Power of liquidator

§74

Summary

(1) Subject to any rules made in this behalf the whole of the assets of a co-operative society in respect of which an order for winding up has been passed, shall vest in the liquidator appointed under section 73 from the date on which the order takes effect and the liquidator shall have power to realize such assets by sale or otherwise. (2) Such liquidator shall also have power, subject to the control of the Registrar- (a) to institute and defend suits and other legal proceedings on behalf of the co-operative society by the name of his office ; (b) to determine from time to time the contribution (including debts and other dues) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives or deceased members or by any officer or past officer, to the assets of the society, after giving to the person or persons concerned an opportunity to answer the claim ; (c) to fix the time, which will not be less than thirty days in any case, within which the creditors shall prove their debts and claims or be included for the benefit of any distribution made before their debts or claims are proved, and to give notice of such time in the manner prescribed ; (d) to investigate all claims against the co-operative society and subject to the provisions of this Act, to decide questions of priority, arising between claimants ; (e) to pay claims against the co-operative society including interest up to the date of winding up according to their respective priorities, if any, in full or rate ably, as the assets of the society may permit, the surplus, if any remaining after payment of the claims being applied in payment of interest from the date of such order of winding up at a rate fixed by him but not exceeding the contract rate in any case ; (f) to determine by what person and in what proportion the costs of the winding up are to be borne ; (g) to give such directions in regard to the collection and distribution of the assets of the society as may appear to him to be necessary for winding up the affairs of the society ; (h) to get disputes covered by Chapter IX referred to arbitration and to represent the society in any arbitration proceeding to which the society is a party ; (i) to carry on the business of the society so far as may be necessary for the beneficial winding up of the same ; (j) to make any compromise or arrangement with creditors or persons claiming to be creditors or having or alleging to have any claim, present or future, whereby the society may be rendered liable ; and (k) to compromise all calls or liabilities to calls and debts and liabilities capable of resulting in debts, and all claims present or future, certain or contingent, subsisting or supposed to subsist between the society and a contributory or alleged contributory or other debtor or person apprehending liability of the co-operative society and all questions in any way relating to or affecting the assets or the winding up of the society, on such terms as may be agreed and take any security for the discharge of any such call, liability, debt or claim and give a complete discharge in respect thereof. (3) When the affairs of a co-operative society have been wound up, the liquidator shall make a report to Registrar and deposit the records of the society in such place as the Registrar may direct. (4) Any sum ordered under sub-section (2) to be recovered as contribution (including debts and other dues) to the assets of the society or as costs of winding up may be recovered in the same manner as arrears of land revenue on requisition being made in this behalf to the Collector by the Registrar on a request by the liquidator for recovery. (5) Any debt or claim not proved within the time fixed for it under clause (c) of sub-section (2) shall, subject to the power of the liquidator to allow it to be proved beyond that time in case of sufficient cause being shown, be deemed to be discharged.

(1) Subject to any rules made in this behalf the whole of the assets of a co-operative society in respect of which an order for winding up has been passed, shall vest in the liquidator appointed under section 73 from the date on which the order takes effect and the liquidator shall have power to realize such assets by sale or otherwise. (2) Such liquidator shall also have power, subject to the control of the Registrar- (a) to institute and defend suits and other legal proceedings on behalf of the co-operative society by the name of his office ; (b) to determine from time to time the contribution (including debts and other dues) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives or deceased members or by any officer or past officer, to the assets of the society, after giving to the person or persons concerned an opportunity to answer the claim ; (c) to fix the time, which will not be less than thirty days in any case, within which the creditors shall prove their debts and claims or be included for the benefit of any distribution made before their debts or claims are proved, and to give notice of such time in the manner prescribed ; (d) to investigate all claims against the co-operative society and subject to the provisions of this Act, to decide questions of priority, arising between claimants ; (e) to pay claims against the co-operative society including interest up to the date of winding up according to their respective priorities, if any, in full or rate ably, as the assets of the society may permit, the surplus, if any remaining after payment of the claims being applied in payment of interest from the date of such order of winding up at a rate fixed by him but not exceeding the contract rate in any case ; (f) to determine by what person and in what proportion the costs of the winding up are to be borne ; (g) to give such directions in regard to the collection and distribution of the assets of the society as may appear to him to be necessary for winding up the affairs of the society ; (h) to get disputes covered by Chapter IX referred to arbitration and to represent the society in any arbitration proceeding to which the society is a party ; (i) to carry on the business of the society so far as may be necessary for the beneficial winding up of the same ; (j) to make any compromise or arrangement with creditors or persons claiming to be creditors or having or alleging to have any claim, present or future, whereby the society may be rendered liable ; and (k) to compromise all calls or liabilities to calls and debts and liabilities capable of resulting in debts, and all claims present or future, certain or contingent, subsisting or supposed to subsist between the society and a contributory or alleged contributory or other debtor or person apprehending liability of the co-operative society and all questions in any way relating to or affecting the assets or the winding up of the society, on such terms as may be agreed and take any security for the discharge of any such call, liability, debt or claim and give a complete discharge in respect thereof. (3) When the affairs of a co-operative society have been wound up, the liquidator shall make a report to Registrar and deposit the records of the society in such place as the Registrar may direct. (4) Any sum ordered under sub-section (2) to be recovered as contribution (including debts and other dues) to the assets of the society or as costs of winding up may be recovered in the same manner as arrears of land revenue on requisition being made in this behalf to the Collector by the Registrar on a request by the liquidator for recovery. (5) Any debt or claim not proved within the time fixed for it under clause (c) of sub-section (2) shall, subject to the power of the liquidator to allow it to be proved beyond that time in case of sufficient cause being shown, be deemed to be discharged.

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