Section 37
of Co-Operative Societies Act 1948
Section 37
The Registrar may of his own motion, and shall on the application of a majority of the Committee, or of not less than one-third of the members of a registered society, hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a registered society; and all officers and members of the society shall produce such books, accounts, papers and securities of the society and furnish such information in regard to the affairs of the society as the Registrar or the person authorised by him may require.
(2)
The Registrar shall, on the application of a creditor of a registered society, inspect or direct some person authorised by him in writing in this behalf to inspect the books of the society, if the applicant—
(a)
proves that an ascertained sum of money is then due to him and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and
(b)
deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require.
(3)
The Registrar shall communicate the results of any such inspection to the creditor and to the society into whose affairs inquiry has been made.
(4)
Where an inquiry is held under sub-section (1) or an inspection is made under sub-section (2) of this section, the Registrar may by a certificate under his hand make an award apportioning the costs, or such part of the costs, as he may think right, between the registered society, the members demanding an inquiry, the officers or former officers of the society, and the creditor, if any, on whose application the inquiry was made.
(5)
Any sum awarded by way of costs against any society or person under this section may be recovered, on production of the certificate referred to in subsection (4) of this section to a District Court having jurisdiction in the place where the registered office of the society is situated or the person resides or carries on business for the time being, in like manner as a fine imposed by the Court.