Madras High Court
N.Ravi vs The Registrar Of Co-Operative ... on 28 April, 2022
W.P.No.24847 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 28.04.2022
CORAM:
THE HONOURABLE MS.JUSTICE V.M.VELUMANI
W.P.No.24847 of 2021 and
W.M.P.No.26137 of 2021
N.Ravi .. Petitioner
Vs.
1.The Registrar of Co-operative Societies,
No 170, NV Natarajan Maaligai,
Periyar EVR High Road,
Poonamallee High Road,
Kilpauk,
Chennai – 600 010.
2.Joint Registrar of Co-operative Societies,
Thiruvarur Zone,
Thiruvarur. .. Respondents
Prayer: Writ Petition is filed under Article 226 of the Constitution of India,
praying for issuance of a Writ of Certiorari, calling for the records of the
second respondent in the proceedings in Na.Ka.No.3980/2021/r/g and quash
the order dated 03.11.2021.
For Petitioner : Mr.T.Srinivasaraghavan
For Respondents : Mr.T.K.Saravanan
Government Advocate
1/10
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W.P.No.24847 of 2021
ORDER
The petitioner has come out with the present Writ Petition challenging
the order of the 2nd respondent dated 03.11.2021.
2.The petitioner is the President of Thapplampuliar Primary
Agricultural Co-operative Credit Society. By the impugned order dated
03.11.2021, the petitioner was suspended from the post of President.
According to the petitioner, he was elected President and the 2nd respondent
has no power to suspend the petitioner. Section 76-A of the Tamil Nadu Co-
operative Societies Act, 1983 (hereinafter referred to as the 'Act') is inserted in
Chapter VIII of the Act, which deals with paid officers and servants of the
society. The President and Vice President cannot be equated with paid officers
or servants of the society. The petitioner was in service till end of May 2021
and till such time, there was no enquiry conducted. After change of
Government, the petitioner is victimized and the impugned order is issued and
the same is invalid and illegal.
3.The learned counsel appearing for the petitioner submitted that the
respondents have simply extracted the ingredients mentioned in Section 76-A
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W.P.No.24847 of 2021
of the Act, respondents did not apply their mind and there is no prima facie
evidence to show that the petitioner mismanaged or committed breach of trust.
Without there being any subjective satisfaction, the impugned order has been
passed in a routine manner. In support of his contention, the learned counsel
appearing for the petitioner relied on paragraph Nos.24 & 25 of the order of
this Court reported in 2021 (6) CTC 349, (D.Krishnamoorthy and another
Vs. The Registrar of Co-operative Society(Housing) and another), wherein
this Court at paragraph Nos.24 & 25 has held as follows:
“ ... 24.Whether the suspension of elected
officer bearers is warranted pending an inquiry,
depends upon the facts and circumstances of each
case. As pointed out, supra, the requirement of
Section 76-A is not merely the existence of prima
facie material. The Registrar must return a
finding on the basis of such material that an
order of suspension was necessary in public
interest or in the interests of the society. In other
words, the Registrar must satisfy himself that if
such suspension is not made, there is scope for
the office bearers to interfere with the inquiry
and/or tamper with the evidence. In the absence
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W.P.No.24847 of 2021
of the any such apprehension, there will be no
requirement for suspension and the inquiry can
go on.
25.Section 76-A is a drastic power which
interferes with the rights of the elected members
who have been voted to office, and must,
therefore, be exercised very sparingly and only in
the clearest cases where there is objective
material to show that the continuation of office
would interfere and impede a free and fair
inquiry under Section 81. Otherwise, persons who
have lost the election can always take control
through a back door by getting the Registrar pass
an order suspending the office bearers on the
basis of external influence. Such a course is
expressly forbidden in the light of the judgment of
the Supreme Court in State of M.P. v. Sanjay
Nagayach reported in (2013 7 SCC 25).”
4.The 2nd respondent filed counter affidavit and denied all the averments
made by the petitioner in the affidavit.
5.Mr.T.K.Saravanan, learned Government Advocate appearing for the
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W.P.No.24847 of 2021
respondents submitted that number of complaints were received against the
petitioner for mismanagement of the affairs of the society and in collusion
with Village Administrative Officer, the petitioner has misappropriated the
funds from Paddy Crop Insurance. Based on the complaint, the Revenue
Divisional Officer conducted enquiry and submitted his report, stating that
during the year 2018-2019, the petitioner caused loss to the tune of
Rs.6,50,376/- to the society by way of claiming Paddy Crop Insurance
scheme. The enquiry under Section 81 of the Act is ordered and the said
enquiry is pending. If the petitioner continues to hold the post, he will
influence the witness and tamper with the evidence. He further submitted that
there is a prima facie case against the petitioner for having committed breach
of trust and mismanagement of the affairs of the society. The petitioner is
suspended from the post of President in the interest of public. As per Section
76-A of the Act, the 2nd respondent has power to suspend the President or Vice
President. Section 81 enquiry would be completed within 3 months if interim
stay granted is vacated. The learned Government Advocate denied that due to
political vendetta and due to change of Government, the present impugned
order is issued. On the other hand, the earlier Government only ordered
enquiry and the same is continued after the election and prayed for dismissal
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W.P.No.24847 of 2021
of the Writ Petition.
6.Heard the learned counsel appearing for the petitioner as well as the
learned Government Advocate appearing for the respondents and perused the
entire materials on record.
7.From the materials on record, it is seen that by the impugned
proceedings dated 03.11.2021 in Na.Ka.No.3980/2021/r/g. the petitioner is
suspended from the post of President of society. As per Section 76-A of the
Act, the respondents have power to suspend the President or Vice President of
the society, if ingredients mentioned therein are satisfied. As per Section 76-A
of the Act, the Registrar has power to suspend the President or Vice President
of the society for six months if President or Vice President has committed
mismanagement or has committed misappropriation of amount or
mismanagement of the affairs of the society. Section 76-A of the Act reads as
follows:
“Tamil Nadu Co-operative Societies Act, 1983:
76. Suspension of a paid Officer or
servant of society.__ (1) Where
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W.P.No.24847 of 2021
(a) 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 is
brought to the notice of the Registrar that a paid
officer or servant of a registered society whether
or not he is borne on a common cadre of service
has committed or has been otherwise responsible
for misappropriation, breach of trust or other
offences in relation to any registered society and
if, in the opinion of the Registrar there is a
“prima facie” evidence against such paid officer
or servant and the suspension of such paid officer
or servant is necessary in the interest of any such
society.”
As per the above Section, if there is any prima facie case that President
or Vice President has misappropriated or mismanaged the affairs of the
society, they can be suspended in the interest of public. As per Section 76-A of
the Act, not only there must be prima facie case to show that President or Vice
President have committed the offence mentioned therein or mismanaged the
society, etc, in addition to that, the Registrar must be satisfied with based on
materials placed before him that suspension of President or Vice President is
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W.P.No.24847 of 2021
necessary in public interest or in the interest of society. In the present case, the
alleged misconduct against the petitioner is that society did not grant
agricultural loan to the members of society to the target fixed. In the order
reported in 2021 (6) CTC 349, cited supra, this Court held that each case has
to be considered based on the facts and circumstances of that case and has to
decide whether suspension is valid or not. Considering the facts and
circumstances of this case, this Court is of the considered view that impugned
order suspending the petitioner is erroneous and is not sustainable.
8.Further, it is an apprehension that petitioner may influence the
witness and tamper with the evidence. By mere apprehension, an elected
President cannot be suspended from service invoking Section 76-A of the Act,
unless there is prima facie evidence and Registrar is satisfied that suspension
is necessary in public interest or in the interest of the society. The reasons
given in the impugned order is not in compliance with Section 76-A of the Act
and therefore, the impugned order is liable to be set aside and it is hereby set
aside.
9.This Court granted interim stay of impugned order of suspension on
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W.P.No.24847 of 2021
12.01.2022 and no stay has been granted to proceed with Section 81 enquiry.
In the counter affidavit filed by the respondents dated 08.02.2022, the 2 nd
respondent has stated that enquiry will be completed within three months. It is
open to the respondents to proceed with the enquiry and complete the same.
10.With the above observations, the Writ Petition is allowed.
Consequently, the connected Miscellaneous Petition is closed. No costs.
28.04.2022
krk
Index : Yes / No
Internet : Yes / No
To
1.The Registrar of Co-operative Societies,
No 170, NV Natarajan Maaligai,
Periyar EVR High Road,
Poonamallee High Road,
Kilpauk,
Chennai – 600 010.
2.Joint Registrar of Co-operative Societies,
Thiruvarur Zone,
Thiruvarur.
https://www.mhc.tn.gov.in/judis
W.P.No.24847 of 2021
V.M.VELUMANI, J.
krk
W.P.No.24847 of 2021
28.04.2022
https://www.mhc.tn.gov.in/judis
