Insertion of section 23A and 23B

In the principal Act, after section 23, new sections shall be added as follows, namely- “23A. Cancellation of registration- (1) Subject to the provisions of this Act and the rules made thereunder, the Registrar may, by an order in writing, cancel the registration of any Society on any of the following grounds:- (a) that the society has willfully contravened any of the provisions of this Act or the rules made thereunder; (b) that the society has not been managing its affairs bonafide or has not been functioning at all for a consecutive period of three years; (c) that the society has not file its annual report and other returns as per section 18 of the Act for three years continuously; (d) that the society has been carrying on any unlawful activity or has allowed any unlawful activity to be carried on within any premises under its control or possession; (e) that the registration or copy of the certificate has been obtained by misrepresentation or fraud; (f) that its activities or proposals have been or are subversive of the very objects of the society, or of the national integrity, or opposed to public policy; (g) the the society has been dissolved without any knowledge of the Registrar, or contrary to the porvisions of this Act and the rules made thereunder; (h) that the number of members has fallen less than seven; (i) that the society is unable to pay its debts or meet its liabilities; (j) that the society is insolvent or is about to be declared; (k) that the siciety has altered or changed its name or objects unilaterally and contrary to the same as registered. after giving in such manner, as he thinks fit,previous notice in writing to the society specifying briefly the grounds of the proposed cansellation and after giving an opportunity to the society to show cause why the cancellation should not be made, and thereafter communicate the order of cancellation, as soon as it is made, to the society by registered post with acknowledgement due. Explanation : “Public Policy” referred to in clause (f) of sub-section (1) of Section 23A is not the policy of a particular government. It connotes some matter which concerns the public good and the public interest. The principles governing public policy must be and are capable, on proper occasion, of expansion or modification. If there is no head of public policy which covers a case, then the court must in consonance with public conscience and in keeping with public good and public interest declare such practice to be opposed to public policy. Above all, in deciding any case which may not be covered by authority, courts should be guided by the Preamble to the Constitution and the principles underlying the Fundamental Rights and the Directive Principles. (2) An appeal against an order made under sub-section (1) may be preferred to the Secretary, Taxation Department within one month from the date of passing of such order, and in the manner as may be prescribed. 23B. Winding-up of society- (1) Where the registration of a society is cancelled, the Registrar may appoint a liquidator to wind up the society, if the society has not already wound up, within such period as may be prescribed. (2) The liquidator shall have power, subject to the control of the Registrar,:- (a) to institute or defend any action or other legal proceeding on behalf of the society by the name of his office; (b) to determine by what persons and in what proportions the cost of the liquidation are to be born; and (c) to give such directions in regard to the collection and distribution of the assets of the registered society as may appear to him to be necessary for winding-up the affairs of the society. (3) An appeal against any order made under sub-section (2) may be preferred to the Secretary, Taxation Department within one month from the date of passing such order, and in the manners as may be prescribed. (4) An order made under this section may, on application, be enforced by any civil court having local jurisdiction in the same manner as a decree of such court”.