LPAOW No. 34/2018 c/w LPAOW No. 20/2018 Page 1 of 23

HIGH COURT OF JAMMU AND KASHMIR

AT SRINAGAR

LPAOW No. 34/2018, IA No. 1/2017.

c/w

LPAOW No. 20/2018, IA Nos. 1/2017 & 2/2018.

Date of decision: 16.10.2018

The Milk Producers Cooperative

Vs Union of India and others

Marketing Processing Ltd.

Jammu & Kashmir Cooperative

Vs Union of India and others

Union Limited

Coram:

Hon‟ble Mr. Justice Alok Aradhe, Judge

Hon‟ble Mr. Justice Dhiraj Singh Thakur, Judge

For the appellant(s) :

Mr. Altaf Naik, Sr. Adv. & Mr. M. A. Qayoom, Adv.

For the respondent(s) :

Mr. Tahir Majid Shamsi, ASGI with Mr. Abid Kathu, Adv.

Mr. Pranav Kohli, Adv.

i.

Whether approved for

:

Yes

reporting in Press/Media

ii.

Whether to be reported in

:

Yes

Digest/Journal

Per: Thakur -J

01.

These Letters Patent Appeals have been preferred against a

common judgment and order dated 26.03.2018, whereby the

petitions filed by the appellants have been dismissed.

02.

Briefly stated, the material facts are as under:-

03.

Appellant No. 1, i.e., the Milk Producers Cooperative Marketing

Processing Ltd. is a Cooperative Society of Milk Producers,

registered under the J&K Self Reliant Cooperatives Act, 1999

and appellant No. 2, i.e., the Jammu & Kashmir Cooperative

LPAOW No. 34/2018 c/w LPAOW No. 20/2018 Page 2 of 23

Union Ltd. (JKCUL) is a society registered under the Jammu &

Kashmir Cooperative Societies Act, 1989.

04.

The Ministry of Defence is one of the largest procurers of milk

and milk products in the country. With a view to ensure supplies

to the Army, the Government of India, Ministry of Defence vide

communication dated 17.01.2005 authorized the army to

procure their requirement of milk and milk products from

National Cooperative Dairy Federation of India (NCDFI)/State

Milk Cooperative Federation/Government Milk Schemes.

However, in terms of communication dated 13.05.2005,

sanction was accorded to the extension of the provisions of the

aforesaid letter in the case of Military Farms located in Jammu &

Kashmir, J&K Dairy Producers, Processors and Marketing

Cooperative Union Limited (JKDCUL) Jammu, a registered

Cooperative Society with the Government of Jammu & Kashmir,

under the same terms and conditions.

05.

Subsequently, communication dated 24.11.2005 was issued to

the effect that Cooperative Milk Federations duly recognized by

the Government of India, Ministry of Defence and belonging to

J&K State, would only be eligible to participate in the tendering

for supply of milk and milk products to Military Farms located in

Jammu & Kashmir and quantities not supplied through local

federation would be sourced from federation/Cooperatives not

belonging to Jammu & Kashmir State, who are NCDFI members.

Vide another communication dated 21.07.2006, sanction of

the President was conveyed to extend the provisions of

Government letter dated 17.01.2005 in the case of Military

Farms located in Jammu & Kashmir to the Milk Producers

Cooperative Marketing and Processing Limited (MPCMPL), under

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the same terms and conditions. It appears that based upon

these communications, the Army used to enter into negotiated

contracts for supply of milk and milk products including the

appellants. Vide communication dated 10.08.2015, the policy

earlier followed was reiterated in regard to the negotiated

contracts with NCDFI

06.

Vide communication dated 10.08.2015, the policy earlier

followed was reiterated in regard to the negotiated contracts

with NCDFI and State Cooperative Milk Federations/NDDB/ J&K

Dairy Producers, Processors and Marketing Cooperative Union

Limited (JKDCUL) for the State of J