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IN THE HIGH COURT OF TELANGANA
NAGESH BHEEMAPAKA, J. 
M.Laxminarsimha Reddy - Appellant 
Versus 
The State of Telangana - Respondent 
Writ Petition No. 28105 of 2023 
Decided on : 19-04-2024

Advocates:
Advocate Appeared:
For the Appellant : S N VEERENDER SINGH
For the Respondent: GP FOR COOPERATION

The court upheld the authority of the Registrar to act without a fresh enquiry based on existing findings of misconduct, affirming the validity of the impugned order under the Telangana Cooperative Societies Act.

Headnote:(A) Telangana Cooperative Societies Act, 1964 - Section 21-AA - Writ Petition challenging the order of the Commissioner for Cooperation ceasing the petitioner from holding the office of President of the Society - The petitioner contended that the order was passed without a fresh enquiry and without notice. (Paras 1-6)

(B) Jurisdiction - The Division Bench had previously ruled that the Deputy Registrar lacked the authority to initiate proceedings under Section 21-AA(1)(b) against the petitioner, allowing the Registrar to proceed. (Paras 2, 6)

(C) Inquiry Findings - The impugned order was based on prior findings of financial misappropriation and irregularities, which were not contested by the Division Bench. (Paras 6)

(D) Alternative Remedy - The court noted that the petitioner has an effective alternative remedy under Section 76 of the Act. (Paras 6)

Findings of Court:
The court found that the impugned order was valid and did not violate the Division Bench's directions, as it was based on existing evidence and did not require a fresh enquiry.

Issues: The main issue was whether the Registrar was required to conduct a fresh enquiry before passing the impugned order.

Ratio Decidendi: The court ruled that the Registrar acted within his authority and that the previous findings were sufficient to support the impugned order without necessitating a new enquiry.

Result: Writ Petition dismissed.

ORDER

This Writ Petition questions the order dated 03.10.2023, whereby and whereunder the 2nd respondent–Commissioner for Cooperation and Registrar of Cooperative Society, by virtue of the powers vested in him under Section 21-AA of the Telangana Cooperative Societies Act, 1964 (for short, ‘the Act’) ordered that petitioner - President, Primary Agricultural Cooperative Society, Chandupatla shall cease to hold the office of the President with immediate effect and also shall be ineligible for being chosen as or being a member of the Committee through election or co-option for subsequent two terms and consequently, the Vice-President of the Society shall discharge the functions of the President.

2. The case of petitioner is that while he was discharging duties with dignity and honesty, on 16.05.2022, the 3rd respondent issued show cause notice calling for explanation on the complaint received by the Managing Committee members, for which he offered his explanation on 30.05.2022, denying the allegation. Thereafter, the 3rd respondent passed the order dated 31.05.2022 directing to cease the office as President of the Society with effect from 31.05.2022. It is stated that challenging the same, petitioner is stated to have filed Writ Petition No. 24514 of 2022 which was dismissed. The reagainst, Writ Appeal No. 622 of 2023 was filed and the Division Bench of this Court allowed the Writ Appeal on the ground that the Deputy Registrar is not competent to initiate proceedings under Section 21-AA(1)(b) of the Act against petitioner. It was made clear that the Registrar of Cooperative Societies shall be at liberty to initiate proceedings against petitioner under Section 21-AA(1)(b).

The ground urged by the petitioner is that when the Division Bench set aside the entire proceedings dated 31.05.2022, the 2nd respondent Commissioner for Cooperation and Registrar of Cooperative Society has to pass the impugned proceedings dated 03.10.2023 after conducting fresh enquiry and he cannot rely on the enquiry already conducted. The 2nd respondent passed the impugned order without issuing any notice.

3. When the Writ Petition was taken up for consideration, on 09.10.2023, petitioner was directed to implead the PACS, Chandupatla as the party respondent. Pursuant thereto, Sri A. Malla Reddy and PACS, Chandupatla have taken out I.A.Nos. 2 and 3 of 2023 to implead themselves as party respondents. Both the Applications were ordered on 02.11.2023 and 15.12.2023 respectively and they were impleaded as Respondents 4 and 5 to the Writ Petition.

4. On behalf of Respondents 4 and 5, a counter affidavit was filed, wherein the 4th respondent stated that petitioner ceased to be the President of the Society with the passing of the order dated 31.05.2022, later continued for a brief period by virtue of the interim order dated 22.06.2022 in Writ Petition No. 24514 of 2022. Subsequently, with the dismissal of Writ Petition by order dated 08.06.2023, he again ceased to be the President until Writ Appeal No. 622 of 2023 was allowed vide judgment dated 01.09.2023. Again the petitioner ceased to be the President of the 4th respondent Society with the passing of the impugned order dated 03.10.2023. It is stated that as per the instructions of the 2nd respondent, the 4th respondent resumed charge of the post of the President on 05.10.2023 and has been continuing as such. He denied the averment that petitioner is still President of the Society.

It is stated that petitioner indulged in various acts of mismanagement and misappropriation of funds of the society which were revealed in the enquiry held by the 3rd respondent and also when he personally visited the office of the society and inspected records on 06.05.2022; consequently, he was put on notice on 16.05.2022 for which he submitted reply on 30.05.2022 on his volition without seeking documents, but thereafter, he requested certain documents which were made ready on the same day but he took them on 01.06.2022 and now he is taking

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