18A. Conditions for realising the assets and liquidating the liabilities of the de-registered society by the Official Assignee
1[18A. Conditions for realising the assets and liquidating the liabilities of the de-registered society by the Official Assignee:-
(1) The Official Assignee shall work under the general control, superintendence and directions of the Registrar.
(2) He shall have the following powers for the purposes of realising the assets and for liquidating the liabilities of society which is de-registered under the provisions of subsection (i) of Section 21 A. namely.—
(a) he shall have powers to institute and defend any suit and other legal proceedings, civil and criminal, on behalf of the de-registered society in the name of his office;
(b) to carry on the business of the society, so far as may be necessary for the beneficial completion of the de-registration proceedings;
(c) to sell such immovable and movable property and actionable claims of the de-registered society generally by public auction or in exceptional cases by private contract with prior approval of the Registrar;
(d) to investigate all the claims against the de-registered society and subject to the provisions of the Act, to decide questions of priority arising out of such claims and to pay any class or classes of creditors in full or retable according to the amount of such debts. However, the Official Assignee shall pay all the liabilities in the following priority, namely—
(i) his salaries, remuneration, allowances and other claims;
(ii) wages and other payments to be made to the employees of the de- registered society including arrears;
(iii) expenses required for beneficial completion of de-registration proceedings;
(iv) taxes, charges, fees and revenues, etc. payable under any other law for. the time being in force and such other dues which are recoverable as arrears of land revenue;
(v) any dues payable under the decree of any Court;
(vii) loans payable to Government of India;
(viii) loans payable to the State Government;
(ix) any other dues payable to the Government of India;
(x) any other dues payable to the State Government;
(XI) loans guaranteed by the Government of India;
(xii) loans guaranteed by the State Government;
(xiii) secured loans;
(xiv) unsecured loans;
(xv) shares of Government of India;
1. Ins. by G.N. of 16-10-1987.
(xvi) shares of State Government;
(xvii) shares of any financial institution:
(xviii) shares of Co-operative Societies;
(xix) shares of other body corporates;
(xx) shares of members.
(e) to make any compromise or arrangement, with creditors or persons claiming to be the creditors of having or alleging themselves to have any claims, present or future, whereby he may be rendered liable;
(f) to compromise all calls, or liabilities to calls, and debts and liabilities capable of resulting in debts, and all claims present or future, certain or contingent, subsisting or supposed to subsist between him and contributory or alleged contributory or other debtors or person apprehending liability to him and all questions in any way relating to or affecting the assets of de-registration proceedings on such terms as may be agreed, and to take any security for the discharge of any such calls, liability, debt or claim and give a complete discharge in respect thereof:
(g) to determine from time to time, after giving an opportunity to answer the claims, the contribution to be made, or remaining to be made by the members or past members of the de-registered society or by the estates, nominees, heirs or legal representatives of the deceased members of de- registered society, or by the officer, post officer of the estate or nominee, heirs or legal representatives of deceased officer to the assets of de-registered society, such contribution being inclusive of debts and dues from such members or officers of the de-registered society;
(h) to determine from whom and in what proportion the cost of de- registration and that of the proceedings of de-registration shall be borne;
(i) to fix the time or times within which the creditors shall prove their debts and claims;
(j) to summon and enforce the attendance of witnesses and to compel the production of any books, accounts, documents/securities, cash or other properties belonging to the society de-registered which have vested in him but are in the possession of any person or body corporate by same means and in the same manner as provided in the case of civil case under the Code of Civil Procedure. 1908;
(k) to do all acts and to execute in his name on behalf of the society de- registered all deeds, receipts and other documents as may be necessary for finalisation of proceedings of de-registration.
(3) Immediately on his appointment, the Official Assignee shall proceed to realise the assets of the society de-registered by sale or otherwise and liquidate the liabilities.
(4) The Official Assignee, during the tenure of office, present accounts of his receipts, not less than twice in each year, to the Registrar. The Registrar shall cause the accounts to be audited in such manner as he thinks fit and for the purpose of audit, the Official Assignee shall furnish to the Registrar with such accounts and information as he. or the person appointed by him, may require.
(5) The Official Assignee shall on demand and on payment of such fee as he may determine supply a copy of audited account to contributory.
(6) The Official Assignee shall pay such fees as the Registrar may direct for the audit of accounts and books kept by him or by the society de-registered.
(7) He shall be held liable for any irregularities which might be discovered in the course or as a result of audit or otherwise in respect of transaction subsequent to his taking over the charge as Official Assignee and may be proceeded against as if it were an act against which action should be taken under Section 88. Provided that no such action shall be taken unless the irregularities have caused or likely to cause the loss, damage and have occurred due to gross negligence or an act of omission or commission in carrying out duties and functions assigned to him.
(8) He shall, after settling assets and liabilities of the society de-registered as they stood on the date of his appointment, proceed to determine the contribution to be made or remaining to be made to the assets of the society de-registered by any person and the property of such person and call upon each of them by order to pay the amount specified in such order as contribution and as cost of the proceedings after de-registration as determined under this rule after approval of the Registrar. Every such order shall be submitted for approval to the Registrar who may modify it or refer it back to the Official Assignee for further enquiry or further action.
(9) If the sum assessed against any person is not covered, the Official Assignee may issue subsidiary order or orders against any other person or persons to the extent of the liability of each for the debts of the society de-registered until the whole amount due from such person is recovered. The provision of foregoing rule shall mutatis mutandis apply to such order.
(10) He shall submit the progress report and such other reports and statements to the Registrar, as the Registrar may require.
(11) He may empower one or more persons by general or special order in writing to make collection and to grant valid receipts on his behalf.
(12) He shall have power to call meetings of creditors and contributories and it shall be obligatory on all such persons to attend such meetings.
(13) The Official Assignee may, at any time, be removed by the Registrar and he shall on such removal hand over all the property and documents to such persons as the Registrar may direct.
(14) The Official Assignee shall exercise only those powers under the Act and these rules as may be determined by the Registrar by general or special order from time to time and in the manner and subject to the conditions he may impose.
(15) He shall maintain such books and accounts as the Registrar may require him to keep.
(16) He shall submit a final report to the Registrar. On acceptance of such report by the Registrar, the Official Assignee shall, within 30 days, arrange to transfer the entire surplus to the Registrar.
(17) On the day of acceptance of final report of the Official Assignee by the Registrar, all the assets of the society de-registered shall stand vested in the Registrar and the liabilities, if any, remained to have been liquidated, shall stand liquidated.