Section 32(1) in Jammu and Kashmir Co-operative Societies Rules, 2001
(1)On the winding up of a Co-operative Society, the reserve fund together with other funds constituted by the society in accordance with its bye-laws, shall be applied by the liquidator to the discharge of such liabilities of the society as may remain undischarged out of the assets of the society in the following order, namely:-(a)the debts of the society;(b)the paid up share capitals; and(c)the dividend upon paid up share capital at the rates not exceeding six percent for any period or periods for which dividend has not been paid or such dividend to the maximum rates for any period for which dividend at a rate lower than the maximum specified has been paid. No dividend shall, however, be paid on share capital if the bye-laws of the society do not provide for payment of dividend.
