Back
2025 Supreme(Online)(AP) 1774
HIGH COURT OF ANDHRA PRADESH
TARLADA RAJASEKHAR RAO, J
M/s. Tatipaka Primary Agriculture Co-operative Credit Society – Appellant
Versus
The State Of Andhra Pradesh and Others – Respondent
Writ Petition Nos: 4029 AND 3570 OF 2024
For the Appellants/Petitioners: SRINIVAS BASAVA
For the Respondents: GP FOR COOPERATION (AP), RAMBABU KOPPINEEDI
Unilateral revocation of a gift deed by a society's president without following prescribed bylaws and legal processes is invalid and constitutes a breach of trust.
Headnote:(A) Constitution of India - Article 226 - Andhra Pradesh Cooperative Societies Act, 1964 - Proceedings to set aside surcharge proceedings and revocation of gift deed - Petitioners challenged legality of orders issued by A.P. Co-operative Tribunal, emphasizing violation of natural justice and fundamental rights - The Tribunal's decision found gift revocation invalid due to non-compliance with cooperative society bylaws and relevant legal stipulations. (Paras 6, 8, 38)
(B) Role of bylaws - Impact of unilateral decision of the President on society's authority - Necessity of joint signatures for executing documents as per bylaw provisions - Tribunal’s findings overstated the donor’s authority and did not recognize collective decision-making as vital. (Paras 22, 35)
Facts of the case:
The petitioner challenged orders from the Cooperative Tribunal over surcharge proceedings and revocation of the gift deed executed by a past president to the society, asserting misappropriation and violation of regulations - The Court examined the unilateral revocation and requirements of proper procedure.
Findings of Court:
The revocation deed executed unilaterally was ruled unlawful due to clear breaches of social bylaws and the law as outlined; hence the initial order of the Tribunal was unsustainable.
Issues: The main legal questions included the validity of unilateral gift deed cancellation, adherence to cooperative bylaws, and subsequent implications concerning trust and authority within the Society.
Ratio Decidendi: The decision concluded that revocation without proper procedure directly undermines the trust placed in the Society by its members, reinforcing the necessity of lawful adherence to bylaws.
Result: The Writ Petition was allowed, reversing the Tribunal's order and reinstating the original gift deed.
COMMON ORDER:
The Writ Petition No.4029 of 2024 is filed under Article 226 of Constitution of India for the following relief/s:
……for issuance of an appropriate Writ, Order, or direction more particularly one in the nature of Writ of Certiorari, calling for the records in O.A. No.53 of 2019 vide orders dated 24.11.2023 on the file of the A.P. Co-operative Tribunal, Vijayawada and set-aside the same as illegal, arbitrary and contrary to the principles of natural justice, violative of Fundamental Rights guaranteed under Article 14 and 21 of the Constitution of India and contrary to the provisions of the Andhra Pradesh Cooperative Societies Act, 1964 and rules made therein and consequently set-aside the same as void and illegal and pass such other order or orders…..
2. The Writ Petition No.3570 of 2024 is filed under Article 226 of Constitution of India for the following relief/s:
….for issuance of an appropriate Writ, Order, or direction more particularly one in the nature of Writ of Certiorari, calling for the records in O.A. No.20 of 2018 vide orders dated 24.11.2023 on the file of the A.P. Co-operative Tribunal, Vijayawada and set-aside the same as illegal, arbitrary and contrary to the principles of natural justice, violative of Fundamental Rights guaranteed under Article 14 and 21 of the Constitution of India and contrary to the provisions of the Andhra Pradesh Cooperative Societies Act, 1964 and Rules made therein and consequently set- aside the same as void and illegal and pass such other order or orders…..
3. Unnecessary facts are shorn off in the case. The 2nd respondent by name Sri Lakkisetti Suranna, who is elected and discharged duties as President of the Petitioner-Society i.e. M/s. Tatipaka Primary Agriculture Cooperative Credit Society Limited No.3746 (hereinafter called as ‘Society’), for a period from 01.07.1987 to 30.06.1990. During the tenure of his presidentship of the Society, he had gifted an extent of land Ac.0.08 cents in R.S. No.87/2 of Tatipaka Village, Razole Mandal, East Godavari District, on a condition to name the building, of his late father Sri Lakkisetti Subba Rao. The said registered gift was executed on 02.01.1989 in favour of the Society. Later he executed a codicil deed on 04.01.1989 for wrongly mentioning of boundaries in the gift deed.
4. The 2nd respondent herein served as Vice-President from 04.02.2013 to 03.02.2018 and he was appointed as acting President of the Society from 04.09.2014 to 28.09.2015. However, the Society has not constructed the building in the land donated by the 2nd respondent herein, as it is not suitable for the construction of the building. Since, then, the 2nd respondent herein is insisting to give back the land gifted by him through registered gift deed dated 02.01.1989. When, the Society is not agreed for the same, the 2nd respondent herein filed W.P. No.13445 of 2000 in the common High Court at Hyderabad and the said Writ Petition was dismissed vide order dated 27.03.2003. The Court pleased to observe as follows:
“That the petitioner is not precluded from approaching the competent civil court, if so advised.”
The said order is filed as Exhibit P-3 in the Writ Petition.
5. After dismissal of the Writ Petition, during the tenure as President by the 2nd respondent for the 2nd term, he himself executed a registered revocation deed dated 21.09.2015 on behalf of the Society and he also signed on behalf of the Society in the capacity of Chief Executive Officer. The said fact of revocation of the gift deed came to the knowledge of the auditor of the Society and he submitted a report to the higher officials. The said report is filed as Exhibit P-7 in the Writ Petition. Then, the Joint Registrar of Cooperative Societies/ District Cooperative Officer, East Godavari District, Kakinada, vide proceedings in Rc.No.3774/2016-A, dated 17.01.2017, ordered an inspection under Section 52 of the Andhra Pradesh Cooperative Societies Act (hereinafter called the Act) into the affairs of th
