The Supreme Court of India has elucidated the legal principles governing the investment of funds by Multi-State Co-operative Societies (MSCS), specifically interpreting the restrictive expression “any other institution in the same line of business” under Section 64(d) of the Multi-State Co-operative Societies Act, 2002.
A Bench comprising Justice J.B. Pardiwala and Justice K.V. Viswanathan clarified that for an MSCS to invest in another institution, there must be a “substantial or predominant, or closely related sameness in business activities,” as determined by the society’s bye-laws. While the Court permitted the appellant, M/s Nirmal Ujjwal Credit Co-operative Society Ltd., to withdraw its appeal following recent…