(1) Any two or more registered societies may with the prior approval of the Registrar, by special resolution of both or all such registered societies, become amalgamated together as one society, with or without any dissolution or division of the funds of those registered societies or any of them.
Amalgamation and division of registered societies.
(2) Any registered society may with the prior approval of the Registrar, by special resolution, divide itself into two or more societies. The resolution shall contain proposals for the division of the assets and liabilities of the registered society among the new societies into which it is proposed to divide it and may specify the area of operation of, and the members whom will constitute, each of the new societies.
(3) No amalgamation or division of a registered society under sub-section (1) or sub-section (2), as the case may be, shall have any effect until and unless the new society or societies is or are duly registered in accordance with the provisions of this Act.
(4) Upon the registration of the new society or societies, as the case may be, the assets and liabilities of the original registered society or societies shall, subject to the provisions of section 18, be transferred to, and be the assets and liabilities of the new society or societies, in the manner specified in the special resolution mentioned in sub-section (1) or sub-section (2), as the case may be.
31. An amalgamation or division in pursuance of of section 30 shall not prejudice any right of a creditor of any registered society which was a party to such amalgamation or of the registered society which was the subject of such division.
Certain 32. (1) Every mortgage or charge created on or after mortgages the date of commencement of this Act by a registered and charge to society and being eitherbe void if not . (a) mortgage or charge for the purpose of registered securing any issue of debentures ; or Saving rights creditors.
(b) a mortgage or charge on any immovable property wherever situate, or any interest therein, shall, so far as any security on the registered society's property or undertaking is hereby conferred, be void against the liquidator and any creditor of the registered society, unless the prescribed particulars of the mortgage or charge, together with the instrument, if any, by which the mortgage or charge is created or evidenced or a copy thereof verified in the prescribed manner, are filed with the Registrar for registration within such period as may be prescribed after the date of its creation by any person authorized in this behalf by such registered society and when a mortgage or charge becomes void under this subsection, the money secured thereby shall immediately become payable :
Provided that—
(i) in the case of a mortgage or charge created out of India and comprising solely property situate outside India the period prescribed under this sub-section shall be reckoned from the date on which the instrument or copy could, in due course of post and if despatched with the due diligence, have been received in India, and
(ii) where the mortgage or charge is created in India but comprises property situate outside India, the instruments creating or purporting to create the mortgage or charge or a copy thereof verified in the prescribed manner may be filed for registration, notwithstanding that further proceedings may be necessary to make the mortgage or charge valid or effectual according to the law of the country in which the property is situate.
(2) Where a registered society acquires any property which is subject to a mortgage or charge of any such kind as would, if it had been created by the registered society after the acquisition of the property, have been required to be registered under sub-section (1), the registered society shall cause the prescribed particulars of the mortgage or charge, together with the copy (certified in the prescribed manner to be a correct copy) of the instrument, if any, by which the mortgage or charge was created or is evidenced, to be filed with the Registrar for registration within such period as may be prescribed after the date on which the acquisition is completed:
Provided that if the property is situate and the mortgage or charge was created outside India, the period prescribed under this sub-section shall be reckoned from the date on which the copy of the instrument could, in due course of post and if despatched with due diligences have been received in India.
Registration of 33. It shall be the duty of every registered society to satisfaction of file with the Registrar notice of the final payment or mortgage or full satisfaction of any mortgage or charge requiring charge. registration under section 32 within such period as may be prescribed from the date of the payment or satisfaction.
Power of 34(1) Where the Registrar, on perusal of any document Registrar to which a registered society is required to file call for with him under the provisions of this Act, is of opinion that information or any information or explanation is necessary with explanation, respect to any matter to which such document purports to relate, he may, by order in writing, call on the registered society filing the document to furnish in writing such information or explanation within such time as he may specify in the order.
(2) On receipt by the registered society of an order under sub-section (1), it shall be the duty of all persons who are or have been its ofl5cers to furnish such information or explanation to the best of their power.
(3) On receipt of such information or explanation, the Registrar may annex the same to the original document filed with him, and any additional document so annexed by the Registrar shall be subject to the like provisions as to inspection and the taking of copies, as the original document is subject.
CHAPTER rV.
INSPECTION, INQUIRY, CANCELLATION, WINDING-UP AND APPEAL.
Inspection 35. The books of every registered society shall, at all of books, reasonable hours be open to inspection by the Registrar, or by any person authorized by him in this behalf.
Power of 36. (1) The Registrar may, of his own motion or on the Registrar to application of a majority of the members of the committee inquire into of a registered society or on the application of not less than the affairs one-third of the members of that registered society, or, if so of registered moved by the District Collector, hold, or direct some person society authorized by the Registrar by order in writing in this behalf to hold, an inquiry, into the constitution, working and financial condition of that registered society.
(2) An application to the Registrar under sub-section
(1) shall be supported by such evidence as the Registrar may require for the purpose of showing that the applicants have good reason for applying for an inquiry.
(3) The Registrar may require the applicants under sub-section (1) to furnish such security as he thinks fit for the costs of the proposed inquiry, before the inquiry is held.
(4) All expenses of, and incidental or preliminary to^ the inquiry shall, where such inquiry is held— a) on application, be defrayed by the applicants therefor or out of the assets of the registered society or by the members or officers of the registered society, in such proportions as the Registrar may, by order in writing, direct ; and {b) on the District Collector's or Registrar's motion, be defrayed out of the assets of the registered society, and shall be recoverable as an arrear of land revenue.
(5) An order made under sub-section (4) shall, on application, be enforced by any civil court having local jurisdiction in the same manner as a decree of such court.
(6) A person holding an inquiry under this section shall at all reasonable times have free access to all the books, accounts and documents of the registered society, and shall have power to call upon the registered society and the officers of the registered society to produce such books, accounts and documents and furnish such statements and other information in relation to its business as he may direct.
(7) It shall be the duty of all persons who are or have been officers of the registered society to furnish the inquiring officer with all the books, accounts and documents in their custody or power relating to the registered society.
(8) A person holding an inquiry under this section may summon any person who, he has reason to believe, has knowledge of any of the affairs of the registered society and may examine such person on oath and may summon any person to produce any books, accounts or documents belonging to him or in his custody if the person holding the inquiry has reason to believe that such books, accounts or 'documents contain any entries relating to transactions of the registered society.
(9) The result of the inquiry shall be communicated to tha registered society and to the applicants, if any.
Cancelation 37.When an inquiry has been held under section 36 of registration, the registrar may, if he is satisfied—
(a) that the registered society has contravened any of the previsions of this Act or the rules made thereunder; or
(b) that the registered society is insolvent, or must necessarily become so ; or
(c) that the business of any such registered society is conducted fraudulently or not in accordance with the bylaws or the objects specified in the memorandum filed with the Registrar under section 6, , after giving in such manner, as he thinks fit, previous notice in writing to the registered society, specifying briefly the grounds of the proposed cancellation and after giving an opportunity to the registered society to show cause why the cancellation should not be made, cancel the registration of the registered society, and communicate the order of cancellation forthwith to the registered society by registered post.