THE HON’BLE SRI JUSTICE L.NARASIMHA REDDY Writ Petition No.18192 of 2009 ORDER: The petitioner herein initially filed C.R.P.No.4751 of 2000, against the order, dated 27.09.2000, in O.A.No.34 of 1995, passed by the A.P. Cooperative Tribunal, Vijayawada. The C.R.P. was directed to be converted into the writ petition. The petitioner functioned as President of the Primary Agricultural Cooperative Society of Erugavasam (for short ‘the society’). Inspection under Section 52 of the A.P. Cooperative Societies Act (for short ‘the Act’), was ordered into the affairs of the society by the District Cooperative Officer, Eluru, vide proceedings, dated 02.08.1993. Financial irregularities to the tune of Rs.53,327/- were noticed. This was followed by initiation of surcharge proceedings against the petitioner under Section 60 of the Act. It was alleged that the petitioner has undertaken credit sale of manures, contrary to the provisions of the Act. The petitioner has submitted his explanation, stating that the Managing Committee of the society authorized him to undertake credit sales, through a resolution. It is further alleged that a sum of Rs.22,065/-, recovered representing the sale proceeds, was stolen, when kept in the office of the society and that there are dues to a tune of Rs.31,262/-, from ten members. This explanation was not accepted by the Deputy Registrar of Cooperative Societies, Kovvur and he passed an order, dated 30.09.1994, directing to pay a sum of Rs.53,327/-, with interest at 8% recoverable from the petitioner. O.A.No.35 of 1995 filed by the petitioner before the Cooperative Tribunal was dismissed on 27.09.2000. Hence, this writ petition. Sri G.Krishna Murthy, learned counsel for the petitioner, submits that the 2nd respondent did not conduct any independent enquiry in the surcharge proceedings and passed an order solely on the basis of the inspection report. He submits that the petitioner was not given adequate opportunity to prove his innocence. Though the respondents are served with notices, they have not chosen to enter appearance. It is not in dispute that the credit sales of fertilizers to the tune of Rs.53,327/-, were undertaken at a time when the petitioner was the President of the society. Inspection under Section 52 of the Act was conducted and it was found that such a sale was not permissible under the Act and the Rules made thereunder. The petitioner sought to justify it on the strength of a resolution. Irrespective of the permissibility or otherwise of such sale, the petitioner could have avoided any action against him, if the value of the fertilizers sold on credit is recovered and remitted to the account of the society. Both during the course of inspection, under Section 52 of the Act, and in the surcharge proceedings, under Section 60 of the Act, the petitioner pleaded that a sum of Rs.26,000/- was stolen from the premises of the office and the balance was not recovered. Both the instances have only exhibited the lack of responsibility, on the part of the petitioner. As regards the amount that is said to be due from the 10 formers, hardly any steps were taken during his tenure. The contention of the petitioner that he was not given an opportunity in the said surcharge proceedings cannot be accepted. The reason is that in reply to a show cause notice, he submitted a detailed explanation. Except repealing the two facts, referred to above, he did not offer to disprove the allegation against him. The necessity to conduct oral enquiry would arise, if only surcharged person comes forward with denial of misappropriation or allegations against him. The petitioner did not dispute that he was responsible for sale of fertilizer worth Rs.53,000/- and that he did not remit any amount. In this scenario, there did not exist any necessity for the 2nd respondent to conduct enquiry. Hence, the writ petition is dismissed. However, the rate of interest is reduced to 6%, per annum. The petitioner is granted the facility of remitting the amount in 8 monthly instalments commencing from September, 2009, payable on or before 10th of every month. There shall be no order as to costs. ____________________ L.NARASIMHA REDDY, J. Dated:07.07.2009. Note:Furnish C.C. in one week. (B/o) GJ