G.N. Ray, J. - (1.) Leave granted.
(2.) Heard learned counsel for the parties. The constitutional validity of the circular dated 19-5-1995 issued by the Secretary to the Government of Kerala directing that for distribution of pumpsets under Comprehensive Coconut Development Programme and other similar schemes of the Agriculture Department and in order to streamline the implementation of the schemes specifying specific roles and responsibilities for different agencies involved. M/s Kerala Agro Industries Corporation (KAICO) and Regional Agro Industries Development Corporation (RAIDCO) would arrange supply of pumpsets in the districts of Kesarkoda, Kanner, Vyanad, Kozhikode. Malsopuram. Palakkad, Trissur and Kottayam and in the remaining districts, supply will be effected by private dealers along with KAICO and RAIDCO, since challenged by the appellants in O. P. No. 16115 of 1995, but upheld by the impugned judgment of the High Court dated February 7, 1996 (reported in AIR 1996 Kerala 329) is in question in this appeal. Such writ petition was disposed of by a common judgment along with other writ petitions being O. A. Nos. 13936 and 14454 of 1995. In the said other writ petitions, the constitutional validity of the circular dated 30-3-1989 issued by the Registrar of Co-operative Societies inter alia directing that all the Land Development Banks, District Co-operative Banks and Service Co- operative Banks in the State of Kerala would patronise RAIDCO to the fullest extent in preference to private dealers in the matter of purchase of Agro Machine under the scheme financed by the Banks/Societies and at any rate not less than 75 % of total requirement of such Agro Machines should be purchased through RAIDCO, was challenged. The High Court has also upheld that validity of such circular by impugned judgment.
(3.) It may stated that in the circular dated 19-9-1995 issued by the Secretary to the Government of Kerala it was also indicated that pumpsets and accessories of the farmers choice alone should be supplied and after-sale service facility should be provided by suppliers/dealers. It was also indicated that the cost of pumpsets and accessories would be supplied at a lesser price than that fixed by the State Level Technical Committee and necessary advance amount would be provided to KAICO and RAIDCO for taking advance action for implementing the scheme. It will also be appropriate to state that in the circular dated 30-3-1989 issued by the Registrar of Co-operative Societies, it was indicated that RAIDCO was the only co-operative in the State under the Co-operative Department, having a network of branches for distribution of all sorts of pumpsets etc. RAIDCO has dealership of almost all important pumpsets manufactured in the country and RAIDCO was sole distributor for Villiers, Petrol/Kerosene engines manufactured by M/s. Enfield India Ltd. In addition, RAIDCO has set up its factory at Palghat with NCDC assistance for the manufacture of pumpsets in collaboration with M/s Kirloskar Bros. Explaining the justification of the said circular, it was also indicated: "Though this is a Co-operative Institution, it is felt that Co-operative bank including the Land Development Banks in the state do not patronise, this society faces stiff competition with private dealers. The District Co-op. Banks. Cannanore and Kasargode have taken policy decisions to the effect that the loans sanctioned by them to the primary societies, for the purchase of Agricultural implements shall be routed only through this Co-operative. This being a society assisted by the Government substantially, it is necessary in the interest of Government also that it functions properly with good business. In the circumstances, all the Land Development Banks, Districts Co-op. Banks and Service Co-operative Banks in the State are directed to patronise RAIDCO to the fullest extent in preference to private dealers. At any rate not less than 75% of the total requirement of Agro Machinery under the scheme financed by the Banks/Societies should be purchased through RAIDCO." ;