MISCELLANEOUSCentral

Section 118 of The Multi-State Co-operative Societies Act, 2002

No suit, prosecution or other legal proceedings shall lie against the Central Registrar or, any person subordinate to him or acting on his authority or against any other person, in respect of anything in good faith done or purporting to have been done under this Act.

Summary

The law provides legal protection, known as indemnity, to officials who perform their duties honestly.
No civil lawsuit, criminal prosecution, or other legal proceedings can be filed against the Central Registrar for actions done under this cooperative legislation.
This protection also extends to any officer subordinate to the Central Registrar.
Anyone acting directly on the authority of the Central Registrar is also shielded from legal actions.
The protection is strictly conditional on the action being done, or intended to be done, in good faith under the Act.

Practical examples

1Ramesh is an assistant officer working under the Central Registrar. He is directed to inspect a large multi-state agro-society in Punjab. During his inspection, Ramesh identifies irregular account books and temporarily seals the office cabinet, which halts transactions for a day. The board of directors wants to sue Ramesh personally for business loss, but under the law, Ramesh is fully protected because he acted in good faith under the Central Registrar's authority.

2Savita is the Central Registrar. She makes a critical decision in good faith to wind up a failing co-operative bank to save public deposits. An angry shareholder tries to file a criminal case against Savita for causing a loss to his shares. The court rejects the complaint immediately because Savita is legally protected under the indemnity clause of the Act.

FAQ

1. Who is protected from legal actions under Section 118 of the Multi-State Co-operative Societies Act, 2002?

Section 118 of the Multi-State Co-operative Societies Act, 2002 protects the Central Registrar, any officer subordinate to him, any person acting under his authority, or any other person performing acts in good faith.

2. Can a criminal case be initiated against a subordinate officer for an honest mistake made while implementing the Multi-State Co-operative Societies Act, 2002?

No, Section 118 of the Multi-State Co-operative Societies Act, 2002 explicitly states that no suit, prosecution, or other legal proceedings shall lie against protected persons for acts done in good faith.

3. What does good faith mean under Section 118 of the Multi-State Co-operative Societies Act, 2002?

Under Section 118 of the Multi-State Co-operative Societies Act, 2002, good faith means that the officer acted honestly, carefully, and without any malicious intent while discharging their duties.

4. Can I sue a person who was authorized by the Central Registrar to collect records under Section 118 of the Multi-State Co-operative Societies Act, 2002?

No, Section 118 of the Multi-State Co-operative Societies Act, 2002 bars any lawsuit against anyone acting on the authority of the Central Registrar, as long as they acted in good faith.

Test yourself

Q1.Under Section 118 of the Multi-State Co-operative Societies Act, 2002, what is the crucial requirement for an official to receive legal protection from lawsuits?

Q2.Who among the following is NOT protected from legal actions under Section 118 of the Multi-State Co-operative Societies Act, 2002?

Q3.Under Section 118 of the Multi-State Co-operative Societies Act, 2002, which of the following legal actions are barred against protected persons?

Q4.If a subordinate officer of the Central Registrar accidentally damages a door lock while entering a closed office under a valid search warrant, what happens under Section 118 of the Multi-State Co-operative Societies Act, 2002?

117PreviousSection 117 Bar of jurisdiction of courts.119NextSection 119 Opening of branches.

←Section 117 Section 119→