Section 14B in The Orissa Co-operative Societies Act, 1962
14B. [ Special provision in respect of certain sick Societies.] [Inserted by Orissa Act 1 of 1995, Section 2 dated 11.1.1995.]
- [(1)(a) Subject to the provisions of Section 123, and notwithstanding anything to the contrary contained in any other provisions of this Act and the Rules or Bye-Laws framed thereunder, or any other law, for the time being in force, where the Registrar, for reasons to be recorded, is of the opinion that a Cooperative Society in which majority of the shares have been subscribed or liabilities by way of guarantee for borrowing exceeding fifty per centum of the working capital of the Society have been undertaken by the State Government;(i)has become sick and it is not possible to rehabilitate it or run it in a viable manner;, or(ii)being in processing, manufacturing or other industrial sector, has its processing, manufacturing or other units lying either incomplete for want of required funds for completing those, or idle, or under utilised, for want of working capital for running it, or for any other reasons; or(iii)being in a marketing, trading, commercial or any other sector, has ceased to undertake necessary operations, or cannot undertake such operations in a viable manner;and it is necessary, in the public interest, to transfer the assets and liabilities of the said Society, to any other Society or person, or a company, firm or body, whether incorporated or not, the Registrar may, after consulting the Financing Banks and other institutions to which such Society is indebted, and the State Government, on the choice of a transferee, nature of transfer, and other incidental, consequential and supplemental matters, by notice in writing, call upon the Committee of the Society to transfer, within such time, as may be specified therein, its assets and liabilities to any other Society or person, or a company, firm or body, whether incorporated or not, on such terms and conditions as may be formulated by the Registrar;Provided that no such consultation shall be made without determining the value of the assets and liabilities of the Society concerned by a valuer to be appointed, and through a procedure to be adopted with the previous approval of the Government.] [Substituted by Orissa Act No. 7 of 1997, Section 2 (a) (i), dated 23.7.1997.](b)If within the time specified in the notice referred to in Clause (a), the Committee fails to make the transfer directed therein the Registrar shall, by order published in the Gazette, make such transfer, and with effect from the date of publication of the order the assets and liabilities of the Society shall stand so transferred :Provided that no order this clause shall be made, unless the Registrar has given an opportunity to the General Body, creditors, depositors, employees, of the Society and any other persons concerned to state their objections, or make representations, if any, within such time from the date of receipt of the proposed order, as may be specified by the Registrar in his notice containing the said order to such persons, and has considered the objections, and representations, if any so made.(c)[ The Registrar shall, within such time and in such manner as may be considered reasonable by him, in the facts and circumstances of the transfer under Clause (b) settle the claims, if any, of the members, depositors, creditors, employees of the Society and other persons concerned having any right, assets or liabilities in relation to the Society in accordance with law, so however that no such right, asset or liability of any of the persons aforesaid, existing as on the date of the transfer, is increased, and make payments due, if any, under the settlement, to the Society or any such persons.] [Inserted by Orissa Act No. 7 of 1997, Section 2 (a)(ii) dated 23.7.1997.](2)An order issued under Sub-section (1) shall notwithstanding anything contained in this Act, the rules or bye-laws framed thereunder or in any other law or in any contract, award or instrument for the time being in force be binding on all members, depositors, creditors, employees of the society and other persons concerned having any right assets or liabilities in relation to the Society.(3)The order under Sub-section (1) may provide for -(a)reduction of the interest or right which the members, depositors, creditors, employees and other persons concerned may have in or against the Society, to such extent as the Registrar considers necessary, having due regard to the proportion of the assets of the Society to its liabilities; and(b)such incidental, consequential and supplemental matters as may in the opinion of the Registrar, be necessary to give effect to the said transfer.(4)[ For the purpose of this Section, at-any stage of proceeding thereunder, it shall be competent for the State Government to give such directions to the Registrar, as it may deem proper in the facts and circumstances of every case, and such directive shall be binding on the Registrar;] [Substituted by Orissa Act No. 7 of 1997, Section 2 (b) & Section 2 (d) dated 23.7.1997.](5)[ Notwithstanding anything contained in the Transfer of Property Act, 1882 or the Registration Act, 1908, an order issued under this Section shall be sufficient conveyance to transfer the assets and liabilities of the Society;] [Added by Orissa Act No. 7 of 1997,Section 2 (c).][Explanation - For the purposes of this Section -(i)'Company' shall mean a company as defined in the Companies Act, 1956;(ii)'Sickness' in respect of a Society shall ordinarily mean non-viability, and may bear such other meaning as assigned to it under Sick Industrial Companies (Special Provisions) Act, 1985 or any other law in force; and(iii)'Transfer' shall include transfer by way of management contracts, lease or any other mode.]
