IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M. SUBRAMANIAM, J.
P. Gengatachalam - Appellant
Versus
The Joint Registrar of Cooperative Societies, Krishnan Region/Regional Authority, Krishnagiri & Another - Respondent
WP No. 18809 of 2014 & MP Nos. 2 & 3 of 2014
Decided On : 20-06-2022
Loan Waiver - Employment Dismissal - Tamil Nadu Cooperative Societies Act 1983, Section 81, 153, 154 - The court upheld the dismissal of an employee from service by a Cooperative Society for irregularities in granting loans, despite the government's waiver of the loans. The court held that the waiver of loans by the government did not exonerate the employee from the charges of misconduct and financial loss to the society. The court emphasized that the judicial review is limited to procedural violations and disproportionate punishment.
Fact of the Case:
The writ petitioner, a Clerk in a Cooperative Society, was dismissed from service for irregularities in granting loans causing financial loss to the society. The petitioner argued that the government's waiver of the loans should exonerate him.
Finding of the Court:
The court found that the dismissal was justified as the charges of irregularities and financial loss were proved against the petitioner. The court emphasized that the government's loan waiver did not absolve the petitioner from the charges.
Issues: The main issue was whether the government's waiver of loans should exonerate the petitioner from the charges of irregularities and financial loss to the society.
Ratio Decidendi: The court held that the government's waiver of loans did not absolve the petitioner from the charges of misconduct and financial loss. The court emphasized that the judicial review is limited to procedural violations and disproportionate punishment.
Final Decision: The writ petition was dismissed, and the dismissal of the petitioner from service was upheld.
JUDGMENT
(Prayer: Writ Petition is filed under Article 226 of the Constitution of India, praying for the issuance of a Writ of Certiorarified Mandamus, calling for the records relating to the impugned order passed by the second respondent in his proceedings dated 25.10.2010 and confirmed by the first respondent/ revisional authority in his proceedings Na.Ka.466/2011 Sa.Pa. Dated 25.03.2013 and quash the same and reinstate the petitioner into service with all service and monetary benefits.)
1. The order of dismissal from service issued by the second respondent-Cooperative Society dated 25.10.2010, confirmed by the order of Revisional Authority in proceedings dated 25.03.2013, are under challenge in the present writ petition.
2. The writ petitioner was appointed as Clerk on 28.11.1990 in the second respondent-Cooperative Society. With reference to grant of loan to the members of the second respondent-Society, charges were framed against the writ petitioner in proceedings dated 24.01.2009. The writ petitioner was placed under suspension on 09.01.2009. Nine charges were framed against the writ petitioner. The allegations are regarding grant of irregular loans and causing financial loss to the second respondent-Cooperative Society. The excess loan than that of the eligibility were sanctioned and disbursed to the members and therefore, the second respondent-Cooperative Society sustained financial loss. The writ petitioner submitted his explanations denying the charges.
3. The Domestic Enquiry Officer was appointed in proceedings dated 12.05.2009. The writ petitioner participated in the process of enquiry and defended his case. The Enquiry Officer submitted his report on 29.09.2009 holding that the charges against the writ petitioner are held proved. The enquiry report of the Enquiry Officer was accepted by the Disciplinary Authority and the order of dismissal from service was issued in proceedings dated 25.10.2010 after issuing the second show cause notice along with the copy of the domestic enquiry report.
4. The petitioner had defended his case in the enquiry proceedings. The petitioner thereafter filed revision under Section 153 of the Tamil Nadu Cooperative Societies Act, 1983 before the first respondent, who in turn also rejected the revision in proceedings dated 25.03.2013 and the review filed under Section 154 of the Act, was also rejected on 25.06.2013. Thus, the petitioner is constrained to move the present writ petition.
5. The main ground raised by the petitioner is that the loan amount has been waived by the Government by way of a policy decision and once the loan had been waived, there is no financial loss to the second respondent-Cooperative society and therefore, the order of dismissal is to be set aside. It is further contended that the petitioner is not liable for any such irregularity in grant of loan and loans were granted according to the eligibility of the individual members and the second respondent-Cooperative Society had not proved the charges before the Enquiry Officer and the explanations and the documents produced by the writ petitioner were not considered by the Competent Authority.
6. The learned counsel appearing on behalf of the second respondent-Cooperative Society disputed the said contentions raised on behalf of the petitioner by stating that the allegations are serious in nature. The charges are relating to sanctioning of loan to the members in excess than that of the eligibility of the respective members, which caused financial loss.
7. The learned counsel for the second respondent-Cooperative Society further contended that the charges were framed against the Secretary, Assistant Secretary and the writ petitioner-Clerk and all the three were dismissed from service as the financial implications were huge during the relevant point of time. That apart, based on the statutory enquiry conducted under Section 81 of the Tamil Nadu Cooperative Societies Act 1983 and based on the report, criminal case was register
The government's waiver of loans does not exonerate an employee from charges of misconduct and financial loss to the society.
The standard of proof required under the Co-operative Societies Act is distinct and different from that required under Criminal Law, and preponderance of probabilities suffices for punishment under t....
The distinct standards of proof required under different legal frameworks, such as criminal law and departmental disciplinary proceedings, and the independent nature of departmental disciplinary proc....
The dismissal from employment based on proven misappropriation and habitual misconduct is justified under the Tamil Nadu Co-operative Societies Act.
The main legal point established in the judgment is the importance of fairness in treatment and the limits of correcting errors of law, procedural errors leading to manifest injustice, or violation o....
The main legal point established in the judgment is the appropriateness of the punishment for misappropriation of funds and the reluctance to reduce punishment based on misplaced sympathy.
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.