Wilful negligence is a prerequisite for surcharge proceedings under Section 87 of the Tamil Nadu Co-operative Societies Act, 1983. An actionable wrong with a deliberate and reprehensible attitude is necessary to hold an officer liable for surcharge.

1. These writ petitions arise from the orders passed by the Co-operative Tribunal under Section 152 of the Tamil Nadu Co-operative Societies Act, 1983 (for brevity, "the Act") confirming the orders of the Deputy Registrar of Co-operative Societies (Housing) passed in the surcharge proceedings initiated under Section 87 of the Act.

2.1. The petitioner in W.P.Nos.47776 and 50020 of 2006 and 7764 of 2007, who is one and the same, was in additional charge as Co-operative Sub Registrar/Special Officer of the Tittakudi Taluk Co-operative Housing Society between 4.10.1995 and 14.7.1996, and from 1.11.1996 to 17.4.1997. Between 15.7.1996 and 31.10.1996, M.Jayaraman (petitioner in W.P.No.49118 of 2006) was in additional charge of the Tittakudi Taluk Co-operative Housing Society as Special Officer.

2.2. The Tittakudi Taluk Co-operative Housing Society was constituted for purchasing lands, forming house sites and selling the plots to its members. Insofar as W.P.No.47776 of 2006 is concerned, according to the petitioner therein, as the said Housing Society was inactive, as per the direction of the Deputy Registrar of Co-operative Societies (Housing), Cuddalore, he has identified 95200 Sq. Ft. of gramanatham lands in Perangiam Village belonging to one R.Krishnasamy Padayachi and as per the advice of the second respondent, he proceeded to negotiate with the owner for purchase and the price was fixed at ` 17.50 per Sq.Ft.

2.3. It is stated that since the Tittakudi Taluk Co-operative Housing Society was not having sufficient funds, the second respondent has advised the petitioner (AR.Shanmugamurthy) to borrow money from the Tamil Nadu Electricity Board Employees Co-operative Building Society, Swami Sagachananda Co-operative House Sites Society, Gingee Co-operative Housing Society, Tindivanam Co-operative House Building Society, Vanur Taluk Co-operative Housing Society, and Padaleeswarar Co-operative Building Society on interest basis. Based on the advise, it is stated that he has placed the matter before the general body of the Tittakudi Taluk Co-operative Housing Society, which has passed an unanimous resolution to purchase lands from R.Krishnasamy Padayachi and form layout, authorizing him to get permission from the Registrar of Co-operative Societies (Housing), Chennai.

2.4. In W.P.No.47776 of 2006, the petitioner has sent a letter to the Registrar of Co-operative Societies (Housing), Chennai on 1.12.1995 through the second respondent seeking permission, which was accorded on 4.1.1996 with various conditions, namely:

(i) that the general fund of the society should not be utilised for the purchase of land;

(ii) that the vendor should get permission from Director, Urban Development to form house sites;

(iii) that the guideline value and the market value should be furnished;

(iv) that the engineer's certificate should be obtained; and

(v) that the legal opinion with regard to the marketable title of the land should be obtained from the local Government Pleader.

2.5. It is stated that in W.P.No.47776 of 2006, the petitioner has obtained loan from Tindivanam Co-operative Building Society and the said society has paid the vendor directly a sum of Rs.4 Lakhs as advance and an agreement was entered into with the vendor. The time for completing the contract was one year. It is stated that in W.P.No.47776 of 2006, the petitioner himself has entered into a contract, as there will be delay in getting permission from the Registrar and by that time the price will be increased. According to him, there was no material loss to the society because of the contract of sale and it was conducted in the best interest of the Tittakudi Taluk Co-operative Housing Society and the conditions imposed by the Registrar of Co-operative Societies (Housing), Chennai were strictly adhered to.

2.6. It is stated that, in the meantime, R.Krishnasamy Padayachi died and therefore, the consent had to be obtained from his legal heirs and funds had to be mobilized for payme