Disciplinary actions must be proportionate to the misconduct, and arbitrary termination without fault is impermissible.

ORDER :

In this Writ Petition, the petitioner has challenged the Impugned Order dated 07.08.2013 of the 1^st respondent passed under Section 153 of the Tamil Nadu Co-operative Societies Act, 1983 (hereinafter referred to as “the Act”).

2. By the Impugned Order dated 07.08.2013, the 1^st respondent has affirmed the Order dated 16.02.2013 of the 2^nd Respondent Society terminating the service of the petitioner from the 2^nd Respondent Society. Operative portion of the Impugned Order dated 07.08.2013 reads as under:-

3. In the background of the Order dated 16.02.2013 of the 2^nd Respondent Society terminating the service of the petitioner from the 2^nd Respondent Society is a surcharge proceeding under Section 87 of the Act initiated against the petitioner and a Charge Memo dated 22.02.2012 issued to the petitioner under the provisions of the Tamil Nadu Co-operative Societies Rules, 1988 applicable to the 2^nd Respondent Society.

4. The aforesaid Charge Memo dated 22.02.2012 was issued to the petitioner in the light of the purported/perceived loss suffered by the 2^nd Respondent Society for a sum of Rs.1,03,513.75/- on account of the alleged failure of the petitioner to take interests of the 2^nd Respondent Society in his capacity as the salesman in the Fair Price Shop run under the control of the 2^nd Respondent Society.

5. The details of the purported loss in the aforesaid Charge Memo dated 22.02.2012 are as under:-

6. As far as the surcharge proceedings under Section 87 of the Act is concerned, an Award in A.F.No.4/2010-2011 came to be passed by the Sub-Registrar of Co-operative Society/Field Officer/Arbitrator in the Court of Arbitrator, Vanur Taluk, Villupuram District on 31.12.2011, whereby the petitioner was ordered to pay a sum of Rs.52,089.75/- towards the alleged loss suffered by the 2^nd Respondent Society during the period 1997-1998 to 2003-2004 in the shops located in Therkunam and Edacheri. During the aforesaid period, the total loss sustained by the 2^nd Respondent Society was estimated at Rs.17,808.75/-. The interest on the alleged loss sustained by the 2^nd Respondent Society was calculated at 14% till 31.12.2011 for a sum of Rs.34,281/- on the aforesaid principal sum of Rs.17,808.75/-.

7. Thus, in all, the petitioner was directed to pay a sum of Rs.52,089.75/- (Rs.17,808.75/- + Rs.34,281.00/-). The petitioner filed C.M.A. (CS) No.14 of 2013 under Section 152(1) of the Act read with Rule 168 and Rule 169 of the Tamil Nadu Co-operative Societies Rules, 1988 before the District Court at Villupuram.

8. By an Order dated 06.09.2019, the Principal District Judge, Villupuram, partly allowed the appeal by restricting the award amount to Rs.6,746/- with interest at 14% over and above a sum of Rs.7,797/-, which the petitioner had admitted and paid for the alleged loss suffered by the 2^nd Respondent Society.

9. Thus, in all, as against Rs.52,089.75/- consisting of (Rs.17,808.75/- + Rs.34,281.00/-), liability of the petitioner was reduced to Rs.14,543/- (Rs.7,797/- + Rs.6,746/-)

10. The case of the petitioner is that the petitioner cannot be held liable for the loss sustained by the 2^nd Respondent Society as the goods that were damaged were not on account of any fault of the petitioner but on account of the previous employees, namely, Subbarayan and Chellappan during their tenure at Thailapuram Fair Price Shop and that he had given a written complaint dated 08.06.2010 to the Secretary of the 2^nd Respondent Society.

11. The further case of the petitioner is that the petitioner joined in Thailapuram Fair Price Shop only from 01.11.2009 whereas, the loss for the damaged goods for a sum of Rs.40,380/- and the loss incurred on account of the differenc