(1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a registered society for the debts of the society as they existed-
(a) in the case of a past member, on the date on which he ceased to be a member; and
(b) in the case of a deceased member, on the date of his death, shall continue for a period of two years from such date:
Provided that the liability of the Government or of a financing bank which have or has taken shares in a registered society shall cease on the date on which the Government or the financing bank ceases to be a member.
(2) Where the Registrar has by order in writing under sub-section (1) of section 126 directed a registered society to be wound up, the liability of a past member or of the estate of a deceased member who ceased to be a member or died within two years immediately preceding the date of the order shall continue until the entire liquidation proceedings are completed, but such liability shall extend only to the debts of the society as they existed on the date of his ceasing to be a member or on the date of his death, as the case may be.
CHAPTER – IV MANAGEMENT OF REGISTERED SOCIETIES