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IN THE HIGH COURT OF JUDICATURE AT MADRAS
MR.JUSTICE SATHI KUMAR SUKUMARA KURUP, J
Management of P.G.27 – Appellant
Versus
V.Senthilkumar – Respondent
ORDER :
SATHI KUMAR SUKUMARA KURUP, J.
This Civil Revision Petition is filed by the 2nd Respondent in C.M.A(C.S)No.81 of 2009 before the learned Co-operative Tribunal, Erode, (Principal District Court, Erode), who is the Revision Petitioner herein.
2. Brief facts which are relevant to decide this Civil Revision Petition are as follows:-
(a) The 1st Respondent herein was the Secretary of the 2nd Respondent Co-operative Society. While so, the Deputy Registrar of Co-operative Society is stated to have received complaints that the 1st Respondent was engaged in certain financial malpractices, affecting the interest of the Society. This was followed by an enquiry under Section 81 of the Tamil Nadu Co-operative Societies Act , following which surcharge proceedings were initiated against the 1st Respondent.
(b) On 31.05.2004, a surcharge order was made, in which, the 1st Respondent was found guilty of causing financial loss to the 2nd Respondent due to his willful acts and commission and omission to a tune of Rs.28,48,551/- and this liability was fastened on him. This was challenged by the 1st Respondent in C.M.A(C.S)No.5 of 2004 before the Tribunal (Principal District Judge, Erode) vide order
Surcharge proceedings under the Tamil Nadu Co-operative Societies Act must adhere to principles of natural justice, ensuring fair enquiry and opportunity for cross-examination.
Point of law: it is clear that, to pass surcharge order under Section 87 of the Act, appellants should have done an actionable wrong either by commission or omission in a deliberate and reprehensible....
Failure to appear for enquiries despite notices being issued can preclude a party from raising objections regarding violation of natural justice principles and non-consideration of material documents....
The main legal point established in the judgment is the importance of affording reasonable opportunity to the parties concerned in surcharge proceedings under the Tamil Nadu Co-operative Societies Ac....
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