The case of Ram Chandra Choudhary & Ors. v. Roop Nagar Dugdh Utpadak Sahakari Samiti Limited and Others (2026 INSC 347) involves a legal challenge to the validity of bye-laws framed by District Milk Producers’ Co-operative Unions in Rajasthan, which prescribed eligibility criteria for contesting elections to their Management Committees.
Factual Background
- The Dispute: Various Primary Milk Producers’ Co-operative Societies challenged the vires of specific bye-laws (Nos. 20.1(2), 20.1(4), 20.2(7), and 20.2(9)). These bye-laws required candidates to meet certain thresholds, such as a minimum number of days of milk supply (270 days) and minimum quantities of milk provided to the Union.
- High Court Ruling: The High Court of Rajasthan declared these bye-laws ultra vires the Rajasthan Co-operative Societies Act, 2001, effectively striking them down across all Unions in the State as a “judgment in rem“.
- The Appellants: The appellants, Chairpersons of five District Milk Unions, were not impleaded as parties in the original High Court proceedings but were directly affected by the decision to strike down their governance framework.
Supreme Court’s Legal Analysis
The Supreme Court allowed the appeal and set aside the High Court’s judgment, identifying several foundational legal and procedural errors.
- Maintainability of Writ Petitions: The Court ruled that the original writ petitions should not have been entertained under Article 226 of the Constitution [14.9, 31].
- Not “State”: District Milk Unions are autonomous, member-driven bodies that do not fall under the definition of “State” or “instrumentalities of the State” under Article 12.
- Alternative Remedy: The Act of 2001 provides a self-contained, multi-tiered remedial framework (including arbitration and appeals to the Registrar or Tribunal) for resolving election and management disputes, which the petitioners failed to exhaust.
- Eligibility vs. Disqualification: The Court clarified a critical conceptual distinction missed by the High Court.
- Disqualifications: Under Section 28 of the Act, these are statutory disabilities (like insolvency or conflict of interest) that render a person ineligible despite meeting baseline criteria.
- Eligibility Criteria: Framed via bye-laws, these are threshold conditions (like participation levels) designed to ensure that only active, contributing members participate in governance. The Court held that the right to contest an election is a statutory right, not a fundamental one, and can be legitimately regulated by such criteria.
- Source of Power: The Court found that Section 8 read with Schedule B of the Act explicitly empowers co-operative societies to frame bye-laws regarding “minimum essential utilization of services” and representation. The impugned bye-laws were, therefore, traceable to the enabling power of the parent statute.
- Violation of Natural Justice: The High Court committed a jurisdictional error by striking down the bye-laws of several Unions without affording them an opportunity to be heard. This violated the principle of audi alteram partem, as the adjudication affected the vested rights and internal governance of entities that were not before the Court.
Conclusion
The Supreme Court concluded that the bye-laws were reasonable, non-arbitrary, and consistent with the object of promoting active and responsible governance within the co-operative framework [8.4, 13]. The appeal was allowed, the High Court’s judgment was set aside, and the validity of the impugned bye-laws was upheld.
2026 INSC 347
Ram Chandra Choudhary & Ors V. Roop Nagar Dugdh Utpadak Sahakari Samiti Limited And Others (D.O. J. 10.04.2026)




