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Madras High CourtWP(MD)/3731/2017allowed

Thanga.Chinnappa v. The Regional Joint Registrar

2020-07-24Honourable Mr Justice G.R.Swaminathan4 pages

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 24.07.2020

CORAM

THE HONOURABLE MR.JUSTICE G.R.SWAMINATHAN W.P.(MD)Nos.3731 & 4513 of 2017 and W.M.P.(MD).Nos.2990, 4136, 3609, 3610 & 4214 of 2017 W.P.(MD).No.3731 of 2017 Thanga Chinnappa ... Petitioner Vs.

The Regional Joint Registrar of Co-operatives Societies, Thanjavur, Thanjavur District.

... Respondent Prayer: Writ petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorarified Mandamus, to call for the records of respondent in Na.Ka.No.330 of 2017, sa.pa dated 28.02.2017, quash the same and in consequence thereof restore the management of the Society with the elected directors of the board.

For Petitioner : Mr.P.Ganapathi Subramanian For Respondent : Mr.M.Rajarajan Government Advocate W.P.(MD).No.4513 of 2017 1.G.S.Mani 2.S.Gopal 3.R.Ravichandran 4.R.Mahalakshmi ... Petitioners Vs.

The Regional Joint Registrar of Co-operatives Societies, Thanjavur, Thanjavur District.

... Respondent Prayer: Writ petition is filed under Article 226 of the Constitution of India, to issue a Writ of Certiorarified Mandamus, to call for the records of respondent in Na.Ka.No.330 of 2017, sa.pa dated 28.02.2017, quash the same and in consequence thereof restore 1/4

the management of the Society with the elected directors of the board.

For Petitioners : Mr.P.Ganapathi Subramanian For Respondent : Mr.M.Rajarajan Government Advocate.

* * * COMMON ORDER The writ petitioners herein were the members of the Board of Directors of the 2847 Chola Nadu Primary Agricultural Co-operative Credit Society for the period from 2013-2017. The irregularities were said to have been committed during their tenure. Hence, enquiry under Section 81 of the Tamil Nadu Co-operative Societies Act, 1983, was ordered. The enquiry report was submitted on 15.12.2016. The copies of the enquiry report were served on the writ petitioners herein and they were asked to respond as to why they should not be disqualified under Section 36 of the Tamil Nadu Co-operative Societies Act, 1983. The writ petitioners offered their objections. Not satisfied with the same, the respondent herein passed the impugned order dated 28.02.2017, disqualifying all the writ petitioners herein under Section 36 of the Tamil Nadu Cooperative Societies Act, 1983. Questioning the same, these two writ petitions have been filed.

2. Heard the learned counsel on either side.

3. The writ petitioners' counsel reiterated all the contentions set out in the affidavit filed in support of the Writ Petitions and wanted this Court to quash the order impugned in these Writ Petitions.

4. Per contra, the learned Government Advocate submitted that the impugned order does not warrant any interference.

5. During the course of arguments, the writ petitioners' counsel categorically submitted that the so-called loss said to have been caused to the Society has been recovered in full.

6. The learned Government Advocate fairly stated that this assertion of the writ petitioners' counsel is factually correct. All the loans given by the Society have also been recovered. Thus, as on date, the Society had not suffered any loss on account of the writ petitioners herein. Section 36 of the Tamil Nadu Co-operative Societies Act, 1983, reads as follows:- "36.Disqualification and removal.-(1) where in the course of an audit under Section 80 or an inquiry under Section 81 or an inspection or investigation under Section 82 or inspection of books under Section 83 it appears that a 2/4

person who is, or was, a member of a board has mis-appropriated or fraudulently retained any money or other property or been guilty of breach of trust in relation to the Society or of gross or persistent negligence in connection with the conduct and management of, or of gross mismanagement of the affairs of the society, the Registrar may, without prejudice to any other action that may be taken against such member by order in writing, disqualify him permanently from holding in future any office in any registered society. The Registrar shall, if such person holds office of member of the board, also by the same order remove him from that office.

(2).No person shall be disqualified or removed under sub-Section (1) without being given an opportunity of making his representations.

A copy of the order disqualifying or removing him shall be communicated to him."

7. A disqualification in terms of the above provisions can be made only if it can be shown that the writ petitioners are guilty of misappropriation or fraudulent retention of the Society's assets. The writ petitioners can also be disqualified if it is shown that they were grossly negligent in the management of the Society. The writ petitioners are not accused of having committed any act of misappropriation. They have not retained any of the assets of the Society and there is nothing on record to show that there have been grossly negligent or reckless in the management of the Society. Thus the conditions precedent set out in Section 36 of the said Act for disqualifying a member are wholly absent in this case. Therefore, the order impugned in these writ petitions is set aside and both the writ petitions are allowed accordingly. No costs. Consequently, the connected miscellaneous petitions are closed. Sd/- Assistant Registrar (CS II) // True Copy // / /2020 Sub Assistant Registrar(CS) tsg Note:

In view of the present lock down owing to COVID-19 pandemic, a web copy of the order may be utilized for official purposes, but, 3/4

ensuring that the copy of the order that is presented is the correct copy, shall be the responsibility of the advocate/litigant concerned. To:

The Regional Joint Registrar of Co-operatives Societies,Thanjavur,Thanjavur District.

24.07.2020 KK(30.07.2020) 4 P 2C 4/4