section 53
Supersession of Committee
The Chhattisgarh Co-operative Societies Act, 1960Corporate1960195 sections
Statutory text
- (1) If, in the opinion of the Registrar, the committee of any society: (a) is negligent in the performance of its duties imposed on it by this Act or the bye-laws of such society or by or under any lawful order passed by the Registrar, or is unwilling to perform such duties; or (b) commits such acts which are prejudicial to the interest of such society or its members; or (c) violates the provisions of this Act or the rules made thereunder or the bye-laws of the society or any order passed by the Registrar, then the Registrar may, by an order in writing, remove the committee and for such specified period, which shall not initially exceed two years, appoint any person or persons as he may think fit, to manage the affairs of such society: Provided that in the case of a co-operative bank, the order of supersession shall not be passed without prior consultation with the Reserve Bank: Provided further that if any such intimation, which contains the views of the Reserve Bank in relation to the proposed action, is not received by the Registrar within forty-five days from the date of receipt of the request by that bank in which the consultation was sought, it shall be presumed that the Reserve Bank agrees with the proposed action and the Registrar shall be free to pass such order as he may deem fit: Provided further that in the case of a co-operative bank, if the Reserve Bank so requires in public interest or for preventing the affairs of the co-operative bank being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of any co-operative bank, the Registrar shall pass an order for the supersession for the committee or managing body, by whatever name called, of such co-operative bank and for the appointment of an administrator for such period or periods not exceeding five years in the aggregate as may be specified by the Reserve Bank from time to time, and upon such appointment the provisions of sub-sections (4), (5), (6) and (8) shall apply as if the order had been passed under sub-section (1): Provided also that if any non-official person is appointed in the committee of any primary society, he shall be from amongst the members of such society who are eligible for such representation and in case of a central or apex society, if any person is appointed in the committee of such society, he shall be such member of any of its affiliated societies who is eligible for such representation. (2) No order under sub-section (1) shall be passed unless the committee has been given a reasonable opportunity of showing cause against the proposed order along with a list of allegations, documents and witnesses in support of the allegations made against it, and its representation, if any, has been considered. (3) The period specified in the order under sub-section (1) may, at the discretion of the Registrar, be extended from time to time: Provided that no such order shall remain in force for more than three years in the aggregate. (4) The person or persons so appointed shall, subject to the control of the Registrar and to such instructions as he may from time to time give, have the power to exercise all or any of the functions of the committee or any officer of the society and to perform all or any of the duties of the committee or any officer of the society and to take all such actions as may be required in the interest of the society. (5) The Registrar may fix the remuneration which shall be payable to the person or persons so appointed, and the amount of such remuneration and other expenses, if any, incurred in the management of the society shall be payable from its funds. (6) The person or persons so appointed shall, before the expiry of the period of his/their appointment, arrange for the constitution of a new committee in accordance with the bye-laws of the society. (7) In relation to a financing bank or any such society which is a debtor of a financing bank, before taking action under sub-section (1), the Registrar shall, in the former case, consult the Chhattisgarh Rajya Sahakari Bank Maryadit and in the latter case, the financing bank concerned regarding such action. If the Chhattisgarh Rajya Sahakari Bank Maryadit or the financing bank, as the case may be, does not communicate its views within forty-five days from the date of receipt of the request by such bank in which the consultation was sought, it shall be presumed that the Chhattisgarh Rajya Sahakari Bank Maryadit or the financing bank concerned, as the case may be, agrees with the proposed action. (8) Notwithstanding anything contained in sections 48, 49 and 50, if in any case there is any difference of opinion between the general body of the society and the person or persons appointed under sub-section (1), the matter shall be referred to the Registrar for decision and his decision thereon shall be final: Provided that if the Registrar fails to take a decision within three months of the meeting of the general body, the decision of the general body of the society shall be final. (9) Nothing in this section shall be deemed to affect the power of the Registrar to direct the winding up of the society. (10) During the period between the issuance of notice and the passing of the order for removal of the committee, the Registrar may require the committee to act under the supervision of such authority as the Registrar may specify in that behalf, and with its approval, and any order passed, resolution adopted or any other act done by the committee shall not be effective unless it is approved by such specified authority: Provided that where while proceeding under sub-section (2), the Registrar is of the opinion that during the period of proceedings, suspension of the committee is necessary in the interest of the society, he may suspend the committee, which shall thereupon cease to function, and may make such arrangements as he may deem fit for the management of the affairs of the society until the completion of the proceedings under sub-section (1) and issuance of order: Provided further that the period of suspension shall not exceed six months and upon the expiry of the said period the suspension of the committee shall be withdrawn: Provided further that if the supersession of the committee so suspended is not done after the completion of the above-mentioned proceedings, it shall be reinstated and the period during which it remained suspended shall not be calculated towards its tenure: Provided further that no suspension order shall be passed unless the committee of the society has been given a reasonable opportunity of being heard. (11) Notwithstanding anything contained in this Act, in the case of Central Co-operative Banks, Urban Co-operative Banks and District Co-operative Agriculture and Rural Development Banks, if the recovery is less than 60 percent of the demand or overdues are more than 40 percent in three consecutive financial years, the Registrar shall pass an order for removal of the committee or managing committee, by whatever name called, and for the appointment of an administrator for such period or periods not exceeding five years in the aggregate as may be specified by the Registrar, and upon such appointment the provisions of sub-sections (4), (5) and (6) shall apply as if the order was given under sub-section (1): Provided that no such order shall be passed unless the committee has been given a reasonable opportunity of showing cause against the proposed order and its representation, if any, has been considered. (12) When the committee of any society has been superseded under sub-section (1), any member of such committee shall, notwithstanding anything contained in this Act, rules made thereunder or bye-laws of such society, not be eligible to contest election as a member of the committee of such society for a period of seven years and shall neither be eligible for co-option or nomination therein: Provided that nothing in this sub-section shall apply to a member of the committee of a society who was not a party to the decision of the committee which resulted in its supersession. (13) Notwithstanding anything contained in this Act, the rules made thereunder or the bye-laws of any society, if the committee of any society is prevented from functioning due to an order of a Court or otherwise, the Registrar may temporarily appoint a person or a committee of persons until the order of the Court is set aside or fresh election is held and the committee takes over charge.
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