar have been conferred under the Act.
Repayment of loans.
4. Every co-operative society and co-operative bank, through its manager or Secretary, shall—
Supply of information to the Registrar.
(a) when a loan obtained for it is not repaid by the date on which it is due for repayment, bring such fact, together with full details of the case and the particulars of the borrower [including, in the case of a benami loan, the real (beneficiary or recipient of the loan) ] and the surety, to the notice of the Assistant Registrar, when the amount of the loan does not exceed thirty thousand rupees, and to the notice of the Registrar, when the amount of the loan exceeds thirty thousand rupees; and
1. After the explanation, in clause (g), after the words "whom" the word "ail", omitted by N. W. F. P. Ord. No. XII of 1981 2. Ins. by W. P. Ord. XXV of 1966, s.3.
(b) when so directed by the Registrar or the Assistant Registrar, as the case may be, within thirty days of receipt of such direction, furnish to the Registrar, full information in respect of all cases of loans falling under section 3 required to be repaid or secured under section 7.
5. (1) On receipt of information under section 4 in respect of any loan, the Registrar or the Assistant Registrar, as, the case may be, shall issue or cause to be issued a notice to the borrower and his surety requiring them to repay and secure the loan in accordance with the provisions of section 8.
(2) A notice under sub-section (1) may be served— (a) by giving or tendering it to the persons named in the notice; or (b) by enclosing t in a cover and send such cover by registered, post, acknowledgement due, to the last known address of the person named in the notice; or
Determination of liability when loan is not admitted.
6. Where any borrower or his surety, to whom notice under section 5 is issued, does not admit the loan or any liability arising therefrom, such borrower or surety, as the case may be, shall, within thirty days of the receipt of the notice, submit, either personally or by registered post (acknowledgment due), a written statement to that effect to the Registrar, or the Assistant Registrar, by whom such notice was issued or caused to be issued, and such Registrar or Assistant Register, as the case may be there upon shall cause notice to be issued to the Co-operative society, or the co-operative bank, as the case may be, and in the case of benami loan to the alleged beneficiary, and shall, after making such inquiry as he may consider necessary and giving the parties a reasonable opportunity of being heard, decide the matter.
Securing and repayment loan.
7. Within sixty days of the service of the notice under section 5 in a case where the borrower does not deny the loan or the liability arising theron, and in the other case, within sixty oays of the decision of the Registrar or the Assistant Registrar, as the case may be, under section 6, the borrower and his surety shall: —
1[8. (1) If the amount of any loan or any part thereof to be repaid in accordance with the provision of section 7 is not paid within the period or the periods specified in the said section, the same may, without prejudice to the provisions of section 10, be recovered according to the law and under the rules for the time being in force for the recovery of arrears of land revenue.
Recovery of loans.
(2) Where the borrower is a firm, partnership, company or other association of persons (not being a company registered under the Companies Act, 1913, the liability of the members where of is limited), the loan or any part thereof due from such borrower may be recovered from the assets of such firm, partnership, company or other association of persons, as the case may be, or from the members or partners thereof.]
Restrictions on registration of documents.
1 Section 8 re-numbered as sub-section (21 and sub-section (1). added by W. P. Ord. XXV of 1966, s. 4. 2. Inserted by ibid s. 5.
(a) the person whose right, title 01 interest in the property is or will be tranferred, assigned, limited or extinguished under the terms of the document or on the basis of the mutation in the Record of Rights, as the case may be, furnishes an affidavit to the Registering Officer or the Revenue Officer, as the case may be, to the effect that he does not owe any loan, whether due immediate or on a future date, to a co-operative society or a cooperative bank; or (b) where such person owes a loan to a co-operative society or a Co-operative bank, whether due immediately or on a future date, it is certified by the Registrar where the loan owed by such person exceeds rupees thirty thousands, and by the Assistant Registrar where the loan owed by such person does not exceed rupees thirty thousands, that either satisfactory arrangements have been made for the repayment of the loan or that the loan has been secured in accordance with the provisions of section 7.
Restriction on alienations.
1[8.-B. (1) Where any person owing a loan, whether due immediately or on a future date, to a co-operative society or a co-operative bank has, on or after the twenty-seventh day of April, 1966, alienated any immovable property, by sale, exchange, gift, mortgage or will, other-wise than by or under an order or decree of a Civil, Revenue or Criminal Court, which alienation is fraudulent with intent to defeat the claim of a co-operative society or a co-operative bank, such alienation shall not operate to transfer any right, title or interest in the property of the debtor, unless—
(a) the loan due from the debtor has been repaid'; or
1. Inserted by W. P. Ord. XXV of 1966 s. 5.
(b) it is certified by the Registrar, where the loan exceeds rupees thirty thousands, and by the Assistant Registrar, where the loan does not exceed rupees thirty thousands, that either satisfactory arrangements have been made for 1he repayment of the loan or that the loan has been secured in accordance with the provisions of section 7.
9. The Registrar or the Assistant Registrar, as the case may be, shall, for the purpose of making any inquiry under this Ordinance, have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (Act V of 1908), when trying a suit, in respect of the following matters, namely:—
Powers of Registrar when making inquiry.
2. In section 8-B, sub-section (3) between the words "such appeal" and "shall" the words "after giving the appellant an opportunity of being heard" inserted by N. W. F. P. Ord. No. III of 1985, read with schedule.
(f) adding legal representative of deceased borrowers or sureties; (g) substituting the names of rightful parties, including the beneficiaries of benami loans; (h) consolidation of cases; (i) any other matter which may be prescribed by rules made under section 12; and (j) enforcing any order made by him under the provisions of this Ordinance or the rules framed thereunder. 1[9-A. Revision.— (1) When any decision or award is made by the Registrar, or a person exercising the powers of the Registrar, Government may at any time, suo moto or on application by an aggrieved party, call for and examine the record of any inquiry or proceeding relating there to for the purpose of satisfying itself as to the legality or propriety of such decision or award.
Provided that any order passed by the Registrar in exercise of his revisional powers shall not be further revisable by Government: Provided further that the power under sub-section (1) or sub-section (2) against the decision or award under this Ordinance shall not be exercisable after a period of six months from the date of making of a decision or award or the commencement of the North-West Frontier Province Co-operative Societies and Co-Operative Banks (Repayment of loans) (Amendment) Ordinance, 1981, which ever may be later.]
1 Inserted by N.W.F.P. Ord. No. XII of 1981. s. .3.
10. Whoever contravenes any of the provisions of this Ordinance or the rules made thereunder shall be punishable with imprisonment for a term which may extend to seven years, or with fine, which, in the case of default in the repayment of a loan, shall not be less than one-fourth of the amount of the loan outstanding against him, or with both.
1[11. (1) No Court shall take cognizance of any offence made by the Registrar or an Assistant Registrar, or by a person duly authorised 2[in this behalf] by the Registrar or Assistant Registrar.
1[(2) Notwithstanding anything to the contrary contained in the Code of Criminal Procedure, 1898 (V of 1898) the Provisions of chapter XX of the said Code shall apply to the trial of cases under this Ordinance.
Power to make rules.
13. (1) No Court or other authority shall have jurisdiction(a) to entertain or adjudicate upon any matter which
Bar of Jurisdiction.
3[Government, the Registrar] or the Assistant Registrar is empowered by or under this Ordinance or the rules framed thereunder to dispose of or determine; or (b) to question the legality or validity of anything done under this Ordinance or the rules framed thereunder by 3[Government, the Registrar] or Assistant Registrar. (2) No Court or other authority shall be competent to grant an injunction or other order in relation to any proceedings before the Registrar or the Assistant Registrar, or anything done or to be done or at the instance of the Registrar or the Assistant Registrar under this Ordinance, or the rules framed thereunder.