Kerala High Court Refuses To Stay Common Software Tender For Agricultural Credit Societies, But Seeks Bid Details Before Contract

The Kerala High Court has refused to stay the tender process initiated by the State government in a move to have a centralised Uniform Common Software for all Primary Agricultural Credit Societies (PACS).

Justice Gopinath P. was considering a plea preferred by the Managing Committee of PACS, namely Kallettumkara Service Co-Operative Bank Ltd., registered under the Kerala Cooperative Societies (KCS) Act.

It had challenged the Registrar of Cooperative Societies' Request for Proposal (RFP) for selection of consortium for providing such a uniform application. By imposing such a software, the petitioner alleges, the government's aim was to have direct and concurrent access to the internal functioning of PACS.

According to the petitioner, the government was attempting to gain control over PACS contrary to the objective and intent of the KCS Act and Rules, which only provides for a limited supervisory jurisdiction to the government.

The petitioner has thus challenged the RFP as violative of Article 43B of the Constitution, which mandates the State to endeavour to promote voluntary formation, autonomous functioning, democratic control and professional management of cooperative societies.

The petitioner has also alleged that tenders have been invited for supplying the software but the conditions for the same have been tailor-made to suit certain large players like FINCuro/UST Global, ULTS, Malabar IT Cooperative, which have the favour of the government.

The plea further states that as per the RFP structure, the government's financial liability is limited and the substantial costs for the implementation has to borne by the PACS themselves, many of which are financially distressed. Such an insistence by the state government is unwarranted since there is already a free and optional national-level common software introduced by the Central government through NABARD, it is stated.

The plea prays for the quashing of the RFP and for a declaration that the tender process initiated under the RFP was violative of the objectives of the KCS Act. As an interim prayer, stay of all the proceedings in furtherance of the RFP was sought.

However, the Court refused to allow the interim prayer, and permitted the State, Department of Cooperation and the Registrar (respondents 2 to 4) to proceed with the tender process:

“I am prima facie not inclined to stay the further proceedings pursuant to the impugned orders. Respondents…are permitted to proceed with the tender process and also to award the work to the successful bidder. However, before entering into the agreement, the details of the bid shall be placed before this Court.”

Case No: WP(C) No. 1603 of 2026

Case Title: Kallettumkara Service Co-Operative Bank Ltd. v. Union of India and Ors.

Counsel for the petitioner: George Poonthottam (Sr.), Nisha George, Sidharth R. Wariyar

Counsel for the respondents: K. Gopalakrishna Kurup – Advocate General, P.P. Thajudheen – Special Government Pleader, Imam Gregorious Karat – Government Pleader, Vivek A.V. – Central Government Counsel

Click to Read/Download Interim Order