Madras High Court
A.1321 Karaikudi Cooperative House ... vs / on 14 June, 2023
Author: P.T.Asha
Bench: P.T.Asha
W.P.(MD) No.5526 of 2020
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 14.06.2023
CORAM
THE HONOURABLE Ms.JUSTICE P.T.ASHA
W.P.(MD) No.5526 of 2020
and
W.M.P.(MD) No.4833 of 2022
A.1321 Karaikudi Cooperative House Building Society Ltd.,
represented by its President,
having office at
No.28/61, D.D.Nagar,
Church 6th Street,
Karaikudi 630 001,
Sivagangai District. ... Petitioner
/vs./
1.The Registrar of Cooperative Societies (Housing),
48, Rithatran Road,
Veppari,
Chennai 600 007.
2.The Regional Deputy Registrar (Housing),
Virudhunagar Region,
No.3-D.D.Salai,
Maninagaram,
Aavin Milk Society Building,
Virudhunagar. ... Respondents
1/8
https://www.mhc.tn.gov.in/judis
W.P.(MD) No.5526 of 2020
PRAYER: Writ Petition filed under Article 226 of the Constitution of India for
issuance of Writ of Certiorari, calling for the records pertaining to the impugned
order issued by the second respondent made in Na.Ka.No.1152/17 Sa Pa dated
13.02.2020 and quash the same.
For Petitioner : Mr.P.R.Prithiviraj
For Respondents : Mr.R.Ragavendran
Government Advocate
ORDER
The above writ petition is filed for the issue of a Writ of Certiorari calling for the records pertaining to the impugned order issued by the second respondent in Na.Ka.No.1152/17 Sa Pa dated 13.02.2020 and quashing the same.
2.It is the case of the petitioner that they are the registered Cooperative Society under the Tamil Nadu Cooperative Societies Act, 1983 (herein after referred to as Act) and its main object is to provide housing loans to its members and to purchase and sell the immovable properties. The petitioner would submit that on 13.02.2020, they had been served with a show cause notice by the second respondent as to why the society should not be wound up as per Section 137 (1) of the Act and the society was given 30 days time to submit their reply to the said 2/8 https://www.mhc.tn.gov.in/judis W.P.(MD) No.5526 of 2020 show cause notice. It was also informed that the second respondent by his proceedings dated 13.02.2020 had ordered an inspection and investigation to be conducted under Section 82 of the Act and appointed an Officer to conduct the inspection.
3.In pursuance of this proceedings, the Inspection Officer had submitted his report dated 19.01.2018. In the report, the Inspection Officer had opined that for more than two consecutive years, the society has ceased to conduct its primary activities and therefore suggested winding-up under the Act. The petitioner has challenged the said show cause notice on the ground of jurisdiction. It is the contention of the learned counsel for the petitioner that it is only the Registrar, namely the first respondent, who has the authority to initiate proceedings for winding-up of a registered society.
4.The respondents have not filed any counter to the same and the only issue now for the consideration of this Court is whether the impugned notice suffers from the lack of jurisdiction. In order to answer the issue, it is necessary to peruse the provisions of Section 137 of the Act. Section 137 of the Act reads as under:- 3/8
https://www.mhc.tn.gov.in/judis W.P.(MD) No.5526 of 2020 “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 a registered society__
(a) Where it is a condition of the registration of the society that the society shall consist of at least twenty-five members and the number of members has been reduced to less than twenty-five; or 4/8 https://www.mhc.tn.gov.in/judis W.P.(MD) No.5526 of 2020
(b) Where the society has not commenced working within the prescribed period or has ceased to work.
Explanation. For the purposes of this sub-section the expression “ceased to work” means the cessation of the primary activities by the society for at least two consecutive years.
(3) A copy of an order made under sub-section (1) or under sub- section (2) shall be communicated by registered post to the society and to the financing bank, if any, of which the society is a member.”
5.From a reading of this Section, it is clear that pursuant to any report being filed after investigation under Section 82, it is for the Registrar to issue notice to the society calling upon them to submit their representations to him within a period of one month from the date of receipt of the show cause notice. Sub Section 2 of Section 137 further provides that the Registrar after giving an opportunity to the society for making its representation in writing proceed to wind-up the registered society as stated in sub Section 2 (a) and (b). Further, the powers of the Registrar had been conferred on certain officers as set out in G.O.Ms.No.31, Housing and Urban Development, dated 08.01.1990. However, a perusal of this Government Order would clearly show that the provisions of Section 137 of the Act have not been delegated and on the contrary, it is clearly 5/8 https://www.mhc.tn.gov.in/judis W.P.(MD) No.5526 of 2020 stated that except for the provisions of Section 137 (1) and other Sections, all other powers of the Registrar have been conferred on the Officers set out in the Government Order therein.
6.In the light of the above, the impugned order of the second respondent made in Na.Ka.No.1152/17 Sa Pa dated 13.02.2020 is set aside. Consequently, the Writ Petition is allowed. Liberty is granted to the respondents to initiate proceedings in the manner known to law. However, there shall be no order as to costs. Consequently, connected Miscellaneous Petition is closed.
Speaking : Yes / No 14.06.2023
NCC : Yes / No
Internet : Yes / No
Index : Yes / No
mm
To
1.The Registrar of Cooperative Societies (Housing), 48, Rithatran Road, Veppari, Chennai 600 007.
6/8 https://www.mhc.tn.gov.in/judis W.P.(MD) No.5526 of 2020
2.The Regional Deputy Registrar (Housing), Virudhunagar Region, No.3-D.D.Salai, Maninagaram, Aavin Milk Society Building, Virudhunagar.
7/8 https://www.mhc.tn.gov.in/judis W.P.(MD) No.5526 of 2020 P.T.ASHA, J.
mm W.P.(MD) No.5526 of 2020 14.06.2023 8/8 https://www.mhc.tn.gov.in/judis