Provided that the liability of office-bearers shall continue and may be enforced as if the registration of society has not been cancelled.

Procedure on cancellation of registration

1. (1) Where the registration of a society is cancelled, the District Registrar shall––
   • (a) direct the society to complete the process of its dissolution, that is, pass a special resolution, collect all its receivables and settle all its liabilities, provide the details of any of its assets left over after settlement of the liabilities, and submit a proposal for transfer of its left over assets to any other society in existence with identical aims and objects;
   • (b) assess the credentials of a society to whom any such assets are proposed to be transferred by the society referred to in clause (a) and may, either approve such proposal, or direct the society to place such assets at the disposal of the District Collector;
   • (c) constitute a committee of members of such society to carry out the process of its dissolution, where it has no Governing Body or General Body to carry out his directions under clauses (a) and (b);
   • (d) be competent to complete the dissolution of the affairs of the society on his own or appoint any of his subordinates to do the needful or associate any two members from any other society in existence for the purpose.
2. (2) If on dissolution and after settlement of all the claims and liabilities, a society is left with any movable or immovable assets, the District Registrar shall, in the first instance, make efforts to transfer all such assets to any other society in existence with identical aims and objects in operation against a proper receipt and submit a report thereof to the Registrar General, failing which, all such assets shall vest in the custody of the District Collector.
3. (3) Where any asset is placed at the disposal of the District Collector, he may, either direct the transfer thereof to a society in operation with identical aims and objects or use such assets preferably for the same purpose or for any other public purpose.