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Section 37 of the Co-operative Societies Act, 1912 - Costs of Inquiry

Section 37 deals with who may be required to bear the costs when the Registrar holds an inquiry under Section 35 or when an inspection of the books of an indebted registered society is made under Section 36.

Text of Section 37 - Costs of Inquiry

Meaning and Scope of Section 37

The provision gives the Registrar discretion to distribute the costs of a statutory inquiry or inspection among persons connected with the proceeding. The persons who may bear the whole or a part of the costs include the registered society, members or a creditor who demanded the inquiry or inspection, and officers or former officers of the society.

The power under Section 37 arises only where there has been an inquiry under Section 35 or an inspection under Section 36. The provision concerns allocation of the costs of that process; it does not itself create the power to commence the inquiry or inspection.

Related Legal Provisions

Section 35 - Inquiry by Registrar

Section 35 authorises the Registrar, in the circumstances specified in that section, to hold or direct an inquiry into the constitution, working and financial condition of a registered society. Officers and members are required to furnish information sought for that inquiry.

Section 36 - Inspection of Books of Indebted Society

Section 36 deals with inspection on the application of a creditor of a registered society. Among other statutory conditions, the creditor may be required to deposit security for the costs of the proposed inspection.

Section 38 - Recovery of Costs

Once costs are awarded under Section 37, Section 38 provides the statutory mechanism for recovery of the amount awarded.

Key Points

• Section 37 applies to an inquiry under Section 35 and an inspection under Section 36.
• The Registrar may apportion all or only part of the costs.
• Costs may be apportioned among the society, requesting members or creditor, and officers or former officers of the society.
• The wording "may apportion" confers a statutory discretion on the Registrar as to allocation of costs.
• Recovery of a sum awarded as costs is addressed separately by Section 38.

Official Legal Source

For the authoritative central Act text, refer to the Co-operative Societies Act, 1912 on India Code.

This page is intended for legal information and general reference. Statutory provisions should be read with applicable amendments, State laws, rules and judicial decisions relevant to the facts of a particular matter.