Chapter VI Chapter VI

Dissolution of Registered Societies

Dissolution of Managing Committee. -

1. (1) In the opinion or the Registrar, the Managing Committee of any registered society in which the economic interest of the Govt. is apparently clear, is Mismanaging the affairs of the registered society or is persistently making default or is negligent in the performance of the duties imposed on it by this Act, the Rules, by-laws, he may, after giving opportunity to the managing committee to state its objection if any and after obtaining opinion- within twenty one days from the chief executive of the affiliating Federation/ Society, by order in writhing suspend the Managing Committee for a period not exceeding six months. During the period of suspension the Managing Committee of the registered society shall there upon cease to function, Registrar shall appoint, any Government Servant a special officer to conduct the affairs of the society and shall fix his duties and liabilities. Provided that the suspended managing committee, if not reinstated earlier shall resume functioning immediately after six months. The period under suspension shall count towards its term.”
2. (2) From the date of reinstatement, a maximum period of six months shall be the period of observation of the working of Managing Committee. If desired improvement in management is not seen, suspension proceeding may be converted into a supersession proceeding and, adopting a procedure similar to that prescribed in subsection
3. (1) for its, suspension, the Managing Committee may be superseded for a period not exceeding six months and it may be ordered that all or any of its members shall be disqualified from being elected to the Managing Committee for the period specified in the order not exceeding three years. Provided that if within six months from the date of reinstatement of the committee the suspension proceeding is not converted into supersession proceeding then that proceeding will be barred by limitation: Provided that if within six months from the date of reinstatement of the committee the suspension proceeding is not converted into supersession proceeding then that proceeding will be barred by limitation: Provided further that the Registrar, in special circumstances and for constitution of Managing Committee by election, may further extend the period of supersession by a maximum period of three months. He may constitute a committee of three persons for managing the affairs of the society in place of Administrator. In such committee the powers of Managing Committee shall remain vested. The Registrar shall record every order passed under this section and inform the concerned society by registered post.
4. (3) When a Managing Committee is 1[ superseded under sub-section (2), the Registrar shall appoint an Administrator on such remuneration, if any, as he may fix, to carry on the business of the society, and the Administrator, shall subject to any direction issued by the Registrar from time to time, exercise all the powers and perform all the duties which may under this Act, lthe rules and the bye-laws, be exercised or performed by the Managing Committee or any officer of the registered society: Provided that the Registrar shall have the power to change the Administrator during the period of dissolution.
5. (4) The Registrar shall, before the expiry of the period of supersession under sub-section (2), require the Administrator to take necessary action for the Constitution of the new Managing Committee and the Administrator shall forth with hand over the management to the mew managing Committee constituted in accordance with the provisions of the Act and the Rules.
6. (5) The Registrar may dissolve the Managing Committee of a registered society in case where –
   • (a) majority of the members and elected office- bearers of the Managing Committee of a registered society resign from their respective membership of office: or
   • (b) half the total member of seats of the Managing Committee of a registered society, becomes vacant for any reason whatsoever, and shall appoint Administrator for the better management of the registered society. Provided that if during the period of dissolution of the Managing Committee, the Registrar is satisfied that the affairs of a registered society have sufficiently improved and it is desirable to restore the management to a newly elected Managing Committee, he may by order direct that the Administrator shall take steps for the constitution of a new Managing Committee and on such Committee having been constituted in accordance with the provision of this Act and the Rules the Administrator shall hand over the management to such newly constituted Managing Committee forthwith.
7. (6) An appeal shall lie from an order of the Registrar under sub-section
8. (1) & sub section
9. (2) to the state Government on application made by any member of the Managing committee within One months from the date of communication of the order to the registered society concerned. The order of the State Government on appeal, and subject to the result of such appeal, if any the order of the Registrar shall be final.
10. (7) The Registrar may issue such direction to the Administrator as to his powers and duties and the affairs of registered society as the Registrar deems desirable and the Administrator may apply to the Registrar at any time for instruction as to the manner in which the Administrator shall conduct the management of the registered society.
11. (8) Nothing in this section shall be deemed to affect the powers of the Registrar to order the winding up of a registered society under section 42 or to cancel the registration of the registered society under sub-section
12. (8) of Section 44.

Winding up order. – The Registrar may, by notification, order a registered society to be wound up if –

1. (a) after an inquiry has been held under section 35 or an inspection made under section 34, section 36 or section 37, or on receipt of an application made three-fourth of the members of the society, or of his own motion, in the case of a society that has not commenced working or has ceased working, he is of opinion that the society ought to be dissolved, or
2. (b) It is a condition of the registration of the society that it should consist of at least ten members who have attained the age of eighteen years, and it is proved to the satisfaction of the registrar that the number of members has been reduced to less than ten.

Appeal against the order of winding up. –

1. (1) Any member of a society in respect of which an order under section 42 has been passed may, within two months from the date of the publication of such order in the official Gazette appeal to the State Government from such order.
2. (2) An order under section 42 shall not take effect until the expiry of two months from the date of the publication of such order in the official Gazette or, if an appeal be preferred, unless and until it is confirmed by notification or appeal.
3. (3) The order of the state Government on appeal and, subject to the result of such appeal, if any, the order of the registrar shall be final.

Liquidation and dissolution. –

1. (1) Where the Registrar has passed an order for the winding up of a registered society, he shall appoint a person or persons to be liquidator of the society.
2. (2) Notwithstanding anything contained in sub-section
3. (2) of section 43, liquidator on appointment shall have power to take Immediate possession of all assets belonging to the society and all books, records and other documents pertaining to the business there of and to carry on the business of the society so far as may be necessary. And all the rights, duties assets and liabilities of the society shall devolve upon the liquidator as such.
4. (3) Subject to the registrar’s power of control and revision, such, liquidator shall also have power –
   • (a) to institute and defend suits and other legal proceedings on behalf of the society by his mane of office;
   • (b) to determine and realize all sums due to the society from any person:
   • (C) to determine from time to time, subject to the provisions of section 32, the contribution 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 any officers or former officers, to the asses of the society and from time to time, to revise any order of contribution until the winding up is completed, and to realize such contribution:
   • (d) to investigate all claims against the society and subject to the provisions of this Act, to decide questions of property arising between claimants after giving an opportunity of being heard to all the creditors:
   • (e) to pay claims against the society (including interest) up to the date of the publication in the official Gazette of the notification ordering the winding up the society according to their respective properties, if any, in full or rateably as the assets of the society permit ; and to apply the surplus, if any, remaining after payment of the claims of the claims in full, in payment of interest from the said date of a rate fixed by him but not exceeding in any case the rate agreed to be paid by the society;
   • (f) to make any compromise or arrangement with persons between whom and the society there exists any dispute or to refer any such dispute to arbitration;
   • (g) to determine by what persons and in what proportions the costs of the liquidation are to be borne; and
   • (h) 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; Provided that the liquidator shall not determine the contribution, debt or assets to be recovered from any person unless an opportunity of being heard has been given to such person.
5. (4) If an appeal from the order of winding up is allowed by State Government under section 34, the liquidator shall give up possession of the assets, books, records and other documents of the society of the managing Committee; and shall cease to carry on the business of the society, Provided that all his acts done in his capacity as liquidator shall continue to have legal validity as if they had been done by the Managing Committee or the Society.
6. (5) With the special sanction of the Registrar, an appeal shall lie to the Court of the District Judge within three months from the date of communication by registered post of an order of a liquidator under clauses (b), (c),
   • (d) (e),
   • (g) or
   • (h) of sub-section
7. (3) to the person concerned.
8. (6) The orders of the liquidator, subject to any order of the Registrar in revision or to any order of the District Judge on appeal, if any, shall be final.
9. (7) When the affairs of the society have been wound up, the liquidator shall deposit the records of the society in such place as the Registrar may direct.
10. (8) After the records of society have been deposited under sub-section
11. (7) the Registrar shall cancel the registration of the society and the society shall then cease to exist as a corporate body.