The court emphasized the validity of the criminal case and the applicability of the Cooperative Societies Act and IPC provisions, while also highlighting that delay in the criminal case cannot be raised as a ground at this juncture.

1. The petitioner is holding the rank of Sub-Registrar. At the relevant time, he was a Special Officer incharge of more than 13 Primary Agricultural Cooperative Bank as the Board of Director was superseded. In one such society where the petitioner was incharge as the Special Officer, namely Annur Primary Co-operative Bank, Annur, an enquiry was ordered by the Deputy Registrar of Cooperative Societies under Section 18 of the Tamil Nadu Cooperative Societies Act with reference to the functioning of the Society. After enquiry, it was found there was misappropriation of Rs.26,33,090/-. Based on the enquriy report, recommendation was made to launch criminal prosecution both against the Secretary as well as the petitioner who was the Special Officer. Accordingly, an FIR was registered under Section 477A and 408 IPC. After the completion of the investigation, a criminal case has been filed, pending before the Judicial Magistrate IV, Coimbatore in C.C.No.1 to 5/2006.

2. During the relevant time, the petitioner was placed under suspension by the impugned order dated 29.12.2006 and subsequently as he had reached the age of superannuation, an order was also passed on the same day to retain him in service in terms of Fundamental Rules 56(1)(C) since the age of superannuation fell on 31.12.2006. The petitioner has now come forward to challenge the order of suspension and the consequential order passed under Fundamental Rules 56(1)(C) challenging that the criminal case laid against him was not valid and the ingredients of Section 477A and 408 IPC is not attracted. If at all the person who is responsible for misappropriation was the Secretary and the Special Officer has no role to play. He had also stated that the incident that is referred to was of the year 1996 and at the time of filing of the case, more than 10 years have lapsed. A further contention was raised that for the offence under the Cooperative Societies Act, the provisions of IPC cannot be attracted as the Tamil Nadu Cooperative Societies Act is a special law falling under the State list and as it receive the assent of the president, any other law will be repugnant under Article 254 (2) of the Constitution.

3. The writ petition was admitted on 15.03.2007. Pending the writ petition, this Court declined to grant interim relief.

4. When the matter came up today, the learned Government Advocate produced written instructions issued by the Joint Registrar of Cooperative Societies, Coimbatore region. It is also brought to the notice of this Court that the petitioner filed a discharge petition before the Trial Court under Section 239 of Cr.P.C. The learned Judicial Magistrate IV, Coimbatore by his order dated 01.02.2011 dismissed the discharge application. This only proves that there is a prima facie case for framing charge against the petitioner. The contention that the Co-operative Societies Act is a special law and therefore, no prosecution can be launched cannot be accepted. In fact such contention raised in other writ petitions have been dismissed by this Court leaving open the parties to raise all the issues before the appropriate criminal court as and when prosecution is launched. Subsequently, the Tamil Nadu legislature has amended the Cooperative Societies Act and has introduced Section 164-A whereby, the Act is only in addition to other legislation and there is no bar in proceeding against the employees working in Cooperative Societies in terms of other criminal law.

5. The contention that there was a delay cannot be raised as a ground at this juncture. Because the suspension and the consequential retention in service is based upon the criminal case and unless the criminal case is disposed of one way or other, the petitioner cannot be heard to contend either there was a delay in taking action or that he has got prima facie case to succeed before criminal court.

6. The Supreme Court in Government of A.P. and others vs. V.Appala Swamy reported in 2007 AIR SCW 1639