Constitutional validity of a cooperative societies provision rejected, with the striking-down view left undisturbed.

The article addresses the constitutional validity of Section 96(1)(c) of the Gujarat Cooperative Societies Act, 1961, which was challenged as ultra vires. The Supreme Court found no reason to disturb the Gujarat High Court's view striking down the provision, noting that the ruling had remained in force for a long period and that many transactions may have been carried out on that basis. The challenge therefore failed, and the provision was not upheld.

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Issues: Whether Section 96(1)(c) of the Gujarat Cooperative Societies Act, 1961 was liable to be struck down as ultra vires.

Analysis: The challenge was confined to the vires of Section 96(1)(c). The Court found no justification to interfere with the view already taken by the Gujarat High Court striking down the provision. It also noted the long period for which that decision had stood and the likelihood of numerous transactions having proceeded on that basis, which reinforced the absence of any ground for interference.

Conclusion: Section 96(1)(c) of the Gujarat Cooperative Societies Act, 1961 was not upheld by the Court and the appeal failed.

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