BALASUBRAMANIAN AND ANOTHER Vs. DEPUTY REGISTRAR OF CO

JUDGEMENT

(1.) These two writ petitions are by the clerk and secretary of the Nazarath Co-operative-Bank, Ltd. Both of them are aggrieved by the order, dated 2 Feb. 1986, issued by the vice-president of the Nazarath Co-operative Bank, Ltd., Nazarath, to the following effect :

(2.) In challenging this order, what Sri V. Shanmugham, learned counsel for the petitioners, contends is as follows: The power to place the petitioners under suspension is traceable to S. 70 of the Co-operative Societies Act (Tamil Nadu Act 53 of 1961). That stage has not arisen yet because the enquiry under S. 65 of the Act is yet to commence and the question of prima facie case is yet to be established, therefore, there is no power to place the petitioners under suspension. Even otherwise, the petitioners have not been able to put on notice as to what was the nature of the complaint received from the District Revenue Officer. If the petitioners were informed that they would have appraised the officers concerned then they were not responsible for the distribution of the loans to the so called undeserved persons, but it was on the directions of the committee the loans came to be distributed.

(3.) Neither of these contentions is acceptable to me for the following reasons when the respondents' official, like the District Revenue Officer is of the prima facie view that the petitioners alone were responsible for the distribution of the loans to undeserving persons, certainly that complaint deserves to be looked into. Where, therefore, on the basis of the complaint, the Deputy Registrar directs that these two petitioners shall be kept under suspension it is not with reference' to S. 70 of the Act because a careful reading of the order, dated 24 Jan. 1986, stated so. In addition to placing the petitioners under suspension the Deputy Registrar orders an enquiry under S. 65 as well. Sec. 61 of the Act talks of an enquiry into the constitution, working and financial condition of a registered society. It is during the course of the enquiry if a prima faice case is made out, the officer or servant of the society may be suspended under S. 70 of the Act. This is totally an independent power. No doubt, that stage has not arisen yet in these cases. But this is not to be confused with the impugned orders which had come to be passed having regard to the nature of the complaint levelled against the petitioners by no less than a District Revenue Officer.