(1) A registered society] may on the death of a member, transfer his share of interest in the capital of the society to the person nominated in accordance with the rules or, if there is no person so nominated, to such person as may appear to the society or, managing committee to be the heir or legal representative, as the case may be, a sum representing the value of such member’s share or interest, as ascertained in accordance with the rules or bye-laws :
Provide that –
(i) In the case of society with unlimited liability, such nominee, heir of legal representative as the case may be, may require payment by society or the value of the share or interest of the deceased member ascertained, after deduction the amount of any charge existing under section 22:
(ii) in the case of a society with limited liability, the society shall transfer, subject to any charge existing under section 22 , the share or interest of the deceased member to such nominee, heir of legal representative, as the case may be, being qualified in accordance with the rules and bye-laws for membership of the society or in his application within three months of the death of the decease member, to any person specified in the application who is so qualified :
Provided further that no payment of sum in excess of rupees one hundred shall be made to any such heir or legal representative who has not been nominated in accordance with the rule, until after the decision under section 48 of any claim which may, within that period, be made by any other person.
1. Ins. by Act 16 of 1948.
(2) Subject as aforesaid, a registered society may pay all other money due to deceased member from the society to such nominee heir or legal representative, as the case may be.
(3) All transfers and payments, made by a registered society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.
1[ 24A , Power of Registrar to sanction compromise between a registered society and its creditors. – (1) Notwithstanding anything contained in this Act, where a compromise or arrangement is proposed between a registered society and its creditors or any class of them, the Registrar may on the application in a summary way of the society or of any creditor, or in the case of a society in respect of which an order of winding up has been passed, if the liquidator, order a meeting of the creditors or class of creditors as the case may be, to be called, held and conducted in such manner as may be prescribed by rules.
(2) If a majority in number representing three-fourth in value of the creditors, of class of creditors, as the case may be present either in person or by proxy at the meeting, agree to any compromise or arrangement, the compromise or arrangement shall, if sanctioned by an order of the Registrar, be binding on all the creditors or the class of creditors as the case may be and also on the society, in the case of a society in respect of which an order of winding up has been passed, on the liquidator and on all persons who have been or may be required by the liquidator acting under clause (c) of sub-section (3) of section 44 to contribute to the assets of the society.]
2[ (3) If at any time it appears to the Registrar that it is expedient that any compromise or arrangement between a registered society and its creditors or any class of them, which has become final in accordance with the law in force on the date of the commencement of the Bihar Cooperative Societies (Amendment) Act, 1942 (Bihar Act 7 of 1942) or which was, after the date sanctioned by the Registrar under sub-section (2) of this Section, should, in the interest of society or of its creditors or of the said class of creditors, be revised or replaced by a fresh compromise or arrangement, he may either of his own motion or on the application of the society, order a meeting of the creditors or class or creditors as the case may be, present either in person or by proxy at the meeting, agree to the revision of the previous compromise or arrangement, or to any fresh compromise or arrangement, the Registrar may sanction such revised compromise or arrangement or such fresh compromise or arrangement.
(4) Any revised compromise or arrangement or fresh compromise or arrangement sanctioned under sub-section (3) may be revised or replaced by a fresh compromise or arrangement in the like manner and subject, to the like conditions as a compromise or arrangement any be revised or replaced by a fresh compromise of arrangement under sub-section (3).
(5) Any revised compromise or arrangement or fresh compromise or arrangement sanctioned by the Registrar under sub-section (3) or sub-section (4) be binding on all the creditors or the class of creditors, as the case may be, and also on the society.
1. Ins. by Act 8of 1935
2. Sub- sections (3) to (7) ins by Act 16 of 1978.
(6) A compromise or arrangement under sub-section (2) or a revised compromise or arrangement or a fresh compromise or arrangement under subsection (3) or sub-section (4) shall not be liable to be challenged, set aside, modified, revised or declared void in any Court, upon merits or upon any ground whatsoever except want of jurisdiction.
(7) The order of the Registrar calling a meeting of creditors or class of creditors, as the case may be, under sub-section (1) or sub-section (3), and the order of the Registrar sanctioning a compromise or arrangement under subsection (2) or a revised compromise or arrangement or a fresh compromise or arrangement under sub-section (3), or sub-section (4) shall be published in the official Gazette.]