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by sayum
13 April 2026 6:42 AM
"While the right to vote enables a member to exercise franchise in accordance with the statutory scheme, the right to contest an election or to be elected is a distinct and additional right which may legitimately be made subject to qualifications, eligibility conditions, and disqualifications," Supreme Court, in a significant ruling, held that co-operative societies do not qualify as "State" under Article 12 of the Constitution merely because they are subject to statutory regulation, while dealing with the validity of bye-laws prescribing eligibility conditions for contesting elections.
A bench of Justice B.V. Nagarathna and Justice R. Mahadevan observed that the right to contest an election is a distinct statutory right from the right to vote, and can be legitimately subjected to threshold performance criteria to ensure functional and accountable governance.
The present appeal arose from a judgment of the Rajasthan High Court which struck down specific bye-laws of various District Milk Producers’ Co-operative Unions. These bye-laws prescribed eligibility conditions, such as supplying a minimum quantity of milk for at least 270 days, for the Presidents of Primary Milk Societies to contest elections to the Board of Directors of the District Unions. The appellants, who were Chairpersons of five such Unions, approached the Supreme Court arguing that they were adversely affected by the High Court's judgment despite not being made parties to the original writ proceedings.
The primary question before the court was whether writ petitions under Article 226 are maintainable against co-operative societies for disputes concerning internal elections and governance. The court was also called upon to determine whether the impugned bye-laws prescribing eligibility criteria to contest elections amounted to impermissible statutory disqualifications under the Rajasthan Co-operative Societies Act, 2001.
Co-Operative Societies Not "State" Under Article 12
The Supreme Court first addressed the preliminary objection regarding the maintainability of writ petitions against the District Milk Unions. The bench noted that these unions are autonomous, member-driven bodies governed by the Rajasthan Co-operative Societies Act, 2001, and do not qualify as instrumentalities of the State. The Court emphasised that regulatory oversight by the Registrar does not fundamentally alter the character of a private body. The bench categorically observed that "mere regulatory control or the existence of a statutory framework governing its activities would not render such a body amenable to writ jurisdiction."
Statutory Remedies Must Be Exhausted In Election Disputes
Delving into the statutory framework, the Court noted that Sections 58 and 60 of the Act provide a complete, multi-tiered adjudicatory mechanism for election disputes. Since Section 58(2)(c) expressly deems election disputes to be disputes touching the constitution and management of a society, the Registrar holds exclusive jurisdiction. The Court held that the High Court effectively bypassed this self-contained remedial framework. The judges noted that the writ petitioners had "bypassed the statutory dispute resolution mechanism and rendered the remedies under Sections 58 and 104-105 nugatory."
Right To Contest Distinct From Right To Vote
Examining the merits of the bye-laws, the bench drew a sharp doctrinal distinction between the right to vote and the right to contest an election. Relying on precedents like Jyoti Basu v. Debi Ghosal, the Court reiterated that neither right is a fundamental right, but rather purely statutory in nature. While voting is the exercise of franchise, seeking election is an additional right that inherently attracts stricter regulation. The Court observed that "the two rights, though related to the electoral process, operate in different fields and are governed by distinct statutory considerations."
Conceptual Distinction Between Eligibility And Disqualification
The Supreme Court found that the High Court had fundamentally erred by conflating threshold eligibility conditions with statutory disqualifications. Disqualifications under Section 28 of the Act operate as negative, disabling disabilities, whereas the impugned bye-laws established positive, performance-oriented criteria, such as minimum milk supply days. The Court explained that eligibility pertains to "threshold conditions governing entry into the electoral arena" to ensure candidates possess a minimum functional connection to the society.
"The absence of eligibility does not attract any penal or stigmatic consequence; it merely postpones the right to contest until the prescribed conditions are fulfilled."
Bye-Laws Supplement Rather Than Supplant The Act
Upholding the legislative competence of the societies, the Court traced the power to frame such bye-laws to Section 8 read with Schedule B of the Act. These provisions explicitly authorise societies to prescribe norms regarding the minimum essential utilisation of services by a member. The Court ruled that subordinate legislation carries a presumption of validity and the impugned rules were designed to advance the statutory object of ensuring democratic management by actively participating members. The bench stated that the "bye-laws supplement and do not supplant the statutory framework and they further the purpose of ensuring functional, accountable and democratic governance."
Impermissible Invalidation Affecting Absent Parties
The Court also identified a severe procedural flaw in the High Court's approach, noting that the bye-laws were struck down across the entire State without impleading all affected District Milk Unions. Condemning this judgment in rem, the Supreme Court held that altering the legal regime of similarly situated entities without affording them a hearing violates the foundational principle of audi alteram partem. The bench observed that the High Court "transgressed the limits of its writ jurisdiction" by depriving autonomous societies of a fair hearing and unsettling their internal governance structures.
The Supreme Court ultimately allowed the appeal and set aside the impugned judgments of the Rajasthan High Court, upholding the validity of the society bye-laws. The ruling clarifies the bounds of writ jurisdiction over co-operative societies and secures the functional autonomy of such bodies to enforce performance-based eligibility criteria for their leadership.
Date of Decision: 10 April 2026