Section 88 in The Tamil Nadu Co-Operative Societies Act, 1983
88. Supersession of board.
- [(1) Where the board of any registered society,-(i)is of persistent default in managing the affairs of the society in accordance with the provisions of this Act, the rules or the by-laws; or(ii)is of negligence in the performance of its duties; or(iii)has committed any act prejudicial to the interests of the society or its members; or(iv)there is stalemate in the constitution or functions of the board; the Registrar may, after giving the board of the registered society an opportunity of making its representations, by order in writing, supersede the board and appoint a Government servant or an employee of any body corporate owned or controlled by the Government (hereinafter referred to as the administrator) to manage the affairs of the society for a specified period not exceeding six months:Provided that an order under this sub-section shall be passed within a period of two months from the date of issue of notice of supersession:Provided further that the board of any such registered society shall not be superseded where there is no Government shareholding or loan or financial assistance or any guarantee by the Government:Provided also that in the case of a registered society carrying on business of banking the provisions of the Banking Regulation Act, 1949 shall also apply:Provided also that in the case of a registered society carrying on business of banking, the provisions of this sub-section shall have the effect as if for the words 'six months', the words 'one year' had been substituted.] [Substituted by Tamil Nadu Act No. 4 of 2013, dated 23.2.2013, w.e.f. 23.2.2013.](2)Where [an administrator] [Substituted for 'a Special Officer' by Tamil Nadu Act No. 4 of 2013, dated 23.2.2013, w.e.f. 23.2.2013.] is appointed, the Registrar may appoint an advisory board consisting of not more than five persons from among the members of that society who are not disqualified for being elected or nominated to the board of that society to advise the [administrator] [Substituted for 'Special Officer' by Tamil Nadu Act No. 4 of 2013, dated 23.2.2013, w.e.f. 23.2.2013.] in such matters as may be specified by him. The Registrar, may at any time, withdraw any person or persons so appointed under this sub-section and fill up the vacancy or vacancies by fresh appointment.(3)The [administrator] [Substituted for 'Special Officer' by Tamil Nadu Act No. 4 of 2013, dated 23.2.2013, w.e.f. 23.2.2013.] appointed under sub-section (1) shall, subject to the control of the Registrar and to such directions as he may, from time to time, give, have powers to exercise all or any of the functions of the board or of any officer of the society and to take such action as may be required in the interest of the society.(4)The Registrar may fix the remuneration payable to the [administrator] [Substituted for 'Special Officer' by Tamil Nadu Act No. 4 of 2013, dated 23.2.2013, 23.2.2013.] appointed under sub-section (1). The amount of remuneration so fixed and such other expenditure incidental to the management of the society during the period of supersession as may be approved by the Registrar shall be payable from the funds of the society.(5)The [administrator] [Substituted for 'Special Officer' by Tamil Nadu Act No. 4 of 2013, dated 23.2.2013, 23.2.2013.] appointed under sub-section (1) shall arrange for the constitution of a new board in accordance with the provisions of this Act, the Rules and the bye-laws so that the new board may be constituted and the members thereof come into office at the expiry of the period of his appointment.(6)Before passing an order under sub-section (1)(a)(i) in respect of any registered society, the Registrar shall consult, in the manner prescribed, the board of the financing bank to which the society is indebted:Provided that if the financing bank does not communicate its comments within fifteen days of the receipt of a communication from the Registrar in this regard, the board of the financing bank shall be deemed to have no comments to make on the order proposed to be passed under sub-section (1).(7)Nothing contained in this section shall be deemed to affect the power of the Registrar to order the winding-up of the society under section 137.(8)An order under sub-section (1) shall take effect from the date specified therein unless stayed by an order of the appellate authority. Where an order under sub-section (1) is reversed on appeal, the [administrator] [Substituted for 'Special Officer' by Tamil Nadu Act No. 4 of 2013, dated 23.2.2013, 23.2.2013.] appointed under sub-section (1) shall forthwith handover the management of the society to the board.(9)Any paid officer or servant of the registered society against whom there is a prima facie evidence that he was also responsible for the acts leading to the supersession of the board under this section, shall, without prejudice to any other action that may be taken against him under this Act or any other law, be liable to disciplinary action including suspension, pending enquiry into grave charges.
