Section 41 in The Bihar Co-operative Societies Act, 1935
41. [ Dissolution of Managing Committee. [Substituted by (Amendment) Act 10 of 2002.]
(1)In the opinion of Registrar, the Managing Committee of any registered society, in which the economic interest of the Government is apparently clear, is mismanaging the affairs of the registered society or is persistently making default or is negligent in the performance of the duties imposed on it by this Act, the Rules or the bye laws, he may, after giving opportunity to the managing committee to state its objection if any and after obtaining opinion within twenty one days from the chief executive of the affiliating Federation/ Society, by order in writing' suspend the Managing Committee for a period not exceeding six months. During the period of suspension the Managing Committee of the registered society shall there upon cease to function. Registrar shall appoint, any Government Servant a special officer to conduct the affairs of the society and shall fix his duties and liabilities.Provided that the suspended managing committee, if not reinstated earlier shall resume functioning immediately after six months. The "period under suspension shall count towards its term."(2)From the date of reinstatement, a maximum period of six months shall be the period of observation of the working of Managing Committee. If desired improvement in management is not seen, suspension proceeding may be converted into a supersession proceeding and, adopting a procedure similar to that prescribed in sub-section (1) for its, suspension, the Managing Committee may be superseded for a period not exceeding six months and it may be ordered that all or any of its members shall be disqualified from being elected to the Managing Committee for the period specified in the order not exceeding three years.Provided that if within six months from the date of reinstatement of the committee the suspension proceeding is not converted into supersession proceeding then that proceeding will be barred by limitation :Provided further that the Registrar, in special circumstances and for constitution of Managing Committee by election, may further extend the period of supersession by a maximum period of three months. He may constitute a committee of three persons for managing the affairs of the society in place of Administrator, in such committee the powers of Managing Committee shall remain vested.The Registrar shall record every order passed under this section and inform the concerned society by registered post.](3)When a Managing Committee is [superseded] [Words 'dissolved' and 'Sub-section (1)' substituted by words 'susperseded' and 'subsection (2)' by (Amendment) Act 10 of 2002.] under [sub-section (2)] [Words 'dissolved' and 'Sub-section (1)' substituted by words 'susperseded' and 'subsection (2)' by (Amendment) Act 10 of 2002.], the Registrar shall appoint an Administrator on such remuneration, if any, as he may fix, to carry on the business of the society, and the Administrator, shall subject to any direction issued by the Registrar from time to time, exercise all the powers and perform all the duties which may under this Act, the rules and the bye-laws, be exercised or performed by the Managing Committee or any officer of the registered society:Provided that the Registrar shall have the power to change the Administrator during the period of dissolution.(4)The Registrar shall, before the expiry of the period of [supersession] [Words 'dissolution' and 'sub-section (1)' substituted by words 'supersession' and 'subsection (2)' by (Amendment) Act 10 of 2002.] under [sub-section (2)] [Words 'dissolution' and 'sub-section (1)' substituted by words 'supersession' and 'subsection (2)' by (Amendment) Act 10 of 2002.], require the Administrator to take necessary action for the constitution of the new Managing Committee and the Administrator shall forthwith hand over the management to the new Managing Committee constituted in accordance with the provisions of the Act and the Rules.(5)The Registrar may dissolve the Managing Committee of a registered society in case where-(a)majority of the members,and elected office-bearers of the Managing Committee of a registered society resign from their respective membership or office; or,(b)half the total number of seatsand shall appoint Administrator for the better management of the registered society:Provided that if during the period of dissolution of the Managing Committee, the Registrar is satisfied that the affairs of a registered society have sufficiently improved and it is desirable to restore the management to a newly elected Managing Committee, he may by order direct that the Administrator shall take steps for the constitution of a new Managing Committee and on such Committee having been constituted in accordance with the provision of this Act and the Rules, the Administrator shall hand over the management to such newly constituted Managing Committee forthwith.(6)An appeal shall lie from an order of the Registrar under sub-section (1) [& sub section (2)] [Substituted for words 'three' and sub-section (2) added by (Amendment) Act 10 of 2002.] to the State Government on application made by any member of the Managing Committee within [one] [Substituted for words 'three' and sub-section (2) added by (Amendment) Act 10 of 2002.] month from the date of communication of the order to the registered society concerned. The order of the State Government on appeal, and subject to the result of such appeal, if any, the order of the Registrar shall be final.(7)The Registrar may issue such direction to the Administrator as to his powers and duties and the affairs of registered society as the Registrar deems desirable and the Administrator may apply to the Registrar at any time for instruction as to the manner in which the Administrator shall conduct the management of the registered society.(8)Nothing in this section shall be deemed to effect the powers of Registrar to order the winding up of a registered society under section 42 or to cancel the registration of the registered society under sub-section (8) of Section 44.
