Anand vs The Commissioner and Ors.

The present writ petition has been filed under Article 226/227 of the Constitution of India seeking following reliefs:

"a. That, in the light of above mentioned facts and circumstances the Hon’ble Court be pleased to direct the respondents to form a committee consisting of appropriate authority and initiate Special Audit of the society till date;

b. This Hon’ble Court be pleased to direct the respondents to not to take any coercive step till the time special audits of the society for year 2008-09 is completed.

c. The Hon’ble Court be please to issue such directions to the respondents that the special audit is conducted and completed, the elections of the said society shall be conducted as per the rules in the interest of Justice.

d. This Hon'ble Court be pleased to stay the effect and operation of order passed by the respondents under Section 58-B and stay the subsequent proceeding if any against the petitioner.

e. Any other order this Hon'ble Court deem fit."

During course of arguments learned counsel for the petitioner submits that the order passed under Section 58-B of the M.P. Cooperative Societies Act is on the basis of inspection and in violation of principle of natural justice and without conducting any prior audit of the books of Respondent-Society. In the order passed by the authority under Section 58-B of the M.P. Cooperative Societies Act, out of the total transactions done by the petitioner, it was found that a sum of Rs.1,65,13,331/- (One Crore Sixty Five lacs Thirteen Thousand Three Hundred Thirty One Only) is not verified and the remaining transactions done in the accounts are verified as per the documents. It is submitted that without audit of books of society no finding can be given regarding misappropriation of funds and one can only be held responsible if misappropriation of funds is found after audit of books of account and hence prays for appropriate direction to initiate audit of society and petitioner be allowed to file appropriate documents to verify the amounts as mentioned in the order dated 19.01.2021 (Annexure A-22) passed under Section 58-B of the M.P. Cooperative Societies Act.

The limited prayer made by the learned counsel for the petitioner for the audit of the society seems to be fair, hence respondent No.3 is directed to initiate an audit of the society and place it on record and till the completion of audit, no coercive steps shall be taken against the petitioner.

In above terms, the petition is disposed of.