The Supreme Court has intervened in a dispute involving Rajasthan’s dairy co-operative sector, setting aside a High Court judgment that had struck down key eligibility conditions in milk union elections. The case centered on whether such internal rules could be challenged directly under writ jurisdiction.
Background of the Case
The dispute arose from a batch of writ petitions filed before the Rajasthan High Court, challenging certain bye-laws framed by District Milk Producers’ Co-operative Unions. These provisions imposed conditions such as minimum milk supply, operational continuity, and audit classification for candidates contesting elections to the unions’ governing bodies.
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In 2015, a Single Judge declared these bye-laws invalid, holding them beyond the scope of the Rajasthan Co-operative Societies Act, 2001. The Division Bench later upheld this decision in 2022.
The present appeal was filed by chairpersons of several milk unions who were not parties in the original proceedings but claimed to be directly affected by the ruling.
The Supreme Court first addressed whether the appellants had the right to challenge the High Court ruling. It noted that even non-parties could appeal if a judgment adversely affects their rights.
“The test is whether the decision has civil consequences on the appellants,” the Court observed, recognizing them as “persons aggrieved.”
A key issue before the Court was the maintainability of the original writ petitions. The bench examined whether co-operative societies fall within the scope of writ jurisdiction under Article 226 of the Constitution.
It clarified that such jurisdiction is generally invoked when there is a public law element. Internal disputes of co-operative societies, especially those concerning elections and management, do not automatically qualify.
“The existence of a statutory framework does not convert internal disputes into public law matters,” the Court noted.
The bench further emphasized that co-operative societies are not “State” entities merely because they are regulated by statute. Regulatory oversight, it said, does not amount to deep and pervasive control required to bring such bodies within constitutional scrutiny.
Another significant factor considered was the availability of statutory remedies under the Rajasthan Co-operative Societies Act, 2001.
The Court pointed out that disputes relating to elections and management fall within the jurisdiction of the Registrar under the Act. These mechanisms provide a complete framework, including appellate remedies.
The bench noted that the writ petitioners had approached the High Court without exhausting these remedies.
The Court also flagged procedural lapses in the High Court proceedings. It observed that several affected milk unions were not made parties, yet the judgment had a wide-ranging impact across the State.
Such an approach, the Court indicated, raised concerns of violation of natural justice.
In conclusion, the Supreme Court held that the High Court erred in entertaining the writ petitions without first determining their maintainability and without considering the statutory remedies available.
The impugned judgments of the Single Judge and Division Bench were set aside. The Court restored the matter, emphasizing that disputes of this nature must be addressed within the framework provided under the governing statute.
Case Details
Case Title: Ram Chandra Choudhary & Ors. v. Roop Nagar Dugdh Utpadak Sahakari Samiti Ltd. & Ors.
Case Number: Civil Appeal No. 4352 of 2026 (arising out of SLP (C) No. 38579 of 2025)
Judge: Justice R. Mahadevan and B.V.Nagarathna
Decision Date: APRIL 10, 2026.
