Section 81 in Himachal Pradesh Co-Operative Societies Rules, 1971
81. Manner of recalling of loan.
(1)Notwithstanding anything contained in the agreement entered into with the borrowing member, the committee of a society shall be entitled, after giving a week's notice to such members, to recall the entire loan amount immediately when it is satisfied that the loan given has not been applied for the purpose for which given or there has been breach of any of the conditions for the grant of such a loan.(2)Nothing in this rule shall be deemed to preclude the Registrar from directing the society to recall a loan of his own motion, when it is brought to his notice that the loan given by the society has been misapplied, or conditions thereof have not been followed.The Registrar may make in the matter such enquiries as he may deem necessary and after giving a show cause notice to the society with intimation thereof to the financing bank, issue necessary directions to the society. The directions issued by the Registrar in this respect shall be complied with by the society.If the managing committee of a society is satisfied that any member has not utilized the loan for the purpose for which it was advanced, it may recall the whole amount of loan notwithstanding any contract to the contrary, at any moment after giving a week's notice to the member. The rule further empowers the Registrar to direct the society to recall all loans from members, when he is satisfied that loans advanced by the society to recall all loans from members, when he is satisfied that loans advanced by the society have been misapplied by the members. The Registrar shall also intimate the financing Bank the direction so issued to the society.
