Section 48 of the Co-operative Societies Act, 1912 - Companies Law Exclusion

Section 48 separates a society registered under the Co-operative Societies Act, 1912 from the company-law regime referred to in the original enactment. The provision states that the Indian Companies Act, 1882 does not apply to registered societies.

Text of Section 48

Section 48 - Indian Companies Act, 1882, not to apply.

The provisions of the Indian Companies Act, 1882 (6 of 1882), shall not apply to registered societies.

Meaning of Section 48

The expression "registered societies" refers, in the context of the 1912 Act, to co-operative societies registered under that statutory framework. Section 48 makes clear that such a society is governed as a co-operative society rather than being treated as a company merely because it is an incorporated or organised body.

The reference to the Indian Companies Act, 1882 is historical. The 1882 company legislation was replaced by later company laws. Accordingly, Section 48 should be read in its statutory and historical context and together with the co-operative law currently applicable to the society concerned.

Current legal context

Co-operative societies whose objects are confined to one State are ordinarily governed by the co-operative societies law of that State. Societies whose objects extend to more than one State are governed by the Multi-State Co-operative Societies Act, 2002.

For multi-State co-operative societies, Section 121 of the Multi-State Co-operative Societies Act, 2002 now provides, after the 2023 amendment, that the Companies Act, 2013 and the Competition Act, 2002 do not apply to multi-State co-operative societies. The 2002 Act therefore contains a modern statutory exclusion dealing expressly with company law for societies within its field of operation.

Important: Section 48 should not be read as a universal statement that every law applicable to companies can never affect a co-operative society. The governing statute, the type of society, its area of operation and any other special legislation applicable to its activities must be examined.

Why the provision matters

The section reflects the distinct legal character of co-operative societies. Their registration, membership, management, rights, liabilities, audit, dispute resolution and winding-up are primarily regulated by the applicable co-operative societies legislation and rules rather than by the general company-incorporation framework.

Related provisions

For the surrounding provisions of the 1912 Act, see Section 47 - Prohibition of the use of the word co-operative and Section 49 - Saving of existing societies.

Official resources

For current central law governing multi-State co-operative societies, refer to the Multi-State Co-operative Societies Act, 2002 on India Code and the Central Registrar of Co-operative Societies. These official resources are useful for checking the current statutory framework, amendments and regulatory information.