In Brief
A Multi-State Co-operative Society (credit union) sought to acquire a textile manufacturer through insolvency proceedings. The Supreme Court clarified that the phrase "same line of business" under Section 64(d) of the Co-operative Societies Act requires substantial alignment between the buyer's core activities and the target company's operations. A credit society's incidental textile unit does not qualify it to acquire a large industrial textile manufacturer. The Court held that a society's bye-laws—specifically its core business objectives—must genuinely permit the investment. Amending investment provisions without expanding core business objects is insufficient. The ruling protects cooperative members' funds from unrelated, risky ventures.
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