The court affirmed the Government's authority to establish Recruitment Committees for Milk Producers' Societies under Section 80BB of the Kerala Co-operative Societies Act, validating recruitment processes without statutory rule publication in the Gazette.

JUDGMENT :

N.NAGARESH, J.

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 3^rd 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.

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-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 si