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Validity of case filed in NCDRC- complainant is a defunct society
13-Dec-2023 (In Consumer Court Law)
we had filed a case against a builder as a registered society under haryana act, the case is still pending in the National consumer redressal commision. however our society didnt file any annual returns and it has become defunct society, will the case filed in National consumer redressal commision have validity now ?
That will help you
CHAPTER XIII
SUSPENSION, CANCELLATION AND DISSOLUTION
Removal of defunct Society and cancellation of their registration.
57.
(1) The District Registrar, in case he has reasonable cause to believe that a Society is defunct and is not carrying on business or operations, shall issue a show cause notice to such Society, at its registered office enquiring as to whether it is carrying on its business or operations and directing them to file such documents or returns, within a period of ninety days, from the date of issue of notice.
(2) Where the defunct Society responds to such notice within specified period and submits the requisite documents or informs alongwith evidence that it is carrying on business or operations, the District Registrar shall, after due verification of records, pass an appropriate order.
(3) If the District Registrar receives a reply from the defunct Society to the effect that it is not carrying on any business or operations, he may direct the Society to convene a meeting of its General Body and pass a special resolution for its dissolution after settling all its liabilities and thereafter apply for dissolution of the Society, whereupon it shall be incumbent upon such Society to carry out such directions, within specified period.
(4) Where the District Registrar does not receive any reply within specified period, he shall cause a public notice to be issued stating that on the expiration of such period, as may be specified in such notice, the registration of such defunct Society shall be suspended.
(5) If no response is received from the defunct Society, its member, creditor or claimant within the specified period, the District Registrar shall order suspension of registration of such Society and after passing of such order, the Society shall not be competent to carry on any business.
(6) An order under sub-section (5) suspending the registration of the Society shall be notified through a public notice for the information of general public.
(7) The Society, member, creditor or claimant aggrieved with the suspension, may, within a period of three months from the date of order of suspension, submit a representation to the District Registrar.
(8) The District Registrar, on being satisfied that the Society at the time of its suspension, was carrying on business or operations or otherwise and it is just and equitable that the name of the Society be restored to the register, may revoke the suspension.
(9) The Society whose registration is restored shall be deemed to have continued in existence as if its registration had not been suspended.
(10) No claims, whatsoever, shall be valid and entertained against a Society whose registration is suspended on expiry of a period of three months from the date of suspension of its registration.
(11) If no representation against the suspension order is received within a period of three months from the date of suspension of registration, the District Registrar may, unless contrary is shown, strike off the name of the Society from the register and cancel its registration.
Cancellation of Registration of a Society with no assets and liabilities.
58.
A Society, which has no assets or liabilities to its account and is not desirous of carrying on with its business or operations, may, after passing a special resolution, apply for cancellation of its registration to the District Registrar and the District Registrar shall, after giving a public notice of not less than ninety days inviting objections, strike out its name from the register of Societies, after considering objections, if any.
Cancellation of registration upon inquiry.
59.
(1) The Registrar may, if he is satisfied,.
(i) that the Society has contravened any of the provisions of the Act or the rules made thereunder; or
(ii) that the Society is insolvent, or must necessarily become so; or
(iii) that the business of any such Society is conducted fraudulently or not in accordance with its Bye-laws or the aims and objects specified in its Memorandum; or
(iv) that it is carrying on any unlawful activity or allowing unlawful activity to be carried on in the premises under its control, order an inquiry to be conducted by the District Registrar or any other officer authorized by him.
(2) On receipt of inquiry report, the Registrar may, give a show cause notice to the Society specifying briefly the grounds of the proposed cancellation. A public notice inviting objections shall also be published after giving an opportunity to the Society and after issuing public notice inviting objections why the registration of the Society be not cancelled. After considering the objections filed by Society and public, the Registrar may cancel the registration.
Explanation..
For purposes of this section, an activity shall be deemed to be unlawful if such activity is an offence punishable under any provision of law, for the time being in force.
Effect of cancellation.
60.
When the registration of a Society is cancelled, the Society shall forthwith cease to carry on its business, except in so far as it may be required for the beneficial winding-up of its affairs, for which purpose it shall pass a special resolution and dissolve itself in the manner as provided in the Act:
Provided that the liability of office bearer shall continue and may be enforced as if the registration of Society has not been cancelled.
Dissolution on directions by Registrar.
61.
(1) Where the registration of a Society is cancelled, the District Registrar shall,.
(i) direct the Society to complete the process of its dissolution
i.e.
pass a special resolution, collect all its receivables, and settle all its liabilities, provide the details of any of its assets left over after settlement of the liabilities, and submit a proposal for transfer of its left over assets to any other Society in existence with identical aims and objects;
(ii) assess the credentials of a Society to whom any such assets are proposed to be transferred by the Society under clause (i) above and may either approve such proposal or direct the Society to place such assets at the disposal of the District Collector;
(iii) constitute a committee of members of such Society to carry out the process of dissolution of the Society where there is no Governing Body or General Body to carry out the directions under (i) above;
(iv) be competent to complete the dissolution of the affairs of the Society of his own or by appointing any of his subordinates to do the needful where it is not found feasible to constitute a committee of members of such Society. He shall associate any two members from any other Society in existence for the purpose.
(2) If on dissolution and after settlement of all the liabilities, a Society is left with any moveable or immovable assets, the District Registrar shall, in the first instance, make efforts to transfer all such assets to any other Society in existence with identical aims and objects in operation against a proper receipt, failing which, all such assets shall vest in the custody of the District Collector.
(3) Where any assets are placed at the disposal of the District Collector, he may either direct the transfer thereof to a Society in operation with identical aims and objects or use such assets preferably for the same purpose or for any other public purpose.
Dissolution by special resolution.
62.
(1) A Society may resolve to dissolve itself by passing a special resolution in a meeting of the General Body or the Collegium, as the case may be, convened for the purpose.
(2) On the passing of the special resolution under sub-section (1) above, the Governing Body shall take all necessary steps for settlement of all claims and liabilities, as it may consider appropriate in accordance with its Bye-laws and if there are no Bye-laws, in accordance with the provisions of the Act.
(3) If any dispute arises amongst the members of the Society, the Governing Body, or the special committee, as the case may be, regarding the winding up of the affairs of the Society, it shall be referred to the District Registrar for such directions, as he may consider appropriate:
Provided that the special resolution for dissolution of the Society shall not be deemed to be a matter in dispute.
(4) If the Central Government or Government or any of its instrumentalities is a member of or a contributory to or otherwise interested in any Society, such Society shall not be dissolved without the consent of the Central Government or Government, as the case may be.
(5) After all necessary steps have been completed, the Governing Body shall send a report to the District Registrar, mentioning about the surplus assets, if any.
(6) The District Registrar shall thereupon cause a public notice issued at the expense of the Society inviting objections from any person interested in the affairs of such Society within the period specified in the notice, which shall in no case be less than three months.
(7) If no objection is received from any claimant, creditor or member of the Society within three months from the date of issue of such public notice, and after the surplus assets, if any, have been disposed of as provided in the Act, the District Registrar shall make an order confirming the dissolution and thereupon the Society shall stand dissolved. The District Registrar shall record the order of dissolution in the register maintained in his office and strike off the name of the Society from the register of Society.
(8) If any objection is received from any claimant or creditor or member or any other interested person within the period as aforesaid, the Registrar shall not make an order confirming the dissolution of the Society unless he is satisfied that the relevant claim or liability have been duly settled and the surplus assets, if any, have been disposed of as provided in the Act.
Dissolution by Registrar.
63.
(1) Where the registration of a Society is cancelled and it is found to be meriting dissolution under section 57 or where the Government decides to dissolve a Society under section 62, the Registrar General or the Registrar, as the case may be, shall order dissolution of such Society in accordance with the procedure specified under the relevant sections.
(2) Upon dissolution of a Society under sub-section (1) above, the Registrar General or the Registrar or the District Registrar, as the case may be, shall take action for winding-up the affairs of the dissolved Society in accordance with the provisions contained in the Act.
Disposal of assets.
64.
(1) Where any surplus assets are left after the settlement of its claims and liabilities, such assets shall not be paid to or distributed amongst the members of the Society but shall be taken over and vest in the custody of Government:
Provided that in case a Society is registered for the purposes of the Haryana Apartment Ownership Act, 1983 (Act 10 of 1983), a housing Society or a resident welfare association registered as a Society for the operation, management and maintenance of facilities for the residents or civic amenities of any defined area, the successor-in-interest shall step in the shoes of original member subject to fulfillment of qualifications as laid down in the Bye-laws of the Society and the provisions of the Act.
(2) The Government shall place such assets at the disposal of the District Collector, who may,-
(i) in the first instance identify any other Society in operation with identical aims and objects and transfer such assets to such Society; or
(ii) use such assets, preferably for the purpose for which such assets were created, or for any other public purpose, as deemed appropriate.
District Registrar to make up account after winding up of Society.
65.
(1) As soon as the affairs of a Society are completely wound-up, the District Registrar or his nominee, if any, shall make up an account of the winding-up showing how the winding up has been conducted and the property of the Society has been disposed and call a General Body meeting for the purpose of placing before it the account and giving any explanation in respect thereof. On conclusion, the Society shall stand dissolved and name removed from the register.
(2) The records of accounts shall be maintained for a period of three years from the date of dissolution. In case any matter pertaining to any such Society is pending before any court, such records shall be maintained till the final disposal by the competent court.
CHAPTER XIII
SUSPENSION, CANCELLATION AND DISSOLUTION
Removal of defunct Society and cancellation of their registration.
57.
(1) The District Registrar, in case he has reasonable cause to believe that a Society is defunct and is not carrying on business or operations, shall issue a show cause notice to such Society, at its registered office enquiring as to whether it is carrying on its business or operations and directing them to file such documents or returns, within a period of ninety days, from the date of issue of notice.
(2) Where the defunct Society responds to such notice within specified period and submits the requisite documents or informs alongwith evidence that it is carrying on business or operations, the District Registrar shall, after due verification of records, pass an appropriate order.
(3) If the District Registrar receives a reply from the defunct Society to the effect that it is not carrying on any business or operations, he may direct the Society to convene a meeting of its General Body and pass a special resolution for its dissolution after settling all its liabilities and thereafter apply for dissolution of the Society, whereupon it shall be incumbent upon such Society to carry out such directions, within specified period.
(4) Where the District Registrar does not receive any reply within specified period, he shall cause a public notice to be issued stating that on the expiration of such period, as may be specified in such notice, the registration of such defunct Society shall be suspended.
(5) If no response is received from the defunct Society, its member, creditor or claimant within the specified period, the District Registrar shall order suspension of registration of such Society and after passing of such order, the Society shall not be competent to carry on any business.
(6) An order under sub-section (5) suspending the registration of the Society shall be notified through a public notice for the information of general public.
(7) The Society, member, creditor or claimant aggrieved with the suspension, may, within a period of three months from the date of order of suspension, submit a representation to the District Registrar.
(8) The District Registrar, on being satisfied that the Society at the time of its suspension, was carrying on business or operations or otherwise and it is just and equitable that the name of the Society be restored to the register, may revoke the suspension.
(9) The Society whose registration is restored shall be deemed to have continued in existence as if its registration had not been suspended.
(10) No claims, whatsoever, shall be valid and entertained against a Society whose registration is suspended on expiry of a period of three months from the date of suspension of its registration.
(11) If no representation against the suspension order is received within a period of three months from the date of suspension of registration, the District Registrar may, unless contrary is shown, strike off the name of the Society from the register and cancel its registration.
Cancellation of Registration of a Society with no assets and liabilities.
58.
A Society, which has no assets or liabilities to its account and is not desirous of carrying on with its business or operations, may, after passing a special resolution, apply for cancellation of its registration to the District Registrar and the District Registrar shall, after giving a public notice of not less than ninety days inviting objections, strike out its name from the register of Societies, after considering objections, if any.
Cancellation of registration upon inquiry.
59.
(1) The Registrar may, if he is satisfied,.
(i) that the Society has contravened any of the provisions of the Act or the rules made thereunder; or
(ii) that the Society is insolvent, or must necessarily become so; or
(iii) that the business of any such Society is conducted fraudulently or not in accordance with its Bye-laws or the aims and objects specified in its Memorandum; or
(iv) that it is carrying on any unlawful activity or allowing unlawful activity to be carried on in the premises under its control, order an inquiry to be conducted by the District Registrar or any other officer authorized by him.
(2) On receipt of inquiry report, the Registrar may, give a show cause notice to the Society specifying briefly the grounds of the proposed cancellation. A public notice inviting objections shall also be published after giving an opportunity to the Society and after issuing public notice inviting objections why the registration of the Society be not cancelled. After considering the objections filed by Society and public, the Registrar may cancel the registration.
Explanation..
For purposes of this section, an activity shall be deemed to be unlawful if such activity is an offence punishable under any provision of law, for the time being in force.
Effect of cancellation.
60.
When the registration of a Society is cancelled, the Society shall forthwith cease to carry on its business, except in so far as it may be required for the beneficial winding-up of its affairs, for which purpose it shall pass a special resolution and dissolve itself in the manner as provided in the Act:
Provided that the liability of office bearer shall continue and may be enforced as if the registration of Society has not been cancelled.
Dissolution on directions by Registrar.
61.
(1) Where the registration of a Society is cancelled, the District Registrar shall,.
(i) direct the Society to complete the process of its dissolution
i.e.
pass a special resolution, collect all its receivables, and settle all its liabilities, provide the details of any of its assets left over after settlement of the liabilities, and submit a proposal for transfer of its left over assets to any other Society in existence with identical aims and objects;
(ii) assess the credentials of a Society to whom any such assets are proposed to be transferred by the Society under clause (i) above and may either approve such proposal or direct the Society to place such assets at the disposal of the District Collector;
(iii) constitute a committee of members of such Society to carry out the process of dissolution of the Society where there is no Governing Body or General Body to carry out the directions under (i) above;
(iv) be competent to complete the dissolution of the affairs of the Society of his own or by appointing any of his subordinates to do the needful where it is not found feasible to constitute a committee of members of such Society. He shall associate any two members from any other Society in existence for the purpose.
(2) If on dissolution and after settlement of all the liabilities, a Society is left with any moveable or immovable assets, the District Registrar shall, in the first instance, make efforts to transfer all such assets to any other Society in existence with identical aims and objects in operation against a proper receipt, failing which, all such assets shall vest in the custody of the District Collector.
(3) Where any assets are placed at the disposal of the District Collector, he may either direct the transfer thereof to a Society in operation with identical aims and objects or use such assets preferably for the same purpose or for any other public purpose.
Dissolution by special resolution.
62.
(1) A Society may resolve to dissolve itself by passing a special resolution in a meeting of the General Body or the Collegium, as the case may be, convened for the purpose.
(2) On the passing of the special resolution under sub-section (1) above, the Governing Body shall take all necessary steps for settlement of all claims and liabilities, as it may consider appropriate in accordance with its Bye-laws and if there are no Bye-laws, in accordance with the provisions of the Act.
(3) If any dispute arises amongst the members of the Society, the Governing Body, or the special committee, as the case may be, regarding the winding up of the affairs of the Society, it shall be referred to the District Registrar for such directions, as he may consider appropriate:
Provided that the special resolution for dissolution of the Society shall not be deemed to be a matter in dispute.
(4) If the Central Government or Government or any of its instrumentalities is a member of or a contributory to or otherwise interested in any Society, such Society shall not be dissolved without the consent of the Central Government or Government, as the case may be.
(5) After all necessary steps have been completed, the Governing Body shall send a report to the District Registrar, mentioning about the surplus assets, if any.
(6) The District Registrar shall thereupon cause a public notice issued at the expense of the Society inviting objections from any person interested in the affairs of such Society within the period specified in the notice, which shall in no case be less than three months.
(7) If no objection is received from any claimant, creditor or member of the Society within three months from the date of issue of such public notice, and after the surplus assets, if any, have been disposed of as provided in the Act, the District Registrar shall make an order confirming the dissolution and thereupon the Society shall stand dissolved. The District Registrar shall record the order of dissolution in the register maintained in his office and strike off the name of the Society from the register of Society.
(8) If any objection is received from any claimant or creditor or member or any other interested person within the period as aforesaid, the Registrar shall not make an order confirming the dissolution of the Society unless he is satisfied that the relevant claim or liability have been duly settled and the surplus assets, if any, have been disposed of as provided in the Act.
Dissolution by Registrar.
63.
(1) Where the registration of a Society is cancelled and it is found to be meriting dissolution under section 57 or where the Government decides to dissolve a Society under section 62, the Registrar General or the Registrar, as the case may be, shall order dissolution of such Society in accordance with the procedure specified under the relevant sections.
(2) Upon dissolution of a Society under sub-section (1) above, the Registrar General or the Registrar or the District Registrar, as the case may be, shall take action for winding-up the affairs of the dissolved Society in accordance with the provisions contained in the Act.
Disposal of assets.
64.
(1) Where any surplus assets are left after the settlement of its claims and liabilities, such assets shall not be paid to or distributed amongst the members of the Society but shall be taken over and vest in the custody of Government:
Provided that in case a Society is registered for the purposes of the Haryana Apartment Ownership Act, 1983 (Act 10 of 1983), a housing Society or a resident welfare association registered as a Society for the operation, management and maintenance of facilities for the residents or civic amenities of any defined area, the successor-in-interest shall step in the shoes of original member subject to fulfillment of qualifications as laid down in the Bye-laws of the Society and the provisions of the Act.
(2) The Government shall place such assets at the disposal of the District Collector, who may,-
(i) in the first instance identify any other Society in operation with identical aims and objects and transfer such assets to such Society; or
(ii) use such assets, preferably for the purpose for which such assets were created, or for any other public purpose, as deemed appropriate.
District Registrar to make up account after winding up of Society.
65.
(1) As soon as the affairs of a Society are completely wound-up, the District Registrar or his nominee, if any, shall make up an account of the winding-up showing how the winding up has been conducted and the property of the Society has been disposed and call a General Body meeting for the purpose of placing before it the account and giving any explanation in respect thereof. On conclusion, the Society shall stand dissolved and name removed from the register.
(2) The records of accounts shall be maintained for a period of three years from the date of dissolution. In case any matter pertaining to any such Society is pending before any court, such records shall be maintained till the final disposal by the competent court.
Helpful?
10+
10+
Adv. Azad Singh Marothia
Fatehabad | 100+ Answers
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Hi
The society should have filed the returns as per the rules.Now the same will be affected in the NCDRC as the society has been defunct by the registrar.The case will bear the negative consequences.It is better to withdraw the case.
The society should have filed the returns as per the rules.Now the same will be affected in the NCDRC as the society has been defunct by the registrar.The case will bear the negative consequences.It is better to withdraw the case.
Helpful?
25+
25+
Adv. Tushar Bahmani
Gurgaon | 100+ Answers
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What interest of society was evolved with the builder and what is the reason for defunct of the society and what action is being taken by the Registrar of the society. They may file the letter of registrar in the court and request for adjournment till the decision of Registrar.
Helpful?
12+
12+
Adv. Dharam Pal Jindal
Faridabad | 25+ Answers
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