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Swati (General Manager)     14 September 2011

Cooperate industry liquadation rules



I want to know what happen to all of employees, if some cooperative Fedration goes in liquidation state.Is all Employees left unemployed or goverment take responsibility to depute them in some other department.

is there any rule related to employee jobs status.


Thanks in advance.


 2 Replies

shankar (advocate)     14 September 2011

status of Official Liquidator:   As per the definition, the official liquidator i an officer under the Act, but the qeustion whether notice under Section 80 CPC, is necessary to file a suit againt the official liquidator is amatter on which conflicting opinions have been expressed in abdul Ghani Vs. Anuman-delhi Imdad Bahmi Ghuinke Sharqui, AIR 1942 Lah, 287  a view has been taken that the official liquidator is a public officer.  On the other hand in Kappu Govinda Chettiar Vs. Uttukottai Co-operative Society, 1940 Mad.831 and Jhansi Co-operative Oil Mills Vs.Lala Makhan Lal, AIR 1957 All.492 a contrary view that the officail liquidator is not a public officer has been taken.


K C S Kutty, Pune (Faculty )     15 October 2011

Cooperative Federations are registered under the Cooperative Societies Act of the concerned State or Multi State Cooperative Societies Act 2002, in case the Federation is operating in two or more States.  

Liquidator is appointed by the Registrar of Cooperative Societies to wind up the society and to realise the assets and discharge the liabilities.  

All the monetary claims of the Employees are settled by the Liquidator subjec to to availability of funds. 

There is no provision in the Cooperative Societies Act for providing employment by absorbing in any other department or organisation. It is upto the Govt. to decide on this issue. 


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