A.Chitrarasu v. The Registrar Of Co-Operative Societies,
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 17-07-2025
CORAM
THE HONOURABLE MRS.JUSTICE N. MALA WP No.16169/2023 & WMP.Nos.15558 & 15559/2023 A.Chitrarasu @ Sirrarasu Petitioner(s) Vs 1.The Registrar of Cooperative Societies 170, Periyar EVR High Road Kilpauk, Chennai 600 010.
2.The Joint Registrar of Cooperative Societies O/o.Joint Registrar of Cooperative Societies District Collector's Office Campus Dharmapuri 636 705.
3.The Deputy Registrar of Cooperative Societies O/o.Deputy Registrar of Cooperative Societies District Collector's Office Campus Dharmapuri 636 705.
4.The Sub Registrar, O/o.Sub Registrar Department of Registration, Harur, Harur Taluk Dharmapuri District.
Respondent(s)
PRAYER Writ petition filed under Article 226 of the Constitution of India praying for issuance of a writ of certiorarified mandamus calling for the records of the rd respondent in Na.Ka.No.8798/2022/VI.A dated 01.09.2022 [not communicated] i.e, the conditional attachment order, by erroneously mentioning that the petitioner as the President of K.K.168, Naripalli Primary Agricultural Cooperative Credit Society Limited, and quash the same and consequently direct the 4 th respondent to remove the encumbrances in respect of the properties found mentioned in the 3 rd respondent's conditional attachment order dated 01.09.2022 on its file.
For Petitioner For Respondent(s):
Mr.S.Sathiaseelan Mrs.E.Ranganayaki, GA for RR1 to 3 Mrs.A.Bakkialakshmi, GA for R4
ORDER
(1) The above writ petition is filed by the petitioner for a writ of certiorarified mandamus, to quash the conditional attachment order dated 01.09.2022, of the 3 rd respondent and consequently, to direct the 4 th respondent to remove the encumbrances in respect of the properties. (2) The petitioner's wife was elected as the President of KK168 Naripalli Primary Cooperative Agricultural Society, Harur Taluk, Dharmapuri District. While so, an enquiry under Section 81 of the Tamil Nadu Cooperative Societies Act, 1983 [hereinafter referred to as 'the Act'] was ordered for the loss caused to the Society. An Enquiry Officer was
appointed, an enquiry was conducted and the Enquiry Officer in her Report, dated 09.03.2022, found that grave financial irregularities to the tune of Rs.17,39,25,203/- were committed in the Society. Thereafter, the Society submitted an application to the 1 st respondent for issuance of an order of interim attachment of immovable properties belonging to the petitioner under Section 167 of the Act. Based on the application of the Society, the 1 st respondent passed the impugned order on 01.09.2022, attaching the petitioner's property. Aggrieved by the impugned attachment order, the petitioner filed the above writ petition.
(3) The respondents filed a detailed counter affidavit stating inter alia that the impugned order was passed pursuant to an enquiry under Section 81 of the Act whereunder it was found that grave irregularities leading to severe financial loss to the tune of Rs.17,39,25,203/- was committed in the Society. The respondents stated that if the petitioner's properties were not attached, the recovery of the said amount would be impossible. The respondents hence prayed for dismissal of the writ petition. The petitioner filed a reply to the counter affidavit.
(4) Learned counsel for the petitioner submitted that the impugned order was exfacie illegal since the provisions of Section 167 of the Cooperative Societies Act, could be invoked only in cases where main case was pending under the various provisions stated therein. The learned counsel submitted that in the absence of any proceedings under the aforesaid sections, the impugned order of attachment before judgment was unsustainable and invalid. Learned counsel for the petitioner therefore submitted that the impugned order was passed without jurisdiction and the same was liable to be quashed.
(5) The learned counsel appearing for the respondents reiterated the submissions made in the counter affidavit. The learned counsel for the respondents further submitted that if the petitioner's properties were not attached,, the petitioner would encumber the properties making it impossible for the Society to recover its losses. The learned counsel therefore submitted that the writ petition deserves to be dismissed. (6) I have heard the submissions made on either side and also perused the materials placed on record.
(7) To appreciate and understand the petitioner's contention that the impugned order violates Section 67 of the Tamil Nadu Cooperative Societies Act, 1983, and as such, illegal and unsustainable, it will be necessary to refer to Section 167 of the Act. (8) Section 167 of the Tamil Nadu Cooperative Societies Act, 1983, reads as follows:- '' 167. Furnishing of security and attachment of property.
execution of any decision that may be passed on the reference or of any order that may be passed against him by the Liquidator or the Registrar, as the case may be, the Registrar may, by order, direct the party or the person, to furnish security in such sum and within such time as may be specified in such order and to produce and place at the disposal of the Registrar when required, the said property or such part thereof as may be sufficient for the execution of any decision or order aforesaid.
(2)The Registrar may also in the order made under sub-section (1), or by a separate order, direct the conditional attachment of the said property or such part thereof and such attachment shall have the same effect as if it had been made by a competent Civil Court:
Provided that no order for conditional attachment shall be made under this sub-section unless the Registrar, for the reasons to be recorded in writing, is satisfied that the whole or any part of the property will be disposed of or removed with intent to defeat or delay the execution of any decision or order of the Liquidator or the Registrar, as the case may be.
(9) A plain reading of the aforesaid provision reveals that an order of attachment before judgmentcould be passed only in cases where
proceedings were pending before the Deputy Registrar, either under Section 87, Section 138 or under Section 139 of the Act. In the absence of any proceedings under the aforesaid provisions, the 1 st respondent can have no jurisdiction to invoke Section 167 for attaching the properties of the petitioner. The pendency of the proceedings under the aforesaid provisions is a sine qua non for invocation of jurisdiction under Section 167 of the Act and therefore, as rightly contended by the learned counsel for the petitioner, the impugned order is without jurisdiction and liable to be quashed.
(10) Under the facts and circumstances of the case and inv iew of the violation of Section 167 of the Act, the impugned order dated 01.09.2022 is quashed.
(11) Accordingly, the writ petition is allowed. However, liberty is granted to the respondents to initiate fresh proceedings, under Section 167 of the Act, if found necessary. No costs. Consequently, connected miscellaneous petitions are closed.
17-07-2025 AP
Index:Yes/No Speaking/Non-speaking order Internet:Yes To 1.The Registrar of Cooperative Societies 170, Periyar EVR High Road Kilpauk, Chennai 600 010.
2.The Joint Registrar of Cooperative Societies O/o.Joint Registrar of Cooperative Societies District Collector's Office Campus Dharmapuri 636 705.
3.The Deputy Registrar of Cooperative Societies O/o.Deputy Registrar of Cooperative Societies District Collector's Office Campus Dharmapuri 636 705.
4.The Sub Registrar, O/o.Sub Registrar Department of Registration, Harur, Harur Taluk Dharmapuri District.
N.MALA J.
AP WP No.16169/2023 17-07-2025