Section 89 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 89 says what happens once the Central Registrar has ordered a multi-State co-operative society to be wound up under s.86: he may appoint a liquidator and fix the remuneration, the liquidator takes custody of the property, and an appeal affects whether the order operates.
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)). Section 89 was not amended in 2023.
After an order under s.86, the Central Registrar "may appoint a liquidator" and fix his remuneration. The liquidator takes custody or control of all property, effects and actionable claims, and may carry on the business only with the Central Registrar's previous approval and only so far as necessary. If an appeal is preferred against the winding-up order, the order does not operate until confirmed, but the liquidator keeps custody. If the order is set aside, the property re-vests in the society.
Section 89(1): appointment and remuneration
"Where the Central Registrar has made an order under section 86 for the winding up of multi-state cooperative society, the Central Registrar may appoint a liquidator for the purpose and fix his remuneration." Three things follow. The power is discretionary ("may"). It belongs to the Central Registrar. And the appointment follows an order under s.86; our article on winding up of multi-State co-operative societies explains the grounds. Section 87 also leads to a winding-up order for a co-operative bank; the text of s.89(1) names only s.86.
The sources print no qualification for a liquidator and no scale of remuneration, and this article gives none. Anyone advising a society facing an order can use legal dispute resolution support to understand what comes next.
Section 89(2): custody and prevention of loss
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 cooperative society is or appears to be entitled". He must "take such steps as he may deem necessary or expedient to prevent loss or deterioration of, or damage to, such property, effects and claims". He "may carry on the business of the multi-state cooperative society so far as may be necessary with the previous approval of the Central Registrar".
| Duty or power | Words of the section |
|---|---|
| Custody | "all the property, effects and actionable claims to which the ... society is or appears to be entitled" |
| Protection | Steps "necessary or expedient" to prevent loss, deterioration or damage |
| Carrying on business | "so far as may be necessary" and only "with the previous approval of the Central Registrar" |
The phrase "is or appears to be entitled" matters: custody extends to what the society appears to own, not only what is clearly its own. The text does not say how a dispute over title is resolved.
Example. The invented Yamuna Multi-State Housing Credit Society is ordered to be wound up. The liquidator takes the cash, the loan recovery files and the receivables, and decides that a small collection counter must stay open for the month to avoid loss. Since the counter is carrying on the society's business, he must have the Central Registrar's previous approval first.
Section 89(3): appeal and the winding-up order
"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 cooperative society made under section 86 shall not operate thereafter until the order is confirmed in appeal." A proviso adds: "the liquidator shall continue to have custody or control of the property, effects and actionable claims mentioned in sub-section (2) and have authority to take the steps referred to in that sub-section."
So the appeal suspends the operation of the order, but not the liquidator's role in protecting the property. The authority to carry on business under sub-section (2) is among the steps referred to in the proviso only as the text says; the proviso speaks of "the steps referred to in that sub-section", and this article does not say more. For the appeal itself, see our article on appeals and orders not open to appeal.
Section 89(4): when the order is set aside
"Where an order for the winding up of a multi-state cooperative society is set aside in appeal, the property, effects and actionable claims of the society shall re-vest in the society." The section does not describe how the handover happens, how the liquidator's costs are met, or what happens to steps already taken; the text is silent.
Where s.89 sits in the winding-up chain
Section 86 gives the order; s.89 appoints the liquidator and protects the assets; s.90 sets out the liquidator's powers, including vesting of assets; ss.91 to 93 deal with surplus, priority and cancellation of registration. See our article on powers of the liquidator next.
Section 104(3) punishes an officer or custodian who wilfully fails to hand over custody of books, accounts, documents, records, cash, security and other property of the society to a person entitled under (among other sections) section 89; see offences and penalties.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| Section 89 | As printed above | Not amended |
| Section 104(3) | Penalty for failing to hand over custody to a person entitled under s.89 and other sections | Amended in 2023: "or to a person required to file return under section 120" added and the fines raised; see the s.104 article |
Need help in a winding-up or liquidation matter?
A society, a director or a creditor facing a winding-up order has to act quickly on records, approvals and the appeal. We can read the order, the grounds and the timeline with you through legal dispute resolution.
Key takeaways
- The Central Registrar may appoint a liquidator after an order under s.86 and fix the remuneration.
- The liquidator takes custody or control of all property, effects and actionable claims the society is or appears to be entitled to.
- Carrying on the business needs the Central Registrar's previous approval.
- An appeal under s.99(1)(f) stops the order operating until confirmed, but the liquidator keeps custody.
- If the order is set aside, property re-vests in the society.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Section 86: winding up of multi-State co-operative societies
- Section 90: powers of the liquidator
- Section 104: offences and penalties
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.