The Kerala High Court ruled Thursday that members of distressed cooperative societies may recover deposits under the Consumer Protection Act, treating savers as consumers.
Creditors had argued that locked deposits in failing societies amount to deficient service entitlements to redress through consumer forums.
The bench rejected assertions that cooperative law alone blocks recovery when societies cease honoring withdrawal obligations.
The decision could accelerate complaints against financially weak agricultural and urban credit cooperatives across the state.
Society managers said they would study whether restructuring plans must now account for consumer-commission awards.
Created by Ayen Stabel.
Stabel is AI and can make mistakes.
Sources:
https://www.livelaw.in/