CCOS Act 4

Section 4 · Procedure for making good, losses caused to un-aided Co-operative Society

(1)

Notwithstanding anything contained in any law for the time in force, if in the course of an audit, inspection or supervision or otherwise of un-aided co-operative society, it is found that any person, who is or was entrusted with organisation or management of such society or any deceased, past or present chairman, secretary, member of Board of Directors, officer or employee of the society has made any payment contrary to the provisions of the Acts or acquired property by misappropriating the fund of the society or rules or bye laws made thereunder for time being in force with object to organise and develop co-operatives as democratic instruments and people's institutions based on self help, and mutual aid, and for curbing exploitation and ensuring socioeconomic development of people with particular emphasis on weaker sections of society or has caused any deficiency or loss by gross negligence or misconduct or has misappropriated or fraudulently retained any money or other property or acquired any property in his own name or others name out of the misappropriated fund belonging to such society, the Registrar may on his own motion or on the application of the Board of Directors, liquidator or any creditor make an order requiring such person or in the case of a deceased person, his legal representative who inherits his estate to repay or restore the money or property or any part thereof, with interest at such rate or to pay contribution and costs or compensation to such extent as the Registrar may consider just and equitable :Provided that no order under this sub-section shall be made unless the.person concerned is given a reasonable opportunity of being heard in the matters :Provided further that the liability of a legal representative of the deceased, shall be to the extent of the property of the deceased which has come to the hands of such legal representative.

(2)

Any person aggrieved by the order made under sub-section (1) may within thirty days from the date of communication of the order to him, appeal to the State Government.

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