THE WEST PAKISTAN CO-OPERATIVE SOCIETIES AND

CO-OPERATIVE BANKS (REPAYMENT OF LOANS)

ORDINANCE, 1966.

(WEST PAKISTAN ORDINANCE NO. XIV OF 1966.)

[27^th April, 1966.] 

CONTENTS

PREAMBLE

SECTIONS

1.            Short title, extent and Commencement.

2.                  Definitions.

3.                  Repayment of loans.

4.                  Supply of information to the Registrar.

5.                  Service of notice to the borrowers.

6.                  Determination of Liability when Loan is not admitted.

7.                  Securing and repayment of Loans.

8.                  Recovery of Loans.

[1][8-A.  Restrictions on Registration of documents.

8-B.     Restrictions on alienations.]

9.                  Power of Registrar when making inquiry.

[2][9-A   Revision.]

10.              Penalty.

11.              Procedure.

12.              Power to make rules.

13.              Bar of jurisdiction.

THE WEST PAKISTAN CO-OPERATIVE SOCIETIES AND

CO-OPERATIVE BANKS (REPAYMENT OF LOANS)

ORDINANCE, 1966. 

(WEST PAKISTAN ORDINANCE NO. XIV OF 1966.)

[27^th  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:—

(2)  It extends to the whole of the [3][Province of the Khyber Pakhtunkhwa] except the Tribal Areas.

(3)        It shall come into force at once.

(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;

[4][(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; 

                     (bbb)       "borrower" includes in case of a benami loan, the real                                   beneficiary or recipient of the loan;]

(c)          "co-operative bank" means a co-operative society      established for carrying on banking business and having             as its principal object the financing of other co-operative      societies registered or deemed to be registered under the    Act;

(d)"co-operative society" means a society which         having as its object the promotion of economic          interests of its members in accordance with co-         operative principles, is registered or deemed to be           registered under the Act;

(e)          "Government" means the Government of [5][Khyber   Pakhtunkhwa.]

(f)           "loan" means a loan (including [6]["a benami loan 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—

[7][(i)      finance as defined in the Banking Tribunals Ordinance,        1984 (LVIII of 1984), and all cognate expressions shall        be Construed accordingly.] 

                        [8][(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 to a co-operative                                      society or a co-operative bank which is the subject                                        matter of any pending arbitration proceedings, appeal 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 [9][.........] the                 powers of a Registrar have been conferred under the Act.

(a)                     when a loan obtained from 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 [10][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

(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.

         (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 it 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

                        (c)        by affixing such notice on a conspicuous part of the last                               known residence of the person named in the notice or;

                        (d)        by publication of the notice in a newspaper.

(a)               secure the loan or the liability arising therefrom by mortgage, pledge, hypothecation or assignment of such property of the borrower or 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

(b)               repay fifteen per cent of the loan within six months of the service of notice under section 5, when he does not deny the loan or the liability arising thereform, and in any other case, within six months of the case decision of the Registrar or the Assistant Registrar, as the case may be; and

(c)                repay the balance of the loan in twelve equal half yearly installments, the first installments being six months after the expiry of the period specified in clause (b).

          [12][(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 whereof 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.]

(a)       the person whose right, title or interest in the property is or will be transferred, 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 Co-operative 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.

2.            Where an application is made to the Registrar or an Assistant Registrar, as the case may be, for issuing a certificate under the provisions of sub-section (1), he shall not refuse to issue the certificate unless he has first given the applicant an opportunity of being heard and adducing evidence to show that either satisfactory arrangements have been made for the repayment of the loan owed by the applicant or that the loan has been secured in accordance with the provisions of section 7.

3.            An order made by the Registrar or an Assistant Registrar under sub-section (2) refusing to issue a certificate, shall be final and not open to question in any manner.

(a)          The loan due from the debtor has been repaid; or

(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.

(2)        An alienation of immovable property shall be deemed to be fraudulent with intent to defeat the claim of a co-operative society or a Co-operative Bank for the purposes of sub-section (1), if the Registrar, after giving the person by whom the alienation has been made, and the person or persons in whose favour the alienation has been made an opportunity of being heard, issues a declaration to the effect that the alienation is fraudulent with intent to defeat the claim of a Co-operative Society or a Co-operative Bank.

(3)        Any party aggrieved by a decision made by the Registrar under sub-section (2) may prefer an appeal to Government against such decision, and the order made by Government, on such appeal [14][‘after giving the applicant an opportunity of being heard] shall be final and shall not be open to question in any manner.]

(a)               summoning and enforcing the attendance of any person and examining him on oath;

(b)               requiring the discovery of production of any document ;

(c)                requisitioning any public record from any Court or office;

(d)               issuing commissions for the examination of witnesses ;

(e)                appointing guardians or next friends of persons who are minors or of unsound mind;

(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. 

[15][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 thereto for the purpose of satisfying itself as to the legality or propriety of such decision or award.

(2)     When any decision or award is made by an Assistant Registrar the Registrar may suo moto or on an application by an aggrieved party, call for and examine the record of any inquiry or proceeding relating thereto for the purpose of satisfying himself as to the legality or propriety of such decision or award.

(3)     If after examining the aforesaid record, Government or Registrar, as the case may be, is of the opinion that the decision or award should be modified, annulled or reversed, it or he may, after giving the parties an opportunity of being heard pass such order thereon as may be deemed just and proper, and the order so passed shall be final and conclusive:

            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 [16][Khyber Pakhtunkhwa] Co-operative Societies and Co-Operative Banks (Repayment of loans) (Amendment) Ordinance, 1981, which ever may be later.]

            [19][(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.

(a)               to entertain or adjudicate upon any matter which [20][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 [21][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 [22][Government, the Registrar] or the Assistant Registrar, or anything done or to be done or at the instance of the [23][Government, the Registrar] or the Assistant Registrar under this Ordinance, or the rules framed thereunder.