Inspection of a Cooperative Society

Inspection of a Cooperative Society.

62.

1. (1) Every registered co-operative society shall be liable to inspection at any time by the Registrar or any person authorized by him in this behalf by general or special order and by any affiliating co-operative society if so provided in its bye-laws.
2. (2) An inspection of a registered co-operative society shall be made by the Registrar or any person authorized by him in this behalf by an order in writing at any time on the application of a creditor of a registered co-operative society: Provided that no inspection shall be made under this sub-section unless-
   • (i) the creditor deposits with the Registrar such sum as security for the cost of the proposed inspection as the Registrar may require; and
   • (ii) the creditor satisfies the Registrar that the alleged debt is a sum then due and that he has demanded payment thereof and has not received satisfaction within a reasonable time: Provided further that no inspection shall be conducted under this sub-section without giving the co-operative society an opportunity of being heard.
3. (3) The result of an inspection under this section shall be communicated to the co-operative society and if held at the instance of a creditor, to the creditor.