SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2021 Supreme(Mad) 2460

BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
S. ANANTHI, J.
The President, M.D.Spl.121, Pasukkaranpatty Primary, Agricultural Cooperative Credit Society Limited - Petitioner
Versus
S. Chinnasamy & Another - Respondents
C.R.P.(MD) No. 1267 of 2021 & C.M.P.(MD) Nos. 7280 & 8237 of 2021
Decided On : 22-11-2021

Advocates Appeared:
For the Petitioner: R.R. Kannan.
For the Respondents: V.R. Venkatesan.

Headnote:

Constitution of India, 1950 - Article 227 - Tamil Nadu Co-operative Societies Act - Sections 81, 87 and 152(1) - Bank - Surcharge - Tamil Nadu Agriculture Debt Waiver and Debt Relief Scheme - Fake loaners - Whether proceedings under Section 87 is barred by limitation - 1st respondent/ Appellant/petitioner worked as Secretary in Co-operative bank, said bank is running since 08.05.1970 - Allegation against 1st respondent herein /appellant/petitioner is that, during his tenure, some discrepancies were found in availing eligible agriculture loan proposal for Tamil Nadu Agriculture Debt Waiver and Debt Relief Scheme as on 31.03.2006 and in granting loans to fake loaners by furnishing address of members of bank and also fictitious persons by using fake address and thereby caused loss to bank to tune of Rs.30,32,283 - Held, Present charge is for preparing Tamil Nadu Agricultural Debt waiver and debt relief scheme as on 31.03.2006 was rushed by 1st respondent and loans were granted to fake loaners by furnishing address of members of bank and swindled money - Within 4 1/2 year from date of act or omission, action was initiated against the 1st respondent and was completed within 5 months from date of show cause notice. So, the surcharge order is not barred by limitation - Another objection is Revision petitioner is not a party to surcharge proceedings - So, he cannot file revision - But, because of misappropriation by the 1st respondent herein, Appellant Society is an affected party - So, revision petitioner can very well file Revision - Civil Revision Petition is allowed.

JUDGMENT :

(Prayer: Petition filed under Article 227 of the Constitution of India, to call for the records relating to the impugned fair and decreetal order, dated 01.12.2018 passed in C.M.A.(CS) No.28 of 2011 on the file of the learned Principal District Judge, Madurai, reversing the Surcharge order passed in Tha.Va.2/2010 Sa.Pa/Na.Ka 1437/09/Sa/P dated 28.07.2010 on the file of the learned Deputy Registrar of Cooperative Society, Usilampatti Circle, Thirumangalam, and set aside the same as illegal.)

1. The Revision petitioner/President, M.D.Spl.121, Pasukkaranpatty Primary, Agricultural Cooperative Credit Society Limited, has preferred this Civil Revision Petition to set aside the impugned fair and decreetal order, dated 01.12.2018 in C.M.A.(CS) No.28 of 2011 passed by the learned Principal District Judge, Madurai.

2. The 1st respondent herein has filed C.M.A.(CS) No.28 of 2011 under Section 152(1) of the Tamil Nadu Co-operative Societies Act, on the file of the learned Principal District Judge, Madurai, to set aside the Surcharge order in Tha.Va.2/2010 Sa.Pa/Na.Ka 1437/09/Sa/P, dated 28.07.2010 passed by the 2nd respondent herein, for recovery of Rs.30,32,283/- with 18% interest and the same was allowed. Aggrieved over the same, the revision petitioner is before this Court.

3. Heard Mr. R.R. Kannan, learned counsel appearing for the revision petitioner and Mr. V.R. Venkatesan, learned counsel appearing for the 1st respondent. Perused the material documents available on record.

4. The learned counsel appearing for the revision petitioner submitted that the Court below ought to have dismissed the appeal file to set aside the Surcharge order passed by the 2nd respondent herein in Surcharge No.2/2010 Sa.Pa/Na.Ka 1437/09/Sa/P, dated 28.07.2010, for Rs.30,32,283/- with 18% interest, since the 1st respondent has swindled the above amount from the Petitioner's society. The 1st respondent has swindled a sum of Rs.30,32,283/- while he was working as Secretary of the Petitioner Society. It is the public money and hence in order to protect the interest of the Society as well as the public money, the order passed by the learned Principal District Judge, Madurai, dated 01.12.2018 has to be interfered with and set aside.

5. During the relevant period, the 1st respondent/ Appellant/petitioner worked as the Secretary in the M.D. Special 121 Pasukkaran Primary Agricultural Co-operative bank, Usilampatti Circle, Madurai District. The said bank is running since 08.05.1970.

6. The allegation against the 1st respondent herein /appellant/petitioner is that, during his tenure, some discrepancies were found in availing eligible agriculture loan proposal for Tamil Nadu Agriculture Debt Waiver and Debt Relief Scheme as on 31.03.2006 and in granting loans to the fake loaners by furnishing address of the members of the bank and also fictitious persons by using fake address and thereby caused loss to the bank to the tune of Rs.30,32,283/-.

7. The enquiry officer has commenced enquiry under Section 81 of the Act, on 13.04.2009 and examined the borrowers and sent the enquiry report dated 06.07.2009 under Section 81 of the Tamil Nadu Co-operative Societies Act, wherein it has been stated as follows:

Item No.1: Out of 91 members, loan was sanctioned to 67 persons by utilizing the address of the members.

Rs.24,38,022/-

Item No.2: Out of 34 members, loan was sanctioned to 10 persons by utilizing the address of the members and the loan was sanctioned to 10 fictitious persons.

Rs.5,94,261/-

Total

Rs.30,32,283/-

8. The enquiry officer has further stated that the above said loans were sanctioned by the 1st respondent herein while he was serving as Secretary of the Bank and thereby, the enquiry officer has recommended to initiate surcharge proceedings under Section 81 of the Tamil Nadu Co-operative Societies Act, against the 1st respondent

    Click Here to Read the rest of this document
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    SupremeToday Portrait Ad
    supreme today icon
    logo-black

    An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

    Please visit our Training & Support
    Center or Contact Us for assistance

    qr

    Scan Me!

    India’s Legal research and Law Firm App, Download now!

    For Daily Legal Updates, Join us on :

    whatsapp-icon Back to top