Cooperative societies: India

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This is a collection of articles archived for the excellence of their content.

The legal position

SC strikes down Part of 97th amendment on co-op societies/2021

July 21, 2021: The Times of India

The Supreme Court struck down Part IXB of the 97th constitutional amendment, brought by the Centre for effective management of cooperative societies, on the ground of procedural infirmity as it was not ratified by states as per Article 368(2), as the legislative head ‘cooperative societies’ is there in List II of 7th Schedule.

A three judge bench of Justices RF Nariman, KM Joseph and BR Gavai, by majority, confined its judgment to the procedural aspect pertaining to Article 368(2) which says the amendment shall also require to be ratified by the legislature of not less than one half of the states. Justices Nariman and Gavai only quashed Part IXB of the amendment but Justice Joseph struck down the entire amendment on the basis of violation of the basic structure.

“The judgment of the HC is upheld except to the extent that it strikes down the entirety of Part IXB of the Constitution. It is declared that Part IXB of the Constitution is operative only insofar as it concerns multi-state cooperative societies both within the states and in UTs,” Nariman said. The court passed the order on an appeal filed by Centre challenging Gujarat HC verdict declaring the amendment as unconstitutional.

Norms for removal of office bearers

The Times of India

Mar 20 2015

SC norms on axing co-op body members

The Supreme Court laid down a slew of guidelines on removal of an officebearer in a cooperative society , including that a motion of no-confidence against a person “shall“ be moved only after two years of his assuming the office. The guidelines were issued in a verdict by which the SC dismissed an appeal of Vipulbhai M Chaudhary , ex-chairman of the Gujarat Cooperative Milk Marketing Federation that markets its products under the Amul brand, against his ouster from the office after a no confidence motion was passed against him. The SC bench upheld the decision of the Gujarat HC and issued guidelines to regulate removal of members from cooperative societies.