UNION OF INDIA versus RAJENDRA N. SHAH AND ANOTHER

Citation: [2021] 5 S.C.R. 458 · Decided: 20-07-2021 · Supreme Court of India · Bench: R.F. NARIMAN · Disposal: Disposed off

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Judgment (excerpt)

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SUPREME COURT REPORTS
[2021] 5 S.C.R.
   [2021] 5 S.C.R. 458
458
UNION OF INDIA
v.
RAJENDRA N. SHAH AND ANOTHER
(Civil Appeal Nos. 9108-9109 of 2014)
JULY 20, 2021
[R. F. NARIMAN, K. M. JOSEPH AND B. R. GAVAI, JJ.]
Constitution (Ninety Seventh Amendment) Act, 2011 –
Challenge to, on procedural grounds – Vires of the Constitution
97th Amendment Act, which inter alia introduced Part IXB (consisting
of Arts.243ZH to 243ZT) under the chapter heading ‘The Co-
operative Societies’ – Whether the constitutional amendment
inserting Part IXB was ultra vires the Constitution for want of
requisite ratification under Art.368(2) proviso – Held: From the
restrictions contained in Part IXB, it is clear that the exclusive
legislative power contained in Entry 32 List II of the 7th Schedule
has been significantly and substantially impacted in that such
exclusive power is now subjected to a large number of curtailments
– By curtailing the width of Entry 32, List II of the 7th Schedule,
Part IXB seeks to effect a significant change in Art.246(3) read
with Entry 32 List II of the 7th Schedule inasmuch as the State’s
exclusive power to make laws with regard to the subject of co-
operative societies is significantly curtailed thereby directly
impacting the quasi-federal principle contained therein – Quite
clearly, therefore, Part IXB, insofar as it applies to co-operative
societies which operate within a State, would therefore require
ratification under both sub-clauses (b) and (c) of the proviso to
Art.368(2) of the Constitution – Ratification not having been
effected, the Amendment is non-est – The Constitution 97th Amendment
Act is void for want of ratification – Constitution of India – Part
IXB (Arts.243ZH to 243ZT); Art. 368(2) proviso and Schedule VII,
List II, Entry 32 – Co-operative Societies.
Constitution of India, 1950 – Part IXB (consisting of
Arts.243ZH to 243ZT) inserted by the Constitution 97th Amendment
Act and Art.368(2) proviso – Constitutional amendment inserting
Part IXB found to be ultra vires the Constitution for want of requisite
ratification under Art.368(2) proviso – Whether, even if Part IXB is
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constitutionally infirm qua co-operative societies operating within
a State, it would yet operate qua multi-State co-operative societies
and in Union territories which are not States – Held (per R.F.
Nariman, J. [for himself and B.R. Gavai, J.]) (per majority) – The
Constitution 97th Amendment Act is void for want of ratification but
it cannot be said that this would render the entire amendment still-
born – The Statement of Objects and Reasons for the Constitution
97th Amendment Act makes it clear that the Scheme qua multi-State
cooperative societies is separate from the Scheme dealing with
“other cooperative societies”, Parliament being empowered, so far
as multi-State cooperative societies are concerned, and the State
legislatures having to make appropriate laws laying down certain
matters so far as “other cooperative societies” are concerned –
Part IXB of the Constitution is operative insofar as it concerns multi-
State co-operative societies both within the various States and in
the Union territories of India – Held (per K.M. Joseph, J.)
(dissenting) – Doctrine of Severability must apply on surer
foundations – Provisions relating to Art.243ZI to Art.243ZQ and
Art.243ZT, are unconstitutional for non-compliance, with the
mandate of the proviso to Art.368(2) of the Constitution – However,
it cannot be said that the Doctrine of Severability will apply to
sustain Art.243ZR and Art.243ZS to the multistate cooperative
societies operating in the Union Territories, and that, it would not
apply to cooperative societies confined to the Union Territories –
Once the Court has painted the substantial provisions (Art.243ZI to
243ZQ), with the brush of unconstitutionality, rendering those
provisions, still born, the provisions contained in Art.243ZR and
Art.243ZS cease to be workable and are impossible to sustain –
Constitution (Ninety Seventh Amendment) Act, 2011 – Doctrine of
Severability – Applicability – Co-operative Societies.
Disposing of the appeals, the Court
HELD:
Per R. F. Nariman, J. [for himself and B. R. Gavai, J.)]
1.1. Our Constitution has been described as quasi-federal
in that, so far as legislative powers are concerned, though there
is a tilt in favour of the Centre vis-à-vis the States given the federal
supremacy principle, yet within their own sphere, the States have
UNION OF I

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