ORDER:

NYAPATHY VIJAY, J.

1. The present Writ Petition is filed questioning the action of Respondent No.2 in ordering enquiry under Section 51 of the Andhra Pradesh Co-operative Societies Act, 1964 (for short “the A.P.C.S. Act, 1964”) into the affairs of Respondent No.5-Society and appointing Respondent No.4 as an Enquiry Officer vide Proceedings in Rc.No.444/2022/DCO-E, dated 13.08.2024, as illegal and arbitrary.

2. The facts, in brief, are as follows;

The Petitioners have been working in A.P. Paper Mills, Rajamahendravaram and they are also members of Respondent No.5-Society. Respondent No.5-Society was established in the year 1968 and it is an un-aided society with about 700 members. It is stated that the aim and object of the society is to advance loans to the members, which will be reimbursed by the management of the A.P. Paper Mills after deducting the monthly instalments from the salaries of the members.

3. It is stated that the elections were conducted to Respondent No.5-Society in the year 2016 and one P. Rama Krishna, K.L.L. Raju and Petitioner No.3 were elected as President, Secretary and Vice-President respectively and they served as such for 2 1⁄2 years and thereafter Petitioner No.1 and Respondent No.2 were elected as President and Secretary respectively and they served for another period of 2 1⁄2 years.

4. It is stated that on 19.05.2021, the tenure of the elected managing committee of Respondent No.5-Society had completed and the Person-in-charge Committee was appointed, which was continued till 19.05.2024 and Respondent No.5-Society had collected deposits from the members of the society and had advanced loans to the needy members. The amounts so deposited by the members of the Society will be paid with interest after getting maturity of 3 years.

5. It is stated that A.P. Paper Mills had stopped recovering the EMIs from the employees, who had taken loans from the Society from the month of October, 2023. Respondent No.6, who was working as the Chief Executive Officer of Respondent No.5-Society failed to produce the records on being asked by the Person-in- charge Committee of Respondent No.5-Society and suspecting foul play, the Petitioners gave complaint to the Superintendent of Police, East Godavari District on 05.08.2024 to take action against Respondent No.6 to see that the Society books are received from Respondent No.6.

6. A similar representation was given to Respondent No.3 on 10.07.2024 to ensure that the complaint was filed before the concerned Police Station against Respondent No.6. It is stated that Respondent No.3 also addressed a letter on 09.07.2024 to the Person-in-charge Committee to file a police complaint against the concerned, who failed to hand over the records of the Society.

7. While so, Respondent No.2 initiated enquiry under Section 51 of the Act on the ground that one P. Suresh Kumar, retired employee of the A.P. Paper Mills and member of the Society filed a Petition before the District Collector, East Godavari making certain complaints. As the initiation of enquiry by Respondent No.2 is contrary to Section 51 of the A.P.C.S. Act, 1964, the same was questioned in this Writ Petition.

8. A detailed Counter-Affidavit was filed by Respondent No.3, wherein it is stated that Society is running on its own funds and had opted for Chartered Accountant Audit for the last 10 to 15 years approximately. It is stated that the elections were conducted on 20.11.2016 and on completion of their term, the then Deputy Registrar of Co-operative Societies, Rajamahendravaram had appointed the same persons/Directors as Non-Official Person-in- charge Committee under Section 32(7)(a)(i) of the A.P.C.S. Act, 1964, for a period of six (6) months, which was extended from time to time.

9. It is stated that the Society had stopped 80% of its business activity due to loss of accounts books, discontinuation of recovery of EMIs from the salaries by the management of A.P. Paper Mills, Rajahmundry and complaints were received by the