N.Selvaraj v. The Joint Registrar of Co-op. SocietiesCuddalore RegionRamadas Naidu StreetPudhupalayam, Cuddalore

IN THE HIGH COURT OF JUDICATURE AT MADRASDATED: 28.08.2009CORAM:THE HONOURABLE MR.JUSTICE V.DHANAPALANW.P.No.9628 of 2004N.Selvaraj ... Petitionervs.1.The Joint Registrar of Co-op. SocietiesCuddalore RegionRamadas Naidu StreetPudhupalayam, Cuddalore.2.The Special OfficerF.K.16, Uyakondaravi Primary Agricultural Co-op. Bank,Seplanatham post, Neyveli 2. ... RespondentsWrit Petition filed under Article 226 of the Constitution ofIndia praying for the issuance of a writ of certiorari to call forthe entire records relating to the impugned orders of Termination ofservice of the petitioner passed by the 2nd respondent in hisproceedings No.Nil, dated 27.2.2003 and quash the same. For Petitioner :Mr.C.Prakasam For Respondents:Mr.V.Viswanathan, Additional Government PleaderO R D E RThe prayer in the Writ Petition is to quash the impugned orderof termination of the petitioner's service passed by the secondrespondent in his proceedings No. Nil dated 27.2.2003.2.Heard the learned counsel appearing for the parties.3.The only question raised by the learned counsel for thepetitioner is that the Special Officer, who has passed the impugnedorder of termination is not the competent authority to pass such anorder and therefore, the order impugned in this Writ Petition is https://hcservices.ecourts.gov.in/hcservices/ liable to be set aside on the ground that the same was passed by anincompetent authority.4.To examine the above question, following are the relevantfacts which are necessary for consideration:The petitioner was appointed as Secretary in the SecondRespondent Society and he was working as such from 5.6.1986. It isstated that the said Society has been originally entrusted to theBoard of Directors duly elected and constituted in accordance withthe provisions of the Tamil Nadu Co-operative Societies Act(hereinafter referred to as the 'Act'), with effect from 1.11.1996and subsequently, the second respondent namely the Special Officerassumed charge with effect from 25.5.2001, duly appointed undersection 89 of the Act, who shall work under the control and directionof the first respondent namely the Joint Registrar of Co-operativeSocieties. While that being so, the first respondent has suspendedthe petitioner from service on 21.9.2000 as per the order of theGovernment issued in G.O.Ms.No.55 dated 24.3.2000 and subsequently, acharge memo was also issued alleging that the petitioner hascommitted certain irregularities and in respect of the maintenance ofaccounts. The petitioner has also submitted his explanation andthereafter an enquiry was conducted by the Special Officer and he haspassed the impugned order terminating the service of the petitionerwith effect from 27.2.2003. 5.According to the petitioner, the second respondent himselfhas conducted the enquiry and passed the impugned order oftermination without having any power to conduct such an enquiryagainst the Secretary as per the above Government Order. He claimsthat because of the previous enmity between himself and the SpecialOfficer, without enquiring into the real facts, Book of Accounts andother records, the Special Officer who is having control over thesaid accounts and in order to escape from the clutches of law, hasterminated the petitioner from service.6.Controverting the above facts pleaded by the petitioner,the respondent has filed a counter affidavit inter alia contendingthat the petitioner was working as Secretary since 5.6.1986 and hewas suspended from service with effect from 15.2.2000 to 10.3.2000for misappropriation of jewel loans and deposit loans to the tune ofRs.35,21,590.25, and hence he was terminated from service. Acriminal case in crime No.3 of 2002 has also been filed against thepetitioner and the same is pending on the file of learned JudicialMagistrate, Neyveli.7.It is further stated that the petitioner was suspended fromservice with effect from 21.9.2000 by the Joint Registrar of Co-operative Societies, however, the petitioner had given a wrong https://hcservices.ecourts.gov.in/hcservices/ information as if he was terminated from service for theirregularities committed by him in respect of maintaining the Booksof Accounts and without paying the subsistence allowance he wasterminated from service, but the petitioner was regularly paid thesubsistence allowance as per the Act. It is the further case of therespondent that the power of taking disciplinary action is in linewith the Government Order issued in G.O.Ms.No.55 dated 24.3.2000 andsince interim stay was granted by this Court in W.P.No.19892 of 2000dated 27.11.2000, against G.O.Ms.No.55 dated 24.3.2000, the actionof the respondent cannot be termed as arbitrary. 8.Since the above Government Order which speaks about thecommon cadre of service to the Secretaries of Primary AgriculturalCo-operative Banks was stayed by this Court, the Special Officer ofCo-operative Bank has got power to deal with the matters ofSecretaries in the Co-operative Societies. It is also submitted thata Division Bench of this Court, by its order dated 23.6.2003 hasobserved that the orders issued by the Government in G.O.Ms.No.55dated 24.3.2000 referred above are valid and sustainable andaccordingly dismissed the W.P.No.7081 of 2001 and batch of WritPetitions on 23.6.2003. Since the termination order came to bepassed as early as on 27.2.2003 i.e. well before upholding of theabove G.O., the Special Officer of the Second respondent Society hasgot power to take disciplinary action against the Secretaries of theBank.9.In this background, while examining the question involvedin this case, whether the Special Officer is competent to pass theimpugned order of termination in accordance with the Government Orderor not, is to be seen from the unreported decision of the DivisionBench of this Court in W.A.No.1284 of 2006 dated 13.12.2006. Therelevant portion of the order reads as follows:"11.As per Sub-section (3) of Section 75 of the Act andRegulation 3, a committee was to be constituted, but beforethat, in the middle of the year 2000, interim order of staywas passed by this Court in one or other case staying theoperation of the entire G.O.Ms.No.55 dated 24.3.2000.During the pendency of these cases, the State Governmentissued G.O.Ms.No.17 dated 23.1.2001 and the followingcommittee was constituted:-"The Cadre Authority shall be a Committee consisting ofthe following as provided in sub-section (3) of Section 75of the Tamil Nadu Co-operative Societies act, 1983 :-1.Managing Director or Special Officer as the case may be of the respective District Central Co-operative Bank.. Chairman https://hcservices.ecourts.gov.in/hcservices/

2.President of the concerned District Central Co-operative Bank..Member3.Vice-President of the concerned District Central Co-operative Bank..Member4.Regional Joint Registrar of Co- Operative Societies of the concerned region only ..Member5.President of the primary Agricultural Co-operative Bank with highest working .. Member capital10.A careful reading of the above decision of the DivisionBench Judgment of this Court would reveal that even if the GovernmentOrder referred above was stayed by this Court, it has been clearlystated that any action already taken on the basis of such GovernmentOrder cannot be treated to have been stayed and it was also madeclear that only an Officer in the rank of Joint Registrar isempowered to go into the matters relating to initiation ofdisciplinary proceedings as against the Secretaries of the Co-operative Banks and in the absence of any Rule, no officer below suchrank of the Special Officer can exercise the power of the Cadreauthority.11.At this juncture, the learned counsel on either side haveproduced a copy of the Government Order passed by the Government inG.O.Ms.No.122 Co-operation Food and Consumer Protection (CN1)Department dated 4.7.2008, indicating that the Government haveexamined the proposal of the Registrar of Co-operative Society inrespect of the appointment of the common cadre authority to takedisciplinary proceedings in respect of the post of Secretary ofPrimary Agricultural Banks. Following the decision of this Court inW.A.No.1284 of 2006, the G.O. made it clear that in respect of caseswhich are pending till the date of issue of the order, the cadreauthority shall continue to deal with such cases till itsfinalisation. 12.In the instant case, the order of termination has beenpassed on 27.2.2003 and admittedly at that time there was nointerim stay of the operation of the Government Order in G.O.Ms.No.55dated 24.3.2000. Therefore this Court has clarified the position inthe above Division Bench Judgment that even if the G.O. was stayed bythis Court and any action already taken on the basis of suchGovernment order, cannot be treated to have been stayed.13.In this case, admittedly the order of suspension was madeon 21.9.2000 by the Joint Registrar of Co-operative Societies, https://hcservices.ecourts.gov.in/hcservices/ thereafter the Special Officer has assumed the power, he hasconducted the enquiry and passed the termination order on 27.2.2003.It is to be seen that this Court has made it clear that even ifG.O.Ms.No.55 dated 24.3.2000 has been stayed by this Court, anyaction already taken on the basis of such Government Order cannot betreated to have been stayed. Since the second respondent namely theSpecial Officer assumes the power of the common cadre authority, hehas no power to continue the proceedings and accordingly the impugnedorder of termination is liable to be set aside.14.In the light of the above proceedings and the decision madeby this Court, the impugned order passed by the Special Officercannot be sustained and therefore, the order impugned in this WritPetition is set aside and the matter is remitted back to the CadreAuthority namely the Joint Registrar of Co-operative Societies todeal with the matter afresh and pass appropriate orders in accordancewith law and this exercise shall be completed within a period ofthree months from the date of receipt of a copy of this order.The Writ Petition is allowed with the above Direction. No Costs.rpa Sd/- Asst.Registrar/True Copy/ Sub.Asst.RegistrarTo1.The Joint Registrar of Co-op. SocietiesCuddalore RegionRamadas Naidu StreetPudhupalayam, Cuddalore.2.The Special OfficerF.K.16, Uyakondaravi Primary Agricultural Co-op. Bank,Seplanatham post, Neyveli 2.3. The Section Officer V.R. Section, High Court Madras.+ 1 cc to Government Pleader SR.43155+ 1 cc to Mr.C.Prakasam Advocate SR.43049,W.P.No.9628 of 2004 AKR(CO)EU 16.09.2009.