ANIL K. NARENDRAN, J.

1. Appellants are the petitioners in W.P. (C) No. 27413 of 2014. They have approached this Court in the said Writ Petition seeking a writ of certiorari to quash Ext.P2 circular issued by the Deputy Director, Department of Dairy Development, Palakkad, the 2nd respondent herein, dated 30/8/2014 and Exts.P3 and P3(a) memos issued by the Walayar Ksheerolpadaka Sahakarana Sanghom Ltd. No. P100 (D) APCOS, the 3rd respondent herein, dated 9/9/2014, and also seeking a declaration that the total prohibition of collection of milk produced in other States, by the Cooperative Societies in Kerala, imposed by the 1st and 2nd respondents is arbitrary, ultra vires, unconstitutional and void. The learned single Judge by judgment dated 24/10/2014 dismissed the said writ petition in limine. It is aggrieved by the said judgment of the learned single Judge, the appellants are before us in this writ appeal.

2. We heard the arguments of the learned counsel for the appellants and also the learned Government Pleader appearing for respondents 1 and 2.

3. According to the appellants, they are small scale dairy farmers living in the border areas of Tamil Nadu State and the places where they live are separated from Kerala State by Walayar River. The 3rd respondent is a Dairy Co-operative Society of Milk Producers registered under the Kerala Co-operative Societies Act, 1969, and the Society is also having registration under the Department of Dairy Development, Kerala. The 3rd respondent Society, formed with the objective of enhancing the production of pure milk and marketing it through the District and Regional Dairy Co-operative Societies, is having its area of operation limited to Ward Nos. 11 and 12 of Puthussery Panchayat in Palakkad District. The appellants do not have any source in their area for marketing the milk obtained from the cows they rear and the nearest place where they can sell their milk is with the 3rd respondent Society. Since the appellants are residing outside the area of operation of the 3rd respondent Society, they are assigned with Cow-Non-Member Code Nos. 5117 and 5060, respectively, which is evident from Ext.P1 receipts issued by the Society. While so, the 2nd respondent issued Ext.P2 circular by which the Societies in the border districts including the 3rd respondent Society are interdicted from collecting milk from outside the State. On receipt of Ext.P2 circular, the 3rd respondent issued Exts.P3 and P3(a) memos to the appellants, expressing its inability to purchase milk from them. According to the appellants, Ext.P2 circular and Exts.P3 and P3(a) memos are arbitrary, unconstitutional and violative of the freedom of trade guaranteed under Article 301 of the Constitution of India.

4. From the pleadings on record, it is not in dispute that the 3rd respondent is a Dairy Co-operative Society of Milk Producers registered under the Kerala Co-operative Societies Act, 1969, (hereinafter referred to as the Act) with its area of operation limited to Ward Nos. 11 and 12 of Puthussery Panchayat in Palakkad District. It is an Anand Pattern Co-operative Society (APCOS) formed with the objective of enhancing the production of pure milk and marketing it through the District and Regional Dairy Co-operative Societies. It is also not in dispute that the appellants are dairy farmers living outside the area of operation of the 3rd respondent Society, in the border areas of Tamil Nadu State, and as such, they are not entitled to be members of the said Society. This is the mandate of Section 16(1)(a)(iii) of the Act, which says that, no person shall be admitted as a member of a Society except who is a resident within, or is in occupation of land in the area of operation of the Society.

5. Further, the 3rd respondent being a Society registered under the Act has to confine its business activities within its area of operation. This is the mandate of Section 7(1)(c) of the Act. When the Director of Dairy Development, th