Section 42(1) in The Jammu and Kashmir Dissolution of Muslim Marriages Act, 1999 (1942 A.D.)
(1)Deficit, if any, arising out of the business of a cooperative in a financial year, shall be fully settled by debiting a part or all of the deficit to the deficit cover funds if any, and/ or as deficit charge, among its members:Provided that nothing in this sub-section shall preclude a cooperative from also proceeding against its directors or staff for recovery of amounts contributing to the deficit, where such deficit is the result of deviation from the approved plan and/or budget, and where such deviation does not receive the approval of the general body, or is the result of gross negligence or mismanagement:Provided further where such amounts are recovered, the general body may resolve to credit a part or all of the amount to be deficit cover fund and/or to the account of each member in proportion to the deficit charge levied on him/her in this regard.
