In the Multi-Unit Co-operative Societies Act, 1942, after section 5C, the following section shall be inserted, namely:—
         "5D. Transitional provision relating to certain multiunit co-operative societies.—(1) Where, in respect of any co-operative society specified in the Fifteenth Schedule to the Punjab Reorganisation Act, 1966, which under the provisions of sub-section (1) of section 5A would become a multi-unit co-operative society, the Board of Directors adopts, by a majority of not less than threefourths of the directors, any scheme for the reconstitution, reorganisation or dissolution of the society, including proposals regarding—
             (a) the formation of new co-operative societies and the transfer thereto, in whole or in part, of the assets and liabilities and employees of that society; or
             (b) the transfer, in whole or in part, of the assets and liabilities and employees of that society to any other co-operative society in the existing State of Punjab or in the Union territory of Himachal Pradesh;
     and the State Government of Punjab certifies the scheme at any time before the 1st day of November, 1966, then, notwithstanding anything contained in sub-section (2) or sub-section (3) or sub-section (4) of the said section or any other law, regulation or bye-law for the time being in force in relation to that society, the scheme so certified shall be binding on all societies affected by the scheme, as well as the shareholders, creditors and employees of all such societies, subject to such financial adjustments as may be directed in this behalf under sub-section (3), but no such scheme shall be given effect to before the said day:
         Provided that where a scheme includes any proposal regarding the transfer of assets and liabilities and employees to any co-operative society referred to in clause (b), the scheme shall not be binding on that existing society or the shareholders and creditors thereof, unless the proposal relating to such transfer is accepted by the existing society by a resolution passed by a majority of the members present at a meeting of its general body.
     (2) When a scheme in respect of a co-operative society is so certified, the Central Registrar shall place the scheme at a meeting, held in such manner as may be prescribed by rules made under this Act, of all the persons who, immediately before the date of certification of the scheme, were members of the society, and the scheme may be approved by a resolution passed by a majority of the members present and voting at the said meeting.
     (3) If the scheme is not so approved or is approved with modifications, the Central Registrar may refer the scheme to such Judge of the High Court of Punjab and Haryana as may be nominated in this behalf by the Chief Justice thereof and the Judge may direct such financial adjustments to be made among the societies affected as he deems necessary, and the scheme shall be deemed to be approved subject to those financial adjustments.
     (4) If, in consequence of the directions given under sub-section (3), a society becomes liable to pay any sum of money, the successor State within whose area the society is located shall be deemed to be guarantor in respect of the payment of such money and shall be liable as such.".