NIRMAL KUMAR SEN Vs. LT GOVERNOR

JUDGEMENT

(1.) Challenge in this writ petition is to the order dated 28th August, 2006 of the Administrator, Andaman and Nicobar Islands, being the appellate authority, confirming the order passed by the Registrar of Co-operative Societies, Andaman and Nicobar Islands (hereafter the Registrar) dated 16.08.2002, and thereby rejecting the appeal preferred by the petitioner under Section 68 of the Andaman and Nicobar Islands Cooperative Societies Regulation, 1973 (hereafter the Regulation). By the order dated 16th August, 2002, the Registrar had initiated proceedings against the petitioner under Section 54 of the Regulation. He made an order of surcharge directing the petitioner to make good an amount of Rs. 1,54,251/ - towards the loss caused to the Andaman and Nicobar State Co-operative Bank Limited, Port Blair (hereafter the Bank) on account of reversal of entry in the overdraft account of M/s. Classic Enterprises (in which Shri Tapan Sen, son of the petitioner was a partner). The petitioner was also directed to make good to the Bank an amount of Rs. 370.19 lakh within two months from date of communication of the order, failing which liberty was reserved to the Co-operative Department for initiation of execution proceedings in accordance with the Regulation and the rules framed thereunder.

(2.) Since this writ petition has been prefaced by three previous writ petitions and two writ appeals and it is being heard on remand, it would be appropriate to give a composite picture of the facts involved herein.

(3.) The petitioner was the Managing Director of the Bank. The Registrar by an order dated 1st November, 1993 had directed Shri Justine Periera, Auditor to investigate into the various financial irregularities committed by the petitioner "including sanctioning of excess over the overdraft limit." Report submitted by Shri Periera on 12th January, 1994, revealed a serious state of affairs in the Bank. Even the audit for the year 1992-93 of the Bank, conducted by the said Shri Periera and his report dated 7th March. 1994 pointed to financial irregularities. These were followed by further inspection and inquiry for the purpose of fixing responsibility. The report of inquiry submitted on 23.8.1994 once again reflected substantial financial irregularities.