Section 48(1) in The M.P. Swayatta Sahakarita Adhiniyam, 1999
(1)The deficit, if any arising out of the operation of the business of a co-operative during any given financial year, shall be fully settled by debiting a part or whole of the deficit to the deficit cover fund, if any, or as charge, among its members :Provided that nothing in this sub-section shall preclude a co-operative from also proceeding against its directors or staff for recovery of amounts contributing to the deficit, where such deficit is the result of deviation from the approved plan or budget, and where such deviation does not receive the approval of the general body, or is the result of gross negligence or mismanagement :Provided further that where such amounts are recovered, the general body may resolve to credit a part or whole amount to the deficit cover fund or to the account of each member in proportion to the deficit charge levied on him.
