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IN THE HIGH COURT OF JUDICATURE AT MADRAS
V.LAKSHMINARAYANAN
Arulanandham – Appellant
Versus
Deputy Registrar of Co-operative Societies, Salem – Respondent
ORDER :
1. This civil revision petition challenges the order passed by the learned Principal District Judge at Salem in CMA(CS) No.10 of 2010 dated 25.02.2019 in upholding the surcharge order passed by the Joint Registrar of Salem District Primary Agricultural Cooperative Societies, Salem Region, in Na.Ka.No.5050/2007/Sa.Pa/dated 11.10.2010.
2. The petitioner and the fourth respondent were in control of the affairs of S411, Sooramangalam Primary Agricultural Cooperative Bank Limited situated at Sooramangalam, Salem. Finding that certain irregularities had taken place in the cooperative society, the Registrar had directed initiation of proceedings under Section 81 of the Tamil Nadu Cooperative Societies Act. 1983. The enquiry officer conducted an enquiry and submitted a report in terms of Section 81 . As per the report, he found that there had been a misappropriation to the extent of Rs.17,00,684/-. He found 11 persons were responsible for the loss suffered by the society. Apart from these 11 persons, 8 other persons had been charged, who the enquiry officer did not find responsible and therefore exonerated them. As per the report under Section 81 , he fixed the responsibility on
A report under Section 81 of the Tamil Nadu Cooperative Societies Act is merely for internal review and does not necessitate formal issuance; non-issuance does not violate principles of natural justi....
The Secretary of a cooperative society bears responsibility for financial disbursements, even in cases of fraudulent activity by others, sustaining civil liability despite criminal acquittal.
Liability under Section 87 of the Tamil Nadu Cooperative Societies Act requires evidence of wilful negligence, which was not established for the clerk in this case.
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....
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....
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