Attachment under Section 167(2) of Tamil Nadu Cooperative Societies Act limited to property of person inquired under Section 87, not spouse.

ORDER

The petitioner is before this Court challenging the impugned order bearing C.E.P. No. 7/2009 dated 06.03.2009 and the proceedings bearing No. 3482/2022/SF dated 15.11.2022 issued by the first respondent. By the said proceedings, the immovable property belonging to the petitioner has been attached for the purpose of recovering dues from the deceased husband of the petitioner.

2. The petitioner’s husband, during his lifetime and while serving as Secretary of a Cooperative Society, was subjected to an order under Section 87 of the Tamil Nadu Cooperative Societies Act, 1983, whereby he was held liable for the alleged misappropriation of a sum of Rs.8,31,285/-. Based on the said order, recovery proceedings were initiated. In the course of such proceedings, an order under Section 167(2) of the Act was passed, conditionally attaching the property belonging to the petitioner.

3. Heard the learned counsel for the petitioner and the learned Additional Government Pleader appearing for respondents 1 and 2, and perused the materials available on record.

4. The surcharge proceedings were initiated against the husband of the petitioner, holding him liable to repay the amount allegedly misappropriated.

5. Admittedly, the subject property belongs to the petitioner and not to her husband, and the petitioner is not liable to discharge the said liability. Section 167 of the Tamil Nadu Cooperative Societies Act, 1983, deals with the furnishing of security or attachment of property in respect of any inquiry ordered into the conduct of any person under Section 87. It contemplates attachment where such person attempts to dispose of or remove from the jurisdiction of the Registrar any part of his property with the intention to defeat or delay the execution of any order that may be passed against him.

6. Therefore, an order of attachment can be made only in respect of the property of the person against whom the inquiry under Section 87 is conducted, and not against the petitioner, who is merely the wife of such person. Hence, the impugned conditional order of attachment passed under sub-section (2) of Section 167 of the Act lacks statutory authority.

7. Accordingly, this writ petition is allowed, and the impugned order bearing C.E.P. No. 7/2009 dated 06.03.2009 and the proceedings bearing No. 3482/2022/SF dated 15.11.2022 passed by the first respondent are hereby quashed. No costs. Consequently, the connected miscellaneous petitions are closed.