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2026 Supreme(Online)(Mad) 33076

IN THE HIGH COURT OF JUDICATURE AT MADRAS
Hemant Chandangoudar, J
P.Maran – Appellant
Versus
The Deputy Registrar of Co-operative Society, Periyakulam, Theni District – Respondent


Advocates:
For the Appellants/Petitioners: Mr.R.Suriya Narayanan
For the Respondents: Mr.P.Subbaraj, Special Government Pleader

Table of Content
1. surcharge initiated for improper loan disbursement causing loss. (Para 2 , 3 , 8 , 9)
2. petitioner argues no willful negligence; respondent defends procedure violation. (Para 4 , 6 , 10)
3. willful deficiency finding mandatory for surcharge validity. (Para 11 , 12)
4. orders quashed for lacking willful negligence finding. (Para 13)

ORDER

The petitioner challenges the order dated 11.10.2013 passed by the learned Principal District Judge, Theni, in C.M.A.(C.S) 4/2008 confirming the order dated 16.10.2007 wherein Na.Ka.No.2152/2005/S.R. dated 16.10.2007 passed by the first respondent.

2. Based on the investigation conducted under Section 81 of the Tamilnadu Cooperative Societies Act, 1983 , surcharge proceedings were initiated against the petitioner and others under Section 87 of the Tamilnadu Cooperative Societies Act. Alleging that the petitioner was serving as Managing Director along with other had sanctioned loan and disbursed the same to P.S.Syed Sultan Ibrahim, a member of the Society without following the procedure prescribed under the Act and Rules.

3. The respondent authority, after hearing the petitioner, written the finding that there was a dereliction of d

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