High Court · 2025

W.P.No.20945 of 2025 & 23475 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 26.08.2025CORAM:THE HONOURABLE MRS. JUSTICE N.MALAW.P.Nos.20945 and 23475 of 2025andW.M.P.Nos.23658, 23660 & 26340 of 2025R.Seerangan...Petitioner in W.P.20945 of 2025S.Senthilkumar...Petitioner in W.P.23475 of 2025-Vs-1.The Joint Registrar of Co-operative Societies Salem Region, Salem District.2.The Deputy Registrar of Co-operative Societies Omalur Circle, Omalur, Salem District3.The Co-operative Sub Registrar/ Field Officer/Enquiry Officer S.M.84, JSW Steel Employees Co-operative Thrift and Credit Society Ltd Pottaneri, Salem District. 4.The Administrator S.M.84, JSW Steel Employees Co-operative Thrift and Credit Society Ltd Pottaneri, Salem District. ...Respondents in both writ petitions1/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 2025Common Prayer: Writ Petitions filed under Article 226 of the Constitution of India, praying for the issuance of a direction in the nature of Writ of Certiorarified Mandamus, calling for the records from the second respondent in his Surcharge Notice Na.Ka.3143/2024 sa.pa. dated 29.05.2025 and quash the same insofar as the petitioner is concerned as illegal, arbitrary and unconstitutional. For Petitioner:Mr.I.Abbar Md Abdullah in W.P.20945/2025For Petitioner:Mr.A.M.Esakkiappanin W.P.23475 of 2025 In both petitionsFor R1 to R3:Mr.R.NeelakandanAdditional Advocate GeneralAssisted by Mr.M.MuthusamyGovernment AdvocateFor R4:Mr.P.S.Sivashanmugasundaram in W.P.20945/2025For R4:Mr.P.Gurunathanin W.P.23475/2025Additional Government Pleader C O M M O N O R D E RThese two writ petitions are filed challenging the impugned summons dated 29.05.2025, issued by the second respondent and to quash the same, insofar as the petitioners are concerned. 2/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 20252. As common issues of law and facts arise in both the writ petitions, they are disposed by this common order.3. The case of the petitioner in W.P.No.20945 of 2025 is that, he was appointed as Assistant Secretary/Manager in the Mecheri Primary Agricultural Cooperative Society, Salem District on 06.06.1983 and thereafter, he was promoted as Manager and Accountant in the said society on 01.08.1989. The petitioner was thereafter absorbed as Secretary in JSW Steel Employees Cooperative Thrift and Credit Society Ltd/fourth respondent, on 14.07.2006. Later, he was permitted to retire from service on 31.05.2019. Whileso, an enquiry was conducted under Section 81 of Tamil Nadu Co-operative Societies Act, by the second respondent and an order was passed on 25.04.2024. Based on the enquiry report, the second respondent issued the summons to the petitioner and others. In the summons issued to the petitioner, various acts of misappropriation committed by the petitioner resulting in loss of the Society's funds to the tune of Rs.11,99,38,365/- under thirteen heads for the period from 01.04.2013 to 31.03.2022, were mentioned. Aggrieved by the summons, the present writ petition is filed to quash the same. 3/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 20254. The case of the petitioner in W.P.No.23475 of 2025 is that, he was appointed as Appraiser under the fourth respondent on 16.08.2010 and thereafter, he was promoted as Computer Operator on 01.10.2015. Later, he was permitted to retire from service on 22.05.2024. Whileso, an enquiry was conducted under Section 81 of Tamil Nadu Co-operative Societies Act, by the second respondent and an order was passed on 25.04.2024. Based on the enquiry report, the second respondent issued the summons to the petitioner and others. In the summons issued to the petitioner, various acts of misappropriation committed by the petitioner resulting in loss of the Society's funds to the tune of Rs.11,99,38,365/- under thirteen heads for the period from 01.04.2013 to 31.03.2022 were mentioned. Aggrieved by the summons, the present writ petition is filed to quash the same. 5. The 4th respondent filed a detailed counter affidavit, in which it was stated that the petitioners had committed various acts of fraud resulting in heavy loss to the estate of the society. The respondents also stated that petitioners' rights were in no way infringed by the impugned summons. The respondents stated that the petitioners' endeavour was only to drag on the proceedings and therefore, prayed to dismiss both the writ petitions as 4/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 2025merit-less. 6. The main contention of the learned counsel for the petitioners' is that since the enquiry report dated 25.04.2024 of the 2nd respondent filed under Section 81 of the Tamil nadu Cooperative Societies Act, 1983, was not furnished to the petitioners, they were prejudiced in effectively contesting the matter. The learned counsel for the petitioners further submits that non-supply of the enquiry report amounts to violation of the principles of natural justice and also that surcharge proceedings initiated post retirement, were not maintainable. The learned counsel, hence prayed that the writ petitions be allowed.7.The learned counsel for the respondents on the other hand submitted that there was no bar in initiating surcharge proceedings under Section 87 of the Act, post retirement. The learned counsel for the respondents further submitted that the petitioners were adopting delaying tactics and therefore, the present writ petitions deserved to be dismissed.5/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 20258. Heard both sides. Perused the materials placed on record. With the consent of both counsels, the main writ petitions are disposed of.9. The main grievances of the petitioners' are that the enquiry report dated 25.04.2024, filed under Section 81 of the Act, was not supplied to the petitioners and that the initiation of the surcharge proceedings post retirement was impermissible in law. The respondents at the time of hearing, produced a copy of the enquiry report dated 25.04.2024, and handed over the same to the learned counsel for the petitioners. Hence, the grievance of the petitioners' regarding non-supply of the enquiry report was allayed. The further objection of the petitioners with respect to initiation of surcharge proceedings post retirement is concerned, in my view is answered by the Division Bench order of this Court dated 19.07.2024 in W.A No.884 of 2018. In the Division Bench of the judgment of the Madurai Bench of Madras High Court dated 19.07.2024 in W.A.No.884 of 2018, this Court held as follows:"On plain reading of Section 87 of the Act, it is very clear and it unambiguously declares that even against past employees, i.e., retired employees, initiation of surcharge 6/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 2025proceedings, which is not in the nature of disciplinary proceedings, is permissible". 10. Under the aforesaid facts and circumstances of the case and in view of the law laid down by the Hon'ble Division Bench in the aforesaid case, I find no merits in both the writ petitions. Accordingly, this Court directs the petitioners' to submit their explanation to the impugned summons, within a period of four weeks from the date of receipt of a copy of this order. On receipt of such explanation, the respondents, shall thereafter conduct the enquiry in accordance with law and pass appropriate orders. 11. In the result, both the writ petitions stand disposed of with the above observations and direction. No costs. Consequently, connected miscellaneous petitions are closed.26.08.2025umaIndex : Yes/NoSpeaking/Non Speaking order7/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 2025N.MALA, J.umaTo1.The Joint Registrar of Co-operative Societies Salem Region, Salem District.2.The Deputy Registrar of Co-operative Societies Omalur Circle, Omalur, Salem District3.The Co-operative Sub Registrar/ Field Officer/Enquiry Officer S.M.84, JSW Steel Employees Co-operative Thrift and Credit Society Ltd Pottaneri, Salem District. 4.The Administrator S.M.84, JSW Steel Employees Co-operative Thrift and Credit Society LTd Pottaneri, Salem District. W.P.Nos.20945 and 23475 of 2025and W.M.P.Nos.23658, 23660 & 26340 of 202526.08.20258/8

W.P.No.20945 of 2025 & 23475 of 2025IN THE HIGH COURT OF JUDICATURE AT MADRASDATED : 26.08.2025CORAM:THE HONOURABLE MRS. JUSTICE N.MALAW.P.Nos.20945 and 23475 of 2025andW.M.P.Nos.23658, 23660 & 26340 of 2025R.Seerangan...Petitioner in W.P.20945 of 2025S.Senthilkumar...Petitioner in W.P.23475 of 2025-Vs-1.The Joint Registrar of Co-operative Societies Salem Region, Salem District.2.The Deputy Registrar of Co-operative Societies Omalur Circle, Omalur, Salem District3.The Co-operative Sub Registrar/ Field Officer/Enquiry Officer S.M.84, JSW Steel Employees Co-operative Thrift and Credit Society Ltd Pottaneri, Salem District. 4.The Administrator S.M.84, JSW Steel Employees Co-operative Thrift and Credit Society Ltd Pottaneri, Salem District. ...Respondents in both writ petitions1/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 2025Common Prayer: Writ Petitions filed under Article 226 of the Constitution of India, praying for the issuance of a direction in the nature of Writ of Certiorarified Mandamus, calling for the records from the second respondent in his Surcharge Notice Na.Ka.3143/2024 sa.pa. dated 29.05.2025 and quash the same insofar as the petitioner is concerned as illegal, arbitrary and unconstitutional. For Petitioner:Mr.I.Abbar Md Abdullah in W.P.20945/2025For Petitioner:Mr.A.M.Esakkiappanin W.P.23475 of 2025 In both petitionsFor R1 to R3:Mr.R.NeelakandanAdditional Advocate GeneralAssisted by Mr.M.MuthusamyGovernment AdvocateFor R4:Mr.P.S.Sivashanmugasundaram in W.P.20945/2025For R4:Mr.P.Gurunathanin W.P.23475/2025Additional Government Pleader C O M M O N O R D E RThese two writ petitions are filed challenging the impugned summons dated 29.05.2025, issued by the second respondent and to quash the same, insofar as the petitioners are concerned. 2/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 20252. As common issues of law and facts arise in both the writ petitions, they are disposed by this common order.3. The case of the petitioner in W.P.No.20945 of 2025 is that, he was appointed as Assistant Secretary/Manager in the Mecheri Primary Agricultural Cooperative Society, Salem District on 06.06.1983 and thereafter, he was promoted as Manager and Accountant in the said society on 01.08.1989. The petitioner was thereafter absorbed as Secretary in JSW Steel Employees Cooperative Thrift and Credit Society Ltd/fourth respondent, on 14.07.2006. Later, he was permitted to retire from service on 31.05.2019. Whileso, an enquiry was conducted under Section 81 of Tamil Nadu Co-operative Societies Act, by the second respondent and an order was passed on 25.04.2024. Based on the enquiry report, the second respondent issued the summons to the petitioner and others. In the summons issued to the petitioner, various acts of misappropriation committed by the petitioner resulting in loss of the Society's funds to the tune of Rs.11,99,38,365/- under thirteen heads for the period from 01.04.2013 to 31.03.2022, were mentioned. Aggrieved by the summons, the present writ petition is filed to quash the same. 3/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 20254. The case of the petitioner in W.P.No.23475 of 2025 is that, he was appointed as Appraiser under the fourth respondent on 16.08.2010 and thereafter, he was promoted as Computer Operator on 01.10.2015. Later, he was permitted to retire from service on 22.05.2024. Whileso, an enquiry was conducted under Section 81 of Tamil Nadu Co-operative Societies Act, by the second respondent and an order was passed on 25.04.2024. Based on the enquiry report, the second respondent issued the summons to the petitioner and others. In the summons issued to the petitioner, various acts of misappropriation committed by the petitioner resulting in loss of the Society's funds to the tune of Rs.11,99,38,365/- under thirteen heads for the period from 01.04.2013 to 31.03.2022 were mentioned. Aggrieved by the summons, the present writ petition is filed to quash the same. 5. The 4th respondent filed a detailed counter affidavit, in which it was stated that the petitioners had committed various acts of fraud resulting in heavy loss to the estate of the society. The respondents also stated that petitioners' rights were in no way infringed by the impugned summons. The respondents stated that the petitioners' endeavour was only to drag on the proceedings and therefore, prayed to dismiss both the writ petitions as 4/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 2025merit-less. 6. The main contention of the learned counsel for the petitioners' is that since the enquiry report dated 25.04.2024 of the 2nd respondent filed under Section 81 of the Tamil nadu Cooperative Societies Act, 1983, was not furnished to the petitioners, they were prejudiced in effectively contesting the matter. The learned counsel for the petitioners further submits that non-supply of the enquiry report amounts to violation of the principles of natural justice and also that surcharge proceedings initiated post retirement, were not maintainable. The learned counsel, hence prayed that the writ petitions be allowed.7.The learned counsel for the respondents on the other hand submitted that there was no bar in initiating surcharge proceedings under Section 87 of the Act, post retirement. The learned counsel for the respondents further submitted that the petitioners were adopting delaying tactics and therefore, the present writ petitions deserved to be dismissed.5/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 20258. Heard both sides. Perused the materials placed on record. With the consent of both counsels, the main writ petitions are disposed of.9. The main grievances of the petitioners' are that the enquiry report dated 25.04.2024, filed under Section 81 of the Act, was not supplied to the petitioners and that the initiation of the surcharge proceedings post retirement was impermissible in law. The respondents at the time of hearing, produced a copy of the enquiry report dated 25.04.2024, and handed over the same to the learned counsel for the petitioners. Hence, the grievance of the petitioners' regarding non-supply of the enquiry report was allayed. The further objection of the petitioners with respect to initiation of surcharge proceedings post retirement is concerned, in my view is answered by the Division Bench order of this Court dated 19.07.2024 in W.A No.884 of 2018. In the Division Bench of the judgment of the Madurai Bench of Madras High Court dated 19.07.2024 in W.A.No.884 of 2018, this Court held as follows:"On plain reading of Section 87 of the Act, it is very clear and it unambiguously declares that even against past employees, i.e., retired employees, initiation of surcharge 6/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 2025proceedings, which is not in the nature of disciplinary proceedings, is permissible". 10. Under the aforesaid facts and circumstances of the case and in view of the law laid down by the Hon'ble Division Bench in the aforesaid case, I find no merits in both the writ petitions. Accordingly, this Court directs the petitioners' to submit their explanation to the impugned summons, within a period of four weeks from the date of receipt of a copy of this order. On receipt of such explanation, the respondents, shall thereafter conduct the enquiry in accordance with law and pass appropriate orders. 11. In the result, both the writ petitions stand disposed of with the above observations and direction. No costs. Consequently, connected miscellaneous petitions are closed.26.08.2025umaIndex : Yes/NoSpeaking/Non Speaking order7/8 https://www.mhc.tn.gov.in/judis W.P.No.20945 of 2025 & 23475 of 2025N.MALA, J.umaTo1.The Joint Registrar of Co-operative Societies Salem Region, Salem District.2.The Deputy Registrar of Co-operative Societies Omalur Circle, Omalur, Salem District3.The Co-operative Sub Registrar/ Field Officer/Enquiry Officer S.M.84, JSW Steel Employees Co-operative Thrift and Credit Society Ltd Pottaneri, Salem District. 4.The Administrator S.M.84, JSW Steel Employees Co-operative Thrift and Credit Society LTd Pottaneri, Salem District. W.P.Nos.20945 and 23475 of 2025and W.M.P.Nos.23658, 23660 & 26340 of 202526.08.20258/8