The President of a cooperative society is responsible for supervising and preventing misappropriation, and can be held liable under Section 87(1) of the Tamil Nadu Co-operative Societies Act.

JUDGMENT

(Prayer: Civil Revision Petition under Article 227 of Constitution of India, to set aside the Judgment and decree passed in C.M.A(CS)No.1 of 2018 dated 24.04.2019 by the learned Principal District Judge, Tiruchirappalli.)

1. This Civil Revision Petition has been filed by the revision petitioner to set aside the Judgment and decree, dated 24.04.2019 in C.M.A(CS)No.1 of 2018 passed by the learned Principal District Judge, Tiruchirappalli.

2. The parties are referred to as per the rank mentioned before the Court below.

3. The revision petitioner was President of the 2nd respondent's society and five charges were framed against him. After enquiry under Section 87(1) (g) of Tamil Nadu Co-operative Societies Act, orders also passed against him for 2, 3 & 5 charges on 10.11.2016.

3(i). The second charge is that on 21.06.2016, an amount of Rs.8,87,000/-(Rupees Eight Lakhs Eighty Seven Thousand Only) was withdrawn and remitted back on 02.07.2016. So, the interest for the period of 11-days.

3(ii). The third charge is that the Members of the Society have paid loan amount to the society. But the delinquents have not credited the amount to the society. So, they have misappropriated a sum of Rs.26,12,334/-[Twenty Six Lakhs Tweleve Thousand Three Hundred and Thirty Four Only].

3(iii). The fifth charge is that they have forged the signature of the members and withdrawn a sum of Rs.2,45,900/-[Rupees Two Lakhs Forty Five Thousand and Nine Hundred Only].

4. After enquiry, all the three charges were proved against the revision petitioner and order was also passed. Aggrieved by the said order, this revision petitioner has preferred C.M.A.No.1 of 2018 which was also dismissed and confirmed the order in surcharge proceedings. Against the same, the revision petitioner is before this Court.

5. Heard on either side. Perused the material documents available on record.

6. This Civil Revision Petition is filed on the ground that the Court below ought to have considered that the Jewel Appraiser had remitted the entire misappropriated amount of Rs.8,87,000/-relating to the irregularities stated as item No.2 and therefore, the petitioner cannot be liable for the interest of Rs.3,208/-towards the temporary period of misappropriation. The 1st respondent has not furnished the relevant records including the enquiry report under Section 81 of the Tamil Nadu Cooperative Societies Act, during the surcharge proceedings. The surcharge proceeding was conducted without even following the principles of natural justice and without giving opportunity to put forth the defence. The 1st respondent has not given any reason or finding in respect of the liability of the petitioner.

7. The learned counsel appearing for the revision petitioner contended that he is only a President. His power is supervision only. Mere failure in supervision cannot be held as wilful negligent. The Board only liable for the imperfect supervision. The President is not responsible for the misappropriation as stated in the charges framed against him.

8. The ingredients of Section 84 of the Tamil Nadu Co-operative Societies Act, is extracted hereunder:

“84. Maintenance of accounts and books by registered society:

The chief executive that is, the principal paid officer of every registered society by whatsoever designation he is called, or the president of that society, if there is no such chief executive in that society, shall be bound to keep and maintain such accounts and books relating to that society in such manner as may be prescribed. He shall be responsible up to date maintenance of such accounts and books and for producing them when called for in connection with audit under section 80 or inquiry under section 81 or inspection or investigation under section 82 or Inspection of books under section 83”.

From the above, only the chief executive or the President of the Societies is responsible for maintaining accounts.

9. The ingredients of Section 87(1) of the Tamil Nadu Co-operative