SC junks part of 97th amendment

Source: Hindu

What is the news?

The Supreme Court has knocked down portions of a constitutional amendment that limited states’ exclusive control over cooperative organizations.

Introduction

Part IXB, added to the Constitution in 2012 by the 97th Amendment, outlined the rules for operating cooperative organizations.

• The amendment’s provisions, which were passed by Parliament without being ratified by state legislatures as needed by the Constitution, established the number of directors a society should have their tenure and even the essential eminent domain powers.
• The decision could be noteworthy in light of concerns expressed by states that the new Central Ministry of Cooperation would disempower them.

What were the court’s observations?

The court concluded that cooperative societies fall under the “exclusive legislative jurisdiction” of the state legislature. The Supreme Court, on the other hand, stated that the Centre has authority over multi-State cooperative groups.

• Firstly, the court held that under Entry 32 of the State List and Part IX B has “seriously and considerably harm the State legislature‘s “exclusive legislative jurisdiction” over their cooperative sector.
  • In fact, the court noted that Article 243ZI specifies that a state may only enact legislation concerning the incorporation, regulation, and dissolution of a society if it complies with the provisions of Part IXB of the 97th Constitution Amendment.
• Secondly, parliament, as the recipient of limited power, can only exercise it in conformity with the procedural and substantive constraints set forth in the Indian Constitution.
• Thirdly, the parts of Part IXB of the Amendment dealing with “Multi-State Cooperative Societies” were not struck down by the court due to a lack of ratification. When it comes to Multi-State Co-operative Societies (MSCS) with objectives that are not limited to a single state, the Union of India’s legislative power is included in Entry 44 List I. (Union List).
  • Part IXB of the Constitution is deemed to be in effect only in so far as it relates to multi-State cooperative societies inside the several States and in the Union Territories.
• There is no doubt that our Constitution has been described as quasi-federal in that, in terms of legislative powers, the States have exclusive power to legislate on topics reserved exclusively to them within their own sphere.
• Though an amendment to the Constitution is the exercise of constituent power, which differs from ordinary legislative power, such constituent power does not convert Parliament into an original constituent assembly.

Terms to know: 

• 97th Constitutional Amendment