Section 32(2) in Jammu and Kashmir Co-operative Societies Rules, 2001
(2)Any surplus funds remaining after the payment in sub-rule (1) shall be utilized in the following manner and object to the following conditions, namely:-(a)in the case of a Co-operative Society other than a financing Bank:-(i)the surplus funds shall be applied to such object of public utility as may be selected by the General Body of the dissolved society at a meeting and approved by the Registrar. It shall be competent for the liquidator to constitute a trust to carry out such object and to require the General Body to select a trustee or trustees from among the ex-members or other persons. If the General Body does not select a trustee or trustees or if the selection of a trustee or trustees by the General Body is not acceptable to the liquidator, the liquidator may himself appoint a trustee or trustees. The trustee or trustees, as the case may be, shall execute a deed in such form as the Registrar may from time to time specify. A trust created under this sub-rule/clause shall be governed by the provisions of the law relating to the public charitable trusts, for the time being in force;(ii)if within thirty days after the issue of notice by the liquidator appointed to wind up the affairs of the society the General Body fails to make any selection that is approved by the Registrar, the Registrar may place the surplus funds on deposit or otherwise with a financing bank working in the area in which the society which is being wound up carried on its operations, until a new Co-operative Society with similar object is registered in such area, in which case the funds shall be carried to the reserve funds of such society. If in the opinion of the Registrar, there is no prospect of a new society being formed in such area within a reasonable time, the Registrar who shall assign the amount to the bad debt reserve or the reserve fund of the financing bank working in such area;(b)in the case of financing bank the surplus funds shall be assigned by the Registrar to the reserve fund or funds of any other financing banks to which the societies working in the area in which the financing bank which is being wound up carried in its operations, are affiliated. If there is no financing bank working in such area, the Registrar shall invest the amount in the State Co-operative Bank until a new financing bank, is formed in such area, in which case the funds shall be credited to the reserve fund of such financing bank.
