(1) Where as the result of an audit under section 33 or an inquiry under section 35, or an inspection under section 34, section 36,or section 37, or the winding up of a society, it appears to the Registrar that any person who has taken part in the organisation or management of the society or any past or present officer of the society has-
(a) made any payment which is contrary to law or to the rules or byelaws of the society, 1[ or against the directions or instructions of the financing bank for which the society is acting as agent under sub-section (3) of Section 16], or
(b) by reason of his culpable negligence or misconduct, involved the society, 2[ or the financing bank for which it is acting as agent under sub-section
(3) of Section 16] in any loss or deficiency, or
(c) failed to bring into account any sum which ought to have been brought into account, or
(d) misappropriate or fraudulently retained any property of the society 1[ or of the financing bank, for which it is acting as agent under sub-section (3) of Section 16.]
The Registrar may inquire into the conduct of such person, or officer and after giving such person or officer an opportunity of being heard make an order requiring him to contribute such sum to the assets of the society 1[ or of the financing bank, as the case may be], by way of compensation in respect or such payment or loss of sum, or to restore such property as the Registrar thinks fit, together with such sum as the Registrar may fix to meet the cost of the proceeding under this section:
Provided that, before any order requiring such person or officer to contribute is passed in respect of a payment referred to in clause (a) reasonable time shall be given to such person or officer to recover the amount of such payment from the payee and credit it to the society, 1[ or, as the case may be, of the financing bank]:
3[ Provided further that any order under this sub-section shall be passed for any commission or omission specified in (a), (b), (c) and (d) within six years from the date of occurrence or within three years from the date of submission of surcharge proposal whichever is earlier
(2) This section shall apply notwithstanding that such person or officer may have incurred criminal liability under this Act or under any other law.
(3) An appeal shall lie from an order of the Registrar under sub-section (1) to the State Government on application made by the person or officer against whom such order was passed within three months from the date of the communication to him of such order. The order of the State Government on appeal, and subject to the result of such appeal, if any, the order of the Registrar, shall be final.
1. Ins. by Act 16 of 1948
2. Subs. by Act 29 of 1956
3. Second proviso subs. by 10 of 2002 CHAPTTER VI Dissolution of Registered Societies.
1[ 41. Dissolution of Managing Committee. - (1) In the opinion or the Registrar, the Managing Committee of any registered society in which the economic interest of the Govt. is apparently clear, is Mismanaging the affairs of the registered society or is persistently making default or is negligent in the performance of the duties imposed on it by this Act, the Rules, by-laws, he may, after giving opportunity to the managing committee to state its objection if any and after obtaining opinion- within twenty one days from the chief executive of the affiliating Federation/ Society, by order in writhing suspend the Managing Committee for a period not exceeding six months. During the period of suspension the Managing Committee of the registered society shall there upon cease to function, Registrar shall appoint, any Government Servant a special officer to conduct the affairs of the society and shall fix his duties and liabilities.
1. Subs. by (Amdt.) Act 10 of 2002.
Provided that the suspended managing committee, if not reinstated earlier shall resume functioning immediately after six months. The period under suspension shall count towards its term.” 1[ “(2) From the date of reinstatement, a maximum period of six months shall be the period of observation of the working of Managing Committee. If desired improvement in management is not seen, suspension proceeding may be converted into a supersession proceeding and, adopting a procedure similar to that prescribed in subsection (1) for its, suspension, the Managing Committee may be superseded for a period not exceeding six months and it may be ordered that all or any of its members shall be disqualified from being elected to the Managing Committee for the period specified in the order not exceeding three years.
Provided that if within six months from the date of reinstatement of the committee the suspension proceeding is not converted into supersession proceeding then that proceeding will be barred by limitation:
Provided that if within six months from the date of reinstatement of the committee the suspension proceeding is not converted into supersession proceeding then that proceeding will be barred by limitation:
Provided further that the Registrar, in special circumstances and for constitution of Managing Committee by election, may further extend the period of supersession by a maximum period of three months. He may constitute a committee of three persons for managing the affairs of the society in place of Administrator. In such committee the powers of Managing Committee shall remain vested.
The Registrar shall record every order passed under this section and inform the concerned society by registered post.
(3) When a Managing Committee is 1[ superseded under sub-section 2[(2), the Registrar shall appoint an Administrator on such remuneration, if any, as he may fix, to carry on the business of the society, and the Administrator, shall subject to any direction issued by the Registrar from time to time, exercise all the powers and perform all the duties which may under this Act, lthe rules and the bye-laws, be exercised or performed by the Managing Committee or any officer of the registered society:
Provided that the Registrar shall have the power to change the Administrator during the period of dissolution.
(4) The Registrar shall, before the expiry of the period of 3[ supersession under 3[ sub-section (2), require the Administrator to take necessary action for the Constitution of the new Managing Committee and the Administrator shall forth with hand over the management to the mew managing Committee constituted in accordance with the provisions of the Act and the Rules.
(5) The Registrar may dissolve the Managing Committee of a registered society in case where –
(a) majority of the members and elected office- bearers of the Managing Committee of a registered society resign from their respective membership of office: or
(b) half the total member of seats of the Managing Committee of a registered society, becomes vacant for any reason whatsoever, and shall appoint Administrator for the better management of the registered society.
1. “Sub-section (2)” subs. by (Amdt.) Act 10 of 2002
2. Words “dissolved” and “Sub-section (1)” subs. by word “ susperseded” and “sub-section (2)” by ibid.
3. Words “dissolution” and “Sub-section (1)” substituted by word “supersession” and “sub-section
(2)” by ibid.
Provided that if during the period of dissolution of the Managing Committee, the Registrar is satisfied that the affairs of a registered society have sufficiently improved and it is desirable to restore the management to a newly elected Managing Committee, he may by order direct that the Administrator shall take steps for the constitution of a new Managing Committee and on such Committee having been constituted in accordance with the provision of this Act and the Rules the Administrator shall hand over the management to such newly constituted Managing Committee forthwith.
(6) An appeal shall lie from an order of the Registrar under sub-section (1) 1[ & sub section (2) to the state Government on application made by any member of the Managing committee within 1[One] months from the date of communication of the order to the registered society concerned. The order of the State Government on appeal, and subject to the result of such appeal, if any the order of the Registrar shall be final.
(7) The Registrar may issue such direction to the Administrator as to his powers and duties and the affairs of registered society as the Registrar deems desirable and the Administrator may apply to the Registrar at any time for instruction as to the manner in which the Administrator shall conduct the management of the registered society.
(8) Nothing in this section shall be deemed to affect the powers of the Registrar to order the winding up of a registered society under section 42 or to cancel the registration of the registered society under sub-section (8) of Section 44.]