(1) A society may, by passing a special resolution, determine that it shall be dissolved of and thereupon, with prior intimation to the Registrar, it shall be dissolved at the time specified in the resolution and all the necessary steps shall be taken for the disposal and settlement of the property of the society, and its claims and liabilities according to the bye-laws, if any, of the society, and if there are no bye-laws to this effect in the manner as the General Body may find it expedient:
Provided that in the event of any dispute arising among the members of the Committee or the members of the society, the adjustment of its affairs shall be referred to the court and the court shall make such order in the matter including appointment of liquidator as it deems fit:
Dispute regarding management.
Dissolution of Society and adjustment of its affairs.
Central Act 26 of 1996.
[Act No.35 of 2001] 15
Provided further that if the Central Government or any State Government is a member of, or a contributory to any society registered under this Act, such society shall not be dissolved without the consent of the Government concerned.
(2) A society dissolved under this section shall file with the Registrar a full report showing as to how the property has been disposed of.
25. If upon the dissolution of any society, there remains, after the satisfaction of all its debts and liabilities, any property, the same shall not be delivered to or distributed among the members of the said society or any of them, but shall be delivered to some other society, with a similar objective to be named by a special resolution, or in default thereof, by the court:
Provided that this section shall not apply to any society which is founded or established by the contribution of shareholders in the nature of a Company.