Rule No 89. Appointment of Liquidator and the procedure to be followed and powers
to be exercised by him
The following procedure shall be adopted for the
appointment of the Liquidator and for the exercise of his powers, namely:-
(1) The appointment of the Liquidator shall be notified by the Registrar in the Official Gazette.
(2) As soon as may be after the interim order is issued under Section 102
the Liquidator shall take over the custody and control of all the property, effects
and actionable claims and books, records and other documents pertaining to the
business of the society and continue to hold custody and control thereof until the
interim order is vacated.
(4) Where the Liquidator receives the Registrars final order confirming the
interim order, the Liquidator shall publish by such means as he may think proper
a notice requiring all claims against the society to be notified to him within two
months of the publication of the notice and shall thereafter proceed to take such
further action as he is empowered to take under the Act. All liabilities recorded in
the account books of the society shall be deemed ipso facto to have been duly
notified to the Liquidator under this rule.
(5) The Liquidator shall, after settling the assets and liabilities of the society
as they stood on the date on which the order for winding up is made, proceed to
determine the contribution to be made or remaining to be made to the assets of
the society by persons and estates referred to in clause (h) of Section 105
by order call upon each of them to pay the amount specified in the order as
contribution and as costs of the liquidation determined under clause (k) of Section 105. Every such order shall be submitted for approval to the Registrar,
who may modify it or refer it back to the Liquidator for further inquiry or other
action or may forward it for execution under Section 98
(6) If the sum assessed against any member is not recovered, the
Liquidator may issue subsidiary order or orders against any other member or
members to the extent of the liability of each for the debts of the society until
the whole amount due from members is recovered. The provisions of sub-rule
(5) shall mutatis mutandis apply to such orders.
(7) The Liquidator shall submit a quarterly progress report and such other
returns and statements to the Registrar in such forms as the Registrar may
require, showing the progress made in the liquidation of the society.
(8) The Liquidator may empower any person, by general or special order in
writing, to make collections and to grant valid receipts on his behalf.
(9) Unless otherwise permitted by the Registrar, all funds in charge of the
Liquidator shall be deposited in the Apex State Co-operative Bank, or a Central
Cooperative Bank or in the State Bank of India, and shall stand in the name of
(10) The 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 society in priority to other claims.
(11) The Liquidator shall have power to call meetings of members of the
society in liquidation.
(12) The Liquidator may submit an application to the Registrar for the
reconstruction of the society under Section 19
if he is of opinion that such
reconstruction has a reasonable chance of success.
(13) The Liquidator may, at any time, be removed by the Registrar and he
shall on such removal be bound to hand over all the property and documents
relating to the society in liquidation to such person or persons as the Registrar
(ii) An appeal against the order of the Liquidator under clauses (a),
(b), , (i), (f), (l), (m) and (n) of Section 105 shall lie to the Registrar.
(15) The Liquidator shall keep such books and accounts as may from time to
time be required by the Registrar.
(16) At the conclusion of the liquidation proceedings, a general meeting of
the members of the society shall be called. At such meeting, the Liquidator shall
summarise his proceedings, point out causes of the failure of the society, and
report what sum, if any, remains in his possession after meeting all the liabilities
of the society as determined under the rules and suggest how the surplus, if
any, should be utilised.
Rule No 92. Interest on amounts due from a society under liquidation
(1) When an order directing a society to be wound up is issued under Section 102
Liquidator is appointed, the officers of the society which is wound up shall, within
fifteen days of the publication of the order in the Official Gazette, send by registered
post or railway parcel, the records and books of the society to the Assistant Registrar
or Deputy Registrar concerned or hand over the same to the departmental local auditor
(2) As soon as may be after the affairs of a society for which a Liquidator has
been appointed have been wound up and an order cancelling the registration is made
under Section 21
, the Liquidator shall forward all the books and records of the
wound-up society, and all his own papers and proceedings, by railway parcel to the
Assistant Registrar or the Deputy Registrar concerned together with an account of his
expenses, showing how the balance has been disposed of, and attaching the receipt
of the person to whom it was handed over.
(3) All the books and records of a society, whose registration has been
cancelled, and the proceedings of liquidation, shall be destroyed by the Assistant
Registrar or the Deputy Registrar, as the case may be, after the expiry of two years
from the date of the order cancelling the registration of the society.