Citation : 2024 Latest Caselaw 19870 Mad
Judgement Date : 22 October, 2024
C.R.P.No.2118 of 2023
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated: 22.10.2024
Coram:
THE HONOURABLE MS.JUSTICE R.N.MANJULA
C.R.P.No.2118 of 2023 &
C.M.P.No.12899 of 2023
G.Sekar
Secretary (Now under Suspension)
R.1429, T.Palur Panchayat Union Employees and
Teachers Co.op. Thrift and Credit
Society, T.Palur, Udayarpalayam Taluk, Ariyalur District
now at Kovilnathanpettai, T.Palur Post,
Udayarpalayam Talk ...Petitioner
Vs
1. The Deputy Registrar of Co-op. Societies
Ariyalur Circle, Collectorate,
Ariyalur
2. The President
R.1429, T.Palur Panchayat Union Employees
and Teachers Coop Thrift and
Credit Society, T.Palur Post
Udayarpalayam Taluk,
Ariyalur District ...Respondents
PRAYER: Civil Revision Petition filed under Article 227 of Constitution of India to
set aside the Decree and Judgment passed in Co-operative C.M.A.No.1 of 2019
dated 01.03.2023 on the file of the Co-operative Tribunal / Principal District and
Sessions Judge, Ariyalur whereby confirmed the order passed by the 1 st
respondent in his proceedings Na.Ka.1409/2009/Sa.Pa dated 24.12.2018.
Page 1 / 7
https://www.mhc.tn.gov.in/judis
C.R.P.No.2118 of 2023
For Petitioner : Mr.C.Prakasam
For Respondents : Mr.B.Tamilnidhi
ORDER
This Petition has been filed challenging the order of dismissal made by the
learned Principal District Judge, Ariyalur / Cooperative Appellate Tribunal dated
01.03.2023 made in C.M.A.No.1 of 2019.
2. The petitioner, who was working as secretary with the 2nd respondent /
co-operative society has been given with the charge that he has misappropriated
the funds of the society by falsifcation of account in respect of the loans
sanctioned to the members, who availed the loans.
3. The learned counsel for the petitioner submitted that for the very same
charges, Section 81 enquiry has been initiated and on the basis of the Section
81 enquiry, 87 surcharge proceedings also has been issued to the petitioner for
the loss caused to the society. The petitioner has also been charged with the
criminal case and on the conclusion of the criminal trial, the petitioner was found
not guilty and he has been acquitted. The disciplinary action initiated against the
petitioner has been ended in dismissal and that has also been challenged by the
petitioner in preferring Writ Petition and the same is also pending.
https://www.mhc.tn.gov.in/judis
4. Now, the point on which the Revision Petition has been filed before this
Court is that the learned Judge of the Appellate Tribunal has overlooked the fact
that there is no loss caused to the society and the loan amount sanctioned and
shown in the records have been recovered from the members, who had got the
loans. The learned counsel for the petitioner submitted that the above fact was
placed before the appellate Tribunal, but the same has not been considered.
5. The learned counsel for the respondent submitted that no such
submission has been made before the Tribunal and now, the petitioner has come
up with the new point stating that there is no loss caused to the society and the
borrowers, who have availed the loan have repaid the same.
6. It is seen from the written argument submitted by the petitioner before
the court below that he has stated that all the 23 persons have repaid the loan in
installments. In fact, the above submission has not been considered by the
appellate tribunal. There is no finding as to whether the amount alleged to have
been misappropriated by the petitioner has been actually disbursed to borrowers
and they have paid the loan amount.
https://www.mhc.tn.gov.in/judis
7. The other submission made by the learned counsel for the petitioner is
that he has not been given the copy of the Section 81 enquiry report. However,
the appellate tribunal has recorded the finding that the copies of the documents
required by the petitioner has been given and it is the petitioner, who did not
co-operate for the Section 87 enquiry proceedings and he has even refused to
affix his signature for the statement. The further contention of the petitioner is
that one Baskaran, who was working as a clerck was incharge for disbursing the
loans, hence no liability can be fixed on the petitioner.
8. The person by name, Baskaran, who was working as a clerck can at the
best, process the papers, but he is not the authority to sanction the loan without
the approval of the Secretary. The order of the Appellate Tribunal would also
show that the petitioner refused to participate in the enquiry proceedings despite
repeated notices have been sent to him and sometimes notices have been
affixed on his door. The order of the appellate authority is exhaustive and
appreciative the loss caused to each and every head of the items under which the
allegations of misappropriation has been made. Even though the learned
counsel for the petitioner submitted that all the loans have been repaid, it is not
known whether any such repayment of loans have been made by the concerned
persons, who said to have borrowed the loans and whether the repayment has
https://www.mhc.tn.gov.in/judis
been made subsequent or prior to the surcharge proceedings. Only on this
limited aspect alone, the matter should be remitted back to the file of the learned
Principal District Judge, Co-operative Societies in order to find out whether the
questionable loans have been repaid by its borrowers and that there is no loss
caused to the society.
9. In the result, the Civil Revision Petition is disposed and the order passed
in C.M.A. No.1 of 2019 dated 01.03.2023 on the file of the Cooperative Tribunal /
Principal District and Sessions Judge, Ariyalur is set aside and the matter is
remitted back to the file of Cooperative Tribunal / Principal District and Sessions
Judge, Ariyalur to decide only on the limited aspect as to whether surcharge
amount has been repaid by the borrowerers, who have availed questionable
loans, after giving opportunity to both sides submission and render a finding and
pass a fresh order within a period of four weeks from the date of receipt of copy
of this order. Consequently, connected miscellaneous petition is closed. No
costs.
21.10.2024
Index : Yes / No;
Internet : Yes / No
Speaking Order / Non Speaking Order
https://www.mhc.tn.gov.in/judis
To
1. The Deputy Registrar of Co-op. Societies
Ariyalur Circle, Collectorate,
Ariyalur
2. The President
R.1429, T.Palur Panchayat Union Employees
and Teachers Coop Thrift and
Credit Society, T.Palur Post
Udayarpalayam Taluk,
Ariyalur District
https://www.mhc.tn.gov.in/judis
R.N.MANJULA, J.
ssd
C.R.P.No.2118 of 2019 &
21.10.2024
https://www.mhc.tn.gov.in/judis
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