Madras High Court
G.Subburathinam vs The Deputy Registrar Of Cooperative ... on 17 March, 2025
W.P.(MD).No.24599 of 2024
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED : 17.03.2025
CORAM:
THE HONOURABLE MR.JUSTICE VIVEK KUMAR SINGH
W.P.(MD)No.24599 of 2024
G.Subburathinam ... Petitioner
-vs-
1.The Deputy Registrar of Cooperative Societies,
Palani Circle, 11/223, Raja Nagar,
Lakshmipuram,
Palani, Dindigul District.
2.The President,
D.D.646, Kulathur Primary Agricultural,
Cooperative Credit Society Limited,
Kulathur,
Dindigul District - 05. ... Respondents
PRAYER: Petition filed under Article 226 of the Constitution of India, to
issue a Writ of Mandamus, directing the 1st respondent to receive the
surcharge amount of Rs.5,66,802/- from the petitioner by waiving the interest
portion of 18% or by modifying the interest portion in Tha.Va.No.16/2019
Sa.Pa dated 10.02.2020 and consequently direct the 1st respondent to raise the
attachment and drop further proceedings of sale pertaining to property in
S.F.No.298 with an extent of 1869 ¾ sq.ft in Plot No.12 situated at Seelapadi
Revenue Village, Dindigul Joint Sub - Registration, Dindigul District in
E.P.No.5/2020-21 on the file of the 1st respondent.
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W.P.(MD).No.24599 of 2024
For Petitioner : Mr.R.Satheesh
For Respondents : Mr.J.K.Jayaselan,
Government Advocate
ORDER
This writ petition has been filed seeking a direction to the 1 st
respondent to receive the surcharge amount of Rs.5,66,802/- from the
petitioner by waiving the interest portion of 18% or by modifying the interest
portion in Tha.Va.No.16/2019 Sa.Pa dated 10.02.2020 and also to direct the
1st respondent to raise the attachment and drop further proceedings of sale
pertaining to property in S.F.No.298 with an extent of 1869 ¾ sq.ft in Plot
No.12 situated at Seelapadi Revenue Village, Dindigul Joint Sub -
Registration, Dindigul District in E.P.No.5/2020-21 on the file of the 1st
respondent.
2. The petitioner is the former Secretary of the second respondent
society. Due to certain allegations, an enquiry was conducted against the
petitioner and others and surcharge proceedings was also initiated, for which
the petitioner has rendered her explanation. However, the first respondent,
passed an order dated 10.02.2020 demanding a sum of Rs.5,66,802/- with
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interest at the rate of 18% per annum. The petitioner preferred an appeal
before the Principal District Court cum Cooperative Tribunal in
CMA(CS)No.8/2020. In the meanwhile, the first respondent initiated the
execution proceedings in EP No.5/2020-21 to bring the property which has
already been attached for sale.
3. The learned counsel appearing for the petitioner submits that the
petitioner is now ready and willing to pay the said amount and also to drop
the further proceedings of the sale. However, he requested to waive the
interest alone and therefore, the petitioner made a representation to the
respondents on 05.10.2024. But the same has not been considered sofar.
Hence, this petition came to be filed.
4. The learned counsel appearing for the petitioner, by citing the
judgment of this Court in R.Srinivasan vs. The Special Tribunal for Co-
operative Cases, Madurai and Others reported in 1997 (2) MLJ 112, further
submits that charging interest at the rate of 18% per annum is not only
exorbitant but also arbitrary, which has also been followed by this Court in
WP(MD)No.23582 of 2022 dated 18.10.2022.
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5. The learned Government Advocate appearing for the respondents
submits that the petitioner may be permitted to pay the surcharge amount of
Rs.5,66,802/- with interest at the rate of 6% per annum as per the earlier
orders of this Court.
6. Heard the learned counsel on either side and perused the materials
placed before this Court.
7. In the judgment relied upon by the learned counsel appearing for the
petitioner in WP(MD)No.23582 of 2022 dated 18.10.2022, this Court has
fixed the interest at the rate of 6% per annum, which would be reasonable for
the surcharge amount payable by the petitioner and hence, in this case also,
the interest rate is fixed at 6%.
8. Considering the aforesaid submissions and also considering the
facts and circumstances of this case, this Court directs the petitioner to pay
the surcharge amount of Rs.5,66,802/- along with interest at the rate of 6%
per annum to the first respondent within a period of two months from the date
of receipt of a copy of this order and the first respondent, in turn shall receive
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the said amount and release the petitioner's property which has been attached
for sale. In case of failure on the part of the petitioner to pay the amount as
aforesaid, the authorities are at liberty to proceed further in accordance with
law.
9. With the above observations and directions, the Writ Petition stands
disposed of. There shall be no order as to costs.
17.03.2025
NCC : Yes/No
Index : Yes / No
sm
TO:-
1.The Deputy Registrar of Cooperative Societies,
Palani Circle, 11/223, Raja Nagar,
Lakshmipuram,
Palani, Dindigul District.
2.The President,
D.D.646, Kulathur Primary Agricultural,
Cooperative Credit Society Limited,
Kulathur,
Dindigul District - 05.
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VIVEK KUMAR SINGH, J.
sm
Order made in
Dated:
17.03.2025
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