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Society Formaiton

REGISTRATION

The State Government may appoint a person to be the Registrar of Co-operative Societies for the State; and may appoint one or more persons to assist such Registrar with such designations, and in such local areas or throughout the State, as it may specify in that behalf and may, by general or special order, confer on any such person or persons all or any of the powers of the Registrar under this Act. The person or persons so appointed to assist the Registrar and on whom any powers of the Registrar are conferred, shall work under the general guidance, superintendence and control of the Registrar. They shall be subordinate to the Registrar, and subordination of such persons amongst themselves shall be such as may be determined by the State Government.

Temporary vacancies –

If the Registrar or a person appointed to assist such Registrar is disabled from performing his duties or for any reason vacates his office or leaves his jurisdiction or dies, then –

  1. (a)  in the case of the Registrar, the Additional or Joint Registrar, in the office of the Registrar, and

  2. (b)  In the case of a person appointed to assist the Registrar, the senior-most officer holding the next higher post, in the respective office.

Shall unless other provision has been made in that behalf, hold temporarily the office of the Registrar or, as the case may be, of the person appointed to assist the Registrar in addition to his own office and shall be held to be the Registrar or the person appointed to assist the Registrar under this Act, until the Registrar or the person appointed to assist the Registrar resumes his office, or until such time as the successor is duly appointed and takes charge of his appointment.

Societies which may be registered:—

A society, which has as its objects the promotion of the economic interests or general welfare of its members or of the public, in accordance with co-operative principles or a society established with the object of facilitating the operations of any such society, may be registered under this Act:

Provided that, no society shall be registered if it is likely to be economically unsound, or the registration of which may have an adverse effect on development' of the co-operative movement, or the registration of which may be contrary to the policy directives which the State Government may, from time to time, issue.

5. Registration with limited or unlimited liability:-

A society may be registered with limited or unlimited liability.

Conditions of registration:-

  1. (1)  No society, other than a federal society, shall be registered under this Act,. Unless it consists of at least ten persons or such higher number of persons as the Registrar may, having regard to the objects and economic viability of a society and development of the Co-operative movement, determine from time to time for a class of societies (each of such persons being a member of a different family), who are qualified to be members under this Act, and who reside in the area of operation of the society:

    Provided that, a lift irrigation society consisting of less than ten but of five or more such persons may be registered under this Act.

  2. (2)  No society with unlimited liability shall be registered, unless all persons forming the society reside in the same town or village, or in the same group of villages.

(2A) No crop protection society shall be registered, unless the Registrar is satisfied, after such inquiry as he thinks necessary, that a draft of the proposal made by the society for protecting the crops, structures, machinery agricultural implements and other equipment such as those used for pumping water on the land, was duly published for inviting all owners of lands likely

to be affected by the proposal and all other persons likely to be interested in the said lands to join the proposal or to send their objections or suggestions and that the objections and suggestions received, if any, have been duly considered by the society and that the owners in possession of not less than 66 per cent in the aggregate of the lands included in the proposal have given their consent in writing to the making of the proposal and that the proposal made is feasible. For this purpose, the society shall submit to the Registrar:

  1. (a)  a plan showing the area covered by the proposal and the surrounding land as shown in the map or maps of the village or village affected;

  2. (b)  An extract from the record of rights duly certified showing the names of the owners of the lands and the areas of the lands included in the proposal;

  3. (c)  Statements of such of the owners of the lands as consented to the making of the proposal signed by owners before two witnesses;

  4. (d)  A detailed estimate of the cost of implementing the proposal;

  5. (e)  A detailed statement showing how the cost is proposed to be met.

When such society is registered, the cost of implementing the proposal shall be met wholly or in part by contribution to be levied by the society from each owner of the land included in the proposal, including any such owner who may have refused to become a member of the society. The owner of every land included in the proposal shall also the primarily liable for the payment of the contribution leviable from time to time in respect of such land.

  1. (3)  No federal society shall be registered unless it has at least five societies as its members.

  2. (4)  Nothing in this Act shall be deemed to affect the registration of any society made before the commencement of this Act.

  3. (5)  The word "limited" or "unlimited" shall be the last word in the name of every society with limited or unlimited liability, as the case may be, which is registered or deemed to be registered under this Act.

    Explanation :- For the purposes of this Section and Section 8 the expression "member of a family" means wife, husband, father, mother, 'son, or unmarried daughter.

Power to exempt societies or class of societies from conditions as to registration:

Notwithstanding anything contained in this Act, the State Government, by general or special order, exempts any society or class of societies from any of the requirements of this Act as to registration, subject to such conditions (if any) as it may impose.

Application for registration.—

  1. (1)  For the purposes of registration, an application shall be made to the Registrar in the prescribed form and shall be accompanied by four copies of the proposed bye-laws of the society 2and such registration fee as may be prescribed in this behalf. Different registration fees may be prescribed for different classes of societies, regard being had to the service involved in processing an application for registration. The person by whom, or on whose behalf, such application is made, shall furnish such information in regard to the society, as the Registrar may require.

  2. (2)  The application shall be signed-

    1. (a)  In the case of a society other than a federal society by at least ten persons (each of such persons being a member of a different family), who are qualified under this Act, and

    2. (b)  In the case of a federal society, by at least five societies.

    No signature to any application on behalf of a society shall be valid, unless the person signing is a member of the committee of such a society and is authorized by the committee by resolution to sign on its behalf the application for registration of the society and its bye-laws; and a copy of such resolution is appended to the application.

Registration.—

  1. (1)  If the Registrar is satisfied that a proposed society has complied with the provisions of this Act and the rules, 3or any other law for the time being in force, or policy directives issued by the State Government under Section 4, and that its proposed bye-laws are not contrary to this Act or to the rules, he "shall within two months, from the date of receipt of the application register the society and its bye-laws.

  2. (2)  Where there is a failure on the part of the Registrar to dispose of such application within the period aforesaid, the Registrar shall,' within a period of fifteen days from the date of expiration of that period refer the application to the next higher officer and where the Registrar himself is the registering officer, to the State Government, who are which, as the case may be, shall dispose of the application within two months from the date of its receipt and on the failure of such higher officer or the State Government, as the case may be, to dispose of the application within that period, the society and its bye-laws shall be deemed to have been registered 2and thereafter the Registrar shall issue a certificate of registration under his seal and signature within a period of fifteen days.

  3. (3)  Where the Registrar refuses to register a proposed society, he shall forthwith communicate his decision, with the reasons therefore, to the person making the application and if there be more than one to the person who has signed first therein.

  4. (4)  The Registrar shall maintain a register of all societies registered, or deemed to be registered, under the Act.

Evidence of registration.—

A certificate of registration signed by the Registrar, shall be conclusive evidence that die society therein mentioned, is duly registered, unless it is proved that the registration of the society has been cancelled.

Power of Registrar to decide certain questions.—

When any question arises whether a person is an agriculturist or not, or whether any person resides in the area of operation of the Society or not 2or whether a person is or is not engaged in or carrying on any profession, business or employment, or whether a person belongs or does not belong to such class of persons as declared under sub-section (1 A) of Section 22 and has or has not incurred a disqualification under that subsection, such question shall be decided by the Registrar and his decision shall be final, but no decision adverse to any such person shall be given without giving him an opportunity of being heard.

Classification of societies.—

  1. (1)  The Registrar shall classify all societies into one or other of the classes of societies defined in Section 2 and also into such sub-classes thereof as may be prescribed by rules.

  2. (2)  The Registrar may, for reasons to be recorded in writing, alter the classification of a society from one class of society to another, or from one sub-class thereof to another; and may, in the public interest and subject to such terms and conditions as he may think fit to impose, allow any society so classified to undertake the activities of a society belonging to another class.

  3. (3)  A list of all societies so classified shall be published by the Registrar every three years in such manner as the State Government may, from time to time direct.

Amendment of bye-laws of society.—

(1) No amendment of the bye-laws of a society shall be valid until registered under this Act. For the purpose of registration of an amendment of the bye-laws, a copy of the amendment passed, in the manner prescribed, at a general meeting of the society, shall be forwarded to the Registrar. 'Every application for registration of an amendment of the bye-laws shall be disposed off by the Registrar within a period of two months from the date of its receipt.

  1. (1A)  Where there is a failure on the part of the Registrar to dispose of such application within the period aforesaid, the Registrar shall, within, a period of fifteen days from the date of expiration of that period refer the application to the next higher officer and where the Registrar himself is the registering officer, to the State Government, who or which, as the case may be, shall dispose of the application within two months from the date of its receipt and on the failure of such higher officer or the State Government, as the case may be, to dispose of the application within that period, the amendment of the bye-laws shall be deemed to have been registered.

  2. (1B)  No amendment of the bye-laws of a society shall be registered by the Registrar under this section or in the case of the bye-laws which are deemed to have been registered shall have effect, if the amendment is repugnant to the policy directives, if any, issued by the c*ate Government under Section 4.

  1. (2)  When the Registrar registers an amendment of the bye-laws of a society 5or where an amendment of the bye-laws is deemed to have been registered he shall issue to the society a copy of the amendment certified by him, which shall be conclusive evidence that the same is duly registered.

  2. (3)  Where the Registrar refuses to register such amendment, of the bye-laws of a society, he shall communicate the order of refusal, together with his reasons therefore, to the society.

Power to direct amendment of bye-laws.—

  1. (1)  If it appears to the Registrar that an amendment of the bye-laws of a society is necessary or desirable in the interest of such society, he may call upon the society, in the manner prescribed, to make the amendment within such time as he may specify.

  2. (2)  If the society fails to make the amendment within the time specified, the Registrar may, after giving the society an opportunity of being heard and after consulting such State federal society as may be notified by the State Government, register such amendment and issue to the society a copy of such amendment certified by him. With effect from the date of the registration of the amendment in the manner aforesaid, the bye-laws shall be deemed to have been duly amended accordingly; and the bye-laws as amended shall, subject to appeal (if any), be binding on the society and its members.

Change of name.—

  1. (1)  A society may, by resolution passed at a general meeting and with the approval of the Registrar, change its name; but such change shall not affect any right or obligation of the society, or of any of its members, or past members, or deceased members; and any legal proceedings pending before any person, authority or Court may be continued by or against the society, under its new name.

  2. (2)  Where a society changes its name, the Registrar shall enter the new name in its place in the register of societies and shall also amend the certificate of registration accordingly.

Change of liability.—

  1. (1)  Subject to the provisions of this Act and the rules, a society may, by amendment of its bye- laws, change the form or extent of its liability.

  2. (2)  When a society has passed a resolution to change the form or extent of its liability, it shall give notice thereof in writing to all its I members and creditors and notwithstanding anything in any bye-law or / contract to the contrary, any member or creditor shall, during a period of one month from the date of service of such notice upon him, have the option of withdrawing his shares, deposits or loans.

  3. (3)  Any member or creditor, who does not exercise his option within the period specified in sub- section (2), shall be deemed to have assented to the change.

  4. (4)  An amendment of the bye-laws of a society, changing the form or extent of its liability, shall not be registered or take effect until, either—

(a) all members and creditors have assented, to deemed to have assented, thereto as aforesaid; or

(b) All claims of members and creditors who exercise the option, given by sub-section (2), within the period specified therein, have been met in full or otherwise satisfied.

Amalgamation, transfer, division or conversion of societies.—

  1. (1)  A society may, with the previous approval of the Registrar, by resolution passed by two-thirds majority of the members present and voting at a special general meeting held for the purpose, decide-

    1. (a)  to amalgamate with another society ;

    2. (b)  to transfer its assets and liabilities, in whole or in part, to any other society;

    3. (c)  to divide itself into two or more societies ; or

    4. (d)  to convert itself into another class of society :

    Provided that when such amalgamation, transfer, division or conversion, aforesaid, involves a transfer of the liabilities of a society to any other society, no order on the resolution shall be passed by the Registrar, unless he is satisfied that -

    1. (i)  the society, after passing such resolution, has given notice thereof in such manner as may be prescribed to all its members, creditors and other persons, whose interests are likely to be affected (hereinafter in this section referred to as "other interested persons"), giving them the option, to be exercised within one month from the date of such notice, of becoming members of any of the new societies, or continuing their membership in the amalgamated or converted society, or demanding payment of their share or interest or dues, as the case may be;

    2. (ii)  all the members and creditors and other interested persons, have assented to the decision, or deemed to have assented thereto by virtue of any member or creditor or any other interested person failing to exercise his option within the period specified in clause (i) aforesaid, and

    3. (iii)  All claims of members and creditors and other interested persons, who exercise the option within the period specified, have been met in full or otherwise satisfied.

  2. (2)  Notwithstanding anything contained in the Transfer of Property Act, 1882, or the Indian registration Act, 1908, in the event of division or conversion, the registration of the new societies or, as the case may be, of the converted society, and in the event of amalgamation, on the amalgamation the resolution of the societies concerned with amalgamation, shall in each case be sufficient conveyance to vest the assets and liabilities of the original society or amalgamating societies in the new societies or converted or amalgamated society, as the case may be.

  3. (3)  The amalgamation of societies, or division or conversion of a society shall not affect any rights or obligation of the societies so amalgamated, or society so divided or converted, or render defective any legal proceedings which might have been continued or commenced by or against the societies which have been amalgamated, or divided or converted; and accordingly, such legal proceedings may be continued or commenced by or against the amalgamated society, or, as the case may be, the converted society, or the new societies.

  4. (4)  Where two or more societies have been amalgamated, or a society has been divided or converted, the registration of such societies or society shall be cancelled on the date of registration of the amalgamated society, or the converted society, or the new societies between which the society may have been divided.

Power to direct amalgamation, division and reorganization in public interest, etc:-

(1) Where the Registrar is satisfied that it is essential in the public interest or in the interest of the co-operative movement, or for the purpose of securing the proper management of any society, that two or more societies should amalgamate or any society should be divided to form two or more societies or should be reorganized then notwithstanding anything contained in the last preceding section but subject to the provisions of this section, the Registrar may, after consulting such federal society as may be notified by the State Government by order notified in the Official Gazette, provide for the amalgamation, division or reorganization of those societies into a single society, or into societies with such constitution, property rights,

interests and authorities, and such liabilities, duties and obligations as may be specified in the order.

  1. (2)  No order shall be made under this section, unless-

    1. (a)  a copy of the proposed order has been sent in draft to the society or each of the societies concerned;

    2. (b)  the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions and objections which may be received by him within such period (not being less than two months from the date on which the copy of the order as aforesaid was received by the society) as the Registrar may fix in that behalf, either from the society or from any member or class of members thereof, or from any creditor or class of creditors.

  2. (3)  The order referred to in sub-section (1) may contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation, the division or reorganization.

  3. (4)  Every member or creditor of or other person interested in, each of the societies to be amalgamated, divided or reorganized who has objected to the scheme of amalgamation, division or reorganization, within the period specified, shall be entitled to receive, on the issue of the order of amalgamation, division or re-organisation his share or interest if he be a member and the amount in satisfaction of his dues if he be a creditor.

  4. (5)  On the issue of an order under sub-section (2), the provisions in sub-sections (2), (3) and (4) of section 17 shall apply to the societies so amalgamated, divided or re-organised as if they were amalgamated, divided or reorganised under that section, and to the society amalgamated, divided or reorganised.

  5. (6)  Nothing contained, in this section shall apply for the amalgamation of 3two or more co- operative banks or two or more primary agricultural credit societies.

Amalgamation of Co-operative Banks.—

  1. (1)  Where the Registrar is satisfied that it is essential in the public interest, or in order to secure the proper management of one or more co-operative bonks that two or more such banks should be amalgamated, then notwithstanding anything contained in section 17, the Registrar may, after consulting such federal society or other authority as may be notified by the State Government in the Official Gazette, by order provide for the amalgamation of those banks into a single bank, with such constitution, property, rights, interests and authorities, and such liabilities, duties and obligations as may be specified in the order. Such order may provide for the reduction of the interest or rights which the members, depositors, creditors, employees and other persons may have in or against any bank to be amalgamated to such extent as the Registrar considers necessary in the interest of such persons for the maintenance of the business of that bank having due regard to the proportion of the assets of such bank, to its liabilities. Such order may also contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation of the banks.

  2. (2)  No order shall be made under sub-section (1), unless-

    1. (a)  a copy of the proposed order has been sent in draft to each of the banks concerned;

    2. (b)  the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions or objections which may be received by him within such period (not being less than two months from the date on which the copy of the proposed order was received by the banks) as the Registrar may fix in that behalf, either from the banks or any members, depositors, creditors, employees or other persons concerned.

  1. (3)  On the issue of an order under sub-section (1), notwithstanding anything contained in this Act or in any law for the time being in force or in any contract, award or other instruments for the time being in force, the provisions thereof, shall be binding on all banks and their members; depositors, creditors, employees and other persons having any rights, assets, or liabilities in relation to all or any of the banks concerned.

  2. (4)  Notwithstanding anything contained in the Transfer of Property Act, 1882 or the Registration Act, 1908, the order issued under subsection (1) shall be sufficient conveyance for transfer or vesting the rights, assets and liabilities of the banks concerned as provided in the order.

  3. (5)  The amalgamation of banks under this section shall not affect any rights or obligations of the banks so amalgamated or render defective any legal proceedings, which might have been continued or commenced by or against any such banks; and accordingly, such legal proceedings may be continued or commenced by or against the amalgamated banks.

  4. (6)  Where two or more banks have been amalgamated, the registration of the bank in which the other banks are amalgamated may be continued and the registration of the other banks may he cancelled, or where the amalgamated bank is newly registered, the registration of all the amalgamating banks shall be cancelled.

  5. (7)  Any order made by the Registrar under this section shall be final and conclusive, and shall not be called in question in any Court.

Amalgamation of primary agricultural credit societies.—

  1. (1)  Where the Registrar is satisfied that it is essential-

    1. (a)  For ensuring economic viability of one or more primary agricultural credit societies ;

    2. (b)  For avoiding overlapping or conflict of jurisdictions of such societies in any area;

    3. (c)  In order to secure the proper management of one or more such societies

    4. (d)  In the interest of the credit structure or co-operative movement in the State as a whole :

    5. (e)  in the interest of the depositors ; or

    6. (f)  for any other reason in the public interest,

    that two or more primary agricultural credit societies should be amalgamated, then notwithstanding anything contained in section 17, the Registrar may, after consulting such federal society or other authority as may be notified by the State Government in this behalf, by order published in the Official Gazette, provide for the amalgamation of those societies into a single society. The constitution, property, rights, interests and authorities and the liabilities, duties and obligations of the amalgamated society shall be such as may be specified in the order. Such order may provide for the reduction of the interest or rights which the members, depositors, creditors, employees and other persons may have in, or against, any society to be amalgamated to such extent as the Registrar considers necessary in the interest of such persons for the maintenance of the business of that society, having due regard to the proportion of the assets of such society, to its liabilities. Such order may also contain such incidental, consequential and supplemental provisions as may, in the opinion of the Registrar, be necessary to give effect to the amalgamation of the societies.

  2. (2)  No order shall be made under sub-section (1), unless-

    1. (a)  a copy of the proposed order has been sent in draft to each of the societies concerned ;

    2. (b)  the Registrar has considered and made such modifications in the draft order as may seem to him desirable in the light of any suggestions or objections which may be received by him within such period (not being less than two months from the date on which the copy of the proposed order was received by the societies) as the Registrar may fix in that behalf, either from the societies or any members, depositors, creditors, employees or other persons concerned.

  3. (3)  When any order is made by the Registrar under sub-section (1), the provisions of sub- sections (3) to (7) (both inclusive) of Section 18-A shall, mutatis mutandis apply to such order,

in the same manner as they are applicable to any order made by him under sub-section (1) of that section.

Reorganization of societies on account of alteration of limits of local areas in which they operate.—

  1. (1)  Where the area of operation of any society or societies is restricted to any district, Taluka, municipal area or any other local area and such area is divided into two or more areas, or merged in any other area, or is diminished or increased or otherwise altered, under any law for the time being in force and the State Government is satisfied that in the public interest or in the interest of the co-operative movement, or in the interest of the society or societies, or for the purpose of proper demarcation of area of operation for the societies in each area, it is essential to reorganise any such society or societies, the State Government may by an order, published in the Official Gazette, and in such other manner as it deems fit, provide for division of any existing society into two or more societies, amalgamation of two or more existing societies into one society, dissolution of any existing society or reconstitution of any existing society, affected by the territorial changes.

  2. (2)  An order made under sub-section (1) may provide for all or any of the following matters namely :—

    1. (a)  The division of an existing society into two or more societies and the area of operation of each society;

    2. (b)  the amalgamation of two or more existing societies into one society and area of its operation ;

    3. (c)  the dissolution of any existing society ;

    4. (d)  the reorganization of any existing society and the area of its operation ;

    5. (e)  the removal of the committee of any existing society and the appointment of an administrator or an interim committee of management, to manage the affairs of the existing society of the new society or societies, under the control and direction of the State Government, for a period not exceeding two years, as may be specified in the order or until the successor committee of the concerned society is duly constituted, whichever is earlier:

    Provided that the period of two years may be extended by the State Government from time to time, so however that the total period does not exceed three years in the aggregate;

    Provided further that, it shall be competent for the State Government to alter and appoint, from time to time, during the said period or extended period and for any reason whatsoever, any other Administrator or an interim committee of management or any or all the members of such committee, as it deems fit, notwithstanding that the term of extended term of office of the Administrator or an interim committee of management or of any or all the members of such committee has not expired.

    1. (f)  in the case of an existing federal society, the transfer of any of its members societies as member of another federal society named in the order;

    2. (g)  the transfer, in whole or in part, of the assets, rights and liabilities of any existing society, including the rights and liabilities under any contract made by it, to one or more societies and the terms and conditions of such transfer ;

    3. (h)  the substitution of any such transferee for the existing society, or the addition of any such transferee, as a party to any legal proceeding or any proceeding pending before an officer or authority, to which the existing society is a party; and the transfer of any proceedings pending before the existing society or its officer or authority to any such transferee or its officer or authority;

    4. (i)  the transfer or re-employment of any employee of the existing society to, or by, such transferee and the terms and conditions of service applicable to such employees after such transfer or re-employment:

    Provided that, the terms and conditions of any such employee shall not be made less favorable than those applicable to him while in the service of the existing society, except with

the previous approval of the State Government;

  1. (j)  the application of the bye-laws of the existing society to one or more societies without any modifications or with such modifications as may be specified in the order;

  2. (k)  All incidental, consequential and supplementary matters as may be necessary or expedient to give effect to the order made under this section.

  1. (3)  Notwithstanding anything contained in the Transfer of Property Act, 1882, or the Registration Act, 1908, the order issued under this section shall be sufficient conveyance for transfer of the assets, rights and liabilities of the existing society as provided in the order.

  2. (4)  Any order made by the State Government under this section shall be final and conclusive and shall not be called in question in any Court.

  3. (5)  Except otherwise provided by this section or by any order issued there under, the provisions of this Act and the rules and orders issued there under, shall in all other respects apply to the existing societies and the new or reorganised societies formed under this section.

Reconstruction of societies.—

Where a proposal for a compromise or arrangement-

  1. (a)  between a society and its creditors, or

  2. (b)  between a society and its members,

is approved at a special general meeting, called for the purpose, the Registrar may, on the application of the society or of any member or of any creditor of the society, or in the case of a society, which is being wound up, of the Liquidator, order reconstruction in the prescribed manner of the society.

Partnership of societies.—

  1. (1)  Any two or more societies may, with the prior approval of the Registrar, by resolution passed by three-fourths majority of the members present and voting at a general meeting of each such society, enter into partnership for carrying out any specific business or businesses, provided that each member has had clear ten days' written notice of the resolution and the date of the meeting.

  2. (2)  Nothing in the Indian Partnership Act, 1932, shall apply to such partnership.

Collaboration by societies.—

  1. (1)  Any society or societies may, with the prior approval of the State Government, 2and subject to such terms and conditions as the State Government may impose and in such manner as may be prescribed,) enter into collaboration with any Government undertaking or any undertaking approved by the State Government for carrying on any specific business or businesses, including industrial investment, financial aid or marketing and management expertise.

  2. (2)  Before approving any such scheme of collaboration by any society or societies under sub- section (1), the State Government shall have due regard to the following matters, namely :

    1. (a)  that the scheme is economically viable;

    2. (b)  that it can be implemented without, in any way, eroding the cooperative character of the society or the societies concerned;

    3. (c)  That the scheme is in furtherance of the interests of the members of the society or a society concerned, or is in the public interest and in the interest of the co-operative movement in general.

Cancellation of registration.-

The Registrar shall make an order canceling the registration of a society if it transfers the whole of is assets and liabilities to another society, or amalgamates with another society, or divides itself into two or more societies or if its affairs are wound up, or it is de-registered under the provisions of sub-section (1) of Section 21-A or winding up proceedings in respect of the society are closed or terminated under Section 109. The society shall, from the date of such order of cancellation, be deemed to be dissolved and shall cease to exist as a corporate body.

De-registration of societies.—

  1. (1)  If the Registrar is satisfied that any society is registered on misrepresentation made by applicants, or where the work of the society is completed or exhausted or the purposes for which the society has been registered are not served, he may, after giving an opportunity of being heard to the Chief Promoter, the committee and the members of the society, de-register the society :

    Provided that, where the number of members of the society is so large and it is not possible to ascertain the correct addresses of all such members from the records in the office of the Registrar and, in the opinion of the Registrar it is not practicable to serve a notice of hearing of each such individual member, a public notice of the proceedings of the de-registration shall be given in the prescribed manner and such notice shall be deemed to be notice to all the members of the society including the Chief Promoter and the members of the Committee of the Society, and no proceeding in respect of the de-registration of the society shall be called in question in any court merely on the ground that individual notice is not served on any such member.

  2. (2)  When a society is de-registered under the provisions of subsection (1), the Registrar may, notwithstanding anything contained in this Act or any other law for the time being in force, make such incidental and consequential orders including appointment of Official Assignee as the circumstances may require.

  3. (3)  Subject to the rules made under this Act, the Official Assignee shall realize the assets and liquidate the liabilities within a period of one year from the date he takes over the charge of property, assets, books, records, and other documents, which period may, at the discretion of the Registrar, be extended from time to time, so however, that the total period does not exceed three years in the aggregate.

  4. (4)  The Official Assignee shall be paid such remuneration and allowances as may be prescribed; and he shall not be entitled to any remuneration whatever beyond the prescribed remuneration or allowances.

  5. (5)  The powers of the Registrar under Sub-sections (1) and (2) shall not be exercised by any officer below the rank of a Joint Registrar of Co-operative Societies.

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