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Judgment
Honourable Mr. Justice Vinod K. Sharma
The Petitioner has approached this Court, with a prayer for issuance of a Writ, in the nature of Certiorari, for quashing the impugned Award passed by the Deputy Registrar of Co-operative Societies u/s 87 of the Tamil Nadu Co-operative Societies Act 1983, as also the order passed by the Appellate Tribunal, partly accepting the Appeal, against the Award.
The Petitioner, being the Chairman of the Society, gave employment to Thiru. Karunai Anandam, as an Assistant, who was subsequently promoted to the post of Secretary.
The first Respondent / Deputy Registrar of Co-operative Societies got an enquiry conducted into the affairs of the society, wherein, it was recorded, that the Petitioner had conducted the affairs of the society irregularly.
On the basis of the Enquiry Report, the Petitioner was issued a Charge Memo, alleging therein, that he had given employment in violation of the Rules and Bye-laws of the Society, and promoted Thiru. Karunai Anandam, wrongly thereby caused loss to the society.
The second allegation against the Petitioner, was that he advanced Cash Credit Limit, to its members, without deposit of 5% of the advanced amount, as share capital in the Society.
The first Respondent / Deputy Registrar of Co-operative Societies held the charges proved, and passed an order for recovery of salary paid to Thiru. Karunai Anandam, and also for recovery of non retention of 5% of the advanced amount, along with interest at 5% p.a., on the awarded amount.
The Petitioner challenged the Award before the Appellate Tribunal i.e., (Principal District Judge), Madurai.
The first charge prima facie was not sustainable. In absence of removal of an employee, it could not be said, that the salary was wrongly paid, nor it could be said to be loss to the Society, to bring the case u/s 87 of the Tamil Nadu Co-operative Societies Act, 1983.
In the present case, in view of the fact, that the services of Thiru. Karunai Anandam was regularized from the date of his initial appointment, including his promotion to the post of Secretary, the Appellate Tribunal, exonerated the Appellant from the recovery under Charge No. 1.
The Appellate Tribunal, however, partly upheld the Award, regarding 5% of the advanced amount towards Cash Credit Limit, by treating it to be a loss to the Society, for not having recovered from the loanee towards retention amount as share capital. The interest at 5% p.a., on this amount was also upheld.
Learned Counsel for the Petitioner challenged the Award as well as the order of the Appellate Tribunal, on the ground, that there is no statutory provision, either under the Act or Statutory Rules, which required, that the person availing Cash Credit Limit, should deposit 5% of amount towards the share capital of the Society.
The Learned Counsel for the Petitioner also contends, that even under the bye-laws also, there is no provision, imposing any obligation on the Managing Committee, to ask the members availing Cash Credit Limit to deposit 5% towards share capital of the Society. Therefore the Award as well as the order of the Appellate Tribunal are therefore, based on presumption, which are not supported by the Act, Rules or the Bye laws, therefore, cannot be sustained in law.
There is force in the contention of the Learned Counsel for the Petitioner.
There is nothing under the Tamil Nadu Co-operative Societies Act or under the Statutory Rules, which requires the deposit of 5% of loan amount under cash credit as share capital. In any case, non deposit of share capital, even if it was required, cannot be said to be a loss to the Society, which could be recovered from the members of the society.
The impugned Award, as well as the order of the Appellate Tribunal, suffers from non application of mind, thus are arbitrary and not sustainable in law.
For the reasons stated above, this writ petition is allowed, the impugned Award as well as the order of the Appellate Tribunal are quashed.
No costs.
The connected miscellaneous petition is closed.