R KRISHNARAJ Vs. JOINT REGISTRAR, CO-OPERATIVE SOCIETIES

JUDGEMENT

(1.) The petitioner was Special Officer in the Co-operative Agricultural Marketing Society at Cuddalore between 07/07/2010 and 07/06/2012. Noticing large scale irregularities in disbursement of loans, the Deputy Registrar Co-operative Societies, Cuddalore, ordered enquiry on 24/09/2013. The enquiry officer who conducted enquiry under Section 81 of the Tamil Nadu Co-operative Societies Act, 1983 (hereinafter referred to as "the Act") submitted his report on 01/04/2014 wherein, he has observed that the Special Officer (the petitioner herein) in connivance with the Accountant (K.Karunanithi) had done the following irregularities:-

(2.) The Enquiry Officer after finding that in total a sum of Rs.1,26,99,000/- was misappropriated by the petitioner and Karunanithi, has concluded that, the sum so misappropriated has been repaid later by Karunanithi along with interest. However, the criminal intend and knowledge to misappropriate the money of the society is primafacie made out, hence, recommended for criminal prosecution.

(3.) The said recommendation of the Enquiry Officer to initiate criminal prosecution was challenged by the petitioner in W.P.No.21776 of 2014 on the ground that under Section 81 of the Act, the Enquiry Officer has no power to recommend for criminal prosecution. As a Supervisory Authority for more than 7 societies, the Special Officer/the petitioner herein cannot be held criminally liable for the misdeeds of the Accountant of a society under his supervision.