Mode of communication of an interim order under Section 102:-

An interim order under clause (a) or sub-clause (iv) of clause (c) or sub-section (1) of Section 102 shall call upon the society in respect of which the order is made to submit its explanation to the Registrar within one month from the date of issue of such order and shall be communicated by registered post (with acknowledgement due) to the society by the Registrar.

Cost of hearing appeal:-

No appeal from a member under Section 104 shall be entertained unless it is accompanied by Rs. 25 or such higher amount not exceeding Rs. 500 as may be directed by the appellate authority as security for the costs of hearing the appeal.

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 :—

The appointment of the Liquidator shall be notified by the Registrar in the Official Gazette.

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.

Where the interim order is vacated, the Liquidator shall take action in accordance with the provisions of sub-section (6) of Section 103.

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.

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 and 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.

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.

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.

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

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 the Liquidator.

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.

The Liquidator shall have power to call meetings of members of the society in liquidation.

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.

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 may direct.

The Liquidator shall not exercise the powers under clauses (c), (d), (e), (f). (g), (h) and (k) of Section 105 without the prior approval of the Registrar.

An appeal against the order of the Liquidator under clauses (a), (b), (i), (j), (l), (m) and (n) of Section 105 shall lie to the Registrar.

The Liquidator shall keep such books and accounts as may from time to time be required by the Registrar.

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 summaries 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.

Disposal of surplus assets:-

Where the Registrar has to divide the surplus assets amongst members of the society which has been wound up, he shall divide them in proportion to the share capital held by each of such members or in any other suitable manner sanctioned by the State Government in special cases.

Interest on amounts due from a society under liquidation: -

The creditor of a society, which is being wound up, may apply to the Liquidator for payment of interest on any debt due from the society up to the date of the Registrars order for winding up. The rate at which interest shall be paid shall be in the case of the Maharashtra State Co-operative Bank or a Co-operative Bank permitted by the Registrar to finance societies, the contract rate and in any other case the rate which may be fixed by the Registrar which shall not exceed the contract rate-

Provided that, if any surplus assets remain after all the liabilities, including liabilities on shares, have been paid off. Further interest on such debts at a rate to be fixed by the Registrar but not exceeding the contract rate may be allowed to the creditors from the date mentioned above up to the date of the repayment of the principal.

Disposal of records of society whose registration is cancelled:-

When an order directing a society to be wound up is issued under Section 102 and no 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.

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.

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.