( 1 ) ISSUE rule. These Writ Petitions are taken up with the consent of parties for final disposal. Heard the learned Counsel for the petitioners and the learned Advocate General for the State.

( 2 ) THE Petitioners, in these Writ Petitions, challenge various amendments introduced in the Karnataka Co-operative Societies Act. 1956 (hereinafter referred to as the Act ).

( 3 ) THE easiest way to understand the case would be to extract the unamended Sections and the amended Sections of the Act side by side. Only the relevant sub-sections are extracted for the sake of brevity.

( 4 ) THE petitioners are the co-operative societies registered under the Act. The area of operation is confined to their respective Town in which they are situated. The total membership of petitioners co-operative societies and the number of directors in the Board of Directors are as follows

( 5 ) IT was submitted that the Karnataka Co-operative Societies Act, 1959 was amended from time to time and now it is amended by Karnataka Act No. 25 of 1998 which came into force on 15. 8. 1998 and some of the amending sections were given effect to on 27. 10. 1998. The major changes which affected the rights of the petitioners and their renumbers are Sections 17, 20, 28a. 29c, 29g. 39a, 57. 63 and 110-A of the Act.

( 6 ) IT is submitted that the amended Act takes away the right to prescribe the maximum number of members land prescribes the maximum number of members with reference to the area of operation of a co-operative society irrespective of total number of members. The classification made by the legislature for the purpose of fixation of maximum number of members in the committee of management is arbitrary and has no basis. It is submitted that the total strength of the members of the soiety shall be taken and not the area of operation. The primary societies are having limited area of operation but have more members than the Apex societies having larger area of operation. Therefore, it Is unreasonable and arbitrary to take the area of operation as the criteria for the purpose of determination of maximum number of members/directors in the committee of management. There is no rational or nexus between the area of operation and the members of the committee of management.

( 7 ) IT is further submitted that the amended Section 17 (1) (c) disqualifies a person from becoming or continuing as member and director of a co-operative society is unreasonable, arbitrary and violative of Article 14, 19 (1) (c), 19 (1) (g) and 21 of the Constitution.

( 8 ) IT is submitted that Section 20 (2) (a-iii) depriving existing members from exercising voting rights is arbitrary and violative of Article 14 of the constitution. The amended Section 20 (2) (a-iii) cannot be made retrospective and it can only be prospective.

( 9 ) IT is submitted that fixing maximum number of directors in a committee of management is arbitrary as it fixes the maximum number taking the area of operation of the society rather than number of members which has nexus to democratic principles. It has taken away the individual rights of the members and is violative of Articles 19 (c) and 38 of the Constitution. It denies reasonable opportunity to members from participating in administration of the co-operative society. It failed to take note of the fact that co-operative societies and local bodies serves as gross roots of democracy. It is further submitted that Section 29 (G (c) imposes unreasonable and unworkable duties on the society by imposing restrictions.

( 10 ) IT is submitted that Section 57 (2a) and (2b) imposing co-operative education Fund and Sahakari Kalyana Nidhi is without authority of law and beyond the legislative competence of State Legislature. It is not authorised by any of the entries in List II of Schedule VII of the Constitution.

( 11 ) IT is further submitted that Section 110a is contrary to the general law te. Indian Penal Code. It minimises the punishment for an offence wh