Section 16 in Jammu and Kashmir Co-Operative Societies Act, 1989
16. Re-organisation of Societies.
(1)Where the Registrar is satisfied thAt it is essential in the public interest, or in the interest of the Co-operative movement or for the purpose of securing proper management of any Society, that two or more Societies should be amalgamated or any Society should be divided to form two or more Societies or should be re-organised, then notwithstanding anything contained in section 3 but subject to the provisions of this section, the Registrar may after consulting the federal body of particular class of Societies, Jammu and Kashmir Co-operative Union/ the financing agency which may have advanced any loan to the Societies or the Society concerned, provide for the amalgamation, division or re-organisation of those Societies into a single Society or into Societies with such constitution, property, rights, interests and authorities and such liabilities, duties and obligations, as may be specified in the order:Provided that every such order made by the Registrar under this section in respect of a non-agricultural Society shall be issued after obtaining prior approval of the Government and every such order shall be laid, as soon as may be, after it is made, before each House of the State Legislature:Provided further that notwithstanding anything contained in section 3 or any order made thereunder, the powers of the Registrar under this section shall not be exercised by any person other than the Registrar himself.(2)No order shall be made under this section, unless(a)a copy of the proposed order has been sent in draft to the Society or each of Societies concerned;(b)the Registrar has considered and made such modification in the draft order as may seem to him desirable, in the light of any suggestion and objection which may be received by him within such period (not being less than two months from the date on which the copy of the order as aforesaid was received by the Society) as the Registrar may fix in that behalf, either from the Society or from any member or class of members thereof or from any creditor or class of creditors.(3)The order referred to in sub-section (1) may contain such incidental, consequential or supplemental provisions as may in the opinion of the Registrar, be necessary to give effect to the amalgamation, the division, or re-organisation. On the issue of an order under sub-section (1), the provisions of such sub-section (7) of section 14 shall apply to the Societies so amalgamated, divided or re-organised as if they were amalgamated or re-organised under that section.(4)Notwithstanding anything contained in this section or in any other provision of this Act, no action in pursuance of sub-section (1) or sub-section (2) of section 14 or sub-section (1) or sub-section (2) of this section and no scheme of compromise or arrangement or re-construction or amalgamation of a Co-operative Bank, shall be taken or given effect to without the previous sanction in writing of the Reserve Bank.(5)Where an order of moratorium has been made by the Central Government under sub-section (2) of section 45 of the Banking Regulation Act, 1949, in respect of a Co-operative Bank, the Registrar with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme(i)for the reconstruction of the Co-operative Bank, or(ii)for the amalgamation of the Co-operative Bank with any other Co-operative Bank hereinafter referred to as "the Transferee Bank".(6)Where a Co-operative Bank being an insured Bank within the meaning of the Deposit Insurance Corporation Act, 1961 is amalgamated, or in respect of which a scheme of compromise or arrangement or of reconstruction has been sanctioned and the Deposit Insurance Corporation has been liable to pay to the depositors of the insured Bank under sub-section (2) of section 16 of that Act, the Bank with which such insured Bank is amalgamated or the Co-operative Bank formed after such amalgamation, or, as the case may be, insured Bank or the transferee Bank shall, be under an obligation to repay the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance Corporation Act, 1961.
