IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE TWENTIETH DAY OF AUGUST TWO THOUSAND AND FOUR PRESENT THE HON'BLE MR JUSTICE B.PRAKASH RAO WRIT PETITION No. 18022 of 2000 Between: 1 Akurathi Srinivasa Rao, S/o A.B.Sankara Rao, 2 Vangara Chitambara Rao, S/o Raghavaiah, 3 Macharla Seetaravamma, W/o M.D.Kanta Rao, 4 Vangara Venu Gopala Rao, S/o V.Veeraiah, .... PETITIONERS AND 1 Regional Deputy director, Handlooms & Textiles, Ongole, Prakasam District. 2 Battiprolu Weavers Co-op Production & Sale Society (Reg.No.926) Battiprolu Village and Mandal, by its President Divi Neelambar Rao, S/o Raghavaiah, R/o Kothapeta, Battiprolu Village and Mandal, Guntur Dist. (R2 is impleaded as per Court Order dated 28/7/2004 in WPMP 3869/2004) .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue any Writ, Order or direction particularly a Writ in the nature of Certiorari calling for the records from the Respondent herein leading up to and including the proceedings Rc.No.193/2000-B, dated 29-08-2000 declare it as arbitrary, illegal and unconstitutional and quash the same. Counsel for the Petitioner : Mr.Y.SUBRAHMANYAM Counsel for Respondent No.1: GP FOR COOPERATION Counsel for Respondent No.2 : Mr.V.RAGHU The Court made the following : ORDER: Heard both sides and at their request, the main writ petition itself is taken up for disposal. The petitioners herein seeks to assail by way of writ of mandamus the impugned order dated 29.8.2000 purported to have been passed under Section 60(1) of A.P. Cooperative Societies Act (Act 7 of 1964) as illegal and arbitrary. The main grievance of the petitioners is that subsequent to the enquiry conducted under Section 51 of the said Act and submission of the report, no independent enquiry was conducted by giving opportunity to the petitioners and straight away the impugned orders came to be passed accepting the said report under Section 51 of the Act. Hence, the writ petition. The learned counsel appearing for the respondents submitted that having regard to the enquiry conducted under Section 51 of the Act and the reports submitted thereon, the orders have been passed which are legal. Having considered the submissions made and also on perusal of the material, it can be seen that neither the impugned order nor the allegations as made in the counter affidavit, would show as to the conducting of any enquiry subsequent to the filing of report under Section 51 of the said Act. It is only on the basis of the said report, the impugned orders have been passed straight away under Section 60(1) of the Act. There cannot be any dispute in regard to necessity to conduct any fresh enquiry by providing opportunity to the petitioner as contemplated under Section 60(1) of the Act. The enquiry under Section 51 of the Act or report filed thereunder is purely an administrative one and would not in any way entitle the authorities to straightaway pass orders without conducting independent enquiry as contemplated under Section 60(1) of the Act. A Division Bench of this Court, following the unreported decision in Writ Appeal No. 1103 of 1988 and 1104 of 1988 dated 18.8.1998 of another Division Bench in V.Mani Apparao v. Cooperative Tribunal-Authority-cum-Principal District Munsif, Gudivada held that surcharge proceedings under Section 60 of the Act can be levied only after holding an enquiry as contemplated under law. Having regard to the same, I do not find any merit in the impugned order especially in the absence of any enquiry. In the result, the writ petition is accordingly allowed and the impugned order is set aside. No costs. It shall, however, open to the respondents to pass afresh orders after holding an enquiry by giving proper opportunity to the petitioner. ________________ B.PRAKASH RAO, J Date: 20.8.2004 DA/KVRK To 1 Regional Deputy director, Handlooms & Textiles, Ongole, Prakasam District. 2 Battiprolu Weavers Co-op Production & Sale Society (Reg.No.926) Battiprolu Village and Mandal, by its President Divi Neelambar Rao, S/o Raghavaiah, R/o Kothapeta, Battiprolu Village and Mandal, Guntur Dist. 3 Two CCs to the G.P. for Cooperation, High Court of A.P., Hyderabad. 4 Two CD copies.