O R D E R

This civil revision petition is filed against the judgment and decree dated 23.12.2016 passed in CMA.No.4 of 2014 on the file of the Special Tribunal for Cooperative cases, Chennai (in the Court of Small Causes, Chennai) reversing the Surcharge order passed in Na.Ka.2664/98/Sa.Pa.1 dated 27.01.2014 on the file of the Deputy Registrar of Cooperative Societies (Non-credit) Chennai, the 2nd respondent herein, thereby set aside the surcharge proceedings passed by the second respondent herein.

2. The first respondent was Special Officer / Additional Registrar in the first respondent Society. The first respondent entered into agreement with M/s.Maxwell Exim Limited, M/s.Anderson Industries Limited and M/s.N.K.Foods Limited for procurement of raw cashes along with other commodities on 10.01.1996 for Rs.10 crores. Again, the first respondent entered into an agreement with them on 22.03.1996 for a sum of Rs.4.60 crores. As per the terms of agreement, the Tamil Nadu Cooperative Marketing Federation Limited was the supplier and the above said companies were purchasers. The Tamil Nadu Cooperative Marketing Federation Limited has to procure raw cashew nuts. During issuance and supplying the same to the aforesaid companies, M/s.Maxwell Exim Limited agreed to procure stock on particular date. In the said transaction, there were irregularities and malpractices committed by the Cooperative Marketing Federation Limited employees as such there was a loss to the tune of Rs.18,48,34,680.44/-. The first respondent recovered a sum of Rs.12,47,91,580.80/- and the net loss at Rs.11,81,41,388.26/- and five others were fixed liability at Rs.5,63,22,818.71/-. Initially enquiry was conducted under Section 81 of Tamil Nadu Cooperative Societies Act and in pursuant to the enquiry report, surcharge proceedings have been passed by the second respondent dated 27.01.2014. Aggrieved by the same, the first respondent filed appeal before the Special Tribunal for Cooperative cases, Chennai and the same was allowed and set aside the surcharge proceedings passed as against the first respondent herein. Aggrieved by the same, the petitioner herein filed the present civil revision petition.

3. The learned counsel for the petitioner would submit that the second respondent passed surcharge order against the first respondent dated 27.01.2014 to the tune of Rs.5,63,22,818.71/- whereas the Tribunal erred in holding that the loss only to the tune of Rs.3,84,10,368.30/- by the first respondent is in violation of By-law No.2 (12) of the petitioner's By-law and he entered into agreement for purchase of raw cashew nuts from non member of the petitioner's society. The detailed enquiry report was submitted under Section 81 of Tamil Nadu Cooperative Societies Act and accordingly, the second respondent passed surcharge order with reasons. The first respondent also violated GO.No.325 Cooperation, Food and Consumer Protection Department dated 15.04.1993. Without obtaining any prior permission from the Government, the first respondent entered into agreement for purchase of raw cashew nuts exceeding Rs.1,00,00,000/- with malafide intention. Therefore, the first respondent committed breach of trust and acted with wilful negligence and made payment. He also caused deficiency in the assets of the petitioner's society and as such the second respondent rightly passed surcharge order under Section 87 of Tamil Nadu Cooperative Societies Act. Likewise, he also entered into another agreement dated 22.03.1996 with M/s.Maxwell Exim Limited for supplying raw cashew nuts and thereby caused loss to the petitioner society and that too only by wilful negligence and malafide intention of the first respondent herein. By-law No.2 (12) clearly prohibits transaction with other members of the society and the first respondent wilfully entered into an agreement and caused loss to the tune of Rs.5,63,22,818.71/- Therefore, the first respondent and five others are liable for the loss caused to the petit