Amendment status not verified — confirm the current text below against the official source.
Substituted by G.O.Ms.No.53, Agriculture & Co-operation (Coop.II) Department, dated 20.05.2016. 22 [Act No.7 of 1964] (iv) share capital contributed by the members of the society: Provided that the cases covered under Category (i) shall have precedence over all other Categories, Category (ii) shall have precedence over Category (iii) and (iv) and Category (iii) shall have precedence over Category (iv): Provided further that the debts specified in each of the Categories shall rank equally and be paid in full, but in the event of the amount being insufficient to meet such debts, they shall abate in equal proportions and be paid accordingly: Provided also that the question of discharging any liability with regard to a debt specified in a lower Category shall arise only if a surplus fund is left after meeting all the liabilities specified in the immediately higher Category. (10) When the assets and liabilities of the society concerned are transferred, or when the assets of the society are transferred and the realisations therefrom applied towards discharge of its liabilities, on the making of an order by the Registrar, the registration of such society shall stand cancelled and the society shall be dissolved from the date specified in the order. (11) Notwithstanding anything contained in other provisions of this Act or any other law, or any contract or any other instrument for the time being in force, the provisions of the order or orders of the Registrar under this section shall be binding on the society concerned and its members. [Act No.7 of 1964] 23 (12) No suit or other legal proceeding shall be instituted or maintained or continued in any civil court, tribunal or other authority in respect of any order made under this section. (13) It shall be competent for the Government to make rules and to give such directions as they deem fit to the Registrar to carry out the provisions of this section. Explanation:- For the purpose of this section,- (a) ―sick co-operative society‖ means a co-operative society which has,- (i) the accumulated losses in any financial year equal to fifty per cent or more of its average net worth during four years immediately preceding such financial year; or (ii) fail to repay its debts within any three consecutive quarters on demand made in writing for its repayment by a creditor or creditors of such society; (b) ―net worth‖ means the sum total of the paid up capital and free reserves after deducting the provisions or expenses as may be prescribed; (c) ―free reserves‖ means all reserves created out of the profits and share premium account but does not include reserves created out of revaluation of assets, write back of depreciation provisions and amalgamation; (d) ―debt‖ means any liability (inclusive of interest), which is due and payable by a society, in cash or otherwise, whether secured or unsecured, or whether payable under a decree or order of any Civil Court or otherwise and legally recoverable from such society; 24 [Act No.7 of 1964] (e) the expression ―cannot undertake its operations in a viable manner‖ shall mean the level of operations of the society in any financial year during four financial years immediately preceding the financial year in which the issue is being considered, is such that the income generated therefrom is not adequate to meet even the operating and establishment costs, current liabilities and to service the loans and working capital borrowings availed by it; (f) ―person‖ includes an individual, partnership, trust, company, corporation, co-operative society, an association of persons or a body of individuals, whether incorporated or not, and every artificial juridical persons, not falling within any of the preceding categories; (g) ―Implementation Secretariat‖ means the implementation Secretariat established in the Department of Public Enterprises by the State Government in G.O.Ms.No.150, General Administration (PE-II) Department, dated 30th April, 1998;] 40[(h) ―best offer‖ means the highest offer received that complies with the requirements specified in the call for tenders or offers.]