Disposal of surplus assets

Any surplus assets, shown in the final report of the Liquidator, shall not be divided, amongst its members but shall be devoted to any object or objects provided in the bye-laws of the society, if they specify that such a surplus shall be utilised for the particular purpose and where the society has no such bye-law, the surplus shall vest in the Registrar, who shall hold it in trust and shall transfer it to the reserve fund of a new society registered with a similar object, and serving more or less an area which the society to which the surplus belonged was serving: Provided that where no such society exists or is registered within three years of the cancellation of the registration of the society whose surplus is vested in the Registrar, the Registrar may distribute the surplus in the manner he thinks best, among any or all of the following, namely:—

1. (a) an object of public utility and of local interest as may be recommended by the members in general meeting held under section 121 or where the society has ceased to function and its record is not available or none of its members is forth coming, as the Registrar thinks proper;
2. (b) a federal society with similar objects to which the cancelled society was eligible for affiliation; and
3. (c) any charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890 or any other law for time being in force in the Union territory.