JUDGMENT

A.K. Goel, C.J.

1. This petition seeks quashing of the Odisha Self Help Co-operatives (Repeal) Ordinance, 2013, letters dated 7.6.2013 and 17.6.2013 of the Registrar of the Co-operative Societies, Odisha for implementation thereof and direction to allow the petitioners to run the co-operative society as per the repealed provisions contained in the Orissa Self-Help Co-operatives Act, 2001 (for short, "the 2001 Act"). Since during pendency of the writ petition the Ordinance has been replaced by the Odisha Self Help Co-operatives (Repeal) Act, 2013 (for short "the Repeal Act"), the petitioners have sought substitution of their prayer for quashing the Ordinance by the Act. Case set out in the petition is that the formation and working of co-operative societies in the State of Odisha was earlier governed by the Orissa Co-operative Societies Act, 1962 Act (for short, "the 1962 Act"). In the year 2001, the Orissa Self-Help Co-operatives Act, 2001 was enacted with different pattern of regulation and control of the co-operative societies. The Parliament brought about the Constitution (Ninety-seventh Amendment) Act, 2011, which came into force with effect from 15.2.2012 (the 97th Amendment), incorporating constitutional provisions in respect of functioning of co-operative societies. The Multi-State Co-operative Societies Act, 1984 was enacted by the Central Government to regulate functioning of multi-state co-operative societies. The same was replaced by the Multi-State Co-operative Societies Act, 2002 ("the MSC Act").

2. The working of co-operative sector has received attention in Five Year Plan from time to time. There has also been review of national co-operative policy from time to time. The Central Government constituted a committee to review working of co-operative societies particularly for democratization and professionalization of management in co-operative sector headed by Sri K.N. Ardhanareeswaran in 1985. In 1989, the Agricultural Credit Review Committee under the Chairmanship of Prof. A.M. Khuso examined the problems of agricultural and rural credit societies and recommended a major systemic improvement. On the basis of the report of the Choudhary Brahm Perkash Committee, the Model Co-operatives Act, 1990 was enacted providing for more autonomy for working in the cooperative societies, upon which, many states including the State of Odisha enacted parallel Co-Operative Societies Acts. In the State of Odisha, 2001 Act was enacted in the said series. The Government of India declared its national co-operative policy in the year 2002 and constituted a Ministerial Task Force to formulate a plan of action for implementation thereon.

3. In the Ninety-seventh amendment, constitutional provisions have been incorporated in relation to working of co-operative societies with a view to introduce more accountability, professionalization and stability. A new Part, after Part-IX-A, has been inserted under the heading "The Co-operative Societies" containing the provisions from Articles from 243ZH to 243ZT. Article 243ZT provides that any provision of any law relating to co-operative societies in the state, which is inconsistent with Part-IX-B of the Constitution, will continue for one year or till amendment or repeal by the State Legislature. Thus, within maximum period of one year, the States were required to amend the State laws to be brought in conformity with the amended constitutional provisions of Part-IX-B.

4. Statement of objects and reasons for the 97th Amendment as follows:

The co-operative sector, over the years, has made significant contribution to various sectors of national economy and has achieved voluminous growth. However, it has shown weaknesses in safeguarding the interests of the members and fulfilment of objects for which these institutions were organised.

There have been instances where elections have been postponed indefinitely and nominated office bearers or administrators remaining in-charge of these institutions f