(1) An order authorizing inquiry under section 55 or inspection 3[under section 55-A and 56] shall, among other things, contain the following :-
(a) the name of the person authorized to conduct the inquiry or inspection;
(b) the name of the society whose affairs are to be inquired into or whose books are to be inspected;
(c) the specific point or points on which the inquiry or inspection is to be made, the period within which the inquiry or inspection is to be completed and report submitted to the Registrar or the financing bank, as the cast may be;
(d) any other matter relating to the inquiry or inspection.
(2) A copy of every order authorising inquiry under section 55 shall be supplied to the apex or central society or societies to which the society in respect of which the order is issued is affiliated.
3 Substituted by G.S.R. 53 dated 10.7.2017, published in Raj. Gazette E.O. part 4(x)(I) dated 10.7.2017, come into force at once.
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(3) If the inquiry or inspection cannot be completed within the time specified in the order referred to in sub-rule (1) the person conducting the inquiry or inspection shall submit an interim report stating the reasons for failure to complete the inquiry or inspection and the Registrar or the financing bank authorising the inspection, if he is satisfied, grant such extension of time of the completion of the inquiry or inspection as he may deem necessary or he may withdraw the inquiry or inspection from the officer to whom it is entrusted and hold the inquiry or inspection himself or entrust it to such other person as he deems fit.
(4) On receipt of the order referred to in sub-rule (1) the persons authorised to conduct the inquiry or inspection shall proceed to examine the relevant books of accounts and other documents in possession of the society or any of its officers' members, agents or servants and obtain such information or explanation from any such officers, members, agents or servants of the society in regard to the transactions and working of the society as he deems necessary for the conduct of such inquiry or inspection.
(5) The person authorised to conduct the inquiry or inspection shall submit his report to the Registrar or to the financing bank, as the case may be, on all the points mentioned in the order referred to in subrule (1). The reports shall contain his findings and the reasons therefore supported by such documentary or other evidence as recorded by him during the course of his inquiry or inspection.
(6) The person authorised to conduct the inquiry shall also specify in his report the cost of the inquiry together with reasons and recommend to the Registrar the manner in which the entire cost or a part thereof may be apportioned, amongst the society, the society to which the society concerned is affiliated, the members or the creditor, demanding an 109 inquiry or the officers or former officers of the society The Registrar shall pass such orders thereon as may be considered just after giving a reasonable opportunity of being heard to the person or persons concerned.
(7) The costs of the inquiry apportioned by the Registrar under sub-rule (6) shall be recovered as arrears of Land Revenue. The Registrar may direct that such costs or any part thereof shall be paid in the first instance from the funds of the society and then recovered and repaid to the society or the creditor, as the case may be.
76. Procedure for assessing surcharge under section 57 -
(1) On receipt of a report referred to in section 57 or otherwise the Registrar or any other person: authorised by him may make such further inquiries as he may deem necessary regarding the extent to which the person who has taken any part in the organization or management of a society or any deceased, past or present officer or employee of the society has misapplied or retained, or become liable or accountable for, any money or property of the society, or has committed misfeasance or breach of trust in relation to the society or has made any payment contrary to the Act, these rules or bye-laws.
(2) On the completion of the further inquiries under sub-rule (1), where necessary, the Registrar shall issue a notice to the person or persons concerned furnishing him or them with particulars of the acts of misapplication, retention misfeasance or breach of trust and the extent of his or their liability involved therein and calling upon him or them to put in statements in his or their defence within fifteen days of the date of issue of the notice.
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(3) On receipt of the statement referred to in sub-rule (2), the Registrar, if he is satisfied that there are reasonable grounds for holding the person or persons liable, shall frame charges.
(4) The person or persons concerned shall, after the charges are framed, be asked to put in his or their statements in defence and to indicate the documentary or oral evidence which he would like to produce. The Registrar may permit production of other documentary or oral evidence, if considered necessary, subsequently.
(5) The Registrar shall thereafter record the evidence led by the society or the person or persons concerned and take on record the documents proved by them and shall thereafter fix a date for hearing arguments of both the parties.
(6) On the day fixed for hearing under sub-rule (5), the Registrar shall hear the arguments and may pass his final orders on the same day or on any date fixed by him within sixty days from the date on which the hearing was completed. On the day fixed for hearing under sub-rule (5) the Registrar shall make his final order either ordering repayment of the money or return of the property to the society together with interest at such rate as may be specified by him or to contribute such amount to the assets of the society by way of compensation in regard to misapplication, retention, misfeasance or breach of trust as may be determined or may reject the claim submitted on behalf of the society.
(7) The Registrar may also provide in his order for the payment of the cost of the proceeding under this rule or any part of such cost as he thinks just.
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(8) The Registrar shall furnish a copy of his order, under subrule (6) to the party concerned within ten days of the date on which he makes his final order.
(9) If during the course of proceedings under this rule, the Registrar is satisfied that a person whose conduct has been inquired into under sub-section (1) of section 57, is not responsible for the acts of misapplication, retention misfeasance or breach of trust he may pass an order to drop the case against him, and if he is also of the opinion that some other person is responsible for the same he shall send a note to this effect in detail to the competent authority within ten days to initiate further appropriate action in this regard. If he himself is the competent authority he shall himself initiate action immediately.
CHAPTER IX Settlement of Dispute
77. Reference of dispute -
(1) A reference of a dispute under section 58 of the Act shall be made in writing to Registrar in Form "H". Wherever necessary the Registrar may require the party referring the dispute to him to produce a certified copy of the relevant records on which the dispute is based and such other statements or records as may be required by him, before proceeding with the consideration of such reference.
(2) Where on receipt of a reference under sub-rule (1), the Registrar, decides under clause (c) of sub-section (1) of section 60 of the Act to refer it for disposal by an arbitrator, the reference shall be made to the arbitrator appointed by the Registrar, who shall either be a serving or a retired officer or employee of the Rajasthan State or Subordinate Cooperative Services or any other serving officer of the Rajasthan State 112 Services or any other legal expert conversant with the working of the concerned co-operative society.