AKKAYAPALLI CO OPERATIVE HOUSE BUILDING SOCIETY LIMITED Vs. JOINT REGISTRAR DISTRICT CO OPERATIVE OFFICER

JUDGEMENT

(1.) This writ petition is filed for a mandamus to declare the action of Respondent No. 1 in ordering an inquiry under Section 51 of the Andhra Pradesh Cooperative Societies Act, 1964 (for short 'the Act') vide Rc. No. 4166/2010-D1, dated 11.10.2010, as arbitrary and illegal.

(2.) The Petitioner is a House Building Society. The Divisional Cooperative Officer, Kadapa, Respondent No. 2, has submitted his report, dated 06.10.2010, to Respondent No. 1, wherein he has pointed out that a sum of Rs. 89,32,539/- was found as imbalance in between loan outstanding of loans at Housefed level and member level of the Petitioner-Society. While submitting the said report, Respondent No. 2 has requested for instituting an inquiry under Section 51 of the Act. Placing reliance on the said report, Respondent No. 1 has ordered for inquiry into the affairs of the Petitioner-Society by appointing Respondent No. 3 as Inquiry Officer, At the hearing, Sri L.J. Veera Reddy, learned Counsel for the Petitioner, strenuously contended that the impugned order is in violation of the provisions of Section 51 of the Act, inasmuch as Respondent No. 1 has not exercised his suo motu power or that no requisite quorum for holding an inquiry was made either by 1/3rd of the Managing Committee Members or 1/5th of the total number of members of the Society.

(3.) Section 51 of the Act reads as under: