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IN THE HIGH COURT OF TELANGANA 
ALOK ARADHE, CJ., ANIL KUMAR JUKANTI, J. 
M. Laxminarsimha Reddy – Petitioner
Versus
The state of Telangana – Respondent
Writ Appeal No.313 of 2024 
Decided On : 29-04-2024

Advocates Appeared:
For the Petitioner: S.N. Veerender Singh
For the Respondent: GP for Cooperation

The Commissioner must conduct an enquiry before removing an office holder under the Telangana Cooperative Societies Act, ensuring procedural fairness.

Headnote:(A) Telangana Cooperative Societies Act, 1964 - Section 21-AA(1)(b) - Validity of order ceasing the appellant from holding the office of President of the Society - The Commissioner for Cooperation issued an order without conducting an enquiry as mandated by the Act - The learned Single Judge's dismissal of the Writ Petition was not justified. (Paras 2, 3, 9)

(B) Administrative Procedure - Requirement of enquiry - The court emphasized that an enquiry must precede any order affecting the rights of an office holder under the Act. (Paras 8, 9)

Facts of the case:
The appellant was removed from the office of President of the Society based on a complaint and subsequent orders, which were challenged in court. The court found that the removal was executed without the necessary enquiry as required by law.

Findings of Court:
The orders passed by the Commissioner and the learned Single Judge were set aside, directing the Commissioner to conduct an enquiry under the Act within four weeks.

Issues: The main issue was whether the Commissioner could remove the appellant without conducting an enquiry as required by Section 21-AA(1)(b) of the Act.

Ratio Decidendi: The court ruled that the Commissioner must conduct an enquiry before passing an order affecting the appellant's position, reinforcing the principle that procedural fairness is essential in administrative actions.

Result: Writ Appeal is disposed of with directions.

ORDER

JUDGMENT : 
(Alok Aradhe, CJ.) 

Mr. Muddu Vijai, learned Senior Counsel represents Mr. S.N. Veerender Singh, learned counsel for the appellant. 
Smt. B. Mohana Reddy, learned Government Pleader for Cooperation appears for respondent Nos.1 to 3. 
Mr. D. Goverdhana Chary, learned counsel appears for respondent Nos.4 and 5. 

2. In this intra court appeal, the appellant has assailed the validity of the order dated 19.04.2024 passed by the learned Single Judge by which Writ Petition No.28105 of 2023 preferred by the appellant has been dismissed. In the aforesaid Writ Petition, the appellant has assailed the validity of the order dated 03.10.2023 by which the Commissioner for Cooperation and Registrar of Cooperative Societies, Telangana, Hyderabad, held that the appellant shall cease to hold the Office of the President of Primary Agricultural Cooperative Society, Chandupatla, Yadadri Bhuvanagiri District (hereinafter referred to as ‘the Society’), and is ineligible for being chosen as a Member of the Managing Committee of the Society. 

3. Facts giving rise to filing of this Writ Appeal briefly stated are that the appellant was performing the duties of the President of the Society. On the basis of the complaint made against the appellant by the Vice-President and certain Members of Managing Committee of the Society, the District Cooperative Officer, Yadadri Bhuvangiri, issued a notice to the appellant seeking explanation. The appellant submitted an explanation on 30.05.2022. The District Cooperative Officer by an order dated 31.05.2022 held that the appellant shall cease to hold the Office of the President of the Society. 

4. The appellant assailed the validity of the aforesaid order dated 31.05.2022 by filing Writ Petition No.24514 of 2022 which in turn was dismissed by the learned Single Judge vide order dated 08.06.2023. Against the said order dated 08.06.2023, an intra court appeal, namely, W.A.No.622 of 2023 was filed. A Division Bench of this Court by a judgment dated 01.09.2023 inter alia held that the Deputy Registrar is not competent to initiate the proceeding under Section 21-AA(1)(b) of the Telangana Cooperative Societies Act, 1964 (hereinafter referred to as ‘the 1964 Act’), and accordingly, the order dated 08.06.2023 was quashed. However, liberty was reserved to the Commissioner for Cooperation and Registrar of Cooperative Societies, Telangana, Hyderabad, to initiate the proceeding against the appellant under Section 21-AA(1)(b) of the 1964 Act. Thereafter, in pursuance of the judgment dated 01.09.2023 passed by the Division Bench, the Commissioner for Cooperation and Registrar of Cooperative Societies, Telangana, Hyderabad, by an order dated 03.10.2023 held that the appellant shall cease to hold the Office of the President of the Society. 

5. The appellant challenged the aforesaid order dated 03.10.2023 passed by the Commissioner for Cooperation and Registrar of Cooperative Societies, Telangana, Hyderabad, in Writ Petition No.28105 of 2023 which was dismissed by the learned Single Judge vide order dated 19.04.2024. Hence, this Writ Appeal. 

6. We have heard learned counsel for the parties at length. 

7. Before proceeding further, it is apposite to take note of para 24 of the judgment dated 01.09.2023 passed in Writ Appeal No.622 of 2023.

“24. Therefore, the impugned order dated 08.06.2023 passed by the learned Single Judge is set aside and the order dated 31.05.2022 issued by the Deputy Registrar/DCO is hereby quashed. However, needless to state that the Registrar of Cooperative Societies shall be at liberty to initiate the proceedings against the appellant under Section 21-AA(1)(b) of the Act.”

8. The relevant extract of Section 21-AA(1)(b) of the 1964 Act reads as under: 

“on an enquiry under this Act he is found guilty of misuse of the property of the society for his personal gain.”

Thus, in view of aforesaid statutory mandate, the Registrar is required to conduct an enquiry and to pass an order. 

9. In the instant case, the C

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