Madras High Court
P.Malaiyappan vs The Deputy Registrar Of ... on 18 October, 2022
W.P(MD)No.23582 of 2022
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 18.10.2022
CORAM
THE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN
W.P(MD)No.23582 of 2022
P.Malaiyappan .. Petitioner
Vs
1.The Deputy Registrar of Co-operative Societies,
O/o.The Deputy Registrar of Co-operative Societies,
Palani,
Dindigul District.
2.A.303, Thennampatti Primary Agricultural
Co-operative Credit Society,
Rep. by its President,
Thennampatti,
Dindigul District. ..Respondents
Prayer: Writ Petition filed under Article 226 of the Constitution of India,
praying this Court to issue a Writ of Mandamus, directing the respondents to
receive Rs.5,00,000/- towards the liability of the petitioner in pursuance of the
surcharge award dated 19.11.2013 passed by the first respondent with interest at
the rate of 6% per annum and consequently direct the respondents to release the
attachment of immovable properties made in pursuance of the execution
petition vide CEP No.1/14-15, dated 17.08.2022.
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W.P(MD)No.23582 of 2022
For Petitioner :Mr.D.Shanmugaraja Sethupathi
For Respondents :Mr.M.Senthil Ayyanar
Government Advocate
ORDER
The petitioner has filed the Writ Petition seeking issuance of a Writ of
Mandamus, directing the respondents to receive Rs.5,00,000/- towards the
liability of the petitioner in pursuance of the surcharge award dated 19.11.2013
passed by the first respondent with interest at the rate of 6% per annum and
consequently direct the respondents to release the attachment of immovable
properties made in pursuance of the execution petition vide CEP No.1/14-15,
dated 17.08.2022.
2. The learned counsel appearing for the petitioner would submit that the
petitioner was working as Secretary in the second respondent society namely A.
303, Thennampatti Primary Agricultural Co-operative Credit Society and one
Varadhan had deposited a sum of Rs.5,00,000/- as fixed deposit on 31.08.2007.
Similarly, Mr.T.Krishnan also had deposited a sum of Rs.5,00,000/- as fixed
deposit on 29.09.2007 in the second respondent society. The petitioner when
he was working as Secretary, has committed financial irregularities in respect of
the above fixed deposits and he has not credited the above amount in the
account of the society and thereby misappropriated the fund. Departmental
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W.P(MD)No.23582 of 2022
enquiry was conducted. On the basis of the enquiry report under Section 81 of
the Tamil Nadu Co-operative Societies Act, surcharge proceedings under
Section 87 of the Tamil Nadu Co-operative Societies Act was initiated against
him. The first respondent has passed surcharge award dated 19.11.2013 as
against him and the Assistant Secretary Mr.S.Alagar Raja holding that both of
us are jointly liable to pay sum of Rs.10,00,000/- to the second respondent
society with interest at the rate of 18% from the date of alleged irregularities till
the realization. In addition to the above surcharge proceeding, the first
respondent has initiated yet another surcharge proceeding. The first respondent
has passed the award against him and others. The Co-operative
Tribunal/Principal District Court, Dindigul has set aside the above surcharge
award on the Civil Miscellaneous Appeal filed by him. However, the petitioner
has not challenged the surcharge award dated 19.11.2013 passed by the first
respondent. The first respondent has now initiated execution proceeding and
proposed to conduct auction sale in respect of various properties for executing
the award dated 19.11.2013.
3. The learned counsel appearing for the petitioner would submit that
without prejudice, he is ready and willing to pay a sum of Rs.5,00,000/- along
with interest at the rate of 6% per annum and the same was not considered by
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W.P(MD)No.23582 of 2022
the respondents and hence, the petitioner has filed the present writ petition
citing the judgment of this Court in R.Srinivasan-vs-The Special Tribunal for
Co-operative Cases, Madurai and others, reported in 1997(2) MLJ 112. In view
of the order passed by this Court charging interest at the rate of 18% per annum
is not only exorbitant but also arbitrary and prayed this Court to permit him to
pay their liability with 6% interest.
4. The learned Government Advocate appearing for the respondents
would submit that the petitioner cannot be permitted to pay a sum of Rs.
5,00,000/- and the same will not be accepted by the respondent if he is willing
to pay the entire liability then his case will be considered regarding reduction of
interest.
5. When the matter was taken up for hearing on 13.10.2022, this Court
directed the respondents to get proper calculation regarding interest at the rate
6% interest and 18% and what is the amount to be paid by the petitioner.
6. It is seen from the calculation that for a sum of Rs.5,00,000/- each if
18% interest is fixed the amount would be around Rs.26,04,712/- and if 6%
interest is fixed the amount would be around Rs.15,34,904/-.
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W.P(MD)No.23582 of 2022
7. The learned counsel for the petitioner would submit that the petitioner
is ready and willing to pay a sum of Rs.15,34,904/- as full quit in order to avoid
the further auction proceedings. In order to give quietus to the issue, the
respondents are accept the said offer.
8. Considering the above facts, this Court directs the petitioner to pay a
sum of Rs.15,34,904/- to the respondents on or before 10.12.2022 and on
receipt of the said amount, the respondents are directed to release the properties
of the petitioner which have been attached through the attachment proceedings
after making proper entry to the Register. Failure to pay the said amount, the
authorities are at liberty to proceed further.
9. With the above observations and direction, the writ petition stands
disposed of. No costs.
Index :Yes/No
Internet :Yes/No 18.10.2022
am
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W.P(MD)No.23582 of 2022
To
1.The Deputy Registrar of Co-operative Societies,
Palani,
Dindigul District.
2.A.303, Thennampatti Primary Agricultural
Co-operative Credit Society,
Rep. by its President,
Thennampatti,
Dindigul District.
https://www.mhc.tn.gov.in/judis
W.P(MD)No.23582 of 2022
V.BHAVANI SUBBAROYAN, J.
am
W.P(MD)No.23582 of 2022
18.10.2022
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