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IN THE HIGH COURT OF JUDICATURE AT MADRAS
D.BHARATHA CHAKRAVARTHY
B.Mazhavarayar, S/o. Boorasamy – Appellant
Versus
Deputy Registrar Co-operative Societies – Respondent
| Table of Content |
|---|
| 1. factual background of surcharge order. (Para 1 , 2) |
| 2. petitioner's defense against negligence claims. (Para 3 , 4 , 5) |
| 3. court's analysis on negligence definitions. (Para 6 , 7 , 8) |
| 4. factors influencing neglect assessment. (Para 10 , 11 , 12 , 13 , 14 , 15) |
| 5. legal standards for wilful negligence. (Para 16) |
| 6. conclusion on civil revision petition. (Para 17) |
ORDER :
D.BHARATHA CHAKRAVARTHY, J.
The Civil Revision Petition is filed challenging the judgment and decree of the Principal District Judge, Cuddalore, made in C.C.M.A No. 1 of 2021, dated 20.09.2023. By the said order, the Co-operative Tribunal confirmed the order of surcharge passed against the petitioner on 02.11.2020. By the said order of surcharge, the petitioner, being the Secretary of the Co-operative Society, was charged with wilful negligence for not taking any action with reference to 24 loans mentioned in the surcharge order. By the said surcharge order, three sets of charges were levelled against the petitioner.
2. The charge against the petitioner is that, with reference to Charge No.1, 24 loans disbursed to the farmers became time-barred, totalling Rs.20,01,076/-. Charge No.2 relates to five loans
To impose surcharge under Section 87, there must be a finding of wilful negligence characterized by reckless disregard for consequences, not merely inadvertent acts.
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....
Surcharge under Co-operative Societies Act requires finding of willful/deliberate negligence causing loss to society assets.
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.
The court emphasized the need for proper authorization and approval for the waiver of outstanding loans and highlighted the power of superintendence of the High Court under Article 227 of the Constit....
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