(1) If, in the opinion, of the Registrar, the Board of any) Supersession

(1) If, in the opinion, of the Registrar, the Board of any society persistently makes default, or is negligent, in the performance of the duties imposed on it by this Act or the Rules of the bye-laws, or commits any act Which is prejudicial to the interests, of the Society or its members, or Willfully disobeys directions issued by him for the purposes of securing proper implementation of Co-operative production; and other development programmes approved or undertaken by Government, or is otherwise not functioning properly, the Registrar may, after giving the Board an opportunity of stating its objects, (if any). Within fifteen days from the date of issue of notice by order in writing remove the Board, and :— (a) appoint a Board, consisting of three or more members of the society, in its place, or (b) appoint one or more administrators, Who need not be members of the society, to manage the affairs of the Society for a period (not exceeding two years) specified in the order. Which period may, at the discretion of the Registrar, be extended from time to time, so however that the total period does not exceed five years in the aggregate. (2) The Board or administrator so appointed shall, subject to the control of the Registrar and to such instructions as he, may from time to time give, have power to exercise all or any of the functions of the Board or of any officer of the society, and take all such action as may be required in the interest of the Society. (3) If at any time during any period, extended period referred to in sub-section (1), it appears to the Registrar, that it is no longer necessary to continue to carry on the affairs of the society as aforesaid, the Registrar, may by an order published in the Official Gazette, direct that the management shall terminate ; and on such order being made, the management of the Society shall be handed over to a new Board duly constituted. (4) The Committee or administrator shall, at the expiry or termination of its or his terms of office. arrange for the constitution of a new Board in accordance with the bye-laws of the society. (5) All acts, done or proposed to be done by the Committee or administrator during the period the affairs of the society carried on by the Committee or administrator appointed under sub-section (1), shall be binding on the new Board: (6) The entire Board of Directors of a Central Co-operative Bank, Urban Co-operative Bank and Primary Land Development Bank and Primary Agricultural Credit Co-operative Society shall stand automatically disqualified if the amount of default or the total number of defaulters exceeds 60 p. c. of the total demand or the total number of indebted societies/members in the case of Central Co-operative Bank, Urban Co-operative Bank and 70 p. c. of the total demand/or the total number of indebted members in the case of primary Agricultural credit co-operative Societies for a continuous period of 2 (two) years. (7) On being discovered or declared to be disqualified under sub-section (6). The Registrar shall appoint a Special officer who should be charged with the responsibility for managing the affairs of such Banks/Primary Society as long as is necessary but not exceeding 2 (two) years. The officer appointed in the Bank or in the society shall be Vested with the powers of Registrar under section 156 in respect of individual defaulters at the primary level. If the position of the overdues of the institutions whose management is entrusted to the special officer does not improve even after the tenure of two years, the management of the institution shall not be restored to the elected representative and alternative institutional arrangement should be made for the provision of agricultural credit and the tenure of the office of the special officer may be extended by one year. Necessary arrangement should be made for liquidation of the society and for extension of the area of an adjoining viable society so as to enable the. latter to meet the credit needs of the non-defaulters and new members from the area or the Bank may by-pass the society and may undertake to finance the cultivators directly through its branch. (8) All the Cooperative Institutions registered are to submit proceedings of the general body, Board of management and any other committees and subcommittees to the Registrar, Co-operative Societies, Manipur within 15 (fifteen) days from the date of the meeting. If in the opinion of the Registrar there is anything in the proceedings which is contrary to the provisions of the Act and Rules and the bye-laws of the society. he may annul such proceedings by an order in writing but of course he shall issue a show cause notice to the concerned officer or the Board etc.