Writing Off of Outstanding not irrecoverable
By Legal Bureau
A society can write off its bad debts and outstanding amount due to its members. As per model bye-law no. 149 subject to the bye law no. 150 the society may write off any loan and interest thereon society’s charges due from members the expenses incurred on recovery thereof and the accumulated loses which are certified as irrecoverable by the statutory auditors.
As per model bye-law no. 150 the amounts mentioned in bye laws no 149 shall not be written off unless : (i) the meeting of the general body of the society has given due sanctions for writing off the amounts (ii) the approval of the registering authority is obtained. Provided that if the society is affiliated to the dist. Central co-op.bank or any other financing agency but it is not indebted to it the permission of the bank or the financing agency is not necessary. Provided further that if the society is classified as a or b at the last audit no such permission of the bank or the financing agency or the registering authority is necessary if there is sufficient balance in the bad debt fund specially created for the purpose to cover the amount proposed to be written off.