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SC upheld validity of 97th constitutional amendment | Effective management of co-op societies

Case Law Details

TaxGuru Citation
2021 taxguru.in 1625
Case Name
Union of India Vs Rajendra N Shah & Anr. (Supreme Court of India)
Date of Judgement/Order
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Union of India Vs Rajendra N Shah & Anr. (Supreme Court of India)

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.  Supreme Court verdict came on the Centre’s plea challenging the Gujarat High Court’s decision dated; 22.04.2013 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.

The important question raised in these petitions and decided by a division bench of the Gujarat High Court by the impugned judgment dated 22.04.2013 is whether Part IXB is non est for want of ratification by half of the States under the proviso to Article 368(2). The impugned judgment of the High Court has declared that the said constitutional amendment inserting Part IXB is ultra vires the Constitution of India for want of the requisite ratification under Article 368(2) proviso, which however will not impact amendments that have been made in Article 19(1)(c) and in inserting Article 43B in the Constitution of India.

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