A Bench of Justices JB Pardiwala and KV Viswanathan clarified that while co-operative societies are not barred from participating in the corporate insolvency resolution process (CIRP) as resolution applicants, their eligibility is conditional upon compliance with statutory restrictions governing investment of funds.
“Section 64(d) of the 2002 Act permits an MSCS to invest or deposit its funds in two distinct categories of institutions: (a) a subsidiary institution, and (b) any other institution in the same line of business,” the Court held.