3. Management of the society.–(1) On and from the commencement of this Act, and for a period of
three years thereafter, the management of the society shall vest in the Central Government:
Provided that if the Central Government is of opinion that in order to secure the proper management
of the society, it is expedient that such management should continue to vest in the Central Government
after the expiry of the said period of three years, it may, from time to time, issue directions for the
continuance of such management for such period, not exceeding one year at a time, as it may think fit; so,
however, that the total period for which such management shall continue to vest in the Central
Government shall not, in any case, exceed five years.
(2) The management of the society shall be deemed to include management of all assets, rights, leaseholds, powers, authorities and privileges and all property, movable and immovable, including lands,
buildings, works of art, workshops, projects, stores, instruments, library, machinery automobile and other
vehicles, cash balances, reserve funds, investments and book debts and all other rights and interests
arising out of such property as were immediately before the commencement of this Act in the ownership,
possession, power or control of the society, and all such books of account, registers, maps, plans and all
other documents of whatever nature relating thereto.
(3) Any contracts, whether express or implied, or other arrangement, in so far as it relates to the
management of the society and affairs of the society and in force immediately before the commencement
of this Act shall be deemed to have terminated on such commencement.
(4) All persons in charge of the management of the society, including persons holding offices as
Chairman, Vice-Chairman, Secretary or Honorary Secretary, as the case may be, and members of the
General Council, Executive Board, Finance Committee and all other committees of the society
immediately before the commencement of this Act shall be deemed to have vacated their offices as such
on such commencement.
4. Administrator of society.–(1) The Central Government shall, as from the commencement of this
Act, appoint a person as the Administrator of the society for the purpose of taking over the administration
thereof and the Administrator shall carry on the management of the society for and on behalf of the
Central Government.
(2) Subject to the supervision, control and directions of the Administrator, the functions of the finance
Committee of the Society, before the commencement of this Act, shall be exercised by an officer of the
Central Government, to be appointed by that Government.
(3) The Central Government may issue such directions (including directions as to initiating,
defending or continuing any legal proceedings before any court, tribunal or other authority) to the
Administrator as to his powers and duties as that Government may deem desirable and the Administrator
may apply to the Central Government at any time for instructions as to the manner in which he shall
conduct the management of the society or in relation to any matter arising in the course of such
management.
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(4) Subject to the other provisions of this Act and the rules made thereunder and to the control of the
Central Government, the Administrator shall be entitled, notwithstanding anything contained in the
Societies Registration Act or any other law for the time being in force, to exercise, in relation to the
management of the society, the powers of the General Council, or, as the case may be, the Executive
Board, including the powers to dispose of any property or assets of such society, whether such powers are
derived under any law for the time being in force or from the memorandum and rules and regulations of
the society or from any other source.
(5) Every person having possession, custody or control of any property forming part of the society
shall deliver forthwith such property to the Administrator.
(6) Any person who, on the commencement of this Act has in his possession or under his control any
books, papers, works of art or other documents relating to management of the society, including the
minutes books containing the resolutions of the persons in charge of the management of the society before
the commencement of this Act, the current cheque books relating to the management of the society, any
letters, memoranda, notes or other communications between him and the society shall, notwithstanding
anything contained in any other law for the time being in force, be liable to account for the books, papers,
works of art and other documents (including such minutes books, cheque books, letters, memoranda,
notes or other communications) to the Administrator.
(7) Any person in charge of the administration of the society immediately before the commencement
of this Act shall, within ten days from that day or within such further period as the Central Government
may allow in this behalf, furnish to the Administrator a complete inventory of all the properties and assets
(including particulars of book debts and investments and belongings) forming part of the society
immediately before the commencement of this Act, and of all the liabilities and obligations of the society,
in relation to its administration, subsisting immediately before such commencement, and also of all
agreements entered into by the society in relation to its administration and in force immediately before
such commencement.
(8) The Administrator shall receive from the funds of the society such remuneration as the Central
Government may fix.
5. No right to compensation for premature termination of a contract.–Notwithstanding anything
contained in any law for the time being in force, no person in respect of whom any contract of
management or other arrangement is terminated by reason of the provisions contained in sub-section (3)
of section 3 or who ceases to hold any office by reason of the provisions contained in sub-section (4) of
that section, shall be entitled to claim any compensation for the premature termination of the contract of
administration or other arrangement or for the loss of his office.
6. Relinquishment of administration of the society.–(1) Notwithstanding anything contained in
sub-section (1) ofsection 3, if, at any time before the expiry of the period referred to in that sub-section, it
appears to the Central Government that the purposes of the vesting of the management of the society in
that Government have been fulfilled or that for any other reason it is not necessary that the management
of the society should remain vested in that Government, it may, by order published in the Official
Gazette, relinquish the management of the society with effect from such date as may be specified in the
order.
(2) On and from the date specified under sub-section (1), the administration of the society shall vest
in the General Council of the society and such management shall be carried on in accordance with the
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provisions of the Societies Registration Act so, however, that the steps, if any, in relation to the
management of the society may be taken after the publication of the order under sub-section (1).
7. Application of Act 21 of 1860.–(1) Notwithstanding anything contained in the Societies
Registration Act or in the memorandum and rules and regulations of the society, but subject to the
provisions of sub-section (2) of section 6, so long as the management of the society remains vested in the
Central Government.–
(a) it shall not be lawful for the members of the society or any other person to nominate or
appoint any person to be a member of the General Council of the society;
(b) no resolution passed at any meeting of the members of the society or at any meeting of the
General Council of the society, on or after the commencement of this Act, shall be given effect to
unless approved by the Central Government;
(c) no proceeding for the dissolution of the society or for the merger with any other society or for
the appointment of a Receiver in respect of its administration shall lie in any court except with the
consent of the Central Government.
(2) Subject to the provisions contained in sub-section (1) and subject to such other exceptions,
restrictions and limitations, if any, as may be prescribed, the Societies Registration Act shall continue to
apply to the society in the same manner as it applied thereto before the commencement of this Act.