#MSCS Act

The Supreme Court has ruled that a Multi-State Co-operative Society cannot submit a resolution plan under the IBC unless its bye-laws explicitly permit activities substantially similar to the corporate debtor’s business. This clarifies that object clauses-not general investment powers-define the legal line of business, directly impacting cooperative societies seeking to participate in corporate insolvency resolutions.

Bombay High Court sets aside arbitral award against directors lacking privity of contract or statutory liability under MSCS Act, reinforcing party autonomy in arbitration.

Bombay High Court holds that multi-state co-operative banks may opt for arbitration under MSCS Act instead of RDB Act or SARFAESI proceedings, affirming statutory choice and non-obstante clause validity.