Case Note & Summary
The petitioners, members of Prathamik Krushi Pattin Sahakar Sangh Niyamit, Deshnur, filed writ petitions under Articles 226 and 227 of the Constitution of India challenging the constitutional validity of Clause (1) of Sub-section (3) and Sub-section (5) of Section 31 of the Karnataka Co-operative Societies Act, 1959. They sought a declaration that these provisions are ultra vires Article 243-ZJ of the Constitution. The petitioners contended that Article 243-ZJ provides only specific grounds for disqualification of members of co-operative societies, namely unsoundness of mind, insolvency, conviction for certain offences, and being a defaulter of the society. They argued that the impugned provisions, which disqualify members who have defaulted in repayment of loans, are beyond the scope of Article 243-ZJ and thus unconstitutional. The respondents, including the State of Karnataka and the Co-operative Election Authority, defended the provisions as being within the legislative competence of the State under Article 243-ZJ(2), which allows the Legislature to prescribe additional disqualifications. The court analyzed Article 243-ZJ and noted that it provides a framework but does not exhaustively list all disqualifications. Sub-article (2) of Article 243-ZJ empowers the State Legislature to make provisions for disqualifications. The court held that the impugned provisions are not ultra vires as they are consistent with the object of ensuring financial discipline and proper functioning of co-operative societies. The court dismissed the writ petitions, upholding the validity of Section 31(3)(1) and 31(5) of the Act.
Headnote
A) Constitutional Law - Co-operative Societies - Ultra Vires - Article 243-ZJ of the Constitution of India, Section 31(3)(1) and 31(5) of the Karnataka Co-operative Societies Act, 1959 - Challenge to provisions enabling disqualification of members for default in loan repayment - Petitioners argued that the provisions are inconsistent with Article 243-ZJ which provides for disqualification only on grounds of unsoundness of mind, insolvency, conviction for certain offences, etc. - Court held that Article 243-ZJ is not exhaustive and the State Legislature has power to prescribe additional disqualifications under Article 243-ZJ(2) - The impugned provisions are within the legislative competence and not ultra vires - Held that the disqualification for default in repayment of loan is a reasonable restriction to ensure financial discipline in co-operative societies (Paras 1-10).
Issue of Consideration
Whether Clause (1) of Sub-section (3) and Sub-section (5) of Section 31 of the Karnataka Co-operative Societies Act, 1959 are ultra vires Article 243-ZJ of the Constitution of India?
Final Decision
The writ petitions are dismissed. The impugned provisions are held to be not ultra vires Article 243-ZJ of the Constitution of India.
Law Points
- Constitutional validity of state legislation
- Co-operative societies
- Disqualification of members
- Ultra vires
- Article 243-ZJ
- Section 31 Karnataka Co-operative Societies Act
- 1959
