THE HON’BLE MR JUSTICE L. NARASIMHA REDDY + Writ Petition No.15422 of 2007 % 24-10-2008 Between: T. Satyanarayana …Petitioner And The Joint Registrar/ District Cooperative Officer, West-Godavari District, Eluru and others …Respondents ! Counsel for Petitioner : Sri A.Ramalingeswara Rao ^ Counsel for Respondents : G.P. for Cooperation & Sri M.V. Durga Prasad, for R-4 < Gist: > Head Note: ? CITATIONS: THE HON’BLE MR JUSTICE L. NARASIMHA REDDY Writ Petition No.15422 of 2007 ORDER: The petitioner is the President of Gundugolanukunta Primary Agricultural Co-operative Credit Society Limited (for short ‘the Society’). He challenges the order dated 16-07-2007, through which, the Joint Registrar-cum-District Co- operative Oﬃcer, West-Godavari, at Eluru, the 1st respondent, initiated enquiry under Section 51 of the A.P. Co-operative Societies Act, 1964 (for short ‘the Act’). On an earlier occasion, based on the representation submitted by the Vice-President of the Society, the 4th respondent, and certain others, the 1st respondent caused inspection under Section 52 of the Act. Simultaneously, the 1st respondent proposed to take action against the petitioner, under Section 21 AA of the Act, leading to the disqualiﬁcation. An order dated 05-10-2006 was passed, declaring that the petitioner ceased to be the President of the Managing Committee. O.A.No.73 of 2006, ﬁled by the petitioner, before the A.P. Co-operative Tribunal, Vijayawada, was dismissed. Thereupon, the petitioner ﬁled W.P.No.1823 of 2007, challenging the order of the Tribunal, as well as the order confirmed therein. The writ petition was allowed on 16-03- 2007, holding that there was no basis for the 1st respondent, to pass the order dated 05-10-2006. It was pointed out that, it is only the report in an enquiry under Section 51, that can constitute the basis, for the action under Section 21 AA, and not after the report, submitted under Section 52 of the Act. Respondent No.4, and six others of the Society, submitted representation dated 20-06-2007 to the 1st respondent, with a request to cause enquiry under Section 51 of the Act, vis-à-vis the petitioner. Acting on the same, the 1st respondent issued the impugned proceedings, appointing the Divisional Co-operative Oﬃcer, Kovvur, to examine the records and ﬁx the responsibility against the concerned. The petitioner contends that an enquiry under Section 51 of the Act can be ordered by the 1st respondent, either suo motu, or on an application made by not less than 1/3rd of the members of the Committee, or not less than 1/5th of the total number of members, and that none of the above circumstances exist, in this case. It is urged that the 4th respondent failed in his attempts, to get the petitioner disqualiﬁed, on the basis of the proceedings under Sections 52 and 22 AA of the Act, and that this is a fresh attempt. Separate counter-aﬃdavits are ﬁled by respondents 1 to 3, and respondent No.4. According to them, the impugned proceedings completely accord with Section 51 of the Act, and the petitioner is making attempt only to cover up his lapses. Heard Sri A. Ramalingeswara Rao, learned counsel for the petitioner, learned Government Pleader for Co- operation, and Sri M.V. Durga Prasad, learned counsel for the 4 th respondent. It has already been pointed out that the earlier round of litigation, commenced with the issuance of notice, under Section 21 AA, and leading to the disqualiﬁcation of the petitioner; and ended with the setting aside of the order, passed by the 1st respondent. This Court observed that, it is only a report, submitted in an enquiry, conducted under Section 51, that can constitute the basis for the proceedings under Section 21 AA and not the report of inspection, under Section 52 of the Act. The Act provides for audit, enquiry and inspection under Sections 50, 51 and 52, respectively. The common factor, as regards these three exercises is, that, the ﬁndings recorded therein can lead to surcharge proceedings, under Section 60 of the Act. Apart from that, the ﬁndings in an enquiry under Section 51, would constitute the basis, for action under Section 21 AA. The manner in which the proceedings, under these provisions; can be initiated, diﬀers from each other. Audit under Section 50 is, almost a periodical exercise. Enquiry under Section 51 can be ordered by the Registrar, on his own motion, or on an application ﬁled by not less than 1/3rd of the members of the Managing Committee, or not less than 1/5th of the total members of the Society. Inspection under Section 52, on the other hand, can be ordered by the Registrar, on his own motion, or on an application by a creditor Society. In the instant case, the basis for the impugned proceedings dated 16-07-2007, directing enquiry under Section 51, is a representation dated 20-06-2007, ﬁled by the 4th respondent, the Vice-President and six others, of the Society. Therefore, it cannot be treated as an enquiry, ordered by the 1st respondent, on his own accord. Once that be so, there must have been representation of, at least, 1/3rd members of the Managing Committee, or 1/5th of the total members of the Society. The representation dated 20-06-207, submitted by the 4th respondent and certain others; does not satisfy this requirement. Therefore, the very basis for initiating the proceedings under Section 51 of the Act, by the 1st respondent, becomes defective. Once an Authority institutes proceedings under a provision, on the strength of a representation, he cannot sustain it, as the one, on his own accord, if the requirement under the provision is not satisfied. It is not open to the 1st respondent to treat the impugned order as the one, on his own accord, when, in clear terms, it is mentioned that he instituted the proceedings on the representation made by the 4th respondent, and certain others. On this short ground, the writ petition is allowed, and the impugned proceedings are set aside. This order, however, does not preclude the 1st respondent to take any steps, in accordance with the provisions of the Act, and the Rules made thereunder. There shall be no order as to costs. ________________________ Dt.24-10-2008. L. NARASIMHA REDDY, J. Note: L.R copy to be marked. (B/O)KO*