In Brief
The Supreme Court clarified that state reorganisation alone does not automatically convert a cooperative society registered under a State Act into a multi-State entity under the Central Act. The Court held that Section 103 of the Multi-State Cooperative Societies Act, 2002 applies only where a society's objects—not merely its area of operation—extend beyond one state. A cooperative sugar factory's objects remained confined to Uttar Pradesh despite some sugarcane sourcing from Uttarakhand after bifurcation. The Court distinguished objects from area of operation, rejecting the view that member residence in multiple states triggers deemed conversion. This preserves state legislative competence and respects federal balance by requiring clear statutory nexus to multi-state operations.
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