In Brief
A statutory cooperative milk producers federation granted revised pay scales to employees effective 1 January 1994 citing financial difficulties, rather than from 1 January 1986 as recommended by a government pay commission. The High Court overturned this, holding the federation must implement the recommended date. The Supreme Court reversed the High Court, holding that financial capacity is a material factor for cooperative institutions, unlike government employers who can levy taxes. The Court emphasized that judicial review examines only legality, irrationality and procedural impropriety—not the wisdom of administrative decisions. The federation's decision-making process was lawful and not arbitrary. Additionally, employees claiming equal pay for equal work were rejected as they held different positions with distinct qualifications and duties, and different pay scales are constitutionally permissible.
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