Costs of inquiry and inspection

Where an inquiry is held under section 50, or an inspection is made under section 51, the Registrar may apportion the costs, or such part of the costs as he may think fit between the society, the members or creditor demanding an inquiry or inspection, and the officers and the members or past members of the society. Provided that – (a) no order of appointment of the costs shall be made under this section unless the society or the person liable to pay the costs there-under has had a reasonable opportunity of being heard; (b) the Registrar shall state in writing under his own hand the grounds on which the costs are apportioned. (1) An order authorising inspection under section 49 or section 51 or any inquiry under section 50 shall, among other things, contain the following: (a) name of the person authorised to conduct the inspection or inquiry; (b) the name of the co-operative society whose affair are to be inspected or inquired into; (c) the specific point or points on which inspection or inquiry is to be made, the period within which the inspection or inquiry is to be completed and report submitted to the Registrar; (d) cost of inquiry; and (e) any other matter relating to the inspection or inquiry as may be considered relevant by the Registrar. (2) A copy of every order authorising an inspection under section 49 or section 51 or an inquiry under section 50, shall be supplied to the federal co-operative society or societies to which the co-operative society in respect of which the order is issued, is affiliated. (3) If the inspection or inquiry cannot be completed within the time specified in the order referred to in sub-rule (1), the person conducting the inspection or inquiry shall submit an interim report stating the reasons for failure to complete the inspection or inquiry in time and the Registrar, if he is satisfied with such reasons may grant such extension of time for the completion of the inspection or inquiry as he may deem necessary or he may withdraw the inspection or inquiry from the person to whom it is entrusted and hold the inspection or inquiry himself or entrust it to such other person as deems fit. (4) On receipt of the order referred to in sub-rule (1), the person authorised to conduct the inspection or inquiry shall proceed to examine the relevant books of accounts and other documents in possession of the co-operative society or any of its officers, members, agents or servants and obtain such information or explanation from any such officer, member, agent or servant of the co-operative society in regard to the transactions and working of the co-operative society as he may deem necessary for the conduct of such inspection or inquiry. (5) The person authorised to conduct inspection or inquiry shall submit his report to the Registrar on all points mentioned in the order referred to in sub rule (1). The report shall contain his findings and the reasons therefore duly supported by such documentary or other evidence as recorded by him during the course of his inspection or inquiry. He may also specify in his report the costs of inspection or inquiry together with reasons and recommend to the Registrar the manner in which the entire cost of part thereof may be apportioned amongst the parties. The Registrar shall pass such orders thereon as may be considered just after giving a reasonable opportunity of being heard to the person or persons concerned. (6) The cost of the inspection or inquiry apportioned by the Registrar under section 52 shall be recovered as provided for in section 53. The Registrar may direct that such costs or any part thereof shall be paid in the first instance from the funds of the co-operative society or in case of inspection, from the amount deposited by the creditor under clause (b) of sub section (1) of section 51 and then recovered and repaid to the co-operative society or the creditor, as the case may be.