Case Note & Summary
The petitioner, Arun Yashwant Kulkarni, filed a writ petition under Article 226 of the Constitution of India challenging the constitutional validity of the proviso to Section 73AAA(3) and proviso to Section 73CB(15) of the Maharashtra Co-operative Societies Act, 1960, as inserted by Maharashtra Ordinance No.XII of 2020. The petitioner contended that these provisions, which extended the term of managing committees of cooperative societies whose terms had expired, were ultra vires Articles 14, 19(1)(c), 243-ZJ and 243-ZK of the Constitution. The petitioner sought a declaration that the impugned provisions are unconstitutional and a direction to appoint administrators or committees of administrators to manage the affairs of cooperative societies whose terms had expired. The respondents, including the State of Maharashtra, the Commissioner of Cooperation and Registrar of Cooperative Societies, and the Maharashtra State Co-operative Election Authority, defended the validity of the provisions. The High Court, after hearing the parties, held that the impugned provisions are constitutionally valid. The Court reasoned that the State Legislature has legislative competence to enact laws with respect to cooperative societies under Entry 32 of List II of the Seventh Schedule. The right to form associations under Article 19(1)(c) is subject to reasonable restrictions, and the extension of the term of managing committees is a reasonable restriction aimed at ensuring continuity and stability in the management of cooperative societies. The classification between societies whose terms have expired and those whose terms have not expired is reasonable and has a rational nexus with the object of the legislation. The provisions of Part IXB of the Constitution are not exhaustive and do not preclude the State from enacting laws on matters not covered therein. The Maharashtra Ordinance No.XII of 2020 was validly promulgated and subsequently replaced by the Maharashtra Co-operative Societies (Amendment) Act, 2020. The Court dismissed the writ petition and upheld the validity of the impugned provisions.
Headnote
A) Constitutional Law - Legislative Competence - Maharashtra Ordinance No.XII of 2020 - The State Legislature has competence to enact laws with respect to cooperative societies under Entry 32 of List II of the Seventh Schedule to the Constitution of India. The impugned provisions are within the legislative competence of the State Legislature and do not encroach upon any field occupied by Parliament. (Paras 10-15) B) Constitutional Law - Right to Form Associations - Article 19(1)(c) - The right to form associations under Article 19(1)(c) is not absolute and is subject to reasonable restrictions under Article 19(4). The impugned provisions extending the term of managing committees do not destroy the right to form associations but merely regulate the tenure of committees in the interest of proper administration and continuity. (Paras 16-22) C) Constitutional Law - Equality Before Law - Article 14 - The classification between cooperative societies whose terms have expired and those whose terms have not expired is reasonable and has a rational nexus with the object of ensuring continuity and stability in the management of cooperative societies. The impugned provisions do not violate Article 14. (Paras 23-28) D) Constitutional Law - Part IXB - Articles 243-ZJ and 243-ZK - The provisions of Part IXB of the Constitution relating to cooperative societies are not exhaustive and do not preclude the State Legislature from enacting laws on matters not covered therein. The impugned provisions are not inconsistent with Articles 243-ZJ and 243-ZK. (Paras 29-35) E) Constitutional Law - Ordinance - Validity - The Maharashtra Ordinance No.XII of 2020 was validly promulgated by the Governor under Article 213 of the Constitution and has been subsequently replaced by the Maharashtra Co-operative Societies (Amendment) Act, 2020. The ordinance was within the legislative competence of the State and did not suffer from any constitutional infirmity. (Paras 36-40)
Issue of Consideration
Whether the proviso to Section 73AAA(3) and proviso to Section 73CB(15) of the Maharashtra Co-operative Societies Act, 1960, as inserted by Maharashtra Ordinance No.XII of 2020, are ultra vires Articles 14, 19(1)(c), 243-ZJ and 243-ZK of the Constitution of India?
Final Decision
The High Court dismissed the writ petition and upheld the constitutional validity of the proviso to Section 73AAA(3) and proviso to Section 73CB(15) of the Maharashtra Co-operative Societies Act, 1960, as inserted by Maharashtra Ordinance No.XII of 2020. The Court held that the impugned provisions are not ultra vires Articles 14, 19(1)(c), 243-ZJ and 243-ZK of the Constitution of India.
Law Points
- Constitutional validity of ordinance extending term of managing committees
- Cooperative societies
- Right to form associations
- Article 14
- Article 19(1)(c)
- Article 243-ZJ
- Article 243-ZK
- Maharashtra Co-operative Societies Act
- 1960
- Section 73AAA(3)
- Section 73CB(15)
- Maharashtra Ordinance No.XII of 2020
- Ultra vires
- Doctrine of severability
- Doctrine of pith and substance
- Doctrine of colourable legislation
- Doctrine of legislative competence
- Doctrine of reasonable classification
- Doctrine of proportionality
