Case Note & Summary
The dispute arose from the bifurcation of Uttar Pradesh and creation of Uttarakhand in 2000, affecting sugarcane growers cooperative societies whose areas of operation spanned both states. The Sugarcane Growers Cooperative Society, Bajpur, originally registered under the U.P. Cooperative Societies Act, 1965, had its area curtailed post-reorganisation, leading to exclusion of some members. Respondent No. 1, a cane grower excluded from membership, initiated arbitration which held the society became a multi-state cooperative society under Section 103 of the Multi-State Cooperative Societies Act, 2002. The High Court later upheld this multi-state status, directing elections by central authorities. The core legal issue was whether these societies automatically became multi-state societies under Section 103 of the 2002 Act despite state reorganisation actions. Appellants argued Section 103 does not confer automatic status and requires factual inquiry, citing precedents, while respondents contended the societies were deemed multi-state under the Act. The court examined the Uttar Pradesh Reorganisation Act, 2000, particularly Section 87 which ensures legislative continuity for two years post-bifurcation, and Section 93 giving it overriding effect. The court also considered the 2002 Act, noting Section 103 provides for deemed multi-state status but must be read with the Reorganisation Act. The court analyzed the constitutional backdrop, including the 97th Amendment and subsequent 2023 amendment to the 2002 Act adding a proviso to Section 103. The court's reasoning focused on the need for factual determination of the societies' status, considering state actions to reorganize them within statutory periods. The decision emphasized that automatic deeming under Section 103 is not absolute and must account for the framework of the Reorganisation Act and actual operational confines.
Headnote
A) Cooperative Societies Law - Multi-State Cooperative Societies - Legal Status Post-State Reorganisation - Uttar Pradesh Reorganisation Act, 2000 and Multi-State Cooperative Societies Act, 2002, Section 103 - Dispute pertained to whether sugarcane growers cooperative societies became multi-state societies automatically upon state bifurcation - Court analyzed interplay between Reorganisation Act and 2002 Act, noting Section 87 of Reorganisation Act provides two-year continuity period for existing laws - Held that Section 103 of 2002 Act does not automatically confer multi-state status without factual inquiry into actual operations and state actions (Paras 10-16). B) Constitutional Law - Cooperative Societies - Constitutional Validity - Constitution (Ninety-Seventh Amendment) Act, 2011, Part IX-B - Court noted that Part IX-B of Constitution was struck down by Gujarat High Court but Supreme Court later held it operative for multi-state societies - 2002 Act was amended in 2023 to align with constitutional provisions, adding proviso to Section 103 - This amendment provided that deemed multi-state societies cease to be such if successor states reorganize them within three years (Paras 16-17).
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Issue of Consideration: Whether Sugarcane Growers Cooperative Societies, Bajpur and Gadarpur, situated in Udham Singh Nagar, District of Uttarakhand could be treated as Multi-State Cooperative Societies by operation of Section 103 of the Multi-State Cooperative Societies Act, 2002, despite their prior reorganisation and confinement of their area of operations to a single State under the statutory framework governing State reorganisation.
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Final Decision
Civil Appeal Nos. 8743 of 2013, 8744 of 2013 and 8745 of 2013 are allowed, whereas Civil Appeal No. 8746 of 2013 is dismissed. There shall be no order as to costs.
