IMPORTANT POINTS
The 33 primary societies referred to in the order of the Registrar having been found to be entitled for membership, there is no reason to delve into the technicalities. A central milk marketing society would only be benefited by grant of affiliation to primary societies since it would only aid to procure more milk for its business.

JUDGMENT :

The issue involved in these writ petitions relate to the grant of affiliation to Primary Milk Producers Societies with the Central Society. WP(C) No.10590 of 2020 is filed by few primary societies, seeking assignment of membership numbers to them and to permit them to participate in the general body meeting of the Central Society. They also challenge the legality of the general body meeting which was slated to be held on 03.06.2020. Pending the writ petition, the Registrar/Director of Dairy Development passed an order dated 15.06.2020 directing assignment of affiliation number to 33 primary societies, which include the petitioners in WP(C) No.10590 of 2020. WP(C) No.12760 of 2020 is filed by the Central Society challenging the said order of the Registrar/Director of Dairy Development.

2. Heard learned counsel Sri.P.N.Mohanan for the Central Society, the learned Additional Advocate General on behalf of the Director of Dairy Development, Sri.R.T.Pradeep and Sri.M.Sasindran the learned counsel for the primary societies.

3. On the complaint of various primary societies, the Registrar/Director of Dairy Development as per order No.C1/4732/2020 dated 15.06.2020, directed the Central Society to assign affiliation number to 33 primary societies. The direction was issued taking into consideration two aspects; firstly, that on facts there was no ground to refuse membership to the primary societies, and secondly, that they are already deemed members in view of the deeming provision under Section 8A(2) of the Co-operative Societies Act since the Central Society did not pass orders on the applications of the primary societies seeking affiliation, within the stipulated period of sixty days from the date of application.

4. Clause 5 of the bye-laws of the Central Society deals with membership. Clause 5.2.1 of the bye-law reads thus:-

“Any registered Primary Milk Producer's Co-operative Societies can be a member. The byelaws of such societies shall be in conformity with the model bye-laws recommended by the Union and accepted by the Registrar of Co-operative Societies.”

5. Clause 13 of the bye-laws deals with the obligations of an ordinary member. Clause 13.1.1. reads thus:-

“Supply commodities procured or held by it with the exception of what is retained for local consumption, only to the Union and will not supply or sell directly to any other agency.”

6. The Central Society had attempted to incorporate the said provision in the bye-laws as an eligibility criterion for grant of membership. However, the same was turned down by the statutory authorities. The challenge against the same before this Court, in WP(C) 4959 of 2011, was not successful.

7. On 08.02.2016, the Registrar of Dairy Development issued a circular directing the Central Society to provide membership to all primary societies, if membership is sought for in the prescribed form and on paying the requisite fees. The same was challenged before this Court by the Central Society, in WP(C) No.2974/2017, relying on a resolution of the Board of Directors passed in the year 1997, mandating the requirement under Clause 13.1.1 referred to supra as a condition for grant of membership. The challenge was turned down and the writ petition was dismissed. The Central Society took up the matter in appeal as W.A. 1684/2017. The Division Bench in its judgment dated 18.08.2017 held thus:-

“5. We have considered the arguments and in our view, the functional autonomy of the Union is not disturbed. It has a right to refuse. But, that refusal has to be with reference to the provisions of the Act, the Rules and the bye-laws. The direction of the Registrar cannot mean that whoever comes and whatever he may be doing, if he applies, he had to be admitted. The appellant is a Co-operative Milk Producers' Union at the regional level. It can thus, enroll only functional Primary Milk Co-operatives. For the said purpose, to verify the bona fides, it is not just the form that is to be seen. It can look into, whet