Madras High Court
The Park Town Co-Operative ... vs M.Alagusundaram on 6 February, 2023
C.R.P.No.1936 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 06.02.2023
CORAM
THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM
C.R.P.No.1936 of 2022
The Park Town Co-operative Wholesale Stores Ltd.
Rep. by its Managing Director
G-133, 1st Main Road,
Anna Nagar (East)
Chennai – 600 102. ... Petitioner
Vs.
1.M.Alagusundaram
2.The Deputy Registrar of Co-operative
Societies (Non-Credit)
Kuralagam,
Chennai – 600 108. ... Respondents
Prayer: Civil Revision Petition is filed under Article 227 of the Constitution of
India, to set aside the impugned judgment and decree in C.M.A.No.54 of 2016
dated 17.08.2017 passed by the Presiding Officer / Chief Judge, Special
Tribunal for Co-operative Cases, Small Causes Court at Chennai.
For Petitioner : Mr.G.Thangavel
For R1 : Mr.P.Anbarasan
For R2 : Mr.V.Jeevagiridharan
Additional Government Pleader
Page 1 of 7
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C.R.P.No.1936 of 2022
ORDER
The civil revision petition is filed to set aside the order passed in
C.M.A.No.54 of 2016 dated 17.08.2017.
2. The revision petitioner is a Co-operative Society, which is registered
under the Tamil Nadu Cooperatives Societies Act, 1983. A Statutory enquiry
under Section 81 of the Tamil Nadu Cooperative Societies Act was ordered by
the competent authority, to conduct an enquiry into the affairs of the
Cooperative Society. In such circumstances, the final report in a Statutory
enquiry under Section 81 of the Act shall be the basis for initiation of threefold
actions by the competent authorities.
3. Disciplinary proceedings against the employees may be initiated for
the misconduct, lapses, irregularities, illegalities, etc. Criminal Case can be
filed before the Commercial Crime Investigating Wing of the Police
Department for prosecution of the offenders and surcharge proceedings can be
initiated under Section 87 of the Tamil Nadu Cooperative Societies Act to
recover the financial loss occurred on account of such irregularities and
illegalities. All the threefold actions can be initiated simultaneously against all
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C.R.P.No.1936 of 2022
the person or persons, who all are involved in such irregularities or illegalities.
One action is not a bar for the other action and all the threefold actions are the
scope of the proceedings, which are distinct and different. Thus, the authorities
competent are empowered to initiate all the three actions simultaneously.
4. In the present case, surcharge proceedings are initiated under Section
87 of the Act. Notice was issued under Section 87 (1) of the Act. An enquiry
was conducted by the competent authority namely Deputy Register of the
Cooperative Society, who in turn, passed final orders under Section 87 of the
Act on 08.01.2016.
5. Challenging the said final order passed under Section 87 of the Tamil
Nadu Cooperative Societies Act, an Appeal lies before the Special Tribunal for
Cooperatives Cases constituted under Section 152 of the Act, which was
preferred by the contesting respondents herein.
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C.R.P.No.1936 of 2022
6. Unfortunately, the Appeal under Section 152 of the Act was filed
without impleading the revision petitioner Cooperative Society as a party.
Non-impleadment of the Cooperative Society in the Appeal before the
Cooperative Tribunal is vital and it vitiates the entire proceeding, since they
are the necessary party to the Appeal, more so, the financial irregularities and
illegalities occurred in the revision petitioner / Cooperative Society.
7. When the revision petitioner / Cooperative Society is an aggrieved
person and the surcharge proceedings are initiated to recover the loss occurred
in the petitioner / Cooperative Society, there cannot be an Appeal without
impleading the aggrieved Cooperative Society in favour of whom the surcharge
proceedings are initiated under Section 87 of the Act. It goes to the route of the
matter. The Society is not a formal party they are the necessary party and more
so, aggrieved person in the eye of law. That being the factum, the Cooperative
Tribunal also failed to notice this, which will hit the principles of Audi Alteram
Partem and passed an order against which the present revision petition is filed.
8. This Court is not inclined to go into the merits of the case at this point
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C.R.P.No.1936 of 2022
of time, since the order passed by the Cooperative Tribunal is a nullity and
considered as a invalid order in the eye of law, in view of the fact that the
aggrieved person / necessary party i.e., the revision petitioner herein has not
been afforded with an opportunity, as they are not impleaded in the Appeal
Proceedings.
9. In view of the facts and circumstances, the order dated 17.08.2017
passed in C.M.ANo.54 of 2016 is set aside and consequently, the petitioner /
Society is at liberty to institute further proceedings for the purpose of execution
of the surcharge proceedings passed under Section 87 of the Act.
10. With this liberty, the Civil Revision Petition stands allowed. No
costs.
06.02.2023
(2/3)
Jeni
Index : Yes
Speaking order
Neutral Citation : Yes
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C.R.P.No.1936 of 2022
To
1.The Chief Judge/ Presiding Officer,
Special Tribunal for Cooperative Cases,
Small Causes Court,
Chennai.
2.The Deputy Registrar of Co-operative
Societies (Non-Credit)
Kuralagam,
Chennai – 600 108.
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C.R.P.No.1936 of 2022
S.M.SUBRAMANIAM, J.
Jeni
C.R.P.No.1936 of 2022
06.02.2023
(2/3)
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