Chapter XII SUSPENSION, CANCELLATION AND DISSOLUTION

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32. Removal of defunct society and cancellation of registration.

1. (1) Where the Registrar has reasonable cause to believe that a society is defunct and is not carrying on business or operations, he shall issue a show cause notice to such society, at its registered office to show cause as to whether it is carrying on its business or operations and directing it to file such documents or returns, within a period of ninety days, from the date of issuance of notice.
2. (2) Where the defunct society responds to such notice within specified period and submits the requisite documents or informs along with evidence that it is carrying on business or operations, the Registrar shall, after due verification of records, pass an appropriate order.
3. (3) If the Registrar receives a reply from the defunct society to the effect that it is not carrying on any business or operations, he may direct the society to convene a meeting of its General Body and pass a special resolution for its dissolution after settling all its liabilities and thereafter apply for dissolution of the society, whereupon it shall be incumbent upon such society to carry out such directions, within specified period.
4. (4) Where the Registrar does not receive any reply within specified period, he shall cause a public notice to be issued stating that on the expiration of such period as may be specified in such notice, the registration of such defunct society shall be suspended.
5. (5) If no response is received from the defunct society, its member, creditor or claimant within the specified period, the Registrar shall order suspension of registration of such society and after passing of such order, the society shall not be competent to carry on any business.
6. (6) An order under sub-section (5) suspending the registration of the society shall be notified through a public notice for the information of general public.
7. (7) The society, member, creditor or claimant aggrieved with such suspension, may, within a period of three months from the date of order of suspension, submit a representation to the Registrar.
8. (8) The Registrar, on being satisfied that the society at the time of its suspension, was carrying on business or operations or otherwise and it is just and equitable that the name of the society be restored to the register, may revoke the suspension.
9. (9) The society whose registration is restored shall be deemed to have continued in existence, as if its registration had not been suspended.
10. (10) No claims, whatsoever, shall be valid and entertained against a society on expiry of a period of three months from the date of suspension of its registration.
11. (11) If no representation against the suspension order is received within a period of three months from the date of suspension of registration, the Registrar may, unless contrary is shown, strike out the name of the society from the register and cancel its registration. Explanation.—For the purposes of this section “defunct society” means a society which is not carrying on any business or operation or has not filed its annual or other returns with the Registrar continuously for such period, as may be notified.