A Corporate Debtor who is a Co-Operative Society does not come under the purview of the Code and therefore the CIRP cannot be initiated under IBC – The Solapur Dist. Central Co – Operative Bank Ltd. Vs. M/s Swami Samarth Sahakari Sakhar Karkhana Ltd. – NCLT Mumbai Bench
The Adjudicating Authority has relied upon the Judgment of Hon’ble NCLAT in the matter of Asset Reconstruction Company (India) Ltd. v. Mohammadiya Educational Society (2021) ibclaw.in 361 NCLAT. The issue before the Hon’ble NCLAT was whether a society registered under the Societies Registration Act would fall under the definition of a corporate person under the Code. It held that the Corporate Debtor who is a Co-Operative Society registered/incorporated under the Maharashtra State Co-Operative Societies Act, 1960, does not come under the purview of the Code and therefore the CIRP cannot be initiated against the Corporate Debtor.
