SC by majority quashes part of 97th amendment on coop societies

The Supreme Court on Tuesday by a majority of 2:1 struck down a part of the 97th Constitutional amendment on the cooperatives that deals with terms of office-bearers and members of the cooperative societies for their effective management limited to one state even while upholding the validity of the amendment.

A bench comprising Justice Rohinton Fali Nariman, Justice K. M. Joseph and Justice B.R.Gavai said, “We have struck down part IX B of the Constitution related to cooperative societies (operating within a state) but we have saved the amendment.”

Rejecting the argument by the Centre that the Constitution’s 97th amendment has not been challenged by any of the states, Justice Nariman speaking for majority said, “When a citizen of India challenges a constitutional amendment as being procedurally infirm, it is the duty of the court to examine such challenge on merits as the Constitution of India is a national charter of governance affecting persons, citizens and institutions alike.”

Making a distinction between multi-state cooperative societies and those limited to one state alone, the court said, “We declare that Part IXB of the Constitution of India is operative insofar as multi-state co-operative societies are concerned.”

Having said this, the majority judgment in conclusion says, “The judgment of the High Court is upheld except to the extent that it strikes down the entirety of Part IX B of the Constitution of India. As held by us above, it is declared that Part IX B of the Constitution of India is operative only insofar as it concerns multi-state cooperative societies both within the various states and in the Union territories of India.”

The verdict came on the Centre’s plea challenging the Gujarat High Court’s 2013 decision striking down certain provisions of the amendment while holding that Parliament cannot enact laws with regard to cooperative societies as it is in the list of state subject.

The Court found that the amendment does not denude the states of their exclusive power to enact laws to deal with the management of cooperative societies.

Justice Joseph has struck down the entire

97th Constitutional amendment in his partly dissenting verdict.

The amendment was passed by Parliament in December 2011 and had come into effect from February 15, 2012.

It amended Article

19(1)(c) to give protection to the cooperatives and inserted Article 43 B and Part IX B, relating to them.