SPECIAL OFFICER S 495 KRISHNAGIRI TALUK AGRICULTURAL PRODUCTS CO OPERATIVE MARKETING SOCIETY LTD Vs. PRESIDING OFFICER

JUDGEMENT

(1.) Heard both sides.

(2.) The Special Officer is the petitioner in all these writ petitions. These writ petitions are challenging the order dated 30.11.2007 passed by the first respondent-Cooperative Tribunal in C.M.A.(CS) Nos. 39/2005 and 43/2005.

(3.) Surcharge proceedings were initiated against the respondents 3 to 7, who were employed in the petitioner-Society. Some of them are employees and some of them are Members of the Board. The allegations made against them by the Surcharge Officer was that one Sellamuthu, Director of Selvanayaki Jinning Press at Tharapuram and his son Natarajan, purchased cotton on credit basis which are agricultural produce produced by the members of the petitioner-Society. Since the due amount was not settled, arbitration proceedings were initiated against those persons. The Arbitral Authority, under Section 90 of the Tamil Nadu Co-operative Societies Act, decreed the proceedings claiming to a sum of Rs. 75,78,831/-. Thereafter, in execution of the decree passed against M/s.Selvanayaki Jinning Press, Tharapuram, an Execution Petition in E.P. No. 10/2000 was also filed. On coming to know that the properties were attached by the petitioner-Society, those persons created equile mortgage of their properties with State Bank of India, Tharapuram and the Bank also filed a claim against the debtors in O.A. No. 771/1997 before the Debts Recovery Tribunal, Chennai. The said Original Application was transferred to Debts Recovery Tribunal, Coimbatore and the properties have been sold and the net proceeds were taken away by the State Bank of India, Tharapuram.