Inquiry and inspection

(1) 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. (2) All officers and members of the society shall furnish such information in regard to the affairs of the society and produce the cash in hand and such books, accounts, papers and securities of the society as the Registrar or the person authorised by him may require. (3) The Registrar shall, on the application of a creditor of the 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 20 (b) deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require. (4) The Registrar shall communicate the results of any such inspection to the creditor and to the society into whose affairs the inquiry has been made. (5) Where an inquiry is held under subsection (1) of this section or an inspection is made under subsection (3) of this section, the Registrar may apportion 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. (6) Any sum awarded by way of costs against any society or person under this section may be recovered, on application to a magistrate’s 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 is provided for the recovery of costs ordered to be paid by the court. etc., of Co-operative Societies