Madras High Court
The Dharmapuri Co-Operative Town Bank ... vs A.Durairaj on 29 October, 2025
Author: S.M.Subramaniam
Bench: S.M.Subramaniam, Mohammed Shaffiq
W.A. No.1027 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 29.10.2025
CORAM
THE HONOURABLE MR. JUSTICE S.M.SUBRAMANIAM
AND
THE HONOURABLE MR. JUSTICE MOHAMMED SHAFFIQ
W.A. No.1027 of 2025
and
C.M.P. No.8345 of 2025
The Dharmapuri Co-operative Town Bank Ltd.,
63A, Duraisamy Naidu Street,
Dharmapuri District. ... Appellant
Vs.
1.A.Durairaj
2.The Inspector General of Registration,
100, Santhome High Road,
Raja Annamalaipuram,
Chennai – 600 028.
3.The Principal Commissioner of Income Tax,
Office of the Commissioner of Income Tax,
No.3, Gandhi Road, Salem District.
4.Tax Recovery Officer – I,
Income Tax Department,
Room No.207, 2nd Floor, Annex Building,
63, Race Course Road,
Coimbatore – 641 018.
5.The District Registrar,
Dharmapuri.
Page 1 of 6
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W.A. No.1027 of 2025
6.The Sub Registrar,
Dharmapuri Joint II,
Dharmapuri.
7.The Deputy Registrar of
Co-operative Societies,
Dharmapuri. ... Respondents
Writ Appeal filed under Clause 15 of Letters Patent against the order
dated 06.12.2024 made in W.P. No.36093 of 2024.
For Appellant : Mr.P.S.Sivashanmugasundaram
For Respondents : Mr.V.P.Raman
for Mr.Sharath Chandran for R1
Mr.P.Harish,
Government Advocate
for R2, R5 and R6
Dr.B.Ramaswamy,
Senior Standing Counsel for R3 & R4
Ms.M.Geetha Thamaraiselvan,
Special Government Pleader (Co-op.)
for R7
JUDGMENT
(Judgment of the Court was delivered by S.M.SUBRAMANIAM, J.)
Writ order dated 06.12.2024 passed in W.P. No.36093 of 2024 is sought
to be assailed in the present intra-court appeal.
2. Seventh respondent in the writ petition viz., Dharmapuri Co-operative
Town Bank Limited registered under the provisions of the Tamil Nadu
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Cooperative Societies Act, 1983 (hereinafter referred to as the Act) is the
appellant in the present writ appeal.
3. Learned counsel for the appellant would mainly contend that the
appellant was not heard by the writ Court. Based on the surcharge order
issued under Section 87 of the Act, an appeal was preferred under Section
152 of the Act before the Principal District Judge/Co-operative Tribunal,
Dharmapuri and the surcharge order came to be affirmed by the Tribunal. Said
order passed under Section 152 of the Act is to be construed as a Civil Court
decree and executable. Writ petition filed challenging the order of the Tribunal
had been withdrawn and therefore the decree under Section 152 of the Act
became final. Thus, appellant is entitled to file an execution petition to realise
the surcharge amount pursuant to the order passed under Section 87 of the
Act.
4. Learned counsel appearing on behalf of the first respondent would
submit that subsequent to the surcharge order passed under Section 87 of the
Act, Income Tax Department attached the subject property and sold the same.
Therefore, writ Court is right in issuing a direction to delete the entries
regarding attachment made by the appellant co-operative Bank.
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5. Judgment and decree passed under the provisions of Co-operative
Societies Act is to be treated as a civil court decree for all purposes. In the
event of filing any execution petition, any person having claim over the subject
property may submit an application to put forth his/her claim. However, in the
present case, Income Tax Department had already sold subject property and
that being the factum, these issues are to be adjudicated on merits and in
accordance with law. Since the writ Court has decided the issues at the
admission stage without affording opportunity to appellant cooperative bank to
put forth their case, this Court is inclined to remit the matter back to the writ
Court for fresh adjudication of issues after affording opportunity to all the
parties.
6. In view of the above, writ order dated 06.12.2024 made in W.P.
No.36093 of 2024 is set aside and the matter is remanded back to the writ
Court for fresh adjudication. Consequently, writ appeal stands allowed.
Connected miscellaneous petition stands closed. There shall be no order as to
costs.
[S.M.S, J.] [M.S.Q, J.]
29.10.2025
Index:Yes/No
Neutral Citation:Yes/No
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mmi
To
1.The Inspector General of Registration,
100, Santhome High Road,
Raja Annamalaipuram,
Chennai – 600 028.
2.The Principal Commissioner of Income Tax,
Office of the Commissioner of Income Tax,
No.3, Gandhi Road, Salem District.
3.The Tax Recovery Officer – I,
Income Tax Department,
Room No.207, 2nd Floor, Annex Building,
63, Race Course Road,
Coimbatore – 641 018.
4.The District Registrar,
Dharmapuri.
5.The Sub Registrar,
Dharmapuri Joint II,
Dharmapuri.
6.The Deputy Registrar of
Co-operative Societies,
Dharmapuri.
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S.M.SUBRAMANIAM, J.
AND
MOHAMMED SHAFFIQ, J.
mmi
29.10.2025
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