KANICHODU MPCS LTD Vs. STATE OF KERALA

JUDGEMENT

(1.) 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 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.