The High Court of Karnataka has invalidated Section 128-A of the Karnataka Cooperative Societies (KCS) Act of 1959, a provision that was introduced through an amendment in 2023, media reports say.
This section granted the registrar of cooperative societies the power to entirely strip cooperative societies of their rights to recruit, transfer, or conduct disciplinary inquiries against their employees.
The court ruled that Section 128-A is unconstitutional, citing that it infringes upon the fundamental rights of cooperative societies. Specifically, the court emphasized that the right to form a cooperative society, which is protected under Article 19(1)(c) of the Constitution—encompassing the right to form associations, unions, or cooperative societies—includes within its scope the autonomy to manage their internal affairs, including employee recruitment, transfers, and disciplinary actions.
This judgment underscores the importance of safeguarding the autonomy of cooperative societies in managing their personnel matters, a critical aspect of their functioning. The court’s decision reaffirms that any legislation attempting to undermine these fundamental rights must be carefully scrutinized.
As a result, the ruling not only strikes down the controversial amendment but also reinforces the constitutional protections afforded to cooperative societies, ensuring that their rights to self-governance remain intact.
