Home ❯ Deregistration/Liquidation of State Cooperatives
Procedure for De-registration:
If the Registrar or such other person as may be authorized in this behalf, on receipt of an application made upon resolution adopted in a meeting of the General Assembly by a three—fourth majority of the members present in the meeting, provided that the notice of dissolution was included in the circulated agenda of the meeting, after an enquiry has been held under Section 87 or after the inspection has been made under Section 88 he may, by an order in writing, cancel the registration of the society.
The Registrar after an enquiry has been held under Section 87 or after the inspection has been made under Section 88 may cancel the registration of a society which— (i)
A copy of the order canceling the registration of a society shall forthwith be published in the official Gazette by a notice, which shall be communicated to the society and to any affiliating society concerned by registered post. The notice shall contain the name of the liquidator appointed under Section 95 who shall take full charge of the society forthwith and shall require all claims against the said society to be made to the liquidator within two months of the publication of the notice. All liabilities recorded in the account books of the society shall be deemed ipso facto to have been so claimed.
When the cancellation of the registration of a society takes effect, the society shall cease to exist as a corporate body, but shall vest in the liquidator.
Any member of the society may within two months from the date of publication of the order of cancellation, appeal to the State Government from such order.
Where an appeal is presented within two months from the publication of an order cancelling the registration of the society, the order shall take effect on the expiry of the period.
When an appeal is presented within two months of an order of cancellation, the order shall not take effect until it is confirmed by the State Government and such confirmation is communicated to the society by registered post.
Winding up, Appointment of liquidator and his powers and functions:
When an order of cancellation of the registration of a society is made by the Registrar under Section 94, he may appoint any person to be the liquidator of the society and may remove such person and appoint another in his place.
The liquidator appointed under sub-section (1) shall have power from the date of his appointment to take immediate possession of all assets, properties, effects and actionable claims of the society or to which the society is entitled and all books, records, case and other documents pertaining to the business of the society and, in the interest of the society, shall hold charge of the society notwithstanding the provisions of Section 94 provided that no steps shall be taken for the winding up of the society during the pendency of any stay order.
The liquidator shall, under the general control of the Registrar, have power, so far as is necessary for the winding up of the society, on behalf of the society to carry on the business thereof and to do all acts and execute all documents necessary to such winding up, and in particular shall exercise the following powers:
to institute, compromise and defend suits and other legal proceedings on behalf of the society;
to make any compromise or arrangement with any person between whom and the society there exists any dispute;
to determine the debts due to the society by a member, past member or estate, nominees, heirs or legal representatives of deceased members;
to determine from time to time the contribution to be made or remaining to be made by the members, past members or by the estate or nominees, heirs or legal representative of deceased members or by any officers or former officers, to the assets of the society and to determine the debts due from such members or persons and the cost of liquidation;
to calculate the cost of liquidation and to determine by what persons and in what proportion they are to be borne;
to investigate all claims against the society and subject to the provisions of this Act to decide questions of priority arising between claimants;
to pay claims against the society including interest up to date of cancellation of registration according to their respective priorities, if any, in full or ratably as the assets including the reserve fund of the society, permit; the surplus, if any, remaining after payment of claims being applied in payment of interest from the date of such cancellation at the rate fixed by him but not exceeding the contract rate in any case;
to take step to recover dues according to the provisions of Section 102, if necessary; and
to dispose of the surplus, if any, remaining after paying the claims against the society in accordance with Section 96.
Subject to the provisions of this Act and Rules made there under, a liquidator appointed under Section 95 shall, in so far as such powers are necessary for carrying out the purpose of this Section, have power to summon and enforce the attendance of witnesses and to compel the production of any books, accounts, documents, securities, cash or other properties belonging to or in the custody of the society by the same means and so far as may be in the same manner as is provided in the case of a Civil Court under the Code of Civil Procedure, 1908 (V of 1908).
Notwithstanding anything contained in any law for the time being in force, if any landed property is held by a liquidator as such the title over the land shall be complete as soon as the mutation of the name of his office is, effected and no court shall question the title on the ground of dispossession, want of possession or physical delivery of possession. After all the liabilities including the paid up share capital of a wound up cooperative society have been met, the surplus assets shall not be divided among its members but they shall be applied to any object described in the bye-laws and when no object is so prescribed in the bye-laws, to the cooperative development fund.
Number of Cooperative Societies De-registered under the 100 Day's Initiative of the Cooperation Department: