Winding-up safeguards require inspection-report disclosure, a hearing and recorded reasons before a co-operative society may be liquidated.

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Full Text of the Document

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....Winding-up of a co-operative society based on a statutory inspection requires communication of the inspection report, a reasonable hearing and independent recorded reasons as safeguards of natural justice; non-compliance invalidates the winding-up and consequential liquidation. An RBI requisition following rejection of a banking licence does not displace the Registrar's duty to satisfy statutory conditions and procedure for winding up; it operates alongside those requirements. A statutory appeal provision permitting any member to challenge a winding-up order remains available after appointment of a liquidator. The society was revived as a co-operative credit society, barred from banking, with asset handover supervised by the Registrar.....