Supreme Court To Consider Constitutionality Of Maharashtra Amendment Reducing Number Of Co-Operative Society Directors

The Supreme Court recently issued notice in a plea challenging an amendment to the Maharashtra Cooperative Societies Act, 1960 reducing the maximum number of directors in a Co-operative Society from 36 to 21.A bench of Justice Ahsanuddin Amanullah and Justice Prashant Kumar Mishra issued notice for the limited issue of whether the amendment is legally sustainable.“Having heard learned senior counsel appearing for the petitioners, let notice be issued limited to the issue as to whether the ground for amendment which has been brought about by the Maharashtra State Legislature with regard to reducing the number of Directors in a Co-operative Society from 36 to 21 is legally sustainable”, the Court said.The Maharashtra State Cooperative Societies (Amendment) Act, 2013 inserted Section 73AAA into the Act. The first proviso to Section 73AAA(1) restricts the maximum number of members of the Management Committee to 21.The petitioners have contended that the amendment was introduced only to bring it in line with a similar amendment made by the Central Government under the 97th Constitutional Amendment. Senior Advocate Meenakshi Arora for the petitioners argued that the Supreme Court had previously held in Union of India v. Rajendra N. Shah and Anr. (2021 SCC OnLine SC 474) that the Central Government's amendment was restricted to Multi-State Co-operative Societies and not to State Co-operative Societies.She further contended that unless the legislature takes an independent and conscious decision after considering the interest of all stakeholders, the said reduction is not justified.The petitioners have approached the Supreme Court challenging a Bombay High Court judgment, which had upheld the amendment.In the Bombay High Court, the petitioners, who were directors of the Maharashtra State Cooperative Tribal Development Corporation Limited, contended that the amendment was violative of Articles 14 and 19(1)(c) of the Constitution. The petitioners asserted that the amendment was without any rationale, considering that State Co-operative Societies like MSCTDC, had 36 directors in order to give adequate representation to the various districts in which such tribals had a sizable population.The High Court dismissed the petition, leading the petitioners to approach the Supreme Court.The Supreme Court kept the matter for the next hearing on April 25, 2025.Case no. – Sunil & Ors. v. State of Maharashtra & Ors.Case Title – Petition for Special Leave to Appeal (C) No. 7089/2025

Supreme Court To Consider Constitutionality Of Maharashtra Amendment Reducing Number Of Co-Operative Society Directors

Amisha Shrivastava

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