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Kanichodu Mpcs Ltd No. 181 (D) Apcos vs The State Of Kerala
2026 Latest Caselaw 1011 Ker

Citation : 2026 Latest Caselaw 1011 Ker
Judgement Date : 2 February, 2026

[Cites 15, Cited by 0]

Kerala High Court

Kanichodu Mpcs Ltd No. 181 (D) Apcos vs The State Of Kerala on 2 February, 2026

Author: N.Nagaresh
Bench: N.Nagaresh
                                             2026:KER:8402



         IN THE HIGH COURT OF KERALA AT ERNAKULAM

                         PRESENT

           THE HONOURABLE MR.JUSTICE N.NAGARESH

 MONDAY, THE 2ND DAY OF FEBRUARY 2026 / 13TH MAGHA, 1947

                  WP(C) NO. 2219 OF 2026

PETITIONERS:

    1    KANICHODU MPCS LTD NO.181 (D) APCOS,
         KALAMACHAL P.O., VAMANAPURAM,
         THIRUVANANTHAPURAM,
         REPRESENTED BY ITS PRESIDENT,
         PIN - 695606

    2    VECHOOCHIRA MILK PRODUCERS CO-OPERATIVE
         SOCIETY LTD NO. PT 88 (D) APCOS,
         VECHOOCHIRA, REPRESENTED BY ITS PRESIDENT,
         PIN - 686511

    3    EAST CHENKAL MILK PRODUCERS CO-OPERATIVE
         SOCIETY LTD NO.T 283 (D) APCOS,
         KUNNANVILA, VATTAVILA P.O.,
         THIRUVANANTHAPURAM,
         REPRESENTED BY ITS PRESIDENT, PIN - 695132

         BY ADVS.
         SRI.N.ANAND
         SMT.NISHA GEORGE
         SRI.RAJESH O.N.
         SRI.AMEER SALIM
         SRI.SADIQ NAZAR
         SRI.GEORGE POONTHOTTAM (SR.)


RESPONDENTS:

    1    THE STATE OF KERALA,
         AGRICULTURE (DAIRY) DEPARTMENT SECRETARIAT,
                                               2026:KER:8402
W.P.(C) Nos.2219 & 2316 of 2026

                                  :2:

           THIRUVANANTHAPURAM,
           REPRESENTED BY ITS SECRETARY, PIN - 695001

     2     THE DIRECTOR,
           DAIRY DEVELOPMENT DEPARTMENT
           PATTAM PALACE P.O.,
           THIRUVANANTHAPURAM, PIN - 695004

     3     THE THIRUVANANTHAPURAM REGIONAL MILK
           PRODUCERS UNION LTD.NO. T 177 (D) APCOS,
           KSHEERA BHAVAN, PATTOM,
           THIRUVANANTHAPURAM,
           REPRESENTED BY ITS MANAGING DIRECTOR,
           PIN - 695004

     4     THE RECRUITMENT COMMITTEE,
           THE THIRUVANANTHAPURAM REGIONAL MILK PRODUCERS
           UNION LTD.NO.T 177 (D) APCOS. KSHEERA BHAVAN,
           PATTOM, THIRUVANANTHAPURAM,
           REPRESENTED BY ITS CONVENER, PIN - 695004

     5     KERALA STATE PRODUCTIVITY COUNCIL,
           PRODUCTIVITY HOUSE, P.B NO: 08, H.M.T ROAD,
           KALAMASSERY, COCHIN, KERALA, INDIA,
           REPRESENTED BY ITS CHAIRMAN,
           PIN - 683104

           BY ADVS.
           SRI.RENJITH TAMPAN (SR.)
           SMT.LATHA ANAND, SC
           SRI.V.M.KRISHNAKUMAR
           SRI.S.VISHNU (ARIKKATTIL)
           SRI.JAFFAR KHAN, SPL. GOVERNMENT PLEADER


     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 30.01.2026, ALONG WITH WP(C).2316/2026, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
                                                 2026:KER:8402
W.P.(C) Nos.2219 & 2316 of 2026

                                  :3:


          IN THE HIGH COURT OF KERALA AT ERNAKULAM

                              PRESENT

             THE HONOURABLE MR.JUSTICE N.NAGARESH

 MONDAY, THE 2ND DAY OF FEBRUARY 2026 / 13TH MAGHA, 1947

                     WP(C) NO. 2316 OF 2026

PETITIONERS:



     1     SHEEBA B.,
           AGED 45 YEARS,
           W/O. RAJAGOPAL C RAJ BHAVAN,
           VELAMANNOOR P.O., PARAPPALLY,
           KOLLAM, PIN - 691574

     2     RESHMI RAJENDRAN,
           AGED 29 YEARS,
           C/O. RAJESH M G RAJESH BHAVAN,
           NEDUVANNOOR, AVANEESWARAM RS P.O.,
           THALAVOOR, KOLLAM, PIN - 691508

     3     AJITHA S.,
           AGED 37 YEARS,
           W/O. SABU, SUDHA BHAVANAM,
           NEELIKULAM, KULASEKHARAPURAM,
           CLAPPANA,
           KOLLAM, PIN - 690528

     4     RAJEEV,
           AGED 42 YEARS,
           S/O. K. RAJASEKHARAN NAIR,
           KARUNA,
           EANIKKARA, KARAKULARR P.O.,
           KARAKULAM,
           THIRUVANANTHAPURAM, PIN - 695564
                                               2026:KER:8402
W.P.(C) Nos.2219 & 2316 of 2026

                                  :4:

     5     SAM THOMAS,
           AGED 37 YEARS,
           S/O. THOMAS, THEKKANALIL HOUSE,
           KADAMANKODU P.O., THINKALKARIKKAKOM,
           KOLLAM, PIN - 691310

     6     AMEERKHAN B.,
           AGED 34 YEARS,
           S/O. BASHEER, PUNNAKKULANGARA,
           VADAKKUMTHALA P.O.,
           KARUNAGAPPALLY,
           KOLLAM, PIN - 690536

           BY ADVS.
           SRI.N.ANAND
           SMT.NISHA GEORGE
           SRI.RAJESH O.N.
           SRI.AMEER SALIM
           SRI.SADIQ NAZAR
           SRI.GEORGE POONTHOTTAM (SR.)


RESPONDENTS:

     1     STATE OF KERALA,
           AGRICULTURE (DAIRY) DEPARTMENT SECRETARIAT,
           THIRUVANANTHAPURAM,
           REPRESENTED BY ITS SECRETARY,
           PIN - 695001

     2     THE DIRECTOR,
           DAIRY DEVELOPMENT DEPARTMENT,
           PATTAM PALACE P.O.,
           THIRUVANANTHAPURAM, PIN - 695004

     3     THE THIRUVANANTHAPURAM REGIONAL MILK
           PRODUCERS UNION LTD. NO. T 177 (D) APCOS
           KSHEERA BHAVAN, PATTOM,
           THIRUVANANTHAPURAM,
           REPRESENTED BY ITS MANAGING DIRECTOR,
           PIN - 695004
                                                 2026:KER:8402
W.P.(C) Nos.2219 & 2316 of 2026

                                  :5:

     4     THE RECRUITMENT COMMITTEE,
           THE THIRUVANANTHAPURAM REGIONAL MILK
           PRODUCERS UNION LTD. NO. T 177 (D) APCOS.
           KSHEERA BHAVAN, PATTOM,
           THIRUVANANTHAPURAM,
           REPRESENTED BY ITS CONVENER,
           PIN - 695004

     5     KERALA STATE PRODUCTIVITY COUNCIL,
           PRODUCTIVITY HOUSE, P.B NO: 08,
           H.M.T ROAD, KALAMASSERY, COCHIN,
           KERALA, INDIA,
           REPRESENTED BY ITS CHAIRMAN,
           PIN - 683104

           BY ADV.
           SRI.RENJITH TAMPAN (SR.)
           SMT.LATHA ANAND, SC
           SRI.V.M.KRISHNAKUMAR
           SRI.S.VISHNU (ARIKKATTIL)
           SRI.JAFFAR KHAN, SPL. GOVERNMENT PLEADER

     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 30.01.2026, ALONG WITH WP(C).2219/2026, THE
COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
                                                                  2026:KER:8402
W.P.(C) Nos.2219 & 2316 of 2026

                                       :6:



                                                                           CR
                           N. NAGARESH, J.

          `````````````````````````````````````````````````````````````
               W.P.(C) Nos.2219 and 2316 of 2025

           `````````````````````````````````````````````````````````````
               Dated this the 2nd day of February, 2026


                             JUDGMENT

~~~~~~~~~

The extent of State power in intervening with

the recruitment process for appointment of employees to the

Regional Milk Producers' Co-operative Societies, is the

subject matter of dispute in these two writ petitions.

2. The petitioners in W.P.(C) No.2219/2026 are

Primary Dairy Societies affiliated to the 3rd respondent-

Thiruvananthapuram Regional Milk Producers' Union Ltd. The

petitioners in both the writ petitions contend that constitution

of Recruitment Committees by the Government and 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

introduction of reservation and weightage in appointments to

Dairy Co-operative Societies will seriously intrude into the

autonomy of Dairy Co-operative Societies.

3. In order to implement Operation Flood-II

Project in Kerala, the Government of Kerala entered into an

agreement between themselves and the Indian Dairy

Corporation. Clause 4 of the agreement states that the

Government will permit the Co-operative institutions full

freedom to create positions and to recruit personnel and to fix

their remuneration, which they deem appropriate for carrying

out the Project, subject to such directions as may be given by

a Committee consisting of a nominee of the State

Government, a nominee of IDC/NDDB and the Managing

Director of the Federation/Union. As full freedom is to be

given to Co-operative institutions, it was for the Union to

create Committees to recruit personnel and fix their

remuneration.

2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

4. The Government of Kerala issued G.O. (MS)

No.1/2021/DD dated 19.01.2021 and approved Recruitment

and Promotion Rules for the three Regional Milk Producers'

Unions, namely the Thiruvananthapuram Regional Co-

operative Milk Producers' Union Limited, the Ernakulam

Regional Co-operative Milk Producers' Union Limited and the

Malabar Regional Co-operative Milk Producers' Union Limited.

The petitioners state that Ext.P2 G.O. dated 19.01.2021 and

the Recruitment and Promotion Rules appended to the said

G.O. cannot be treated as statutory rules. Under Section 109

of the Kerala Co-operative Societies Act, such provisions will

have to be notified in the Official Gazette to be operative.

5. The petitioners state that Section 80 of the

Kerala Co-operative Societies Act requires that the

Government shall classify Societies and make rules,

prescribing qualifications and conditions of service of the

employees of the Societies. Provisions for classification of Co-

2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

operative Societies are contained in Rule 182 of the Kerala

Co-operative Societies Rules. In Appendix III, classifications

have been incorporated. The three Regional Milk Producers'

Societies / Central Societies are not included in Appendix III.

Therefore, method of recruitment cannot be prescribed by the

Government, as long as the Regional Milk Producers' Unions

are included in Appendix III.

6. The petitioners state that even though the

respondents claim that the Government has power under

Section 80(8) of the Kerala Co-operative Societies Act, such

power cannot include method of classification as classification

is exclusively governed by Section 80 of the Act and Rule 182

of the Rules. The petitioners would reiterate that the

Recruitment and Promotion Rules appended to Ext.P2 G.O.

and approved by the Government cannot be treated as Rules

as contemplated under Section 109 of the Kerala Co-

operative Societies Act since the Recruitment and Promotion 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

Rules are not notified in the Official Gazette.

7. The petitioners state that the Kerala Co-

operative Societies Act was amended by Gazette Notification

dated 12.02.2021, incorporating Section 80BB. The amended

provision provided for constitution of Recruitment Committees

for the entire selection and recruitment of all permanent

employees across the three Regional Co-operative Milk

Producers Unions as per Ext.P3 Notification dated

14.11.2021.

8. The petitioners state that the

Thiruvananthapuram Regional Co-operative Milk Producers'

Union Limited initiated proceedings for promotion by selection

to the posts under supervisor/managerial cadre, as per Ext.P4

Notification dated 11.03.2024. An aspirant to one of the posts

filed W.P.(C) No.20753/2024 before this Court and this Court

passed an interim order dated 11.06.2024 directing that the

selection process shall not be done without getting further 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

orders of the Court. The Interim order was later modified by

this Court on 18.09.2025 permitting selection proceedings

except to the post of Assistant Manager (Production).

9. In the meanwhile, the Government issued

further guidelines as per G.O. (Rt.) No.73/2024/DD dated

05.06.2024 prescribing procedure for functioning of the

Recruitment Committees. The said G.O. permitted constitution

of Sub Committees for the purpose of conducting interviews.

Such a provision is intended to enable the State machinery to

have final say in the appointments, allege the petitioners.

10. By G.O. (P) No.4/2024/DD dated

25.05.2024, the Government notified the constitution of a

Recruitment Committee for all selection of all permanent

employees of the Regional Cooperative Milk Producers' Union

other than Managing Director, in Thiruvananthapuram. By

another G.O. (Rt.) No.112/2025/DD dated 07.07.2025,

whereby the Government ordered integration of the two 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

agencies intended for conducting written test and for

conducting group discussion / skill test, into one agency.

Thereafter, the Thiruvananthapuram Regional Cooperative

Milk Producers' Union Limited published e-Tender

No.TRU/PER/1/2025/2673 dated 09.10.2025 for selecting an

agency for recruitment process.

11. The petitioners state that the Recruitment

Committee, on an unknown date, selected the Kerala State

Productivity Council as the Agency to conduct the selection

process. One of the Union's Board of Directors is also on the

Board of Directors of the Productivity Council. The decision to

appoint the Productivity Council is intended to illegally

influence the selection process, contended the petitioners.

12. The petitioners state that the Government

again issued G.O. (Rt.) No.144/2025/DD dated 01.11.2025

pending for grant of weightage to dairy farmers and their

dependents in appointment to Regional Milk Producers' 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

Unions. As the Co-operative Societies Act and the Co-

operative Societies Rules already provide norms for

reservation, the Government could not have granted

reservation to dairy farmers by way of any executive

instruction, without any statutory support. Now, the

Thiruvananthapuram Regional Co-operative Milk Producers'

Union Limited has issued a detailed Recruitment Notification

No.TRU/PER/1/2025/35-DETAILED dated 03.11.2025 for

recruitment to various categories. Even thereafter, the Milk

Producers' Union issued Circular No.TRU:PER:1:2025-26

dated 07.11.2025 making amendments to reservation norms.

13. The petitioners argued that the Government

cannot frame Recruitment and Promotion Rules under which

the impugned notifications are issued, without such rules

being notified in the Official Gazette. The Government cannot

interfere with the functioning of the Regional Milk Producers

Societies. The Government, in effect, has taken over powers 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

of recruitment of employees of the Unions which is

impermissible. The Government has encroached the Unions'

selection process. Now, the entire selection process from

publishing Recruitment Notification to publication of rank list,

is effectively influenced and controlled by the Government.

14. Section 80BB does not permit the

Recruitment Committee to delegate their functions to an

outside agency. Neither the Recruitment Committee nor the

State Government can delegate statutory responsibilities to

any other agency. Similarly, the Government's insistence on

awarding weightage to certain sections is unsupported by

statute. Circular dated 07.11.2025 introduces weightage only

based on relationship, making the posts more or less heritable

in nature. Heritability and public appointments do not go hand

in hand. Public employment cannot afford preferential routes

through family trees.

2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

15. The petitioners therefore seek to declare that

Section 80BB of the Kerala Co-operative Societies Act is

arbitrary and violative of Article 14 of the Constitution of India.

The petitioners also seek to quash G.O. dated 19.01.2021,

the G.O. dated 05.06.2024, the G.O. dated 25.05.2024, the

G.O. dated 07.07.2025, the e-Tender Notification of the

Thiruvananthapuram Regional Co-operative Milk Producers'

Union Limited dated 09.10.2025 and the Circular dated

07.11.2025.

16. The Thiruvananthapuram Regional Milk

Producers' Union Limited filed counter affidavit and opposed

the writ petition. The Union stated that the petitioners have no

locus standi to maintain the writ petition. They have no direct

nexus with the cause of action. Section 80BB does not affect

the petitioners in any manner. Constitutional validity of a

legislative enactment can be challenged only on the grounds

of lack of legislative competency or violation of any of 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

the fundamental rights. The petitioners have not questioned

the legislative competence nor they have a case that Section

80BB offends any of their fundamental rights.

17. It is further submitted that the Government is

not in any way controlling the appointments to the Society.

The Managing Director of the Apex Federation is the

Convenor of the Recruitment Committee. The Recruitment

Committee is independent in nature. The decision to form the

Recruitment Committee was decided in the meeting of the

office bearers of all the three Regional Co-operative Milk

Producers' Unions, the Apex Federation and the Government.

The decision to form Recruitment Committee was adopted by

the special General Body meetings of all the three Regional

Co-operative Milk Producers' Unions unanimously. Even the

petitioners had attended the General Body meeting.

18. The challenge against the G.O. dated

25.05.2024 is based on a wrong premise that the Government 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

is required to constitute a Recruitment Committee, every time

the Regional Co-operative Milk Producers' Union proposes to

hold selection. The Committee is a long-standing Committee.

Extensive consultation process was undertaken by the Apex

Society before introducing the changes. Discussions were

carried out with several similar Co-operative Societies outside

the State.

19. The Rule making powers of the Government

under Section 109 and Section 80 are distinct. Section 80(3)

and Section 80(8) are standalone provisions which enabled

the Government to frame Rules dehors the powers under

Section 109. Therefore, the condition of publication in Official

Gazette is not required for making regulations under Section

80(3) and Section 80(8). Employment under the Regional Co-

operative Milk Producers' Union cannot be treated as public

employment. Therefore, weightage granted to dairy farmers

cannot be said to be illegal or unconstitutional. There is no 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

provision prohibiting the Co-operative Societies from granting

preference in appointments to deserving category of persons.

The writ petitions are therefore without any merit and are

liable to be dismissed.

20. The Director, Dairy Development

Department also opposes the writ petitions. The Milk Co-

operative Societies in Kerala operate under a three tier

structure. In the year 2020, the Managing Director of the

Kerala Co-operative Milk Marketing Federation submitted a

draft Uniform Recruitment and Promotion Rules to the

Government for approval. These Rules aimed to standardise

matters relating to qualification, remuneration, allowances and

promotion across all the three Regional Milk Producers'

Unions. Before seeking Government approval, the Federation

had conducted extensive discussions with the Trade Unions

and reviewed models from Milk producers' Unions outside

Kerala. Recognising the necessity of common rules, the State 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

Government approved the Rules.

21. The Director urged that Section 80(8) gives

explicit power to the Government to frame uniform service and

conduct Rules for any or all classes of Co-operative Societies.

Earlier, the three Regional Co-operative Milk Producers'

Unions had maintained its own promotion policies which were

amended periodically. All the three Unions felt the necessity

to form common rules.

22. The Recruitment Committee is constituted to

ensure fairness in the selection process. The Notifications

issued by the Government are in tune with Section 80BB.

Guidelines have been issued by the Government to ensure

transparency in the selection process. There is no illegality in

granting weightage to dairy farmers and to their family. The

Government issued order dated 01.11.2025 after considering

the necessity of granting weightage. There is no substance in

the contention of the petitioners and the writ petitions are 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

therefore liable to be dismissed.

23. I have heard the learned Senior Counsel

assisted by the counsel for the petitioners and the learned

Special Government Pleader representing the State of Kerala.

I have also heard the learned Senior Counsel assisted by the

counsel for the Recruitment Committee and the learned

Standing Counsel for the Thiruvananthapuram Regional

Cooperative Milk Producers' Union.

24. The petitioners challenge formation of

Recruitment Committee and further proceedings by the

respondents initiated for making appointments in

Thiruvananthapuram Regional Co-operative Milk Producers'

Union. The constitution of Recruitment Committee by the

Government for the said purpose is based on the power

conferred on the Government under Section 80BB of the

Kerala Cooperative Societies Act, 1969.

2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

25. Section 80BB of the Kerala Cooperative

Societies Act, 1969 reads as follows:

80BB. Recruitment Committee for appointments in Regional Co-operative Milk Producer's Union -

(1) Notwithstanding anything contained in this Act or rules made thereunder Government shall, by notification in the Gazette, constitute Recruitment Committees which shall be the competent committees for the entire selection and recruitment process of all permanent employees of the Regional Co-operative Milk Producers' Union.

(2) The Recruitment Committee for undertaking the selection process of all employees other than the Managing Director shall consist of not more than eight members. The Secretary to Government in charge of Dairy Development shall be the Chairman of the Committee and the Managing Director of the apex body of the Regional Co-operative Milk Producers' Union, appointed by the Government, shall be the Convener of the Committee. The other members shall be as follows namely:―

(i) Registrar of Dairy (Co-operatives);

(ii) Chairman of the Apex Society;

(iii) Joint Director (General), Dairy Development Department or Joint Secretary to Government, Dairy Development Department, Government of Kerala;

2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

(iv) An expert from Dairy Industry nominated by the Government.

(v) Chairman, Regional Co-operative Milk Producers' Union;

(vi) Managing Director, Regional Co- operative Milk Producers' Union.

(3) The Recruitment Committee for undertaking the selection process of the Chief Executive or the Managing Director of the Regional Co-operative Milk Producers' Union shall consist of not more than four members. The Secretary to Government in charge of Dairy Development Department shall be the Chairman of the Committee and the Chairman of Regional Co-operative Milk Producers' Union shall be the Convener of the Committee. The other members shall be the Managing Director of the apex society and an expert from Dairy Industry, nominated by the Government.

Section 80BB, in fact, casts an obligation on the Government

to constitute Recruitment Committees for the entire selection

and recruitment process of all permanent employees of the

Regional Co-operative Milk Producers' Unions.

26. The petitioners argue that Section 80BB

treats Milk Producers' Societies differently from similarly

placed other Central Co-operative Societies without any 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

intelligible differentia, thereby inviting the wrath of Article 14 of

the Constitution of India. For other Co-operative Societies,

either PSC or the Co-operative Examination Board conducts

selection process.

27. The constitutional validity of an Act can be

challenged only on two grounds, viz. (1) lack of legislative

competence; and (2) violation of any fundamental rights

guaranteed in Part III of the Constitution or any other

Constitutional provision. It has been so held by the Apex

Court in Greater Bombay Co-operative Bank Ltd. v. United

Yarn Tex. Pvt. Ltd. and others [(2007) 6 SCC 236]. In the

judgment in State of A.P. and others v. McDowell & Co.

and others [(1996) 3 SCR 721], the Apex Court held that

except the above two grounds, there is no third ground on the

basis of which a law made by the competent legislature can

be invalidated.

2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

28. The petitioners do not question legislative

competence in enacting Section 80BB. However, the

petitioners have a case that the provision is arbitrary and

discriminatory towards Milk Producers' Societies. Therefore,

the context under which Section 80BB has been inserted in

the Kerala Co-operative Societies Act, 1969 gains

significance.

29. India's journey from a milk-deficit country in

1960s, to the world's large milk producer owes its success to

Operation Flood, launched by the National Dairy Development

Board (NDDB). This program introduced a Three-tier Co-

operative Society model at Village, District and State level.

Operation Flood-II Project was to be implemented by the

Government of India, State Governments, Indian Dairy

Corporation (IDC), NDDB and Milk Producers' Co-operative

Societies with the assistance from the International

Development Association (IDA) in various parts in India and 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

mutually selected Districts of the State of Kerala.

30. In order to avail itself of the benefits under

the Project and to assist IDC in complying with the various

covenants in the Project, an agreement was entered into by

the State Government with the IDA and IDC. In the

agreement, the Government undertook to take necessary

action, including steps for the amendment of the Kerala Co-

operative Societies Act, 1969 to the extent required and

issuance of notification by the State Government to facilitate

the formation of Dairy Co-operative Societies, District Co-

operative Milk Producers' Unions and Federations of such

Unions in the project area.

31. The Government further undertook to permit

the Co-operative institutions full freedom to create positions

and to recruit personnel and to fix their remuneration which

they deem appropriate for carrying out the project, subject to

such directions as may be given by a Committee consisting of 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

a nominee of the State Government, a nominee of ICD/NDDB

and the Managing Director of Federation/Union. The State

Government has thus undertaken to introduce necessary

amendments to the Act, 1969 and the agreement undertakes

to give necessary directions to the Co-operative institutions

functioning in the Dairy Sector, which are necessary to

implement the project.

32. Thereafter, the Managing Director of the

Kerala Milk Marketing Federation Limited submitted draft

"Recruitment and Promotion Rules" for the three Regional

Milk Producers' Unions including the Thiruvananthapuram

Regional Milk Producers' Union Limited and the Government

of Kerala and approved the Rules. Rule 2(1)(o) of the

approved Recruitment and Promotion Rules contemplated

constitution of a Recruitment Committee as per the provisions

of the Bye-laws of the Union for selection of candidates for

posts, except for the post of Managing Director. The three 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

Regional Unions have amended their respective Bye-laws to

facilitate the constitution of the Recruitment Committee.

33. The afore facts would indeed indicate that all

these steps are taken by the Unions and the Government of

Kerala in order to achieve a larger national goal as part of

Operation Flood, joining hands with IDC, NDDB, IDA and Milk

Producers' co-operative Societies. The amendments are in

public interest and national interest. In the aforesaid context,

Dairy/Milk Co-operatives stand on a different footing and there

is intelligible differentia in introducing Section 80BB in the

Kerala Co-operative Societies Act, 1969. The challenge

against Section 80BB based on violation of Article 14 of the

Constitution is therefore liable to be rejected.

34. The petitioners would further argue that the

Government approved Recruitment and Promotion Rules and

various Government Orders enabling the constitution of

Recruitment Committees for appointment to the posts in the 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

three Regional Milk Producers' Unions, cannot be treated as

valid Rules as those Rules are not notified in Official Gazette.

The petitioners rely on Section 109 of the Kerala Co-operative

Societies Act to urge so.

35. Section 109 of the Kerala Co-operative

Societies Act, 1969 reads as follows:

109. Power to make rules.-

(1) The Government may, for the whole or, any part of the State and for any class of societies, after previous publication, by notification in the Gazette, make rules either prospectively or retrospectively to carry out the purposes of this Act.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-

(i) the applicant to whom the order refusing the registration of a society may be sent by the Registrar;

(ii) the procedure and conditions for change in the form and extent of the liability of a society;

(iii) the matters in respect of which a society shall or may make bye-laws;

(iv) the procedure to be followed for amendment of bye-laws by a society;

(v) the qualifications or disqualifications of individuals who may be admitted as members of societies;

2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

(vi) the payment to be made and the interests to be acquired before the exercise of the right of membership;

(vii) the appointment by a society of one of its members to represent and vote on its behalf at a meeting of another society of which it is a member;

(viii) the maximum number of shares or portion of the share capital of a society which may be held by an individual member;

(ix) the procedure for the nomination of a person to whom the share or interest of a member on his death may be transferred or the value thereof may be paid;

(x) the mode in which the value of a deceased member's share shall be ascertained;

(xi) the election of members of the committee by the general body of a society;

(xii) the requisitioning of a general body meeting of a society;

(xiii) the remuneration payable to a new committee or administrator or administrators appointed by the Registrar under section 32 or section 33;

(xiv) the qualifications or disqualifications for membership of the committee of a society;

(xv) the qualifications of employees of societies;

(xvi) the prohibition against officers of a society being interested in contracts with the society;

(xvii) the matters connected with the direct and indirect partnership of the Government in societies;

(xviii) the rate at which dividend may be paid by societies;

(xix) the constitution of the Co-operative Education Fund, the payment to be made to the fund by a society out of its net profit and the mode of its investment;

(xx) the mode of investment of funds of a 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

society;

(xxi) the objects of the reserve fund of a society and the mode of its investment;

(xxii) the mode of disposal of the reserve fund of a society on its winding up;

(xxiii) the extent to which and the conditions subject to which a society may receive deposits and loans;

(xxiv) the restrictions on transactions by a society with non members;

(xxv) the restrictions on grant of loans by a society against its shares;

(xxvi) the form and standards of fluid resources to be maintained by societies accepting deposits and granting cash credits;

(xxvii) the procedure to be followed in proceedings before the Registrar, arbitrator or other person deciding disputes;

(xxviii) the conditions subject to which the assets of a society shall vest in a liquidator and the procedure to be adopted in the winding up of a society;

(xxix) the procedure for the recovery of amounts due or payable to a society;

                    (xxx)     the mode of making attachment
         before judgment;

(xxxi) the manner of registering the address of a society;

(xxxii) the account books and registers to be kept by a society, and power of the Registrar to call for any returns or to direct the accounts and books to be written up;

(xxxiii) the manner of certification of entries in the books of a society and of copies of documents kept by it in the course of its business;

(xxxiv) the statements and returns to be furnished by a society to the Registrar;

(xxxv) the restrictions on persons appearing as legal practitioners;

2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

(xxxvi) the inspection of documents and the levy of fees for granting certified copies thereof;

(xxxvii) the procedure to be followed in, and the fees for, audit and arbitration under this Act; and (xxxviii) any other matter required or allowed by this Act to be prescribed.

(3) Every rule made under this section shall be laid as soon as may be after it is made before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly agrees that the rule should be either modified or annulled, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.

Section 109(2) does not specifically take in the power to make

rules relating to recruitment of employees in Co-operative

Societies, though the residuary clause Section 109(2)(xxxviii)

provides for any other matter required or allowed by the Act to

be prescribed.

36. Section 80 of the Kerala Co-operative

Societies Rules provides for classification of Societies and for 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

regulating qualifications and conditions of service of officers

and servants of different classes of Co-operative Societies.

Section 80 reads as follows:

80. Officers, etc. of Co-operative Societies:-

(1) The Government shall classify the societies in the State according to their type and financial position.

(2) The Government shall, in consultation with the Registrar, fix or alter the number and designation of the officers and servants of the different classes of societies specified in sub-section (1).

(3) The Government shall, make rules either prospectively or retrospectively regulating the qualification, remuneration, allowances and other conditions of service of the officers and servants of the different classes of societies specified in sub-

section (1). The appointment shall be regularised only after verifying his/her character and antecedents on subsequent police verification, as may be prescribed.

(3A) Notwithstanding anything contained in this Act or the rules made or orders issued thereunder or in the bye-laws of any society relating to the recruitment and conditions of service of officers and servants of societies, except the Chief Executive of the societies all appointments of officers and servants of the societies mentioned in the Schedule I for which direct recruitment is resorted to shall be made from a select list of candidates furnished by the Kerala PSC and in 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

making such recruitment the reservation principles under Rule 14 to 17 of the Kerala State and Subordinate Service Rules, 1958 shall be followed. The appointment of Chief Executive of apex societies shall be made by the Government after fixing qualifications.

(3AA) Notwithstanding anything contained in this Act or any other law, or judgment or order of any court, all appointments already made on the advice by the Kerala Public Service Commission following the reservation principles under Rule 14 to 17 of the Kerala State and Subordinate Service Rules, 1958 to the societies mentioned in the schedule for which direct recruitment shall be resorted to shall be deemed to have been validly done as if such provisions were in force at that time.

(3B) All appointments made by direct recruitment to the societies referred to in sub-section (3A) or on after the 25th day of April, 1995 and before the date of publication of the Kerala Co-operative Societies (Amendment) Ordinance, 1995 (Ordinance No.10 of 1995) shall be invalid.

(4) Notwithstanding anything contained in sub- section (1) or sub-section (2), ten per cent of the posts of employees of every society shall be reserved for appointment from persons belonging to the scheduled castes and scheduled tribes where the method of appointment to such posts is by direct recruitment.

(5) Notwithstanding anything contained in sub- section (1) or (2) four percent of the total posts of employees of every society shall be reserved for physically handicapped persons having disability of forty percent or above, as certified by the medical 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

board and the procedure of appointment shall be such as may be prescribed.

Provided that in societies where there are more than ten and less than twenty five employees including cadre and sanctioned posts, there shall be reserved a minimum of one employee belonging to physically handicapped persons.

(6) Government shall have power to fix or alter the maximum and minimum limit of establishment expenses of Co-operative Societies including the pay and allowances and other benefits of employees of Co-operative Societies.

Provided that societies run on net loss can give pay and allowances to its employees below the minimum limit fixed by the Government.

(7) Notwithstanding anything contained in the bye-laws, a society shall not pay bonus to its employees exceeding the amount and the rate fixed by the Government or the Registrar from time to time.

(8) Government shall, by order, frame uniform Service Rules and Conduct Rules for the employees of any or all classes of the co-operative societies.

(9) Suspension and disciplinary action in relation to an officer, employee or servant of a co-operative society shall be such, as may be prescribed.

(10) The Government may, on mutually agreed terms and on application of a society, depute a Government servant to the service of the society for the purpose of managing its affairs and the Government servant so deputed shall exercise 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

such powers and perform such duties as may be prescribed."

37. Sub-section (8) to Section 80 provides that

Government shall by order frame uniform service Rules and

Conduct Rules for the employees of any or all classes of Co-

operative Societies. Section 80 is independent of Section

109. It provides for framing Uniform Conduct and Service

Rules "by order". Section 80 does not insist that such Rules

framed by Government Orders be published in the Official

Gazette. The Government has issued orders impugned in

these writ petitions, including those providing for Recruitment

Committees for Milk Producers' Unions, in exercise of the

powers conferred under Section 80. As the Section does not

mandate publication in Official Gazette, the impugned orders

cannot be declared illegal on the ground of non-publication in

Official Gazette.

38. In fact, requirement of Gazette publication of

Rules/Orders passed under Section 80, came up for 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

consideration before a Division Bench of this Court in KPSC

v. P.K. Ramesan [2005 (4) KLT 466]. The Division Bench

held as follows:

On the other hand, Section 80(3) of the Kerala Co- operative Societies Act provides that "the Government shall, in consultation with the State Co- operative Union, make rules either prospectively or retrospectively regulating the qualification, remuneration, allowances and other conditions of service of the officers and servants of the different classes of societies specified in sub-section (1)". Sub-section (1) deals with classification of the Societies. The power conferred on Government by sub-section (3) of Section 80 as extracted above does not oblige the Government to notify the Rules so made in order to publish it in the official Gazette, as required in terms of Section 109(1) of the Act.

The argument of the petitioners based on Section 109 is liable

to be rejected in the light of the Division Bench judgment also,

in KPSC (supra).

39. The petitioners argue that classification of

Societies as provided in Section 80 of the Kerala Co-operative

Societies Act and Rule 182 of the Kerala Co-operative

Societies Rules read together would show that a Society 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

classified should be included in Appendix III and all

appointments made by direct recruitment to such Societies

shall be made from a select list of candidates furnished by the

Kerala PSC. As long as the Regional Milk Producers' Unions

are not included in Appendix III, those Unions cannot be

treated differently. If the Unions are included in Appendix III,

then the recruitments can be only through Kerala PSC.

Therefore, constitution of Recruitment Committees for making

appointments to the Regional Milk Producers' Unions is illegal.

40. It may be seen that classification as

contemplated under Section 80 should be according to their

type and financial position and such classification is basically

intended to fix or alter the number and designation of the

officers and servants of the different classes of Societies. The

constitution of Recruitment Committees for making

appointments to the Regional Milk Producers' Unions is not

primarily intended for fixing or altering the number and 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

designation of the officers and servants of those Unions. It is

not a classification according to their type or financial position.

Therefore, the arguments of the petitioners are unsustainable.

41. The legislative competency of the State

Legislature in introducing Section 80BB in the Act, 1969 is not

under challenge. As far as the Thiruvananthapuram Regional

Milk Producers' Union Limited is concerned, there are 2219

members in the Union. In the General Body meeting held on

27.01.2018, 406 members participated, out of whom, 404

members supported the proposal to constitute Recruitment

Committee. The draft of the Recruitment and Promotion

Regulations which also contemplates constitution of

Recruitment Committee, emanated from the Apex Society.

This is evident from Ext.R3(f) minutes dated 21.10.2020 of the

Federation. The respective Regional Unions have amended

their bye-laws in order to form Recruitment Committees

proposed through the amendments. Therefore, it cannot be 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

said that the State Government is usurping the powers of the

Regional Milk Producers' Unions in the matter of recruitment.

The changes brought about are with the full support and co-

operation of the Regional Milk Producers Unions and the

Federation.

42. In the facts and circumstances of the case, I

do not find any reason to interfere with the action taken by the

respondents in forming Recruitment Committees and

proceeding with the selection process.

The writ petitions are therefore without any

merit and hence dismissed.

Sd/-

N. NAGARESH, JUDGE aks/02.02.2026 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

APPENDIX OF WP(C) NO. 2219 OF 2026 PETITIONERS' EXHIBITS:

Exhibit P1 A TRUE COPY OF THE GOVERNMENT ORDER DATED 27.04.1979 ISSUED BY THE AGRICULTURAL (ANIMAL HUSBANDRY DEPARTMENT) IN NO. G.O.(P) NO.

183/79/AD Exhibit P1(a) A TRUE COPY OF THE ORDER DATED 12.01.2024 PASSED BY THE HON'BLE SUPREME COURT IN SLP(C) NO. 835/2024 Exhibit P2 A TRUE COPY OF GO(MS) NO. 1/2021/DD ISSUED BY RESPONDENT NO.1 DATED 19.01.2021 Exhibit P3 A TRUE COPY OF ACT NO. 34/2021 PUBLISHED IN THE GAZETTE NOTIFICATION DATED 14.11.2021 IN NO.

3110/LEG.H2/2021/LAW Exhibit P4 A TRUE COPY OF THE NOTIFICATION DATED 11.03.2024 ISSUED BY RESPONDENT NO.3 IN NO. TRU/PER/35/2024 (A) Exhibit P5 A TRUE COPY OF THE NOTIFICATION DATED 03.06.2024 ISSUED BY RESPONDENT NO.3 IN NO. TRU/PER/35/2024 Exhibit P6 A TRUE COPY OF THE ORDER DATED 11.06.2024 PASSED BY THIS HON'BLE

Exhibit P7 A TRUE COPY OF THE ORDER DATED 18.09.2025 PASSED BY THIS HON'BLE

Exhibit P8 A TRUE COPY OF THE ORDER DATED 05.06.2024 PASSED BY RESPONDENT NO.1 IN NO. G.O. (RT) NO. 73/2024/DD Exhibit P9 A TRUE COPY OF THE NOTIFICATION DATED 25.05.2024 ISSUED BY RESPONDENT NO.1 IN NO. G.O. (P) NO. 4/2024 DD Exhibit P10 A TRUE COPY OF THE ORDER DATED 07.07.2025 PASSED BY RESPONDENT NO.1 IN G.O. (RT) NO. 112/2025/DD Exhibit P11 A TRUE COPY OF THE NOTIFICATION DATED 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

09.10.2025 ISSUED BY RESPONDENT NO.4 IN NO. TRU/PER/1/2025/2673 Exhibit P12 A TRUE COPY OF THE LIST OF BOARD OF DIRECTORS AS UPLOADED IN THE WEBSITE OF THE RESPONDENT NO.5 Exhibit P13 A TRUE COPY OF THE ORDER DATED 01.11.2025 ISSUED BY RESPONDENT NO.1 IN NO. G.O. (RT). NO. 144/2025/DD Exhibit P14 A TRUE COPY OF THE DETAILED NOTIFICATION DATED 03.11.2025 ISSUED BY THE 3RD RESPONDENT UNION IN NO.

TRU/PER/1/2025-35-DETAILED Exhibit P15 A TRUE COPY OF THE CIRCULAR DATED 07.11.2025 ISSUED BY 3RD RESPONDENT UNION IN NO. TRU:PER:1::2025-26/2019

RESPONDENTS' EXHIBITS:

Exhibit R3(d) A TRUE COPY OF THE RESOLUTION PASSED BY THE GENERAR BODY MEETING HELD ON 27.01.2022 Exhibit R3(e) A TRUE COPY OFTHE RELEVANT PAGES OFTHE BYE-RAWS OFTHE 3RD RESPONDENT SOCIETY Exhibit R3(a) A TRUE COPY OF THE MINUTES OF THE MEETING DATED 10/10/2017 Exhibit R3(b) A TRUE COPY OF THE MINUTES OF MEETING DATED 27/01/2018 Exhibit R3(c) THE ATTENDANCE PARTICULARS OFTHE SPECIAL GENERAL BODY MEETING OFTHE 3D RESPONDENT UNION HELD ON 27.01.2018 Exhibit R3(h) A TRUE COPY OF THE MINUTES OF THE MEETING DATED 07.05.2024 Exhibt R3(f) A TRUE COPY OF THE RESOLUTION DATED 21.10.2020 OF THE KCCMF Exhibit R3(g) A TRUE COPY OF THE MINUTES OF THE MANAGING COMMIFTEE MEETING DATED 23.10.2020 Exhibit R3(i) A TRUE COPY OF THE ATTENDANCE LIST.

Exhibit R4(a) TRUE COPY OF THE RELEVANT PORTION OF THE BYELAW OF THE 3RD RESPONDENT.

2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

APPENDIX OF WP(C) NO. 2316 OF 2026

PETITIONERS' EXHIBITS:

Exhibit P1 A TRUE COPY OF THE GOVERNMENT ORDER DATED 27.04.1979 ISSUED BY THE AGRICULTURAL (ANIMAL HUSBANDRY DEPARTMENT) IN NO. G.O.(P) NO.

183/79/AD Exhibit P1(a) A TRUE COPY OF THE ORDER DATED 12.01.2024 PASSED BY THE HON'BLE SUPREME COURT IN SLP(C) NO. 835/2024 Exhibit P2 A TRUE COPY OF GO(MS) NO. 1/2021/DD ISSUED BY RESPONDENT NO.1 DATED 19.01.2021 Exhibit P3 A TRUE COPY OF ACT NO. 34/2021 PUBLISHED IN THE GAZETTE NOTIFICATION DATED 14.11.2021 IN NO.

3110/LEG.H2/2021/LAW Exhibit P4 A TRUE COPY OF THE NOTIFICATION DATED 11.03.2024 ISSUED BY RESPONDENT NO.3 IN NO. TRU/PER/35/2024 (A) Exhibit P5 A TRUE COPY OF THE NOTIFICATION DATED 10.05.2024 ISSUED BY RESPONDENT NO.3 IN NO. TRU/PER/35/2024 Exhibit P6 A TRUE COPY OF THE ORDER DATED 11.06.2024 PASSED BY THIS HON'BLE

Exhibit P7 A TRUE COPY OF THE ORDER DATED 18.09.2025 PASSED BY THIS HON'BLE

Exhibit P8 A TRUE COPY OF THE ORDER DATED 05.06.2024 PASSED BY RESPONDENT NO.1 IN NO. G.O. (RT) NO. 73/2024/DD Exhibit P9 A TRUE COPY OF THE NOTIFICATION DATED 25.05.2024 ISSUED BY RESPONDENT NO.1 IN NO. G.O. (P) NO. 4/2024 DD Exhibit P10 A TRUE COPY OF THE ORDER DATED 07.07.2025 PASSED BY RESPONDENT NO.1 IN G.O. (RT) NO. 112/2025/DD 2026:KER:8402 W.P.(C) Nos.2219 & 2316 of 2026

Exhibit P11 A TRUE COPY OF THE NOTIFICATION DATED 09.10.2025 ISSUED BY RESPONDENT NO.4 IN NO. TRU/PER/1/2025/2673 AS PUBLISHED IN MATHRUBUMI DAILY NEWSPAPER ON 09.10.2025 Exhibit P12 A TRUE COPY OF THE RELEVANT PAGES OF LIST OF BOARD OF DIRECTORS AS UPLOADED IN THE WEBSITE OF THE RESPONDENT NO.5 Exhibit P13 A TRUE COPY OF THE ORDER DATED 01.11.2025 ISSUED BY RESPONDENT NO.1 IN NO. G.O. (RT). NO. 144/2025/DD Exhibit P14 A TRUE COPY OF THE DETAILED NOTIFICATION DATED 03.11.2025 ISSUED BY THE 3RD RESPONDENT UNION IN NO.

TRU/PER/1/2025-35-DETAILED Exhibit P15 A TRUE COPY OF THE CIRCULAR DATED 07.11.2025 ISSUED BY 3RD RESPONDENT UNION IN NO. TRU:PER:1::2025-26/2019 Exhibit P16 A TRUE COPY OF THE APPLICATION SUBMITTED BY PETITIONER NO.4 ALONG WITH THE COPY OF THE DEMAND DRAFT DATED 16.03.2015.

 
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