(1) If the Registrar is satisfied that any matter referred to him or brought to his notice is a dispute within the meaning of section 94, the Registrar shall subject to the rules, decide the dispute himself, or refer it for disposal to a nominee or a board of nominees, appointed by the Registrar.
(2) Where any dispute is referred under the foregoing sub-section, for decision to the Registrar's nominee or board of nominees, the Registrar may, at any time, for reasons to be recorded in writing, withdraw such dispute from his nominee or board of nominees, and may decide the dispute himself, or refer it again for decision to any other nominee or board of nominees appointed by him.
(3) Notwithstanding anything contained in section 94, the Registrar may, if he thinks fit, suspend proceedings in regard to any dispute, if the question at issue between a society and a claimant or between different claimants, is one involving complicated questions of law and fact, until the questions has been tried by a regular suit instituted by one of the parties or by the society. If any such suit is not instituted within two months from the Registrar's order suspending proceedings, the Registrar shall take action as is provided in subsection (1 ).
98.(1) The Registrar, or his nominee or board of nominees, hearing a dispute under the recovery of the money due to it.
Limitation XXXVI of
1963.
Settlement of disputes.
last preceding section shall hear the dispute in the manner prescribed and shall have power to summon and enforce attendance of witness including the parties interested or any of them and to compel them to give evidence on oath, affirmation or affidavit and to compel the production of documents by the same means and as far as possible in the same manner, as is provided in the case of Civil Court by the Code of Civil Procedure, 1908 or the analogous law in force the State of Arunachal Pradesh.
(2) Except with the permission of the Registrar or his nominee or board of nominees, as the case may be, no party shall be represented at the hearing of a legal practitioner.
(3) (a) If the Registrar or his nominee or board of nominees is satisfied that a person, whether he be a member of the society or not has acquired any interest in the property of a person who is a party to a dispute, he may order that the person who has acquired the interest in the property may join as a party to the dispute ; and any decision that may be passed on the reference by the Registrar or his nominee or board of nominees shall be binding on the party so joined, in the same manner as if he were an original party to the dispute.
(b) where a dispute has been instituted in the name of wrong person, or where all the defendants have not been included, the Registrar or his nominee or board of nominees may, at any stage of the hearing of the dispute, if satisfied that the mistake was bonafide, order any other person to be substituted or added as a plaintiff or a defendant upon such terms as he thinks just.
(c)The Registrar, his nominee or board of nominees may at any stage of the proceedings, either upon or without the application of either party, and on such terms as may appear to the Registrar, his nominee or board of nominees, as the case may be, to be just, order that the name of any party improperly joined whether as plaintiff or defendant, be struck out and that the name of any person who ought to have been joined whether as plaintiff or defendant or whose presence before the Registrar, his nominee or board of nominees as the case may be necessary in order to enable the Registrar, his nominee or board of nominees effectually and completely to adjudicate upon and settle all the questions involved in the dispute, be added.
d) Any person who is a party to the dispute and entitled to more than one relief in respect of the same cause of action may claim all or any of such relief; but if he omits to claim for all such reliefs he shall not forward a claim for any relief so omitted, except with the leave of the Registrar, his nominee or board of nominees.
99.(1) Where a dispute has been referred to the Registrar or his nominee or board of nominees under section 97 or under section 109 or where the Registrar or the person authorized under section 90, hears a person against whom charges are framed under that section, the Registrar or his nominee or board of nominees or as the case may be, the person so authorized under section 90, if satisfied on enquiry or otherwise that a party to such dispute or against whom proceedings are pending under section 90 with intent to defeat, delay or obstruct the execution of any award or the carrying out of any order that may be made.
a. is about to dispose of whole or any part of his property, or b. is about to remove the whole or any part of his property from the jurisdiction of the Registrar, may unless adequate security is furnished, direct conditional attachment of the said property and such attachment shall have the same effect as if made by a competent Civil Court.
(2) Where the Registrar, his nominee or board of nominees or the person authorized under section 90 direct attachment of property under the foregoing sub-section, he shall issue a notice calling upon the person whose property is so attached to furnish security which he thinks adequate within a specified period ; and if the person fails to provide the security so demanded, the Registrar or his nominee or board of nominees or, as the case may be, the person, authorized under section 90 may confirm the order and after the decision in the dispute or the completion of the proceedings referred to in the foregoing sub-section may direct the disposal of the property so attached towards the claim if Procedure for settlement of disputes and power of Registrar, his nominee or board of nominees. V of 1908.
Attachment before ward.
awarded.
(3) Attachment made under this section shall not effect the rights subsisting prior to the attachment of the property of persons not parties to the proceedings in connection with which the attachment is made, or bar any person holding a decree against the person whose property is so attached from applying for the sale of the property under attachment in execution of such decree.
100. When a dispute is referred to arbitration, the Registrar or his nominee or board of nominees may, after giving a reasonable opportunity to the parties to the dispute to be heard, make an award on the dispute on the expenses incurred by the parties to the dispute in connection with the proceedings, and the fees and expenses payable to the Registrar or his nominee or, as the case may be, board of nominees. Such an award shall not be invalid merely on the ground that it was made after the expiry of the period fixed for deciding the dispute by the Registrar, and shall subject to appeal or review or revision, be binding on the parties to the dispute.
101.Any party aggrieved by any decision of the Registrar or his nominee or board of nominees under the last preceding section or an order, passed under section 99 may, within two months from the date of the decision or order, appeal to the Government.
102. Every order passed by the Registrar or a person authorized by him under section 90 or by the Registrar, his nominee or board of nominees under section 99 or 100 every order passed in appeal under the last preceding section, every order passed by a Liquidator under section 109, every order passed by the Government in appeal against orders under section 109 and every order passed in revision under section 122 shall if not carried out, - a. on a certificate signed by the Registrar or a liquidator, be deemed to be a decree of a Civil Court, and shall be executed in the same manner as a decree of such Court, or b. be executed according to the law and under the rules for the time being in force for the recovery as a public demand under the Bengal Public Demands Recovery Act 1913 :
Provided that any application for the recovery in such manner of any such sum shall be made to the collector or Deputy Commissioner and shall be accompanied by a certificate signed by the Registrar, or by an Assistant Registrar to whom said power has been delegated by the Registrar, such application shall be made within twelve months from the date fixed in the order and if no such date is fixed, from the date of the order.
103. Any private transfer or delivery of or encumbrance or charge on, property made or created after the issue of the certificate of the Registrar, Liquidator or Assistant Registrar, as the case may be, under section 102 shall be null and void as against the society on whose application the said certificate was issued.
104.(1) When in any execution of an order sought to be executed under section 102, any property cannot be sold for want of buyers, if such property is in occupancy of the defaulter, or of some person on his behalf, or of some person claiming under a title created by the defaulter subsequently to the issue of the certificate of the Registrar, Liquidator or the Assistant Registrar, under di a use (a) or (b) of section 102, the Court or the Collector of the Deputy Commissioner or the Registrar, as the case may be, notwithstanding anything contained in any law for the time being in force, direct that the Decision of Registrar or his nominee or board or nominees.
Appeal against decision of Registrar or his nominee or board of nominee.
Money how recovered.
Private transfer property made issue certificate void against society.
of after of Transfer or property which cannot be sold.
said property or any portion thereof, shall be transferred to the society which has applied for the execution of the said order, in the manner prescribed.
(2) Where property is transferred to the society under the foregoing sub-section, or where property is sold under section 102 the Court, the Collector, the Deputy Commissioner or the Registrar, as the case may be, may in accordance with rules, place the society or the purchaser, as the case may be in possession of the property transferred or sold.
(3) Subject to such rules as may be made in this behalf and to any rights, encumbrances, charges or equities lawfully subsisting in favour of any person, such property or portion thereof shall be held under sub-section (1) by the said society on such terms and conditions as may be agreed upon between the Court, the Collector, the Deputy Commissioner or the Registrar, as the case may be, and the said society. Subject to the general or special orders of the State Government, the Collector, the Deputy Commissioner or the Registrar may delegate to an officer, not below the rank of a Circle Officer for the Assistant Registrar, power exercisable by the Collector, the Deputy Commissioner or the Registrar under this section.
1 OS.The Registrar may by general or special order specify the scale of fees and expenses to be paid to his nominees or the board of nominees.
CHAPTER-X Liquidation
106. (I) If the Registrar - a) after an inquiry has been held under section 84 or an inspection has been made under section 86 or on the report of the auditing of the account of the society, or b) on receipt of an application made upon a resolution carried by three-fourths of the members of a society present at a special meeting called for the purpose, or c) of his own motion in the case of a society which -
(i) has not commenced working, or
(ii) has ceased working, or
(iii) processes shares or members' deposits not exceeding five hundred rupees, or
(iv) has ceased to comply with any conditions as to registration and management in this Act or the rules or the bye-laws, is of the opinion that a society ought to be wound up, he may issue an interim order directing it to be wound up.
(2) A copy of such order made under clause (a) or sub-clause (iv) of clause (c) of sub section (1) shall be communicated in the prescribed manner, to the society calling upon it to submit its explanation to the Registrar within a month from the date of issue of such order, and the Registrar, on giving an opportunity to the society of being heard may issue a final order, vacating or confirming the interim order.
107.(1) When an interim order is passed under the last preceding section of a final order is passed under that section, for the winding up a society the Registrar may, in accordance with the rules, appoint a person to be Liquidator of the society, and fix his remuneration.
(2) On issue of the interim order, the officers of the society shall hand over to the Liquidator the custody and control of all the property, effects and actionable claims to which the society is or appears to be entitled, and all books, records and other documents pertaining to the business of the society and, shall have no access to any of them.
(3) When a final order is passed confirming the interim order, the officers of the society shall vacate their offices and while the winding up order remains in force, the general body of the society shall not exercise any powers.
(4) The person appointed under this section as Liquidator shall, subject to the general control of the Registrar, exercise all or any of the powers mentioned in section 109. The Registrar may remove such persons and appoint another in his place without assigning any reason.
Scales of fees to be paid to the Registrar's nominees.
Winding up.
Appointment of Liquidator.
(5) The whole of the assets of the society shall on the appointment of the Liquidator under this section vest in such Liquidator, and notwithstanding anything contained in any law for the time being in force if any immovable property is held by a Liquidator on behalf of the society, the title over the land shall be complete as soon as mutation of the name of his office is effected,' and no Court shall question the title on the ground of dispossession, want of possession, or physical delivery of possession.
(6) In the event of the interim order being cancelled the person appointed as Liquidator shall hand over the property, effects and actionable claims and books, records and other documents of the society to the officers who had delivered the same to him. The acts done, and the proceedings taken by Liquidator, shall be binding on the society, and such proceedings shall after the interim order has been cancelled under the preceding section, be continued by the officers of the society.
108.(1) The Committee, or any member, of the society ordered to be wound up, may within two months from the date of the issue of the order made under section 106, appeal to the Government :
Provided that no appeal shall lie against an order issued under sub-clause (i), (ii) or (iii) of clause (c) of sub-section (1) of section 106.
(2) No appeal from a member under this section shall be entertained unless it is accompanied by such sum as security for the costs of hearing the appeal, as may be prescribed.
109. The Liquidator appointed under section 107, shall have power subject to the rules and the general supervision, control and direction, of the Registrar, - a. to institute and defend any suit and other legal proceeding civil or criminal, on behalf of the society, in the name of his office ;
b. to carry on the business of the society, so far as may be necessary for the beneficial winding up of the same ;
c. to sell the immovable and movable property and actionable claims of the society by public auction or private contract, with power to transfer the whole or part thereof to any person or body corporate, or sell the same in parcels ;
d. to raise, on the security of the assets of the society any money required ;
e. to investigate all claims against the society and subject to the provisions of the Act, to decide questions on priority arising out such claims, and to pay any class or classes of creditors in full or rateable according to the amount of such debts, the surplus being applied in payment of interest from the date of liquidation at a rate to be approved by the Registrar, but not exceeding the contract rates ;
f. to make any compromise or arrangement with creditors or persons claiming to be creditors or, having or alleging themselves to have any claim, present or future, whereby the society may be rendered liable ;
g. to compromise all calls or liabilities to calls and debts and liabilities capable or resulting in debts and all claims present or future certain or contingent, subsisting or supposed to subsist, between the society and contributory or alleged contributory or other debtor or person apprehending liability to the society, and all questions in any way relating to or affecting the assets or the winding up of the society, on such terms as may be agreed, and take any security for discharge of any such call, liability, debt or claim, and give a complete discharge in respect thereof;
h. to determine from time to time, after giving an opportunity to answer the claim, the contribution to be made or remaining to be made by the members or past members or by the estate, nominees, heirs or legal representative of deceased members, or by any officers or the estate or nominees, heirs, or legal representatives of a deceased officer to the asset of the society such contribution being inclusive of debts due from such members or officers ;
1. to issue requisitions under section 102.
j. to get disputes referred to the Registrar for decision by himself or his nominee or board nominees ;
Appeal against order of winding up.
Powers of the Liquidator.
k. to determine by what persons and in what proportion the cost of the liquidation shall be borne ;
I. to fix the time or times within which the creditors shall prove their debts and claim to be included for the benefit of any distribution made before these debts or claims are proved ;
m. to summon and enforce the attendance of witness and compel the production of any books, accounts, documents, securities, cash or other properties belonging to or in custody of the society by the same means and in the same manner as is provided in the case of a Civil Court under Code of Civil Procedure, 1908 n. to do all acts, and to execute in the name and on behalf of the society, all deeds, receipts and other documents, as may be necessary to such winding up;
o. To take such action as may be necessary under section 19, with the prior approval of the Registrar, if there is reason to believe that the society can be re-constructed.
11 a.After expiry of the period for appeal against the order made under subsection (1) of section 106 or where the appeal, has been dismissed the order for winding up shall be effective and shall operate in favour of all the creditors and of all the contributors of the society, as if it had been made on the joint petition of creditors and contributors. When a winding up order becomes effective the liquidator shall proceed to realize the assets of the society by sale or otherwise, and no dispute shall be commenced or, if pending at the date of the winding up order, shall be proceeded with, against the society, except by leave of the Registrar and subject to such terms as the Registrar may impose. The Registrar may, of his own motion, however, entertain or dispose of any dispute by or against the society.
111.Same as expressly provided in this Act, no Civil Court shall take cognizance of any matter connected with the winding up or dissolution of a society under this Act ; and when a winding up order has been made no suit or other legal proceedings shall lie or be proceeded with against the society or the Liquidator, except by leave of the Registrar, and subject to such terms as he may impose :
Provided that where the winding up order is cancelled, the provisions of this section shall cease to operate so far as the liability of the society and of the members thereof, to be sued is concerned, but they shall continue to apply to the person who appointed as Liquidator.
112.(1) The Liquidator shall, during his tenure of office, at such times as may be prescribed, but not less than twice each year, present to the Registrar an account in the prescribed form of his receipts and payments as Liquidator. The Registrar shall cause the accounts to be audited in such manner as he thinks fit, and for the purpose of audit, the Liquidator shall furnish the Registrar with such vouchers and information as he, or the person appointed by him, may require.
(2) The Liquidator shall cause a summary of audited accounts to be prepared and shall send a copy of such summary to every contributory.
(3) The Liquidator shall pay such fees as the Registrar may direct for the audit of the accounts and books kept by him in the manner prescribed.
(4) The Liquidator shall be held liable for any irregularities which might be discovered in the course or as a result of audit in respect of transactions subsequent to his taking over the affairs of the society and may be proceeded against as if it were an act against which action could be taken under section 90 : Provided that, no such action shall be taken unless the irregularities have caused or are likely to cause loss to the society, and have occurred due to gross negligence or want or omission, in carrying out the duties and functions.