Amendment status not verified — confirm the current text below against the official source.
Special provisions in respect of certain Societies. 18 [Act No.7 of 1964] (ii) being in processing, manufacturing or other industrial sector, has its unit or units lying incomplete or idle or under utilised for want of funds or for any other reason, or ceased to undertake its operations, or cannot undertake its operations in a viable manner; or (iii) being in marketing, trading, commercial or any other sector has ceased to undertake its operations, or cannot undertake its operations in a viable manner; and it is necessary in public interest to transfer its assets or assets and liabilities, in whole or in part, to any other person, he may make an order to that effect. (2) (i) The Registrar shall, before forming the opinion and making the order under sub-section (1), give an opportunity to the society by calling upon it by notice in writing in such manner as may be prescribed to state its objections or make its representations, if any, and consider the objections or representations, if any, so stated or made. (ii) It shall be the responsibility of the society to place the notice received from the Registrar before the general body convened for the purpose and communicate its objections or representations, if any, to the Registrar within a period of four weeks from the date of receipt of the notice from him: Provided that the Registrar may receive the objections or representations, if any, from the society after the said period of four weeks but not later than five weeks from the date aforesaid, if he is satisfied that the society was prevented by sufficient cause from stating its objections or making its representations, if any, in time. [Act No.7 of 1964] 19 (3) Where the Registrar has made an order under sub- section (1), he may appoint the Implementation Secretariat or any other committee, consultant or adviser having the requisite expertise or experience to assist and advise him for the purpose of,- (i) assessing the value of the assets or the assets and liabilities, in whole or in part, of the society; (ii) formulating terms and conditions for transfer of assets or assets and liabilities, in whole or in part, of the society; (iii) calling for tenders or offers for the assets or assets and liabilities, in whole or in part, to obtain the best possible offer; (iv) evaluating the offers received and identifying the best offer; (v) finalizing sale agreement and other documents relating to the transfer; (vi) receiving the proceeds from the sale; (vii) applying the proceeds towards discharge of the liabilities of the society as per the priorities set out in sub- section (9); (viii) providing such other service or assistance as the Registrar may think it necessary; and (ix) advising and assisting generally on matters relating to employees, creditors and other matters connected with the sale. 20 [Act No.7 of 1964] (4) Where the best offer for the assets or assets and liabilities, in whole or in part, of the society concerned is identified in the manner prescribed, the Registrar shall, before approving the best offer and the terms and conditions of transfer thereof, consult the Government and the financing bank, if any, to which such society is indebted. (5) Where the best offer is approved, the Registrar may make an order directing that the Committee of the society concerned shall stand dissolved from the date specified in the order and that the assets or assets and liabilities, in whole or in part, of the society shall be transferred to the person submitting the best offer on fulfilment of such terms and conditions including payment of the purchase price as may be specified in the order in the manner prescribed. (6) (i) The Registrar shall, before making the order under sub-section (5), give an opportunity to the society by calling upon it by notice in writing in such manner as may be prescribed to state its objections or make its representations, if any, and consider the objections or representations, if any, so stated or made. (ii) It shall be the responsibility of the society to place the notice received from the Registrar before the general body convened for the purpose and communicate its objections or representations, if any, to the Registrar within a period of four weeks from the date of receipt of the notice from him: Provided that the Registrar may receive the objections or representations, if any, from the society after the said period of four weeks but not later than five weeks from the date aforesaid, if he is satisfied that the society was prevented by sufficient cause from stating its objections or making its representations, if any, in time. [Act No.7 of 1964] 21 (7) On the Registrar making an order under sub-section (5) and on such order being notified in the 39Telangana Gazette, the Committee of the society shall stand dissolved and all members of the Committee including the President and the Vice President, if any, shall vacate their respective office from the date specified in the order. The Registrar shall simultaneously appoint a person or persons, wherever necessary, to manage the affairs of such society till it is dissolved. (8) The person or persons appointed by the Registrar under sub-section (7) shall transfer the assets or assets and liabilities, in whole or in part, of the society concerned to the person submitting the best offer in the manner specified in the order. (9) The proceeds realised from the transfer of assets or assets and liabilities, in whole or in part, of the society concerned, shall be applied in discharge of the liabilities of such society in the following order of priority, namely:- (i) all expenses incurred for preservation and protection of the assets; (ii) (a) dues payable to workmen and employees; (b) debts payable to secured creditors according to their rights and priorities interse; (c) dues payable to provident fund or other authorities which are protected under a statue by a charge on the assets; (iii) debts payable to ordinary creditors;