Section 53 in The M.P. Co-Operative Societies Act, 1960
53. Supersession of committee.
(1)If, in the opinion of the Registrar, the committee of any society-(a)[x x x] [Omitted by M.P. Act 25 of 1988 [w.e.f. 28-6-1988].] is negligent in the performance of the duties imposed on it by or under this Act or bye-laws of the society or by any lawful order passed by the Registrar or is unwilling to perform such duties; or(b)commits acts which are prejudicial to the interests of the society or its members; or(c)[ violates the provisions of this Act or the rules made thereunder or bye-laws of the society or any order passed by the Registrar;] [Substituted by M.P. Act No. 25 of 1988 [w.e.f. 28-6-1988].]the Registrar may, by order in writing, remove the committee and appoint a person or persons to manage the affairs of the society for a specified period not exceeding two years in the first instance :[Provided that in case of a Co-operative Bank, the order of supersession shall not be passed without previous consultation with the Reserve Bank] [Inserted by M.P. Act No. 8 of 1970.] :[Provided further that if no communication containing the views of the Reserve Bank of India, on action proposed is received within forty-five days of the receipt by that Bank of the request soliciting consultation, it shall be presumed that the Reserve Bank of India agrees with the proposed action and the Registrar shall be free to pass such order as may be deemed fit:] [Inserted by M.P. Act No. 14 of 1976.][Provided also that in case of a [x x x] [Inserted by M.P. Act No. 28 of 1982 [w.e.f. 29-10-1982].] Co-operative Bank, if so required by the Reserve Bank in the public interest or for preventing the affairs of the [x x x] [Omitted by M.P. Act No. 25 of 1988 [w.e.f. 28-6-1988].] Co-operative Bank being conducted in a manner, detrimental to the interest of the depositors or for securing the proper management of a [x x x] [Omitted by M.P. Act No. 25 of 1988 [w.e.f. 28-6-1988].] Co-operative Bank, the Registrar shall pass an order for the supersession of its committee or managing body by whatever name called and for appointment of an Administrator therefor for such period or periods not exceeding 5 years in the aggregate, as may from time to time be specified by the Reserve Bank and on such appointment, the provisions of sub-sections (4), (5), (6) and (8) shall apply as if orders were passed under sub-section (1):][Provided also that if a non-official is appointed in the committee of a primary society, he shall be from amongst the members of that society, entitled for such representation and in case of Central or Apex society, if a person is appointed in the committee of such society, he shall be a member of one of its affiliated societies entitled for such representation.] [Inserted by M.P. Act No. 25 of 1988 [w.e.f. 28-6-1988].](2)[ No order under sub-section (1) shall be passed unless a list of allegations, documents and witnesses in support of charges leveled against it has been provided and the committee has been given a reasonable opportunity of showing cause against the proposed order and representation, if any, made by it, is considered] [Substituted by Section 10 of M.P. Act No. 20 of 1999 [w.e.f. 7.8.1999].],(3)The period specified in the order under sub-section (1) may, at the discretion of the Registrar, be extended, from time to time:Provided that no such order shall remain in force for more than three years in the aggregate.(4)[ The person or persons so appointed, shall subject to the control of the Registrar and to such instructions as he may, from time to time, give, have power to exercise all or any of the powers and to discharge all or any of the functions of the committee or of any officer of the society, and to take all such actions, as may be required in the interest of the society.] [Substituted by M.P. Act No. 25 of 1988 [w.e.f. 28-6-1988].](5)The Registrar may fix the remuneration payable to the person or persons so appointed. The amount of such remuneration and other costs, if any, incurred in the management of the society shall be payable from its funds.(6)The person or persons so appointed shall, [before] [Substituted by M.P. Act No. 25 of 1988 [w.e.f. 28-6-1938].] the expiry of the period of his or their appointment, arrange the constitution of a new committee in accordance with the bye-laws of the society.(7)Before taking action under sub-section (1) in respect of a financing Bank or in respect of a society indebted to a financing bank, the Registrar shall consult, in the former case, the Madhya Pradesh State Co-operative Bank Limited and, in the latter case, the financing bank concerned, regarding such action. [If the Madhya Pradesh State Co-operative Bank Limited or the financing bank, as the case may be, fails to communicate its views within forty five days of the receipt by such bank of the request soliciting consultation, it shall be presumed that the Madhya Pradesh State Co-operative Bank Limited, or the financing bank concerned, as the case may be, agreed with the proposed action.] [Inserted by M.P. Act No. 14 of 1976.](8)Notwithstanding anything contained in Sections 48, 49 and 50, if there is a difference of opinion between the general body of society and the person or persons appointed under sub-section (1) in respect of any matter, it shall be referred to the Registrar for decision and his decision thereon shall be final :[Provided that if the Registrar fails to take any decision within three months of the general body meeting, the decision of the general body of the society shall prevail.] [Inserted by M.P. Act No. 25 of 1988 [w.e.f. 28-6-1988].](9)Nothing in this section shall be deemed to affect the power of the Registrar to direct the winding up of the society.(10)During the period between the issuance of notice and the passing of an order removing the committee, the committee may be required by the Registrar to function under the supervision, and with the approval of such authority as the Registrar may specify in this behalf and no order made or resolution passed or any other act performed by the committee, shall be effectual unless it is approved by such specified authority :[Provided where the Registrar, while proceeding to take action under sub-section (2), is of the opinion that the supersession of the committee during the period of proceeding is necessary in the interest of the society he may suspend the committee, which shall thereupon cease to function and make such arrangement as he thinks fit, of the affairs of the society till the proceedings are completed and order issued under sub-section (1):] [Inserted by M.P. Act No. 14 of 1976.][Provided further that the period of suspension shall not exceed six months and on the expiry of said period the suspension of the Committee shall stand revoked :] [Inserted by M.P. Act No. 25 of 1988 [w.e.f. 28-6-1988].][Provided also that, if the committee so suspended, is not superseded after undergoing the proceeding mentioned above, it shall be re-instated and the period during which it has remained suspended shall not count towards its term :] [Substituted by M.P. Act No. 25 of 1988 [w.e.f. 28-6-1988].][Provided also that no order of suspension shall be made unless the committee of the society has been given a reasonable opportunity of being heard.] [Inserted by M.P. Act No. 25 of 1988 [w.e.f. 28-6-1988].](11)[ Notwithstanding anything contained in this Act, the Registrar shall, in case of Central Co-operative Banks, Urban Co-operative Banks and Primary Co-operative Land Development Banks, if the recovery continuously in three co-operative years is less than 65 per cent of the demand or if the overdues exceed 35 per cent, pass an order for removal of the committee or the Managing Committee by whatever name it is called of the Bank and for appointment of a administrator therefor for such period or periods not exceeding five years in the aggregate, as may be specified by the Registrar and on such appointment, the provisions of sub-sections (4), (5) and (6) shall apply thereto as if an order was passed under sub-section (1):Provided that no such order shall be made unless the committee has been given a reasonable opportunity of showing cause against the proposed order and representation, if any, made by it is considered.] [Substituted by M.P. Act No. 14 of 1976.](12)[ When a committee of a society has been superseded under sub-section (1) any member of the committee, notwithstanding anything contained in this Act, rules made thereunder or bye-laws of the society, shall not be eligible for contesting the election as a member of the committee nor he shall be eligible for co-option or nomination in that society for a period of seven years] [Substituted by M.P. Act No. 12 of 1994 [w.e.f. 8-5-1994].] :[Provided that nothing in this sub-section shall apply to a member of the committee of a society who was not a party of such a decision of the committee which led to the supersession of it.] [Inserted by Section 10(ii) of M.P. Act No. 20 of 1999 [w.e.f. 7-8-1999].](13)[ Notwithstanding anything contained in this Act, or rules made thereunder or bye-laws of society, if the committee of society ceases to function due to order of any Court or otherwise, the Registrar [may appoint a person or committee of persons temporarily] [Inserted by M.P. Act No. 14 of 1976.] till the Court order is vacated or the new elections are held and the committee takes charge.][x x x] [Omitted by M.P. Act 14 of 1990 [w.e.f. 31-7-1990].]
