(1) Where the Registrar has reasonable cause to believe that a cooperative :––
(a) has not commenced business within two years after the date shown on its certificate of registration ; or
(b) has not carried on business for two consecutive years ;
he/she shall send to the cooperative a letter by registered post, inquiring whether the cooperative is carrying on business.
(2) Where the Registrar does not, within thirty days of the date he/she sent a letter in pursuance of sub-section (1) receive, an answer to the letter he/she shall, within fifteen days after the expiry of thirty days, send to the cooperative a letter stating that,––
(a) a letter was sent to the cooperative in pursuance of sub-section (1) ;
(b) no answer to that letter has been received by him/her ; and
(c) if an answer is not received to the letter sent under this sub-section within thirty days from the date it is sent, a notice will be published in the Government Gazette to dissolve the cooperative.
(3) Where the Registrar,––
(a) receives an answer from the cooperative that it is not carrying on business ; or
(b) does not within thirty days after the date that he/she sent a letter in pursuance of sub-section (2), receive an answer to that letter ;
he/she may publish in the Government Gazette and send to the cooperative a notice that, at the expiry of thirty days from the date of that notice, the cooperative will have its name struck off the register, or, unless cause is shown to the contrary, be dissolved.
(4) At the expiry of thirty days after the date of the issue of the notice in pursuance of sub-section (3) the Registrar may, unless cause to the contrary is previously shown by the cooperative––
(a) where he/she is satisfied that the cooperative has no assets or liabilities, dissolve the cooperative, strike off its name from the register of cooperatives and issue a certificate of dissolution ; and
(b) appoint a liquidator to dissolve the cooperative in accordance with section 54.
(5) Where a cooperative fails to file returns and furnish information, as required under section 46, even after a lapse of two hundred and forty days from the close of the cooperatives financial year, the Registrar shall require the board to call a special general meeting for the purpose of considering the annual returns to be filed with and the information to be furnished to the Registrar.
(6) Where the board fails to call a special general meeting within the time period specified in Section 29 (2), the Registrar may call the special general meeting,––
(a) to review the affairs of the cooperative ; and
(b) to ascertain whether the general body desires to continue the cooperative.
(7) Where,––
(a) a quorum of members is not present at a special general meeting called in pursuance of sub-section (5) or (6); or
(b) the general body fails to pass a resolution to the effect that,
(i) the cooperative is to carry on business ;
(ii) the board must present, within sixty days from the date of the special general meeting, to the general body the annual returns to be filed with and the information to be finished to the Registrar ; and
(iii) the cooperative will file the returns with and furnish the information to the Registrar within ninety days from the date of the special general meeting ; or
(c) the cooperative fails to file the returns with and furnish the information to the Registrar within ninety days from, the date of the special general meeting, the Registrar may,––
(i) where he/she is satisfied that the cooperative has no assets or liabilities, dissolve the cooperative, strike off its name from the register of cooperatives and issue a certificate of dissolution ; or
(ii) appoint a liquidator to dissolve the cooperative, in accordance with section 54.
[(8) If the Registrar, after conduct of an enquiry or inspection, is satisfied that a cooperative––
(a) exists for an illegal purpose ; or
(b) has violated any of the provisions of this Act, or its articles of association, or is no longer operating on a cooperative basis ; or
(c) is conducting business without proper license of the competent authority as designated or notified by the Government,
he may give a notice to the cooperative to state its objections and the cooperative shall reply the notice within one month and after considering the reply, the Registrar shall pass an order for dissolution or otherwise of such cooperative, and in the event of dissolution, he shall strike off from the register of cooperatives the name of cooperative and to that effect shall also issue a certification of dissolution and the Registrar shall appoint a Liquidator for liquidation of the assets and liabilities of the cooperative and the liquidation proceedings shall be conducted in accordance with the provisions of this Act.
(9) The Liquidator appointed under sub-section (8) shall have power, subject to the control of the Registrar,––
(a) to institute and defend suits and legal proceedings on behalf of the cooperative by name of his office ;
(b) to determine from time to time the contribution (including debts due) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives of deceased members or by an officer, to the assets of the society ;
(c) to investigate all claims against the cooperative and subject to the provisions of this Act, to decide questions of priority arising between claimants ;
(d) to pay bona fide claims against the cooperative ;
(e) to determine by which person and in what proportions the costs of liquidation are to be borne ;
(f) to determine whether any person is a member, past member or nominee of a deceased member ;
(g) to give such directions in regard to the collection and distribution of the assets of the cooperative as may appear to him to be necessary for winding up the affairs of the cooperative ;
(h) with the previous approval of the Registrar, to make any compromise or arrangement with creditors or persons claiming to be creditors or having or alleging to have any claim, present or future, whereby the society may be rendered, and upon completion of liquidation, the Liquidator shall submit his report to the Registrar.]