IN THE HIGH COURT OF JUDICATURE AT MADRAS
S. SOUNTHAR, J.
A.A. Karupasamy - Appellant
Versus
The Joint Registrar of Co-operative Societies, Tirupur & Ors. - Respondents
Writ Petition No. 16136 of 2023 & W.M.P. No. 15526 of 2023
Decided On : 07-07-2023
Suspension - Cooperative Society - Tamil Nadu Co-operative Societies Act, 1983, Section 76-A - The court discussed the powers conferred under Section 76-A of the Act, the jurisdiction of the Registrar, and the Government Order enabling the Joint Registrar to exercise powers of the Registrar. The court held that the impugned order was passed without jurisdiction and quashed the same.
Fact of the Case:
The Writ Petition challenges the order suspending the petitioner from the post of President of the Alanthur Primary Cooperative Society.
Finding of the Court:
The court found that the impugned order was passed without jurisdiction and quashed the same. The alternative remedy under Section 15(b) of the Act was rejected.
Issues: Jurisdiction of the Registrar and Joint Registrar, availability of alternative remedy.
Ratio Decidendi: The court held that the powers under Section 76-A of the Act can only be exercised by the Registrar, and the impugned order passed by the Joint Commissioner was without jurisdiction.
Final Decision: The writ petition is allowed by quashing the impugned order dated 05.05.2023 in Na.Ka.No.2181/2023/Pa.2. No costs were awarded.
JUDGMENT
(Prayer : Writ Petition filed Under Article 226 of the Constitution of India, to issue a writ of Certiorari calling for the records of the 1st respondent impugned order dated 05.05.2023 made in Na.Ka.No.2181/2023/Pa.2 issued as against the petitioner and quash the same.)
1. This Writ Petition is filed challenging the order dated 05.05.2023, passed by the 1st respondent, suspending the petitioner from the post of President of the Alanthur Primary Cooperative Society.
2. The impugned order was passed by the 1st respondent under Section 76-A of the Tamil Nadu Co-operative Societies Act, 1983 (in short 'the Act'). The said provision reads as follows:
"76-A. Suspension of President or Vice President of a registered society under certain circumstances.-
(1) Where it is brought to the notice of the Registrar, on a complaint or otherwise, that the President or the Vice President of a registered society has committed or has been otherwise responsible for misappropriation or breach of trust or gross mismanagement of the affairs of the registered society or committed any offence involving criminal misconduct or moral turpitude and if, in the opinion of the Registrar, there is a prima facie evidence against the President or the Vice President and the suspension of the President or the Vice President is necessary in the interest of such society or in the public interest, the Registrar may, by order, place the President or Vice-President, under suspension for a period not exceeding six months, pending inquiry under Section 81 or inspection or investigation under Section 82 or investigation into the offence involving criminal misconduct or moral turpitude.
(2) Notwithstanding anything contained in sub-section (1), where an action under section 36 has been initiated against the President or the Vice-President, the period of suspension may be extended by the Registrar, from time to time, for the reasons to be recorded in writing, for a further period of six months or till final order is passed under Section 36, whichever is earlier."
3. The above said provision was inserted to the main Act by T.N.Act 13 of 2020, published in Tamil Nadu Gazette, Extra, Part IV, S.2, dated 26.02.2020, with effect from 26.02.2020.
4. A reading of the above provision would make it very clear that under Section 76-A of the Act, only the Registrar of the Co-operative Societies is empowered to exercise the powers conferred under the Act. Unfortunately, in the case on hand, the said powers had been exercised by the Joint Registrar of Co-operative Societies. Prima facie, the order was passed by the 1st Respondent without jurisdiction.
5. The learned Special Government Pleader appearing for the Respondents, by drawing the attention of this Court to Section 3 of the Act and the Government Order issued in G.O.(2D) No.108 Cooperation, Food and Consumer Protection Department dated 31.08.2005, submitted that in respect of any primary or central society, the Joint Registrar has the power to exercise powers of the Registrar, under the Act.
6. Section 76-A of the Act is introduced only in the year 2020. When the aforesaid Government Order was issued on 31.08.2005, the said provision was not at all available in the statute book. Therefore, the Government Order issued on 31.08.2005 is only to enable the Joint Registrar to exercise the powers that were available to the Registrar on the date of issuance of the said Government Order. If any other provision conferring new power to Registrar, is inserted to main Act, subsequent to the Government Order, by way of amendment, unless fresh Government Order is issued enabling the Joint Registrar to exercise the power which was conferred to the Registrar by way of amendment, the same cannot be exercised by the Joint Registrar.
7. Similar view was taken by another learned Judge of this Court in W.P.(MD) No.23902 of 2022. The observation made by this court in this regard is as follows:
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 expect....
The main legal point established in the judgment is that the invocation of power under Section 76-A of the Tamil Nadu Cooperative Societies Act, 1983 is intended to preserve evidence during inquiry o....
The Assistant Registrar of Cooperative Societies cannot restore a suspension already lifted by the Committee, as such authority is not vested under the Odisha Cooperative Societies Act.
The court upheld the authority of the Registrar to act without a fresh enquiry based on existing findings of misconduct, affirming the validity of the impugned order under the Telangana Cooperative S....
Jurisdictional error and misinterpretation of court orders by a delegated authority can lead to the quashing of their decisions.
The Registrar of Cooperative Societies has supervisory authority under Section 66 to intervene in the appointment process of officers within cooperative societies.
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