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The Supreme Court today struck down Part IX B of the Constitution of India inserted by 97th Constitutional Amendment Act, 2011 which deals with Co Operative societies.

The judgement was pronounced by a bench of Justice RF Nariman, Justice KM Joseph and Justice BR Gavai. 

The majority comprising Justice RF Nariman and Justice BR Gavai struck down part IX B introduced by the amendment whereas Justice KM Joseph in a dissent struck, down the entire amendment.

“I have struck down part IX (B) as far as cooperative societies are concerned, Justice KM Joseph has given a dissenting judgement where the entire Constitutional Amendment has been struck down,” said Justice Nariman while pronouncing the Judgement.

Question before the Court was whether ratification by states is needed for the Constitution Amendment on Cooperative Societies.

The Top Court was hearing an appeal against the Gujarat High Court verdict delivered in 2013 where the petitioner Rajendra N Shah had challenged the validity of the 97th Constitutional Amendment Act, 2011. 

The High Court had struck down Part IX B as unconstitutional as it did not go through the special procedure of amendment contemplated under the proviso to Article 368 (2).

The 97th Constitutional Amendment Act, 2011 specifically dealt with the subject of cooperative Societies. The three changes introduced by the amendment were: 

• Right to form cooperative societies was made a fundamental right under Article 19 (1) (c)
• A directive principle of state policy was inserted mandating the state ‘to promote voluntary formation, autonomous functioning, democratic control and professional management of cooperative societies’ (Article 43B)
• Insertion of a new part (Part IX B) titled the cooperative societies. The provisions in Part IX B mandated periodic elections to the director board, prescribed the maximum number of directors, provided for mandatory inclusion of women and persons belonging to Scheduled Castes and Scheduled Tribes in the director board, compulsory annual auditing, convening of annual general body meetings etc

Case Title: Union of India v. Rajendra N Shah|CA No 9108-9109/2014

[JUDGEMENT COPY AWAITED]