Payment of the surcharge rendered proceedings ineffective, negating grounds for appeal.

Order

This Civil Revision Petition has been filed against the judgment of III Additional District and Sessions Judge Court at Cuddalore, Virudhachalam, dated 06.02.2025, wherein surcharge order of the respondent has been challenged.

2. Case of the petitioner is that he was selected as the President of the respondent Cooperative Society from 06.05.2013 to 05.05.2018. Alleging that the petitioner had misappropriated funds of the respondent Society, 1^st respondent ordered enquiry under Section 81 of the Tamil Nadu Cooperative Societies Act, 1983 and thereafter, Surcharge Officer issued a show cause notice on 02.07.2018. It is the further contention of the petitioner that without furnishing the enquiry report and the relevant documents and providing the opportunity of cross examination, the 1^st respondent had passed the surcharge order under Section 87 of the Tamil Nadu Cooperative Societies Act on 29.03.2019, directing the petitioner to pay a sum of Rs.1,73,522.50 with 18% interest. Against which, the petitioner has preferred an appeal under Section 152 of the said Act in CS-CMA.No.08/2019 before the Cooperative Tribunal. The Tribunal, vide order dated 06.02.2026, had dismissed the appeal. Aggrieved by the same, the petitioner has preferred the Civil Revision Petition.

3. Learned counsel for the petitioner states that though the petitioner paid the entire recovery amount and the 1^st respondent has filed a memo in that regard, the Tribunal had dismissed the Appeal, which is unsustainable in the eye of law and no adjudication has been made on merits and therefore prays for quashment of the impugned order.

4. Learned counsel appearing for the respondent also fairly submitted that the entire surcharge amount was paid and there is no due from the petitioner.

5. It is admitted fact that the members had paid the disputed amount pending appeal before the Cooperative Tribunal that too after initiation of surcharge proceedings and based on the memo filed to that effect, the Cooperative Tribunal has also dismissed the appeal. Since the entire amount has already been paid by the members to the Cooperative Society, no useful purpose would be served in quashing the impugned order as the said payment was not paid in protest. Therefore, the payment made has virtually made the surcharge proceedings ineffective at this stage and therefore, no order are required at this stage.

6. Hence, this Civil Revision Petition stands disposed of with the above observations.