Section 90 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 90 vests the whole of a wound-up society's assets in the liquidator and lists twelve further powers, from suing in the society's name to assessing member contributions and compromising claims, all subject to the control of the Central Registrar. It ends with the liquidator's final report.
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 90 was not amended in 2023.
From the date the order takes effect, the whole of the society's assets vest in the liquidator, who may realise them by sale or otherwise, "subject to any rules made in this behalf". Under the control of the Central Registrar, he may sue and defend, assess contributions, decide priorities, pay claims, compromise and dispose of surplus after consulting members. When the affairs are wound up he reports to the Central Registrar and deposits the records where directed.
Section 90(1): vesting and realisation
"Subject to any rules made in this behalf, the whole of the assets of a multi-state cooperative society in respect of which an order for winding up has been made, shall vest in the liquidator appointed under section 89 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise." The date matters: the order takes effect as s.89(3) provides, so an appeal under s.99(1)(f) can delay it. Our article on appointment of the liquidator explains that. The rules made on this subject are not in the sources; detail is left to rules, and the Rules, 2002 as amended should be checked.
Section 90(2): the liquidator's twelve powers
All are "subject to the control of the Central Registrar".
| Clause | Power |
|---|---|
| (a) | Institute and defend suits and other legal proceedings for the society "by the name of his office" |
| (b) | Determine the contribution (including debts due and costs of liquidation) to be made or remaining to be made by members, past members, estates, nominees, heirs or legal representatives of deceased members, or officers or former officers |
| (c) | Investigate all claims against the society and, subject to the Act, decide questions of priority between claimants |
| (d) | Pay claims, including interest up to the date of winding up, according to priorities "in full or rateably", as assets permit; apply any surplus to interest from the date of the order at a rate fixed by him, "not exceeding the contract rate in any case" |
| (e) | Determine by whom and in what proportions the costs of liquidation are to be borne |
| (f) | Determine whether any person is a member, past member or nominee of a deceased member |
| (g) | Give directions on collection and distribution of the assets |
| (h) | Carry on the society's business "so far as may be necessary for the beneficial winding up" |
| (i) | Compromise with creditors or persons claiming to be creditors, for present or future claims |
| (j) | Compromise with any person who has a dispute with the society, and refer the dispute for decision |
| (k) | After consulting the members, dispose of the surplus remaining after paying claims, "in such manner as may be prescribed" |
| (l) | Compromise calls, liabilities to calls, debts and claims between the society and a contributory or other debtor, on agreed terms, take security and give a complete discharge |
Clause (k) ends with a full stop in the print and clause (l) continues the list; this article reads (l) as another power in the same list, as printed.
Example. The invented Sutlej Multi-State Credit Society has a defaulting member, Harpreet, whose debt is disputed. Under clause (b) the liquidator determines the contribution Harpreet is to make; under clause (j), if there is a dispute, he may compromise with Harpreet or refer the dispute for decision. All of it is subject to the Central Registrar's control. A member or officer who is assessed, and wishes to contest it, can look to legal dispute resolution to see the options under the Act.
Several of these powers look to other provisions. Disputes between a liquidator and others fall within s.84 (see our article on reference of disputes to arbitration). Priority of the liquidator's contributions is in s.92 and disposal of surplus assets in s.91; see the combined article on surplus assets, priority and cancellation.
Section 90(3): report and records
"When the affairs of a multi-state cooperative society have been wound up, the liquidator shall make a report to the Central Registrar and deposit the records of the society in such place as the Central Registrar may direct." This report is the one that s.93(1) later refers to when the Central Registrar considers cancelling registration, and the one s.91 relies on for surplus assets.
Points to watch
- "Under the control of the Central Registrar": the section does not say how the control is exercised, whether by prior approval or by review. Only the carrying on of business in s.89(2) mentions "previous approval".
- The section makes no mention of a creditors' committee or a court; it does not provide for either.
- Contributions assessed under clause (b) are the same ones that rank under s.92 "next to debts due to the Central Government or a State Government or a local authority".
- The text of clause (d) describes interest in two stages, up to winding up and from the order. This article does not compute either.
What the 2023 Amendment Act changed
| Provision | Before | After |
|---|---|---|
| Section 90 | As printed above | Not amended |
| Section 104(3) | Fine for an officer or custodian who fails to hand over custody under certain sections | Amended in 2023 to extend to a person required to file a return under s.120 and to raise fines; see the s.104 article |
Need help with a liquidation or a contribution order?
Members, past members, officers and creditors are all affected by what a liquidator decides. If you have received an assessment or a claim decision, our team can read it against the Act and the records through legal dispute resolution.
Key takeaways
- Assets vest in the liquidator from the date the winding-up order takes effect.
- The liquidator's powers are subject to the control of the Central Registrar.
- He assesses contributions of members, past members, heirs and officers, and decides priorities between claimants.
- He may compromise, carry on business so far as necessary, and dispose of surplus after consulting members as prescribed.
- A final report goes to the Central Registrar, with the records deposited where he directs.
Read next
- Multi-State Co-operative Societies Act, 2002: complete guide
- Section 89: appointment of liquidator
- Sections 91 to 93: surplus assets, priority of contributions and cancellation
- Section 84: reference of disputes to arbitration
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.