Section 4. Insertion of section 12C 12D and 12E in Central Act 21 of 1860
4. Insertion of section 12C 12D and 12E in Central Act 21 of 1860.- After section 1213 of the principal Act, the following sections shall be inserted, namely:-
"12C. Maintenance of accounts and their balancing and auditing.- (1) Every governing body ??? with the management of the affairs of a society registered under this Act shall keep regular accounts.
(2) The accounts shall be kept in such form as may be approved by the Registrar, and shall contain such particulars as may be prescribed.
(3) The accounts shall be balanced each year on the 31st day of March or on such other day as may be fixed by the Registrar.
(4) The accounts shall be audited annually in such manner as may be prescribed and by a person who is a chartered accountant within the meaning of the Chartered Accountants Act, 1949 (Act 38 of 1949), or by such person as may be authorized in this behalf by the State Government.
12D. Auditor's duty to prepare balance sheet and report irregularities, etc.- (1) It shall be the duty of every auditor auditing the accounts of a society under section 12C to prepare balance sheet and income and expenditure account and to forward a copy of the same to the Registrar.
(2) The auditor shall in his report specify all case of irregular, illegal or improper expenditure or failure or omission to recover money or other property belonging to lite society or of loss or waste of money or other property thereof, and state whether such expenditure, failure, omission, toss of waste caused in consequence of breach of trust or misapplication of any other misconduct on the part of the governing body or any other person.
12E. Registrar's power to cancel registration in certain circumstances.- (1) Notwithstanding anything contained in this Act, the Registrar may, by order in writing cancel the registration of any society on any of the following grounds:-
(a) that the registration of the society or of its name or change of name is contrary to the provisions of this Act or of any other law for the time being in force;
(b) that its activities or proposed activities have been ??? are or will be subversive of the objects of the society or opposed to public policy;
(c) that the registration certificate has been obtained by misrepresentation or fraud;
(d) that the society is carrying on any unlawful activity or allows unlawful activity to be carried on within any premises under the control of the society:
Provided that no order of cancellation of registration of any society shall be passed until the society has been given a reasonable opportunity of altering its name or object or of showing cause against the action proposed to be taken in regard to it.
(2) An appeal against an order made under sub-section (1) may be preferred to such authority and within such time and in such manner as may be prescribed.
(3) The decision of the authority under sub-section (2), shall be final.".
Section 7. Insertion of section 22 to 32 in Central Act 21 of 1860
7. Insertion of section 22 to 32 in Central Act 21 of 1860.- After section 21 of the principal Act the following sections shall be added at the end, namely:-
"22. Power of Registrar to call for information.- (1) The Registrar may, by written order, require any society to furnish in writing such information or document within such time, being ordinarily not less than three weeks from the date of receipt of the order by the society, as he may specify in the order in connection with the affairs of the society or any ??? filed by the society under this Act.
(2) On receipt by the society of an order under sub-section (1), it shall be the duty of the President, Secretary or any other person authorized in this behalf to furnish such information or documents,
23. Investigations of affairs of society.- (1) Where on the information received under section 22 or otherwise, the Registrar is of opinion that there is apprehension that the affairs of a society registered under this Act are being so conducted as to defeat the objects of the society or that the society or its governing body by whatever name called, or any office-bearer thereof in actual effective control of the society is guilty of mismanaging its affairs or of any breach of fiduciary or other like obligations, the Registrar may, either himself or by any person authorized by him in that behalf, inspect or investigate into the affairs of the society or inspect any institution managed by the society.
(2) It shall be the duty of every office-bearer of the society when so required by the Registrar or other person authorised under sub-section (1) to produce any books of account and other records of or relating to the society which are in his custody and to give him all assistance in connection with such inspection or investigation.
(3) The Registrar or other person authorized under sub-section (1) may call upon and examine on oath any office-bearer, member or employee of the society in relation to the affairs of the society and it shall be the duty of every office-beare, member or employee, when called upon, to appeal before him ??? such examination.
(4) The Registrar or other person authorized under sub-section (1) may, if in his opinion it is necessary for the purpose of inspection or investigation, seize any or all the records including account books of the society:
Provided that any person from whose custody such records are seized shall be entitled to make copies thereof in the presence of the person seizing such records.
(5) On the conclusion of the inspection or investigation as the case may he, the person, if any, appointed by the Registrar to inspect of investigate shall make a report to the Registrar on she result of his inspection or investigation.
(6) The Registrar may, after such inspection or investigation, give such directions to the society or to its governing body or any office-bearer thereof, as he may think fit, for the removal of any defects or irregularities within such time as may be specified and in the event of default in taking action according to such directions, the Registrar may proceed to take action under section 12E or section 30, as the case may be.
24. Disputes regarding electron of lice-hearers.- (1) The prescribed authority may, on a reference made to it by the Registration by at least one-fourth of the members of a society registered in Haryana, hear and decide in a summary manner any doubt dispute in respect of the election or continuance in office of an oil ice-beater of such society, and may pass such orders in ??? thereof as it deems fit.
Provided that the election of office-bearer shall be set aside where the Described authority is satisfied-
(a) that any corrupt practice has been committed by such office bearer; or
(b) that the nomination of any candidate has been improperly rejected; or
(c) that the result of the election insofar as it concerns to such office-bearer has been materially affected by the improper acceptance of any nomination or by the improper reception, refusal or rejection of any vote or the reception of any vote which is void or by any non-compliance with the provisions of any rules of the society.
Explanation.- A person shall be deemed to have committed a corrupt practice who, directly or indirectly, by himself or by any other person-
(i) induces, or attempts to induce, by fraud, intentional in representation, coercion or threat of injury, any elector to give or to refrain from giving a vote in favour of any candidate, or any person to stand or not to stand as or to withdraw or not to withdraw from being a candidate at the election;
(ii) with a view to inducing any elector to give or to refrain from giving a vote in favour of any of didate, or to inducing any person to stand or not to stand as or to withdraw or not to withdraw from being a candidate at the election, offers or gives any money or or holds out any place or employment, or holds out any promise of individual advantage or profit to any person;
(iii) abets (within the meaning of the Indian Penal Code) the doing of any of the acts specified in clauses (i) and (ii);
(iv) induces or attempts to induce a candidate or elector to believe that he, or any person in whom lie is interested, will become of wilt he rendered an object of ??? displeasure or spiritual censure;
(v) canvasses on grounds of caste, community, sector religion;
(vi) commits such other practice as the State Government may prescribe to be a corrupt practice.
Explanation II.- A promise of individual advantage or profit to a person includes a promise for ins benefit of the person himself, or of anyone in whom he is interested.
Explanation III.- The State Government may prescribe the procedure for hearing and decision of doubts or disputes in inspect of such elections and make provision in respect of any oilier matter relating to such elections for Vehicle insufficient provis ??? in this Act or in the rules of the society.
(2) Where by an order made ??? (1) an ??? is set aside or an office-bearer is held no longer entitled to continue office or where the Registrar is satisfied that any election of office bearers or ???, ??? within the time ??? rules of that society, lie may call a meeting of the ??? body or such society for election such office bearer or office-bearers, and such meeting shall be presided over and be conducted by the Registrar or by any officer authorised by him, in this behalf the provision of the rules of the society relating to meetings and ejections that apply to such meeting and election with necessary modifications.
(3) Where a meeting is called by the Registrar under sub-section (2), no other meeting shall be called for the purpose of election by any other authority or by any person claiming to be an office-bearer of the society.
Explanation.- For the purposes of this section, the expression prescribed authority means an officer or court authorised in this behalf by the State Government by notification published in the Official Gazette.
25. Terms of gift to be observed.- Where a society accepts a gift or donation of money or properly of money kind from any person for a specific purpose it shall not use the money or other property gifted or donated or any part thereof for any that purpose except for the promotion of the activities of the society.
26. Penalties.- Any society which-
(a) fails to furnish the list of managing body or other ??? under section 72 of wilfully makes or causes to be made a false entry in, or any omission from, the list or any statement or copy of rules or of alteration in rules at other information sent to the Registrar under the said section:
(b) wilfully fails, neglects or refuses to maintain, balance and audit accounts as referred to in section ???
(c) wilfully fails to produce any books of accounts or other records as required by sub-section (2) of section 23.
(d) wilfully fails to appear before the Registrar or other person authorised by him or otherwise contravenes the provisions of sub-section (3) of section 23;
shall be punishable with line which may extend to five thousand rupees.
27. Compounding of offences.- The Registrar may accept from any person against whom a reasonable suspicion exists that he has committed any offence punishable under section 26 or against whom a prosccution under that section has been instituted a sum of money by way of composition fee for the offence which such person is suspected to have committed.
(2) On the payment of such ??? fee the suspected person shall be discharged and no further proceedings shall be taken against him, and if ??? of such person had been instituted the composition shall have the effect of his aquiual.
28. Manner of payment of fees.- Fees payable under the provisions of this Act shall be paid in such manner as may be prescribed.
29. Mode of service of notice by Registrar.- (1) Any notice, order or requisition meant for a society or for the governing body thereof to be issued by the Registrar may be served on the Secretary of the society, and service on the Secretary shall be as effectual as if the same had been served on every member of the society or as the case may be, on every member of the growing body thereof, unless the Registrar otherwise directs.
(2) The sending of such notice, order or requisition to the Secretary of the society by registered post at its registered office shall amount to sufficient service thereof on the society.
30. Appointment of Administrator.- (1) Where on receipt of a complaint from three office-bearers of a society or three affected persons or on inspection of records, the Registrar is satisfied.-
(i) that the society is working against the objectives and ideals as per sections 1 and 20 on the basis of which the society was granted certificate;
(ii) that the society is not working ??? or the elections have not taken place within the specified the election have taken place fraudulently or against the clauses of memorandum of association;
(iii) that the office-bearers have been nominated against the clauses of memorandum of association;
(iv) that the number of members in a trustee mandal has been purposely kept below seven, the Registrar may recommend to the State Government to appointed an Administrator:
Provided that no adverse order shall be passed unless an opportunity of being heard has been given to the concerned society:
Provided further that the action of the Registrar in this behalf shall be final and no appeal shall lie in any court against such action.
(2) The State Government may, by order published in the Official Gazette, shall appoint an Administrator of such society who shall not be below the rank of Deputy Secretary for such period, not exceeding six months, as may be specified in the order to manage the affairs of the society.
Provided that for reasons to be recorded in writing, the State Government may, by like order, extend the said period for a further duration of six months.
(3) On the appointment of the Administrator under sub-section (2) the governing body of the society hall tease to exercise any powers and perform and discharge any functions or duties conferred or imposed on it by this Act, or its memorandum of association or the rules and regulations or any other law and subject to any directions which the State Government may from time to time issue, all such functions or duties shall be performed or discharged by the Administrator.
(4) The Administrator shall, before the expiry of the period of his appointment, take necessary action to convene the general body meeting of the society and hold election for the constitution of the governing body.
(5) If the Administrator is not, lot reasons beyond has control, able to convene the general body meeting or inspite of such meeting being convened the general body fails to elect the governing body, the Administrator shall forthwith send a report to the State Government who may pass such orders as are considered necessary, either extending the period of appointment of the Administrator for a further duration or if satisfied that public interest so requires, for the dissolution of the society.
(6) The State Government may if it thinks fit, appoint a committee to advise and assist the Administrator appointed under sub-section (1) in the exercise of the powers and performance and discharge of the duties and functions conferred or imposed on him under this Act. The members of the committee shall have such qualifications as may be prescribed and shall hold ??? during the pleasure of the State Government.
(7) Where an order of dissolution is passed under suit-section (5) the assets of the society shall vest in and the liabilities shall devolve on the State Government.
31. Indemnity.- No suit, prosecution or other legal proceedings shall tic in any court against the State Government, the Registrar or against any person appointed for inspection or investigation under section 23, for anything in good faith done or intended to be done under this Act or the rules made thereunder.
32. Power to make rules.- (1) The State Government may after previous publication, make rules not inconsistent with this Act for carrying out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power, the State Government may make rules-
(a) prescribing the form of the register of societies and the mode in which entries relating to registration are to be made therein, and the mode in which such entries are to be amended or notes made therein;
(b) regulating the filing of documents received by the Registrar;
(c) prescribing the particulars to be contained in the form of accounts under sub-section (2) of section 12C;
(d) prescribing the manner in which the accounts shall be audited under sub-section (4) of section 12C;
(e) prescribing the authority before whom and the time within which an appeal shall be preferred under sub-section (2) of section 12E and the manner in which such appeal shall be filed;
(f) prescribing the duties, functions and powers of governing body of the society under section 16A;
(g) prescribing conditions for the inspection of original documents and regulating the grant of copies of documents under section 19;
(h) prescribing the procedure for hearing and decision of doubts or disputes in respect of elections under sub-section (1) of section 24;
(i) prescribing the manner in which fees payable under this Act shall be paid under section 28;
(j) prescribing the qualifications of members of society under sub-section (6) of section 30;
(k) providing for any other matter for which there is no provision or insufficient provision exists in this Act and for which provision is, in the opinion of the State Government, necessary for giving effect 10 the purposes of this Act.
(3) Every rule made under this Act shall be laid, as soon as may be after it is made, before the House of the State Legislature, while it is in session, if the House agrees in making any modification in the rule or the House agrees that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.".