Section 9 of MSCS Act, 2002 : Section 9: Multi-State Co-Operative Society To Be Body Corporate

Explanation using Example

Imagine a group of farmers from different states decide to form a cooperative society to market their produce effectively. They register their society as "Green Farming Multi-State Co-op" under the Multi-State Co-operative Societies Act, 2002. Once registered, "Green Farming Multi-State Co-op" becomes a legal entity that can own land, open bank accounts, and enter into contracts with suppliers and buyers. It can also sue if a supplier fails to deliver promised fertilizers, or be sued if it does not pay for services rendered to it. The society's registration gives it a structured legal status to operate across state borders.

Additionally, if the farmers had already started some joint initiatives before registration, such as bulk purchasing of seeds in anticipation of forming the co-op, those actions are considered legally binding on the "Green Farming Multi-State Co-op" after its registration. This means the suppliers of those seeds can expect payment from the cooperative society, not just from the individual farmers.