(1) The Registrar may, if he is satisfied for reasons to be recorded in writing that the board of any co-operative society is mismanaging its affairs, under clause (b) of sub-section (1) of section 26, by order direct the board to call a special general meeting of the co-operative society to dissolve the board and reconstitute it within such period as may be specified in the order.
Deputation of Government officers to manage the affairs of co-operative society.
Dissolution and reconstitution of board.
333 The West Bengal Co-operative Societies Act, 1983.
[West Ben. Act (Chapter 1V.—Status and management of co-operative societies.—Section 30.)
Explanation.—For the purpose of this sub-section, the expression "mismanaging its affairs" shall include any act of wilfully disobeying or failing to comply with any lawful order or direction issued by the State Government or the Registrar.
(2) In any direction under sub-section (1) the Registrar may, for reasons to be recorded in writing, order that all or any of the members of the board to be dissolved shall be disqualified for election to the board or for appointment as an officer of the co-operative society for such period, not exceeding three years, as may be specified in the order.
(3) If the board is not dissolved and re-constituted in such manner and within such period as provided in the order under sub-section (1), the Registrar may by order in writing stating reasons and after giving the board an opportunity of stating its objection, if any, dissolve the board, the directors of which shall forthwith vacate their offices and the Registrar may appoint a committee with the nominees, if any, of the State Government and with such members of the co-operative society as he thinks fit to manage the affairs of the co-operative society for a period not exceeding one year at a time and to arrange for the reconstitution of the board by such date as may be specified in the order.
Dissolution 30. (1) If, in the opinion of the Registrar,— of board and appointment (a) any board of administra-
(i) has persistently made defaults, or has been grossly tor. negligent, in the performance of its duties under this Act or the rules or the by-laws, or
(ii) has committed any act prejudicial to the interest of the concerned co-operative society or any other co-operative society, or
(iii) has wilfully disobeyed or wilfully failed to comply with any lawful order or direction of the State Government or the Registrar; or
(b) the affairs and business of any co-operative society have due to persistent default or negligence in the performance of duties by its board or a section thereof or otherwise come to a standstill, the Registrar may, after service of a notice upon the board and giving it an opportunity of being heard, by order in writing stating reasons therefor, dissolve the board, the directors of which shall forthwith vacate their offices and the Registrar shall appoint one or more administrators to manage the affairs of the co-operative society for such period, not 334 The West Bengal Co-operative Societies Act, 1983.
XLV of 1983.]
(Chapter IV.—Status and management of co-operative societies.—Section 30.)
exceeding one year at a time, as may be specified in the order and may also by an order in writing extend such period so, however, that the total period shall not exceed three years.
(2) If, on receipt of a report from the Registrar, or of its own motion, the State Government is of opinion that in view of one or more circumstances referred to in sub-section (1), immediate dissolution of the board of any cooperative society is essential in the interest of that co-operative society or the co-operative movement in general, the State Government may, without giving such board any notice, by notification, giving reasons therefor, dissolve such board, the directors of which shall forthwith vacate their offices and the State Government shall appoint one or more administrators to manage the affairs of that co-operative society for such period, not exceeding two years at a time, as may be specified in the notification and may also by notification extend the period so, however, that the total period shall not exceed three years:
Provided that the State Government shall not take any step towards immediate dissolution of the board of directors of the State Co-operative Bank or the central co-operative land development bank or any central cooperative bank or such other co-operative bank as comes within the 10 of 1949.
provision of Part V of the Banking Regulation Act, 1949 without prior consultation with the Reserve Bank of India.
(3) The Registrar shall, after service of a notice under sub-section (1), by order, depute a Government officer in respect of whom he is the appointing authority to the service of a co-operative society to manage its affairs till an administrator or administrators is or are appointed by him under sub-section (1) and such Government officer shall exercise such powers and perform such duties as the Registrar may specify in the order, and the board of the co-operative society shall allow the said Government officer to exercise his powers and perform his duties accordingly.
(4) During the tenure of office of the administrator or administrators appointed under sub-section (1) or sub-section (2),
(a) all properties of the co-operative society shall vest in the Registrar; and
(b) subject to the control of the Registrar and notwithstanding the preferring of any appeal under section 136, the administrator or administrators shall exercise all the powers and perform all the duties which may be exercised or performed by the board or any officer of the co-operative society under this Act or the rules or the by-laws.
335 The West Bengal Co-operative Societies Act, 1983.
[West Ben. Act Dissolution of the board in certain cases and appointment of special officer.
(Chapter IV—Status and management of co-operative societies.—Section 31.)
(5) If, during the tenure of office of the administrator or administrators appointed under sub-section (1) or sub-section (2), it appears to the Registrar or the State Government, as the case may be, that it is no longer necessary to manage the affairs of the co-operative society by the administrator or administrators, the Registrar or the State Government, as the case may be, may, by order in writing stating reasons therefor, direct the administrator or administrators to arrange, notwithstanding the provisions of section 25, for the reconstitution of the board of the said cooperative society in accordance with the rules and its by-laws and immediately on the reconstitution of the board the administrator or administrators shall make over the management of the co-operative society to the board and shall cease to function and a board reconstituted under this section shall be deemed to be validly reconstituted under section 25 for the purposes of this Act.
(6) The administrator or administrators appointed under sub-section
(1) or sub-section (2) shall, before the expiry of his or their tenure of office, arrange, notwithstanding the provisions of section 25, for the reconstitution of the board in accordance with the rules and the by-laws of the cooperative society and shall hold office until the board so reconstituted takes over charge or the appointment of the administrator or administrators is cancelled, whichever is earlier, and a board reconstituted under this section shall be deemed to have been validly reconstituted under section 25 for the purposes of this Act.
(7) The Registrar shall by order fix the remuneration of the administrator or administrators appointed under sub-section (1) or sub-section (2) and such remuneration shall be paid out of the funds of the co-operative society.
(8) Any action taken by the Registrar under sub-section (1) or by the State Government under sub-section (2) shall not be called in question in any court.
31. Notwithstanding anything to the contrary contained elsewhere in this Act or in any other law for the time being in force,—
(a) the board of directors of any of the co-operative societies mentioned in the Fifth Schedule shall, if the election of its directors has not been held within a period of thirty-six months from the date of their election under sub-section (1) of section 25, stand dissovled on and from the date immediately following the date of expiry of the said period;
336 The West Bengal Co-operative Societies Act, 1983.
XLV of 1983.]
(Chapter IV.—Status and management of co-operative societies.—Section 31.)
(b) with effect from the date of dissolution of the board under clause (a), the directors thereof shall be deemed to have vacated their offices;
(c) upon the dissolution of the board under clause (a) the Registrar shall, by notification, appoint a special officer for managing the affairs of the co-operative society and for making arrangements for reconstitution of the board in accordance with the provisions of this Act, the rules and the by-laws of the co-operative society within a period not exceeding one year from the date of dissolution and, notwithstanding the provisions of section 25, a board reconstituted under this section shall be deemed to have been validly reconstituted under section 25 for the purposes of this Act:
Provided that until a special officer is appointed under this clause, the highest paid executive of the co-operative society, by whatever designation called, shall manage the affairs of the co-operative society.
Explanation.—If there is any dispute as to who is the highest paid executive of the co-operative society, the Registrar's decision thereon shall be final;
(d) with effect from the date of dissolution of the board under clause (a)—
(i) all properties of the co-operative society shall vest in the Registrar and shall remain vested till a new board assumes office; and
(ii) subject to the control and direction of the Registrar, the highest paid executive of the co-operative society or the special officer, as the case may be, shall exercise all the powers and perform all the duties which may, under this Act or the rules or the by-laws, be exercised or performed by the board or any officer of the co-operative society;
(e) where a special officer has been appointed under clause (c), the Registrar may, by order, fix the remuneration of the special officer and the remuneration fixed shall be paid out of the funds of the co-operative society;
(f) the special officer appointed under clause (c) shall hold office until the board is reconstituted.
337 The West Bengal Co-operative Societies Act, 1983.
[West Ben. Act (Chapter IV—Status and management of co-operative societies.—Section 32.)
Summoning of meetings of cooperative society and rescinding or suspending resolution thereof.