Section 42 of The Co-operative Societies Act, 1912
- (1)Where the registration of a society is cancelled under section 39 or section 40, the Registrar may appoint a competent person to be liquidator of the society. 1(2) A liquidator appointed under sub-section (1) shall have power
- (a)to institute and defend suits and other legal proceedings on behalf of the society by his name of office;
- (b)to determine the contribution to be made by the members and past members of the society respectively to the assets of the society;
- (c)to investigate all claims against the society and, subject to the provisions of this Act, to decide questions of priority arising between claimants;
- (d)to determine by what persons and in what proportions the costs of the liquidation are to be borne; and
- (e)to give such directions in regard to the collection and distribution of the assets of the society, as may appear to him to be necessary for winding-up the affairs of the society.
- (3)Subject to any rules, a liquidator appointed under this section shall, in so far as such powers are necessary for carrying out the purposes of this section, have power to summon and enforce the attendance of witnesses and to compel the production of documents by the same means and (so far as may be) in the same manner as is provided in the case of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908).
- (4)Where an appeal from any order made by a liquidator under this section is provided for by the rules, it shall lie to the Court of the District Judge.2 3(5) Orders made under this section shall, on application, be enforced as follows:-
- (a)when made by a liquidator, by any Civil Court having local jurisdiction in the same manner as a decree of such Court;
- (b)when made by the Court of the District Judge on appeal, in the same manner as a decree of such Court made in any suit pending therein.
- (6)Save in so far as is hereinbefore expressly provided no Civil Court shall have any jurisdiction in respect of any matter connected with the dissolution of a registered society under this Act.4
Summary
- This section allows the Registrar to appoint a liquidator to wind up a society after its registration is cancelled under Section 39 or Section 40.
- The liquidator has broad powers to file or defend lawsuits, decide how much members must contribute, and figure out who gets paid first.
- The liquidator can also summon witnesses and demand documents, using the same powers as a Civil Court under the Code of Civil Procedure, 1908.
- Decisions made by the liquidator are enforced by local Civil Courts just like normal court judgments.
- Regular Civil Courts are completely banned from interfering with the dissolution process unless the Act specifically allows it.
Practical examples
FAQ
1. What happens after registration is cancelled under Section 42 of The Co-operative Societies Act, 1912?
Under Section 42 of the 1912 Act, when a society's registration is cancelled under Section 39 or Section 40, the Registrar can appoint a liquidator. A liquidator is a capable person chosen to close down the business and manage its remaining assets.
2. What powers does a liquidator have under Section 42 of the co-operative societies law?
Section 42 of the co-operative societies law lets the liquidator start or defend legal cases on behalf of the society. They can also investigate claims, figure out who pays the costs of closing down, and decide what past and present members must contribute to the society's assets.
3. Can a liquidator force people to provide evidence under Section 42 of the 1912 Act?
Yes, Section 42 of the 1912 Act gives the liquidator power to summon witnesses and force them to attend. They can also compel people to produce documents, using the same methods a Civil Court uses under the Code of Civil Procedure, 1908.
4. How are a liquidator's orders enforced under Section 42 of The Co-operative Societies Act, 1912?
Under Section 42 of The Co-operative Societies Act, 1912, a person can apply to a local Civil Court to enforce a liquidator's order. The Civil Court will enforce it just like one of its own decrees, which are official court orders. If the District Judge makes an order on appeal, it is enforced the same way.
5. Can I take a dispute about dissolving the society to a regular Civil Court under Section 42 of this law?
No, Section 42 of this law states that regular Civil Courts do not have jurisdiction over matters connected with dissolving a society. The only exceptions are the specific appeal and enforcement processes mentioned earlier in Section 42.
Test yourself
Q1.Under Section 42 of The Co-operative Societies Act, 1912, who has the authority to appoint a liquidator when a society is cancelled?
Q2.Under Section 42 of The Co-operative Societies Act, 1912, which of the following is a power specifically granted to the liquidator?
Q3.How are the orders made by a liquidator enforced under Section 42 of The Co-operative Societies Act, 1912?
Q4.Read together, what must happen under either Section 39 or Section 40 of The Co-operative Societies Act, 1912, before the Registrar can appoint a liquidator under Section 42?