75. (1) If the Registrar, after an inquiry has been held under section 66 or an inspection has been made under section 67, or on receipt of an application made by not less than three-fourths of the members of a society, is of opinion that the society ought to be wound up, he may in consultation with the State Co-operative Bank issue an order directing it to be wound up.

(a) where it is a condition of the registration of the society that the society shall of at least ten members and the number of members has become less than ten or

(b) where the society has not commenced working within-six-months of its registration or such further time as may be granted by the Registrar or has ceased to function in accordance with co-operative principles.

(3) The Registrar may cancel an order for the winding up of society, at any time, in any case, where, in his opinion, the society should continue to exist.

(4) A copy of such order shall be communicated by registered post to the society and to the State Co-operative Bank of which the society is a member.

76. (1) Where the Registrar has made an order under section 75 for the winding up of a society the registrar may appoint a liquidator for the purpose and fix his remuneration and may remove such person and appoint another in his place

Provided that it shall not be necessary to appoint any liquidator for winding up of a society which has not commenced working, or has share capital and members deposits not exceeding five hundred rupees.

(2) A liquidator shall, on appointment, take into his custody or under his control all the property, effects and actionable claims to which the society is or appears to be entitled and all books, records and other documents pertaining to the business of the society and shall take such steps as he may deem necessary of expedient, to prevent loss or deterioration of, or damage to, such property, effects and claims, he may carry on the business of the society so far as may be necessary with the previous approval of the Registrar.

(3) Where an appeal is preferred under section 98, an order of winding up of a society made under section 75 shall not operate thereafter until the order is confirmed in appeal.
Provided that the liquidator shall continue to have custody or control of the property, effects actionable claims mentioned in sub section

(2) and have authority to take the steps referred to in that sub-section.

(4) Where an order of winding up a society is set aside in appeal, the property, effects and actionable claims of the society shall rivets in the society

77. (1) Subject to any rules made in this behalf, the whole of the assets of a society, in respect of which an order for winding up has been made, shall vest in the liquidator appointed under section 76 from the date on which the order takes effect and the liquidator shall have power to realize such assets by sale or otherwise.

(2) Such liquidator shall also have power, subject to the control of the Registrar.

(a) to institute and defend suits and other legal proceedings on behalf of the society in the name of his office;
 

(b) to determine from to time the contribution (including debts due and costs of liquidation) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives of deceased members by or any officers or former officers, to the assets of the society;

(c) to investigate all claims against the society and subject to the provisions of this Act, to decide questions of priority arising between claimants;

(d) to pay claims against the society including interest up to the date of winding up according to their respective priorities, if any, in full or rate ably, as the assets of the society may permit; the surplus, if any, remaining after payment of the claims being applied in payment of interest from the date of such order of winding up at a rate fixed by him but not exceeding the contract rate in any case;

(e) to determine by what persons and in what proportions the cost of the liquidation are to be borne;

(f) to determine whether any person is a member, past member or nominee of deceased member.

(g) to give such directions in regard to the collection and distribution of the assets of the society as may appear to him to be necessary for winding up the affairs of the society:

(h) to carry on the business of the society so far as may be necessary for the beneficial winding up the same.

(i) to make any compromise or arrangement with creditors or persons claiming to be creditors or having or alleging to have any claim, presently or future, whereby the society may be rendered liable.

(j) to make any compromise or arrangement with any person between whom and the society there exists any dispute and to refer any such dispute to arbitration;

(k) after consulting the members of the society, to dispose of the surplus if any, remaining after paying the claims against the society in the manner prescribed and

(l) to compromise all calls of liabilities to calls and debts and liabilities capable of resulting in debts and all claims, present or future, certain or contingent, subsisting or supposed to subsist between the society and a contributory or alleged contributory or other debtor or person and all questions in any way relating to or affecting the assets or the winding up of the society on such terms as may agreed and take any security for the discharge of any such call, liability, debt for claim and give a complete discharge in respect thereto.

(3) When the affairs of a society have been wound up, the liquidator shall make a report to the Registrar and deposit the records of the society in such place as the Registrar may direct.

78. Notwithstanding anything contained in any law relating to insolvency as may for the time being in force, the contribution assessed by a liquidator shall rank in order of priority next to debt due to the Government or to any local authority in solvency proceedings,

79. (1) The Registrar may, after considering the report of the liquidator made to him under sub-section (3) of section 77 order the registration of the society to be cancelled.

(2) An order passed under sub-section (1) shall be communicated by registered post to the president of the society and to the federal society, if any, and to the State Co-operative Bank, of which the society was a member.

Next