Section 30 of the Co-operative Societies Act, 1912 - Restrictions on Borrowing
Section 30 regulates the extent to which a registered co-operative society may accept deposits and loans from persons who are not members of the society.
Section 30: Restrictions on borrowing
Statutory text: A registered society shall receive deposits and loans from persons who are not members only to such extent and under such conditions as may be prescribed by the rules or by-laws.
Meaning and scope of Section 30
The provision does not create an unrestricted power to borrow from the public. Where money is accepted as a deposit or loan from a non-member, the society must remain within the limits and conditions laid down by the applicable rules or its valid by-laws.
In practical terms, Section 30 links external borrowing to the regulatory framework governing the particular registered society. The applicable rules and by-laws should therefore be checked before deciding whether a proposed deposit or loan from a non-member is permissible.
Key expressions explained
Registered society
Under Section 2(c) of the Act, a "registered society" means a society registered, or deemed to be registered, under the Act.
Rules
Section 2(e) defines "rules" as rules made under the Act. Section 43 authorises the appropriate Government to make rules for carrying out the purposes of the Act, subject to the statutory framework.
By-laws
Section 2(a) defines "by-laws" as the registered by-laws for the time being in force and includes a registered amendment of the by-laws. Accordingly, the society's registered by-laws are directly relevant when applying Section 30.
What Section 30 requires
- The borrower must be a registered society governed by the Act.
- The restriction addressed by Section 30 concerns deposits and loans received from persons who are not members.
- The permissible extent of such borrowing is controlled by the applicable rules or by-laws.
- Conditions imposed by those rules or by-laws must also be observed.
Related provision: Section 29
Section 29 deals with restrictions on loans made by a registered society, while Section 30 deals with restrictions on borrowing through deposits and loans received from non-members. Read Section 29 - Restrictions on loans.
Official legal source
The central text of the Co-operative Societies Act, 1912 is available from India Code - The Co-operative Societies Act, 1912.
This page is a general legal information resource. For a specific society, verify the legislation, rules, registered by-laws and amendments applicable in the relevant jurisdiction.