The Multi-State Cooperative Societies Rules, 1985

CHAPTER IV: WINDING UP OF MULTI-STATE COOPERATIVE SOCIETIES

19. Procedure to be adopted by liquidator-

When a liquidator has been appointed under sub-section (1) of section 80 the following procedure shall be adopted:

(a) The appointment of the liquidator shall be notified by the Central Registrar in the Official Gazette.

(b) The liquidator shall, as soon as the order of winding up of the multi-State cooperative society takes effect, publish by such means as he may, think proper, a notice, requiring all claims against the multi-State cooperative society, the winding up of which has been ordered, to be submitted to him within two months of the publication of the notice. All liabilities recorded in the account books of a multi-State cooperative society shall be deemed ipso-facto to have been duly submitted to him under this clause.

(c) The liquidator shall investigate all the claims against the multi-State cooperative society and decide questions of priority arising between claimants.

(d) The liquidator shall recover all sums and other properties to which the multi-State cooperative society is entitled and may institute such suits for that purpose or such suits incidental to liquidation proceedings as he may think proper.

(e) The liquidator may empower any person, by general or special order in writing, to make collections and to grant valid receipts on his behalf.

(f) The liquidator shall, after setting the assets and liabilities of multi-State cooperative society as they stood on the date on which the order of winding up is made, proceed next to determine from time to time the contribution including debts due and costs of liquidation to be made or remaining to be made by each of its members, past members, or by the estates, or nominees, heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the multi-State cooperative society, under clause (b) of sub-section (2) of section 81. Should necessity arise, he may also make a subsidiary order regarding such contributions and such order shall be enforceable in the same manner as the original order.

(g) All funds in the charge of the liquidator shall be deposited in the Post Officer Savings Banks or in a cooperative bank or with such other banks as may be approved by the Central Registrar and shall stand in his name.

(h) The Central Registrar shall fix the amount of remuneration, if any, to be paid to the liquidator. The remuneration shall be included in the cost of liquidation, which shall be payable out of the assets of the multi-State cooperative society in priority of all other claims.

(i) The liquidator may call for the meeting of the members of the multi-State cooperative society under liquidation.

(j) The liguidator shall submit to the Central Registrar a quarterly report in such form as the Central Registrar may, specify showing the progress made in liquidation of the multi-State cooperative society.

(k) The liquidator shall keep such books and accounts as may from time to time be specified by the Central Registrar who may at any time cause such books and accounts to be audited.

(l) At the conclusion of the liquidation, the liquidator shall call for a general meeting of the members of the dissolved society at which the liquidator or any other person authorised by him, by special or general order in writing in this behalf, shall summarise, the result of his proceedings and shall take a vote as to the disposal of any surplus funds. The liquidator shall submit his final report to the Central Registrar with a copy of the proceedings of the general meeting referred to above and make over to the Central Registrar all books and registers and accounts etc., belonging to the multi-State cooperative society and all books and accounts relating to the liquidation proceeding kept by him.

(m) If any liability cannot be discharged by the liquidator owing to the whereabouts of the claimants not being known or for any other cause the amount covered by such undischarged liability may be deposited in a Cooperative Bank and shall be available for meeting the claims of the person or persons concerned.

(n) A liquidator may, at any time, be removed by the Central Registrar and he shall on such removal be bound to hand over all the property and documents relating to the society under liquidation to such persons as the Central Registrar may direct.

(0) All the books and records of a multi-State Cooperative society whose registration has been cancelled and the proceedings of liquidation of a multi-State Cooperative society ordered to be wound up may be destroyed by the Central Registrar after the expiry of three years from the date of the order cancelling the registration of the multi-State Cooperative society.

20. Application of assets of the multi-State Cooperative society-

the assets of the multi-State cooperative society shall be applied in order of priority as given below for payment of the liabilities:

(1) Pro-rata payment of all outside liabilities.

(2) Pro-rata repayment of loans and deposits of members.

(3) Pro-rata refund of share capital.

(4) Pro-rata payment of dividend on the share at the rate not exceeding 6.25 per cent per annum for the period of liquidation.

21. Disposal of surplus assets-

for the purpose of sub-section (b) of section 82 the surplus assets shall be distributed among the members in proportion to the share capital held by the members or in proportion to the business done by the members with the multi-State Cooperative society as may be determined by the Central Government before according sanction under sub-clause (b) of section 82.