Section 65 of THE KARNATAKA CO-OPERATIVE SOCIETIES ACT, 1959.

may of his own motion, or on the application of a creditor of a co-operative society, inspect or direct any person authorized by him by order in writing in this behalf, to inspect the books of the society: Provided that no such inspection shall be made on the application of a creditor unless the applicant,—

1. (a)satisfies the Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and
2. (b)deposits with the Registrar such sum as security for the costs of the proposed inspection as the Registrar may require.

1. (2)The Registrar shall ²[send a copy of the inspection report and communicate] ¹[the result of any such inspection to the Director of Co- operative Audit and] ,—
   1. (a)where the inspection is made of his own motion to the society; and
   2. (b)where the inspection is made on the application of a creditor, to the creditor and the society. ¹[(2A) On receipt of the inspection report and the result of the inspection from the Registrar, it shall be the responsibility of the board to initiate necessary action for rectification of defects, if any, therein and place the report before the annual general meeting or a special general meeting convened for the purpose at the earliest. Provided that the general body of the cooperative society shall not be competent to pass a resolution negativing the findings of the inspection] 1[(3) If the result of the ²[inspection] held under sub-section (1) discloses any defects in the working of the society, the society shall within 1959:KAR.ACT 11] Co-operative Societies 102 ²[forty five days] from the date of the receipt of the ²[inspection] report and communication of the result of the ²[inspection] explain to the Registrar the defects or the irregularities pointed out in the ²[inspection] and take steps to rectify the defects and remedy the irregularities and report to the Registrar the action taken by it thereon. The Registrar may also make an order directing the society or its office bearers to take such action, as may be specified in the order to remedy the defects within the time specified therein.]

↩1.Substituted by Act 25 of 1998 w.e.f. 15.08.1998.

↩2.Substituted by Act 6 of 2010 w.e.f.30.03.2010.

↩1.Inserted by Act 3 of 2013 w.e.f 11.02.2013.

↩1.Inserted by Act 6 of 2010 w.e.f.30.03.2010.

↩2.Substituted by Act, 3 of 2013 w.e.f 11.02.2013.