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Judgment
Vinod K. Sharma, J.—The Petitioner has challenged the order passed by the learned Principal District Judge, Madurai, exercising the powers of Appellate Authority, under the Tamil Nadu Co-operative Societies Act.
The Respondents 2 to 5 were asked to make good the loss caused to the Society, in pursuance to the proceedings, held u/s 87 of the Tamil Nadu Cooperative Societies Act.
The appellate authority allowed the appeal only on the ground that the proceedings u/s 87 of the Act, were not completed, within a period of six months, as stipulated under proviso (2) to Section 87 of the Tamil Nadu Cooperative Societies Act, 1983.
Proviso (2) to Section 87 reads as under:
Provided further that the action commenced under this Sub-section shall be completed within a period of six months from the date of such commencement or such further period or periods as the next higher authority may permit but such extended period or periods shall not exceed six months in the aggregate
The reading of the proviso shows that the period six months is not mandatory, as proviso itself stipulates that the time can be extended.
The learned Principal District Judge, exercising the power of appellate authority, committed an error, by treating the claim to be time barred, by holding that proviso (2) to Section 87 to be mandatory.
As already observed above, proviso (2) to Section 87 cannot be held to be mandatory.
This view finds support from the judgment of this Court, in the case of K. Murugan v. 1. The Deputy Registrar of Cooperative Societies, Erode Circle, Veerappan Chattram, Erode-4 and Ors. 2001 (3) CTC 689 and the judgment of this Court in G. Pannerselvam v. Registrar of Coop. Societies (2009) 2 MLJ 901. The impugned order of appellate authority, therefore, cannot be sustained in law.
The writ petition is, accordingly, allowed, the order of the appellate authority, is quashed and the case is remitted back to the learned Principal District Judge, Madurai, exercising the power of appellate authority, under the Tamil Nadu Cooperative Societies Act, to decide the appeal on merits, in accordance with law.
Consequently, connected Miscellaneous Petition is closed. No costs.