(1) Where the registration of a society is cancelled, the District Registrar shall––
(a) direct the society to complete the process of its dissolution, that is, pass a special resolution, collect all its receivables and settle all its liabilities, provide the details of any of its assets left over after settlement of the liabilities, and submit a proposal for transfer of its left over assets to any other society in existence with identical aims and objects;
(b) assess the credentials of a society to whom any such assets are proposed to be transferred by the society referred to in clause (a) and may, either approve such proposal, or direct the society to place such assets at the disposal of the District Collector;
(c) constitute a committee of members of such society to carry out the process of its dissolution, where it has no Governing Body or General Body to carry out his directions under clauses (a) and (b);
(d) be competent to complete the dissolution of the affairs of the society on his own or appoint any of his subordinates to do the needful or associate any two members from any other society in existence for the purpose.
(2) If on dissolution and after settlement of all the claims and liabilities, a society is left with any movable or immovable assets, the District Registrar shall, in the first instance, make efforts to transfer all such assets to any other society in existence with identical aims and objects in operation against a proper receipt and submit a report thereof to the Registrar General, failing which, all such assets shall vest in the custody of the District Collector.
(3) Where any asset is placed at the disposal of the District Collector, he may, either direct the transfer thereof to a society in operation with identical aims and objects or use such assets preferably for the same purpose or for any other public purpose.
Cancellation of registration upon inquiry.
Effect of cancellation of registration.
Procedure on cancellation of registration.
17
36. (1) The Registrar may, if he is satisfied that––
(a) the business of any such society is conducted, fraudulently; or
(b) the society is declared insolvent; or
(c) the society is carrying on any unlawful activity or allowing unlawful activity to be carried on in the premises under its control, order an inquiry to be conducted by the District Registrar or any other officer authorised by him in accordance with the procedure contained in sections 31 to 33 and submit a report thereof within the period specified in such order.
Explanation.––For the purposes of this sub-section, an activity shall be treated as unlawful, if such activity is an offence punishable under the provisions of any law for the time being in force.
(2) On receipt of the report referred to in sub-section (1) from the District Registrar, the Registrar shall issue a public notice inviting objections, if any, as to why the registration of the society should not be cancelled.
(3) After considering the objections filed by the society and public, and after giving a reasonable opportunity of being heard to the society, the Registrar may cancel the registration.
37. When the registration of a society is cancelled, the society shall forthwith cease to carry on its business, except in so far as it may be required for the beneficial winding-up of its affairs, for which purpose it shall pass a special resolution and dissolve itself in the manner as provided in this Regulation:
Provided that the liability of office-bearers shall continue and may be enforced as if the registration of society has not been cancelled.
38. (1) Where the registration of a society is cancelled, the District Registrar shall––
(a) direct the society to complete the process of its dissolution, that is, pass a special resolution, collect all its receivables and settle all its liabilities, provide the details of any of its assets left over after settlement of the liabilities, and submit a proposal for transfer of its left over assets to any other society in existence with identical aims and objects;
(b) assess the credentials of a society to whom any such assets are proposed to be transferred by the society referred to in clause (a) and may, either approve such proposal, or direct the society to place such assets at the disposal of the District Collector;
(c) constitute a committee of members of such society to carry out the process of its dissolution, where it has no Governing Body or General Body to carry out his directions under clauses (a) and (b);
(d) be competent to complete the dissolution of the affairs of the society on his own or appoint any of his subordinates to do the needful or associate any two members from any other society in existence for the purpose.
(2) If on dissolution and after settlement of all the claims and liabilities, a society is left with any movable or immovable assets, the District Registrar shall, in the first instance, make efforts to transfer all such assets to any other society in existence with identical aims and objects in operation against a proper receipt and submit a report thereof to the Registrar General, failing which, all such assets shall vest in the custody of the District Collector.
(3) Where any asset is placed at the disposal of the District Collector, he may, either direct the transfer thereof to a society in operation with identical aims and objects or use such assets preferably for the same purpose or for any other public purpose.
Cancellation of registration upon inquiry.
Effect of cancellation of registration.
Procedure on cancellation of registration.
18 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— 18 Dissolution by special resolution.
Dissolution by Registrar.
Disposal of assets.