AI Structured Summary
Not yet generated for this judgment
Judgment
Heard Sri B. Mahender Reddy, learned counsel appearing on behalf of the petitioners, learned Assistant Government Pleader for Fisheries, appearing on behalf of the respondent Nos.1 to 4 and learned Standing Counsel appearing on behalf of the respondent No.5.
The petitioners approached the Court seeking prayer as under:
"...to issue an order or direction or writ more particularly one in the nature of writ of mandamus declaring the action of the Respondent Nos.2 to 4 in not conducting enquiry under section 51 of the Telangana Co-operative Societies Act 1964 (Act 7 of 1964) pursuant to the representation of the members of the 5th respondent society dt.27.05.2026 as arbitrary, illegal, violative of principles of natural justice, non exercise of powers under the provisions of Act 7 of 1964 and Rules made thereunder and violative of Article 14 of Constitution of India and to direct the Respondent Nos.2 to 4 to conduct enquiry u/s. 51 and take action in terms of the enquiry report in the interest of justice and pass such other order(s) deem fit and proper in the circumstances of the case..."
The case of the petitioners in brief as per the averments made in the affidavit filed by the petitioner in support of the present Writ Petition is as under:-
The petitioners are members of the 5th respondent Society, more than half of the 5th respondent-society members, including the petitioners, submitted a representation dated 27.05.2026 to the respondent authorities seeking an enquiry under Section 51 of the Telangana Co-operative Societies Act, 1964 into the alleged financial irregularities, mismanagement, and misappropriation of the Society's funds, particularly in relation to the construction of the Society building during the period from 27.12.2020 to 08.02.2026. Despite the statutory mandate and the lapse of considerable time, the respondent authorities failed to initiate any action or conduct the enquiry or take any action on the said representation. Aggrieved by the same, the petitioners have filed the present Writ Petition.
PERUSED THE RECORD:
DISCUSSION AND CONCLUSION
Learned counsel appearing on behalf of the petitioners mainly puts-forth the following submissions:-
i). The 5th respondent-Society was formed in the year 1991 (Registration No.1-93-1991) with the object of acquiring the water bodies, such as tanks and canals, from the Government by way of lease, sale or otherwise, and securing funds from the members or loans from the financial institutions or other sources to facilitate fishing activities for the benefit of its Society members.
ii). For the purpose of constructing a society building, the benefits were not distributed among the members, and an amount of Rs.1,45,00,000/-(Rupees One Crore Forty Five Lakhs only) had been accumulated with the Society in the year 2020. Thereafter, a further sum of Rs.92,00,000/-(Rupees Ninety Two Lakhs Only) representing the members' share from fishing activities in the subsequent years, was credited to the account of the 5th respondent-Society.
iii). Despite the accumulation of a total amount of Rs.2,37,00,000/- (Rupees Two Crores Thirty Seven Lakhs only), the construction of the society building had not been completed, and several financial irregularities took place pertaining to misappropriation of the said funds.
iv). On 27.05.2026, 101 members, including the petitioners, constituting more than half of the members of the 5th respondent-Society, submitted a representation to respondent Nos. 2, 3, and 4 requesting them to conduct an audit and initiate appropriate action with regard to the financial irregularities in the affairs of the 5th respondent-Society.
v). As per section 51 of the Act 7 of 1964, upon a representation made by the 1/5th of the total members of the society, the Registrar shall hold an enquiry into the affairs of the society.
vi). In the present case, more than half of the members submitted a representation dated 27.05.2026 for conducting an enquiry for the financial irregularities and misappropriation of funds by the 5th respondent-Society pertaining to the construction of the society building, However, no action has been taken on the said representation till date.
vii). The inaction on the part of respondent Nos. 2, 3, and 4 amounts to a dereliction of their statutory duty and is contrary to the provisions of the Act, as it is mandatory under Section 51 of the Act, 1964, to initiate an enquiry.
Based on the aforesaid submissions, the learned counsel appearing on behalf of the petitioners contends that the petitioners are entitled for the relief as prayed for in the present writ petition.
Learned Assistant Government Pleader for Fisheries, appearing on behalf of the respondent Nos.1 to 4 do not dispute the fact of the submission of the representation dated 27.05.2026 by the petitioners herein to the Director of Fisheries, Matsya Bhavan, Shanti Nagar, Masab Tank, Hyderabad, and the acknowledgment of the said representation by respondent No.2 herein.
In view of the fact as borne on record that the representation submitted by the petitioners dated 27.05.2026 herein had been acknowledged by the office of the 2nd respondent herein on the very same day, i.e. on 27.05.2026, and in view of the specific plea of the petitioners that no action had been initiated on the said representation till as on date, despite the representation having been submitted by more than 1/5th of the total members of the 5th respondent-Society as per section 51 of the Act 7 of 1964, this Court is of the considered view that, the Registrar is statutorily bound to conduct an enquiry into the affairs of the 5th respondent-Society. However, no such enquiry had been conducted till as on date. This Court opines that, the inaction on the part of the respondent Nos.2, 3 and 4 herein in considering the grievance of the petitioners as put-forth vide petitioners’ representation dated 27.05.2026 addressed to the respondent Nos.2, 3 and 4 pertaining to the conduct of an enquiry into the financial irregularities of the 5th respondent-Society, is arbitrary and illegal, and in clear dereliction of their duties as mandated under the statute.
7. TAKING INTO CONSIDERATION:
The aforesaid facts and circumstances of the case,
The submissions made by the learned counsel appearing on behalf of the petitioners and learned Assistant Government Pleader for Fisheries appearing on behalf of the respondent Nos.1 to 4.
The contents of the petitioners’ representation, dated 27.05.2026 addressed to the 5th respondent-society,
The discussion and conclusion as arrived at paragraph Nos.4 to 6 of this order,
The Writ Petition is disposed of directing the respondent No.2 herein, to consider the specific grievance of the petitioners as put-forth by the petitioners’ vide petitioners representation dated 27.05.2026 addressed to the 2nd respondent herein, pertaining to the financial irregularities of the 5th respondent-Society particularly during the construction of the society building and take appropriate action in accordance to law, in conformity with principles of natural justice, by providing an opportunity of personal hearing to both the petitioners and the 5th respondent herein, within a period of four (04) weeks from the date of receipt of a copy of this order and duly communicate the decision taken on the petitioners' representation dated 27.05.2026 to both the petitioners and the 5th respondent herein. However, there shall be no order as to costs.
Miscellaneous petitions, if any, pending in this Writ Petition, shall stand closed.