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2022 Supreme(Mad) 3522

IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. SARAVANAN, J.
C. Krishnan - Appellant
Versus
The Joint Registrar of Co-op. Societies, Krishnagiri - Respondent
W.P. No. 17955 of 2022
Decided On : 15-09-2022

Advocates appeared:
For the Petitioner:S. Sathish, Advocate. For the Respondent: C. Meera Arugmugam, Additional Government Pleader.

The power to suspend the President of a Co-Operative Society under Section 76-A of the Act is to be exercised rarely, cautiously, and under exceptional circumstances, and elected officials are expected to act with utmost propriety and probity.

Headnote:

Suspension - Mismanagement of Co-Operative Society - Tamil Nadu Cooperative Societies Act, 1983, Section 76-A

Fact of the Case:

The petitioner, the President of a Co-Operative Society, was suspended under Section 76-A of the Tamil Nadu Cooperative Societies Act, 1983 for alleged mismanagement and manipulation of accounts related to the disbursement of subsistence allowance to a dismissed employee.

Finding of the Court:

The court found that the petitioner's actions constituted manipulation of the society's accounts, falling within the circumstances specified in Section 76-A of the Act, and upheld the suspension.

Issues: Alleged mismanagement and manipulation of accounts by the petitioner, invocation of Section 76-A of the Act, and the petitioner's challenge to the suspension.

Ratio Decidendi: The court held that the power to suspend the President of a Co-Operative Society under Section 76-A is to be exercised rarely, cautiously, and under exceptional circumstances. It also emphasized the expectation of utmost propriety and probity from an elected President.

Final Decision: The Writ Petition was dismissed, upholding the suspension of the petitioner under Section 76-A of the Tamil Nadu Cooperative Societies Act, 1983.

JUDGMENT

1. The petitioner has challenged the impugned order dated 24.05.2022 bearing reference Na.Ka.No.1008/2016/Sa.Pa. of the respondent, the Joint Registrar of Co-Operative Societies, Krishnagiri Region, Krishnagiri. The relevant portion of the impugned order reads as under:-

2. By the impugned order, the respondent has suspended the petitioner in the exercise of power under Section 76-A of the Tamil Nadu Cooperative Societies Act, 1983. In the impugned order, it has been stated that the petitioner was suspended on account of alleged mismanagement in the affairs of the Society and that enquiry under Section 82 of the Act was ordered.

3. The case of the petitioner is that invocation of the aforesaid provision against the petitioner was unwarranted, unjust and ex facie arbitrary. The petitioner has placed reliance on the following decision of this Court:-

i. D.Krishnamoorthy and another Vs. The Registrar of Co-operative Society (Housing) and another, dated 10.08.2021, in W.P.Nos.12476 & 12894 of 2021.

ii. M.Subramaniyan Vs. The Assistant Labour Commissioner and another, dated 15.07.2022, in

iii.M.Kanagasabapathy Vs. The Special Officer and others, 2007 SCC OnLine Mad 831 : (2007) 5 CTC 392

iv. The Registrar, The Co-operative Society, N.V.Natarajan Maligai and others Vs. M.Elango, 2020 SCC OnLine Mad 384 : (2021) 1 CTC 465

4. The facts on record indicate that the petitioner was elected as the President of S.615, Gundalapattai Primary Agricultural Co-operative Society on 11.08.2018 and functioned till 13.09.2019 and was later nominated to the post of Director and contested the president elections and was elected on 12.10.2020. A former Secretary, a paid employee of the said society named C.Sivalingam was placed under suspension on 19.02.2016. He was later dismissed from the service of the said Society on 08.03.2016.

5. The said Mr.C.Sivalingam had sent representations to the respondent that the society had not paid him subsistence allowance during the period of suspension. According to the petitioner, the request of the said Mr.C.Sivalingam was considered as per the prevailing bye laws and an order was passed on 31.10.2018 to grant subsistence allowances.

6. It is further case of the petitioner that the inspecting officials of the Department did not object to the order passed by the petitioner on 31.10.2018. It is further case of the petitioner that the Deputy Registrar in its proceedings dated 23.11.2021 directed the petitioner to decide the matter on merits in respect of disbursement of subsistence allowance payable to the said Mr.C.Sivalingam for the period between 19.02.2016 and 20.02.2018 who was later dismissed from service on 08.03.2019.

7. On 14.03.2022, the petitioner appears to have decided to disburse the subsistence allowance to the employee namely Mr.C.Sivalingam. An accounting entry was made to make it seem as if the amount was being paid to the said Mr.C.Sivalingam after having received a sum of Rs.7,00,000/- from Charkarai Sevadhan.

8. Mr.C.Sivalingam filed W.P.No.13630 of 2022 before this Court on 30.05.2022. On 03.06.2022 during the summer vacation, this Court allowed the Writ Petition and directed Society / third respondent therein to disburse subsistence allowance to the said Mr.C.Sivalingam for the period between 19.02.2016 and 20.02.2018, within a period of two weeks from the date of receipt of a copy of the order. The cause title of the said Writ Petition shows that the Society was arrayed as the third respondent and was represented the President. It is noticed that the impugned order is dated 24.05.2022, whereas, the order was passed 03.06.2022, on which date, the petitioner had already been suspended.

9. Prior to passing of the impugned order dated 24.05.2022, a Show Cause Notice dated 24.03.2022 was issued to the petitioner regarding the alleged manipulation of the account by the petitioner regarding the disbursement of the subsistence allowance to Mr.C.Sivalingam. The Show Cause Notice dated 24.0

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