Section 68 in The Assam Co-operative Societies Rules, 1953
68. Writing off of bad debts.
(1)Best proceeding to take action to write off any asset considered bad, is that all possible steps shall be taken by the managing committee including amicable persuasion, action under Chapter X or Section 70 of the Act.(2)Any debt considered bad shall, if so approved by the Registrar, be written off by the annual meeting of the general assembly, in the following order against-(i)the bad debt fund or any fund created out of profits as provision for bad debts;(ii)any other fund created out of profits but not earmarked for any specified purpose;(iii)the reserve fund constituted under Rules 56 and 59.(3)When the society is affiliated to a financing bank and is indebted to it the Registrar shall consult the financing bank before sanctioning the writing off of any debt.
