In a significant ruling, the Karnataka High Court has struck down Section 128-A of the Karnataka Cooperative Societies Act of 1959, deeming it unconstitutional. This section had granted the Registrar extensive powers to control the recruitment, transfer, and disciplinary actions of employees in cooperative societies.
The Court's Ruling
The Court held that:
The right to form a cooperative society under Article 19(1)(c) of the Constitution includes the right to manage its employees.
While the State can impose reasonable restrictions on these rights, it cannot completely take away the autonomy of cooperative societies in these matters.
Section 128-A, which grants the Registrar absolute control over employee management, violates the constitutional rights of cooperative societies.
Key Points from the Case
Challenge to Section 128-A: Several primary cooperative societies and their members challenged the constitutionality of Section 128-A, arguing that it infringed on their rights to form and manage cooperative societies.
State's Argument: The State contended that cooperative societies, as non-citizen entities, cannot claim fundamental rights and that the State has the power to regulate their affairs.
Court's Decision: The Court rejected the State's argument, finding that cooperative societies have a right to autonomy in managing their internal affairs, including employee management.
Impact of the Ruling
The Court's decision is a significant victory for cooperative societies in Karnataka. It reaffirms their right to self-governance and protects them from excessive government interference in their internal affairs. The ruling may also have implications for other states with similar laws governing cooperative societies.
Conclusion
The Karnataka High Court's decision striking down Section 128-A of the Karnataka Cooperative Societies Act is a landmark ruling that upholds the autonomy of cooperative societies. It is a testament to the importance of preserving the democratic principles underlying these organizations.
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Disclaimer: This blog post is intended to provide a general overview of a recent legal development. It is not a substitute for professional legal advice. Please consult with an attorney for specific advice regarding your legal situation.
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