Section 47 in The Arunachal Pradesh Co-operative Societies Rules, 1984
47. Writing-off of bad debts and losses.
(1)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 82, 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 society.(2)All other dues and accumulated losses or any other loss sustained by the society which cannot be recovered and have been certified as irrecoverable by the auditor may be written-off against the Reserve Fund or share capital of the society:Provided that-(i)no bad debts or losses be written-off without the sanction of the general body;(ii)before any such bad debts or losses are so written-off, the society, if it is affiliated and indebted to a Central Bank shall first obtain the approval of that bank in writing and also the approval of the Registrar.If the society is affiliated but not indebted to the Central Bank and in all other cases, it shall obtain the approval of the Registrar in writing. If the society itself is a Central Bank approval of the State Co-operative Bank Arunachal Pradesh, if any, and the approval of the Registrar shall first be obtained:Provided that, in case of societies classified as A or B at the time of last audit no such permission need be taken if the bad debts are to be written-off against the Bad Debt Fund specially created for the purpose;Provided further that the 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.
