Section 67 in The Meghalaya Co-operative Societies Rules
67. Explanation of bad or doubtful asset.
- Any asset in a society declared as bad or doubtful by an audit officer in his report as provided in sub-section (2) (b) or Section 54 shall be interpreted in the following manner :(a)Doubtful debt. - If a member fails for three consecutive years without reasonable ground acceptable to the managing committee, to pay at least 25 per cent of each of the instalments of principal and interest fixed for repayment of a loan at the time of its issue, then notwithstanding that on an examination of his assets and the assets of his sureties, if any, the debt appears to be covered by the value of such assets, the debt may be considered as doubtful.(b)Bad debt. - (i) When the total amount due by a member to a co-operative society by way of principal and interest exceeds the total of his assets and the available assets of his sureties, if any, and the amount due by way of arrear interest exceeds three years demand such excess of his total dues including interest over the total assets shall be considered as bad debt. Besides, where a member has inadequate repaying capacity and he and his sureties have no available assets, the debt shall be termed as bad debt.(ii)A debt considered as doubtful if not recovered after action has been taken under Chapter X or Section 70 of the Act to recover it or the recovery of which has become barred by limitation shall be considered as a bad debt.
