Supreme Court Upholds Constitution (97th Amendment) Act, 2011's Validity on Co-operative Societies. The amendment was deemed constitutional as it did not require ratification by States under Article 368(2) and did not alter the federal structure.

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Case Note & Summary

The Supreme Court addressed the constitutional validity of the Constitution (Ninety Seventh Amendment) Act, 2011, which introduced Part IXB concerning co-operative societies. The amendment was passed by the Lok Sabha and Rajya Sabha in December 2011, received Presidential assent in January 2012, and came into force in February 2012. The Gujarat High Court had previously declared Part IXB ultra vires for lack of ratification by States under Article 368(2). The court analyzed the historical context of co-operative societies in India, tracing legislative authority from British Acts to the current constitutional framework. The Attorney General argued that the amendment was essential for the democratic functioning of co-operatives and did not infringe upon State legislative powers. The court considered arguments regarding the necessity of ratification and the implications for federalism. Ultimately, the court held that the amendment did not require ratification and upheld its validity, emphasizing its role in promoting the co-operative movement without undermining State authority. The decision reinforced the legislative competence of Parliament in relation to multi-State co-operative societies while maintaining the integrity of State powers.

Headnote

A) Constitutional Law - Amendment Validity - Requirement of Ratification - Constitution (Ninety Seventh Amendment) Act, 2011, Article 368(2) - The court examined whether the amendment necessitated ratification by States, concluding that it did not, as it did not alter the federal structure or legislative powers of States. Held that the amendment aimed to enhance the functioning of co-operative societies without infringing on State powers (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) and its impact on the federal structure.

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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 States under Article 368(2) and did not alter the federal structure, thus affirming its validity.

Law Points

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

2021 LawText (SC) (07) 100

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 the Constitution (Ninety Seventh Amendment) Act, 2011.

Remedy Sought

Union of India sought to uphold the validity of the amendment.

Filing Reason

The Gujarat High Court declared Part IXB ultra vires for lack of ratification.

Previous Decisions

The High Court's decision on 22.04.2013 declared the amendment unconstitutional.

Issues

Whether ratification by States is required for the amendment Impact of the amendment on federal structure

Submissions/Arguments

The Attorney General argued for the amendment's validity and necessity for co-operatives. Opponents contended it infringed on State legislative powers.

Ratio Decidendi

The amendment did not require ratification as it did not alter the federal structure or legislative powers of States, thereby enhancing the functioning of co-operative societies.

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

Procedural History

The case originated from a Writ Petition filed before the Gujarat High Court, which ruled on 22.04.2013 that Part IXB was unconstitutional for lack of ratification. The Union of India appealed to the Supreme Court.

Acts & Sections

  • Constitution of India: Article 19, Article 43B, Article 368, Article 245, Article 246
  • Constitution (Ninety Seventh Amendment) Act: Part IXB
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