Special provision in respect of cooperative sugar mills

§125-A

Summary

[125-A]1 (1) (a) Notwithstanding anything to the contrary contained in any other provision of this Act or the rules made thereunder or the bye-laws of the societies concerned of in any other law for the time being in force, where a Co-operative Sugar Mill in which Majority of shares are held by the State Government, and the State Government is satisfied that neither the Sugar Mill is being run as sound business nor there is any chance of it being run as sound business, it may recommends the Registrar to transfer such Cooperative Sugar Mill to any other society, company, firm or body and on the receipt of the recommendation of the State Government, the Registrar shall after consulting the financing Bank or Financing Institution, if any, to which such sugar mill is indebted, call up the committee concerned by notice in writing containing such particulars as may be prescribed and within such time as may be specified in the notice to transfer its assets or its assets and liabilities in whole or part to any other society or a company or a firm or a body, whether incorporated or not, on such terms and conditions as may be formulated in the manner prescribed, and on such transfer the society formed for such sugar mill under this Act shall stand dissolved. (b) If, when the time specified in the notice referred to in clause (a), the society fails to comply with the direction of the Registrar, he shall after giving an opportunity in the manner prescribed, the committee of such society and the creations thereof to make their representation, if any, by order notified in the Gazette, take such action as he deems fit in the manner, including the issue of a direction to the society to transfer its assets or its assets and liabilities, in whole or in part in the manner referred to in clause (a). Provided that in the case of Mill Societies where the State Government's share capital is more than 50 per cent, it will not be mandatory for the registration to get a resolution passed from the general body of the society to act as per the provions in clause (a) and (b). (2) It shall be competent for the State Government to make rules and to give such directions as it may deem fit to the Registrar, for the purposes of this section Explanation- For the purposes of the section 'Company' means a company as defined in the Companies Act, 1956.

[125-A]1 (1) (a) Notwithstanding anything to the contrary contained in any other provision of this Act or the rules made thereunder or the bye-laws of the societies concerned of in any other law for the time being in force, where a Co-operative Sugar Mill in which Majority of shares are held by the State Government, and the State Government is satisfied that neither the Sugar Mill is being run as sound business nor there is any chance of it being run as sound business, it may recommends the Registrar to transfer such Cooperative Sugar Mill to any other society, company, firm or body and on the receipt of the recommendation of the State Government, the Registrar shall after consulting the financing Bank or Financing Institution, if any, to which such sugar mill is indebted, call up the committee concerned by notice in writing containing such particulars as may be prescribed and within such time as may be specified in the notice to transfer its assets or its assets and liabilities in whole or part to any other society or a company or a firm or a body, whether incorporated or not, on such terms and conditions as may be formulated in the manner prescribed, and on such transfer the society formed for such sugar mill under this Act shall stand dissolved. (b) If, when the time specified in the notice referred to in clause (a), the society fails to comply with the direction of the Registrar, he shall after giving an opportunity in the manner prescribed, the committee of such society and the creations thereof to make their representation, if any, by order notified in the Gazette, take such action as he deems fit in the manner, including the issue of a direction to the society to transfer its assets or its assets and liabilities, in whole or in part in the manner referred to in clause (a). Provided that in the case of Mill Societies where the State Government's share capital is more than 50 per cent, it will not be mandatory for the registration to get a resolution passed from the general body of the society to act as per the provions in clause (a) and (b). (2) It shall be competent for the State Government to make rules and to give such directions as it may deem fit to the Registrar, for the purposes of this section Explanation- For the purposes of the section 'Company' means a company as defined in the Companies Act, 1956.

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