In Brief
The Supreme Court examined whether the Constitution (97th Amendment) Act, 2011, inserting Part IXB on cooperative societies, was valid and required ratification by half of the States under Article 368(2) proviso. The Court held that Part IXB, as it applies to State-level cooperative societies, required such ratification because it significantly curtails the States' exclusive legislative power under Article 246(3) and Entry 32, List II of the Seventh Schedule—constituting a change in effect within the proviso. However, applying the doctrine of severability, the Court upheld Part IXB as valid for multi-State cooperative societies and Union territories, as these do not involve curtailment of State powers. Thus, Part IXB remains operative only insofar as it concerns multi-State cooperative societies and Union territories.
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