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Madras High CourtWP(MD)/11567/2020allowed

P.T.Rajan v. Deputy Registrar Of Cooperative Societies

2023-09-12Honourable Mrs Justice S.Srimathy10 pages

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 12.09.2023

CORAM:

THE HONOURABLE MRS.JUSTICE S. SRIMATHY W.P(MD) No. 11567 of 2020 and WMP (MD) No. 10080 of 2020 P.T.Rajan

...Petitioner

..Vs..

1. Deputy Registrar of Co-operative Societes, 40/41, Krishna Rao Tank Street, Old RDCC Bank Building, Madurai - 625 001.

2. The Joint Registrar of Co-operative Societes, 13-A, Kanaka Appartments, LDC Road, Madurai - 625 002.

3. The President A 3101, Madurai Milk Project Employees;

Co-operative Thrift and Credit Society Limited, Sivagangai Road, Sathamangalam, Madurai.

...Respondents

PRAYER: Writ Petition filed under Article 226 of the Constitution of to issue a WRIT OF MANDAMUS, directing the first and second respondents to instruct the third respondent to repay 16 matured Fixed 1/10

Deposits deposited by the Petitioner between 13.10.2017 and 10.01.2020 and matured between 05.01.2018 and 07.08.2018, by fixing a time frame, with further interest at the agreed rate of interest in the bonds, until repayment, grant such other relief(s) as expedient to the facts and circumstances of the matter.

For Petitioner : Mr. S. Seenivasagam, For M/s.M.Ganesan For R-1 and R-2 : Mr. M. Ramesh, Government Advocate.

For R-3 : Mr.M.S.Jeyakarthik, Standing Counsel.

O R D E R

This writ petition is filed for writ of mandamus, directing the first and second respondents to instruct the third respondent to repay 16 matured Fixed Deposits deposited by the Petitioner between 13.10.2017 and 10.01.2020 and matured between 05.01.2018 and 07.08.2018, by fixing a time frame, with further interest at the agreed rate of interest in the bonds, until repayment, grant such other relief(s) as expedient to the facts and circumstances of the matter.

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2. It is the case of the petitioner that he has made the following deposits with the third respondent from and out of his retirement funds, which is detailed therein below:

S. No. Deposit No Date Maturity Date Deposit Amount 1.

13.10.2017 15.01.2018 1,00,000.00 2.

13.10.2017 15.01.2018 1,00,000.00 3.

16.10.2017 15.01.2018 1,00,000.00 4.

16.10.2017 15.01.2018 1,00,000.00 5.

16.10.2017 15.01.2018 1,00,000.00 6.

01.11.2017 31.01.2018 75,000.00 7.

03.11.2017 02.02.2018 85,000.00 8.

16.11.2017 16.02.2018 1,00,000.00 9.

17.11.2017 17.02.2018 1,00,000.00 10.

17.11.2017 17.02.2018 1,00,000.00 11.

17.11.2017 17.02.2018 1,00,000.00 12.

17.11.2017 17.02.2018 1,00,000.00 13.

30.03.2017 01.09.2018 75,000.00 14.

30.03.2017 01.09.2018 75,000.00 15.

08.05.2017 07.08.2018 75,000.00 16.

08.05.2017 07.08.2018 75,000.00 Total 14,60,000.00 3/10

3. Although the fixed deposit had matured, the third respondent was not settling the matured amount to the petitioner. Without settling the matured amount, the respondents were renewing the fixed deposit amount funds without obliging the petitioner's request to repay the amount. Therefore, the said writ petition is filed.

4. Mr.M.S.Jeyakarthik, learned Counsel for the third respondent would submit that he has given change of vakalat as early as in the year 2021. Since the third respondent is already aware of the pendency of writ petition, had chosen to get change of vakalat, but had not chosen to represent before this Court through any other counsel, nor present before this Court in person, but had filed counter. Hence, this matter is taken up for final disposal. The case is decided on merits based on the available records.

5. The third respondent had filed counter wherein it is stated that the respondents accept the case of the petitioner that the petitioner had deposited Fixed Deposits. However, the case of the respondent is that the elected Board Members and its employees had misappropriated the 4/10

societies fund to the tune of Rs.6,43,88,647/-. Hence, enquiry was conducted under section 81 of Tamil Nadu Cooperative Societies Act, 1983 and criminal action was also initiated. In order to recover the misappropriated amount, surcharge proceedings was also initiated under Section 87. As per the accounts of the third respondent society, there are 845 Fixed deposits are available to the tune of Rs.7,65,62,107/-. Further the society has issued loans to their members out of the deposited amount. The above loan are long-term loans repayable in 120 monthly installments. The society gets every month collection roughly Rs.15 to 18 lakh from the borrowers. As on 30.11.2020, a sum of Rs.4,27,45,571/- is an outstanding amount to be recovered from members of the society on monthly installments. Further as on 30.11.

2020, the society has bank balance of Rs.2,51,64,596/- in saving bank account and Rs.33,14,234/- in current account. On the other hand, as on 31.05.2020, 486 mature deposits amounting to Rs.3,78,70,866 is pending to be paid to the depositors. The society is having legal obligation to refund the matured deposits with interest to the depositors. However, the assets and the liquid cash of the society is not sufficient to repay the deposited amount to the depositors.

and available cash. Therefore, the third respondent is not in a position to refund all the 486 matured deposits amounting to Rs.3,78,70,866 immediately. Hence, the first respondent formed a committee to list out the depositors in accordance with seniority and prepared to repay the amount in prorate basis i.e. 35% of the deposit amount, so as to equally satisfy all the deposit holders, including those who did not approach the High Court. Based on the committee's report and as per the instructions of the first respondent, the third respondent was about to inform about the refund of 35%. In the meanwhile, the petitioner had approached the High Court. Hence, the third respondent submitted that they had decided to satisfy all the depositors to refund 35% of deposit amount from the available resources of the society. The remaining 65% of the deposit amount will be paid as early in prorata manner to the depositors by collecting the loan repayment.

6. The third respondent sought opinion from the investigation officer in the criminal case, whether the amount can be refunded, but it was opined that it would hamper the further investigation. Moreover, under section 81 enquiry, it revealed that 97 fixed deposits were closed by staffs 6/10

without the knowledge and request from the depositors before its maturity date and swindled a sum of Rs.83,03,470/- and no fixed deposit bonds are available. The petitioners 16 deposits also come under the above mentioned 97 fixed deposits. In respect of this 97 fixed deposits, the first respondent vide proceedings dated 25.08.2020 directed that not to disburse the amount to the above mentioned 97 fixed deposits. Hence, the third respondent is not able to pay the amount without the permission of the first respondent. It is further submitted that due to the misappropriation act of the elected members and the earlier employees of the third respondent society, the present situation prevails in the third respondent society. Hence, the respondent prayed to dismiss the writ petition.

7. The Learned Counsel appearing for the petitioner submitted that in a similar case this Court had already passed an order dated 13.06.2023 in W.P.(MD)No.12519 of 2020, wherein it has been recorded that, "5. In fact, the records would show that on an earlier occasion i.e., on 17.12.2020, the petitioner was even ready to receive 35% of the undisputed amount and the matter was listed for compliance. However, the said order has neither been complied with nor payments have been made.

6. Considering the fact that the petitioner deposits had matured long back and the renewals are being made unilaterally by the respondent, this Writ 7/10

Petition is allowed and mandamus is issued to the third respondent to repay the amount due under the fixed deposit within a period of four weeks from the date of receipt of a copy of this order or its production by the petitioner. No costs. Consequently, connected miscellaneous petition is closed."

8. Following the aforesaid order passed in W.P.(MD)No.12519 of 2020 and considering the fact that the petitioner deposits had matured long back and the renewals are being made unilaterally by the respondent, this Writ Petition is allowed and mandamus is issued to the third respondent to repay the amount due under the fixed deposit within a period of four (4) weeks from the date of receipt of a copy of this order or its production by the petitioner. No costs. Consequently, connected miscellaneous petition is closed.

12.09.2023 NCC :Yes/No Index:Yes/No Internet:Yes/No Nsr 8/10

To

1. The Deputy Registrar of Co-operative Societes, 40/41, Krishna Rao Tank Street, Old RDCC Bank Building, Madurai - 625 001.

2. The Joint Registrar of Co-operative Societes, 13-A, Kanaka Appartments, LDC Road, Madurai - 625 002.

3. The President A 3101, Madurai Milk Project Employees;

Co-operative Thrift and Credit Society Ltd, Sivagangai Road, Sathamangalam, Madurai.

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S. SRIMATHY, J., Nsr W.P(MD) No. 11567 of 2020 12.09.2023 10/10