(1) The winding up proceedings of a society shall be closed within three years from the date of the order of the winding up, unless the period is extended by the Registrar :
Provided that the Registrar shall not grant any extension for a period exceeding one year at a time and four years in the aggregate, and shall immediately after the expiry .of seven years from the date of the order for winding up of the society, deem that the liquidation V of 1908 Effect of order of winding up.
Bar or suit in winding up and dissolution matters.
Audit of Liquidator's accounts.
Termination of liquidation proceedings.
proceedings have been terminated and pass an order terminating the liquidation proceedings.
Explanation - In the case of a society which is under liquidation at the commencement of this Act, an order for the winding up of the society shall be deemed for the purpose of this section to have been passed on the date of such commencement.
(2) Notwithstanding anything contained in the foregoing sub-section the Registrar shall terminate the liquidation proceedings on receipt of the final report from the Liquidator. The final report of the Liquidator shall state that the liquidation proceedings of the society have been closed and how the winding has been conducted and the property of and the claims of the society have been disposed of and shall include a statement showing a summary of the account of the winding up including the cost of liquidation the amount (if any) standing to the credit of the society in liquidation, after paying of its liabilities including the share on interest of members, and suggest how the surplus should be utilized.
(3) The Registrar, on receipt of the final report from the Liquidator, shall direct the Liquidator to convene a general meeting of the members of the society for recording his final report.
114. The surplus assets, as shown in the final report of the Liquidator of a society which has been wound up; may either be divided by the Registrar, with the previous sanction of the Government, amongst its members in such manner may be prescribed or be devoted to any object or objects provided in the bye-laws of the society, if they specify that such surplus shall be utilized for the particular purpose or may be utilized for both the purpose.
Where the surplus is not so divided among the members and the society has no such bye-law, the surplus vest in the Registrar, who shall hold it in trust and shall transfer it to the reserve fund of a new society registered with a similar object, and serving more or less an area which the society to which the surplus belonged was serving.
Provided that, where no such society exists or is registered within three years of the cancellation of the society whose surplus is vested in the Registrar, the Registrar may distribute the surplus, in the manner he thinks best among any or all of the followings :
a. an object of public utility and of local interest as may be recommended by the members in general meeting held under the preceding section;
b. a federal society with similar objects to which the cancelled society was eligible for affiliation or ; where no federal society exists, the territory level federal society which may be notified in this behalf by the State Government ; and c. any charitable purpose as defined in section 2 of the Charitable Endowments Act,
1890.
115. Notwithstanding anything contained in this Act,
(i) an order for the winding up or an order sanctioning a scheme of compromise or arrangement or amalgamation or reconstruction of an insured Co-operative Bank cannot be made save with the previous sanction in writing of the Reserve Bank of India;
(ii) an order for the winding up of an insured Co-operative Bank shall be made if so required by the Reserve Bank of India in the circumstances referred to in section 13 D of the Deposit Insurance Corporation Act, 1961 ;
(iii) if so required by the Reserved Bank of India in the public interest or for preventing the affairs of an insured Co-operative Bank from being conducted in a manner detrimental to the interest of the depositors or for securing the proper management of such Bank, an order shall be made for the supersession of the managing body by whatever name called, of such Bank and for the appointment of an administrator for five years in the aggregate as may from time to time be specified by the Reserve Bank of India.
(iv) an order for winding up of an insured Co-operative Bank or an order sanctioning a scheme of compromise or arrangement or of amalgamation or reconstruction or an order for the supersession of the managing body, by whatever name called, of such Bank and appointment of an administrator therefore, made with the previous Disposal surplus assets of VI of 1890.
Order for winding up of insured Cooperative Bank etc, and not to be made without sanction of Reserve Bank of India XL VII of 196 XLVII of 1961.
sanction in writing or on requisition of the Reserve Bank of India shall not be liable to be called in question in any manner; and
(v) the Liquidator or the insured Co-operative Bank or the transferee Bank, as the case may be, shall be under an obligation to repay to the Deposit Insurance Corporation established under section 3 (1) of the Deposit Insurance Corporation Act 1961 in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance Corporation Act, 1961.
Explanation : -For the purpose of this section, an "Insured Cooperative Bank" means a society which is an Insured Bank as defined under the provisions of the Deposit insurance Corporation Act, 1961.
CHAPTER-XI Offences and Penalties