The Rajasthan High Court, in the case of Jaspal Singh vs State of Rajasthan & Ors, has held that the 2015 amendment to Section 30 of the Rajasthan Co-operative Societies Act is ultra vires to Article 243-Z, 243-ZK and and 243-ZL of the Constitution of India and contrary to the national policy for the cooperative sector.
As per the amended provision, an administrator may now be allowed to administer by the registrar for an indefinite period by not holding elections in a reasonable time. Though Article 19(1)(c) of the Constitution provides for the formation of cooperative societies, these societies have to be formed in consonance with the national policy of the cooperative sector and Article 43-B and Part IX-B of the Constitution.
In addition to the aforementioned provisions, the amendment is also in contravention of Article 243-ZJ, 243-ZK and 243-ZL of the Constitution. Further, the provision also falls foul of Article 14 of the Constitution for having no rationale and not being in consonance with the object sought to be achieved by the Act.
“The provision in question is further bad as that empowers the Registrar to interfere in functioning of a body which is having no State liability. The object of the Act of 2001 is to promote cooperative sector in light of the national policy for cooperative sector and further in consonance with the spirit of Part-IX-B of the Constitution. The national policy as well as Part- IX-B of the Constitution of India thrusts for maximum autonomy in cooperative sector and absolute autonomy to the cooperative societies wherein the State is having no liability,” it said.
Read more at: http://www.livelaw.in/hc-quashes-certain-amendments-sec-30-rajasthan-co-operative-societies-act-read-judgment/