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2026 Supreme(Online)(AP) 9868

IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI

2026:APHC:27197

WRIT PETITION NO: 20247/2024

Between:

1. S K SAZID, S/O S.K. SAI BABA, AGED ABOUT 37 YEARS, R/O H.NO. 17-13-3, SEETHAMPETA, KRISHNA NAGAR, RAJAHMAHENDRAVARAM, EAST GODAVARI DISTRICT.

2. S.K.SINGH, S/O RAVINDRA KUMAR SINGH, AGED ABOUT 37 YEARS, R/O F.NO.29/16, APPM TOWNSHIP, MALLAYYAPETA, RAJAMAHENDRAVARAM, EAST GODAVARI DISTRICT.

...PETITIONER(S)

AND

1. THE STATE OF ANDHRA PRADESH, COOPERATION DEPARTMENT, SECRETARIAT BUILDING, SECRETARIAT, VELAGAPUDI, GUNTUR DISTRICT, REP. BY ITS PRINCIPLE SECRETARY.

2. THE SPECIAL CADRE DEPUTY REGISTRAR AND THE DISTRICT COOPERATIVE OFFICER, EAST GODAVARI DISTRICT, RAJAHMAHENDRAVARAM.

3. THE DIVISIONAL COOPERATIVE OFFICER, RAJAHMAHENDRAVARAM, EAST GODAVBARI DISTRICT.

4. THE ASSISTANT REGISTRAR AND ENQUIRY OFFICER, O/O DLCO, RAJAHMAHENDRAVARAM, EAST GODAVBARI DISTRICT

5. THE A P P MILLS EMPLOYEES MULTIPURPOSE COOPERATIVE SOCIETY, RAJAHMAHENDRAVARAM, EAST GODAVBARI DISTRICT, REP. BY ITS PIC.

6. CH SURESH, S/O VISHWANADHAM AGED ABOUT 60 YEARS, R/O FF-2, LAKSHMI PLAZA, TEACHERS COLONY, LALITHANAGAR, RAJAHMUNDRY, EAST GODAVARI DISTRICT.

7. TADI VENKATA SUBBARAO, S/O SURYANARAYANA, AGED 64 YEARS, OCC RETD EMPLOYEE OF A P P MILLS MULTIPURPOSE COOPERATIVE SOCIETY RAJAMAHENDRAVARAM R/O 122-1-595/6, S R SUGUNA HEIGHTS, FIAT NO 106, GANGINAVARI STREET,BESIDE SVR NIVAS, KATHERU, RAJAMAHENDRAVARAM URBAN, EAST GODAVARI DIST, ANDHRA PRADESH 533 105.

8. AMBULA VEERA VENKATA SRINIVAS, S/O LATE SAMBA MURTHY, AGED ABOUT 60 YEARS, OCC RETD EMPLOYEE OF A P P MILLS MULTIPURPOSE COOPERATIVE SOCIETY, RAJAMAHENDRAVARAM R/O 23-12-5/5A, SRIRAM NAGAR, RAJAHMUNDRY, EAST GODAVARI DISTRICT, ANDHRA PRADESH 533101.

9. PENDYALA VENKATESHWARA RAO, S/O SURYANARAYANA, AGED ABOUT 65 YEARS, OCC RETD EMPLOYEE OF A P P MILLS MULTIPURPOSE COOPERATIVE SOCIETY, R/O DOOR NO 23-20-32/7 ,1ST STREET, FOREST KALYANAMANDAPAM, EAST GODAVARI DIST, ANDHRA PRADESH533 101

10. ETTHAMSETTI LAKSHMIPATHI, S/O E ADINARAYANA, AGED 51 YEARS, OCC EMPLOYEE OF A P P MILLS MULTIPURPOSE COOPERATIVE SOCIETY, RAJAMAHENDRAVARAM, R/O 64-34-02/11, M S R NAGAR, KWARY MARKET, RAJAHMUNDRY, EAST GODAVARI DIST, ANDHRA PRADESH PIN 533 101

11. PALI UMAMESHWARARAO, S/O RAMULU ,AGED 63 YEARS, OCC RETIRED EMPLOYEE OF A P P MILLS MULTIPURPOSE COOPERATIVE SOCIETY, RAJAMAHENDRAVARAM, R/O HOUSE 4-1-88/1 ,WEAVERS COLONY, BEHIND NAGARAJA SCHOOL, KORUKONDA ROAD, RAJAHMUNDRY, EAST GODAVARI DISTRICT, ANDHRA PRADESH 533 101

12. PANDA SURESH KUMAR, S/O PANDA PANDA APPA RAO, AGED 54 YEARS , OCC REMOVED EMPLOYEE OF A P P MILLS MULTIPURPOSE COOPERATIVE SOCIETY, RAJAMAHENDRAVARAM, R/O 5-109, KATHERU, EAST GODAVARI DIST, ANDHRA PRADESH 533 105. RR 7 TO 12 ARE IMPLEADED AS PER THE COURT'S ORDER DT.28.10.2025 IN W.A.NO.1105 OF 2025.

...RESPONDENT(S)

TUESDAY, THE TWENTY FOURTH DAY OF MARCH TWO THOUSAND AND TWENTY SIX

PRESENT: THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY

Advocates:
For the Appellants/Petitioners: V V N Narayana Rao
For the Respondents: K V Rajendra Prasad, P Vara Prasad Rao, GP For Cooperation

The Registrar has the authority to initiate a suo motu enquiry into the affairs of a cooperative society under Section 51 of the A.P.C.S. Act, 1964, based on prima facie evidence of financial mismanagement, and such an enquiry is not subject to challenge via writ petition as it is an internal administrative process.

Headnote:(A) A.P. Cooperative Societies Act, 1964 - Section 51 - Enquiry into affairs of Society - Registrar’s suo motu power - Challenge to initiation of enquiry - Allegations of financial irregularities and mismanagement - Whether Registrar’s action was arbitrary.

(B) Writ petition - Locus standi - Whether Petitioners are aggrieved persons - Nature of Section 51 enquiry as preliminary/internal enquiry.

(C) Scope of Appellate Jurisdiction - Judicial review - Interference during pendency of enquiry proceedings.

Facts of the case:
The petitioners, members of a Cooperative Society, challenged the initiation of a statutory enquiry under Section 51 of the Act, alleging that the Registrar’s order was illegal, unconstitutional, and without jurisdiction. The respondents contended that the enquiry was necessitated by severe financial mismanagement, complaints from depositor-members, and the obstruction of an appointed Person-in-Charge.

Findings of Court:
The court observed that the Registrar possesses suo motu power under Section 51, and the exercise of such power was justified by a preliminary audit report indicating prima facie financial irregularities and the non-cooperative attitude of the outgoing management. The court further held that a Section 51 enquiry is merely an internal process that does not cause legal injury until substantive actions are taken under Section 60 of the Act.

Issues: Whether the initiation of the suo motu enquiry under Section 51 of the A.P.C.S. Act, 1964, was within the scope of the Registrar’s legal authority and whether the writ petition is maintainable at this stage.

Ratio Decidendi: The Registrar’s suo motu power to order an enquiry under Section 51 is valid upon satisfaction of prima facie evidence of mismanagement, and such administrative enquiries cannot be stalled by writ petitions, as affected parties have sufficient statutory remedies under Sections 60 and 76 once formal actions are initiated.

Result: Writ Petition dismissed.

Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the 2 respondent in ordering enquiry U/Sec.51 of the APCS Act, 1964 into the affairs of the 5 respondent society and appointing the 4th respondent as an enquiry officer through proceedings in Rc.No.444/2022/DCO-E, dated 13.08.2024 is highly illegal, arbitrary, unconstitutional, without jurisdiction, and contrary to Sub section 2 (xxii) of section 30 and section 51 of the A.P. Cooperative Societies Act 1964 and set aside the same and pass such other order.

IA NO: 1 OF 2024

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to stay of all further proceedings pursuant to the proceedings in Rc.No.444/2022/DCO-E, dated 13.08.2024 on the file of the 2nd respondent pending disposal of the writ petition and pass such other order.

IA NO: 1 OF 2025

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased may be pleased to vacate the interim orders dated 13-09-2024 passed in W.P.No.20247 of 2024 and dismiss the writ petition and pass such other order.

IA NO: 2 OF 2025

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to vacate the interim orders passed by this Hon'ble Court made in I.A.No.1/2024 in W.P.No.20247 of 2024, dated 13.09.2024, and pass such other order.

Counsel for the Petitioner(S):

1.V V N NARAYANA RAO

Counsel for the Respondent(S):

1.K V RAJENDRA PRASAD

2.P VARA PRASAD RAO

3.GP FOR COOPERATION

The Court made the following:

HON’BLE SRI JUSTICE NYAPATHY VIJAY

WRIT PETITION No.20247 of 2024

ORDER:

1. The present Writ Petition is filed questioning the action of Respondent No.2 in ordering enquiry under Section 51 of the Andhra Pradesh Co-operative Societies Act, 1964 (for short “the A.P.C.S. Act, 1964”) into the affairs of Respondent No.5-Society and appointing Respondent No.4 as an Enquiry Officer vide Proceedings in Rc.No.444/2022/DCO-E, dated 13.08.2024, as illegal and arbitrary.

2. The facts, in brief, are as follows;

The Petitioners have been working in A.P. Paper Mills, Rajamahendravaram and they are also members of Respondent No.5-Society. Respondent No.5-Society was established in the year 1968 and it is an un-aided society with about 700 members. It is stated that the aim and object of the society is to advance loans to the members, which will be reimbursed by the management of the A.P. Paper Mills after deducting the monthly instalments from the salaries of the members.

3. It is stated that the elections were conducted to Respondent No.5-Society in the year 2016 and one P. Rama Krishna, K.L.L. Raju and Petitioner No.3 were elected as President, Secretary and Vice-President respectively and they served as such for 2 1⁄2 years and thereafter Petitioner No.1 and Respondent No.2 were elected as President and Secretary respectively and they served for another period of 2 1⁄2 years.

4. It is stated that on 19.05.2021, the tenure of the elected managing committee of Respondent No.5-Society had completed and the Person-in-charge Committee was appointed, which was continued till 19.05.2024 and Respondent No.5-Society had collected deposits from the members of the society and had advanced loans to the needy members. The amounts so deposited by the members of the Society will be paid with interest after getting maturity of 3 years.

5. It is stated that A.P. Paper Mills had stopped recovering the EMIs from the employees, who had taken loans from the Society from the month of October, 2023. Respondent No.6, who was working as the Chief Executiv

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2026 Supreme(Online)(AP) 9868

Cases Referred (1)