The President vs The Registrar Of Cooperative ...
2023 Latest Caselaw 6613 Mad

                                                                           W.P(MD)No.8820 of 2023


                       BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT

                                            DATED : 20.06.2023

                                                  CORAM

                             THE HONOURABLE MR.JUSTICE C.V.KARTHIKEYAN

                                         W.P(MD)No.8820 of 2023
                                                  and
                                        W.M.P.(MD)No.8057 of 2023


                The President,
                MM 334, Pudukkottai Electricity Distribution Circle
                      Employees Co-operative Thrift and Credit Society Limited,
                TNEB Campus,
                Near Old Bus-stand,
                Pudukkottai,
                Pudukkottaii District.                          ... Petitioner

                                                      Vs.

                1.The Registrar of Cooperative Societies,
                  No.170 NV Natarajan Maaligai,
                  Opposite to Ega Cinem Hall,
                  Poonamallee High Road,
                  Kilpauk, Chennai - 600 007.

                2.The Joint Registrar of Co-operative Societies,
                  Combined Multi Storage Building for Co-operatives,
                  Annavasal Road,
                  Pudukkottai.

                3.The Deputy Registrar of Co-operative Societies,
                  Combined Multi Storage Building for Co-operatives,
                  Annavasl Road,
                  Pudukkottai.                                    ... Respondents



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                                                                                W.P(MD)No.8820 of 2023


                PRAYER :-
                       Writ Petition filed under Article 226 of the Constitution of India, praying
                this Court to issue a Writ of Certiorari calling for the records relating to the
                impugned order of the 3rd respondent vide in his proceedings Na.Ka.192/2017
                Thittam II dated 09.03.2023 and quash the same.


                                  For Petitioner   : M/s.S.Karthikeyan
                                                     Advocate.

                                  For Respondents : Mr.S.Shanmugavel
                                                    Additional Government Pleader


                                                      ORDER

The Writ Petition has been filed in the nature of certiorarified mandamus

seeking interference with an order of the third respondent / Deputy Registrar of

Co-operative Society, Combined Multi Storage Buildings for Co-operative at

Annavasal Road in Pudukkottai, in proceedings No.Na.Ka.192/2017 Thittam II

dated 09.03.2023.

2. The writ petition has been filed by the President of Pudukkottai

Electricity Distribution Circle Employees Co-operative Thrift and Credit

Society Limited at Pudukottai District. The petitioner's society, borrows loan

from Thrift Co-operative Federation Limited, Chennai which is a multi state

Co-operative Society.

https://www.mhc.tn.gov.in/judis

W.P(MD)No.8820 of 2023

3. It is stated that a circular had been earlier issued on 16.10.2014 by the

first respondent that all Regional Joint Registrar are requested to instruct all

Employees Co-operative Thrift and Credit Societies under their control to

borrow funds only from the District Central Co-operative Banks and not from

Federation / other institutions. It had been stated that questioning this

particular circular, W.P.No.30807 of 2014 was filed and that was allowed on

12.12.2014. It has also been stated that on 09.08.2018, the third respondent had

issued an order that the petitioner should not get loan from Thrift Co-operative

Federation limited. The petitioner had filed W.P.(MD)No.21544 of 2018 and

that was allowed on 08.04.2019. It is stated that the Thrift Co-operative

Federation at Chennai, is not the Society registered under the provisions of the

Tamil Nadu Co-operative Societies Act, 1983. In view of those two orders,

passed by learned Single Judges of this Court, learned counsel for the petitioner

seeks interference with the circular issued dated 09.03.2023 in Na.Ka.No.

192/2017 by the third respondent.

4. A reading of the orders shows that it would only be to the advantage of

the petitioner that they do not obtain loan from the Thrift Co-operative

Federation Limited, Chennai, which even according to the petitioner, may not

https://www.mhc.tn.gov.in/judis

W.P(MD)No.8820 of 2023

be a registered Society. It would only be appropriate that the petitioner obtains

loan through the Regional Co-operative Societies.

5. The present notice proceeds on the basis that if such loan had been

obtained by the petitioner from the Thrift Co-operative Federation limited,

Chennai, then necessary enquiry under Section 81 of the Co-operative Societies

Act, 1983 would be initiated. Any proceedings under Section 81 of the said Act

is only a fact finding enquiry. It can be initiated by the Registrar on his own

motion or on the application of the Board of not less than 1/3 members or on

the request of a Financing Bank or of the District Collector who may direct any

person authorised to hold an enquiry into the working and financial condition

of a registered society. This enquiry would only be to the benefit of the

petitioner herein.

6. The fact that on two earlier occasions, learned Single Judges of this

Court had interfered with the notice of different purport wold not come to the

rescue of the petitioner herein. Let the petitioner submit his books of accounts

and let them be examined by the third respondent. Let the enquiry under

Section 81 of the Act, proceed.

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W.P(MD)No.8820 of 2023

7. As a matter of fact, the writ petition has been filed more out of

apprehension that an enquiry under Section 81 of the Act, would be conducted.

But there is no document produced that the respondent had initiated such

enquiry. But even if such a notice is issued, the duty is cast on the petitioner to

protect their own members and in the interest of the members of the petitioner

society to disclose details and be very transparent. This is all the more required

because, at some point, the petitioner's society will have to repay the loan.

8. I am of the firm opinion that the aforementioned two judgments relied

on by the learned counsel would not come to the rescue of the petitioner in the

instant case. If a notice is issued under Section 81 of the Tamil Nadu

Cooperative Societies Act, 1983, a duty is cast on the petitioner to participate in

such enquiry and produce the books of accounts and ensure that they confirm to

the guidelines of the respondents herein. In view of that particular fact, this

writ petition is dismissed. No costs. Consequently, connected miscellaneous

petition stands closed.

20.06.2023 NCC : Yes / No Index : Yes / No Internet : Yes / No

pnn

https://www.mhc.tn.gov.in/judis

W.P(MD)No.8820 of 2023

C.V.KARTHIKEYAN, J.

pnn

To

1.The Registrar of Cooperative Societies, No.170 NV Natarajan Maaligai, Opposite to Ega Cinem Hall, Poonamallee High Road, Kilpauk, Chennai - 600 007.

2.The Joint Registrar of Co-operative Societies, Combined Multi Storage Building for Co-operatives, Annavasal Road, Pudukkottai.

3.The Deputy Registrar of Co-operative Societies, Combined Multi Storage Building for Co-operatives, Annavasl Road, Pudukkottai.

ORDER IN WP(MD) No.8820 of 2023 and W.M.P.(MD)No.8057 of 2023

20.06.2023

https://www.mhc.tn.gov.in/judis