Full cooperative order -THE HON’BLE MR. JUSTICE D.KRISHNAKUMAR W.P.Nos.12706, 12689, 12905, 12979, 13016, 13260, 13311, 13330, 13185, 13225, 13229, 13238, 13251, 13396,— Senior Counsel for Mr.L.P.Shanmugasundaram W.P.No.12689 of 2021 : Mr.S.R.Rajagopalan Senior Counsel for Mr.C.Munusamy W.P.Nos.12979 and 13185/2021 : Mr.M.Baskar W.P.Nos.13780, 13787, 13790, 13794, 13788, 13800, 13803, 13805, 13808, 13810, 13814, 13817, 13820, 13822, 13823, 13827, 13834, 13837, 13840, 13829 : Mr.V.Janarthanan of 2021 For Respondents : Mr.P.Shanmugasundaram Advocate General, assisted by Mr.A.Selvendran, Government Advocate COMMON ORDER — Though the petitioners made allegations against the officials of the respondents with regard to interfering and harassing the petitioners without following due process of law, at this stage, the same cannot be gone into by this Court without placing any supporting materials to substantiate these allegations. 15. The learned counsel for the parties have raised the issue/contention with regard to maintainability of the writ petitions. This Court has not gone into the issue with regard to maintainability of the writ petitioners, in view of the statement made by the first respondent in the Status Report. 16. This Court has recorded above, the submission made by the learned Advocate General, based on the Status Report of the first respondent. It is made clear that if any action taken by the respondents is contrary to the procedures as contemplated under the Tamil Nadu Cooperative Societies Act, 1983 and Rules, 1988, it is always open to the elected office bearers of the Societies to agitate the same before the appropriate forum. 17. With the above observations, these writ petitions are disposed of. No costs. Consequently, connected miscellaneous petitions are closed.

IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 05.07.2021
CORAM:
THE HON’BLE MR. JUSTICE D.KRISHNAKUMAR
W.P.Nos.12706, 12689, 12905, 12979, 13016, 13260, 13311, 13330, 13185, 13225, 13229, 13238, 13251, 13396, 13509, 13544, 13569, 13684, 13766, 13780, 13787, 13790, 13794, 13788, 13800, 13803, 13805, 13808, 13810, 13814, 13817, 13820, 13822, 13823, 13827, 13834, 13837, 13840, 13829, 13650, 13699, 13745, 13752, 13754 & 13769 of 2021
and
WMP.Nos.14135, 13479, 13499, 13500, 13783, 14158, 13823, 13710, 13712, 13825, 14067, 13994, 14025, 14030, 14042, 14044, 14058, 14247, 14311, 14381, 14408, 14528, 14611, 14638, 14641, 14636, 14637, 14631, 14653,14660, 14665, 14645, 14648, 14682, 14672, 14675, 14686, 14688, 14696, 14703, 14709, 14694, 14705, 14507, 14538, 14583, 14593, 14597, 14614 of 2021 and 14436 of 2021

W.P.No.12706 of 2021
R.Elango .. Petitioner

vs.
1.The State of Tamil Nadu,
Represented by its Principal Secretary
to Government,
Cooperation, Food and Consumer
Protection Department,
Fort St.George, Chennai-600 009.

2.The Registrar of Cooperative Societies,
No.170, NV Natarajan Maaligai,
EVR High Road,
Poonamallee High Road, Kilpauk,
Chennai-600 010.

3.The Election Commission,
Tamil Nadu Cooperative Societies,
Represented by its Election Commissioner,
No.170, NV Natarajan Maaligai,
EVR High Road, Poonamallee High Road,
Kilpauk, Chennai-600 010. .. Respondents

Prayer: Writ Petitions filed under Article 226 of the Constitution of India praying for issuance of a Writ of Mandamus forbearing the respondents from dissolving or prematurely terminating the tenure of the petitioner as the President of the Parlur Primary Agricultural Cooperative Credit Society, elected in the year 2018 and other respective Cooperative Societies, in the elections conducted in accordance with the Tamil Nadu Cooperative Societies Act, 1983 and the Tamil Nadu Cooperative Societies Rules, 1988.
For Petitioners
W.P.Nos.12706, 12905, 13016, 13260,
13311, 13330, 13225, 13229, 13238,
13251, 13396, 13427, 13509, 13544,
13569, 13684, 13766, 13650, 13699,
13745, 13752, 13754, 13769 of 2021 : Mr. P.H.Arvind Pandian,
Senior Counsel
for Mr.L.P.Shanmugasundaram
W.P.No.12689 of 2021 : Mr.S.R.Rajagopalan
Senior Counsel
for Mr.C.Munusamy
W.P.Nos.12979 and 13185/2021 : Mr.M.Baskar
W.P.Nos.13780, 13787, 13790,
13794, 13788, 13800, 13803,
13805, 13808, 13810, 13814,
13817, 13820, 13822, 13823,
13827, 13834, 13837, 13840, 13829 : Mr.V.Janarthanan
of 2021
For Respondents : Mr.P.Shanmugasundaram
Advocate General, assisted by
Mr.A.Selvendran, Government Advocate
COMMON ORDER
These writ petitions have been filed by the elected office bearers of the Cooperative Societies, seeking for a direction forbearing the respondents from dissolving or prematurely terminating the tenure of the petitioner as President/officer bearers of the respective Cooperative Credit Societies, elected in the year 2018, in the elections conducted in accordance with the Tamil Nadu Cooperative Societies Act, 1983 and the Tamil Nadu Cooperative Societies Rules, 1988. Since the issue involved in these writ petitions are identical, they are disposed of by this common order.

2. Mr.P.H.Arvind Pandian, learned Senior Counsel for Mr.L.P.Shanmugasundaram, learned counsel appearing for the petitioner in W.P.No.12706 of 2021 etc., batch has drawn the attention of this Court to the averments made in W.P.No.12706 of 2021 and put forth the following submissions / contentions:
2.1. The petitioners are the elected President of the respective cooperative societies. The term of the elected members is 5 years as per Article 243-ZK of the Constitution of India. The third respondent, vide notification dated 05.03.2018, has announced elections to Cooperative Societies and in furtherance thereof, elections were conducted in stages at various places across the State of Tamil Nadu, whereby the petitioners were elected as President of the respective cooperative societies.

2.2. Several writ petitions were filed challenging the elections conducted during March, 2018 in W.P.(MD).No.7620/2018 and vide order dated 12.04.2018, this Court was pleased to stay all further proceedings in respect of the election process of the Tamil Nadu Cooperative Societies and vide final order dated 03.08.2018, this Court upon holding that the writ petitions is maintainable, had proceeded to appoint four Committees by appointing Retired Judges of this Court as the Chairman of each four zones and also directed the Committees to decide on the objections/complaints with respect of improper acceptance of nominations and improper rejection of nominations etc., in accordance with the provisions of the Tamil Nadu Cooperative Societies Act, 1983 and the Rules, 1988. Even at the time of election, dispute was raised and in pursuant to the order passed by this Court, Committee was constituted by the High Court and the said complaints were enquired into and decision was taken by the Committees. Now the term of the present office bearers of the petitioners Societies will expire in the year 2023.

2.3. While that being so, a Press Statement was given by the Hon’ble Minister for Cooperation, Food and Consumer Protection, Government of Tamil Nadu in Hindu (Tamil) Newspaper on 09.06.2021 and the relevant portion of the news item was also extracted in the affidavit. It is stated in the said press statement that several complaints received in respect of election of office bearers conducted for the last tenure and that suitable action would be taken on enquiring into those complaints. It is further stated that the Government would take a decision on dissolving the present elected board and would consider conduct of fresh elections.

2.4. The aforesaid statement made by the Hon’ble Minister for Cooperation, Food and Consumer Protection Department in the press conference would clearly show the intention of the Government to dissolve the elected Board of the Cooperative Societies, without completing their full tenure of five years and it would also affect the democratic functions of the Cooperative Societies and the said action will defeat the Constitutional Rights of the office bearers, who were elected under due process of law.

2.5. The intention of the Government is clear that a policy decision will be taken to dissolve the office bearers of all the Cooperative Societies in the State of Tamil Nadu and to conduct fresh elections for all the Cooperative Societies. The above intended act of the respondents would also clearly shows malice act on the part of the respondents.

3. Mr.S.R.Rajagopalan, learned Senior Counsel for Mr.C.Munusamy, learned counsel appearing for the petitioner in W.P.No.12689 of 2021 reiterated the contentions of Mr.P.H.Arvind Pandian, learned Senior Counsel and further submitted that there is no provision in the Act or Rules to eliminate / reduce the tenure of the office bearers of the Cooperative Societies and the Press Statement of the Hon’ble Minister for Cooperation, Food and Consumer Protection Department would clearly shows that a policy decision will be taken to dissolve the existing elected boards of the Cooperative Societies and therefore, the apprehension of the petitioners is reasonable. He would further add that if such a decision is taken by the respondents by dissolving all the Cooperative Societies, prematurely terminating the tenure of the office bearers , it would be clearly evident that the same is motivated and for personal gain and such action cannot be initiated by the respondents in an arbitrary and capricious manner without following due process of law.

4. Mr.M.Baskar, learned counsel appearing for the petitioners in W.P.Nos.12979 and13185 of 2021 has adopted the arguments of the learned Senior Counsels appearing for the petitioners in other writ petitions and emphasized that without following the procedures as contemplated under the Tamil Nadu Cooperative Societies Act, 1983, the respondents are harassing the petitioners and interfering in the discharge of their lawful duties as office bearers of the Cooperative Societies and if any action taken contrary to the Rules in dissolving all the elected boards of the Cooperative Societies, would amount to interfering with the democratic functions of the elected bodies and prays for appropriate orders.

5. Status Report has been filed on behalf of the first respondent in W.P.No.12706 of 2021, refuting the allegations made in the affidavit filed in support of the writ petition. In the Status Report, the first respondent has clarified that the Hon’ble Minister for Cooperation has not given statement to the effect that a policy decision would be taken for conducting fresh elections after dissolving the Societies and the said press report is contrary to the truth and the Hon’ble Minister has given reply stating that several complaints have been received against office bearers of Cooperative Societies and those complaints would be enquired as per law and action would be initiated appropriately and a decision would be taken. It is further stated in the Status Report that the Hon’ble Minister has stated during press meeting that the complaints with regard to mismanagement of Cooperative Societies will be enquired and after due consideration appropriate decision would be taken by the Government.

6. In the Status Report, the first respondent further stated that there are 7524 Societies functioning under the control of Registrar of Cooperative Societies and new Board of Directors assumed office in the year 2018 and misappropriation to the tune of Rs.119.62 Crores occurred in 291 Societies from 1.4.2018 to 31.5.2021 and still other Societies are also yet to be verified. For the alleged misappropriation occurred in the Societies to the tune of Rs.108.80 crores, enquiry under Section 81 of the Tamil Nadu Cooperative Societies Act, 1983 was ordered in 180 Societies and also inspection under Section 82 of the Act have been ordered in 111 Societies for the alleged irregularities to the tune of Rs.11.54 Crores.

7. It is further stated in the Status Report of the first respondent that allegations have been received that crop loans were disbursed to persons, who not in possession of any agricultural lands and not connected with agricultural activities. Wherever serious financial and other irregularities in the working of these Societies are brought to the notice, through the enquiry and inspection, follow up action such as surcharge action under Section 87, prosecution action, supersession of boards under Section 88, disqualifications of elected directors under Section 36 of the Tamil Nadu Cooperative Societies will be taken as per law. Besides, disciplinary action against the erring employees of Cooperative Societies, who are involved in the irregularities, will also be taken.

8. Mr.P.Shanmugasundaram, learned Advocate General, assisted by Mr.A.Selvendran, learned Government Advocate appearing for the State has drawn the attention of this Court to the aforesaid Status Report of the first respondent and contended that the writ petitioners have approached this Court on the basis of mere apprehension without any materials and they have misunderstood the Press Statement dated 09.06.2021 made by the Hon’ble Minister for Cooperation and since no action will be taken against the Petitioners Societies except following the due process of law and the procedures contemplated under the Tamil Nadu Cooperative Societies Act and Rules, the petitioners have no locus standi to file these writ petitions and therefore, these writ petitions are not maintainable and prays for dismissal of these writ petitions.

9. Mr.P.H.Arvind Pandian, learned Senior Counsel for the petitioner in W.P.No.12706 of 2021 has drawn the attention of this Court to paras 5, 6 and 8 of the Status Report of the first respondent and would contend that the first respondent has taken inconsistent stand in the Status Report and pending these writ petitions, the respondents have initiated action against the petitioners Societies and therefore, he attributed act of malice on the part of the respondents, with an intention to terminate the office bearers of the petitioners Societies.

10. Mr.S.R.Rajagopalan, learned Senior Counsel appearing for the petitioner in W.P.No.12689 of 2021 has refuted the allegations made in para 12 of the Status Report and would contend that records have been scrutinized by the Audit Team and they have given a clean chit to the petitioner society and now the respondents with ulterior motive has initiated action against the petitioner Societies and further urged that there is no clear stand taken by the first respondent in the Status Report, with regard to dissolving all the Cooperative Societies as expressed by the Hon’ble Minister in his Press Statement and therefore, the apprehension of the petitioners are well founded.

11. The contention of the petitioners is that a policy decision will be taken by the Government to dissolve the elected Boards of the Cooperative Societies without completing their full tenure of five years. In reply, the learned Advocate General would place on record that there is no such policy decision taken by the Government of Tamil Nadu to dissolve all the Cooperative Societies in the State of Tamil Nadu, who were elected for the period 2018-2023. He would further add that the Press Statement made by the Hon’ble Minister for Cooperation is only in the context that complaints were received against various Cooperative Societies for misappropriation of funds and mismanagement and it will be enquired and on due consideration, appropriate decision will be taken by the Government. The submission of the learned Advocate General based on the Status Report of the first respondent is placed on record. Thus, the said contention of the writ petitioners raised in these writ petitions is answered accordingly.

12. The next contention of the petitioners is that, as seen from the Status Report, the first respondent has alleged certain irregularities as against the writ petitioners Societies, which would clearly illustrate the malice action on the part of the respondents and that these Societies were inspected by the authorities without following the procedures as contemplated under the Tamil Nadu Cooperative Societies Act, 1983 and Rules, 1988.

13. In reply, the learned Advocate General made a submission that these writ petitions have been filed only based on assumptions and presumptions and if any complaint is received or if any irregularities found as against the office bearers of concerned Societies, by conducting enquiries and after due consideration, appropriate action will be taken in accordance with the procedures as contemplated under the Tamil Nadu Cooperative Societies Act, 1983 and Rules, 1988. Therefore, it is for the authorities concerned to enquire into the irregularities committed by any office bearers of the Societies and to take action against the office bearers concerned by following the procedures contemplated under the Tamil Nadu Cooperative Societies Act, 1983 and Rules, 1988. Hence, at this stage, this Court will not wish to decide the allegations of the petitioners raised in these writ petitions, as the contentions raised by the parties in all these writ petitions have to be raised before the appropriate forum at a later stage.

14. Though the petitioners made allegations against the officials of the respondents with regard to interfering and harassing the petitioners without following due process of law, at this stage, the same cannot be gone into by this Court without placing any supporting materials to substantiate these allegations.

15. The learned counsel for the parties have raised the issue/contention with regard to maintainability of the writ petitions. This Court has not gone into the issue with regard to maintainability of the writ petitioners, in view of the statement made by the first respondent in the Status Report.

16. This Court has recorded above, the submission made by the learned Advocate General, based on the Status Report of the first respondent. It is made clear that if any action taken by the respondents is contrary to the procedures as contemplated under the Tamil Nadu Cooperative Societies Act, 1983 and Rules, 1988, it is always open to the elected office bearers of the Societies to agitate the same before the appropriate forum.

17. With the above observations, these writ petitions are disposed of. No costs. Consequently, connected miscellaneous petitions are closed.

05.07.2021

Index : Yes / No
Internet : Yes / No
Jvm

To
1.The Principal Secretary to Government,
The State of Tamil Nadu,
Cooperation, Food and Consumer Protection Department,
Fort St.George, Chennai-600 009.

2.The Registrar of Cooperative Societies,
No.170, NV Natarajan Maaligai,
EVR High Road,
Poonamallee High Road, Kilpauk,
Chennai-600 010.

3.The Election Commissioner,
The Election Commission,
Tamil Nadu Cooperative Societies,
No.170, NV Natarajan Maaligai,
EVR High Road, Poonamallee High Road,
Kilpauk, Chennai-600 010.

D.KRISHNAKUMAR. J

Jvm

W.P.Nos.12706, 12689, 12905, 12979, 13016, 13260, 13311, 13330, 13185, 13225, 13229, 13238, 13251, 13396, 13509, 13544, 13569, 13684, 13766, 13780, 13787, 13790, 13794, 13788, 13800, 13803, 13805, 13808, 13810, 13814, 13817, 13820, 13822, 13823, 13827, 13834, 13837, 13840, 13829, 13650, 13699, 13745, 13752, 13754 and 13769 of 2021

05.07.2021