Research by PRATYUSH SHARMA.

Major points on moot – 3

 Aryavatha is a developing country (here the country aryavartha is to be deemed

india).
 Vijayrashtra is one of the most developed state in aryavatha (here vijayrastra
should be deemed to gujarat).
 In year 1978, a person named paschim patel started co-operative society
movement in vijayrashtra leading to which he opened Grandmother Dairy.
 Purab shyam is collegue and supported paschim patel in the creation of
cooperative socity.
 In 1986 elections in the vijay rastra assembly held and a party named as
pooravijayrashtra apna (PGA) came into power by defeating Aryavarta Kutch
Saurashtra bhuj.
 Purab shyam was member of KSB and lost the power over the people and
cooperative socities as the party gor defeated by PGA.
 The governing body of grandmother dairy was to be over on 23-06-2012
 The parliament of aryavartha came out with an amendment in cooperative
society sector which extended the tenure of governing body to two more years.
 Mr paschim patel filled a petition in the high court stating that the amendment
is done just in nature to extend the rul;ing period for KSB and no other welfare
is there for the same cause.
 The high court dismissed the petition filled by paschim patel
 Another banking society filled petition on the same issue in Supreme Court
uhnder article 136 as paschim patel did not filled the petition
 The parties will be anmol vs attorney general baki app lpg mujhe batana party
sahi kya rhegi mere hisaab se yahi h anmol vs atgeneral.
Articles discccussed

Article 368 in The Constitution Of India 1949

368. Power of Parliament to amend the Constitution and procedure therefor

(1) Notwithstanding anything in this Constitution, Parliament may in exercise of its

constituent power amend by way of addition, variation or repeal any provision of this
Constitution in accordance with the procedure laid down in this article

(2) An amendment of this Constitution may be initiated only by the introduction of a

Bill for the purpose in either House of Parliament, and when the Bill is passed in each
House by a majority of the total membership of that House present and voting, it shall
be presented to the President who shall give his assent to the Bill and thereupon the
Constitution shall stand amended in accordance with the terms of the Bill: Provided
that if such amendment seeks to make any change in

(a) Article 54, Article 55, Article 73, Article 162 or Article 241, or

(b) Chapter IV of Part V, Chapter V of Part VI, or Chapter I of Part XI, or

(c) any of the Lists in the Seventh Schedule, or

(d) the representation of States in Parliament, or

(e) the provisions of this article, the amendment shall also require to be ratified by the
Legislature of not less than one half of the States by resolution to that effect passed
by those Legislatures before the Bill making provision for such amendment is
presented to the President for assent

(3) Nothing in Article 13 shall apply to any amendment made under this article

(4) No amendment of this Constitution (including the provisions of Part III) made or
purporting to have been made under this article whether before or after the
commencement of Section 55 of the Constitution (Forty second Amendment) Act,
1976 shall be called in question in any court on any ground

(5) For the removal of doubts, it is hereby declared that there shall be no limitation
whatever on the constituent power of Parliament to amend by way of addition, variation
or repeal the provisions of this Constitution under this article PART XXI TEMPORARY,
TRANSITIONAL AND SPECIAL PROVISIONS.

The 97th Amendment

Vol. 48, Issue No. 14, 06 Apr, 2013

The 97th amendment to the Constitution inserts a critical point into Article 19(1)(c) by
recognising the right of the people to form cooperative societies as a fundamental
right. It envisages their insulation from political interference, and infusion of greater
managerial skills and autonomy into their functioning. However, there is the possibility
of the managerial element overriding the concerns of the members and lack of
sufficient room for an effective state intervention when required.1

Cooperative Society2

A business organization can take many forms. One such form is that of a cooperative
society. Such societies have unique features of joint ownership and democratic
leadership. Let us take a brief look at their features and some types of societies.

Introduction

A cooperative society is not a new concept. It prevails in all the countries, this is almost
a universal concept. The cooperative society is active in all countries worldwide and is
represented in all the sectors including agriculture, food, finance, healthcare, etc.

To protect the interest of weaker sections, the co-operative society is formed. It is a

voluntary association of persons, whose motive is the welfare of the members.

Features of a Cooperative Society

 As it is a voluntary association, the membership is also voluntary. A person is free

to join a cooperative society, and can also leave anytime as per his desire.
Irrespective of their religion, gender & caste, membership is open to all.

1
https://www.epw.in/journal/2013/14/commentary/97th-amendment.html
2
https://www.toppr.com/guides/business-studies/forms-of-business-organisations/cooperative-society/
 It is compulsory for the co-operative society to get registration. The co-operative
society is a separate legal identity to the society.

 It does not get affected by the entry or exit of its members.

 There is limited liability of the members of co-operative society. Liability is limited

to the extent of the amount contributed by members as capital.

 An elected managing committee has the powers to take decisions. Members have
the right to vote, by which they elect the members who will constitute the
managing committee.

 The cooperative society works on the principle of mutual help & welfare. Hence,
the principal of service dominates its working. If any surplus is generated, it is
distributed amongst the members as a dividend in conformity with the bye-laws of
the society.

What are the Advantages and Disadvantages of Cooperative Society?

Types of Cooperative Society

1] Producer Cooperative

To protect the interest of small producers, these societies are set up. The co-operative
society members may be farmers, landowners, owners of the fishing operations. To
increase the marketing possibilities and production efficiency, producers decide to work
together or as separate entities.

They perform several activities like processing, marketing & distributing their own
products. This helps in lower costs and strains in each area with a mutual benefit to each
producer.

2] Consumer Cooperative

These businesses are owned and governed by consumers of a particular area for their
mutual benefit. Their view is to provide daily necessary commodities at an optimum price.
Rather than earning a pecuniary profit, their aim is towards providing service to the
consumers.
3] Credit Unions

Credit unions are generally member-owned financial cooperatives. Their principle is of

people helping people. They provide credit and financial services to the members at
competitive prices. Each and every depositor has the right to become a member.
Members attend the annual meeting and are given rights to elect a board of directors.

4] Marketing Cooperative Society

With an aim of helping small producers in selling their products, these societies are
established. The producers who wish to obtain reasonable prices for their output are the
members of this society.

For securing a favourable market for the products they eliminate the middlemen and
improve the competitive position of its members. It collects the output of individual
members. Various marketing functions like transportation, packaging, warehousing, etc
are performed by the cooperative societies to sell the product at the best possible price.

5] Housing Cooperative Society

To help people with limited income to construct houses at reasonable costs, these
societies are established. Their aim is to solve the housing problems of the members. A
member of this society aims to procure the residential house at lower cost.

They construct the houses and give the option to members to pay in installments to
purchase the house. They construct flats or provide plots to members on which the
members themselves can construct the houses as per their choice.