R GANAPATHY Vs. DEPUTY REGISTRAR OF COOPERATIVE SOCIETIES

JUDGEMENT

(1.) THE prayer in this writ petition is to quash the judgment made in C.M.A. (CS) No. 77 of 1999 dated 20.2.2001 on the file of the second respondent.

(2.) THE case of the petitioner is that he served as Special Officer-cum-Sub Registrar of the Samuelpuram Employees Co-Operative Housing Society and he retired from service on 30.6.1993. While the petitioner served as Special Officer of the said Society from 20.12.1989 to 30.6.1993, the Housing and Urban Development Corporation (HUDCO) sanctioned a loan of Rs.30 lakhs to the Society for giving loans for construction of 67 houses by its members. Petitioner was-in-charge of the construction work and the said houses were constructed during the petitioner-s tenure, by utilizing the said sanctioned loan amount.

(3.) THE first respondent filed counter affidavit by stating that inspection report made under Section 82 was enclosed along with surcharge notice and the petitioner never complained that he was not served with copy of the enquiry report. THE petitioner being In-charge of the administration of the affairs of the Society, when commissions and omissions have happened, he is bound to pay the financial loss sustained by the Society. When HUDCO fixed interest at 12.5% p.a., the petitioner fixed Interest at 11.5% and thereby the, Society sustained loss. Similarly, the petitioner paid Rs. 1,00,000/- to the Contractor engaged for the electrical work and the said amount was excessive than estimated amount. THErefore, it is contended that the order of surcharge is just and proper.