Madras High Court · 2025

C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 1.The District Registrar /Deputy Director of Industries and Commerce(Industrial Co-operative Societies),Guindy, Chennai - 600 032.2.The Supervisor of Industrial Co-operatives / ArbitratorO/o. The Deputy DirectorIndustrial Co-operatives Societies,Chennai - 600 032.3.The Tamil Nadu Industrial Co-operative Bank Ltd.,Alwarpet Branch,No.28, Eldams Road,Chennai - 600 018.4.V.Venkatesh ... Respondents in CRP.No.714 of 2020Prayer in CRP.No.662 of 2020: Civil Revision Petition filed under Article 227 of Constitution of India to set aside the award dated 20.04.2015 passed in ARC 259/IC3/2014 on the file of the first respondent and confirmed by the decree and judgment dated 03.07.2017 passed in CMA No.14 of 2015 on the file of the Chief Small Causes Court, Chennai.Prayer in CRP.No.666 of 2020: Civil Revision Petition filed under Article 227 of Constitution of India to set aside the award dated 20.04.2015 passed in ARC 254/IC3/2014 on the file of the first respondent and confirmed by the decree and judgment dated 03.07.2017 passed in CMA No.11 of 2015 on the file of the Chief Small Causes Page 6 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 Court, Chennai.Prayer in CRP.No.671 of 2020: Civil Revision Petition filed under Article 227 of Constitution of India to set aside the award dated 20.04.2015 passed in ARC 258/IC3/2014 on the file of the first respondent and confirmed by the decree and judgment dated 03.07.2017 passed in CMA No.7 of 2015 on the file of the Chief Small Causes Court, Chennai.Prayer in CRP.No.674 of 2020: Civil Revision Petition filed under Article 227 of Constitution of India to set aside the award dated 20.04.2015 passed in ARC 257/IC3/2014 on the file of the first respondent and confirmed by the decree and judgment dated 03.07.2017 passed in CMA No.12 of 2015 on the file of the Chief Small Causes Court, Chennai.Prayer in CRP.No.681 of 2020: Civil Revision Petition filed under Article 227 of Constitution of India to set aside the award dated 20.04.2015 passed in ARC 254/IC3/2014 on the file of the first respondent and confirmed by the decree and judgment dated 03.07.2017 passed in CMA No.13 of 2015 on the file of the Chief Small Causes Court, Chennai. Prayer in CRP.No.689 of 2020: Civil Revision Petition filed under Page 7 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 Article 227 of Constitution of India to set aside the award dated 20.04.2015 passed in ARC 261/IC3/2014 on the file of the first respondent and confirmed by the decree and judgment dated 03.07.2017 passed in CMA No.5 of 2015 on the file of the Chief Small Causes Court, Chennai.Prayer in CRP.No.690 of 2020: Civil Revision Petition filed under Article 227 of Constitution of India to set aside the award dated 20.04.2015 passed in ARC 254/IC3/2014 on the file of the first respondent and confirmed by the decree and judgment dated 03.07.2017 passed in CMA No.6 of 2015 on the file of the Chief Small Causes Court, Chennai.Prayer in CRP.No.693 of 2020: Civil Revision Petition filed under Article 227 of Constitution of India to set aside the award dated 20.04.2015 passed in ARC 254/IC3/2014 on the file of the first respondent and confirmed by the decree and judgment dated 03.07.2017 passed in CMA No.8 of 2015 on the file of the Chief Small Causes Court, Chennai.Prayer in CRP.No.713 of 2020: Civil Revision Petition filed under Article 227 of Constitution of India to set aside the award dated 20.04.2015 passed in ARC 260/IC3/2014 on the file of the first Page 8 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 respondent and confirmed by the decree and judgment dated 03.07.2017 passed in CMA No.9 of 2015 on the file of the Chief Small Causes Court, Chennai.Prayer in CRP.No.714 of 2020: Civil Revision Petition filed under Article 227 of Constitution of India to set aside the award dated 20.04.2015 passed in ARC 250/IC3/2014 on the file of the first respondent and confirmed by the decree and judgment dated 03.07.2017 passed in CMA No.10 of 2015 on the file of the Chief Small Causes Court, Chennai.In all CRPs: For Petitioner : Mr.R.Sankarasubbu For R1 to R3 : Mr.M.Palanimuthu COMMON ORDERThe petitioner is the same in all civil revision petitions. The facts and the issues raised are also identical. Therefore, the civil revision Page 9 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 petitions are disposed of by this common order.2. The brief facts of the case in nutshell are as follows :2.1. The petitioner states that as a member of the society, namely Chennai Anna Tanker and Mini Lorry Owners Service Industrial Co-operative Society, registered under Tamil Nadu Co-operative Societies Act, 1983, he availed an overdraft facility - ROD (Regular Overdraft Due) from the third respondent bank, for an amount of Rs.1,00,000/- to modify his vehicle to suit the need of the Metro Water Development Authority and to participate in a tender for water supply in the city. 2.2. The petitioner states that in order to secure the loan, the petitioner mortgaged his property by deposit of title deed vide registered Document No.1421 dated 16.04.2003. The petitioner states that in addition, the third respondent bank obtained the signatures of the petitioner in printed forms, blank white papers including non-judicial stamp papers, and since the petitioner is uneducated he signed all the papers. The petitioner further states that the loan was repayable within Page 10 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 one year with extension facility from year to year based on performance.2.3. The petitioner further states that as per the agreement, the Metro Water Development Authority, was bound to deduct the amounts periodically out of the service charges payable to him and remit the same to the third respondent bank. The petitioner states that since the Metro Water Development Authority did not award the tender during the relevant year, to him, he was unable to repay the loan.2.4. The petitioner states that whileso, the third respondent raised a dispute before the first respondent under Section 90 of the Tamil Nadu Co-operative Societies Act, 1983. In the arbitration case, the third respondent bank claimed a sum of Rs.1,63,723/- with interest at the rate of 18% per annum. 2.5. The petitioner states that, to his shock and dismay he was also served a notice of arbitration with regard to similar ROD facilities availed by the nine other persons. On enquiry the petitioner came to Page 11 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 understand that the said notice was issued to him as guarantor for nine other persons, who failed to repay the loan. The petitioner further states that during the pendency of the arbitration proceedings, the third respondent bank tried to sell the petitioner's mortgaged property in a public auction and therefore, the petitioner filed W.P.No.23856 of 2008, before this Court. In the said writ petition, this Court granted Interim stay of public auction on condition of deposit of 50% of the claim amount, which the petitioner deposited with the third respondent bank. 2.6. The petitioner further states that during the pendency of the writ petition, the arbitrator passed an ex parte award on 13.06.2009, which the petitioner challenged in appeal before the Co-operative Tribunal in C.M.A.Nos.16 to 24 of 2011. The Co-operative Tribunal found that no reasonable opportunity was given to the petitioner and therefore allowed the appeals on 30.08.2012, by remanding the matter for fresh consideration. 2.7. The petitioner states that in view of the order passed in Page 12 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 C.M.A.Nos.16 to 24 of 2011, the writ petition in W.P.No.23856 of 2008, was dismissed. The petitioner states that at the time of disposal of the writ petition, he was directed to pay the balance 50% of the claim amount, as a condition to stay the sale of the mortgaged property, during the pendency of the arbitration. Accordingly, the petitioner deposited the balance 50% of the claim amount. The petitioner states that the third respondent bank for the reasons best known to it abandoned the earlier arbitration proceedings and initiated fresh arbitration proceedings in ARC.Nos.250, 254 to 261/IC3/2014. 2.8. On 20.04.2015, the arbitrator passed an award in the aforesaid arbitration cases directing the petitioner to pay a sum of Rs.4,00,934/- with further interest at the rate of 15% per annum, along with 3% penal interest and other expenses from 01.12.2014 within 60 days from receipt of the order. The petitioner challenged the award of the Arbitrator in civil miscellaneous appeal in C.M.A.Nos.5 to 14 of 2015 before the Special Tribunal for Co-operative Cases, Small Causes Court, Chennai. The Special Tribunal dismissed the C.M.A.Nos.5 to 14 of 2015. Page 13 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 Aggrieved over the orders passed in C.M.A.Nos.5 to 14 of 2015, the petitioner has filed the civil revision petitions. 3. Heard both sides4. The learned counsel for the petitioner submitted that the appellate tribunal did not consider any of the points raised by the petitioner in the grounds of appeal in CMAs. The learned counsel submitted that the order of the Tribunal reflects total non application of mind, by the presiding officer of the Co-operative Tribunal to any of the grounds raised by the petitioner which has resulted in grave miscarriage of justice. The learned counsel therefore submitted that the impugned orders of the Co-operative Tribunal were ex facie illegal and deserved to be set aside.5. Though the respondent has filed a detailed counter, this Court considers it unnecessary to traverse the same, having regard to the nature of the order that is presently being passed.Page 14 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 6. Upon a perusal of the orders passed in C.M.A.Nos.5 to 14 of 2015, it is manifest that the presiding officer has failed to consider any of the grounds urged by the petitioner in the said CMAs. As rightly contended by the learned counsel for the petitioner, the Tribunal has not adverted to the evidence on record and findings recorded therein disclose a clear case of non-application of mind. Consequently, I am of the considered opinion that the impugned order is unsustainable in law and is liable to be set aside. The matter is therefore remitted to the file of the Special Tribunal for fresh consideration in accordance with law. 7. On such remand, the Special Tribunal shall consider all the grounds raised by the petitioner in CMAs and pass a reasoned and speaking order. Having regard to the fact that the matter is pending for over a decade, the Special Tribunal is directed to dispose of all the CMAs within a period of three months from the date of receipt of a copy of this order.Page 15 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 8. Accordingly, these Civil Revision Petitions are disposed of. No costs. Consequently, connected Civil Miscellaneous Petitions are closed.23.09.2025Index: Yes/NoInternet: Yes/NoSpeaking/Non-Speaking ordermtlTo1.The District Registrar /Deputy Director of Industries and Commerce(Industrial Co-operative Societies),Guindy, Chennai - 600 032.Page 16 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 2.The Supervisor of Industrial Co-operatives / ArbitratorO/o. The Deputy DirectorIndustrial Co-operatives Societies,Chennai - 600 032.3.The Tamil Nadu Industrial Co-operative Bank Ltd.,Alwarpet Branch,No.28, Eldams Road,Chennai - 600 018. N.MALA, J.mtl Page 17 of 18 https://www.mhc.tn.gov.in/judis C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 C.R.P.Nos.662, 666, 671, 674, 681, 689, 690, 693, 713 and 714 of 2020and C.M.P.Nos.3433, 3462, 3498, 3481, 3536, 3575, 3586, 3637, 3702, 3704 of 2020 and 18025, 18026, 18030, 18031, 18033, 18035, 18037, 18038, 18039 & 18043 of 202123.09.2025Page 18 of 18