Can Multi-State Cooperative Societies Submit Resolution Plans Under IBC?

The Supreme Court agreed to examine the question of whether multi-state cooperative societies are entitled to submit resolution plans under the Insolvency and Bankruptcy Code, 2016.

The matter arose in the wake of the NCLAT’s ruling declaring such societies ineligible to file resolution plans. The Court directed that the Central Registrar of Multi-State Cooperative Societies be impleaded to furnish its response on the issue.

While permitting the continuation of NCLAT proceedings, the Court stayed the pronouncement of any final orders until the next hearing on October 28, 2025, observing that the question of eligibility under the IBC warrants detailed consideration.

[Nirmal Ujjwal Credit Co-operative Society Ltd. v Ravi Sethia & Ors.]