High Court of Karnataka Hears Petitions Challenging Tender and Work Orders in Cooperative Milk Marketing. Petitions Filed by Warehousing Agent and Co-Packer Against Karnataka Cooperative Milk Federation and Its Unions Alleging Breach of Exclusive Contracts for Telangana Operations.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

Background: The case involved two writ petitions filed before the High Court of Karnataka challenging certain actions of the Karnataka Co-operative Milk Producers Federation Limited (KMF) and its member unions regarding the marketing and processing of Nandini brand milk products in the State of Telangana. The petitioners, M/s Shree SSR Enterprises and M/s Sree Rajeshwari Dairy Products Ind (Pvt) Ltd, claimed to hold exclusive contracts for warehousing/clearing/forwarding and co-packing operations respectively. KMF had entrusted the Hyderabad/Telangana market to its union, Hassan Co-operative Milk Producers Society Union, which had appointed these petitioners. Disputes arose when KMF permitted another union, Raichur Bellary Koppal District Co-operative Milk Producers Societies Union, to market products in certain districts of Telangana and issued tenders that allegedly overlapped with the petitioners' exclusivity. The petitioners sought certiorari to quash these communications and tenders. Among prior proceedings, an earlier writ petition concerning a 2023 tender was dismissed in March 2023. The arguments centered on whether the exclusive agency agreements barred parallel appointments. The judgment text, however, only records the facts and reliefs; the court's analysis and final order are not included in the provided excerpt.

Issue of Consideration

Whether the impugned communications and tender were violative of the petitioners' exclusive contractual rights as warehousing, clearing, forwarding agent and co-packer for Telangana, and thus liable to be quashed.

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Case Details

2026 LawText (KAR) (06) 56

Writ Petition No. 23487 of 2024 c/w Writ Petition No. 22850 of 2024

2026-06-01

Justice Suraj Govindaraj

Sri Jayakumar S. Patil, Sr. Advocate for Sri Pruthvi Wodeyar and Sri Mohamad Tahir A; Sri Yogesh D. Naik, AGA; Sri Sumanth L. Bharadwaj; Sri M. Shyam Prasad; Sri Pradeep S. Sawkar; Sri Pramod Nair, Sr. Advocate for Sri Santosh Muttalli; Sri Anand Muttalli

M/s Shree SSR Enterprises and M/s Sree Rajeshwari Dairy Products Ind (Pvt) Ltd

State of Karnataka, Karnataka Co-operative Milk Producers Federation Ltd, Raichur Bellary Koppal District Co-operative Milk Producers Societies Union, Hassan Co-operative Milk Producers Societies Union, SR Marketing and Services, M/s Shakti Milk and Milk Products

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Nature of Litigation

Writ petitions under Articles 226 and 227 of the Constitution of India seeking certiorari to quash certain administrative communications and tender documents.

Remedy Sought

Quashing of communication dated 07.08.2024 and work order dated 07.11.2024 in WP 23487/2024; quashing of tender dated 20.05.2024 and letter of award dated 07.08.2024 in WP 22850/2024.

Filing Reason

The petitioners alleged that KMF and its unions violated exclusive contractual arrangements for warehousing, clearing, forwarding, and co-packing operations in Telangana by issuing parallel permissions to other unions or agents.

Previous Decisions

An earlier writ petition No.4989/2023 challenging a tender notification dated 25.01.2023 was dismissed on 16.03.2023.

Issues

Whether the communication dated 07.08.2024 and the subsequent work order dated 07.11.2024 granting marketing rights to Raichur Union in specified Telangana districts were valid when the petitioner claimed to be the exclusive warehousing, clearing and forwarding agent for the entire Telangana. Whether the tender dated 20.05.2024 and the consequent letter of award dated 07.08.2024 for co-packing and related activities were valid considering the petitioner's existing agreement with Hassan Union and the alleged unilateral division of Hyderabad market by KMF.

Submissions/Arguments

The petitioners submitted that they held exclusive contracts for their respective services covering the entirety of Telangana, and that KMF's actions violated those contractual rights and caused operational disruption.

Judgment Excerpts

The petitioner claims to be a partnership firm engaged in marketing, warehousing, and clearing and forwarding operations in the State of Telangana. by communication dated 07.08.2024, KMF permitted respondent No.3 - The Raichur Bellary Koppal District Co-Operative Milk Producers Societies Union ... to market Nandini milk and allied products in the districts of Warangal, Adilabad, Nizamabad, Karimnagar, and Khammam. the petitioner, having been selected, entered into an agreement dated 01.01.2020 for a further period of three years.

Procedural History

The writ petitions were filed and pending. During pendency, in WP 23487/2024, an additional work order dated 07.11.2024 was challenged by way of amendment. The matters were heard and reserved for orders on 17.02.2026, and the order was pronounced on 01.06.2026.

Acts & Sections

  • Constitution of India: Article 226, Article 227
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