Andhra Pradesh High Court - Amravati
Ch.Sarveswara Rao, W.G.District 10 ... vs The Dy.Registrar Of Coop.Societies, ... on 27 December, 2024
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APHC010162272009
IN THE HIGH COURT OF ANDHRA [3328]
PRADESH
AT AMARAVATI
(Special Original Jurisdiction)
FRIDAY ,THE TWENTY SEVENTH DAY OF DECEMBER
TWO THOUSAND AND TWENTY FOUR
PRESENT
THE HONOURABLE SRI JUSTICE GANNAMANENI RAMAKRISHNA
PRASAD
WRIT PETITION NO: 23046 OF 2009
Between:
1. CH.SARVESWARA RAO, W.G.DISTRICT & 10 OTHERS,
S/O.LATCHANNA CULTIVATION R/O.L.B.CHERLA VILLAGE
NARSAPUR MANDAL WEST GODAVARI DISTRICT
2. PULAPARTHI SRIRAMULU, S/O.SUBBA RAJU CULTIVATION
R/.O.PASALADEEVI VILLAGE NARSAPUR MANDAL WEST
GODAVARI DISTRICT
3. LAKKU NARASIMHA RAO, S/O.SWAMI NAIDU CULTIVATION
R/O.KPDAPA VILLAGE NARSAPUR MANDAL WEST GODAVARI
DISTRICT
4. KOTTU VEERA VENKATA SATYANARAYANA,
S/O.VENKATARATNAM CULTIVATION R/O.PASALADEEVI VILALGE
NARSAPUR MANDAL WEST GODAVARI DISTRICT
5. POLISETTI SUBBA LAKSHMI, W/O.RAMASWAMY HOUSEWIFE
R/O.PASALADEEVI VILALGE NARSAPUR MANDAL WEST
GODAVARI DISTRICT
6. GUBBALA RAJU, S/O.KOTESWARA RAO CULTIVATION MODI
VILLAGE NARSAPUR MANDAL WEST GODAVARI DISTRICT
7. GUBBALA KRISHNA, S/O.SWAMY CULTIVATION MODI VILLAGE
NARSAPUR MANDAL WEST GODAVARI DISTRICT
8. TIRUMALASETTY VENKATESWARLU, S/O.SATYANARAYANA
CULTIVATION L.B.CHERLA VILLAGE NARSAPUR MANDAL WEST
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GODAVARI DISTRICT
9. POTHULA DHARMA RAO, S/O.MANIKYALU CULTIVATION
R/O.PASALADEEVI VILLAGE NARSAPUR MANDAL WEST
GODAVARI DISTRICT
10. CHAMAKURTI SATYANARAYANA, S/O.PANASAIAH CULTIVATION
R/O.CHAMAKURIPALEM VILLAGE NARSAPUR MANDAL WEST
GODAVARI DISTRICT
11. KOYYALAGADDA ANASURYA NARAYANA, S/O.NARASIMHA HAYI
CULTIVATION R/O.L.B.CHERLA VILLAGE NARSAPUR MANDAL
WEST GODAVARI DISTRICT
...PETITIONER(S)
AND
1. THE DY REGISTRAR OF COOP SOCIETIES ANOTHER, STREET,
BHIMAVARAM, WEST GODAVARI DISTRICT
2. L B CHERLA PRIMARY AGRICULTURAL COOPERATIVE CREDIT,
SOCIETY, L.B.CHERLA , REP.BY ITS SECRETARY,
L.B.CHERLA,NARSAPUR MANDAL, WEST GODAVARI DISTRICT
...RESPONDENT(S):
Counsel for the Petitioner(S):
1 S R SANKU AND KAVITI MURALI KRISHNA
.
Counsel for the Respondent(S):
1. T RAJENDRA PRASAD
2. GP FOR COOPERATION The Court made the following ORDER:
Heard Ms. P. Haritha, learned Counsel appearing on behalf of Sri S.R. Sanku, learned Counsel for the Writ Petitioners and Sri P. Varaprasada Rao, learned Asst. Government Pleader for Cooperation.3
2. The relief sought in the present Writ Petition is as under:
"For the reasons stated above, it is therefore prayed that this Hon'ble Court may pleased to issue a Writ or Order or Direction more particularly one in the nature of Writ of certiorari quashing the order of the A.P. Cooperative Tribunal at Vijayawada in O.A.No.44 of 2008 dated 15.10.2009 and consequentially quashing the order of the 1st respondent in R.C.No.2151/2002/B/D/S-III dated 04.04.2008, by calling for the records pertaining to the said proceedings and those of O.A.no.44 of 2008 and pass such other order/s deemed fir and proper in the circumstances of the case."
3. The above prayer makes it clear that the present Writ Petitioners have challenged the order passed by the A.P. Cooperative Tribunal at Vijayawada (For short 'the Tribunal') in O.A.No.44 of 2008 dated: 15.10.2009 (Ex.P.1).
4. The facts, as submitted by the learned Counsel for the Writ Petitioners on the strength of the Affidavit filed in support of the Writ Petition are that the Writ Petitioner No.1 is the Ex-President of Respondent No.2- Society (L.B.Cherla Primary Agricultural Cooperative Credit Society Ltd., L.B. Cherla of Narasapur Mandal, West Godavari District); that the Writ Petitioner Nos. 2 to 12 are the former Directors. The Primary Authority, Bhimavaram, vide Order bearing Rc.No.2151/2002/B/D/S-III, dated: 04.04.2009 (Ex.P.2) had issued Surcharge Proceedings under Section 60 of the Andhra Pradesh Cooperative Societies Act, 1964 (the 'Act'). About '4' counts have been charged against the several delinquents. Count No.III and Count No.IV were put against the Writ Petitioners herein. The present Writ Petitioners are 4 therefore facing charges under Count No.III and Count No.IV. Count No.III relates to time barred loans) involving a total amount of Rs.21,975/- and Count No.IV relates to loans issued in the name of dead persons (SAO Loans) amounting to Rs.1,18,551/-.
5. The facts in this case would indicate that the Joint Registrar/ District Co-operative Officer has ordered an enquiry under Section 51 of the Act; that the Enquiry Officer has submitted the Enquiry Report on 05.08.2003 recommending for surcharging the above mentioned amounts as against the persons noted for each of the Count; that the history of the case would also indicate that on the earlier occasion the Surcharge Proceeding issued by the Deputy Registrar were challenged by the delinquent persons vide O.A.Nos. 9,15 and 56 of 2005 and O.A.No.69 of 2006 before the Tribunal; that the said Appeals were allowed by remanding the matters to the Surcharging Authority/Deputy Registrar for a de novo Enquiry under Section 60(1) of the Act; that all the Writ Petitioners have received notices and have contested the matter.
6. The Surcharging Authority/Deputy Registrar of Co-operative Societies, vide Order dated: 04.08.2008 (Ex.P.2) had directed the payment of an amount of Rs.1,18,551/- along with interest at 12% per annum from the date of issue of alleged misappropriate loans till the date of realization against the Writ Petitioners herein.
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7. By complying with the statutory condition for preferring a statutory appeal before the Tribunal, the Writ Petitioners herein have deposited the principle amount of Rs.60,000/- on 12.08.2008. Accordingly, the Writ Petitioners have filed O.A.No.44 of 2008 before the Tribunal. Vide Order dated: 15.10.2009, the Tribunal was pleased to dismiss the O.A.No.44 of 2008 vide Order dated: 15.10.2009 (Ex.P.1). This Order is under challenge in the present Writ Petition by the Ex-President and Ex-Directors of Respondent No.2 Society.
8. This Court has perused the Order passed by the Primary Authority dated: 04.04.2008 (Ex.P.2) and the Impugned Order dated:
15.10.2009. Both the orders, on minute examination, would indicate that the Primary Authority (Surcharging Authority/Deputy Registrar of Cooperative Society) and the Appellate Authority viz., the Tribunal have dealt with the issues thread bear. The Tribunal has noticed the following facts that led to the dismissal of the O.A.No.44 of 2008 vide its' Order dated: 15.10.2009;
(i) that the Writ Petitioners herein have passed a Resolution and sanctioned a loan amount in the name of dead persons and signed the loan disbursement statement in which the President, who is the Writ Petitioner No.1 herein, the Secretary and two Directors, (who are also the Writ Petitioners herein) have certified the disbursement of loan in the name of dead persons (who were the former members of the Society);
(ii) Vide Resolution Nos. 101 and 102 dated: 30.05.1998, 10.06.1998 and 17.06.1998, the Managing Committee 6 members (President and 10 Directors) passed a Resolution, as recorded in the Minutes Book, to sanction SAO-I and SAO-II loans to members of the Society, in which dead members names were also listed;
(iii) The Tribunal recorded that all the members (Writ Petitioners herein) have colluded with each other and issued Binami loans in the name of dead persons and caused the deficiency to the assets of the Society.
(iv) The Primary Authority passed the Surcharge Order after examining the witnesses on both sides as P.Ws.1 and 2 from the side of the Enquiry Officer and R.Ws.1 to 15 from the side of the Writ Petitioners and after marking and considering seven (07) documents against the Appellants for recovery of Rs.1,18,551/- along with interest at 12% per annum from the date of issue of loan till the date of realization;
(v) The contention of the Writ Petitioners that the Writ Petitioners were mislead by the Chief Executive of the Respondent No.2 Society was negatived by holding that the duty and responsibility of the Managing Committee is to factually verify the recommendations of the Chief Executive as a part of the fiduciary duty;
(vi) that the Primary Authority has recorded the evidence of the Enquiry Officer, who conducted the Enquiry under Section 51 i.e., one by name Sri S. Murali Krishna. He was examined as P.W.2 and that the said P.W.2 has been extensively cross-examined on behalf of the Writ Petitioners, which was considered by the Primary Authority;
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(vii) The Enquiry Officer has also cross-examined the Chief executive/Ex-Secretary of the Respondent Society as P.W.1;
(viii) The Tribunal observed that the Managing Committee is the main pillar of the Respondent No.2 Society herein and therefore, the Writ Petitioners cannot say that they have no responsibility in the management of the Society and that the Executive Officer is alone responsible;
(ix) As per Serial No.26 of the Bye laws of the Respondent No.2 Society, the President has to conduct administration of the Society and that all the assets, cash and other balances shall be in the control of the President; and that before sanctioning and disbursing the loan, the Writ Petitioners herein (members of the Managing Committee) ought to have verified whether the loanee is alive or not and that it is apparent from the records that the Writ Petitioners herein have deliberately sanctioned and disbursed the loan to the erstwhile members, who are not alive on the date of disbursement. It is also held by the Tribunal that all the Writ Petitioners herein were residing in a close range with that of the other members and therefore, they clearly know whether the purported loanee is alive or is no more alive.
9. This Court, having considered the Order under challenge minutely, as noted above, is of the view that there is no perversity in the Order passed by the Tribunal in O.A.No.44 of 2008 dated: 15.10.2009 (Ex.P.1). Hence, there is no merit in the present Writ Petition. 8
10. Accordingly, this Writ Petition is dismissed for the reasons stated herein above. No order as to costs.
11. Interlocutory Applications, if any, stand closed in terms of this order.
______________________________________ GANNAMANENI RAMAKRISHNA PRASAD, J Dt: 27.12.2024 Mnr 9 104 HON'BLE SRI JUSTICE GANNAMANENI RAMAKRISHNA PRASAD WRIT PETITION No.23046 OF 2009 Dt.27.12.2024 Mnr