1. Introduction
1.1 The recent judgment delivered by the Hon’ble Supreme Court (“Hon’ble SC”) in Nirmal Ujjwal Credit Co-Operative Society Ltd. v. Ravi Sethia & Ors., 2026 SCC OnLine SC 556, provides significant clarity on the eligibility of Multi-State Co-operative Societies (“Society / Societies”) to participate as resolution applicants in corporate insolvency resolution processes (“CIRP”). In rendering the judgment, the Hon’ble SC examined the scope, objectives, and interplay of two distinct statutory frameworks, namely the Insolvency and Bankruptcy Code, 2016 (“IBC”) and the Multi-State Co-operative Societies Act, 2002 (“MSCS Act”), each of which operates within a separate legislative domain and pursues different policy objectives. While the IBC seeks to maximize the value of distressed assets through a broad and inclusive resolution mechanism, the MSCS Act imposes investment-related restrictions intended to safeguard members’ funds from exposure to speculative or high-risk
