Supreme Court Upholds Constitutional Amendment on Co-operative Societies — Addresses Legislative Powers and Ratification Issues.

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Case Note & Summary

The case involved appeals concerning the constitutional validity of the Constitution (Ninety Seventh Amendment) Act, 2011, which introduced Part IXB related to co-operative societies. The Gujarat High Court had previously declared this amendment ultra vires for lack of ratification by half of the States as required under Article 368(2). The Supreme Court heard arguments from both sides regarding the implications of this amendment on the legislative powers of the States and the federal structure of the Constitution. The Union of India argued that the amendment aimed to enhance the functioning of co-operative societies and did not infringe upon State powers, as it was enacted following extensive consultations with State Governments. The Attorney General contended that the amendment's provisions were essential for the democratic functioning of co-operatives and that many States had already enacted laws in line with the amendment. Conversely, the respondents argued that the amendment curtailed State legislative powers and thus required ratification. The Supreme Court analyzed the legislative framework and the nature of the amendment, ultimately holding that it did not require ratification and was constitutionally valid, thereby upholding the amendment's provisions (Paras 1-14).

Headnote

A) Constitutional Law - Amendment Validity - Requirement of Ratification - Constitution (Ninety Seventh Amendment) Act, 2011, Article 368(2) - The court examined whether the amendment inserting Part IXB required ratification by States, concluding that it did not, as it did not alter the federal structure or legislative powers of the States. Held that the amendment was valid and did not necessitate ratification (Paras 2-8).

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Issue of Consideration

Whether Part IXB of the Constitution (Ninety Seventh Amendment) Act, 2011 requires ratification by half of the States under Article 368(2).

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Final Decision

The Supreme Court upheld the Constitution (Ninety Seventh Amendment) Act, 2011, ruling that it did not require ratification by the States and was constitutionally valid.

Law Points

  • Constitutional validity
  • legislative powers
  • ratification
  • co-operative societies
  • federal structure
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Case Details

2021 LawText (SC) (7) 30

Civil Appeal Nos. 9108-9109 of 2014

2021-10-12

R.F. Nariman

K.K. Venugopal, Prakash Jani, Masoom K. Shah, Ritika Sinha

Union of India

Rajendra N Shah & Anr.

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Nature of Litigation

Constitutional validity of an amendment to the Constitution concerning co-operative societies.

Remedy Sought

Union of India sought to uphold the constitutional amendment.

Filing Reason

The Gujarat High Court declared the amendment ultra vires for lack of ratification.

Previous Decisions

The High Court's decision was based on the requirement of ratification under Article 368(2).

Issues

Whether the amendment requires ratification by States Impact of the amendment on State legislative powers

Submissions/Arguments

The amendment enhances democratic functioning of co-operatives The amendment curtails State powers and requires ratification

Ratio Decidendi

The amendment did not alter the federal structure or legislative powers of the States, thus not requiring ratification under Article 368(2).

Judgment Excerpts

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). The Constitution 97th Amendment Act sought to achieve vital social and economic objectives in regard to the functioning of co-operative societies in India.

Procedural History

The Gujarat High Court declared the amendment ultra vires on 22.04.2013, leading to appeals filed by the Union of India.

Acts & Sections

  • Constitution of India: Article 368, Article 19(1)(c), Article 43B
  • Constitution (Ninety Seventh Amendment) Act: Part IXB
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