(1) When the Registrar is satisfied, after an inspection or inquiry under section 61 or 62 of this Act for reasons to be recorded in writing, that the Administrative Council, managing body or any committee of a registered cooperative society is not functioning properly according to this Act, rules or bye-laws he may, after giving the offending body an opportunity to state its case, direct under clause (d) of sub-section (1) of section 32 of this Act that a special general meeting of the General Assembly be called within a time to be specified to dissolve the Board of Directors, the Administrative Council, managing body or committee concerned and to elect a new one:
Provided that, if in the opinion of the Registrar it is necessary as an emergent measure to suspend the offending body forthwith, he may do so and shall appoint a person or persons, on such conditions as prescribed by him, to be in full control of suspended body until a new body has been elected or action has been taken in accordance with section 36 of this Act.
(2) The Registrar may, for reasons to be recorded, specify in the direction made under sub-section (1) that all or any of the outgoing members of the dissolved body shall be disqualified for such period not exceeding three years as he may determine, for election or appointment as an officer of the society or for service on any of its bodies.
(3) An appeal shall lie to the State Government against an order of the Registrar disqualifying a member of a cooperative society for election or appointment within two months from the receipt of the order.