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Sections 125 and 126 of the Multi-State Co-operative Societies Act, 2002: removal of difficulties, repeal and saving

Section 125(1) allows orders to remove difficulties, but "no order shall be made under this section after the expiry of two years from the commencement of this Act". New s.125(1A)...

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Published
October 2, 2026
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Oct 8, 2026
Reading time
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Last updated: October 2026Verified against: Government sources

Section 125 lets the Central Government remove difficulties in giving effect to the Act by an order published in the Official Gazette. Since 2023 there is a second, separate power for difficulties in giving effect to the Act as amended in 2023. Section 126 repeals the Multi-State Cooperative Societies Act, 1984 and saves what was done under it.

This article follows the Ministry of Cooperation copy of the Act read with the Multi-State Co-operative Societies (Amendment) Act, 2023, which inserted s.125(1A) by its section 48. The 2023 Act came into force on 3 August 2023 (notification S.O. 3493(E)). Section 126 was not amended. The date on which the principal Act itself began is not in the sources, because s.1(3) leaves it to a notification.

Section 125(1): the original power

"If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to be necessary for removing the difficulty." The proviso says "no order shall be made under this section after the expiry of two years from the commencement of this Act". The print of the proviso is part of sub-section (1) and is unchanged.

The principal Act's own commencement is by notification under s.1(3), and the notification is not in the sources, so the starting point of that two-year period is not shown here and this article states no date. Whether any order was made is not in the sources either.

Section 125(1A): the 2023 power

The new sub-section reads: "Notwithstanding anything contained in sub-section (1), if any difficulty arises in giving effect to the provisions of this Act as amended by the Multi-State Co-operative Societies (Amendment) Act, 2023, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may appear to it to be necessary for removing the difficulty: Provided that no such order shall be made under this section after the expiry of a period of two years from the date of commencement of the Multi-State Co-operative Societies (Amendment) Act, 2023."

Features.125(1)s.125(1A)
TriggerA difficulty in giving effect to the ActA difficulty in giving effect to the Act "as amended by" the 2023 Act
InstrumentOrder published in the Official GazetteThe same
LimitProvisions "not inconsistent with the provisions of this Act"The same
Time barTwo years from the commencement of the ActTwo years from the commencement of the 2023 Act

The commencement of the 2023 Act is 3 August 2023, by notification S.O. 3493(E). The sources do not show whether any order was made under s.125(1A); this article says nothing on that.

Section 125(2): laying before Parliament

"Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament." The 2023 Act did not change this sub-section. Its words are "every order made under this section", so on the face of the text they reach an order under (1A) as well as under (1).

Example. Suppose a society and the Central Registrar disagree about how an amended provision should apply in practice during the first period after the 2023 Act, and the text of the Act leaves a real gap. Section 125(1A) is the provision under which the Central Government may fill such a gap by order, and only within its time bar; a society should check whether any such order exists before relying on a reading. For advice on reading an amended provision, a society can ask for legal consultation.

Section 126: repeal and saving

(1) Repeal. "The Multi-State Cooperative Societies Act, 1984 (51 of 1984) is hereby repealed." (The print has no space before "is".)

(2) Saving of acts done. "Without prejudice to the provisions contained in the General Clauses Act, 1897 (10 of 1897) with respect to repeals", any notifications, rule, order, requirement, registration, certificate, notice, decision, direction, approval, authorisation, consent, application, request or thing made, issued, given or done under the 1984 Act, "if in force at the commencement of this Act", continue in force and have effect as if made, issued, given or done under the corresponding provisions of this Act. Readers should check the current law for the corresponding provisions of the General Clauses Act, 1897.

(3) Existing societies. Every multi-State co-operative society existing immediately before the commencement of the Act which has been registered under the Cooperative Societies Act, 1912 (2 of 1912) or under any other Act relating to co-operative societies in force in any State, or in pursuance of the Multi-unit Cooperative Societies Act, 1942 (6 of 1942) or the 1984 Act, "shall be deemed to be registered under the corresponding provisions of this Act", and its bye-laws continue "in so far as they are not inconsistent with the provisions of this Act, or the rules" until altered or rescinded.

(4) Appointments, rules, orders and proceedings. All appointments, rules and orders made, notifications and notices issued, and suits and other proceedings instituted under any of the Acts in sub-section (1), "in so far as they are not inconsistent", are deemed made, issued and instituted under this Act, save that an order cancelling the registration of a society is deemed, unless the society has already been finally liquidated, to be an order for its winding up under section 86. See our article on winding up of multi-State co-operative societies.

(5) Pending applications. The Act applies to any application for registration of a society, and any application for registration of an amendment of bye-laws, pending at its commencement, and to the proceedings consequent on them and any registration granted.

(6) Pending legal proceedings. "Save as otherwise provided in this Act, any legal proceeding pending in any court or before the Central Registrar or any other authority at the commencement of this Act shall be continued to be in that court or before the Central Registrar or that authority if this Act had not been passed."

The wording of sub-section (6) speaks of the proceeding continuing "if this Act had not been passed", which is a common saving formula. The text does not say more, and this article does not interpret it. The Acts of 1912 and 1942 are named only as printed; the reader should check the current law for the corresponding provisions.

The Act's other deeming provisions, such as s.103 for societies that become multi-State on reorganisation of States, are explained in our article on co-operative societies after reorganisation of States.

What the 2023 Amendment Act changed

ProvisionBeforeAfter
s.125(1), (2)As printed aboveNot amended
s.125(1A)No such sub-sectionInserted: removal of difficulties for the Act as amended, two years from commencement of the 2023 Act
s.126As printed aboveNot amended

Need help with an old registration or a transitional question?

Societies that trace their registration to an earlier Act, or that have proceedings that began before the 2002 Act, often have to read the saving provisions against their own records. Our team can review the registration papers and the proceedings with you through legal consultation.

Key takeaways

  • Section 125(1) allows removal-of-difficulties orders within two years of the commencement of the Act.
  • New s.125(1A) allows a similar order for the Act as amended in 2023, within two years of the commencement of the 2023 Act (3 August 2023).
  • Orders under s.125 are laid before each House of Parliament.
  • Section 126 repeals the 1984 Act and saves what was done under it.
  • Existing societies are deemed registered under this Act, and pending applications and proceedings continue.

Read next

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.

Quick recapKey facts & short answers

Key Facts About Sections 125 and 126

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

What does s.125 allow?

The Central Government may, by order published in the Official Gazette, make provisions not inconsistent with the Act to remove a difficulty in giving effect to it.

What did the 2023 Act add?

Sub-section (1A), for difficulties in giving effect to the Act as amended by the 2023 Act, with a two-year limit from its commencement.

One person should own every deadline. A deadline that belongs to everyone belongs to no one.

— TaxClue Compliance Desk

Sections 125 and 126: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

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Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

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Questions, answered

Short, direct answers to the 5 questions readers ask most on this topic.

The Central Government may, by order published in the Official Gazette, make provisions not inconsistent with the Act to remove a difficulty in giving effect to it.

Sub-section (1A), for difficulties in giving effect to the Act as amended by the 2023 Act, with a two-year limit from its commencement.

The Multi-State Cooperative Societies Act, 1984 (51 of 1984).

Section 126(3) deems them registered under the corresponding provisions of this Act.

Under s.126(6), a legal proceeding pending at the commencement of the Act continues as if the Act had not been passed, save as otherwise provided in it.