Section 36
Section 36
(1)
The Registrar may of his own motion and shall on the application of a majority of the committee members or of not less than one-third of the members of a registered society, hold an inquiry or audit under section 34 or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a registered society; and all officers and members of the society shall furnish such information in regard to the affairs of the society and produce the cash in hand and such books, accounts, papers and securities of the society as the Registrar or the person authorised by him may require.
(1A)
For the purpose of an inquiry under subsection (1), the Registrar or the authorised person referred to in subsection (1) may summon any person who he has reason to believe has knowledge of any of the affairs of the registered society and may examine such person on oath and may require any person to produce or surrender any books, accounts, papers, securities, device, apparatus, material, computer program or the computer software in his custody belonging to the registered society and its subsidiary or subsidiaries, if any, if the Registrar or such authorised person has reason to believe that such books, accounts, papers, securities, device, apparatus, material, computer program or the computer software may furnish evidence of an offence against this Act or the rules.
(1B)
Every person authorised under subsection (1) shall, upon the completion of an inquiry under subsection (1), report his findings to the
Registrar.
(1C)
If an inspection is carried out under section 35 or an inquiry is held under section 36, the Registrar may communicate the result of the inspection or the inquiry to the registered society and may, by order in writing, direct any officer of the registered society to take such actions as may be determined in the order to remedy, within such time as may be specified therein, the defects, if any, disclosed as a result of the inspection or the inquiry.
(2)
The Registrar shall, on the application of a creditor of the registered society, inspect or direct some person authorised by him in writing in this behalf to inspect the books of the society, if the applicant —
Co-operative Societies 34
(a)
proves that an ascertained sum of money is then due to him and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and
(b)
deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require.
(3)
The Registrar shall communicate the results of any such inspection to the creditor and to the society into whose affairs inquiry has been made.
(4)
Where an inquiry is held under subsection (1) or an inspection is made under subsection (2), the Registrar may by a certificate under his hand make an award apportioning the costs or such part of the costs, as he may think right, between the registered society, the members demanding an inquiry, the officers or former officers of the society, and the creditor, if any, on whose application the inquiry was made.
(5)
Any sum awarded by way of costs against any society or person under this section may be recovered on production of the certificate referred to in subsection (4) to a court having jurisdiction in the place where the registered office of the society is situated or the person resides or carries on business for the time being, in like manner as a fine imposed by the court.