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2008 Supreme(All) 1364

ALLAHABAD HIGH COURT
V.K.Gupta,CJ
SUBHASH BEHAR AND ETC
Versus
STATE OF UTTARAKHAND
Decided On : 03 July 2008
W. P. Nos. 1203 to 1206 with 1252 of 2007

Advocates:
Alok Singh, D.BARTHWAL, L.P.NAITHANI, Sudhanshu Dhulia, Sudhir Kumar, VIPUL SHARMA,

The rights of the elected members of the Management Committee of the Co-operative Societies are based on statute, not fundamental rights, and the Legislature has the competence to enact laws within its legislative field.

Headnote:

Co-operative Societies - Validity of Amendment Act - Section 29 of Uttarakhand Co-operative Societies Act, 2003 - Summary of Acts and Sections: Section 29 of the Uttarakhand Co-operative Societies Act, 2003 was amended by the Uttarakhand Co-operative Societies (Amendment) Act, 2007, reducing the tenure of the Management Committee from 5 years to 2 years. The court analyzed the constitutional validity of the amendment, the legislative competence, and the fundamental rights of the petitioners under Article 19 (1) (c) of the Constitution of India.

Fact of the Case:

The petitioners challenged the validity of the Uttarakhand Co-operative Societies (Amendment) Act, 2007, which reduced the tenure of the Management Committee and its elected members from 5 years to 2 years, alleging infringement of vested rights and fundamental rights under Article 19 (1) (c) of the Constitution of India. The State defended the amendment, stating it was enacted to ensure smooth and efficient working of the Committee of Management of Co-operative Societies.

Finding of the Court:

The court found that the Legislature had the competence to enact the Amending Act, 2007, and that the rights of the elected members of the Management Committee of the Co-operative Societies are based on statute, not fundamental rights. The court dismissed the petitions, stating that the Legislature merely reduced the tenures of the Committees of Management from 5 years to 2 years, and was competent to do so.

Issues: Constitutional validity of the amendment, legislative competence, infringement of fundamental rights under Article 19 (1) (c) of the Constitution of India.

Ratio Decidendi: The court held that the Legislature had the competence to enact the Amending Act, 2007, and that the rights of the elected members of the Management Committee of the Co-operative Societies are based on statute, not fundamental rights. The court also emphasized the limited scope for scrutiny and the presumption of constitutionality of a statute.

Final Decision: The court dismissed all the writ petitions, finding that the Legislature was competent to enact the Amending Act, 2007, and that the petitions lacked merit.

J. C. S. RAWAT, J.

Since there is a common question of law involved in all the petitions, therefore, all these petitions have been heard together and are being disposed of by this common judgment.

2. By means of all these petitions, the pe titioners have initially challenged the validity of the Uttarakhand Co-operative Societ ies (Amendment) Ordinance, 2007 dated 22-10-2007 promulgated by the Governor of Uttarakhand by amending Section 29 of the Uttarakhand Co-operative Societies Act, 2003 (hereinafter referred as principal Act, 2003)" Thereafter, the aforesaid Ordinance was re placed by an Amendment Act known as "uttarakhand Co-operative Societies (Amendment) Act, 2007 (Annexure-6) of Writ Petition No. 1203 (M/b)2007) by which the tenure of the Management Committee of the Co-operative Societies and its elected mem bers has been reduced from 5 years to 2 years. Consequently, the respondent No. 4 appointed the Administrators in all the Co-operative Societies at all

levels in the State of Uttarakhand. The petitioners have challenged validity of the Uttarakhand Co- operative So cieties (Amendment) Act, 2007 (hereinafter referred as amending Act, 2007), reducing the tenure of the Management Committee and its elected members from 5 years to 2 years, on the grounds that the sole intention of Amending Act, 2007 was to dislodge the elected members of the Management Committee of Co-operative Societies to manage its affairs which is not only an infringement of the vested rights which have accrued in favour of the elected members of Committee of Management of the Co-operative Societ ies but it is an invasion over the fundamental rights of the petitioners guaranteed under Article 19 (1) (c) of the Constitution of India; the Amending Act, 2007 has been actuated by mala fide and colourable exercise of power, the Amending Act, 2007 curtailing the term of the Committee of Management is against the fundamental principle of formation of Co- operative Society and negates the principle of Co-operative Society.

3. The respondent Uttarakhand State has filed the counter affidavit and stated that the Amending Act, 2007 did not infringe the fun damental rights of the petitioners guaranteed under Article 19 (1) (c) of the Constitution of India; no citizen has a fundamental right un der Article 19 (1) (c) of the Constitution to be come a member of Co-operative Society; the rights of the petitioners as elected Members of the Management Committee in the Co-op erative Societies are governed by the provisions of the Statute and the rights to become a Member of the Management Committee of the Co-operative Societies is a statutory right; the State Legislative is competent to make an enactment with regard to the Co-operative Societies of the State; the Amending Act, 2007 can only be challenged on the ground of lack of competence of the Legislature to enact the law or it invades the fundamental rights of the petitioners guaranteed under Part-III of the Constitution; the Amending Act, 2007 was enacted with a view to enshrine smooth and efficient working of the Committee of Man agement of Co-operative Societies as stated in the Objects and Reasons of the Bill; and the Legislature decided to reduce the term from 5 years to 2 years in respect of the Man agement Committee of the Co-operative So cieties which are already constituted or which may be constituted hereinafter which cannot be termed as arbitrary.

4. We have heard the learned counsel for the parties and perused the record.

5. Sub-clause (2) (3) and (4) of Section 29 of the Uttarakhand Co-operative Societ ies Act, 2003 reads as follows :-

"29. Committee of Management-CD. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The term of every Committee of Man agement shall be five years and the term of the elected members of the Committee of Management shall be co-terminus with the term of such Committee.

(3) Election to reconstitute the Commit tee of Management of a co-operati









































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