PRESIDENT, M M 348, KOUNDAMPATTI PRIMARY AGRICULTURE COOPERATIVE CREDIT SOCIETY LIMITED Vs. JOINT REGISTRAR OF CO-OPERATIVE SOCIETIES; DEPUTY REGISTRAR OF COOPERATIVE SOCIETIES; RAJKUMAR; BOARD OF DIRECTORS

JUDGEMENT

(1.) Aggrieved by the impugned resolution, dated 31.05.2016, passed by the Board of Directors of M.M.348, Koundampatti Primary Agriculture Co-operative Credit Society Limited, Koundampatti, Tiruchirappalli District, passing ''no- confidence motion'' against the petitioner which is endorsed by the 3rd respondent/Co-operative Sub-Registrar, Managing Director, Trichirappalli District Cooperative Union, Trichirappalli, the petitioner has filed W.P(MD)No.9901 of 2016 to quash the same with the consequential prayer to forbear the respondents from in any way interfering with his functioning as President of M.M.348 Koundampatti Primary Agriculture Cooperative Credit Society Limited, Koundampatti, Tiruchirappalli District (hereinafter referred to as ''the society'').

(2.) Learned counsel for the petitioner would submit that after the petitioner was elected as the President of the Society by the Election Officer, he has been rendering dedicated and unblemished services to the Society by following the mandate of law. While so, the Board of Directors of the petitioner's society have committed various financial irregularities and misappropriation in connivance with one Mr.Ganapathy, Secretary and Mrs.Shanthi, Clerk/Cashier of the Society. In view thereof, the 2nd respondent/Deputy Registrar of Cooperative Societies, Trichy, ordered for an enquiry under Section 81 of the Tamil Nadu Co-operative Societies Act, vide proceedings dated 05.01.2016, to find out the irregularities committed by the Board of Directors. Since the 2nd respondent, in his proceedings dated 04.03.2016 directed to initiate action against the persons responsible for the irregularities, the President of the petitioner's Society has passed an order of suspension dated 16.03.2016, placing some of the erring employees of the Society under suspension, pending contemplation of the disciplinary proceedings. Immediately after the initiation of enquiry under Section 81 of the Tamil Nadu Co-operative Societies Act, the Board of Directors and some of the delinquent employees interfered with the affairs of the Society by holding agitations, therefore, the petitioner being the President of the society, lodged the complaints dated 23.03.2016 and 31.03.2016 respectively, to the Inspector of Police, Valanadu Police Station and also to the Deputy Superintendent of Police, Manapparai, to take action against the persons responsible for creating chaotic atmosphere and also to provide protection to the properties of the Society. Subsequently, the 2nd respondent has also issued proceedings, dated 29.03.2016, to all the Board of Directors and the erring employees of the society to co-operate with the enquiry. Learned counsel for the petitioner would also submit that the impugned resolution has not been recorded in the resolution book maintained by the Society, thus the same is not in accordance with the procedure established by law, hence, the impugned resolution, he pleaded, is liable to be set aside.

(3.) Placing reliance on Rule 62(3) of the Tamil Nadu Co-operative Societies Rules 1988 (hereinafter referred to as, ''the Rules''), he would submit that, if any requisition is made by not less than two-thirds of the existing members of the Board of the Society to hold a special meeting to pass ''no-confidence motion'' against the President of the society, the Registrar shall communicate a copy of the requisition to the office bearer concerned, calling upon him to make his representation, if any, within such time as may be prescribed by him. Moreover, the Registrar within 30 days from the date of receipt of such requisition, shall arrange to convene a special meeting of the Board of the Society for consideration of the resolution expressing no-confidence motion against the office bearer namely, President.