Telangana High Court
R.Ashok Kumar vs The State Of Telangana on 12 February, 2025
THE HONOURABLE SMT. JUSTICE T. MADHAVI DEVI
WRIT PETITION No.3736 of 2025
ORDER:
In this writ petition, the petitioner has prayed for the
following relief:
".....to issue a Writ or order or direction more particularly one
in nature of Writ of Mandamus to declare the proceedings of
the 3rd respondent by way of a Show Cause Notice, under
Section 60 of the Telangana Cooperative Societies Act, 1964 in
Rc.No.1245/2024-C, dt 28/01/2025 as illegal, arbitrary and
oppose to the law laid down in 2017 (2) ALT Page No.264 and
to set aside the same and to direct the 3rd respondent to act in
accordance with law and pass......"
2. Brief facts leading to filing of this writ petition are that
the petitioner was the President of respondent No.4-Society. On
complaint about certain irregularities, an enquiry was conducted
under Section 51 of the Telangana Cooperative Societies Act,
1964 (for short 'the Act') and thereafter, it was found that the
irregularities caused loss to the society to the tune of
Rs.8,80,58,873/-. Therefore, the enquiry report was placed
before the Managing Committee and the General Body and
thereafter, the action under Section 60 of the Act was
recommended. Consequently, show cause notice, dated
28.01.2025 was issued to the petitioner and others as to why the
action should not be initiated against the petitioner and others
for recovery of an amount of Rs.57,95,415/- from the petitioner.
Challenging the same, the present writ petition has been filed.
3. Learned Senior Counsel appearing for the petitioner
submitted that subsequent to the enquiry under Section 51 of
the Act, even if the actions were to be taken under Section 60 of
the Act, further enquiry has to be conducted and instead of doing
so, the respondents have issued notice, dated 28.01.2025
seeking to recover a sum of Rs. 57,95,415/- from the petitioner.
4. Learned Government Pleader for Cooperation as well as
learned counsel appearing for respondent No.5 are also heard.
5. Having gone through the material on record and
particularly the judgment of this Court in Dappalapudi
Purnachandra Rao v. Deputy Registrar of Co-op. Societies,
Vijayawada and others 1, this Court finds that Section 60 of the
Act, mandates that the Registrar himself, or any person
specifically authorized by him in his behalf, may inquire into the
conduct of such person or officer or servant and make an order
requiring him to repay or restore the money or any part thereof
with interest, where enquiry under Section 51 of the Act, finds
the persons to be guilty of breach of trust. The judgment relied
2016 SCC Online Hyd 459
upon by the learned counsel for the petitioner also holds that
independent enquiry has to be held and at para 15 of the said
order, the following observations are made:-
"15. The enquiry under Section 60 of the Act may visit the
delinquent with penal consequences and it necessarily requires
the observance of principles of natural justice. An element of
adjudicatory function is involved in coming to the conclusion and
it requires weighing of evidence and recording reasons for its
conclusions. The above survey of the case law leads to the
following conclusions:
(i) A notice should be given to the delinquent clearly
indicating the charges leveled against him and the
documents on which reliance is placed.
(ii) In case the presenting officer produces any oral evidence,
the delinquent should be given an opportunity to cross-
examine the said witness.
(iii) The delinquent shall be given an opportunity to produce
the oral and documentary evidence on his side.
(iv) The process of enquiry shall not be elevated to the level of
a judicial enquiry by applying the provisions of C.P.C. and
the Evidence Act, but should give a fair opportunity to both
sides.
(v) The ultimate order of the enquiry officer should contain
reasons for his conclusions and a copy, of the same shall
be communicated to the affected party".
6. In view of the above, this Court deems it fit and proper to
direct the respondents to treat the impugned notice, dated
28.01.2024 as show cause notice for initiating enquiry under
Section 60 of the Act and furnish the documents relied upon by
the respondents for coming to the conclusion about the liability
of the petitioner and thereafter proceed with the enquiry as
contemplated under Section 60 of the Act and also as observed
by this Court in case of Dappalapudi Purnachandra Rao
(1 Supra) and pass appropriate orders thereon.
7. With the above observations, this writ petition is
disposed of. No order as to costs.
Miscellaneous applications, if any, pending in this Writ
Petition, shall stand closed.
___________________________
JUSTICE T. MADHAVI DEVI
Date: 12.02.2025
pss
THE HONOURABLE SMT. JUSTICE T. MADHAVI DEVI
Date: 12.02.2025
pss
