IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED:18-12-2009 CORAM THE HONOURABLE MR.JUSTICE N.KIRUBAKARAN W.P.No.7226 of 2003 L.Subramani ... Petitioner Versus 1.The Registrar of Tamilnadu Co-op Societies, 170 Periyar E.V.R.Road, Kilpauk, Chennai-600 010. 2.The Special Officer, The Vaniyambadi Town Co-op Bank Ltd. Head Office, Flower Bazaar, Vaniambadi. 3.The Sub-Registrar of Co-operative Society (Addl.Charge) Tirupattur. .... Respondents Writ Petition filed under Article 226 of Constitution of India praying for the issuance of Writ of Mandamus directing the second respondent to return the entire amounts of Rs.3,34,106/- together with interest at 21% per annum collected from the petitioner under Vijay Priya Cash Certificates in No.4059, 4057 and 4058. For Petitioner :Mr.V.Lakshminarayanan For Respondents :Mr.R.Chandrasekaran for R2 Mr.P.Gurunathan Government Advocate for RR 1 and 3 ORDER The petitioner has come forward before this court seeking mandamus to the respondentS to pay matured amount of Rs.3,34,106/- collected from the petitioner under Vijay Priya Cash Certificate Nos.4059,4057 and 4058. 2. The case of the petitioner is that he is a mason and having account with the second respondent bank in S.B.A/c.No.11891. Under Vijay Priya Cash Certificate Scheme he deposited a sum of Rs.1,10,000/- and the second respondent issued two certificates for the said amount for Rs.55,000/- each. Again on 10.2.1997 he also https://hcservices.ecourts.gov.in/hcservices/ deposited a sum of Rs.50,000/-, and in toto Rs.1,60,000/- was deposited. The maturity date of all these certificates were 26.1.2002, 20.1.2002 and 16.2.2002 and the matured value of the certificates are Rs.1,14,849/-, Rs.1,14,849/- and Rs.1,04,408/-. All the cash certificates were signed by the authorised officers of the second respondent bank. On presentation of the certificates on maturity for getting refund of the matured value, the second respondent bank on verification informed the petitioner that a sum of Rs.60,000/- only was entered in to the books of the Bank. 3. It is the further case of the petitioner that the officials of the second respondent bank misappropriated the funds of the depositors and the petitioner was compelled to make a police complaint on 6.3.2002 against the manager Kasi, Secretary Adikesavan and Accountant Balasubramaniam of the second respondent bank. Subsequently he issued lawyer notice to the respondents to pay the entire amount of Rs.3,34,106/-. The first respondent issued summon to the petitioner for enquiry on 4.5.2002 and the petitioner submitted all the records. By proceedings dated 12.12.2002 the third respondent initiated disciplinary proceedings under Section 81 of the Tamill Nadu Co-operative Society Act against the employees and assured the petitioner to pay the entire amount. But as assured no amount was paid and hence the petitioner is before this court seeking refund of the maturity amount along with 21% interest per annum. 4. The first respondent filed counter affidavit stating that the petitioner deposited only Rs.30,000/- on 20.1.1992 under the Vijay Priya Cash Certificate Scheme and the maturity amount is Rs.58,269/- and that since on the date of maturity the petitioner did not turn up for receiving the matured amount, the amount was taken into matured deposits account. It is stated that in connivance with the petitioner, the officials of the second respondent altered the original deposit amount of Rs.30,000/- as Rs.80,000/- and issued all the three certificates. It is further stated in paragraph 5 of the counter affidavit that a criminal case has been registered in Crime No.8 of 2003 and the same is pending trial in the court of Judicial Magistrate-II, Vellore. It is further stated that till the criminal proceedings are disposed of, the amount remitted by the petitioner could not be paid. 5. The second respondent filed his counter affidavit taking the defence in the lines of the first respondent. 6. Mr.V.Lakshminarayanan, learned counsel for the petitioner submitted that the petitioner cannot suspect the bonafide of the officials of the second respondent. He being a mason, deposited his hard earning money under the scheme and he had no occasion to indulge forgery in connivance with the bank officials, to whom he https://hcservices.ecourts.gov.in/hcservices/ deposited the amount and got the certificates and for which the petitioner cannot be held liable and he is entitled to the amount along with interest. 7. Learned Government Advocate as well as learned counsel for the second respondent reiterated the contentions made in the counter affidavit. 8. Pursuant to the direction of this court, the entire file with regard to the matter is produced before this court. A perusal of the enquiry officer's report under Section 81 of the Co- operative Societies Act would reveal that the petitioner deposed before the enquiry officer by way of an affidavit dated 21.5.2002 stating that he deposited the amount with the bank. The findings given by the enquiry officer is as follows: @ vdnt ,t;tprhuiz Fwpg;gpl;Ls;sgo Mtz';fis jpUj;jpa[k; bgha; fzf;F vGjpa[k; nkhro bra;J cs;sJ/ jpU/ .ghyRg;gpukzpad; kw;Wk; mtUf;F cle;ijahf ,Ue;J cs;s jpUthsh;fs; bgh/cwPjh;. rp/kzp. nfh/fhrp. v!;/Mjpnfrtd;. m/mg;Jy; k$pj;. jpUkjp/ kyh;bfho. vk;/Fg;g[rhkp Mfpnahh;fs; kPJk; ,e;jpa jz;lid rl;lj;jpy; Fwpg;gpl;Lss chpa gphpt[fs; fPH; Fw;w tHf;F bjhlu ghpe;Jiu bra;fpnwd;@ 9. The aforesaid findings of the enquiry officer would reveal that the petitioner is no way involved in the alleged offence and it is only the official against whom criminal case was directed to be filed. 10. The Assistant Registrar passed an order under Section 81 of the Co-operative Societies Act initiating surcharge proceedings and passed orders dated 27.8.2003 against the officials of the second respondent and not against the petitioner. Therefore it is very clear from the proceedings of the respondents that the petitioner is no way involved in any of the offence. 11. It is the case of the petitioner that he deposited a sum of Rs.1,60,000/- and for which three certificates were issued. Though the counter affidavit states the complicity for involvement of the petitioner, the records of the respondents reflect that no such things was against the petitioner. 12. In any event if there is fabrication of documents and misappropriation of funds by the officials of the society, it is "Indoor management" of the society and for which a third party like petitioner cannot be denied his amount. https://hcservices.ecourts.gov.in/hcservices/ 13. Moreover, the learned Government Advocate submits that the first accused and other accused were acquitted by the criminal court in Crime No.8 of 2003 on the file of the Judicial Magistrate-II, Vellore. Hence this court has to necessarily order the writ petition as prayed for. The petitioner has proved that he deposited the amount and the respondent issued certificates and the maturity amount was not given for the three certificates. Without going into the maintainability of the writ petition against the respondents for refund of amount and directing the petitioner to avail alternative remedy by way of filing a suit against the respondent for recovery of money, this court directs the second respondent to pay the maturity value of Rs.3,34,106/- along with 9% interest from the date of maturity i.e. 29.2.2002 till realisation. The cash certificates matured as early as on 28.2.2002 and the writ petition was filed on 3.3.2003. This court will not be justified in directing the petitioner to go before the civil court for filing a suit for recovery at this distance of time. Hence in the interest of justice this court issues writ of mandamus directing the respondents to pay the maturity value of the above certificates along with 9% interest from 28.2.2002 till ti is paid. 14. The writ petition is allowed. However there will be no order as to costs. Sd/ Asst.Registrar /true copy/ Sub Asst.Registrar To: 1.The Registrar of Tamilnadu Co-op Societies, 170 Periyar E.V.R.Road, Kilpauk, Chennai-600 010. 2.The Special Officer, The Vaniyambadi Town Co-op Bank Ltd. Head Office, Flower Bazaar, Vaniambadi. 3.The Sub-Registrar of Co-operative Society (Addl.Charge) Tirupattur. +1cc to Mr.V.Raghavachari, Advocate Sr 69906 +1cc to Govt. Pleader Sr 69991 KG(CO) km/24.2. W.P.No.7226 of 2003 https://hcservices.ecourts.gov.in/hcservices/