Section 59 in The M.P. Swayatta Sahakarita Adhiniyam, 1999
59. Dissolution of co-operative by Registrar.
(1)Where the Registrar has reason to believe that a co-operative-(a)has not commenced business within two years after the date shown on its certificate of registration; or(b)has not carried on business for two consecutive years;he shall send to the co-operative a letter by registered post, inquiring whether the co-operative is carrying on business.(2)Where the Registrar-(i)does not, within thirty days of the date of sending a letter under sub-section (1), receive a reply to the letter, he shall within fifteen days after the expiry of said thirty days, send to the co-operative a letter stating that:-(a)a letter was sent to the co-operative under sub-section (1);(b)no reply to the letter has been received by him within thirty days from the date of sending it;(ii)receives a reply from the co-operative that it is not carrying on business; or(iii)docs not, within thirty days from the date he sent a letter under this sub-section receive a reply to that letter;he shall publish (he notice in the newspaper and send to the co-operative a notice that, at the expiry of thirty days from the date of the notice, the co-operative shall, unless cause is shown to the contrary, be dissolved and have its name deleted from the register of co-operatives.(3)On the expiry of thirty days from the date of issue of the letter under sub-section (2), the Registrar shall, unless cause to the contrary is previously shown by the co-operative :-(a)where he is satisfied that the co-operative has no assets or liabilities, dissolve the co-operative, delete its name from the register of co-operatives and issue a certificate of dissolution of such co-operative; or(b)appoint a liquidator under Section 60 to wind up the affairs of the co-operative.(4)Where a co-operative fails to file returns and furnish information, as required by Section 52, even after a lapse of two hundred and forty days from the close of the financial year, the Registrar shall send a requisition under sub-section (2) of Section 32 to the board to call a special general meeting for the purpose of considering the annual returns to be filed with, and the information to be furnished to the Registrar.(5)Where the board fails to call a special general meeting within the period specified in sub-section (2) of Section 32, the Registrar may at the cost of the co-operative call the special general meeting notwithstanding anything contained in this Act :-(a)to review the affairs of the co-operative; and(b)to ascertain whether the general body desires to continue the co-operative.(6)Where :(a)a quorum of members is not present at a special general meeting called under sub-section (4) or sub-section (5); or(b)the general body fails to pass a resolution to the effect that :-(i)the co-operative is to carry on business;(ii)the board shall present, within sixty days from the date of the special general meeting, to the general body the annual returns to be filed with, and the information to be furnished, to the Registrar; and(iii)the co-operative shall file the returns with, and furnish the information to the Registrar within ninety days from the date of the special general meeting; or(c)the co-operative fails to file the returns with, and furnish the information to the Registrar within ninety days from the date of the special general meeting;the Registrar shall-(i)if he is satisfied that the co-operative has no assets or liabilities, dissolve the co-operative, delete its name from the register of co-operatives and issue a certificate of dissolution of such co-operative; or(ii)appoint a liquidator under Section 60 to wind up the affairs of the co-operative.
