Madras High Court
The Cooperative ... vs L. Rakesh on 19 June, 2025
Author: R.Subramanian
Bench: R. Subramanian
W.A.No.1753 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 19/6/2025
THE HONOURABLE MR JUSTICE R. SUBRAMANIAN
AND
THE HONOURABLE MR.JUSTICE K. SURENDER
Writ Appeal No.1753 of 2025
and
C.M.P.No.13391 of 2025
The Cooperative Sub-Registrar/Administrator
C 4712 Arni Cooperative Town Bank Ltd
Arani
Thiruvannamalai District 632 301. ... Appellant
Vs
1. L. Rakesh
2. The Joint Registrar of Cooperative Societies
Office of the Joint Registrar of Cooperative Societies
Thiruvannamalai Region
Thiruvannamalai
Thiruvannamalai District.
3. The Deputy Registrar of Cooperative Societies
Cheyyar Circle, Cheyyar
Thiruvannamalai District 604 407... Respondents
1/6
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W.A.No.1753 of 2025
For appellants ... Mr.C.Prakasam
For respondents ... Mrs.R. Hemalatha
for R.1
Mr.S.Ravi Kumar
Special Government Pleader
for R.R.2 and 3.
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JUDGMENT
(Judgment of the Court was made by the Hon'ble R.Subramanian J)
The appellant is aggrieved by the direction issued by the writ Court,
directing it to receive the principal amount along with interest due on the
agreement of pledge.
2. The first respondent had pledged certain jewels and borrowed
money from the appellant Society. When he sought for redeeming the
pledged jewels, the appellant Society wrote him on 12/3/2025 stating that
his father who was an employee of the Society had caused loss to the
Society to the tune of nearly Rs.2 crores and therefore, he would be allowed
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to redeem the jewels only on payment of the amount that is determined as
loss caused to the Society by the action of his father Mr.Lingappa. This
order was the subject matter of challenge in the writ petition. The writ
Court directed the Society to return the jewels on receipt of the principal
and interest due on the contract of pledge. Being aggrieved, the Society is
on appeal.
3. Mr.C.Prakasam, learned counsel for the appellant Society
would vehemently contend that the jewels belonged to the father and they
were pledged through the son and therefore, the son should not be allowed
to redeem the jewels without satisfying the liabilities of the father. It is also
stated that the surcharge proceedings under Section 87 of the Tamil Nadu
Co-operative Societies Act have been pleaded against the father.
4. We do not think we can countenance the submission of the learned
counsel for the appellant. Pledge or pawnee is a contract covered by the
provisions of the Indian Contract Act. Section 174 of the Indian Contract
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Act prohibits a pawnee from retaining the pledged goods for any other debt,
unless there is a contract of the contrary. No such contract is pleaded.
5. Mr.C.Prakasam would submit that under Section 167 of the
Tamil Nadu Co-operative Societies Act, it is open to the authorities to
direct attachment of the property. A reading of Section 167 of the Tamil
Nadu Cooperative Societies Act reveals that the attachment can be made
only at the instance of the Society for reasons to be recorded. It is not
shown before us nor any attempt has been made by the Society to make any
such claim as pleaded by the Society. Unless there is an order by the
Deputy Registrar or the Registrar of Cooperative Societies under Section
167 of the Tamil Nadu Cooperative Societies Act, the appellant Society
cannot escape from the consequences of Section 174 of the Indian Contract
Act. The learned Single Judge has rightly directed the appellant Society to
handover the pledged articles upon payment of the principal and interest due
under the contract of pledgee to the pledger. We therefore, see no merit in
the appeal and the Writ Appeal fails.
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6. In the result, the Writ Appeal is dismissed. Two weeks time is
granted to the appellant to comply with the order of the writ Court. No
costs. Consequently, the connected Miscellaneous Petition is closed.
(R.SUBRAMANIAN, J) (K.SURENDER, J)
19th June, 2025
mvs.
To
1. Dr.Mohammed Osman Pasha
S/o. Khasim Sahib, Residing at Islamiah college
(Autonomous) New Town, Vaniyambadi, Vellore
District
2. N Mohammed Faiyaz Ahmed
S/o N.Mohammed Noorullah
3. Dr N Nadeem Afroze
S/o H.Nisar Ahmed
4. P Yasser Arafath
Vellore Region, Vellore.
5. The Secretary and Correspondent
Islamiah College (Autonomous), New Town, Vaniyambadi, Vellore District
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R.SUBRAMANIAN,J
AND
K.SURENDER, J
mvs.
WA NO. 1753 OF 2025
19/6/2025
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