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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
K.MURALI SHANKAR, J.
S.Murugan - Petitioner
Vs.
The Deputy Registrar of Co-operative Societies (Housing), A-15, 1st Street, K.K.Nagar, Madurai District - Respondent
C.R.P.(PD)(MD).No.145 of 2021 and C.M.P.(MD)No.887 of 2021
Decided On : 27-09-2021
Constitution of India, 1950 - Article 227 - Tamil Nadu Co-operative Societies Act, 1983 - Section 81, 87, 152 - Industrial Disputes Act, 1947 - Section 18(1) – Wilful negligence - Petitioner while working as a Special Officer received demands from their employees for revision of wages - Settlement was concluded under Section 18(1) of Industrial Disputes Act and scale of pay was revised to all five employees of society - Since objections were made, wages paid prior to date of settlement were remitted by employees - After assumption of elected Board of Management, settlement for revision of scale of pay was concluded - Whether Special Tribunal for Co-operative Cases/Principal District Judge, erred in dismissing appeal, despite showing that second respondent has not rendered any finding that petitioner was guilty of willful negligence – Held, in absence of any categorical finding with respect to willful negligence, it is not possible to mulct appellant with loss caused to Society - But subsequently, recorded a finding that surcharge proceedings were initiated against appellant for revising wages of employees without approval of Registrar and it is crystal clear that payments were made not in accordance with Act or Rule - Neither first respondent nor Tribunal has referred any provision of Act or Rule or by-law, which were violated and that payments were made not in accordance with those provisions or Rules or bylaws - As rightly pointed out by revision petitioner side, first respondent has nowhere whispered that revision petitioner was guilty of willful negligence and there is absolutely no finding of mens rea in order passed by first respondent - Tribunal even after referring to decisions cited by learned counsel for revision petitioner and even after recording finding, that in absence of any categorical finding with respect to willful negligence, appellant cannot be mulcted with liability, has proceeded to dismiss appeal - Civil Revision Petition allowed.
ORDER :
Prayer: Civil Revision Petition filed under Article 227 of the Constitution of India, to set aside the fair and decreetal order made in C.M.A(CS)No.2 of 2016, dated 05.09.2019 on the file of the Principal District Court, Dindigul.
This Civil Revision Petition is directed against the order passed in C.M.A(CS)No.2 of 2016, dated 05.09.2019 on the file of the Principal District Court, Dindigul, dismissing the appeal filed against the order of the first respondent herein, dated 03.08.2015, under Section 87 of the Tamil Nadu Co-operative Societies Act, 1983.
2. The revision petitioner is the appellant. The first respondent has passed an order, dated 03.08.2015, impugned in the appeal, as against 16 persons, including the revision petitioner herein, holding that the petitioner and the respondents 13 to 16 are individually liable and the respondents 2 to 12 are jointly liable and directed them to make good the loss of the Society.
3. The facts not in dispute and that are necessary for the disposal of the present revision are as follows:
(ii) The Housing Federation stopped its activities of extending loan to the Housing Society all over Tamil Nadu from 01.07.2009. Thereafter, the Housing Societies out of the loan recovery started to reissue fresh loans and recover the same with interest. The Registrar of Co-operative Societies (Housing) based on the streamlining committee report, issued a circular, dated 15.06.2009, for revision of the scale of pay to the employees of the Housing Societies all over Tamil Nadu. But the second respondent Society has not revised wages of its employees as per the circular, dated 15.06.2009.
4. The petitioner while working as a Special Officer received demands from their employees for revision of the wages during the year 2012. The Housing Societies all over Southern Districts either by way of resolution or by way of settlement, revised the wages of their employees in terms of the circular, dated 15.06.2009. Since the then Deputy Registrar (Housing) gave oral permission for revision of wages, a resolution was passed on 31.05.2013 for revising the scale of pay to the members of the said Society.
5. In pursuance of the said resolution, settlement dated 31.05.2013 was concluded under Section 18(1) of the Industrial Disputes Act and the scale of pay was revised to all the five employees of the society w.e.f from 01.01.2013. Since objections were made, the wages paid prior to the date of settlement till 31.05.2013 were remitted by the employees. Though the society has forwarded a letter for fixation of cadre strength, the scale of pay and the conditions made on 19.08.2009, there was no response. After assumption of the elected Board of Management, the settlement for revision of the scale of pay was concluded.
6. The Deputy Registrar, Madurai has passed an order dated 03.08.2015, to conduct enquiry under Section 81 of the Tamil Nadu Cooperative Societies Act with respect to the irregularities committed by the petitioner and others in revising the wages without approval and for non- recovery of the loans.
7. The enquiry officers had issued show cause notice for which, the appellant submitted his explanation. Since the explanation was not satisfactory, charges were framed. The enquiry officer after conducting enquiry, has concluded that the charges stood proved that the appellant and the respondents 2 to 16 were responsible for
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