L.Subramani v. The Registrar of Tamilnadu Co-op Societies

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED:18-12-2009CORAMTHE HONOURABLE MR.JUSTICE N.KIRUBAKARANW.P.No.7226 of 2003L.Subramani... PetitionerVersus1.The Registrar of Tamilnadu Co-op Societies, 170 Periyar E.V.R.Road, Kilpauk, Chennai-600 010.2.The Special Officer, The Vaniyambadi Town Co-op Bank Ltd. Head Office, Flower Bazaar, Vaniambadi.3.The Sub-Registrar of Co-operative Society (Addl.Charge) Tirupattur. .... RespondentsWrit Petition filed under Article 226 of Constitution of Indiapraying for the issuance of Writ of Mandamus directing the secondrespondent to return the entire amounts of Rs.3,34,106/- togetherwith interest at 21% per annum collected from the petitioner underVijay Priya Cash Certificates in No.4059, 4057 and 4058. For Petitioner :Mr.V.LakshminarayananFor Respondents :Mr.R.Chandrasekaran for R2 Mr.P.Gurunathan Government Advocate for RR 1 and 3 ORDERThe petitioner has come forward before this court seekingmandamus to the respondentS to pay matured amount of Rs.3,34,106/-collected from the petitioner under Vijay Priya Cash CertificateNos.4059,4057 and 4058. 2.The case of the petitioner is that he is a mason andhaving account with the second respondent bank in S.B.A/c.No.11891.Under Vijay Priya Cash Certificate Scheme he deposited a sum ofRs.1,10,000/- and the second respondent issued two certificates forthe said amount for Rs.55,000/- each. Again on 10.2.1997 he also https://hcservices.ecourts.gov.in/hcservices/ deposited a sum of Rs.50,000/-, and in toto Rs.1,60,000/- wasdeposited. The maturity date of all these certificates were26.1.2002, 20.1.2002 and 16.2.2002 and the matured value of thecertificates are Rs.1,14,849/-, Rs.1,14,849/- and Rs.1,04,408/-.All the cash certificates were signed by the authorised officers ofthe second respondent bank. On presentation of the certificates onmaturity for getting refund of the matured value, the secondrespondent bank on verification informed the petitioner that a sumof Rs.60,000/- only was entered in to the books of the Bank.3.It is the further case of the petitioner that theofficials of the second respondent bank misappropriated the fundsof the depositors and the petitioner was compelled to make a policecomplaint on 6.3.2002 against the manager Kasi, SecretaryAdikesavan and Accountant Balasubramaniam of the second respondentbank. Subsequently he issued lawyer notice to the respondents topay the entire amount of Rs.3,34,106/-. The first respondent issuedsummon to the petitioner for enquiry on 4.5.2002 and the petitionersubmitted all the records. By proceedings dated 12.12.2002 thethird respondent initiated disciplinary proceedings under Section81 of the Tamill Nadu Co-operative Society Act against theemployees and assured the petitioner to pay the entire amount. Butas assured no amount was paid and hence the petitioner is beforethis court seeking refund of the maturity amount along with 21%interest per annum.4.The first respondent filed counter affidavit stating thatthe petitioner deposited only Rs.30,000/- on 20.1.1992 under theVijay Priya Cash Certificate Scheme and the maturity amount isRs.58,269/- and that since on the date of maturity the petitionerdid not turn up for receiving the matured amount, the amount wastaken into matured deposits account. It is stated that inconnivance with the petitioner, the officials of the secondrespondent altered the original deposit amount of Rs.30,000/- asRs.80,000/- and issued all the three certificates. It is furtherstated in paragraph 5 of the counter affidavit that a criminal casehas been registered in Crime No.8 of 2003 and the same is pendingtrial in the court of Judicial Magistrate-II, Vellore.It isfurther stated that till the criminal proceedings are disposed of,the amount remitted by the petitioner could not be paid.5.The second respondent filed his counter affidavit takingthe defence in the lines of the first respondent.6.Mr.V.Lakshminarayanan, learned counsel for the petitionersubmitted that the petitioner cannot suspect the bonafide of theofficials of the second respondent. He being a mason, deposited hishard earning money under the scheme and he had no occasion toindulge forgery in connivance with the bank officials, to whom he https://hcservices.ecourts.gov.in/hcservices/ deposited the amount and got the certificates and for which thepetitioner cannot be held liable and he is entitled to the amountalong with interest.7.Learned Government Advocate as well as learned counselfor the second respondent reiterated the contentions made in thecounter affidavit.8.Pursuant to the direction of this court, the entire filewith regard to the matter is produced before this court. A perusalof the enquiry officer's report under Section 81 of the Co-operative Societies Act would reveal that the petitioner deposedbefore the enquiry officer by way of an affidavit dated 21.5.2002stating that he deposited the amount with the bank. The findingsgiven by the enquiry officer is as follows:@ vdnt ,t;tprhuiz Fwpg;gpl;Ls;sgo Mtz';fis jpUj;jpa[k;bgha; fzf;F vGjpa[k; nkhro bra;J cs;sJ/ jpU/ .ghyRg;gpukzpad;kw;Wk; mtUf;F cle;ijahf ,Ue;J cs;s jpUthsh;fs; bgh/cwPjh;.rp/kzp. nfh/fhrp. v!;/Mjpnfrtd;. m/mg;Jy; k$pj;. jpUkjp/ kyh;bfho.vk;/Fg;g[rhkp Mfpnahh;fs; kPJk; ,e;jpa jz;lid rl;lj;jpy;Fwpg;gpl;Lss chpa gphpt[fs; fPH; Fw;w tHf;F bjhlu ghpe;Jiubra;fpnwd;@9.The aforesaid findings of the enquiry officer wouldreveal that the petitioner is no way involved in the allegedoffence and it is only the official against whom criminal case wasdirected to be filed.10.The Assistant Registrar passed an order under Section 81of the Co-operative Societies Act initiating surcharge proceedingsand passed orders dated 27.8.2003 against the officials of thesecond respondent and not against the petitioner. Therefore it isvery clear from the proceedings of the respondents that thepetitioner is no way involved in any of the offence.11.It is the case of the petitioner that he deposited a sumof Rs.1,60,000/- and for which three certificates were issued.Though the counter affidavit states the complicity for involvementof the petitioner, the records of the respondents reflect that nosuch things was against the petitioner.12.In any event if there is fabrication of documents andmisappropriation of funds by the officials of the society, it is"Indoor management" of the society and for which a third party likepetitioner cannot be denied his amount. https://hcservices.ecourts.gov.in/hcservices/

13.Moreover, the learned Government Advocate submits thatthe first accused and other accused were acquitted by the criminalcourt in Crime No.8 of 2003 on the file of the JudicialMagistrate-II, Vellore. Hence this court has to necessarily orderthe writ petition as prayed for. The petitioner has proved that hedeposited the amount and the respondent issued certificates and thematurity amount was not given for the three certificates. Withoutgoing into the maintainability of the writ petition against therespondents for refund of amount and directing the petitioner toavail alternative remedy by way of filing a suit against therespondent for recovery of money, this court directs the secondrespondent to pay the maturity value of Rs.3,34,106/- along with 9%interest from the date of maturity i.e. 29.2.2002 till realisation.The cash certificates matured as early as on 28.2.2002 and the writpetition was filed on 3.3.2003. This court will not be justified indirecting the petitioner to go before the civil court for filing asuit for recovery at this distance of time. Hence in the interestof justice this court issues writ of mandamus directing therespondents to pay the maturity value of the above certificatesalong with 9% interest from 28.2.2002 till ti is paid. 14.The writ petition is allowed. However there will be noorder as to costs. Sd/Asst.Registrar/true copy/Sub Asst.RegistrarTo:1.The Registrar of Tamilnadu Co-op Societies, 170 Periyar E.V.R.Road, Kilpauk, Chennai-600 010.2.The Special Officer, The Vaniyambadi Town Co-op Bank Ltd. Head Office, Flower Bazaar, Vaniambadi.3.The Sub-Registrar of Co-operative Society (Addl.Charge) Tirupattur.+1cc to Mr.V.Raghavachari, Advocate Sr 69906+1cc to Govt. Pleader Sr 69991KG(CO)km/24.2.W.P.No.7226 of 2003