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2022 DIGILAW 2685 (MAD)

C. S. Babu v. Joint Registrar of Co-operative Societies, Cuddalore

2022-08-12

C.SARAVANAN

body2022
JUDGMENT (Prayer: Writ Petition filed under Article 226 of Constitution of India, for issuance of a Writ of Certiorari to call for the impugned order of suspension passed by the first respondent in his proceeding Na.Ka.6129/2021Thu.Va.Tha.1 dated 05.04.2022 and quash the same.) 1. The petitioner has filed this writ petition for the issuance of a Writ of Certiorari to call for the impugned order of suspension passed by the first respondent in his proceeding Na.Ka.6129/2021Thu.Va.Tha.1 dated 05.04.2022 and quash the same. 2. The petitioner has challenged the impugned order of the second respondent/the Deputy Registrar Cooperative Societies dated 05.04.2022 bearing reference Na.Ka.No.6129/2021 Thu.Va.Tha. 1, suspending the petitioner for a period of three months by invoking the power under Section 76(A) of the Tamil Nadu Cooperative Societies, Act, 1983 which came to be inserted in the Act, by virtue of the Act No.13 of 2020 after it received the assent of the Governor on 25.02.2020. 3. The impugned order suspending the petitioner is challenged primarily on the ground that the petitioner an elected member/president of the Seraakuppam Primary Agricultural Cooperative Credit Society Limited was extending loans only to the members who were possessing separate patta as in case of default, it becomes difficult to recover the amount and therefore to avoid any surcharge proceedings under Section 87 of the Tamil Nadu Cooperative Societies Act, 1983, the loan was given to those who had requisite documents. 4. It is submitted that complaints were received against the petitioner, pursuant to which, an enquiry under Section 81 was ordered and an inspection under 82 was conducted and the report were also given as early as on 24.11.2021 by the Cooperative Sub-Registrar/full officer, pursuant to which, a proposal was given by the second respondent on 17.12.2021. 5. It is submitted that though these documents were generated, a Show Cause Notice was issued on 22.12.2021 seeking to invoking powers under Section 76(A) of the Tamil Nadu Cooperative Societies Act, 1983 to which the petitioner replied on 22.12.2021 and requested the respondents to furnish a copy of a report dated 24.11.2021 and the recommendations of the second respondent dated 17.12.2021. Instead of furnishing the above, the respondents proceeded to pass the impugned order dated 05.04.2022 by suspending the petitioner for a period of three months from 05.04.2022. 6. Instead of furnishing the above, the respondents proceeded to pass the impugned order dated 05.04.2022 by suspending the petitioner for a period of three months from 05.04.2022. 6. It is further submitted that invocation of Section 76-A of the Tamil Nadu Cooperative Societies Act, 1983 cannot be countenanced as it is an extraordinary power given to the Registrar to suspend an elected President or Vice President pending inquiry under Section 81 or inspection/investigation under Section 82 of the Act. 7. It is further submitted though an inquiry was ordered and a report was generated, it has not been furnished. It is therefore submitted there is no basis on which the proceedings under Section 76-A of the above said Act would have been initiated against the petitioner. 8. It is further submitted that the reasons given in the impugned order stating that the petitioner has not responded to earlier notice appears to be punitive though Section 76 is intended to preserve the evidence that may be against the petitioner. 9. That apart, it is submitted that the petitioner was placed under suspension for a period of three months from 05.04.2022 and that three months has already expired and therefore, the impugned order may be quashed by directing the respondent to allow the petitioner to function as the elected President of Serakuppam, Primary Agricultural Co-operative Credit Society Limited. 10. Opposing the prayer, the learned Additional Government Pleader for the respondents submits that the writ petition is without any merits as the petitioner has an alternate remedy under Section 152 of the Tamil Nadu Cooperative Societies Act, 1983. 11. That apart, it is submitted that there were several complaints received against the petitioner as the petitioner was sanctioning crop loan based on his whims and fancies to his kith and kin and refusing to extend the loan to other deserving persons by demanding illegal gratification and therefore there were large scale complaints against the petitioner. 12. It is submitted that the first respondent therefore requested the second respondent to conduct an enquiry in this regard. It is submitted that the second respondent in his Express Memorandum No.845/2021 Thovekukasa dated 20.11.2011 constituted a Team consisting of Cooperative Sub Registrar/Field Officer, Panruti and Anna Gramam with instruction to enquire and submit report. 13. 12. It is submitted that the first respondent therefore requested the second respondent to conduct an enquiry in this regard. It is submitted that the second respondent in his Express Memorandum No.845/2021 Thovekukasa dated 20.11.2011 constituted a Team consisting of Cooperative Sub Registrar/Field Officer, Panruti and Anna Gramam with instruction to enquire and submit report. 13. It is submitted that a report was submitted on 24.11.2021, wherein, it was reported that among the 16 members to whom loan has been given was only four members appeared for enquiry and gave deposition against the petitioner. 14. It is further submitted that the report is clear that the petitioner was demanding illegal gratification and therefore, the interim order deserves to be sustained. 15. That apart, it is submitted that the interim order precedes a Show Cause Notice dated 22.12.2021 bearing reference Na.Ka.No.6129/2021 "TAMIL" 1. However, the petitioner did not reply to the same, therefore, the respondents were left with no other option but to suspend the petitioner for a period of three months. Hence, it is prayed that the writ petition may be dismissed. 16. I have considered the arguments advanced by the learned counsel for the petitioner and the learned Additional Government Pleader for the respondents. 17. The invocation of power under Section 76-A of the Tamil Nadu Cooperative Societies Act, 1983 is intended with the purpose to preserve evidences or a person against whom inquiry under Section 81 or inspection/investigation under Section 82 or investigation into offences involving criminal mis-conduct or moral turpitude is contemplated. 18. Admittedly in this case, the enquiry was conducted and a report has been generated on 24.11.2021 and therefore the suspension of the petitioner could have been justified if it was given to the petitioner. That apart, it is to be invoked during the pendency of inquiry/inspection/investigation under Section 81 and 82 of the Cooperative Societies Act, 1983. 19. Section 76-A of the above said Act is not intended to punish a person against whom an inquiry or investigation is ordered. It is merely to ensure that the evidence are not destroyed by such person. 20. In the light of the above, I find no merits in suspending the impugned order. 19. Section 76-A of the above said Act is not intended to punish a person against whom an inquiry or investigation is ordered. It is merely to ensure that the evidence are not destroyed by such person. 20. In the light of the above, I find no merits in suspending the impugned order. However, I leave it open to the respondents to initiate appropriate proceedings under the provisions of the Tamil Nadu Cooperative Societies Act, 1983, based on the aforesaid report against the petitioner after furnishing copy of the Field Report and recommendations of the second respondent for suspending the petitioner preceded the issue of the show cause notice dated 22.12.2021. 21. The writ petition stands allowed with the above observations. No cost. Consequently, connected miscellaneous petitions are closed.