Chapter X LIQUIDATION

(1) If the Registrar,— (a) after an inquiry has been held under section 8 or an inspection has been made under section 84c or on the report of the Auditor auditing the accounts of the society, or (b) on receipt of an application made upon a resolution carried by three-fourths of the members of the society present at a special general meeting called for the purpose, or (c) of his own motion, in the case of a society which— (i) has not commenced working, or (ii) has ceased working, or (iii) possesses shares or members’ deposits not exceeding five hundred rupees, or (iv) has ceased to comply with any conditions as to registration and management in this Act or the rules or the bye-laws, is of the opinion that a society ought to be wound up, he may issue an interim order directing it to be wound up. (2) A copy of such order made under sub-section (1) shall be communicated, in the prescribed manner, to the society calling upon it to submit its explanation to the Registrar within a month from the date of the issue of such order, and the Registrar, on giving an opportunity to the society of being heard, may issue a final order, vacating or confirming the interim order.

(1) When an interim order is passed under the last preceding section or a final order is passed under that section for the winding up of a society, the Registrar, may, in accordance with the rules, appoint a person to be Liquidator of the society, and fix his remuneration. (2) On issue of the interim order, the officers of the society shall hand over to the Liquidator the custody and control of all the property, effects and actionable claims to which the society is or appears to be entitled and of all books, records and other documents pertaining to the business of the society and, shall have no access to any of them. (3) When a final order is passed confirming the interim order, the officers of the society shall vacate their offices, and while the winding up order remains in force, the general body of the society shall not exercise any power. (4) The person appointed under this section as Liquidator shall, subject to the general control of the Registrar, exercise all or any of the powers mentioned in section 105. The Registrar may remove such person and, appoint another in his place, without assigning any reason. (5) The whole of the assets of the society shall on the appointment of Liquidator under this section vest in such Liquidator, and notwithstanding anything contained in any law for the time being in force, if any immovable property is held by a Liquidator on behalf of the Society, the title over the land shall be completed as soon as the mutation of the name of his office is effected, and no Court shall question the title on the ground of dispossession, want of possession or physical delivery of possession. (6) In the event of the interim order being vacated, the person appointed as Liquidator shall hand over the property, effects and actionable claims and books, records and other documents of the society to the officers who had delivered the same to him. The acts done, and the proceedings shall, after the interim order has been cancelled under the preceding section, be continued by the officers of the society.

The Liquidator appointed under section 103 shall have power subject to the rules and the general supervision, control and direction of the Register :— (a) to institute and defend any suit and other legal proceedings civil or criminal, on behalf of the society, in the name of his office ; (b) to carry on the business of the Society, so far as may be necessary for the beneficial winding up of the same ; (c) to sell the immovable and movable property and actionable claims of the society by public auction or private contract with power to transfer the whole or part thereof to any person or body corporate or sell the same in parcels ; (d) to raise, on the security of the assets of the society, any money required ; (e) to investigate all claims against the society and, subject to the provisions of the Act, to decide questions of priority arising out of such claims, and to pay any class or classes of creditors in full or rateably according to the amount of such debts, the surplus being applied in payment of interest from the date of liquidation at a rate to be approved by the Registrar, but not exceeding the contract rates. ; (f) to make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claims, present or future, whereby the Society may be rendered liable; (g) to compromise all calls or liabilities to calls and debts and liabilities capable of resulting in debts and all claims present or future, certain or contingent, subsisting or supposed to subsist between the society and a contributory or alleged contributory or other debtor or person apprehending liability to the society, and all questions in any way relating to or effecting the assets or the winding up of the society on such terms as may be agreed, and take any security for the discharge of any such call, liability, debt, or claim, and give a complete discharge in respect thereof ; (h) to determine from time to time, after giving an opportunity to answer the claim, the contribution to be made or remaining to be made by the members or past members or by the estates, nominees, heirs or legal representatives of deceased members, or by any officer, past officer or the estate or nominees, heirs, or legal representatives of deceased officer to the assets of the society, such contribution being inclusive of debts due from such members or officers ; (i) to issue requisitions, under section 98 ; (j) to get disputes referred to the Registrar for decision by himself or his nominee or board of nominees ; (k) to determine by what persons and in what proportion the cost of the liquidation shall be borne ; (l) to fix the time or times within which the creditors shall prove their debts and claims or be included for the benefit of any distribution made before those debts or claims are proved ; (m) to summon and enforce the attendance or witnesses and to compel the production of any books, accounts, documents, securities, cash or other properties belonging to or on the custody of the society by the same means and in the same manner as is provided in the case of Civil Court under the Code of Civil Procedure, 1908 ; (n) to do all acts, and to execute in the name and on behalf of the society all deeds, receipts and other documents, as may be necessary to such winding up ; (o) to take such action as may be necessary under section 19, with the prior approval of the Registrar, if there is reason to believe that the society can be reconstructed.

After expiry of the period for appeal against the order made under sub-section (1) of section 102 or where the appeal has been dismissed the order for winding up shall be effective and shall operate in favour of all the creditors and of all the contributories of the Society, as if it had been made on the joint petition of creditors and contributories of the society. When a winding up order becomes effective, the Liquidator shall proceed to realise the assets of the Society by sale or otherwise and no dispute shall be commenced or, if pending at the date of the winding up order, shall be proceeded with, against the Society except by leave of the Registrar and subject to such terms as the Registrar may impose. The Registrar, may of his own motion, however, entertain or dispose of any dispute by or against the Society.

(1) The winding up proceedings of the society shall be closed within three years from the date of the order of the winding up, unless the period is extended by the Registrar ; Provided that, the Registrar shall not grant any extension for a period exceeding one year at a time and four years in the aggregate and shall, immediately after the expiry of seven years from the date of the order for winding up of the society, deem that the Liquidation

This Chapter shall apply to— (a.) Co-operative Banks advancing loans, other than short term loans for purposes herein enumerated (hereinafter referred to as Land Development Banks) that is to say :— (i) land improvement and productive purposes ; (ii) the creation, rebuilding or repairing of house for agricultural purposes; (iii) the purchase or acquisition of title to agricultural lands by tenant purchasers or tenants under the Manipur Land Revenue and Land Reforms Act, 1960 and any corresponding law for the time being in force in any part of the State ; or (iv) the liquidation of debts under law for the time being in force in any part of the State ; and (b) any other co-operative bank permitted by the Registrar under Section 142 to function as a Land Development Bank. Explanation 1.—For the purposes of this section, short term lan means a. loan for a duration of less than 15 months. Explanation 2.—Land improvement and productive purposes means any work, construction or activity which adds to the productivxty of the land and, in particular, includes the following, that is to say — (a) construction and repair of wells (including tube wells), tanks and other work for the storage, supply or distribution of water for the purpose of agriculture, or for the use of men and cattle employed in agriculture ; (b) renewal or reconstruction of any of the foregoing works, or alterations therein, or additions thereto ; (c) preparation of land for irrigation ; (d) drainage, reclamation from rivers or other waters, or protection from floods or from erosion or other damage by water, of land used for agricultural purposes, or waste land Which is cultivable ; (e) bunding and similar improvements ; (f) reclamation, clearance and enclosure or permanent improvement of land for agricultural purposes ; (g) horticulture ; (h) purchase of oil engines, pumping sets and electrical motors for any of the purposes mentioned herein ; (i) purchase of tractors or other agricultural machinery ; (j) increase of the productive capacity of land by addition to it of special variety of Soil ; (k) construction of permanent farm-houses, cattle-sheds, and sheds for processing of agricultural produce at any stage ; (l) purchase of machinery for crushing sugarcane, manufacturing gur or khandsary or sugar ; (m) purchase of land for consolidation of holdings under the Manipur Land Revenue and Land Reforms Act. 1960. (n) such other purposes as the State Government may, from time to time, by notification in the Official Gazette, declare to be improvement or productive purpose for the purpose of this Chapter.

There shall be a State Land Development Bank for the State of Manipur, and eswmany Primary Land Development Bank as may be deemed necessary.

(1) The Register, or any other persan appointed by the State Government in this behalf, shall be Trustee for the purpose of securing the fulfilment of the obligations of the State Development Bank to the holders of debentures issued by it. (2) The Trustee shall be a corporation sole by the name of the Trustee for the debentures in respect of which he is appointed, and Shall have perpetual Succession and a common seal, and in his corporate name may sue and be sued. (3) The powers and functions of the Trustee shall be governed by the provisions of this Act, and the instrument of trust executed between the State Land Development Bank and the Truetee, as modified from time to time by mutual agreement between the State Land Development Bank and the Trustee.

A written order by the Land Development Bank or persons or Board authorised under the bye-iaws of the Bank to make loans for all or any of the purposes specified in section 111, granting a loan to or with the consent of a. person mentioned therein, for the purpose of carrying out the work Specified therein, for the benefit of the land or for the productive purpose specified therein, shall for the purPOSe of this Act, be conclusive of the following matters, that is to Say :---- (a) that the work described or the purpose for which the loan is granted, is an improvement or productive purpose, as the case may be, within the meaning of section 111. (b) that the person had at the date of the order a right to make such an improvement, or incur expenditure for productive purpose, as the case may be ; and (c) that the improvement is one benefiting the land specified and productive purpose concerns the land offered in security, or any part thereof as may be relevant.

(1) A mortgage executed in favour of a Land Development Bank, shall have priority over any claim of the Government arising from a loan granted after the execution of the mortgage under the Land Improvement Leans Act, 1883, or the Agriculturists’ Loans-Aet, 1884, or under any other law for the time being in force. (2) Notwithstanding anything contained in the law for the time being in force, Where a mortgage in favour of a Land Development Bank is in respect of land in Which a tenant purchaser or tenant has an interest, the mortgage may be against the security of such interest, and the rights of the mortgage shall not be affected by the failure of the tenant purchaser or tenant to comply with the requirements of such law, and the sale of the land and his interest therein under such law shall be subject to the prior charge of the Land Development Bank.

The mortgages executed in favour of, and all other assets transferred to a Land Development Bank, by the members thereof, with effect from the date of such execution or transfer, be deemed to have been transferred by such Land Development Bank to the State Land Development Bank,and shall vest in the State Land Development Bank.

(1) Notwithstanding anything contained in the Transfer of Property Act, 1882 or any other law for the time being in force, 110 mortgager of property mortgaged to a Land Development Bank, shall eXcept With the prior consent in writing of the bank, and subject to such terms and conditions as the bank may impose lease or create any tenancy rights on any such property : Provided that, the rights of the Land Development Bank shall be enforceable against the tenant purchaser, the leasee or the tenant, as the case may be, as if he himself were a mortgagor. (2) Where land, mortgaged with possession to a Land Development Bank, is in actual possession of a tenant, the mortgagor or the Land Development Bank shall give notice to the tenant to pay rent to the Land Development Bank during the currency of the lease and the mortgage, and on such notice being given, the tenant shall be deemed to have attorned to the Land Development Bank.

Notwithstanding anything contained in section 121 all moneys due under the mortgage shall unless otherwise directed by the State Land Development Bank or the trustee, and communicated to the mortgagor, be payable by the mortgagor to the Land Development Bank, and such payments shall be as valid as if the mortgage had not been so transferred and the Land Deveiopment Bank shall in the absence of specific direction to the contrary, issued by the State Land DeVelopment Bank or trustee and communicated to the Bank, be entitled to sue on the mortgage or take any other proceeding for the recovery of moneys due under the mortgage.

Where any property mortgaged to a Land Development Bank is 'wholly or partially destroyed, or for any reason the security is rendered insufficient and the mortgagor, having been given a reasonable opportunity by the bank to provide further security enough to render the whole security sufficient, or to -repay sneh portion of loan as may be determined by the bank has failed to provide such security or to repay such portion of loan, the whole of the loan shall be deemed to fall due at once ; and the bank shall be entitled to take action against the mortgagor under section 132 or section 133 for the recovery thereof. Eepianation :—Seeurity shall be deemed insufi‘icient Within the meaning of this section, unless the value of the mortgaged property (including improvements made thereon) exceeds the amount for the time being due on the mortgage by such proportion as may be specified in the rules, reguiations or the bye-laws of the Land Development Bank.

The proceeds of every sale effected under section 133 and confirmed under the preceding section shall be applied first in payment of all costs, charges and eXpenses incurred in connection With the sale or attempted sales, secondly, in payment of any or all interest due on account of the mortgage in consequence whereof the mortgaged property was sold, and thirdly, in payment of the principal due on account of the recovery. If there remain any residue from the preceeds of sale, the same shall be paid to the person proving himself interested in the property sold, or if there are more such persons then one, then to such persons upon their joint receipt or according to their respective interest therein as may be determined by Land DevelopmentBank : Provided that, before any Suoh payments are made the unsecured dues owing— (a) from the mortgage! to the Land Development Bank may be adjusted, and (b) from any member or past member to whom the mortgagor is indebted may also be adjusted under the Written authority given by such member and past member, and after holding such inquiry as may be deemed necessary.

(1) Where a sale of mortgaged property has become abso= lute under section 134 and the sale proceeds have been received in full by the Land Development Bank, the bank shall grant a certificate to the purchaser in the prescribed form, certifying the property sold, and sale price, the date of its sale, the name of the person who at the time of the sale is declared to be the purchaser, and the date on Which the sale became absolute ; and upon the production of such certificate the Sub-Registrar appointed under the Indian Registration Act, 1908, within the limits of whose jurisdiction the whole 01' any part of the property specified in the certificate is situated, shall enter the contents of such certificate in his register rel’ating to immovable property. (2) (a) Where the mortgaged property sold in the occupancy of the mortgagor, or of some person on his behalf or some persons claim 311ng under a title created by the mortgager, subsequent to the mortgage in favour of the State Land Development Bank or a Land Development Bank and a certificate in respect thereon has been granted under the foregoing sub-seetion the Revenue Officer shall, on the application of the purchaser, order delivery to be made by putting such purchaser or any person who he may appoint to receive delivery, on his behalf, in poseession of the property. (b) Where the property sold is in the occupancy of a tenant or other person entitled to occupy the Same, and a certificate in respect thereof has been granted upon the feregoing sub-sectien, the Revenue Officer, shall, on the application of the purchaser and after notiee to eunh tenants or other person, order the deliVery to be made by affixing copy of the certificate of sale in a conspicuous place on the property and preclaimingto the occupant by heat of drum or other customary mode at some convenient place, that the right title and interest of the mortgagor have been transferred to the purchaser. (3) Where any property is sold in the exercise or purported exera eise of a power of sale under section 133, the title of the purchaSer shall not be questioned on the ground that the circumstances required for authorising the sale had not arisen, or due notice of the sale was not given, or the poWer of sale was otherwise improperly or irregularly exercised : Provided that, any person who sufi‘ers damage on account of nna uthorised, improper or irregular exercise of such povver shall have a remedy in damages against the Land Development Bank.

(1) Notwithstanding anything contained in Section 91 on an application made by a Land Development Bank for the recovery of arrears of any sum advanced by it tn any of its members and on its furnishing a statement of accounts in reapect of the arrears, the Registrar may, after making Such enquiries as he deems fit, grant a certificate for the recovery of the amount stated therein to be due as arrears. (2) A certificate by the Registrar under eub-seetion (1) shall be final and conclusive as to the arrears due. The arrears stated to be due therein ehall be recoverable according to the law for the time being in force for the recovery of arrears of land revenue. (3) It shall be competent for the Registrar or a person authorised by him to direct conditional attachment of the property of the mart- gagor until the arrears due to the Land Devalopment Bank together with interest and any incidental charges incurred in recoVery of such arrears, are paid or security for payment of such arrears is furnished to the satisfaction of the Registrar and the provisions of section 95 shall apply mutatis mutandis to conditional attachment of any property made or to be made under this section.

(1) Any ameunt due to a. Land Development Bank (inclu- a’iEmg ease of recovery thereof) shall on an application by it in this behalf be recoverable by the Revenue Officer, or any officer Specially autherieeti by the Revenue Office: in this behalf; in all or any of the following modes namely :-\n(a) from the borrower as if they were arrears of land revenue due by him ; (b) out of the land for the benefit of Which the loan has been granted as if they were arrears of land revenue due 1n respect of that land ; (c) from a. surety (if any) as if they were arrears of land revenue due by him ; (d) out of the property comprised in the collateral security (if any) according to the procedure for the realisation of land revenue by the sale of immovable property other than the land on which the revenue is due.

At any sale of movable or immovable property, held under the pmviaions e‘f this ChapterS no officer or emyloyee of a, Land De= who hem Bank 01‘ the State Land Development Bank, except on behalf of the Bank of whiah he is an officer or an employee, and no pemoa haying any duty to perform in connection with such sale, shall ei‘o’aar direei‘iy or indirectly bid for or acquire or attempt to ecquire any interest in such property.

Nothing contained in any law for the time being in force in any pert. of the State shall apply to any alienation in favour of the Land DeVelopment Bank.

(1) It shall be competent for the State Governmeni? to conetibube one or more Guarantee Funds on such terms and conditions as ii; may deem fit, for the purpose of meeting losses that might arise as a. result of loana being made by the Land Development Banks on tibiae “be immovable property subsequently found to be defective or for any other purposes under this Chapter, for which in the opinion of the Stem Government, it) is necessary to provide for or create a. separate Guarantee Fund.\n(2) The State Land Development Bank and the Land Development Beaks shell contribute be such funds at such rate as may be prescribed, mad the constitution, maintenance and utilisation of such Funds shall be governed by such rules, as may be made by the State Government in this behalf.

It shall be competent for the Registrar to permit any cou Oyemtive bank to function as a. Land Development Bank under such terms and conditions and for such period as he may deem fit.

The provisions of sections 102 and 103 of the Transfer of Property Act, 1882, end of any rules made under section 104 thereof, shall apply, so far as may he, in respect of all notices to be served under this Chayber,

(1) The Tribunal may, either on the application of the Registrar, or on the application of any party interested, review its own order in any case, and pass in reference thereto such order as it thinks just : Provided that, no such application made by the party interested shall be entertained, unless the Tribunal is satisfied that there has been the discovery of new and important matter of evidence, which after the exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when, its order was made, or that there has been some mistake or error, apparent on the face of the record or for any other sufficient reasons ; Provided further that, no such order shall be varied or revised, unless notice has been given to the parties interested to appear and be heard in support of such order. (2) An application for review under the foregoing sub-section by any party, shall be made within ninety days from the date of the communication of the order of the Tribunal.

(1) In exercising the functions conferred on it by or under this Act, the Tribunal shall have the same powers as are vested in a Court in respect of,-- (a) proof of facts by affidavit, (b) summoning and enforcing the attendance of any person and examining him on oath, (c) compelling discovery or the production of documents and (d) issuing commissions for the examination of witnesses. (2) In the case of any such affidavit, any officer appointed by the Tribunal in this behalf may administer the oath to the deponent.