The High Court · 2025

Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the prrceedings vide CTA No.6 of 2021. on the file of Telangana Co- operative Tribural, at Warangal on d1.03.1 1.2023 against the petitioner, without any due process of law and pending disposal of the above writ petition. Counsel for thr: Petitioner : SRI K.BUCHI BABU Counsel for the Respondents No.1to5 : GP FOR COOPERATION Counsel forthe Respondents No.6&7 : -- Counsel forthe Respondents No.8 : SRI S.SURENDER REDDY W.P.No.31480 OF 2024 Between: Sri Goli. Raj,-'56yy2|. Rao, S/o.Gouraiah, Age. 58 years, Occ. Aqriculture, Ryo.Elk€thurthy Village and Mandal, Hanumakoida Distri6t (Erstwhite Waringai 1Uj District) PETITIONER AND

1. The Joint Registrar/District Cooperative Officer, Hanumakonda District. 2. The Deputy Registrar /Audit officer, o/o. District cooperative officer, warangar (u).District, Karimnagar District cooperative cenilai ai;k Lilit*i: Karimn agar, Karimnagar Districi.

3. The As;sistant Reoistrar /, Fierd..Kazpet circre / rnquiry officer, o/o.District Cooperative Office-r, WarangaLtUl OG[fCt.-

4. The Chief Executive Officer, Head Office of the Karimnagar District Cooperative Central Bank Limited, Karimnagar District.

5. The Deputy Registrar / Officer on Special Duty, Head Office of the Karimnagar District Cooperative Central Bank Limite<i, Karimnagar District. 6. The Assistant Registrar/Sale Officer, O/o. District Cooperative Officer, Hanumakona District.

7. The Branch Manager, the Karimnagar D.C. C. Bank Limited, Elkathurthy Branch at Elkathurthy, Warangal (U) District.

8. The Larg'e Sized Cooperative Society Limited, Elkathurthy, Warangal (U) District represented by its Chief Executive Officer.

9. The State of Telangna, Represented by its Principal Secretary, Agriculture and Cooperation Department Telangana Secretariat, Hyderabad. ...RESPONDENTS Petition under Article 226 of lhe Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to pass an order or orders one in the nature of WRIT OF MANDAMUS declaring to the proceedings EP.No.596|2O2O-21, 59812020-21 Form -7 of attachment of immovable property issued by the Joint Registrar/District Cooperative Officer i.e., the respondent no.'l without having any jurisdiction nor mentioning the proceeding of award and the respondent no.1 demand notice of Form-6 on dt.30.09.2024 and objection under rule 52 21 (A B C) submitted by the petitioner on d1.03.10.2024 without passing any order without having jurisdiction neither right to enquiry of the proceedings by the respondent no.3 i.e., The Assistant Registrar/lnquiry Officer without any delegation of powers by violating the G.O.Ms.No.1 Agriculture and Cooperative (Coop-ll) Department on dt.10.01.2024, as illegal and liable to set-aside by violation of article 300-A of Constitution of lndia arbitrary, unjust, discriminatory, in violation of principles of natural justice. lA NO: 1 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend the proceedings issued Form-7 vide EP.No.596/2020- 2'l and 59812020- 21 on d1.21.10.2024 before the respondent no.1 inspite of the demand notice of Form-6 on dt.30.09.2024 for objection submitted on dt.3.10.2024 without passing any orders by issuing of the attachment of the petitioner property by violating the G.O.Ms.No.1 Agiriculture and Cooperative (Coop-!l) Department on dt.10.01 .2024 for passing of erny awards/ surcharge by the respondent no.3, without any due process of law and pending disposal of the above writ petition. Counsel for the Petitioner : SRI K.BUCHI BABU counsel;for the, Respondents No.1to3,6 & g : Gp FoR coopERATtoN counsel for ther Respondents No.4,5&7 : M/s.sRlNlvAS poLAVARApu Counsel for thei Respondents No.8 : -- The Court made the following: COMMON ORDER THE HONOURABLE SMT. JUSTICE T. MADHAVI DEVI WRIT PETITTON NO.332s3 0F 2023 AND WRIT PETITION NO.3I48O OF 2024 COMMON ORDER W.P.No.33253 of 2023 has been filed seeking a Writ of Certiorari declaring the order of the Cooperative Tribunal at Warangal dt.03.11.2023 in C.T.A.No.6 of 2021 upholding the proceedings of respondent No.l, i.e., the Deputy Registrar of Cooperative Societies/District Cooperative Officer, Warangal Urban District in Rc.No.135312017-C dt.04.02.2021, as illegal and arbitrary and to consequently set aside the same and to pass such other order or orders.

2. W.P.No.3l480 of 2024 has been filed seeking a Writ of Mandamus declaring the proceedings in E.P.No.59612020-21 and E.P.No.59812020-21 in Form-7 of attachment of immovable property issued by the Joint Registrar/District Cooperative Officer, i.e., respondent No.1 without having any jurisdiction and without mentioning the proceedings of award and also the demand notice in W.P.Nos.33253 of 2023&31480 of 2024 2 Form-6 dt.30.09.2024 issued by respondent No.1 without considering the objection filed by the petitioner on 03.10.2024 under Rule 52(21)(a)(b)(c) of Telangana Cooperative Societies Rules and without any deleggation of powers under G.o.Ms.No.1, Agriculture and cooperati'ze (coop-ll) Department dt.10.01.2024, as illegal and arbitrary.

3. The petitioners in both these Writ Petitions are one and the same and brief facts leading to the filing of both these Writ Petitions are as

4. The petitioner rendered service as the President of respondent No.8 coc,perarive sociery from 05.02.2013 to 04.02.201g and according to the pe:titioner, a significant progress has been made in gamering of net profits during the said period. Subsequently, during the process of re-organisation of districts, Elkathurthy Mandal was taken away from Karimnzrgar District and was added to Warangal Urban District and since then, respondent No.l had control and regulatory powers over the society. However, the affiliation of the society did not undergo any change and the Karimnagar District Cooperative Central Bank Limited, Karimnagar continued to be the financing bank of the society. There was W.P.Nos.33253 of 2023&31480 of 2024 3 a physical verification of stocks of the society as on 30.09.2017 and certain irregularities and deficit in stocks of the society were noticed. Therefore, a special report was submitted in the matter. Thereafter, a preliminary enquiry was ordered to probe into the affairs of the society by appointing Sri V.Vijaya Bhaskar Reddy, Assistant Registrar/Audit, Office of the District Cooperative Officer, Warangal Urban as enquiry officer who conducted a preliminary enquiry and submitted his report recommending an enquiry under Section 5l of the Telangana Cooperative Societies Act, 1964 (for short, 'the Act'). Based on the said report, an enquiry was ordered under Section 5l of the Act duly authorising E. Venkateshwarlu, Assistant Registrar/Field, Kazipet Circle, Office of the District Cooperative Officer, Warangal Urban to conduct an enquiry into the affairs of respondent No.8 society. The enquiry under Section 5l of the Act was conducted and a report dt.04.06.2018 was submitted holding the petitioner herein and others as responsible f,or misappropriation of funds of the society to a total sum of Rs.2,51,55,550.14 and the petitioner individually was held to be responsible for a sum of Rs.9,18,500/-. Thereafter, a surcharge notice under Section 60(1) of the Act was issued and surcharge orders have been passed vide separate proceedings dt.04.02-2021 holding the ; I I I ;l il:I I I t I i I ! I i i I i i I : ! : :i 'I ! I I :I t I i t It n I t t. nt! a n It iI I I t t t 1 * s J ,; 1 i W.P.Nos.33253 of 2023&31480 of 2024 4 petitioner responsible for a sum of Rs.7,5 4,5001- and recovery of the said amount was ordered along with interest at l5Yo p.a. from the date of the misappropriation to the date of realisation and to restore the same to the funds of the society. Further, the petitioner and the CEO K.Vinay Kumar were jointly held responsible for a sum of Rs.1,45,56,850.51 along with interest. Challenging the same, the petitioner filed C.T.A.No.6 of 2021 before the Telangana Cooperative Tribunal at Warangal under Section 76(l) of the Act. The Tribunal, however, dismissed the appeal and against the same, w.P.No.33253 of 2023 has been filed.

5. Subsequently, a demand notice in Form-6 in E.P.No.596l z02o-zl for recovery of Rs.7,54,500/- and another demand notice in Form-6 in E.P.No.S)812020-21 for recovery of Rs.1,45,56,850.51 with further interest and other charges, both dt.30.09.2024, have been issued, to which the petitioner submitted his objections on 03 .10.2024. Thereafter, Form-7 dt.21.10.2024 in E.P.No.596/2020-21 has been issued to the petitioner for recovery of Rs.7,54,500/- and another Form-7 dt.21.10,2024 in E.P.No.598/2020-21 has been issued in respect of the petitione:r herein and also in respect of one Sri K.vinay Kumar, S/o W.P.Nos.332 53 of 2023&3t480 of 2024 5 Kommidi Prabhakar Reddy, i.e., the cEo of the society, for recovery of Rs'1,45,56,850.51. chailenging rhe above, w.p.No.3l4g0 of 2024 has been filed.

6. At the time of admission of w.p.No.3 r4g0 of 2024,rhis court, vide orders dt.l g.Lt.2024, has recorded the preriminary objection of the petitioner to the enquiry conducted under section 5l of the Act as we, as to the surcharge proceedings of respondent No.l that respondent No.l has no authority to initiate enquiry under section 5 r of the Act either under G'O'Ms.No.l0, Agricurture and cooperation (coop.Il) Department, dt.30.0r.2017 or under G.o.Ms.No.r, Agricurture s. cooperation (coop.Il) Department, dt.10.01 .2024. According to the leamed counser fbr the petitioner, the consequentiar surcharge proceedings as weil as issuance of Form-6 dt:300g.2024 andissuance of Form-7 dt'21'10'2024 are liable to be set aside. This court therefore was pleased to grant stay of a[ further proceedings pursuant to the notices in Form-6 dt.30.09.2024 and, Form-7 dt.2r.r0.2024 for a period of two weeks and thereafter, the interim order was extended from time to time till the matters have been heard.

7. The respondents have filed their counter affidavits. W.P.Nos.332 53 of 2023&31480 of 2024 n 6

8.Theflrrstandforemostobjectionofthewritpetitioneristhatvide G.o.Ms.No.10 dt.30.0 l.2Ol7 in respect of the District cooperative Central Banks, all powers of the Registrar under the Act, except those 1 l5'116' 116-A under Sections 4(2),17' 18' 32(7)'34' 50'64(t)' 77 '86' and116-CandthepowersoftheRegistrarunderRules4,|2,28,29, 34(14),3tt,41',45,59 and 68 of the Rules made under the Act' are detegated to the District collector; and in case of primary agricultural cooperatir,e societies, the powers of the Registrar under Sub-section (1) ofSectiorrll6-CoftheActaredelegatedtotheDeputyRegistrarof Cooperativesocieties/SpecialCadreDeputyRegistrars/JointRegistrar working as District cooperative officers' Therefore' according to the petitioner.,thesocietybeingaprimaryagriculturalcooperativesociety, thepowerofenquiryunderSection5loftheActhasnotbeendelegated and therr:fore, it could have been ordered only by the Registrar and not by the Jc'int Registrar as was done in this case'

9. Lr:arned counsel for the petitioner submitted that in response to Form-6 issued by the respondents, the petitioner has submitted his objections raising this very ground, but the respondents have not considered the same and have issued Form-7 as well' It is submitted that "rl W.P.Nos.332 53 of 2023&31480 of 2024 7 since there was a typographicar mistake in G.o.Ms.No.r0 dt.30.0 1.2017 in the delegation of powers, the respondents have issued G.o.Ms.No.l dt'10'01 .2024. Therefore, ar the rerevant poinr of time, when the enquiry under Section 5l of the Act was ordered, the authority did not have the power to do so and therefore, it is riabre to be set aside. r0. Learned Government preader for cooperation, on the other hand, submitted that originary, vide G.o.Ms.No.34, Food and Agricurture (coop.IV) Department, dt.rg.0r.rggg, the powers were deregated to the Joint Registrar, however, vide G.o.Ms.No.r0 dt.30.0 r.2017, there occurred a typographicar mistake and onry the powers of the Registrar under Section l l6-c of the Act were conferred on the Deputy Registrar of cooperative Societies. It is submitted that since there was some ambiguity as to whether the deregation of powers was in respect of the primary agriculturar cooperative societies as weil, to remove the ambiguity, G.o.Ms.No.r dt.r0.0 1.2024 has been issued and this was also necessitated due to the orders of this court in w.p.No .4010 0f 2024 dt'll'06.2024. It is further submitted that the petitioner has arso participated in the enquiry under section 5l of the Act and has not taken any objection at the rerevant point of time and therefore, he is estopped W.P.Nos'33253 of2023&31480 of2024 8 from taking su.ch an objection at this stage. Therefore' she submitted that should not be set aside' the impugned proceedings the rival contentions 11' Having; regardto this Court firrds that G'O'Ms'No'10 deregation .f powers to the departmentar dt'30'01'20t7 and the material on record' was with regard to the authorities in view of the reorganisa(ir)flofnewdistrictsandSerialNo2ofthenotification conferred on the Deputy Registrar mentions the powers of the Registrars ofCooperativeSocieties/SpecialCadreDeputyRegistrars/Joint RegistrarsworkingasDistrictCooperativeofficersinrespectof(i) DistrictC<loperativeCentralBanksandDistrictCooperativeMarketing Societies,(ii)otherDistrictLevetsocietiesandSocietieswhoseareaof operationextendstomorethanonedistrict,(iii)PrimaryAgricuttural Cooperati'vesocieties,(iv)UrbanBanksregulatedundertheBanking RegulationAct.InColumnNo.3ofthesaidnotification,thepowers deregaterl in respect of the District cooperative centrar Banks and District cooperative Marketing Societies and also other District Level and against the primary agriculural Societies are specifi carymentioned cooperativesocieties,itwasmentionedthatonlythepowersofthe Registrar: under Sub-section (l) of Section II6-C of the Act subject to t W.P.Nos.33253 of 2023&31480 of 2024 9 guidelines issued by the Registrar of Cooperative Societies are delegated.

12. In view thereof, this Court in W.P.No.4010 of 2024 has considered that G.O.Ms.No.l0 dt.30.01.2017 did not delegate the power of the Registrar under Sections 5l and 60 of the Act to the Joint Registrar and the learned Government Pleader for Cooperation had filed a counter affidavit and it was also recorded that the Government Pleader for Cooperation filed a counter affidavit submitting that there is a typographical error in the G.O. and that the powers are not delegated to the Cooperative Department officials in connection with the primary agricultural cooperative societies. It is noticed that soon after noticing the error, the Government has issued G.O.Ms.No.l dt.10.01.2024 conferring powers on the Deputy Registrar of Cooperative'societies for conducting enquiry under Section 5l of the Act into the affairs of the primary agricultural cooperative societies as well.

13. This Court finds that in this case, when the enquiry under Section 51 of the Act was ordered by the Deputy Registrar of Cooperative Societies, the powers for the same were not delegated to him by the Registrar under G.O.Ms.No.10 dt.30.01.2017. Consequently, the W.P.Nos.i325i of 202i&31480 of 2024 l0 enquiry unrjer Section 5r of the Act as welr as the surcharge proceedings thereunder are riable to be set aside with liberty to the respondents to initiate prc'ceedings under Section 5l of the Act afresh in accordance with law.

14. In v ew thereof, this court arso is of the considered opinion that the impugned enquiry under Section 5l of the Act and the consequential surcharge proceedings thereunder are not sustainabre. Therefore, they are both se:t aside with liberty to the respondents to conduct an enquiry into the affairs of the primary agricultural cooperative societies as per the provisions of the Act afresh.

15. Learned Standing counser for respondent No.g society has reried upon the fullowing judgments. (i) tligh court of Judicature at Bombay through its Registrar \zs. Shashikant S. Patil and anotherr. (ii) [lehari Prasad and others vs. state of Bihar2. (iii) Airports Authority of India vs. pradip Kumar Banerjee3. I fzooo; r scc 4t6 :(tee6) 2 scc 3r7 '2025 LawSui(SC) t59 : (2025)4 SCC I lt :2025AIR(SC) 1052 --1 t W.P.Nos.33253 of 2023&31480 of 2024 The said decisions are not applicable to this case. They are on merits of the case and are not applicable to the jurisdictional point raised by the petitioner which is being considered in this case.

16. Accordingly, W.P.No.33253 of 2023 is allowed with liberty to the respondents to conduct enquiry under Section 5l of the Telangana Cooperative Societies Act, 1964 afresh. No order as to costs.

17. In view of the orders in W.P.No.33253 of 2023, the consequential impugned orders in W.P.No.3l480 of 2024 are set aside. Accordingly, W.P.No.31480 of 2024 is allowed. No order as to costs.

18. In the result,- (i) W.P.No.33253 of 2023 is allorved with liberty to the respondents to conduct enquiry under Section 51 of the Telangana Cooperative Societies Act, 1964 afresh. No order as to costs. (ii) W.P.No.31480 of 2024 is allowed. No order as to costs.

19. Pending miscellaneous petitions, if any, in these Writ Petitions shal I stand cl g-s-g-d," witness rHE HoN:iliE inf cllEliUSiicE TpARESH KUMAR sINGH' on this Tuesday, f6el-oi-n6 O"V Oi f.f";;b;; T*o Thousand And Twenty Five /rRUE COPvr/ To, 1 The Deputy Registrar of Cooperative Warang'at (U) District' H.S. GOWRI SHANKAR SISTANT REGISTRAR SECTION OFFICER District Cooperative Officer, t t I f U i bistritt.'' Warangal (U) District. D istrict Ooo perativ-e Office r, Wara ng jl 2- The Der'uty Registrar /Audit officer, office of the District cooperative officer, 3' The Ass'istant Registrar I Field Kazpe.! Cgcle / lnquiry Officer, Office of the 4- Ir,q Deputy_.fqolslrar / officer on.speciat Duty, Head office of the Karimnagar District Cooperative Central aIn['limiteo,'xarimnagii'Slstrict. 5' The Ctrief Executive Officer, Head office of .the Karimnagar District 6' The Derputy Registrar /Audit Officer, O/o. District _Cooperative Officer, warangal (u) gls[rict, Kalpl.asar District 6;6;;tive cLnilar B;;i Limited, Karimnagar, Karimnagar Distric[. 7 ' The At;sistant Registrar/Sale Officer, O/o. District Cooperative Officer, cooperartive centrar Bank Limitbd, xarimnigii oLtrrct. Hanum:lkona DistriCt. I I Elkathurthy, Warangal (U) Distiict. B. The Ctrief Er-"9{,uq,,O..fti"S|,. l-arge Sized Cooperative Society Limited, 9' The Principal Secretary, Agriculture and Cooperation Department Telangana Secreta riat, Hyderabad.

10.One CC to SRt K.BUCHI BABU, Advocate. tOpUCI 11'Two Ccs to GP FoR CooPERATloN, High Court for the State of Telangana. 12-one cc to sRr S.SURENDER REDDY, Advocate. topucl 13.one cc to sRt sRtNtvAS poLAVARApu, Advocate. topucl 14.Two CD Copies. BSK BS HIGH COIJRT DATED:0,411112025 I \ ,1 \\t S c c) 0s ttB * -z * ORDER .No.33253 ot 2023 WP.No.3;1480 of 2024 ALLOWING THE WRIT PETITIONS WTHOT'T COSTS LL a