Sections 91 to 93 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.
These three sections close the winding-up chain. Section 91 says how surplus assets are used or divided, s.92 says where the liquidator's contribution assessments rank among debts, and s.93 lets the Central Registrar cancel the registration so that the society stands dissolved.
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.
Surplus assets shown in the liquidator's report go to the purpose in the bye-laws, if they specify one, used by the Central Registrar; if not, the Central Registrar divides them among the members with the previous sanction of the Central Government, as prescribed. A contribution assessed by the liquidator ranks next to debts due to the Central Government, a State Government or a local authority. After the liquidator's report the Central Registrar may cancel registration, and the society stands dissolved.
Section 91: disposal of surplus assets
"The surplus assets, as shown in the report of a liquidator of a multi-state cooperative society which is wound up" are dealt with in one of two ways:
| Case | What happens |
|---|---|
| (a) The bye-laws specify the purpose for which surplus shall be utilised | The surplus "may ... be utilised by the Central Registrar for the said purpose" |
| (b) The bye-laws do not specify a purpose | The surplus is to "be divided by the Central Registrar with the previous sanction of the Central Government, amongst the members of such multi state cooperative society in such manner as may be prescribed" |
Clause (a) says "may" and clause (b) says "be divided"; the section does not say what happens if the bye-laws specify a purpose and the Central Registrar does not use the surplus for it. The manner of division is left to rules, and the Rules, 2002 as amended should be checked. This article gives no rule detail.
Section 90(2)(k) also lets the liquidator, "after consulting the members", dispose of the surplus "in such manner as may be prescribed". Two provisions therefore speak of disposal of the surplus; the text does not reconcile them and this article does not do so. See our article on powers of the liquidator.
Example. The invented Ganga Multi-State Weavers' Society is wound up and the liquidator's report shows a surplus. Its bye-laws say any surplus is to go towards weavers' training. Under s.91(a) the Central Registrar may use the surplus for that purpose. Had the bye-laws said nothing, s.91(b) would call for division among the members with the Central Government's previous sanction. Questions like this are often worth raising early through legal consultation.
Section 92: priority of contributions
"Notwithstanding anything contained in any law relating to insolvency, the contribution assessed by a liquidator shall rank next to debts due to the Central Government or a State Government or a local authority in accordance with the order of priority in insolvency proceedings."
Two points. The non-obstante clause overrides the insolvency laws on this point. And the ranking is "next to" debts due to the Central Government, a State Government or a local authority; it is placed second, "in accordance with the order of priority in insolvency proceedings". The sources do not describe that order, and the reader should check the current law for the corresponding provisions on insolvency.
Section 93: cancellation of registration and dissolution
Sub-section (1): "The Central Registrar may, after considering the report of the liquidator made to him under sub-section (3) of section 90, order the registration of the multi state cooperative society to be cancelled and on such cancellation, that society shall stand dissolved."
Sub-section (2): "An order passed under sub-section (1) shall be communicated by registered post to the president or the chairperson as the case may be, of the multi-state cooperative society and to the financial institutions, if any, of which the society was a member."
| Step | Section |
|---|---|
| Winding-up order | s.86 |
| Liquidator appointed | s.89 |
| Assets realised and claims dealt with | s.90 |
| Report to the Central Registrar | s.90(3) |
| Surplus used or divided | s.91 |
| Registration cancelled; society dissolved; order sent by registered post | s.93 |
The wording "may ... order the registration ... to be cancelled" makes the cancellation a power, not a duty. The text does not say whether cancellation must wait for surplus disposal under s.91, and this article does not infer an order of events beyond the table, which follows the section references only.
The communication goes to "the president or the chairperson as the case may be" and, in s.86(4), the winding-up order itself goes by registered post to the society and the financial institutions of which it is a member. The two registered-post provisions are parallel in wording.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| Section 91 | As printed above | Not amended |
| Section 92 | As printed above | Not amended |
| Section 93 | As printed above | Not amended |
Around them, the 2023 Act amended s.86 (grounds for winding up) and added s.120B (Banking Regulation Act, 1949 for societies carrying on banking); see our article on winding up of multi-State co-operative societies.
Need help closing a society or claiming a share?
Members, creditors and officers often ask what happens to what is left. If you need the bye-laws, the liquidator's report and the sanction steps read together, you can approach us for legal consultation.
Key takeaways
- Surplus goes to the purpose in the bye-laws if one is specified; otherwise it is divided among members with the Central Government's previous sanction.
- Section 92 ranks the liquidator's assessed contributions next to dues of the Central Government, a State Government or a local authority.
- After the liquidator's report under s.90(3), the Central Registrar may cancel registration and the society stands dissolved.
- The order of cancellation goes by registered post to the president or chairperson and to the society's financial institutions.
- None of the three sections was amended in 2023.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Section 90: powers of the liquidator
- Section 86: winding up of multi-State co-operative societies
- Sections 94 and 95: execution of decisions and orders
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.