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2004 Supreme(Mad) 82
High Court of Judicature at Madras
THE HONOURABLE MR. JUSTICE F.M.IBRAHIM KALIFULLA
V.S.Ramasubramaniam - Appellant
Versus
The State of Tamil Nadu & Others - Respondents
W.P.NOS.20028 OF 200115079 & 46713 OF 2002, 19046, 19111, 19334, 21974, 22828, 23504, 24257, 24894, 25156, 25206, 25258, 26029, 26347, 26348, 26349, 26350, 26968....... 34537 OF 2003
Decided On : 30 January 2004
Headnote:
The judgment deals with a series of Writ Petitions filed by various individuals and entities related to the Madurai Urban Co-operative Bank Limited (MUCB). The petitioners challenged the proceedings initiated by the Registrar of Co-operative Societies, the Registrar's orders, and the registration of a First Information Report (FIR) against them. The court analyzed the relevant provisions of the Tamil Nadu Co-operative Societies Act (the Act) and discussed issues such as mismanagement of the bank, alleged corrupt practices, and the legality of the inquiries and actions taken by the authorities.
Fact of the Case:
The petitioners, including the Ex-President, Ex-Director, Ex-Secretary, Ex-Vice President, and Ex-Employees of MUCB, challenged various proceedings initiated by the Registrar of Co-operative Societies, including inquiries, show-cause notices, and the registration of an FIR against them. The petitioners alleged mismanagement, corrupt practices, and irregularities in the functioning of the bank.
Finding of the Court:
The court dismissed most of the Writ Petitions, holding that the Registrar of Co-operative Societies had the authority to initiate inquiries, inspections, and investigations under the relevant provisions of the Act. The court found that the petitioners failed to demonstrate that the proceedings were initiated without a proper basis or that they were conducted in an unfair or illegal manner. However, the court allowed two Writ Petitions related to show-cause notices issued under Section 36 of the Act, holding that the notices could not be allowed to operate at the present juncture and that the proceedings were set aside. The court also dismissed the challenge to the registration of the FIR, finding that the allegations against the petitioners were sufficient to justify the initiation of criminal proceedings.
Issues: 1. Legality of inquiries and actions taken by the Registrar of Co-operative Societies under the Tamil Nadu Co-operative Societies Act. 2. Mismanagement and alleged corrupt practices in the functioning of the Madurai Urban Co-operative Bank Limited. 3. Validity of show-cause notices issued under Section 36 of the Act. 4. Legality of the registration of a First Information Report (FIR) against the petitioners.
Ratio Decidendi: 1. The court held that the Registrar of Co-operative Societies had the authority to initiate inquiries, inspections, and investigations under Sections 81 to 83 of the Act, and that such inquiries were necessary to ensure that the funds of the society were not mismanaged or misappropriated. 2. The court found that the petitioners failed to demonstrate that the proceedings were initiated without a proper basis or that they were conducted in an unfair or illegal manner. 3. The court held that the show-cause notices issued under Section 36 of the Act could not be allowed to operate at the present juncture because the proceedings had not yet been completed and the petitioners had not been found guilty of any corrupt practices. 4. The court found that the allegations against the petitioners in the FIR were sufficient to justify the initiation of criminal proceedings, and that the FIR could not be quashed at the present stage.
Final Decision: The court dismissed most of the Writ Petitions, allowed two Writ Petitions related to show-cause notices issued under Section 36 of the Act, and dismissed the challenge to the registration of the FIR.
COMMON ORDER
All the above Writ Petitions are related to Madurai Urban Co-operative Bank Limited (hereinafter called ‘the Bank’) and as such they were clubbed together and disposed of by this Common Order.
2. Writ Petition Nos.20028 of 2001, 15079 of 2002, 19046 of 2003, 28262 of 2003, 25156 of 2003 and 21974 of 2003 have been filed by one Thiru V.S.Ramasubramaniam, who was the Ex.President of the above said bank (hereinafter referred to as ‘the Ex.President’).
3. Writ Petition Nos.22828 of 2003 and 24257 of 2003 have been filed by one Thiru P.Raju, who was the Ex.Director of the bank (hereinafter referred to as ‘the Ex.Director’).
4. Writ Petition Nos.23504, 26029 and 25206 of 2003 have been filed by one Thiru Mayan, who was the Secretary of the Bank (hereinafter referred to as ‘the Ex.Secretary’). He is now under suspension pending disciplinary action.
5. Writ Petition No.24894 of 2003 has been filed by one Thiru R.Venkatasamy, who was the Ex.Vice President of the Bank, (hereinafter referred to as ‘the Ex.Vice President’).
6. Writ Petition Nos.26347, 26348, 26349, 26350, 25258 and 26968 of 2003 have been filed by M/s.Perumal, A.Anbarasan, P.Rathinam, N.Abu Becker Siddique, N.Karnan and M.Sakthivel respectively, who were the Employees of the Bank (hereinafter referred to as ‘the Ex.Employees’).
7. Writ Petition Nos.19111 of 2003, 19334 of 2003 and 46713 of 2002 have been filed by M/s.C.Papa, Nagarajan, M.Veeraiah and Chithra respectively (who have borrowed funds from the Bank), for the issuance of a Writ of Mandamus, to direct the Registrar of Co-operative Societies to probe into the irregularities and fraudulent act of the petitioner in W.P.Nos.23504 of 2003, namely, Thiru M.Mayan who was the then Secretary of the Bank.
8. The Ex.President has filed W.P.No.20028 of 2001 challenging the proceedings dated 8-10-2001, by which an enquiry has been ordered under Section 81 of the Tamil Nadu Co-operative Societies Act (hereinafter referred to as ‘the Act’) as to the affairs relating to mismanagement of the bank and the said enquiry has been directed to be held by one Thiru Alagiriswamy, Registrar of Co-operative Societies in the Office of the Registrar. W.P.No.15079 of 2002 has been filed by the Ex.President for the issuance of a Writ of Certiorari, challenging the proceedings of the Registrar dated 15-4-2002, in and by which, a discreet enquiry was directed to be made by his sub-ordinates with reference to the advancement of loans to a tune of Rs.2 lakhs and above from 1-12-1996 onwards by the Bank and to submit a report.
9. Writ Petition Nos.19046 and 22828 of 2003 have been filed by the Ex.President as well as the Ex.Director, challenging the proceedings of the Joint Registrar of Co-operative Societies, Madurai Region dated 27-5-2003, in and by which, the Ex.President and Ex.Director were called upon to show cause by virtue of the provisions contained in Section 36 of the Act for the purpose of permanent disqualification.
10. Writ Petition No.28262 of 2003 has been filed by the Ex.President, challenging the proceedings of the Additional Registrar of Co-operative Societies, Chennai, dated 29-7-2003 ordering an inspection under Section 82 of the Act.
11.Writ Petition Nos.W.P.Nos.24257, 24894, 25156, 25206,25258,26347,26348,26349, 26350, and 26968 of 2003 have been filed by the Ex.President, Ex.Director, Ex.Secretary, Ex.Vice President and the the Ex.Employees of the Bank, challenging the F.I.R. in Cr.No.9 of 2003 dated 22-8-2003 on the file of the Inspector of Police, CCIW-CID, Madurai.
12. Writ Petition No.21974 of 2003 has been filed by the Ex.President, challenging the Enquiry Reports of the Officers who were directed to hold such an enquiry by the Registrar in his proceedings dated 15-4-2002 and who have filed their report dated 31-10-2002.
13. Writ Petition No.23504 of 2003 has been filed by the Ex.Secretary, challenging the charge sheet cum show cause notice issued to him in respect of certain alleged misconduct committed by
