The Kerala High Court has set aside the order dissolving the elected managing committee of the Malabar Regional Co-operative Milk Producers’ Union and directed authorities to reinstate it by November 24, while ordering a fresh inquiry into alleged irregularities.
Justice Viju Abraham issued the judgment on Friday while considering a petition filed by K S Mani, the union’s former chairman, and other former committee members. The petition challenged an order issued by the director of the dairy development department on September 18 to dissolve the committee and appoint an administrator.
The dissolution order had cited various alleged irregularities and the apprehension that evidence could be tampered with. However, the court held that the director, acting as registrar, had illegally invoked Section 32(3) of the Kerala Co-operative Societies Act to dispense with the mandatory notice required under Section 32(1).
The court also noted that the authorities had nearly a month after issuing an inspection notice in August 2026 to seize relevant records, but had not done so during that period. It further rejected the registrar’s claim that the managing committee had obstructed an inspection on September 17. According to the judgment, that allegation did not appear in the original dissolution order and appeared to have been raised later.
The Malabar Regional Co-operative Milk Producers’ Union is part of Milma’s cooperative structure and is responsible for functions connected with milk procurement and dairy operations in the Malabar region. The court’s order therefore affects not only the internal administration of the union but also the governance of a regional institution linked to the organised milk supply system.
The court has granted the inspection team 10 days to seize any documents it considers relevant to the inquiry. It has also directed the authorities to reinstate the elected committee in place of the administrator currently in charge by November 24.
The restored committee will have limited powers during the inquiry. It may handle day-to-day administration but has been barred from taking policy decisions until the proceedings are completed. This arrangement allows the cooperative’s routine operations to continue while preventing major policy changes during the review.
The registrar has been directed to complete the fresh inquiry and pass new orders within two months. The process must comply with the statutory consultation requirements under the Kerala Co-operative Societies Act, the court said.
The court also specified that if the inquiry is not completed within the prescribed period, the managing committee will be free to take policy decisions in accordance with law. The immediate administrative milestone is the committee’s reinstatement by November 24, followed by the 10-day period for document seizure and the two-month deadline for completion of the inquiry.
