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IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
M. Laxminarsimha Reddy – Appellant
Versus
State of Telangana – Respondent
Writ Appeal No.622 of 2023



The Deputy Registrar lacked jurisdiction to initiate proceedings under Section 21-AA(1)(b) of the Telangana Cooperative Societies Act, 1964, as such powers were not delegated to him.

Headnote:(A) Telangana Cooperative Societies Act, 1964 - Section 21-AA(1)(b) - Intra court appeal against dismissal of writ petition challenging order of Deputy Registrar ceasing appellant's office due to alleged misuse of society funds - The Deputy Registrar lacked jurisdiction to initiate proceedings under Section 21-AA(1)(b) as powers were not delegated for such actions. (Paras 4, 6, 24)

(B) Jurisdiction - The court held that the Registrar of Cooperative Societies is the competent authority to initiate proceedings under Section 21-AA(1)(b) and not the Deputy Registrar. (Paras 24, 23)

Facts of the case:
The appellant, President of a Primary Agricultural Cooperative Society, was accused of financial misconduct leading to a show cause notice and subsequent order from the Deputy Registrar ceasing his office.

Findings of Court:
The court found that the Deputy Registrar did not have the authority to initiate proceedings under the relevant section of the Act, thus quashing the order against the appellant.

Issues: The primary issue was whether the Deputy Registrar had the authority to initiate proceedings under Section 21-AA(1)(b) of the Act.

Ratio Decidendi: The court reasoned that the powers under Section 21-AA(1)(b) were not delegated to the Deputy Registrar, thus making the proceedings initiated by him invalid.

Result: Writ appeal allowed.

JUDGMENT :

Alok Aradhe, C.J.

Mr. Muddu Vijay, learned Senior Counsel representing Mr. S.N.Veerender Singh, learned counsel for the appellant.

Mr. Bandari Shankar, learned Assistant Government Pleader for Agriculture and Co-operation Department for respondents No.1, 3 and 4.

Mr. D.Goverdhanachary, learned counsel for respondent No.2.

2. With the consent of the parties the matter is heard finally.

3. In this intra court appeal, the appellant has assailed the validity of the order dated 08.06.2023 passed by the learned Single Judge by which the writ petition, namely W.P.No.24514 of 2022, preferred by the appellant in which challenge was made to order dated 31.05.2022 issued by the District Cooperative Officer, Yadadri Bhuvanagiri District (hereinafter referred to as, “the DCO”) under Section 21-AA(1)(b) of the Telangana Cooperative Societies Act, 1964 (briefly, “the Act” hereinafter), has been dismissed.

4. Facts giving rise to filing of this writ appeal in nutshell are that the appellant was elected as President of the Primary Agricultural Cooperative Society, Chandupatla Village, Bhuvanagiri Mandal, Yadadri Bhuvanagiri District. A complaint was made against the appellant by the Vice President and majority of the members of the Managing Committee of the Society in which it was alleged that the appellant has incurred lakhs of rupees without approval/resolution of the Managing Committee of the Society. On the basis of the aforesaid complaint, the DCO issued a show cause notice dated 16.05.2022. Appellant filed a reply to the said notice on 30.05.2022 in which it was stated that he has neither misused any funds of the Society nor has acquired any funds of the Society. The DCO by an order dated 31.05.2022 passed under Section 21-AA(1)(b) of the Act, held that the appellant shall cease to hold office with effect from 31.05.2022.

5. The appellant has challenged the validity of the aforesaid order dated 31.05.2022 in the writ petition. The learned Single Judge by an order dated 08.06.2023 dismissed the writ petition. In the aforesaid factual background, this writ appeal has been filed.

6. Learned Senior Counsel for the appellant while inviting the attention of this Court to G.O.Ms.No.10, dated 30.01.2017, which has been issued in exercise of powers under Section 3 of the Act, submitted that in respect of Primary Agricultural Cooperative Societies, the power under Section 116-C(1) of the Act alone, has been delegated to the Deputy Registrar/DCO. It is, therefore, submitted that initiation of proceedings against the appellant by the Deputy Registrar/DCO under Section 21-AA(1)(b) of the Act is per se without jurisdiction. It is further submitted that the Registrar of Cooperative Societies alone is competent to take action against the appellant under Section 21-AA(1)(b) of the Act.

7. On the other hand, learned counsel for the respondents have invited the attention of this Court to paragraph 3(3)(iii) of G.O.Ms.No.10, dated 30.01.2017, and have submitted that all powers of the Registrar under the Act, except the powers under Section 4(2), 17, 18, 19(2B) of the Act so far as District and State Level Societies are concerned, are conferred on the Deputy Registrars. Sections 50, 51, 52, 76, 86, 115, 116, 116-A and 116-C of the Act and powers of the Registrar under Rules 4, 12, 28, 29, 34(14), 39, 41, 45, 59 and 68 of the Telangana Cooperative Societies Rules, 1964 (briefly, “the Rules” hereinafter), had been delegated to the Deputy Registrars/DCOs and therefore, initiation of proceedings against the appellant by the Deputy Registrar/DCO is justified.

8. We have considered the submissions made on both sides and have perused the record.

9. Admittedly, respondent No.2 is a Primary Agricultural Cooperative Society. Section 3 of the Act deals with appointment of Registrar and other persons for the purpose of this Act. It reads as under:

3. Appointment of Registrar and other persons for the purpose of this Act:- (1) There shall be appointed a Registrar of Co-ope

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