Section 89 of The Multi-State Co-operative Societies Act, 2002
- (1)Where the Central Registrar has made an order under section 86 for the winding up of multi-State co-operative society, the Central Registrar may appoint a liquidator for the purpose and fix his remuneration.
- (2)A liquidator shall, on appointment, take into his custody or under his control all the property, effects and actionable claims to which the multi-State co-operative society is or appears to be entitled and shall take such steps as he may deem necessary or expedient to prevent loss or deterioration of, or damage to, such property, effects and claims and he may carry on the business of the multi-State co-operative society so far as may be necessary with the previous approval of the Central Registrar.
- (3)Where an appeal is preferred under clause (f) of sub-section (1) of section 99, an order for the winding up of a multi-State co-operative society made under section 86 shall not operate thereafter until the order is confirmed in appeal: Provided that the liquidator shall continue to have custody or control of the property, effects and actionable claims mentioned in subsection (2) and have authority to take the steps referred to in that subsection.
- (4)Where an order for the winding up of a multi-State co-operative society is set aside in appeal, the property, effects and actionable claims of the society shall re-vest in the society.
Summary
- The Central Registrar has the authority to appoint a liquidator, who is an official appointed to close down the society, and decide how much they will be paid once a winding up order is issued.
- Immediately after being appointed, the liquidator must take control of all properties, physical items, and legal rights to claim money belonging to the society.
- The liquidator must take steps to protect these assets from getting damaged, lost, or losing their value, and they can run the everyday business of the society if they get approval from the Central Registrar.
- If anyone appeals the winding up decision, the closure of the society is paused until the appeal is decided, but the liquidator keeps holding and protecting all the properties in the meantime.
- If the appeal is successful and the winding up order is cancelled, all properties and assets are returned to the co-operative society.
Practical examples
FAQ
1. Who appoints the liquidator under Section 89 of The Multi-State Co-operative Societies Act, 2002?
Under Section 89 of The Multi-State Co-operative Societies Act, 2002, the Central Registrar appoints the liquidator and also sets the amount of money the liquidator will be paid for their services.
2. What happens to the co-operative's assets when an appeal is filed against a winding up order under Section 89 of The Multi-State Co-operative Societies Act, 2002?
Under Section 89 of The Multi-State Co-operative Societies Act, 2002, when an appeal is filed, the actual winding up process is paused, but the liquidator continues to keep custody, control, and protect all the assets of the co-operative until the appeal is decided.
3. Can a liquidator run the business of the society after appointment under Section 89 of The Multi-State Co-operative Societies Act, 2002?
Under Section 89 of The Multi-State Co-operative Societies Act, 2002, the liquidator can carry on the business of the society, but only so far as it is necessary and only after getting the previous approval of the Central Registrar.
Test yourself
Q1.Under Section 89 of The Multi-State Co-operative Societies Act, 2002, who is authorised to appoint a liquidator and fix their remuneration?
Q2.Under Section 89 of The Multi-State Co-operative Societies Act, 2002, what is the liquidator required to do immediately upon their appointment?
Q3.Under Section 89 of The Multi-State Co-operative Societies Act, 2002, what happens to a winding up order if an appeal is filed against it?
Q4.Under Section 89 of The Multi-State Co-operative Societies Act, 2002, whose approval is required for the liquidator to continue running the business of the society?