Chitambaresh, J.

“If you want to be incrementally better: Be competitive.

If you want to be exponentially better: Be co-operative.”

said an unknown author whose message is yet to percolate to the masses.

2. The challenge in these writ appeals is confined to Section 2(ia), the third proviso to Section 18(1) and Explanation I to Section 32(1) of the Kerala Co-operative Societies Act, 1969 (hereinafter referred to as 'the Act' only). The above provisions brought in by the Kerala Co-operative Societies (Amendment) Act, 2017 (hereinafter referred to as 'the Amending Act') are extracted below for the sake of clarity:

Section 2(ia):

“'District Co-operative Bank' means a Central Society having jurisdiction over one revenue district and having as its members Primary Agricultural Credit Societies and Urban Cooperative Banks and the principal object of which is to raise funds to be lent to its members, including nominal or associate members.”

Section 18(1). Third proviso:

“Provided also that a District Co-operative Bank may admit any co-operative society registered under the provisions of this Act, other than Primary Agricultural Credit Societies and Urban Co-operative Banks, functioning within its area of operation as a nominal or associate member.”

Section 32(1). Explanation I:

“For the purposes of this proviso, financial assistance includes any financial assistance from the Kerala Co-operative Development and Welfare Fund Board, Deposit Guarantee Scheme implemented by the Kerala Co-operative Deposit Guarantee Fund Board, Kerala Cooperative Risk Fund Scheme implemented by the Kerala Co-operative Development and Welfare Fund Board, National Bank for Agriculture and Rural Development, National Co-operative Development Corporation and any other financial institution under the control of the State or Central Government and also any financial assistance guaranteed by the said institutions.”

3. The appellants contend that Primary Agricultural Credit Societies and Urban Co-operative Banks have the right to vote as members in the District Co-operative Bank as per Section 2(ia) of the Act. Other co-operative societies registered under the Act can only be admitted as nominal or associate members to the District Co-operative Bank without any right to vote as per the third proviso to Section 18(1) of the Act. The appellants urge that the right to be members of the District Co-operative Bank without any right to vote violates Article 19(1)(c) of the Constitution of India. The same also militates against the Co-operative Principles - particularly Democratic Member Control - enunciated in Schedule II formulated under Section 2(eccc) of the Act. The appellants further point out that Explanation I has been added after the third proviso to Section 32(1) of the Act to rope in many Boards and Corporations having little governmental control. Explanation I facilitates the Government to topple down democratically elected committee to the societies by supersession for the slightest displeasure. This according to the appellants will not be in the best interest of a society which is bound to function as a democratic institution and conduct its affairs based on democratic principles. The Government points out that the courts should be slow to interfere with the legislative wisdom and that there is always a presumption in favour of constitutionality unless established otherwise.

4. We heard Mr. George Poonthottam, Advocate on behalf of the appellants, Mr. C.P. Sudhakara Prasad, Advocate General on behalf of the State and Mr. P.C. Sasidharan, Advocate on behalf of the contesting respondents.

5. It is true that only Primary Agricultural Credit Societies and Urban Co-operative Banks can be admitted as members of the District Co-operative Bank with a right to vote as per Section 2(ia) of the Act. Other co-operative societies registered under the Act can only be admitted as nominal or associate members without any right to vote as per the third proviso to Section 18(1) o