VidhiSangh

Supreme Court of India · 20/07/2021

UNION OF INDIA versus RAJENDRA N. SHAH AND ANOTHER

[2021] 5 S.C.R. 458 · 2021 INSC 340

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Summary

The Court held that Part IXB, inserted by the Ninety-seventh Amendment, required State ratification because it substantially curtailed the States’ exclusive legislative field over cooperative societies. That mandatory procedure had not been followed. By a majority, Part IXB was severed and preserved only for multi-State cooperative societies, including those in Union territories. Article 19(1)(c) and Article 43B remained unaffected. Joseph J agreed on the ratification defect but dissented on severability.

Issues

  1. Whether the restrictions imposed by Part IXB required ratification under the proviso to Article 368(2), despite no textual amendment of the relevant legislative entry.
  2. Whether Part IXB could survive for multi-State cooperative societies and societies in Union territories.

Provisions considered

Held

Result

Appeals disposed of by the majority: High Court judgment upheld subject to preserving Part IXB only for multi-State cooperative societies in States and Union territories.

Judgment PDF: Supreme Court of India, [2021] 5 S.C.R. 458.