2017 Supreme(Mad) 584
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
V.M.VELUMANI, J.
M.Anbalagan – Petitioner
Vs.
Enquiry Officer, Office of the Co-op. Deputy Registrar, Musiri and others – Respondents
C.R.P.(MD)Nos.947 of 2016 and 948 of 2016 (PD)
Decided On : 06-04-2017
For the Petitioner: Mr. D. Selvam for Mr. G. Thalaimutharasu, Mr. Nirajan S.Kumar, for Mr. G. Thalaimutharasu
For the Respondent:Mr. B. Pugalendhi, Additional Advocate General, Assisted by Mr. G. Muthukannan, Government Advocate
Headnote:
Constitution of India - Article 227 – Civil Procedure Code - Tamil Nadu Co-operative Societies Act, 1983 -Section 87, 81, 167(2), 83, 80 - Surcharge proceedings - Financial irregularities and misappropriation - Petitioner was working as Sub-Registrar of Co-operative Societies. He was appointed as Special Officer in Primary Agricultural Co-operative Credit Society Limited - He was functioning as Field Officer in the said Society - Allegations were made that serious financial irregularities and misappropriation were committed during the period - One working in the said Society gave complaint to the President of the Society - Same was forwarded to the Registrar, who ordered enquiry under Section 81 of the Act. In the enquiry, it was found that the Secretary one and subsequent Secretary were found to have committed irregularities in respect of 112 items and misappropriated totally and another sum amount - Enquiry officer submitted report. In the said report, it was stated that the Secretaries – Held, various judgments relied on by the learned counsel for the petitioner as well as learned Additional Advocate General and facts and circumstances in which petitioner was placed, the allegation against petitioner in surcharge proceedings and impugned orders, I hold that the respondents have failed to allege and prove the wilful negligence on the part of petitioner - Second respondent has not alleged the wilful negligence in his proceedings that the petitioner has acted in a wilful negligent manner - Civil Revision Petitions are allowed
These Civil Revision Petitions have been filed by the petitioner against the judgment and decree, dated 07.04.2016, passed in C.M.A.(CS)Nos.12 and 13 of 2015 by the learned Principal District Judge, Trichirappalli.
2. Since the issues involved in both the Civil Revision Petitions and the parties are one and the same, they are heard together and disposed of by this common order.
3. The petitioner in both the cases is 9th respondent in surcharge proceedings initiated by the second respondent in Na.Ka.No.2460/2014 Sa.Pa., dated 29.05.2015 and Na.Ka.No.2462/2014 Sa. Pa., dated 27.05.2015, under Section 87 of the Tamil Nadu Co-operative Societies Act, 1983 [hereinafter referred to as 'the Act'] and appellant in C.M.A.(CS)Nos.12 and 13 of 2015 on the file of the Principal District Court, Tiruchirappalli.
4. The petitioner was working as Sub-Registrar of Co-operative Societies. He was appointed as Special Officer in R.963 Thulayanatham Primary Agricultural Co-operative Credit Society Limited, Thulayanatham Post, Musiri Taluk, Trichirappalli District, from 14.01.2010 to 20.05.2010 and from 14.10.2011 to 08.05.2013. He was functioning as Field Officer from 11.12.2009 to 30.11.2013 in the said Society. Allegations were made that serious financial irregularities and misappropriation were committed during the period from 01.04.2011 to 15.10.2013. One Vanathan working in the said Society gave complaint to the President of the Society. The same was forwarded to the Registrar, who ordered enquiry under Section 81 of the Act. In the enquiry, it was found that the Secretary one Pandian and subsequent Secretary S.Murugesan were found to have committed irregularities in respect of 112 items and misappropriated totally Rs.1,01,06,400/- and another sum of Rs.5,81,10,505/-. The enquiry officer submitted report on 02.05.2014. In the said report, it was stated that the Secretaries, viz., M.Pandian and S.Murugesan created bogus documents, as though the members, who have deposited monies in fixed deposits, availed loan and misappropriated the amounts. According to the report, K.V.Selvaraj, the Senior Clerk and K.Sivalingam, Clerk, N.Vanathan, Clerk, K.Pushpavalli, Sales-woman, M.Nalini, Computer Typist on daily wages, colluded together with the Secretaries and misappropriated such huge amounts. K.Mohan, President, the petitioner herein and K.Mathivanan, another Special Officer, did not properly verify the records and due to their negligence, the Secretaries and others, misappropriated the amounts. The Enquiry Officer recommended initiation of surcharge proceedings as per Section 87 of the Act. Based on the Enquiry Report, the second respondent was appointed as Surcharge Proceeding Officer. On 09.10.2014, the petitioner requested copies of documents and inspected the documents and received copies of enquiry report and statements of employees of Societies. The petitioner appeared before the Enquiry Officer on 20.01.2015 and 16.02.2015 in person and gave statement and received copies of documents. He submitted his explanation, dated 09.02.2015. Similarly, the respondents in the surcharge proceedings appeared before the second respondent and gave statements. The second respondent had examined the members, who have deposited the amounts in fixed deposit and who alleged to have availed loans based on the fixed deposit receipts. After enquiry, the second respondent passed an order holding that the Secretaries, viz., Pandian and Murugesan have committed irregularities and misappropriated funds and other employees, who were arrayed as respondents, colluded with them in the irregularities committed by the above two persons. The second respondent held that the petitioner was negligent in discharging his duties as he failed to verify the records of the Societies and thereby, due to his negligence, allowed the Secretaries to commit irregularities and caused loss to the Society. The second respondent passed orders dated 27.05.2015 and 29.05.2015 holding that all