Section 28 in The Chhattisgarh Co-operative Societies Rules, 1962
28. [ Writing off bad debts. [Substituted by notification No. F-5-3-16-78-XV-1, dated 26-7-79.]
- All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts in audit and all other dues and accumulated losses or any other loss sustained by the society which cannot be recovered and have been certified as irrecoverable in audit shall first be written off against the bad debt reserve and the balance, if any, may be written off against the reserve fund and share capital of the society :Provided that-(i)in the areas where Central Cooperative bank is declared as 'weak bank' by the Reserve Bank of India, the primary agricultural credit societies affiliated to the bank, as also such bank can write off the debt and losses on the certificate issued by the committee appointed by the State Government;(ii)in the areas other than those mentioned in clause (i) above, no such bad debt or losses shall, be written off without the sanction of the general body;(iii)before any such bad debt or losses are so written off, the society, if it is indebted to a financing bank, shall obtain the approval of such bank, in writing;(iv)before any such bad debts or losses are so written off, the society, shall, obtain the approval of the Registrar in writing who may while giving approval, impose such conditions as to restoration of part or whole of the amount written off against the reserve fund from out of future profits, as he may deem fit;](v)[ when a scheme of debt relief prepared by the State Government is implemented by a society, it may adjust its bad and doubtful reserve for writing off loans under the scheme.] [Added by notification No. F-5-3-91-XV-1, dated 18-4-91.]
