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2025 Supreme(Online)(Tel) 35832

IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
T. Madhavi Devi, J
Maddineni Ramesh – Appellant
Versus
State of Telangana – Respondent
WRIT PETITION NO. 15677 OF 2024|WRIT PETITION NO. 20925 OF 2024



A Writ of Mandamus can be issued to command statutory authorities to finalize proceedings arising from enquiry reports under the Cooperative Societies Act, even if the petitioner has technical lapses in disclosing prior litigation, provided the state's failure to act on findings of mismanagement is evident.

Headnote:(A) Telangana Cooperative Societies Act, 1964 - Sections 34, 51, 60, 61 - Writ Petition - Maintainability - Suppression of material facts - Court exercise of equitable jurisdiction - Writ court must come with clean hands - If applicant withholds relevant legal proceedings, he is not entitled to relief - However, technical deficiencies shouldn't obstruct administrative accountability regarding statutory enquiry reports. (Paras 24, 25)

(B) Writ of Mandamus - Inaction of authorities - Performance of statutory duty - Court's power to intervene when enquiry reports regarding cooperative society mismanagement remain unaddressed by the Registrar - Direction given to take action expeditiously. (Paras 14, 25)

Facts of the case:
Petitioner filed writ petitions seeking supersession of the Managing Committee of a Cooperative Society due to alleged irregularities, misappropriation of funds, and improper member induction. Petitioner sought directions for authorities to act on an enquiry report conducted under Section 51 of the Act. Respondent society alleged that petitioner suppressed previous litigation and failed to exhaust alternative remedies under Section 61 of the Act.

Findings of Court:
While the petitioner failed to disclose every related litigation, the Court found the core grievance regarding the lack of action on statutory enquiry reports justified. The Court directed state authorities to conclude the required actions and decision-making processes regarding the society's management within fixed timelines.

Issues: Whether the inaction of the Registrar of Cooperative Societies regarding the Section 51 enquiry report constitutes a failure in statutory duty; whether suppression of material facts bars the petitioner from obtaining equitable relief.

Ratio Decidendi: Though the writ court is equitable and discretionary and requires full disclosure of facts to prevent abuse of process, a minor failure in disclosure does not preclude the court from directing authorities to perform their clear statutory obligations, especially when enquiry reports into cooperative society mismanagement remain pending for extended periods.

Result: Both Writ Petitions disposed of with directions to the authorities to take necessary action within prescribed periods.

Table of Content
1. mandamus for statutory action against mismanaged cooperative societies. (Para 1 , 2 , 3 , 4)
2. alternative remedies and existence of ongoing surcharge proceedings. (Para 5 , 6 , 7 , 8 , 9 , 10 , 11)
3. court's discretion in ordering timely closure of statutory complaints. (Para 12 , 13 , 14 , 15)
4. statutory obligations following section 51 enquiry reports. (Para 16 , 17 , 18 , 19)
5. doctrine of clean hands and consequences of material suppression. (Para 20 , 21 , 22 , 23 , 24 , 25)

COMMON ORDER

W.P.No.15677 of 2024

In W.P.No.15677 of 2024, the petitioner is seeking a Writ of Mandamus declaring the inaction of respondents No.2 and 3 against the Managing Committee of respondent No.4 society under Section 34 of the Telangana Cooperative Societies Act, 1964 (for short, ‘the Act’) in spite of the petitioner’s representations dt.28.05.2024 and 01.06.2024, as illegal, arbitrary, unconstitutional and in violation of the provisions of Section 34 of the Act and the bye-laws of respondent No.4 society and in violation of principles of natural justice and to consequently direct respondents No.1 to 3 to suspend/supersede the managing committee of respondent No.4 society and to appoint an official administrator to conduct fresh elections by convening general body meeting and to scrutinise the names of the valid members in the list of the electoral college of respondent No.4 society and to pass such other order or orders.

2. Brief facts leading to the filing of W.P.No.15677 of 2024 are that respondent No.4 society was established and registered under Regd.No.TBC-608 and was initially formed with 4213 members who are all involved in film industry including movie directors, producers and artists. The Government of Andhra Pradesh allotted Ac.67.16 guntas of land in favour of respondent No.4 society in the year 1994 and the allotment of flats and row houses was made by the Committee consisting of 5 members. The petitioner claims to be one of the members of the society. It is stated that the society has later admitted 584 members as on 31.03.2022, although 422 members were already on waiting list for allotment of housing units and that this led to so many irregularities in the society in the allotment of plots. It is further submitted that the Divisional Cooperative Officer, Hyderabad (West), Ranga Reddy, vide Rc.No.557-2003-H, dt.17.02.2016, had directed respondent No.4 society to prepare a list of such members who surrendered and transferred their allotted flats and to remove their membership from the society as per the provisions of the bye-laws and the Act and Rules and to take necessary action and place the action taken report in the matter within 30 days from the date of receipt of the said letter. However, respondent No.4 society failed to take necessary action. It is submitted that the petitioner and others have brought to the notice of respondents No.2 and 3 various irregularities being committed by respondents No.4 and 5, but respondents No.2 and 3 have not taken any action thereon. It is submitted that the District Cooperative Officer, Ranga Reddy District, vide Rc.No.2128/2017-H dt.15.12.2022, had directed respondent No.4 not to deviate from the original allotments made by the Five Men Committee and to cancel all irregular allotments made by the society and also not to register any housing units without getting clearance from the District Cooperative Officer, Ranga Reddy District and that the Sub-Registrar, Vattinagulapally was also requested not to register the units until the clearance of the District Cooperative Officer, Ranga Reddy District was given. It is submitted that some of the members of the society approached this Court by filing W.P.No.46502 of 2022 and batch to issue a Writ of Mandamus against respondent No.4 society to supersede the Managing Committee of the society and this Court was pleased to dispose of the said Writ Petitions by directing respondents No.2 and 3 therein to verify the flats/units

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