A Co-operative Society is a  business entity,  but there might come a situation in its career when its business may  close down or fail and its assets that it owns may have to be apportioned in order to set off its liabilities. This process under the provisions of Section 78 of the ibid Act (read with Rule 104) is known as dissolution or winding up process.  Order of winding up of a Co-operative Society is made by the Registrar ( Section 78 read with Rule 104) when he is satisfied that the society has not commenced working within a period of 12 months from the date of registration; has ceased working and not carried on business during the previous 18 months, among others.

                        No Civil or Revenue Court has any jurisdiction in respect of any matter concerning the winding up and the dissolution of a society, and further that no suit or other legal proceedings relating to the business of such society shall be proceeded with or instituted against the Liquidator as such, or against the society or any member thereof, except by leave of the Registrar and subject to such terms as he may impose as provided for under sections 84 and 92 respectively.