Z - 322 Tiruppuvanam Silk Handloom v. The State Of Tamilnadu

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 05.04.2023

CORAM

The Honourable Mr. Justice R.SUBRAMANIAN and The Honourable Mrs. Justice L.VICTORIA GOWRI WA.(MD)Nos.377 & 378 of 2023 CMP(MD) Nos.4137 & 4139 of 2023 1.Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, Represented by its President, G.Thiyagarajan 2.L.S.Jothi Vice President, Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, 34/64 Mela Veedhi, Tiruppuvanam Thiruvadaimaruthur Taluk, Thanjavur District. 3.Ko.Ki.Bhaskar Director, Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, 34/64 Mela Veedhi, Tiruppuvanam Thiruvadaimaruthur Taluk Thanjavur District.

4.R.Rajan Director,Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, 34/64 Mela Veedhi, Tiruppuvanam Thiruvadaimaruthur Taluk, Thanjavur District.

5.M.Sekhar Director Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, 34/64 Mela Veedhi, Tiruppuvanam Thiruvadaimaruthur Taluk Thanjavur District.

6.S.Prema Director Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, 34/64 Mela Veedhi, Tiruppuvanam Thiruvadaimaruthur Taluk Thanjavur District.

7.J.V.Ambikavathy Director, Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, 34/64 Mela Veedhi, Tiruppuvanam Thiruvadaimaruthur Taluk Thanjavur District.

.. Appellants/Petitioners in both writ appeals.

8.V.Narayanasamy Director, Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, 34/64 Mela Veedhi, Tiruppuvanam Thiruvadaimaruthur Taluk Thanjavur District.

9.N.B.Nagendran Director, Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, 34/64 Mela Veedhi, Tiruppuvanam Thiruvadaimaruthur Taluk Thanjavur District.

10.R.Varalakshmi Director Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, 34/64 Mela Veedhi, Tiruppuvanam Thiruvadaimaruthur Taluk Thanjavur District.

11.M.T.Vijayakumar Ex-Director Z-322 Tiruppuvanam Silk Handloom Weavers Cooperative Society Limited, 34/64 Mela Veedhi, Tiruppuvanam Thiruvadaimaruthur Taluk Thanjavur District.

... Appellants/petitioners in WA(MD) No.378/2023 Vs.

1.The State of Tamil Nadu rep. by its Secretary to Government Department of Cooperative and Handlooms Fort St. George, Chennai 09.

2.The Joint Director of Handlooms Office of the Director of Handlooms and Textiles, Chennai 600 018.

.. Respondents in both writ appeals 3.The Assistant Director of Handlooms Office of the Handloom Assistant Director HB7 SIDCO Factory, Tiruppuvanam Thanjavur District ... Respondent in WA(MD) No.378/2023

Writ Appeals are filed under Clause 15 of the Letters Patent against the order dated 25.01.2023 passed in WP(MD) Nos.27619&27620/2022. For Appellants : Mr.K.P.S.Palanivelrajan Senior counsel for Mr.B.Jameelarasu For Respondents : Mr.Veera Kathiravan Additional Advocate General assisted by Mr.K.S.Selvaganesan Government Advocate COMMON JUDGMENT [Judgment of the Court was delivered by R.SUBRAMANIAN, J.] Being aggrieved by the order of the Writ Court, dated 25.01.2023 made in W.P(MD)Nos.27619 and 27620 of 2022, the appellants/writ petitioners are before this Court with these appeals.

2. The Writ Court has refused to interfere at this stage, since what is contemplated is only an enquiry. The writ Court has also redressed the complaint of the petitioner that the petitioners have not been supplied with the enquiry report under Section 81 of the Cooperative Societies Act, 1983

(hereinafter referred to as 'the Act').

4. Mr.K.P.S.Palanivelrajan, learned Senior counsel appearing for the petitioners, would contend that the very initiation of the 81 enquiry is flawed inasmuch as the order initiating enquiry under Section 81 is not a speaking order and he would rely upon Rule 104 of the Cooperative Society Rules to contend that the Registrar shall examine whether there is any need to hold an enquiry or make an inspection/investigation, as the case may be. He would also draw our attention to Section 81, which empowers the Registrar to direct an enquiry on his own motion. Relying upon the judgment of the Hon'ble Supreme Court in Municipal Corporation of Greater Mumbai v.

Ankita Sinha and others, the learned Senior Counsel would attempt to project that to exercise suo-motu jurisdiction by the Registrar, it should be proceeded by an enquiry or the order must disclose a subjective satisfaction of the Registrar on the need to conduct an enquiry. We do not think that we can give such a narrow interpretation to the power conferred on the Registrar to order suo-motu enquiry under Section 81 of the Act. If the Registrar suspects that there are some irregularities, he can exercise the power under Section 81 and order a suo-motu enquiry.

5. This Court has repeatedly held that Section 81 report is only a fact finding enquiry and further steps have to be taken based on such an enquiry. The writ Court has given the opportunity to the petitioners to raise all grounds when subsequent enquiry is initiated. We have also considered the said provision in W.A(MD) No.345 of 2023 in Arumuga Nainaar v. The Registrar of Cooperative Societies and others, wherein, we have affirmed the view of the writ Court. Hence, we do not find any reason to entertain these writ appeals. The writ appeals fail and the same are dismissed. No costs. consequently connected Miscellaneous Petitions are closed. (R.S.M.,J.) (L.V.G.,J.) 05.04.2023 Index : Yes/No Internet : Yes RR To 1.The Secretary to Government Department of Cooperative and Handlooms Fort St. George, Chennai 09.

2.The Joint Director of Handlooms Office of the Director of Handlooms and Textiles, Chennai 600 018.

3.The Assistant Director of Handlooms

Office of the Handloom Assistant Director HB7 SIDCO Factory, Tiruppuvanam, Thanjavur District

R.SUBRAMANIAN,J.

and L.VICTORIA GOWRI,J.

RR WA .(MD)Nos.377 and 378 of 2023 05.04.2023