G ANASUYAMMA Vs. KANDULAPURAM PRIMARY AGRICULTURAL SOCIETY

JUDGEMENT

(1.) This writ petition is filed for a writ of Mandamus to declare the proceedings in surcharge order and the sale notice in E.P. No. 1/2001-2002 dated 5-2-2003 as illegal and arbitrary and consequently quash the same.

(2.) The brief facts of the case are that the petitioner is the wife of G. Nandi Reddy, a former President of the Society. During 1981-1985 allegedly certain irregularities were committed by him. Subsequently an inspection was conducted under Section 53 of the A.P. Co-operative Societies Act, 1964 (for short 'the Act') and it was found that the husband of the petitioner committed certain irregularities and caused deficiency to the assets of the society to the tune of Rs.25,848/- between 1981-1985. Basing on the inspection report, surcharge notice dated 25-1-1995, was served on the petitioner on 16-4-1995. Consequently the surcharge order was passed on 27-9-1996 to recover the amounts and proceedings were also initiated under Rules 52 and 53 of the A.P. co-operative Societies Rules 1964 (for short hereinafter referred to as 'the rules'). The petitioner did not appeal against the said proceedings. E.P. was also filed against the petitioner for recovery of the surcharge amount in E.P. No.1/2001-2002 dt.18-5-2001 and was entrusted to the competent authority for execution. Challenging the said proceedings, the present writ petition is filed.

(3.) The contentions of the learned counsel for the petitioner are of two fold viz., firstly; the surcharge proceedings ought not to have been initiated against her for the irregularities allegedly committed by her late husband while he was in office. Therefore, the surcharge order passed under Sec.60(1) of the Act and the consequential proceedings initiated under Rules 52 and 53 of the Rules are illegal. Secondly; no proper opportunity by way of conducting an independent enquiry was given to the petitioner before passing the order under Section 60(1) of the Act.