Power of Registrar to sanction compromise between a registered society and its creditors

, Power of Registrar to sanction compromise between a registered society and its creditors. –

1. (1) Notwithstanding anything contained in this Act, where a compromise or arrangement is proposed between a registered society and its creditors or any class of them, the Registrar may on the application in a summary way of the society or of any creditor, or in the case of a society in respect of which an order of winding up has been passed, if the liquidator, order a meeting of the creditors or class of creditors as the case may be, to be called, held and conducted in such manner as may be prescribed by rules.
2. (2) If a majority in number representing three-fourth in value of the creditors, of class of creditors, as the case may be present either in person or by proxy at the meeting, agree to any compromise or arrangement, the compromise or arrangement shall, if sanctioned by an order of the Registrar, be binding on all the creditors or the class of creditors as the case may be and also on the society, in the case of a society in respect of which an order of winding up has been passed, on the liquidator and on all persons who have been or may be required by the liquidator acting under clause
   • (c) of sub-section
3. (3) of section 44 to contribute to the assets of the society.
4. (3) If at any time it appears to the Registrar that it is expedient that any compromise or arrangement between a registered society and its creditors or any class of them, which has become final in accordance with the law in force on the date of the commencement of the Bihar Cooperative Societies (Amendment) Act, 1942 (Bihar Act 7 of 1942) or which was, after the date sanctioned by the Registrar under sub-section
5. (2) of this Section, should, in the interest of society or of its creditors or of the said class of creditors, be revised or replaced by a fresh compromise or arrangement, he may either of his own motion or on the application of the society, order a meeting of the creditors or class or creditors as the case may be, present either in person or by proxy at the meeting, agree to the revision of the previous compromise or arrangement, or to any fresh compromise or arrangement, the Registrar may sanction such revised compromise or arrangement or such fresh compromise or arrangement.
6. (4) Any revised compromise or arrangement or fresh compromise or arrangement sanctioned under sub-section
7. (3) may be revised or replaced by a fresh compromise or arrangement in the like manner and subject, to the like conditions as a compromise or arrangement any be revised or replaced by a fresh compromise of arrangement under sub-section (3).
8. (5) Any revised compromise or arrangement or fresh compromise or arrangement sanctioned by the Registrar under sub-section
9. (3) or sub-section
10. (4) be binding on all the creditors or the class of creditors, as the case may be, and also on the society.
11. (6) A compromise or arrangement under sub-section
12. (2) or a revised compromise or arrangement or a fresh compromise or arrangement under sub-section
13. (3) or sub-section
14. (4) shall not be liable to be challenged, set aside, modified, revised or declared void in any Court, upon merits or upon any ground whatsoever except want of jurisdiction.
15. (7) The order of the Registrar calling a meeting of creditors or class of creditors, as the case may be, under sub-section
16. (1) or sub-section (3), and the order of the Registrar sanctioning a compromise or arrangement under sub-section
17. (2) or a revised compromise or arrangement or a fresh compromise or arrangement under sub-section (3), or sub-section
18. (4) shall be published in the official Gazette.]