Section 41 of the Co-operative Societies Act, 1912 - Effect of Cancellation of Registration

Section 41 states the legal effect of cancellation of a co-operative society's registration. Once cancellation takes effect under the applicable provision, the society ceases to exist as a corporate body. The precise date depends on whether cancellation is under Section 39 or Section 40.

Text of Section 41 - Effect of cancellation of registration

Where the registration of a society is cancelled, the society shall cease to exist as a corporate body-

(a) in the case of cancellation in accordance with the provisions of section 39, from the date the order of cancellation takes effect;

(b) in the case of cancellation in accordance with the provisions of section 40, from the date of the order.

Meaning and effect of Section 41

The expression "cease to exist as a corporate body" means that the registered society no longer continues with the corporate status conferred by registration under the Act from the date specified by Section 41. The section therefore fixes the point of time at which the corporate existence of the society ends after cancellation.

Section 41 does not itself create the grounds or procedure for cancellation. Those matters are dealt with principally in Sections 39 and 40. Section 41 determines the consequence and effective date after cancellation under either of those provisions.

Cancellation under Section 39

Section 39 deals with dissolution following an inquiry or inspection and provides a mechanism for cancellation of registration. Where cancellation occurs under Section 39, Section 41(a) provides that the society ceases to exist as a corporate body from the date on which the cancellation order takes effect. The timing must therefore be read with the provisions of Section 39 governing when such an order becomes effective.

Cancellation under Section 40

Section 40 applies where registration is subject to the society having at least ten members and the number of members is proved to the Registrar's satisfaction to have fallen below ten. The Registrar may then cancel registration by an order in writing. Under Section 41(b), the society ceases to exist as a corporate body from the date of that order.

What happens after cancellation?

Section 42 should be read with Section 41. Where registration is cancelled under Section 39 or Section 40, Section 42 authorizes the Registrar to appoint a competent person as liquidator and specifies powers connected with winding up the society's affairs. Thus, cancellation of corporate status and the winding-up process are related but separately addressed by the Act.

Key points

Section 41 deals with the effect of cancellation, not the independent grounds for cancellation.
For cancellation under Section 39, corporate existence ends when the cancellation order takes effect.
For cancellation under Section 40, corporate existence ends from the date of the cancellation order.
Section 42 contains the connected provisions concerning winding up and appointment of a liquidator.

State law note: Co-operative societies are also governed by State-specific co-operative societies legislation. Before relying on this provision for a transaction, proceeding or filing, check the law applicable to the State or Union Territory concerned and any later amendments or local enactments.

Official text and legal reference

The official India Code publication identifies the enactment as the Co-operative Societies Act, 1912, Act No. 2 of 1912, enacted on 1 March 1912. The official text should be consulted for authoritative statutory wording and amendment notes.

Official India Code - Co-operative Societies Act, 1912

Legal text reviewed against the official India Code publication. Page updated: 21 September 2026.