Section 111 in West Bengal Co-operative Societies Act, 2006
111. Powers and obligation of liquidator.
(1)On the appointment of a liquidator under section 110, all assets, properties, effects and actionable claims of the Co-operative society or to which the Co-operative society is entitled, shall vest in the liquidator subject to general superintendence and control of the Registrar. The liquidator shall immediately take all necessary steps to take possession of, and to prevent any loss or deterioration to, all assets, properties, effects and actionable claims of the Co-operative society or to which the Co-operative society is entitled.(2)(a)Immediately after the date on which the order directing the dissolution of the Co-operative society takes effect, liquidator shall publish a notice in such Form as may be prescribed requiring all claims against the Co-operative society to be submitted to him within one month of the publication of the notice.(b)Publication of notice shall be made by hanging it in the offices of the Co-operative society, the concerned Gram Panchayat, municipality, Panchayat Samity and Zilla Parishad and in the local daily or weekly newspaper if there be any. In case of Co-operative society having an assets of more than ten lakh rupees, publication of the notice shall, in addition to the above manner, be made in one leading Bengali daily newspaper.(3)Notwithstanding anything contained elsewhere in this Act or in the by-laws of the Co-operative society, the services of all employees of the Co-operative society, which has been ordered to be dissolved, shall be deemed to have been terminated with effect from the date on which the order directing dissolution of the Co-operative society takes effect :Provided that liquidator may, subject to the approval of the Registrar, re-appoint any such employees in connection with the work of liquidation on such terms and conditions and for such period as he deems fit and such re-appointed employee shall be paid his remuneration out of the fund of the Co-operative society.(4)(a)The liquidator shall open a savings bank account with the bank where the Co-operative society had its account or with any other bank as the Registrar may approve and authorise in the name of the "Liquidator of ......... the Co-operative society". No money shall be invested in any other manner except by way of fixed deposit with any Co-operative society or nationalised bank without prior approval of the Registrar.(b)All moneys received in the proceedings of dissolution of the Co-operative society shall be deposited into such account within the next working day following the date of receipt of moneys.(c)All payments over one hundred rupees out of the aforesaid account shall be made by the liquidator by crossed or account payee cheque. The receipts and payments shall be entered in the cash book which shall be signed by the liquidator on the date of receipts or payments.(5)(a)The liquidator shall maintain separate list of members, debtors and creditors having claims against the Co-operative society. Debts due to the Co-operative society by a member including a past member or the estates, nominee, heirs or legal representatives of a deceased person and its employees shall be determined by the liquidator.(b)The liquidator may at any time call meetings of the members or the creditors or joint meetings of the members and creditors and such meetings may be called, held and conducted at such time and place and in such manner as he thinks fit.(6)For recovery of dues of the Co-operative society, the liquidator shall immediately issue notice to the debtors for payment of the debt with interest at usual rates. If such debts are not repaid within six months, the liquidator shall apply to the certificate officer for recovery under the Bengal Public Demand Recovery Act, 1913 (Bengal Act No. 3 of 1913).(7)For disposal of movable and immovable properties of the Co-operative society where total asset is worth two lakh rupees and above, the Registrar may constitute a disposal committee consisting of the liquidator, an officer of the financing bank, an officer of federal Co-operative society and a Government officer authorised by him. Absence of any of the members of the disposal committee shall not invalidate the proceedings of the disposal of properties.(8)A notice shall be issued by the liquidator within three months from the date when the order directing dissolution takes effect, asking the creditors of the Co-operative society to submit claims against it with proper and relevant documents within two months of the date of notice. He shall prepare a final list of creditors with details of claims according to priority as mentioned in section 112.(9)Movable properties and actionable claims of the Co-operative society shall be sold to the highest bidder in public auction or to the person who has quoted highest price. For disposal of the immovable properties. the liquidator shall collect the prevailing market rate from the office of the Sub-Registrar of the area and after fixing a minimum price, he shall invite quotations and sell such properties to the person who has quoted highest price. In both the cases of movable and immovable properties, the disposal committee shall select the person who has offered the highest price :Provided that no liquidator or his relatives shall purchase directly or indirectly any part of the assets of the Co-operative society.(10)The liquidator shall submit to the Registrar at least once in every six months period after his appointment or more often as the Registrar may require financial statement of the Co-operative society.(11)The Director of Co-operative Audit shall cause accounts prepared by the liquidator to be audited and for the purpose of such audit, the liquidator shall furnish the audit officer with such documents, voucher and information as may be necessary. Audit fee shall be paid at reduced rate. The Director of Co-operative Audit may. in his discretion, remit such fee in absence of adequate fund of the Co-operative society.(12)If, after adequate steps taken by the liquidator, any debt to the Co-operative society is found not realizable, the Registrar oh recommendation of the liquidator may declare the debt as bad debt and non-realisable. Such debt shall be deleted from the assets of the Co-operative society.(13)The liquidator shall have power to give directions to any present or past office bearer, member, employee or any person possessing books, documents and assets of the Co-operative society for returning the same to him within the period to be fixed by him. He may, for the purpose of dissolution, interrogate any of the above mentioned persons or any person having transaction with the Co-operative society.(14)The liquidator shall, subject to general control and direction of the Registrar so far as it necessary for dissolution of the Co-operative society and for carrying on its affairs have the following powers or such powers as may be prescribed :(a)to do all acts and execute all documents in the name and on behalf of the Co-operative society;(b)to institute and defend suits and other legal proceedings;(c)to borrow money, if required, on the security of the assets of the Co-operative society;(d)to retain at the expenses of the Co-operative society any lawyer, accountant, engineer, appraiser and other professional advisor whose services are required;(e)to carry on business of the Co-operative society as required for liquidation;(f)to calculate the cost of liquidation and determine the persons by whom and proportion by which, they are to be borne;(g)to make compromise or arrangement with any person between whom and the Co-operative society there exists a dispute and to refer such dispute to arbitration;(h)to determine from time to time the contribution to be made to the assets of the Co-operative society by members including past members or estates, nominees, heirs or legal representatives of the deceased members or by the past or present officers of the Co-operative society or by the estate, nominees, heirs and legal representatives of the deceased officer;(i)to pay claims against the Co-operative society including interest up to the date of the order for its dissolution according to the priority in full or rateably as the assets of the Co-operative society permit;(j)to give such directions as may be appear to him to be necessary in regard to realization, or distribution of assets of the Co-operative society;(k)to take with the prior approval of the Registrar such action as may be necessary for such reconstruction, if there is any reason to believe that the Co-operative society can be reconstructed.(15)In the event of an order of dissolution being set aside on appeal or a subsequent order of the Registrar for cancellation of the order of dissolution, the liquidator shall deliver possession of all estates, properties, effects, actionable claims, books, records and other documents to the appropriate officers of the Co-operative society :Provided that anything done, any action taken or any proceeding initiated by the liquidator shall be binding on the Co-operative society and such actions or proceeding shall be pursued and continued by the officers of the Co-operative society :
