18C.Reorganization of societies on account of alteration of limits of local areas in which they operate
(1) Where the area of operation of any society or societies is restricted to any district, taluka, municipal area or any other local area and such area is divided into two or more areas, or merged in any other area, or is diminished or increased or otherwise altered, under any law for the time being in force, and the State Government is satisfied that in the public interest, or in the interest of the co-operative movement, or in the interest of the society or societies, or for the purpose of proper demarcation of area of operation for the societies in each area, it is essential to reorganise any such society or societies, the State Government may by an order, published in the Official Gazette, and in such other manner as it deems fit, provide for division of any existing society into two or more societies, amalgamation of two or more existing societies into one society, dissolution of any existing society or reconstitution of any existing society, affected by the territorial changes.
(2)An order made under sub-section (1) may provide for all or any of the following matters, namely :—
(a)the division of an existing society into two or more societies and the area of operation of each society ;
(b)the amalgamation of two or more existing societies into one society and the area of its operation ;
(c)the dissolution of any existing society ;
(d)the reorganization of any existing society and the area of its operation ;
(e)the removal of the committee of any existing society and the 1[appointment of an authorised officer or an interim committee of management from amongst the active members of that society], to manage the affairs of the existing society or of the new society or societies, under the control and direction of the State Government, for a period not exceeding two years, as may be specified in the order or until the successor committee of the concerned society is duly constituted, whichever is earlier :
(f)in the case of an existing federal society, the transfer of any of its member societies as members of another federal society named in the order ;
(g)the transfer, in whole or in part, of the assets, rights and liabilities of any existing society, including the rights and liabilities under any contract made by it, to one or more societies, and the terms and conditions of such transfer ;
(h)the substitution of any such transferee for the existing society, or the addition of any such transferee, as a party to any legal proceeding or any proceeding pending before an officer or authority, to which the existing society is a party ; and the transfer of any proceedings pending before the existing society or its officer or authority to any such transferee or its officer or authority ;
(i)the transfer or re-employments of any employees of the existing society to, or by, such transferee and the terms and conditions of service applicable to such employees after such transfer or re-employment :
Provided that, the terms and conditions of any such employee shall not be made less favourable than those applicable to him while in the service of the existing society, except with the previous approval of the State Government ;
(j)the application of the by-laws of the existing society to one or more societies without any modifications or with such modifications as may be specified in the order ;
(k)all incidental, consequential and supplementary matters as may be necessary or expedient to give effect to the order made under this section.
(3)Notwithstanding anything contained in the Transfer of Property Act, 1882, or the Registration Act, 1908, the order issued under this section shall be sufficient conveyance for transfer of the assets, rights and liabilities of the existing society as provided in the order.
(4)Any order made by the State Government under this section shall be final and conclusive and shall not be called in question in any court.
(5)Except as otherwise provided by this section or by any order issued thereunder, the provisions of this Act and the rules and orders issued thereunder, shall in all other respects apply to the existing societies and the new or reorganised societies formed under this section.]
