(1) If a co-operative society is unable to pay its debts to a bank from which it has borrowed, by reason of its members defaulting in the payment of the moneys due from them, the bank may direct the Committee of such society to proceed against such members by taking action under the Bihar and Orissa Cooperative Societies Act, 1935.
(2) If the Committee of the co-operative society fails to proceed against its defaulting members within a period of ninety days from date of receipt of such direction from the bank, the bank itself may proceed against such defaulting members in which even the provisions of the Bihar and Orissa Co-operative Societies Act, 1935, the rules and the bye-law made thereunder, shall apply as if all references to the society or its committee in the said provisions, rules and bye-law were references to the bank.
(3) Where a bank has obtained a decree or award against a co-operative society indebted to it, the bank may proceed to recover such moneys firstly, from the assets of the co-operative society and 9/11 secondly, from the members of the cooperative society to the extent of their debts due to the society.