2019 Supreme(AP) 167
IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI
D.V.S.S. SOMAYAJULU, J.
Jalligampala Venkata Satyamurthy and Others – Appellants
Versus
State of Andhra Pradesh and Others – Respondents
W.P. No. 12950 of 2019
Decided On : 17-10-2019
Advocate Appeared:
For the Appellant : Bharadwaj Associates.
Headnote:
A.P. Co-operative Societies Act, 1964 – Section 51 – Writ Petition is filed by petitioners seeking to issue writ of mandamus or any other appropriate writ declaring that action of 1st and 2nd respondents in obeying suggestion/remark of 5th respondent and directing conduct of enquiry which may preliminary or enquiry without compliance of ingredients of said provision of law and at instance of 5th respondent-MLA, without jurisdiction and mala fide and direct respondents 1 to 4 to forbear from conducting any enquiry at instance of 5th respondent into affairs of 6th and 7th respondent societies including enquiry and direct respondents 1 to 4 to forbear from conducting any enquiry pursuant to memo of 1st respondent into the affairs of 6th and 7th respondents and grant such other relief as it deems fit in circumstances of case –Held, Registrar did not exercised needed discretion and merely ordered enquiry does not, in the opinion of Court, appear to totally correct, there is point made by learned senior counsel three instances which specifically named by members of society in letter to MLA should form basis for enquiry, Court however not inclined to stop entire procedure, opinion of this Court, functional autonomy granted under Section 115-D of Act does not preclude enquiry of this nature the "autonomy" is limited to points (1) to (5) of Section 115-D(2) of Act, Autonomy merely gives greater freedom to credit societies but it cannot extend to immunity from action for any wrongs done, even when Section 115-C/D of Act introduced by amendment, applicability of other provisions of Act not ruled out –Writ Petition is disposed of. (Para 11, 12)
Facts of the case:
Writ Petition is filed by petitioners seeking to issue writ of mandamus or any other appropriate writ declaring that action of 1st and 2nd respondents in obeying suggestion/remark of 5th respondent and directing conduct of enquiry which may preliminary or enquiry without compliance of ingredients of said provision of law and at instance of 5th respondent-MLA, without jurisdiction and mala fide and direct respondents 1 to 4 to forbear from conducting any enquiry at instance of 5th respondent into affairs of 6th and 7th respondent societies including enquiry and direct respondents 1 to 4 to forbear from conducting any enquiry pursuant to memo of 1st respondent into the affairs of 6th and 7th respondents and grant such other relief as it deems fit in circumstances of case.
Findings of the court:
Registrar did not exercised needed discretion and merely ordered enquiry does not, in the opinion of Court, appear to totally correct, there is point made by learned senior counsel three instances which specifically named by members of society in letter to MLA should form basis for enquiry, Court however not inclined to stop entire procedure, opinion of this Court, functional autonomy granted under Section 115-D of Act does not preclude enquiry of this nature the "autonomy" is limited to points (1) to (5) of Section 115-D(2) of Act, Autonomy merely gives greater freedom to credit societies but it cannot extend to immunity from action for any wrongs done, even when Section 115-C/D of Act introduced by amendment, applicability of other provisions of Act not ruled out.
Result: Writ Petition is disposed of.
ORDER :
1. This Writ Petition is filed by the petitioners seeking the following relief:
"...to issue a Writ of mandamus or any other appropriate writ declaring that the action of the 1st and 2nd respondents in obeying the suggestion/remark of the 5th respondent and directing conduct of an enquiry which may be preliminary or enquiry under Section 51 of the A.P. Co-operative Societies Act, 1964, without compliance of the ingredients of the said provision of law and at the instance of the 5th respondent-MLA, is arbitrary, without jurisdiction and mala fide and direct the respondents 1 to 4 to forbear from conducting any enquiry at the instance of the 5th respondent into the affairs of the 6th and 7th respondent societies including enquiry under Section 51 of the Act and direct the respondents 1 to 4 to forbear from conducting any enquiry pursuant to the memo of the 1st respondent dated 16.07.2019 into the affairs of the 6th and 7th respondents and grant such other relief as it deems fit in the circumstances of the case."
2. This Court has heard Sri Vedula Venkata Ramana, learned senior counsel appearing for the petitioners and the learned Government Pleader for Co-operation appearing for the 1st to 4th respondents.
3. The essential action that is questioned in this case is the proposal of the 1st and 2nd respondents to conduct an enquiry into the affairs of the 6th and 7th respondents societies.
4. Learned Senior counsel appearing for the petitioners argued that the entire action that is initiated in this case proceeded on the basis of the letter addressed by the 5th respondent, who is the MLA, Prathipadu Assembly Constituency. The learned senior counsel for the petitioners submits that Memo has been issued on 16.07.2019 by the 1st respondent at the behest of the 5th respondent-MLA to conduct enquiry into the affairs of the 6th and 7th respondents societies. Learned senior counsel submits that the MLA does not have any right either legal or otherwise to initiate the action. Learned senior counsel submits that such action can only be initiated under Section 51 of the Andhra Pradesh Co-operative Societies Act, 1964 (in short "the Act"). As per Section 51 of the Act an enquiry can commence only the Registrar on his "own" motion or on the application of the Society or one third of the members of the Committee or on the request of one fifth of the total number of members of the society. He submits, therefore, Section 51 of the Act does not permit the initiation of enquiry whether it is preliminary or otherwise at the instance of a third party. He also submits that there are no valid or tenable grounds for initiating any enquiry. He points out that the letter addressed to the M.L.A. Itself does not contain any material even to enable the respondents to prima facie come to a conclusion that there are some irregularities, which need to be verified. He points out that the very letter of the MLA refers to Section 51 of the Act and that it is void under law. He points out that a virtual witch hunt has been carried out at the instance of the MLA and the respondents are not entitled to proceed with the enquiry by whatever name it is called. Learned senior counsel points out that a reading of the documents filed shows that a comprehensive enquiry was directed to be carried out and a report has to be submitted to the Government. In that view of the matter, it is submitted that the very initiation of the enquiry is wrong in law. Apart from that he also submits that Section 115-D of the Act clearly gives functional autonomy to Co-operative Credit Societies like respondents 6 and 7 and that an enquiry under Section 51 of the Act cannot be initiated into those matters as autonomy is granted to the said societies. He points out that the complaint that is allegedly given by the villagers on the basis of which the MLA-5th respondent acted talks of wrong entries in the loans obtained. He therefore submits that under Section 115-D (2) of the Act applies and