The Supreme Court on July 20 in a 2:1 majority verdict upheld the validity of the 97th constitutional amendment that deals with issues related to effective management of cooperative societies but struck down a part inserted by it which relates to the Constitution and working of cooperative societies.
A Bench of Justices R.F. Nariman, K.M. Joseph and B.R. Gavai which pronounced the verdict said, “We have struck down part IX B of the Constitution related to cooperative societies but we have saved the amendment.”
Justice Nariman said, “Justice Joseph has given a partly dissenting verdict and has struck down the entire 97th constitutional amendment.”
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The 97th constitutional amendment, which dealt with issues related to effective management of co-operative societies in the country was passed by Parliament in December 2011 and had come into effect from February 15, 2012.
The change in the Constitution has amended Article 19(1)(c) to give protection to the cooperatives and inserted Article 43 B and Part IX B, relating to them.
The Centre has contended that the provision does not denude the States of its power to enact laws with regard to cooperatives.
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The top court’s verdict came on the Centre’s plea challenging the Gujarat High Court’s 2013 decision striking down certain provisions of the 97th constitutional amendment while holding that Parliament cannot enact laws with regard to cooperative societies as it is a State subject.