Madras High Court
M.Arunachalam vs The Secretary To Government on 21 September, 2010
Author: S.Nagamuthu
Bench: P.Jyothimani, S.Nagamuthu
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED:21/09/2010 CORAM THE HONOURABLE MR.JUSTICE P.JYOTHIMANI and THE HONOURABLE MR.JUSTICE S.NAGAMUTHU Writ Petition (MD)No.9885 of 2009 M.Arunachalam ... Petitioner Vs. 1.The Secretary to Government, Handicrafts, Textiles and Khadi Department, Chennai 600 009. 2.The Director, Handlooms Department, Kuralagam, Chennai 108. 3.The Assistant Director, Handlooms Department, 210, Palam Station Road, Chellur, Madurai 2. ... Respondents PRAYER Writ Petition is filed under Article 226 of the Constitution of India praying to issue a Writ of Mandamus directing the respondents to initiate appropriate legal proceedings to recover the amount of Rs.10,08,00,000/- {Rupees Ten Crores and Eight Lakhs only) being the amount misappropriated by the Special Officers, Inspectors of the respective Societies. !For Petitioner ... Mr.M.Arunachalam Party-in-person ^For Respondents ... Mr.S.Veera Raghavan, Additional Advocate General, Assisted by D.Gandhiraj Government Advocate :ORDER
S.NAGAMUTHU,J This public interest litigation has been filed seeking a direction to the respondents to initiate appropriate legal proceedings to recover a sum of Rs.10,08,00,000/-, which is said to have been misappropriated by various officers and staff of 22 Co-operative Weavers Societies in Theni District.
2.According to the petitioner, he, himself being a weaver and interested in the welfare of the weaving community, made a representation on 26.05.2009 requesting for appropriate action against the erring officers of 22 Co-operative Societies. He was informed by the 1st respondent by his proceedings in Na.Ka.No.22451/05/G1, dated 28.10.2005, that proceedings under Section 81 of the Tamil Nadu Co-operative Societies Act (hereinafter referred to as "the Act") had already been initiated. But, he would state that no further concrete action has been taken against the responsible officers. In the affidavit filed in support of the petitioner, he has given the following details of the societies and the amounts allegedly found deficit in their account. These details, he has collected from the 3rd respondent. They are as follows:
S.No. Name of the Weaver's Co-operative Society Deficit Amount as on 31.03.2002 (in lakhs)
1.D.D.70 Thiruvalluvar 44.90
2.M.H.13 Peraringar Anna 39.96
3.M.H.15 Mahalakshmi 25.81
4.M.H.19 Muthu 17.11
5.M.H.20 Annai Muthumariamman 88.45
6.M.H.21 Annai Bahavathi 72.94
7.M.H.23 Jakkampatti Saliyar 48.65
8.M.H.49 Dr.Anna 3.81
9.M.H.54 V.O.Chithambaranar 79.65
10.M.H.55 Thanthai Periyar 29.21
11.M.H.56 Thiruvilli Thiyagi Gurusamy 43.76
12.M.H.198 Annai Indira 44.63
13.M.H.199 Annai Sathya 9.12
14.M.H.200 Murugan 11.75
15.M.H.216 Kamban Natarajan 16.41
16.M.H.217 Pasumpon Muthuramalinga Thevar 98.30
17.M.H.226 Baratharathna M.G.R. 19.86
18.M.H.240 Uthaya Sooriyan 6.83
19.M.H.192 Sakkampatti Visaithari 48.73
20.M.H.126 Sakkampatti Industrial 6.21
21.M.H.243 Thenpandi Singam Visaithari 12.30
22.M.H.207 Andipatti Visaithari 43.69 According to him, though he has made several representations in this regard, no action has been taken and therefore he has been forced to come to this Court with this public interest litigation.
3.The 3rd respondent has filed a counter as well as an additional counter. In these counters, the 3rd respondent has stated that there were no deficit in the accounts of these twenty two societies and instead there were only accumulated business loss. Further, it is stated that after completing enquiry under Section 81 of the Act in respect of the affairs of these 22 societies, further action has been taken. As a matter of fact, as per the additional counter, in respect of 14 Societies, based on the reports submitted under Section 81 of the Act, complaints were forwarded to the police, on which cases have been registered against the officers who were responsible for the said deficit and on completing investigation charge sheets have been laid against the respective accused. The cases are under trial. The details of the cases against the officials of varios weavers co-operative societies, as stated in the additional counter, would be as follows:
"1.Name of the Society : MH 20 Annai Muthumariamman Weavers Co-operative Society.
Crime No. : 2/2002 (CCIW,Theni). Case under Sections : 408, 409 & 477(A) IPC Case No : C.C.No.236/2003 (J.M.III, Madurai) Misappropriated amount : Rs.13,86,126.56 Name of Accused : 1.Subramanian (Clerk) : 2.Palaniyandi (President) Stage of the case: A1 - Subramani was convicted and awarded a fine of Rs.500/-.The case was disposed on 05.04.2006.
A2- Palaniyandi died during Court enquiry.
Remarks : All the documents relating to this case were handed over to the Registrar (Vigilance), Madras High Court, on 25.05.2006.
2.Name of the society : MH 198 Annai Indira Weavers Co-opertive Society.
Crime No. : 1/2003 (CCIW, Theni) Case under Sections : C.C.No.142 & 143/2003 (J.M.III, Madurai) Misappropriated amount : Rs.6,59,645/-
Names of Accused : 1.P.Rajamani (President) : 2.N.Ilanthiraian (Clerk) Stage of the case : A1 - P.Rajamani was acquitted.
A2 - Ilanthiraian was punished u/s 3 of PO Act. The case was disposed on 20.03.2006.
Remarks : All the documents relating to this case were handed over to the Registrar (Vigilance), Madras High Court, on 25.05.2006.
3.Name of the Society : MH 216 Cumbum Natarajan Weavers Co-operative Society.
Crime No. : 3/2003 (CCIW, Theni) Case Under Sections : 408, 409 & 477(A) IPC.
Misappropriated Amount : Rs.2,44,814.83.
Names of Accused : 1).G.Palanichamy (Manager),
2).K.Karuppasamy (Clerk)
3).M.Palanivel (President) Stage of the case :A1 - Palanichamy was convicted and awarded 6 months imprisonment and fine of Rs.3,000/-
A2 - Karuppasamy was released under PO Act (C.C.244/03).
A3 - Palanivel was convicted and awarded 6 months imprisonment and a fine of Rs.8,000/-.
The case was disposed on 29.09.2005.
Remarks : Crl.R.C.Nos.813/2006 & 859/2006 against C.C.Nos.242/2003 & 243/2006 respectively were pending before this Hon'ble Court.
4.Name of the Society : MH 54 V.O.Chidambaanar Weavers Co-operative Society.
Crime No : 3/2004 (CCIW, Theni), Case under Sections : 409 & 477(A) IPC.
Case No. :C.C.Nos.37,38 & 39/05 (J.M.-
III, Madurai) Misappropriate Amount : Rs.22,18,495.10.
Names of Accused : Annamalai (President) Stage of the case :Accused Annamalai was convicted and awarded a fine of Rs.2,700/-.
The case was disposed on 27.04.2006.
Remarks : All the documents relating to this case were handed over to the Registrar (Vigilance), Madras High Court, on 25.05.2006.
5.Name of the Society : MH 20 Annai Muthumariamman Weavers Co-operative Society.
Crime No. : 4/2004, (CCIW, Theni).
Case Under Sections : 408, 409 & 477(A) IPC.
Case No. : C.C.Nos.81,82,83, 84, 85 & 86/2005 (J.M.-III, Madurai).
Misappropriated Amount : Rs.14,44,031.50.
Names of Accused : 1).G.Palaniandi (President)
2).Subramani (Clerk).
Stage of the case :A1 - Palaniandi died during enquiry in the Court.
A-2 - Subramani was convicted and awarded a fine of Rs.3,000/-. The period he was in prison was treated as imprisonment period.
The case was disposed on 05.04.2006.
Remarks : All the documents relating to this case were handed over to the Registrar (Vigilance), Madras High Court, on 25.05.06.
6.Name of the Society : MH 21 Annai Bagavathi Weavers Co-operative Society.
Crime No. :6/2004 (CCIW, Theni), Case under Sections : 408, 409 & 477(A) IPC.
Case No. : C.C.Nos.69 to 72/05 (J.M.III, Madurai).
Misappropriated Amount : Rs.12,59,452/-
Name of Accused : Ananthapadmanabhan (President) Stage of the case :Case was disposed on 27.03.2007 since the accused died. Judgment annexed in the typed set.
7.Name of the Society : MH 217 Pasumpon Muthuramaliga Thevar Weavers Co-operative Society.
Crime No. : 7/2004 (CCIW, Theni), Case under Sections : C.C.Nos.198 to 202/2004 (J.M.III, Madurai), Misappropriated amount : Rs.24,57,050/-
Name of Accused : 1).Gnanaprakasam (President Resigned his post)
2).N.Ganesan (President).
Stage of the case :A1 - Gnanaprakasam was convicted and awarded a fine of Rs.3,600/-
A2 - N.Ganesan was convicted and awarded a fine of Rs.3,600/-
The case was disposed on 27.04.2006.
Remarks : All the documents relating to this case were handed over to the Registrar (Vigilance), Madras High Court, on 25.05.2006.
8.Name of the Society : MH 54 V.O.Chidambaranar Weavers Co-operative Society Crime No. :8/2004 (CCIW, Theni), Case under Sections : 409 & 477(A) IPC Case No. : C.C.No.102 to 106/2005 (J.M.-
III, Madurai).
Misappropriated Amount : Rs.27,13,292/-.
Names of Accused : Annamalai (President).
Stage of the case :Accused was convicted and awarded a fine of Rs.3,900/-
and taken the 43 days which he was in prison as imprisonment period.
The case was disposed on :
27.04.2006.
Remarks : All the documents relating to this case were handed over to the Registrar (Vigilance), Madras High Court, on 25.05.2006.
9.Name of the Society: MH 13 Peraignar Anna Weavers Co-operative Society.
Crime No. : 4/2003 (CCIW, Theni), Case under Sections : 408, 409, 465, 476 & 477 IPC.
Case No. : C.C.Nos.245 to 249/2003 (New C.C.Nos.87 to 91/2006), (J.M.III, Madurai).
Misappropriated Amount : Rs.9,84,677/-
Names of Accused : 1) Ramasamy (President)
2). Thandayudham (Clerk), Stage of the case : Last hearing date :
27.05.2006.
Remarks : case bundle handed over to the Registrar (Vigilance), Madras High Court.
10.Name of the Society :MH 243 Thenpandi Singam Weavers Co-operative Society.
Crime No. :2/2003 (CCIW, Theni), Case Under Sections : 409 & 477(A) IPC.
Case No. : C.C.No.250& 253/2003 (J.M.III Madurai).
Misappropriated Amount : Rs.6,47,309.14.
Names of Accused : 1.Venkateswaran (President)
2.Kannan (Individual)
3.Rajamani (Clerk).
Stage of the case: case is pending before JM-III, Madurai.
Next hearing date : 27.07.2010.
11.Name of the Society : MH 240 Udhayasooriyan Weavers Co-operative Society.
Crime No. : 5/2003 (CCIW, Theni).
Case under Sections : 408, 409 & 477(A) IPC.
Case No. : C.C.Nos.189 to 195/2004 (J.M.-III, Madurai).
Misappropriated Amount : Rs.7,29,658/-.
Names of Accused : 1.Kottai karuppasamy (President).
2.Veluchamy (Administrator).
3.Thangavel (Administrator).
4.Tamilselvan (Clerk)
5.Gopi (Clerk).
Stage of the case :-Case is pending before JM-
III, Madurai, Hearing date : 13.07.2010.
12. Name of the Society : MH 226 Bharatha Rathna M.G.R. Weavers Co-operative Society.
Crime No. : 5/2004, (CCIW, Theni).
Case under Sections : 408, 409, 466, 477(A), r/w 34 IPC.
Misappropriated Amount : 4,29,108/-
Names of Accused ;1.Gandhi (President).
2. Rajamani (Administrator).
13.Name of the Society : MH 200 Murugan Weavers Co-
operative Society.
Crime No. : 5/2008, (CCIW, Theni).
Case under Sections : 408, 409, 480, 477(A), 120(B) r/w, 34 IPC Case No. :C.C.No.145/2008 (J.M.-III, Madurai).
Misappropriated Amount : Rs.10,34,219.15.
Names of Accused : 1.Mallaiahsamy (Clerk).
2.Kamatchi (Clerk).
Stage of the case :Case is pending before JM-III, Madurai, Hearing Date 13.07.2010.
14.Name of the Society: MH 19 Muthu Weavers Co-
operative Society, Crime No. : 6/2008 (CCIW, Theni), case under Sections : 408, 420, 477(A) & 120 (B) IPC.
Case No. C.C.Nos.146 to 149/2008 (J.M.III, Madurai), Misappropriated Amount : Rs.18.07,214.10 Names of Accused : 1. Muthukamatchi (Clerk)
2.Selvaraj (Clerk)
3.Ganapathi (Clerk)
4.Ezhilmaran (Handloom Inspector) (Government Officer).
Stage of the Case : Case is pending before JM-
III, Madurai., Hearing date : 13.07.2010.
...."
4.It is further stated that apart from the above, criminal proceedings under Section 87 of the Act have been initiated in respect of 20 societies and some cases were taken upto the High Court and some cases are still pending. Thus, according to the counter, appropriate action has been taken against the erring officials and steps have also been taken to recover the amount of loss sustained by the respective society.
5.We have heard the petitioner, who appeared in person and the learned Additional Advocate General appearing for respondents 1 to 3. We have also perused the records carefully.
6.As of now, there is no much of controversy that out of the 22 co- operative societies mentioned above, there were certain alleged financial irregularities committed by the officials in respect of certain societies and in respect of other societies, there has been loss caused to the society concerned. The 3rd respondent is bound to act as per the mandate of the provisions of the Tamil Nadu Co-operative Societies Act in such a situation. In this case, as stated in the additional counter filed by the 3rd respondent, proceedings under Section 81 of the Act were initiated for holding appropriate enquiry and it is also stated that due reports have also been submitted. Further it is stated by the 3rd respondent that in respect of 14 societies criminal cases have been registered and the accused have been brought to book. The cases are under trial. Though the petitioner states that the statement in this regard made in the counter is not correct, we do not find any reason to disbelieve the statement made in the additional counter which gives all the details such as crime numbers, calender case numbers, penal provisions and the name of the accused in all such 14 cases. In respect of few societies, it is stated by the learned Additional Advocate General that Section 87 proceedings were initiated for recovering the amount sustained by society by way of loss and in many matters awards were also passed. It is also stated that in some matters, appeals were filed. Some matters were taken upto the level of this Court by the officials as against the said Section 87 proceedings. Some matters are now pending before this Court and some are pending elsewhere. From these statements made by the learned Additional Advocate General, it is crystal clear that appropriate action has been initiated, as provided in law, by the 3rd respondent in respect of these societies. Though the petitioner disputes the same, we do not find any valid ground to accept such dispute.
7.In view of the said factual position, in our considered opinion, no further direction is required at this length of time to the respondents to initiate proceedings, as already appropriate proceedings have been initiated. If the petitioner feels that there has been some shortcomings in the proceedings initiated, if he is so entitled under law, his remedy lies elsewhere and not in this public interest litigation.
8.The learned Additional Advocate General would rely on a judgment of the Hon'ble Supreme Court in State of Uttaranchal vs. Balwant Singh Chaufal and others - (2010 3 SCC 402 to substantiate his contention that the present petition would not satisfy any of the guidelines enumerated in the said judgment so as to entertain this litigation as a public interest litigation. The learned Additional Advocate General would mainly rely on Clause (4) of the guidelines issued by the Supreme Court in paragraph 181, which is as follows:
"(4)The Courts should be prima facie satisfied regarding the correctness of the contents of the petition before entertaining a PIL."
According to the learned Additional Advocate General, the allegations made in the writ petition that no action has been taken in respect of these 22 Co- operative Societies is absolutely incorrect and therefore on this ground the writ petition deserves to be dismissed with costs.
9.We do not propose to delve more on this in view of the conclusion arrived at by us supra. At the same time, we may observe that the petitioner, under the guise of public interest litigation, hereinafter should not make any attempt to file any petition, without verifying the correctness of the allegationS that he makes.
10.In view of all the above, the writ petition is dismissed. No costs.
gb To:
1.The Secretary to Government, Handicrafts, Textiles and Khadi Department, Chennai 600 009.
2.The Director, Handlooms Department, Kuralagam, Chennai 108.
3.The Assistant Director, Handlooms Department, 210, Palam Station Road, Chellur, Madurai 2.