Section 47 of the Co-operative Societies Act, 1912 - Prohibition of the Use of the Word Co-operative
Section 47 regulates the use of the word "co-operative" in a business name or title. Its purpose is to prevent a person who is not a registered society from presenting a business under a co-operative name unless the required State Government sanction has been obtained.
Text of Section 47
47. Prohibition of the use of the word "co-operative". - (1) No person other than a registered society shall trade or carry on business under any name or title of which the word "co-operative" is part without the sanction of the State Government:
Provided that nothing in this section shall apply to the use by any person or his successor in interest of any name or title under which he traded or carried on business at the date on which this Act comes into operation.
(2) Whoever contravenes the provisions of this section shall be punishable with fine which may extend to fifty rupees, and in the case of a continuing offence with further fine of five rupees for each day on which the offence is continued after conviction therefor.
Meaning and Scope of Section 47
| Who is restricted? | A person other than a registered society. |
|---|---|
| What is restricted? | Trading or carrying on business under a name or title containing the word "co-operative". |
| When may it be used? | Where the person is a registered society or where sanction of the State Government has been obtained, subject to the statutory exception. |
| Historical exception | The restriction does not apply to a person, or successor in interest, using a name or title under which the person was already trading or carrying on business when the Act came into operation. |
| Penalty in Section 47(2) | Fine up to Rs. 50, with a further fine up to Rs. 5 for each day a continuing offence continues after conviction. |
What Does "Registered Society" Mean?
For the purposes of the 1912 Act, the expression refers to a society registered, or deemed to be registered, under the Act. Section 47 therefore distinguishes a legally registered co-operative society from another person or business seeking to use the protected expression in its name or title.
Requirement of State Government Sanction
Section 47(1) does not impose an absolute prohibition on every non-society use of the word. The statutory text permits such use where the State Government grants sanction. A person proposing to rely on this route should verify the applicable State or Union Territory co-operative societies law, rules and administrative procedure before using the expression in a business name.
Exception for an Existing Name or Title
The proviso preserves an existing name or title used by a person when the 1912 Act came into operation and extends that protection to the person's successor in interest. This is a historical saving and should not be treated as a general exemption for a newly adopted business name.
Penalty for Contravention
Under Section 47(2), contravention is punishable with a fine that may extend to Rs. 50. If the offence continues after conviction, the provision permits a further fine up to Rs. 5 for each day during which the offence continues. These are the amounts appearing in the central 1912 enactment; corresponding State legislation may prescribe different consequences.
Current Legal Position and State Laws
Co-operative societies are substantially regulated through State and Union Territory legislation. Accordingly, anyone checking whether a particular name may lawfully use "co-operative" should identify the legislation presently applicable in that jurisdiction. For example, later State enactments may contain a corresponding restriction with different wording or penalties.
Official Legal Source
The official text of the central enactment can be checked on the India Code copy of the Co-operative Societies Act, 1912. Users should also consult the official website of the relevant State or Union Territory Registrar of Co-operative Societies for locally applicable legislation, rules and procedures.
Practical Summary
Section 47 protects the use of the word "co-operative" in trade or business names. A registered society may use the expression. A person who is not a registered society requires State Government sanction unless the historical saving in the proviso applies. The exact present-day position should always be checked against the co-operative societies law applicable in the relevant State or Union Territory.
This page provides general legal information and reproduces the statutory provision for reference. For a specific registration, naming or enforcement issue, verify the current law and rules applicable in the relevant jurisdiction.