Scope of liquidation bar under co-operative law remains unsettled as FIR and criminal proceedings issue goes to a larger Bench.

Section 50(2) of the Bihar Self Supporting Co-operative Societies Act, 1996 was examined for its scope over FIRs and criminal proceedings against a co-operative society and its office-bearers. The Court analysed Chapter X, the liquidator's powers and the jurisdictional bar, and compared the wording with Section 446 of the Companies Act, 1956 and authorities on the phrase "other legal proceedings." It stated that it could not agree with the earlier co-ordinate Bench view that the bar extends to criminal proceedings or the lodging of an FIR, but it did not finally decide the point. The issue was directed for consideration by a Division Bench.

---

---

Issues: Whether sub-section (2) of Section 50 of the Bihar Self Supporting Co-operative Societies Act, 1996 bars lodging of a first information report and covers criminal proceedings against the co-operative society, its directors, officers, managers or members.

Analysis: The Court considered the scheme of Chapter X of the Bihar Self Supporting Co-operative Societies Act, 1996, including the powers and duties of the liquidator and the bar of jurisdiction in Section 50(2). It also examined the comparable scheme of Section 446 of the Companies Act, 1956 and the reasoning of authorities dealing with the expressions "other legal proceedings" and the scope of liquidation-related bars. On that basis, the Court expressed inability to agree with the earlier co-ordinate Bench view that Section 50(2) would extend to criminal proceedings or to the lodging of an FIR. At the same time, the Court did not finally decide the question itself and found that the issue required consideration by a Division Bench.

Conclusion: The question whether Section 50(2) bars an FIR and criminal proceedings was not finally answered in this judgment and was directed to be placed before the Chief Justice for reference to a Division Bench.

Final Conclusion: The judgment does not finally adjudicate the substantive statutory bar question and instead sends the matter for authoritative consideration by a larger Bench.

---