Madras High Court
P.Balaji (President) vs The Deputy Registrar Of ... on 1 February, 2023
C.R.P.No.2499 of 2016
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 01.02.2023
CORAM
THE HON'BLE MR. JUSTICE G.K.ILANTHIRAIYAN
C.R.P.No.2499 of 2016
and C.M.P.No.12916 of 2016
P.Balaji (President) .. Petitioner
Vs.
1. The Deputy Registrar of Cooperative Society,
Omalur, Salem District,
(now at Sangagiri, Salem District)
2. The Secretary,
A.P.Melmurugham Primary Agriculture Cooperative Bank Limited,
No.8322, JKP Road,
Edapadi, Salem District.
3. P.Sundaram
Director,
A.P.Melmurugham Primary Agriculture Cooperative Bank Limited,
No.8322, JKP Road,
Edapadi, Salem District.
4. A.Tamaraikannan
Vice President,
A.P.Melmurugham Primary Agriculture Cooperative Bank Limited,
No.8322, JKP Road,
Edapadi, Salem District.
5. P.Anbu
Director,
Jalakandapuram Road, K.Pudur,
Edapadi Post, Salem District.
https://www.mhc.tn.gov.in/judis
Page 1 of 8
C.R.P.No.2499 of 2016
6. A.Susheela,
Director,
Poolampatti Road,
Edapadi Post, Salem District.
7. S.K.Veluchamy,
Director,
A.K.Street, Edapadi Post, Salem District.
8. S.Vellaiyan
Director,
Podinayagam Patti Post,
Edapadi Tk, Salem District.
9. K.Ramalingam,
Director,
Arundhathiyar Street,
K.Pudur, Edapadi Post, Salem District.
10. P.P.Sundaram,
A.P.Melmurugham Primary Agriculture Cooperative Bank Limited,
No.8322, JKP Road,
Edapadi, Salem District.
11. Ramalingam
A.P.Melmurugham Primary Agriculture Cooperative Bank Limited,
No.8322, JKP Road,
Edapadi, Salem District. .. Respondents
Prayer:- Civil Revision Petition filed under Article 227 of Constitution of
India to set aside the order of the Deputy Registrar for Co-operative Society,
Omalur, Salem District passed in Na.Ka.No.2668 of 1999, Sa.Pa. dated
02.03.2000 as confirmed by the Judgment and decree dated 29.04.2014 made in
C.M.A.No.8 of 2000 on the file of the Principal District Judge, Salem and all
consequent proceedings thereto.
https://www.mhc.tn.gov.in/judis
Page 2 of 8
C.R.P.No.2499 of 2016
For Petitioner : Mr.K.Govi Ganesan
For R1, R3 and R4 : Mr.C.Sathish, Government Advocate
For R2 : Mr.R.Balakrishnan
for Mr.S.V.Durai Solaimalai
For R5 to R7, R10 : No appearance
Notice served
For R9 and R11 : Dismissed vide Court order dated 02.08.2018
ORDER
This Civil Revision Petition has been filed as against the order of the
Deputy Registrar for Co-operative Society, Omalur, Salem District passed in
Na.Ka.No.2668 of 1999 Sa.Pa, dated 02.03.2000 as confirmed by the Judgment
and decree dated 29.04.2014 made in C.M.A.No.8 of 2000 on the file of the
Principal District Judge, Salem, thereby dismissing the appeal and confirming
the surcharge proceedings ordered by the first respondent herein.
2. The petitioner was a member of A.P.Melmurugham Primary
Agriculture Cooperative Bank Limited, Salem district. The society was formed
with an intention to extend financial support by giving loans more specifically
to farmers of Avaniperur, Keelmugham, Chinnamanali and Edapadi Revenue
villages. The petitioner was originally elected as a President in the year 1991
and then subsequently, in the year 1995 and he was continued as President in
https://www.mhc.tn.gov.in/judis
C.R.P.No.2499 of 2016
the year 2000. During his tenure, he had performed his duties as President.
There was a complaint and as such an inspection was conducted as
contemplated under Section 82 of the Tamil Nadu Co-operative Societies Act,
1983, in respect of the allegation that he paid excess amount of Rs.2,36,352/-
and there was loss to the tune of Rs.39,170/- by irregular appointments. That
apart, without getting prior permission, sustained expenditure to the tune of
Rs.29,365/- and had shown expenditure to the tune of Rs.16,896/- and in
respect of procuring purchase of books from the private press to the tune of
Rs.1,64,310/- for which the expenditure to the tune of Rs.10,150/-, to the tune
of Rs.96,090/- from the jewel appraisers and a sum of Rs.91,859/- towards
purchase of materials in total to the tune of Rs.7,14,193.60/- loss to the society.
On the said complaint, inspection was conducted and issued notice on
15.10.1999. The enquiry was conducted and as per the enquiry report, the
surcharge proceedings was initiated as contemplated under Section 87 of the
Tamil Nadu Co-operative Societies Act, 1983, as against the delinquents. The
first respondent concluded that only because of the petitioner, there was loss to
the society to the tune of Rs.7,14,193.60/- and directed the petitioner to pay the
said amount with interest at the rate of 18%.
https://www.mhc.tn.gov.in/judis
C.R.P.No.2499 of 2016
3. A perusal of records revealed that already the society was running
with loss and furtherance to the said loss, the petitioner committed illegalities
and thereby caused further loss to the society to the tune of Rs.7,14,193.60/-.
He made irregular appointments to the society and also without getting any
prior permission, he had spent huge amount as expenses. A perusal of voucher
and bills reveals that he had purchased books to the society from the private
press and also had spent more than the amount which was permitted and caused
huge loss to the society.
4. Therefore, the first appellate Court had rightly confirmed the order of
surcharge proceedings. However, the learned counsel for the petitioner would
submit that the first respondent imposed interest at the rate of 18% and the
same may be reduced.
5. Considering the above facts and circumstances of the case, this Court
finds no infirmity or illegality in the order passed by the Court below except the
rate of interest. Accordingly, the order of surcharge proceedings is hereby
confirmed and modified the interest to the rate of 16%.
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C.R.P.No.2499 of 2016
6. With the above modification, this Civil Revision Petition is dismissed.
Consequently, connected Miscellaneous petition is closed. No costs.
01.02.2023
Speaking/Non-speaking order
Index : Yes/No
Internet : Yes/No
mn
https://www.mhc.tn.gov.in/judis
C.R.P.No.2499 of 2016
To
1. The Principal District Judge, Salem.
2. The Deputy Registrar of Cooperative Society,
Omalur, Salem District,
(now at Sangagiri, Salem District).
3. The Secretary,
A.P.Melmurugham Primary Agriculture Cooperative Bank Limited,
No.8322, JKP Road,
Edapadi, Salem District.
4. P.Sundaram
Director,
A.P.Melmurugham Primary Agriculture Cooperative Bank Limited,
No.8322, JKP Road,
Edapadi, Salem District.
5. A.Tamaraikannan
Vice President,
A.P.Melmurugham Primary Agriculture Cooperative Bank Limited,
No.8322, JKP Road,
Edapadi, Salem District.
https://www.mhc.tn.gov.in/judis
C.R.P.No.2499 of 2016
G.K.ILANTHIRAIYAN,J.
mn
C.R.P.No.2499 of 2016
and C.M.P.No.12916 of 2016
01.02.2023
https://www.mhc.tn.gov.in/judis
