Madras High Court
Jagathambigai Nagar Co-Operative ... vs The Registrar on 30 April, 2024
Author: G.K.Ilanthiraiyan
Bench: G.K.Ilanthiraiyan
W.P.No.3684 of 2021
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED : 30.04.2024
CORAM:
THE HONOURABLE MR. JUSTICE G.K.ILANTHIRAIYAN
W.P.No.3684 of 2021
and W.M.P.No.4212 of 2021
Jagathambigai Nagar Co-operative House Site Society,
Represented by its Vice President,
Registration No. MDS-HSG 8,
No.44-B, Vallalar Street,
Jagathambigai Nagar,
Padi, Chennai – 600 050. ...Petitioner
-Vs-
1. The Registrar, (Housing)
No.48, Ritherdon Road,
Vepery,
Chennai – 600 007.
2. The Deputy Registrar (Housing)
Chennai Zone (Full Additional Charge)
No.18, Ramanathan Street,
T.Nagar,
Chennai – 600 017.
3. The Deputy Registrar (Housing)
Chennai Division,
No.18, Ramanathan Street,
T.Nagar,
Chennai – 600 017. ...Respondents
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https://www.mhc.tn.gov.in/judis
W.P.No.3684 of 2021
Prayer : Writ Petition filed under Article 226 of Constitution of India
praying for the issuance of a Writ of Certiorari, calling for the records
from the 2nd respondent Deputy Registrar (Housing) relating to the
impugned order Na.Ka.No.1657/2020/C dated 23.10.2020 confirming the
order dated 06.05.2020 of the 3rd respondent and quash the same.
For Petitioner : Mr.R.Rajaram
For R1 to R3 : Mr.T.Chandrasekaran
Special Government Pleader
ORDER
This Writ Petition has been filed for the issuance of Writ of Certiorari, calling for the records from the 2nd respondent Deputy Registrar (Housing) relating to the impugned order Na.Ka.No.1657/2020/C dated 23.10.2020 confirming the order dated 06.05.2020 of the 3rd respondent and quash the same.
2. Heard the learned counsel for the petitioner and the learned Special Government Pleader for the respondents 1 to 3 and perused the materials available on record.
Page 2 of 8 https://www.mhc.tn.gov.in/judis W.P.No.3684 of 2021
3. The petitioner Society was formed on 01.10.1973 and the same was duly registered as Co-operative House Site Society under Act 53 of 1961. The primary object of the petitioner Society was to get housing site in which they are in long term lease registered in the name of its members. While being so, the petitioner Society was served with a show cause notice as contemplated under Section 137(2) of the Tamil Nadu Co-operative Societies Act, 1983 stating that the petitioner Society has failed to carry out the object for which it was formed, and there was cessation of the primary activities for which it was formed for more than two consecutive years and hence, the petitioner was asked to submit a reply as to why the Society should not be wound up. The petitioner Society had sent a reply dated 22.01.2020. However, without considering the said reply, the petitioner Society was wound up by the impugned order dated 06.05.2020 passed by the third respondent and the same was confirmed by the second respondent. Hence, this writ petition.
4. The only ground raised by the petitioner is that Section 137 of Page 3 of 8 https://www.mhc.tn.gov.in/judis W.P.No.3684 of 2021 the Tamil Nadu Co-operative Societies Act, 1983 and Rule 113 of the Tamil Nadu Co-operative Societies Rules, 1988 have not been followed by the respondents while wounding up the petitioner Society.
5. It is relevant to extract the Section 137 (1) and (2) of the Tamil Nadu Co-operative Societies Act, 1983 as follows:-
“ 137. Winding-up of registered societies.__ (1) If the Registrar in the course of an audit under section 80 or after an inquiry has been held under section 81 or an inspection or investigation has been made under section 82 or an inspection of books has been made under section 83 or an receipt of an application made by not less than three- fourth of the members of a registered society or on receipt of a resolution of general body of a registered society, is of opinion that the society ought to be wound up, he may issue a notice to the society calling upon it to make its representations to the Registrar within one month from the date of receipt of such notice and the society shall follow such procedure as may be prescribed in this regard. A copy of the notice issued to the society shall be communicated to every member of the society in such manner as may be prescribed. The Registrar may after considering the representations, if any, received from the society or from any member and on being satisfied that the society ought to be wound up, issue an order to that effect and shall communicate such order to the society by registered post.
(2) The Registrar may of his own motion and after giving a registered society an opportunity of making its representation by order in writing direct the winding-up of Page 4 of 8 https://www.mhc.tn.gov.in/judis W.P.No.3684 of 2021 a registered society__”
6. Thus, it is clear that in order to wind up the registered Societies, the Registrar has to issue notice to the Society, calling upon to submit explanation, within a period of one month from the date of receipt of the notice. The copy of the said notice shall be communicated to each of the members of the Society and to convene a meeting among the members.
7. It is also relevant to extract Rule 113(1) and 113(2) of the Tamil Nadu Co-operative Societies Rules, 1988 as follows:-
113. Procedure to be followed before ordering the winding up of a society under section 137.__ (1) Within ten days of receipt of the notice issued by the Registrar under sub - section (1) of section 137, the society concerned shall call a special meeting of the general body for consideration of the notice. Seven clear days’ notice shall be given for such special meeting which shall be held within twenty five days from the date of receipt of the notice under sub-section (1) of section 137. A copy of the notice issued by the Registrar under sub-section (1) of section 137 shall be communicated to the members along with the notice issued for the special meeting, indicating therein that the members may also send their representations, if any, direct to the Registrar. The society shall send a copy of the resolution of the special meeting together with the representations, if any, on the matter to Page 5 of 8 https://www.mhc.tn.gov.in/judis W.P.No.3684 of 2021 the Registrar within one month from the date of receipt of the notice from the Registrar.
(2) Where the society fails or refuses to call a special meeting or communicate a copy of the notice under sub- section (1) of section 137 issued by the Registrar to its members, the Registrar himself communicate or authorise the financing bank or the federal society or any person subordinate to him or an employee of the society concerned to communicate a copy of the said notice to the members of the society calling upon such members to send their representations, if any, direct to the Registrar with in a period of fifteen days from the date of receipt or publication of communication.
8. Thus, if the Society fails to communicate the order or convene a meeting, the Registrar himself may communicate the notice directly to the members of the Society and convene a meeting before passing the order of wounding up.
9. A perusal of the counter filed by the third respondent revealed that the petitioner Society failed to issue any notice to its members and also did not conduct any special meeting. However, there is no records to show that the Registrar viz., the first respondent herein had issued notice to the members of petitioner Society and convened a special meeting. Therefore, it is a clear violation of Section 137 of the Tamil Nadu Co- Page 6 of 8 https://www.mhc.tn.gov.in/judis W.P.No.3684 of 2021 operative Societies Act, 1983 and Rule 113 of the Tamil Nadu Co- operative Societies Rules, 1988. It is mandatory under the Rules and the respondents failed to follow the procedures and as such, the impugned order cannot be sustained and is liable to be quashed.
10. Accordingly, the impugned order in Na.Ka.No.1657/2020/C dated 23.10.2020, is hereby quashed. The matter is remanded to the file of the respondents to continue with the process, after complying with all the mandatory requirements provided under Section 137 of the Tamil Nadu Co-operative Societies Act, 1983 and Rule 113 of the Tamil Nadu Co-operative Societies Rules, 1988 and pass appropriate order, in accordance with law.
11. In view of the above, this writ petition is allowed. Consequently, connected Miscellaneous petition is closed. There shall be no order as to costs.
30.04.2024 Internet: Yes Index : Yes/No Neutral Citation: Yes/No Page 7 of 8 https://www.mhc.tn.gov.in/judis W.P.No.3684 of 2021 Speaking/Non Speaking order mn G.K.ILANTHIRAIYAN. J, mn To
1. The Registrar, (Housing) No.48, Ritherdon Road, Vepery, Chennai – 600 007.
2. The Deputy Registrar (Housing) Chennai Zone (Full Additional Charge) No.18, Ramanathan Street, T.Nagar, Chennai – 600 017.
3. The Deputy Registrar (Housing) Chennai Division, No. 18, Ramanathan Street, T.Nagar, Chennai – 600 017.
W.P.No.3684 of 2021
30.04.2024 Page 8 of 8 https://www.mhc.tn.gov.in/judis