- (1.) Challenge in this writ petition filed by Paramjit Singh and others, employees of Punjab State Cooperative Agricultural Development Bank Ltd., Chandigarh, is to the order dated July 9, 1991 - Annexure P/5, passed by the Registrar, Co-operative Societies, Punjab, Chandigarh, vide which the Registrar modified the decision taken by the Board of Directors of the Punjab State Agricultural Development Bank Limited, Chandigarh. Copy of the decision is Annexure P/5. The Board of Directors had taken a decision in view of the healthy financial condition of the Cooperative Society to grant two months, gross salary as incentive to its workers, subject to certain conditions. When the matter went to the Registrar, he imposed a condition that this amount of incentive would be paid after deducting the amount of bonus already paid to the workers, which was to the extent of 20% of the profits. The contention of learned counsel for the petitioners is two fold: firstly that the Registrar had no jurisdiction to sit over the decision of the Board of Directors, as contained in Annexure P/5, which is a final authority under Section 23(1) of the Punjab Societies Act. This contention is devoid of merit. Where finances are involved, Section 41 of Act would come into play, which reads as under :- "41. Funds not to be divided by way of profit - No part of the funds of the Co-operative Society shall be divided by way of bonus or dividend or otherwise among its members : Provided that after at least one-tenth of the net profits in any year have been carried to the reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made among the members to such extent and under such conditions as may be prescribed by the rules or bye-laws. Rule 35 of the Punjab Co-operative Societies Rules, 1963 reads as under: "35. Payment of dividend or bonus.- (Section 41 and 85(2) (xxiv) (1) in a Co-operative Society the dividend shall exceed 10 per cent per annum of paid up share-capital.
(2.) In a Co-operative Society with unlimited liability no divident bonus shall be paid until a period of five years has elapsed from the date of registration.
(3.) No dividend shall be paid by the Co-operative Society while any claim due from the Co-operative Society to a depositor or lender remains unsatisfied.;