Telangana High Court

Sri Goli Rajeshwar Rao vs The Deputy Registrar Of Cooperative ... on 4 November, 2025

     THE HONOURABLE SMT. JUSTICE T. MADHAVI DEVI


                WRIT PETITION NO.33253 OF 2023

                                    AND

                WRIT PETITION NO.31480 OF 2024


                          COMMON ORDER

W.P.No.33253 of 2023 has been filed seeking a Writ of Certiorari

declaring the order of the Cooperative Tribunal at Warangal

dt.03.11.2023 in C.T.A.No.6 of 2021 upholding the proceedings of

respondent No.1, i.e., the Deputy Registrar of Cooperative

Societies/District Cooperative Officer, Warangal Urban District in

Rc.No.1353/2017-C dt.04.02.2021, as illegal and arbitrary and to

consequently set aside the same and to pass such other order or orders.

2. W.P.No.31480 of 2024 has been filed seeking a Writ of

Mandamus declaring the proceedings in E.P.No.596/2020-21 and

E.P.No.598/2020-21 in Form-7 of attachment of immovable property

issued by the Joint Registrar/District Cooperative Officer, i.e.,

respondent No.1 without having any jurisdiction and without

mentioning the proceedings of award and also the demand notice in W.P.Nos.33253 of 2023&31480 of 2024

Form-6 dt.30.09.2024 issued by respondent No.1 without considering

the objection filed by the petitioner on 03.10.2024 under Rule

52(21)(a)(b)(c) of Telangana Cooperative Societies Rules and without

any delegation of powers under G.O.Ms.No.1, Agriculture and

Cooperative (Coop-II) Department dt.10.01.2024, as illegal and

arbitrary.

3. The petitioners in both these Writ Petitions are one and the same

and brief facts leading to the filing of both these Writ Petitions are as

under.

4. The petitioner rendered service as the President of respondent

No.8 cooperative society from 05.02.2013 to 04.02.2018 and according

to the petitioner, a significant progress has been made in garnering of

net profits during the said period. Subsequently, during the process of

re-organisation of districts, Elkathurthy Mandal was taken away from

Karimnagar District and was added to Warangal Urban District and

since then, respondent No.1 had control and regulatory powers over the

society. However, the affiliation of the society did not undergo any

change and the Karimnagar District Cooperative Central Bank Limited,

Karimnagar continued to be the financing bank of the society. There was W.P.Nos.33253 of 2023&31480 of 2024

a physical verification of stocks of the society as on 30.09.2017 and

certain irregularities and deficit in stocks of the society were noticed.

Therefore, a special report was submitted in the matter. Thereafter, a

preliminary enquiry was ordered to probe into the affairs of the society

by appointing Sri V.Vijaya Bhaskar Reddy, Assistant Registrar/Audit,

Office of the District Cooperative Officer, Warangal Urban as enquiry

officer who conducted a preliminary enquiry and submitted his report

recommending an enquiry under Section 51 of the Telangana

Cooperative Societies Act, 1964 (for short, 'the Act'). Based on the said

report, an enquiry was ordered under Section 51 of the Act duly

authorising E. Venkateshwarlu, Assistant Registrar/Field, Kazipet

Circle, Office of the District Cooperative Officer, Warangal Urban to

conduct an enquiry into the affairs of respondent No.8 society. The

enquiry under Section 51 of the Act was conducted and a report

dt.04.06.2018 was submitted holding the petitioner herein and others as

responsible for misappropriation of funds of the society to a total sum of

Rs.2,51,55,550.14 and the petitioner individually was held to be

responsible for a sum of Rs.9,18,500/-. Thereafter, a surcharge notice

under Section 60(1) of the Act was issued and surcharge orders have

been passed vide separate proceedings dt.04.02.2021 holding the W.P.Nos.33253 of 2023&31480 of 2024

petitioner responsible for a sum of Rs.7,54,500/- and recovery of the

said amount was ordered along with interest at 15% p.a. from the date of

the misappropriation to the date of realisation and to restore the same to

the funds of the society. Further, the petitioner and the CEO K.Vinay

Kumar were jointly held responsible for a sum of Rs.1,45,56,850.51

along with interest. Challenging the same, the petitioner filed

C.T.A.No.6 of 2021 before the Telangana Cooperative Tribunal at

Warangal under Section 76(1) of the Act. The Tribunal, however,

dismissed the appeal and against the same, W.P.No.33253 of 2023 has

been filed.

5. Subsequently, a demand notice in Form-6 in E.P.No.596/ 2020-21

for recovery of Rs.7,54,500/- and another demand notice in Form-6 in

E.P.No.598/2020-21 for recovery of Rs.1,45,56,850.51 with further

interest and other charges, both dt.30.09.2024, have been issued, to

which the petitioner submitted his objections on 03.10.2024. Thereafter,

Form-7 dt.21.10.2024 in E.P.No.596/2020-21 has been issued to the

petitioner for recovery of Rs.7,54,500/- and another Form-7

dt.21.10.2024 in E.P.No.598/2020-21 has been issued in respect of the

petitioner herein and also in respect of one Sri K.Vinay Kumar, S/o W.P.Nos.33253 of 2023&31480 of 2024

Kommidi Prabhakar Reddy, i.e., the CEO of the society, for recovery of

Rs.1,45,56,850.51. Challenging the above, W.P.No.31480 of 2024 has

been filed.

6. At the time of admission of W.P.No.31480 of 2024, this Court,

vide orders dt.18.11.2024, has recorded the preliminary objection of the

petitioner to the enquiry conducted under Section 51 of the Act as well

as to the surcharge proceedings of respondent No.1 that respondent No.1

has no authority to initiate enquiry under Section 51 of the Act either

under G.O.Ms.No.10, Agriculture and Cooperation (Coop.II)

Department, dt.30.01.2017 or under G.O.Ms.No.1, Agriculture &

Cooperation (Coop.II) Department, dt.10.01.2024. According to the

learned counsel for the petitioner, the consequential surcharge

proceedings as well as issuance of Form-6 dt.30.09.2024 and issuance of

Form-7 dt.21.10.2024 are liable to be set aside. This Court therefore was

pleased to grant stay of all further proceedings pursuant to the notices in

Form-6 dt.30.09.2024 and Form-7 dt.21.10.2024 for a period of two

weeks and thereafter, the interim order was extended from time to time

till the matters have been heard.

7. The respondents have filed their counter affidavits.

W.P.Nos.33253 of 2023&31480 of 2024

8. The first and foremost objection of the writ petitioner is that vide

G.O.Ms.No.10 dt.30.01.2017 in respect of the District Cooperative

Central Banks, all powers of the Registrar under the Act, except those

under Sections 4(2), 17, 18, 32(7), 34, 50, 64(1), 77, 86, 115,116, 116-A

and 116-C and the powers of the Registrar under Rules 4, 12, 28, 29,

34(14), 39, 41, 45, 59 and 68 of the Rules made under the Act, are

delegated to the District Collector; and in case of primary agricultural

cooperative societies, the powers of the Registrar under Sub-section (1)

of Section 116-C of the Act are delegated to the Deputy Registrar of

Cooperative Societies/Special Cadre Deputy Registrars/Joint Registrar

working as District Cooperative Officers. Therefore, according to the

petitioner, the society being a primary agricultural cooperative society,

the power of enquiry under Section 51 of the Act has not been delegated

and therefore, it could have been ordered only by the Registrar and not

by the Joint Registrar as was done in this case.

9. Learned counsel for the petitioner submitted that in response to

Form-6 issued by the respondents, the petitioner has submitted his

objections raising this very ground, but the respondents have not

considered the same and have issued Form-7 as well. It is submitted that W.P.Nos.33253 of 2023&31480 of 2024

since there was a typographical mistake in G.O.Ms.No.10 dt.30.01.2017

in the delegation of powers, the respondents have issued G.O.Ms.No.1

dt.10.01.2024. Therefore, at the relevant point of time, when the enquiry

under Section 51 of the Act was ordered, the authority did not have the

power to do so and therefore, it is liable to be set aside.

10. Learned Government Pleader for Cooperation, on the other hand,

submitted that originally, vide G.O.Ms.No.34, Food and Agriculture

(Coop.IV) Department, dt.18.01.1989, the powers were delegated to the

Joint Registrar, however, vide G.O.Ms.No.10 dt.30.01.2017, there

occurred a typographical mistake and only the powers of the Registrar

under Section 116-C of the Act were conferred on the Deputy Registrar

of Cooperative Societies. It is submitted that since there was some

ambiguity as to whether the delegation of powers was in respect of the

primary agricultural cooperative societies as well, to remove the

ambiguity, G.O.Ms.No.1 dt.10.01.2024 has been issued and this was

also necessitated due to the orders of this Court in W.P.No.4010 of 2024

dt.11.06.2024. It is further submitted that the petitioner has also

participated in the enquiry under Section 51 of the Act and has not taken

any objection at the relevant point of time and therefore, he is estopped W.P.Nos.33253 of 2023&31480 of 2024

from taking such an objection at this stage. Therefore, she submitted that

the impugned proceedings should not be set aside.

11. Having regard to the rival contentions and the material on record,

this Court finds that G.O.Ms.No.10 dt.30.01.2017 was with regard to the

delegation of powers to the departmental authorities in view of the

reorganisation of new districts and Serial No.2 of the notification

mentions the powers of the Registrars conferred on the Deputy Registrar

of Cooperative Societies/Special Cadre Deputy Registrars/Joint

Registrars working as District Cooperative Officers in respect of (i)

District Cooperative Central Banks and District Cooperative Marketing

Societies, (ii) Other District Level Societies and Societies whose area of

operation extends to more than one district, (iii) Primary Agricultural

Cooperative Societies, (iv) Urban Banks regulated under the Banking

Regulation Act. In Column No.3 of the said notification, the powers

delegated in respect of the District Cooperative Central Banks and

District Cooperative Marketing Societies and also other District Level

Societies are specifically mentioned and against the primary agricultural

cooperative societies, it was mentioned that only the powers of the

Registrar under Sub-section (1) of Section 116-C of the Act subject to W.P.Nos.33253 of 2023&31480 of 2024

guidelines issued by the Registrar of Cooperative Societies are

delegated.

12. In view thereof, this Court in W.P.No.4010 of 2024 has

considered that G.O.Ms.No.10 dt.30.01.2017 did not delegate the power

of the Registrar under Sections 51 and 60 of the Act to the Joint

Registrar and the learned Government Pleader for Cooperation had filed

a counter affidavit and it was also recorded that the Government Pleader

for Cooperation filed a counter affidavit submitting that there is a

typographical error in the G.O. and that the powers are not delegated to

the Cooperative Department officials in connection with the primary

agricultural cooperative societies. It is noticed that soon after noticing

the error, the Government has issued G.O.Ms.No.1 dt.10.01.2024

conferring powers on the Deputy Registrar of Cooperative Societies for

conducting enquiry under Section 51 of the Act into the affairs of the

primary agricultural cooperative societies as well.

13. This Court finds that in this case, when the enquiry under Section

51 of the Act was ordered by the Deputy Registrar of Cooperative

Societies, the powers for the same were not delegated to him by the

Registrar under G.O.Ms.No.10 dt.30.01.2017. Consequently, the W.P.Nos.33253 of 2023&31480 of 2024

enquiry under Section 51 of the Act as well as the surcharge proceedings

thereunder are liable to be set aside with liberty to the respondents to

initiate proceedings under Section 51 of the Act afresh in accordance

with law.

14. In view thereof, this Court also is of the considered opinion that

the impugned enquiry under Section 51 of the Act and the consequential

surcharge proceedings thereunder are not sustainable. Therefore, they

are both set aside with liberty to the respondents to conduct an enquiry

into the affairs of the primary agricultural cooperative societies as per

the provisions of the Act afresh.

15. Learned Standing Counsel for respondent No.8 society has relied

upon the following judgments.

(i) High Court of Judicature at Bombay through its Registrar Vs. Shashikant S. Patil and another 1.

(ii) Behari Prasad and others Vs. State of Bihar2.

(iii) Airports Authority of India Vs. Pradip Kumar Banerjee3.

(2000) 1 SCC 416

(1996) 2 SCC 317

2025 LawSuit(SC) 159 : (2025) 4 SCC 111 : 2025 AIR(SC) 1052 W.P.Nos.33253 of 2023&31480 of 2024

The said decisions are not applicable to this case. They are on merits of

the case and are not applicable to the jurisdictional point raised by the

petitioner which is being considered in this case.

16. Accordingly, W.P.No.33253 of 2023 is allowed with liberty to the

respondents to conduct enquiry under Section 51 of the Telangana

Cooperative Societies Act, 1964 afresh. No order as to costs.

17. In view of the orders in W.P.No.33253 of 2023, the consequential

impugned orders in W.P.No.31480 of 2024 are set aside. Accordingly,

W.P.No.31480 of 2024 is allowed. No order as to costs.

18. In the result,--

(i) W.P.No.33253 of 2023 is allowed with liberty to the respondents to conduct enquiry under Section 51 of the Telangana Cooperative Societies Act, 1964 afresh. No order as to costs.