Section 8 in Multi-State Co-Operative Societies (Privileges, Properties and Funds, Accounts, Audit, Winding Up and Execution of Decrees, Orders and Decisions) Rules, 1985
8. Writing Off of Bad Debts and Losses.
- All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts, by the auditor appointed under section 67-, shall first be written off against the Bad Debt Fund and the balance, if any, may be written off against the Reserve Fund and the share capital of the multi-State co-operative society. All other dues and accumulated losses or any other loss sustained by the multi-State co-operative society which cannot be recovered and have been certified as irrecoverable by the auditor may be written off against the Reserve Fund of the multi-State cooperative society;Provided that-(a)no bad debts or losses shall be written off without the sanction of the general body;(b)before any such bad debts or losses are written off, the multi-state cooperative society shall obtain the approval of the Central Registrar.Provided further that the Central Registrar may, while giving the approval, impose such conditions as to the recoupment of the Bad Debt Fund and restoration of part or whole of the amount written off against the Reserve Fund, from out of future profits as he deems fit.
