Section 14A in Haryana Co-operative Societies Act, 1984
14A. [ Special provision in respect of sick societies. [Section 14A added vide Haryana Act No. 1 of 1999.]
(1)Notwithstanding anything contained in this Act or the rules made thereunder or the bye-laws of the societies concerned or in any other law for the time being in force, where, in the opinion of the Registrar, a Co-operative Society, in which majority of the shares are held by the Government, is or has become sick, and that there is no possibility to rehabilitate the same, the Registrar shall, after consulting the Government and the financing institution, if any, to which such Co-operative Society is indebted, call upon the Committee concerned by notice in writing containing such particulars as may be prescribed in the notice to transfer its assets and liabilities to any other society or a company or a firm or a body whether incorporated or not on such terms and conditions as may be formulated in the manner prescribed and on such transfer, the said sick society, shall stand dissolved.(2)If within the time specified in the notice referred to in sub-section (1), the said sick society fails to comply with the direction of the Registrar, he shall after giving an opportunity in the manner prescribed to the committee of such a sick society and the creditors thereof to make their representation, if any, by order notified in the official Gazette, take such action as he deems fit in the matter, including the issue of direction to the society to transfer its assets and liabilities in the manner referred to in sub-section (1) :Provided that no order under sub-section (2) shall be passed by the Registrar until -(a)all the suggestions/objections made by the creditors/members have been fully considered; and(b)all the claims submitted by the creditors including National Co- operative Development Corporation have been fully repaid.(3)Government shall be competent to make rules and to give such directions as it deems fit to the Registrar, for the purposes of this section.Explanation. - (1) "Sick society" means a Co-operative society which at the end of any one of the preceding three financial years, has accumulated losses equal to or exceeding its entire net worth -(i)"net worth" means the same total of the paid up capital and free reserves;(ii)"free reserves" means all reserves credited out of the profit and loss account but does not include reserves credited out of re-evalution of assets and write back of depreciation provisions.(2)"transfer" means a transfer of assets and liabilities of sick society by means of sale or lease.]
