JUDGMENT

(Judgment of the Court was made by S.M.Subramaniam, J.)

Under assail is the writ order dated 19.04.2023 passed in W.P.No.18557 of 2015. Dharapuram Public Servants’ Co-operative Thrift and Credit Society Ltd., is the appellant before this Court. The first respondent instituted the writ petition challenging the order of termination, confirmed by the Revisional Authority under Section 153 of the Tamil Nadu Co-operative Societies Act, 1983, in Proceedings dated 29.05.2015.

FACTS IN BRIEF

2.The appellant is a Co-operative Society registered under the provisions of the Tamil Nadu Co-operative Societies Act, 1983 (hereinafter referred to as the “Act”). A statutory inspection under Section 82 of the Act was conducted by the Competent Authority of the Co- operative Society. Certain irregularities and allegations relating to misappropriation of funds of the appellant Society during the year 1995- 1997 was identified by the Inquiry Authority in their report dated 23.12.2005. Based on the inspection report under Section 82 of the Act, departmental disciplinary proceedings were initiated and a Charge Memorandum was issued on 12.02.2011. In between, the first respondent / employee of the appellant Society approached the High Court seeking copies of the enquiry / statutory reports submitted under Sections 81 and 82 of the Act. In the said writ proceedings, interim orders were passed and after disposal of the said writ proceedings, Charge Memorandum was issued on 12.02.2011.

2.1.A domestic enquiry was conducted and the first respondent participated in the process of enquiry and defended his case. The Inquiry Officer submitted his final report on 13.07.2011. Along with the enquiry report, a show cause notice was issued to the first respondent, seeking further explanation as to why he should not be terminated from service. The first respondent submitted his explanation. The misappropriation of the funds along with interest calculated at Rs.1,22,876.30 was repaid by the first respondent. However, accepting the findings of the enquiry report that the charges are held proved against the first respondent, an order of dismissal from service was issued by the Special Officer / Disciplinary Authority vide Proceedings dated 11.08.2011. Simultaneously, a criminal case was also registered in Crime No.3 of 2011 on the file of the Inspector of Police, District Crime Branch, Tiruppur. The criminal case registered is still pending.

2.2.The first respondent preferred a Revision Petition under Section 153 of the Act challenging the order of dismissal dated 11.08.2011. The Joint Registrar of Co-operative Societies, Tiruppur Region, vide order dated 03.05.2013 remanded the matter back to the appellant Society with a direction to issue a fresh show cause notice on the findings of the domestic Inquiry Officer and afford opportunity to the first respondent and thereafter, pass appropriate orders within a period of two months. The first respondent was reinstated into the appellant Society subject to the outcome of the pending departmental disciplinary proceedings. A show cause notice was issued in pursuance of the order of the Joint Registrar of Co-operative Societies, Tiruppur Region. The first respondent submitted his explanation. Final order was passed imposing the penalty of increment cut by two years by Board Resolution dated 28.09.2013.

2.3.Not accepting the Resolution of the Board, some of the Board of Directors raised a serious complaint against the conduct of the departmental disciplinary proceedings and the irregularities committed by the President of the Board. They have urged the Registrar of Co- operative Societies to initiate suo motu revision under Section 153 of the Act, against the order of reinstatement and imposing the penalty of cut in increment for two years, by the Board of the appellant Society.

2.4.The Registrar of Co-operative Societies considered the allegations raised by the Board of Directors and passed an order vide Proceedings dated 04