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The Insurance Act, 1938

( ACT NO. IV Of 1938 )

Winding up by Court and voluntary winding up
88. (1) The Court may order the winding up of a provident society being a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, and the provisions of the Companies Act, 1913, shall, subject to the provisions of this Part, apply accordingly.
 
 
 
 
(2) In addition to the grounds on which such an order may be based, the Court may order the winding up of a provident society if the Chief Controller of Insurance, who is hereby authorised to do so, applies in this behalf to the Court on any of the following grounds, namely:-
 
 
(a) that the registration of the society has been cancelled under sub-section (4) of section 70;
 
 
 
 
(b) that it appears from the returns furnished under the provisions of this Act or as the result of an inquiry made under section 87 that the society is insolvent;
 
 
 
 
(c) that the continuance of the society is prejudicial to the interests of the policy-holders.
 
 
 
 
(3) A provident society being a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, may be wound up voluntarily in accordance with the provisions of the Companies Act, 1913, but shall not be so wound up except for the purpose of effecting an amalgamation or reconstruction of the society or on the ground that by reason of its liabilities it cannot continue its business.
 
 
(4) A provident society not being a company incorporated under the Companies Act, 1913, or under the Indian Companies Act, 1882, or under the Indian Companies Act, 1866, or under any Act repealed thereby, may be wound up voluntarily under this Act if a resolution is passed by the proprietors that the society should be wound up voluntarily for the purpose or on the ground specified in sub-section (3), and the Chief Controller of Insurance may, in any case where he has ordered the cancellation of the registration of a society under sub-section (4) of section 70, order the winding up of the society under this Act.

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