Sections 117 to 119 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 117 closes the courts to certain matters, notably registration and winding up, and to decisions and orders made under the Act. Section 118 protects the Central Registrar and others for acts done in good faith. Section 119 lets a multi-State co-operative society that is not a co-operative bank open branches anywhere in India.
This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023, in force from 3 August 2023 (notification S.O. 3493(E)). None of these three sections was amended in 2023.
"Save as otherwise provided in this Act", no court has jurisdiction over registration, bye-laws or their amendment, or any matter concerning winding up and dissolution. While a society is being wound up, no suit or proceeding about its business may go on or start against the liquidator, society or a member without leave of the Central Registrar. No decision or order under the Act may be questioned in any court, again save as the Act provides. Acts done in good faith are protected, and a society that is not a co-operative bank may open branches in any place in India.
Section 117(1): matters closed to courts
"Save as otherwise provided in this Act, no court shall have jurisdiction in respect of- (a) the registration of a multi-state cooperative society or its bye-laws or of an amendment of the bye-laws; (b) any matter concerning the winding up and the dissolution of a multi-state cooperative society."
The opening words matter: the bar is "save as otherwise provided in this Act". The Act provides for appeals on registration and winding up orders (s.99), for arbitration of disputes (s.84), and for execution (s.94). Our articles on appeals and orders not open to appeal and reference of disputes to arbitration explain those routes. A civil court's jurisdiction is closed to the subject matter, but the Act's own routes remain.
Section 117(2): suits during winding up
"While a multi-state cooperative society is being wound up, no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against the liquidator or against the society or any member thereof, except by leave of the Central Registrar and subject to such terms and conditions as he may impose."
| Point | What the text says |
|---|---|
| When | While the society is "being wound up" |
| Which proceedings | "suit or other legal proceedings relating to the business of such society" |
| Against whom | The liquidator, the society or any member |
| Rule | Not to be proceeded with or instituted without leave of the Central Registrar |
| Conditions | "such terms and conditions as he may impose" |
The sub-section speaks of proceedings "against" the liquidator, society or member; it does not say whether proceedings by the society are affected. The text is silent on it. See our articles on the liquidator's appointment and powers.
Example. While the invented Gandak Multi-State Sugar Society is being wound up, a supplier wants to file a recovery suit against it. Under s.117(2) the suit may not be instituted, and a pending suit may not be proceeded with, unless the Central Registrar gives leave, which may carry terms and conditions. A supplier or society facing this can seek legal dispute resolution advice on the leave application.
Section 117(3): decisions and orders not to be questioned
"Save as otherwise provided in this Act, no decision or order made under this Act shall be questioned in any court." Again the exception is the Act's own provisions: appeals under s.99, review under s.101, and the arbitration scheme with its finality clause in s.84(3). The sub-section names no remedy outside the Act, and this article says nothing on any.
Section 118: indemnity
"No suit, prosecution or other legal proceedings shall be 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." The print reads "shall be against" with no verb such as "lie" after "shall be", and has a stray comma after "or"; the text is quoted as printed. The protection covers the Central Registrar, any person subordinate to him or acting on his authority, and "any other person", and applies to "anything in good faith done or purporting to have been done under this Act". It depends on good faith.
Section 119: opening of branches
"Notwithstanding anything contained to the contrary in any law relating to cooperative societies in force in a state, a multi-state cooperative society, not being a cooperative bank, may open branches or places of business in any place in India."
Two points follow. First, the section overrides State co-operative law on the point. Second, it excludes a co-operative bank: the section does not say what applies to the branches of a co-operative bank, and this article does not add anything. For a bank, the Act points to the Banking Regulation Act, 1949 in s.86(5) as substituted and in new s.120B, and the reader should check the current law for the corresponding provision. Our guide on the difference between a multi-State society and a State society puts the choice of scope in general terms.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| ss.117, 118, 119 | As printed above | Not amended |
| s.86(5) and s.120B | No reference to the Banking Regulation Act, 1949 for winding up and banking business | Both now refer to it |
Need help with a jurisdiction question?
Whether a court can hear a matter, or whether leave is needed because a society is being wound up, is often the first question in a dispute. Our team can look at the order, the Act and the stage of proceedings with you under legal dispute resolution.
Key takeaways
- Courts have no jurisdiction over registration, bye-laws, amendments, winding up or dissolution, save as the Act provides.
- During winding up, suits against the liquidator, society or a member need the Central Registrar's leave.
- Decisions and orders under the Act are not to be questioned in any court, save as the Act provides.
- Acts done in good faith under the Act are protected from suits and prosecutions.
- A society that is not a co-operative bank may open branches anywhere in India.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Sections 99 and 100: appeals and orders not open to appeal
- Section 90: powers of the liquidator
- Sections 114 to 116: liquidator as public servant, notice in suits and Schedules
Disclaimer: Based on the Ministry of Cooperation copy of the Multi-State Co-operative Societies Act, 2002 read with the Multi-State Co-operative Societies (Amendment) Act, 2023 (in force from 3 August 2023), as consulted on 2 October 2026. The Multi-State Co-operative Societies Rules, 2002 as amended, later notifications and later amendments are not covered and should be checked. This article is general information, not legal advice; check the official text before acting.