39. Dissolution.—(1) If the Registrar, after an inquiry has been held under section 35 or after an
inspection has been made under section 36 or on receipt of an application made by three-fourths of the
members of a registered society, is of opinion that the society ought to be dissolved, he may cancel the
registration of the society.
(2) Any member of a society may, within two months from the date of an order made under
sub-section (1), appeal from such order.
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(3) Where no appeal is presented within two months from the making of an order cancelling the
registration of a society, the order shall take effect on the expiry of that period.
(4) Where an appeal is presented within two months, the order shall not take effect until it is formed by
the appellate authority.
(5) The authority to which appeals under this section shall lie shall be the State Government:
Provided that the State Government may, by notification in the Official Gazette, direct that appeals
shall lie to such Revenue authority as may be specified in the notification.
40. Cancellation of registration of society.—Where it is a condition of the registration of a society that
it should consist of at least ten members, the Registrar may, by order in writing, cancel the registration of the
society if at any time it is proved to his satisfaction that the number of the members has been reduced to less
than ten.
41. Effect of cancellation of registration.—Where the registration of a society is cancelled, the society
shall cease to exist as a corporate body—
(a) in the case of cancellation in accordance with the provisions of section 39, from the date the order
of cancellation takes effect;
(b) in the case of cancellation in accordance with the provisions of section 40, from the date of the
order.
42. Winding-up.—(1) Where the registration of a society is cancelled under section 39 or section 40, the
Registrar may appoint a competent person to be liquidator of the society.
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(2) A liquidator appointed under sub-section (1) shall have power—
(a) to institute and defend suits and other legal proceedings on behalf of the society by his name of
office;
(b) to determine the contribution to be made by the members and past members of the society
respectively to the assets of the society;
(c) to investigate all claims against the society and, subject to the provisions of this Act, to decide
questions of priority arising between claimants;
(d) to determine by what persons and in what proportions the costs of the liquidation are to be
borne; and
(e) to give such directions in regard to the collection and distribution of the assets of the society, as
may appear to him to be necessary for winding-up the affairs of the society.
(3) Subject to any rules, a liquidator appointed under this section shall, in so far as such powers are
necessary for carrying out the purposes of this section, have power to summon and enforce the attendance of
witnesses and to compel the production of documents by the same means and (so far as may be) in the same
manner as is provided in the case of a Civil Court under the Code of Civil Procedure, 1908 (5 of 1908).
(4) Where an appeal from any order made by a liquidator under this section is provided for by the rules, it
shall lie to the Court of the District Judge.2
5) Orders made under this section shall, on application, be enforced as follows:—
(a) when made by a liquidator, by any Civil Court having local jurisdiction in the same manner as a
decree of such Court;
(b) when made by the Court of the District Judge on appeal, in the same manner as a decree of such
Court made in any suit pending therein.
(6) Save in so far as is hereinbefore expressly provided no Civil Court shall have any jurisdiction in respect
of any matter connected with the dissolution of a registered society under this Act.2