IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.SARAVANAN, J.
P.Ravi - Appellant
Versus
The Presiding Officer, Special Tribunal for Co-Op Cases) (Chief Judge Court of Small Causes) Chennai and Ors - Respondent
W.P.No.34119 of 2017 and WMP.No.37874 of 2017
Decided On : 27-05-2021
Tamil Nadu Co-operative Societies Act, 1983 - Section 153 and 87 - Disciplinary proceedings - Surcharge notice - Dismissal from service - Impugned order - Challenged - Whether impugned order passed by first respondent Tribunal upholding order passed by second respondent dismissing appeal filed by petitioner is sustainable or not - Petitioner as an Accountant with third respondent Co- operative Society had allegedly diverted about 1658 gas cylinders during the period between February 2009 October 2009 by engaging private staffs and thereby allegedly caused a loss of amount to third respondent and was therefore subjected to a disciplinary proceedings - Held, From a reading of Section 87 of Act, 1983 it is evident that it is compensatory in nature and is intended to recover, amounts from delinquent person who had caused for loss to Co-operative Society - There was no pecuniary loss caused to third respondent Society, amount paid by petitioner shall be refunded back to petitioner together with interest. Observations made in this order regarding dismissal of petitioner from service of third respondent Society shall not be binding on second respondent - While passing order under Section 87 of Act, 1983, second respondent shall clearly specify how there was a pecuniary loss caused to third respondent Co-operative Society on account of supply of cylinders to unregistered customers if indeed the petitioner had remitted amounts collected from such sale to credit of third respondent - Writ petition disposed
ORDER :
1. The petitioner has challenged the impugned order dated 6.7.2017 in C.M.A.No.15 of 2014 passed by the Special Tribunal For Co-operatives Societies Cases, the first respondent herein.
2. By the impugned order dated 6.7.2017 in C.M.A.No.15 of 2014, the said Tribunal has dismissed the appeal filed by the petitioner against the order dated 28.8.2014 passed by the second respondent pursuant to surcharge notice dated 29.11.2013.
3. The petitioner as an Accountant with the third respondent Co- operative Society had allegedly diverted about 1658 gas cylinders during the period between February 2009 October 2009 by engaging private staffs and thereby allegedly caused a loss of Rs.11,86,324.25 to the third respondent and was therefore subjected to a disciplinary proceedings.
4. The petitioner was issued with the charge memo dated 19.11.2012. During the course of investigation an enquiry report dated 9.4.2012 was generated which appears to have formed the basis of surcharge proceedings which is the subject matter of the present writ petition.
5. During the interregnum, an order dated 30.5.2015 was passed by the Disciplinary Authority. The Disciplinary Authority concluded that the petitioner had caused the loss to the third respondent Co-operative Society. The petitioner was therefore discharged from service by the said order dated 30.5.2015. The petitioner appears to have filed a revision petition before the Additional Registrar of Societies under Section 153 of the Tamil Nadu Co-operative Societies Act, 1983. The status of the said proceeding is not known.
6. Meanwhile, surcharge proceedings under Section 81 of the Tamil Nadu Co-operative Societies Act, 1983 which was initiated against the petitioner for the loss caused to the third respondent Co-operative Society was proceeded with.
7. It commenced with a notice dated 29.11.2013 issued to the petitioner based on the enquiry report dated 9.4.2012. The petitioner replied to the same vide a reply dated 10.01.2014 and requested for a copy of the said report. Thereafter, a summon was issued to the petitioner on 13.01.2014. The petitioner was asked to appear on 23.01.2014 before the second respondent.
8. The second respondent thereafter heard and by an order dated 28.8.2014 held that the petitioner had caused a total loss of Rs.11,676,314.90 to the third respondent Co-operative Society and since the petitioner had already paid a sum of Rs.4,12,108.08, the petitioner called upon to pay the balance amount of Rs.7,55,206.82.
9. Aggrieved by the aforesaid order dated 28.8.2014 of the second respondent, the petitioner herein filed an appeal before the first respondent Tribunal, under Section 152 (1) of the Tamil Nadu Cooperative Societies Act, 1983. The first respondent Tribunal has dismissed the said appeal filed by the petitioner vide impugned order dated 6.7.2017.
10. The impugned order of the first respondent Tribunal is sought to be assailed by the petitioner primarily on the ground that there has been manifest violation of natural justice inasmuch as such proceeding initiated by the third respondent was based on an enquiry conducted on 9.4.2012, and a copy of the report has not been furnished to the petitioner.
11. It is therefore submitted that the impugned order upholding the levy of surcharge on the petitioner was liable to be quashed.
12. It is further submitted that there were two other staff viz., delivery boys who were also involved in the alleged irregular supply of gas cylinders to the unregistered customers during the aforesaid period, and therefore the petitioner at best is liable only for the proportionate loss allegedly suffered by the third respondent Co-operative Society and the balance was to be recovered from them.
13. It is submitted that vide memo dated 6.5.2010, the third respondent had also called upon the petitioner to pay a sum of Rs.4,12,108.08 which was duly complied by the petitioner on 01.07.2010 when the petitioner paid an amount of Rs.2,00,000/- and on 25.5.2011 wh
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.