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G.Sekar vs The Deputy Registrar Of Co-Op. ...
2024 Latest Caselaw 19870 Mad

Citation : 2024 Latest Caselaw 19870 Mad
Judgement Date : 22 October, 2024

Madras High Court

G.Sekar vs The Deputy Registrar Of Co-Op. ... on 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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