Identification of viability of societies and consequences thereof.

(1) Notwithstanding anything in this Act or the rules made thereunder or the bye-laws of the society concerned, if the Registrar is of the opinion that in respect of a society or societies in receipt of State aid as specified under section 43 of the Act, it is necessary to amalgamate or merge any society with any other such society or to divide and restrict or transfer the area of operation of a society or to liquidate a society for any of the following purposes, namely:-

(a) for ensuring economic viability of any or all the societies concerned, or

(b) for avoiding overlapping or conflict of jurisdictions of societies in any area; or

(c) for securing proper management of any society; or

(d) in the interest of the co-operative movement in general and of co-operative credit structure in particular in the State taken as a whole; or

(e) for any other reason in the public interest, he may identify the viable and non-viable societies which may be retained or divided with consequential restriction of the area of operation or the transfer of such area or amalgamated or liquidated, as the case may be, and may by a notification to be published in the prescribed manner, specify the area of operation of each society or societies to be retained divided or amalgamated with any other society indicated in the said notification and invite objections or suggestions from the societies or any members, depositors, creditors, employees or other persons concerned with the affairs of each such society to be received within twenty one days from the date of publication of the notification.

Explanation:- For the purpose of this section,-

(i) the term 'Registrar' means the person on whom the powers of the Registrar under this section are conferred under clause (n) of section 2.

(ii) any society may convene the general body meeting within seven days from the date of publication of the notification.

(2) The Registrar may, after having considered the matter in the light of any suggestions or objections which may be received by him within the period specified in sub-section (i) and other making if necessary, such modification in the proposal as he may deem fit, make an order and publish it in the prescribed manner;

(3) On making such an order,-

(i) the societies affected by the amalgamation, shall be deemed to have been amalgamated with the Society or societies with which each one is amalgamated;

(ii) the registration of every amalgamated or divided society shall stand cancelled whereupon such society shall cease to exist as a corporate body;

(iii) the area added to the area of operation of the society shall be deemed to have been transferred to such society to which it is added;

(iv) the assets of such amalgamated or divided society shall stand transferred to and its liabilities shall devolve on, the society with which it is amalgamated and all immovable properties located in the area transferred shall be deemed to be transferred the society to which the area is transferred;

(v) every member of such amalgamated or divided society and residing in the area so transferred shall be deemed to have been transferred together with his loans, share capital, deposits to the society with which it is amalgamated or to which the area is transferred and he shall have the same rights, privileges and liabilities which he has had in the amalgamated or divided society;

(vi) the Committee of the amalgamated or divided society shall stand dissolved and thereupon, the Registrar shall nominate a committee or appoint a person or persons, wherever necessary to manage the affairs of such society for a period not exceeding three months and arrange for the conduct of elections before the expiry of the term;

(vii) it shall be competent for the Registrar to allot, by order, employees of such societies which are amalgamated or divided to any society or societies; and

(viii) notwithstanding anything in this Act or in any other law, or in any contract, award or any other instrument for the time being in force, the provisions of the order of the Registrar under sub-sections (2) and (3) shall be binding on all societies and their members, depositors, creditors, employees, and other persons having any rights, assets or liabilities in relation to all or any of the concerned societies.

(4) The Registrar may, at any time before the expiration of the period specified in clause (vi) of sub-section (3), arrange for the calling of a general meeting for the election of a new committee in such manner as may be prescribed for every such viable society.

(5) [xxx] (Omitted)

(6) [xxx] (Omitted)

(7) Notwithstanding anything in the Transfer of Property Act, 1882 or the Registration Act, 1908, an order issued under this section shall be sufficient conveyance to transfer the assets and liabilities of the society or societies covered by any order passed under sub-section (2) of this section.

(8) no suit or legal proceedings shall be instituted or maintained or continued in any civil court in respect of any order made under this section.