Powers of the Registrar in Disputes, Supersession and Winding Up

The third group of the Registrar's powers is corrective and, in the last resort, terminal: settling disputes, taking over a mismanaged committee, and winding up a society that can no longer function. These powers are used when supervision alone is not enough to keep a society working properly.

The first is the power connected with the settlement of disputes. Under Section 91 of the Act, disputes touching the constitution, elections, management, or business of a co-operative society — for example, a dispute between the society and a member, or between the society and its officers — are to be referred for decision to the authority prescribed under the Act. Historically such disputes were decided by the Registrar or his nominee; under the present scheme they are decided by the Co-operative Court established under the Act. The key point for a student is that the Act keeps co-operative disputes within a special, specified forum under the Act rather than sending them straight to the ordinary civil courts, and the Registrar's office remains closely connected with this dispute-resolution machinery.

The second is the power of supersession of the managing committee. Under Section 78, if the Registrar is satisfied — usually after an inquiry, inspection, or audit — that the managing committee of a society is persistently making default, is negligent, has committed acts prejudicial to the interests of the society or its members, or has otherwise failed to function, he may, after following the prescribed procedure (including giving the committee an opportunity to be heard), remove (supersede) the committee and appoint an administrator or authorised officer to manage the society for a limited period until a new committee is duly elected. This is a powerful remedy that lets the Registrar rescue a society from a committee that has failed it, without destroying the society itself. …