(1) The Registrar shall, on the application of a creditor of a cooperative society, inspect or dinect some person authorised by him by order in writing in this hehaif to inspect the books of the society:
Provlded that no such inspection shall be made unless the apdicapt-
(a) satisfies the Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction wjthin a reasonable time; and
(b) cicposits with the Registrar such s,ul;l as security f o r the cost::
of th; prol10"d il-ispeciiull as the I<cg;s'i!';;i. I!:r?y r c ~ 1 u j r . ~ .
(2) Tl,e Registrar s l ~ a l l conlmunicate thc result of any such inspection to t h c creditor.
1,nspection of books of indebted societies.
68 THE GAZETTE OF INDIA EXTRAORDINARY [ P A R T II- Costs of 52. Where an inquiry is held under section 50, or an inspection is inquiry and made under section 51, the Registrar may apportion the costs, or such inspection. part of the costs, as he may think fit between the society, the members or creditor demanding an i n q ~ ~ i r y or inspection, and the oficers or former officers and the members or past members of the society:
Provided that-
(a) no order of apportionment of the costs shall be made under this section unless the society or the person liable to pay the costs thereunder has had a reasonable opportunity of being heard;
(b) the Registrar shall state in writing under his own hand the grounds on which the costs are apportioned.
Recovery 53. Any sum awarded by way of costs under section 52 may be reof costs. covered, on application to a Magistrate having jurisdiction in the place where the person, from whom the money is claimable, actually and ' voluntarily resides or carries on business, and such Magistrate shall recover the same as if it were a fine imposed by himself.
Sur- 54. (1) If in the course of an audit, inquiry, inspection or the winding charge. up of a co-operative society, it is found that any person, who is or was entrusted with the organisation or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Regulation, the rules or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated o r fraudulently retained any money or other property belonging to such society, the Registrar may, of his own motion or on the application of the committee, liquidator or any creditor, inquire himself or direct any person authorised by him, by an order in writing in this behalf, to inquire into the conduct of such person:
Provided that no such inquiry shall be held after the expiry of six years from the date of any act or omission referred to in this subsection.
(2) Where an inquiry is made under sub-section ( I ) , the Registrar may, after giving the person concerned an opporkunity of being heard, make an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to< pay contributjon and costs or compensation to such extent, as the Registrar may consider just and equitable.
CHAPTER VIII Disputes which may be referred to arbitration.
SETTLEMENT OF DISPUTES