Section 31 of the Co-operative Societies Act, 1912 - Restrictions on Other Transactions with Non-Members
Section 31 regulates transactions between a registered co-operative society and persons who are not members, apart from the loan and borrowing matters specifically dealt with by Sections 29 and 30.
Text of Section 31
Meaning and Scope of Section 31
The provision does not itself impose one uniform prohibition on every transaction with a non-member. Instead, it authorises the State Government to prescribe, by rules, prohibitions or restrictions governing such transactions. Accordingly, the applicable State rules should be checked before determining whether a particular transaction with a non-member is permitted.
The opening words, "Save as provided in sections 29 and 30", separate the matters already governed by those provisions. Section 29 principally deals with restrictions on loans made by registered societies, while Section 30 deals with deposits and loans received from persons who are not members.
Key Legal Terms
Registered society
Under Section 2(e) of the Act, a "registered society" means a society registered or deemed to be registered under the Co-operative Societies Act, 1912.
Member
Section 2(c) includes a person joining in the application for registration of a society and a person admitted to membership after registration in accordance with the by-laws and applicable rules.
Rules
For Section 31, the practical restrictions depend on rules prescribed by the competent State Government. The section therefore has to be read together with the rules applicable in the relevant State or territory and with any locally applicable co-operative societies legislation.
Relationship with Sections 29 and 30
Section 29 - Restrictions on loans: As a general rule, a registered society may not make a loan to a person other than a member, subject to the exceptions and regulatory powers stated in that section.
Section 30 - Restrictions on borrowing: A registered society may receive deposits and loans from non-members only to the extent and subject to the conditions prescribed by the rules or by-laws.
Section 31 - Other transactions: Transactions with non-members that are not covered by Sections 29 and 30 remain subject to prohibitions and restrictions that the State Government may prescribe by rules.
Official Legal Source
The current central text of the Co-operative Societies Act, 1912 can be verified on the official India Code portal. For legal use, the statutory text should be read with applicable amendments and State-specific co-operative society legislation and rules.