IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. SARAVANAN, J.
C.S. Babu - Appellant
Versus
The Joint Registrar of Co-operative Societies, Cuddalore & Others - Respondent
W.P. No. 11500 of 2022 & W.M.P. No. 11000 of 2022
Decided On : 12-08-2022
Writ Petition - Suspension Order - Tamil Nadu Cooperative Societies Act, 1983, Section 76(A) - The court found that the invocation of power under Section 76-A is intended to preserve evidence during inquiry or inspection, not to punish a person. The suspension order was not justified as the report had been generated and the suspension should have been given to the petitioner. The court allowed the writ petition with observations.
Fact of the Case:
The petitioner filed a writ petition to challenge the suspension order passed under Section 76(A) of the Tamil Nadu Cooperative Societies Act, 1983. The petitioner argued that the suspension was not justified as the report had been generated and the suspension should have been given to the petitioner.
Finding of the Court:
The court found that the suspension order was not justified as the invocation of power under Section 76-A is intended to preserve evidence during inquiry or inspection, not to punish a person. The court allowed the writ petition with observations.
Issues: The issues revolved around the justification of the suspension order under Section 76(A) of the Tamil Nadu Cooperative Societies Act, 1983, and whether the suspension was in line with the purpose of preserving evidence during inquiry or inspection.
Ratio Decidendi: The court held that the suspension order was not justified as the invocation of power under Section 76-A is intended to preserve evidence during inquiry or inspection, not to punish a person.
Final Decision: The court allowed the writ petition with observations, finding no merits in the suspension order and leaving it open to the respondents to initiate appropriate proceedings under the provisions of the Tamil Nadu Cooperative Societies Act, 1983.
JUDGMENT
(Prayer: Writ Petition filed under Article 226 of Constitution of India, for issuance of a Writ of Certiorari to call for the impugned order of suspension passed by the first respondent in his proceeding Na.Ka.6129/2021Thu.Va.Tha.1 dated 05.04.2022 and quash the same.)
1. The petitioner has filed this writ petition for the issuance of a Writ of Certiorari to call for the impugned order of suspension passed by the first respondent in his proceeding Na.Ka.6129/2021Thu.Va.Tha.1 dated 05.04.2022 and quash the same.
2. The petitioner has challenged the impugned order of the second respondent/the Deputy Registrar Cooperative Societies dated 05.04.2022 bearing reference Na.Ka.No.6129/2021 Thu.Va.Tha. 1, suspending the petitioner for a period of three months by invoking the power under Section 76(A) of the Tamil Nadu Cooperative Societies, Act, 1983 which came to be inserted in the Act, by virtue of the Act No.13 of 2020 after it received the assent of the Governor on 25.02.2020.
3. The impugned order suspending the petitioner is challenged primarily on the ground that the petitioner an elected member/president of the Seraakuppam Primary Agricultural Cooperative Credit Society Limited was extending loans only to the members who were possessing separate patta as in case of default, it becomes difficult to recover the amount and therefore to avoid any surcharge proceedings under Section 87 of the Tamil Nadu Cooperative Societies Act, 1983, the loan was given to those who had requisite documents.
4. It is submitted that complaints were received against the petitioner, pursuant to which, an enquiry under Section 81 was ordered and an inspection under 82 was conducted and the report were also given as early as on 24.11.2021 by the Cooperative Sub-Registrar/full officer, pursuant to which, a proposal was given by the second respondent on 17.12.2021.
5. It is submitted that though these documents were generated, a Show Cause Notice was issued on 22.12.2021 seeking to invoking powers under Section 76(A) of the Tamil Nadu Cooperative Societies Act, 1983 to which the petitioner replied on 22.12.2021 and requested the respondents to furnish a copy of a report dated 24.11.2021 and the recommendations of the second respondent dated 17.12.2021. Instead of furnishing the above, the respondents proceeded to pass the impugned order dated 05.04.2022 by suspending the petitioner for a period of three months from 05.04.2022.
6. It is further submitted that invocation of Section 76-A of the Tamil Nadu Cooperative Societies Act, 1983 cannot be countenanced as it is an extraordinary power given to the Registrar to suspend an elected President or Vice President pending inquiry under Section 81 or inspection/investigation under Section 82 of the Act.
7. It is further submitted though an inquiry was ordered and a report was generated, it has not been furnished. It is therefore submitted there is no basis on which the proceedings under Section 76-A of the above said Act would have been initiated against the petitioner.
8. It is further submitted that the reasons given in the impugned order stating that the petitioner has not responded to earlier notice appears to be punitive though Section 76 is intended to preserve the evidence that may be against the petitioner.
9. That apart, it is submitted that the petitioner was placed under suspension for a period of three months from 05.04.2022 and that three months has already expired and therefore, the impugned order may be quashed by directing the respondent to allow the petitioner to function as the elected President of Serakuppam, Primary Agricultural Co-operative Credit Society Limited.
10. Opposing the prayer, the learned Additional Government Pleader for the respondents submits that the writ petition is without any merits as the petitioner has an alternate remedy under Section 152 of the Tamil Nadu Cooperative Societies Act, 1983.
11. That apart, it is submitted that there were several complaints received against t
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