IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) THURSDAY, THE SIXTH DAY OF NOVEMBER TWO THOUSAND AND EIGHT PRESENT THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION NO.17530 of 2008 Between: Sri Venkateswara Large Seized Cooperative Society Limited, Dwaraka Tirumala, rep.by its President, Sri Achanta Ramachander Rao, S/o.Bapanayya aged about 49 years, Occ:Agriculture, R/o.Dwaraka Tirumala village & Mandal, West Godavari District. ...PETITIONER AND 1 The Joint Registrar/District Cooperative Officer, West Godavari District, Eluru. 2 The Asst.Registrar/Sub-Divisional Cooperative officer Chintalapudi, West Godavari District. ...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 writ order or direction more particularly one in the nature of writ of mandamus declaring the action of the 1st respondent in ordering an enquiry under sec.51 of A.P.C.S.Act 1964 in ROC(Coopn) No.3512/29008-C dated 1.8.2008 as illegal, arbitrary, violative of the provisions of the Sec.51 of the act and against principles of natural justice and consequently set aside the same. Counsel for the Petitioner: MR.S.APPADHARA REDDY Counsel for the Respondents: GP FOR COOPERATION The Court made the following: THE HON'BLE MR JUSTICE L.NARASIMHA REDDY WRIT PETITION NO.17530 of 2008 ORDER: The petitioner is a Co-operative Society registered under the Andhra Pradesh Co-operative Societies Act, 1964 (“the Act” for brevity). The District Co-Operative Oﬃcer-ﬁrst respondent herein, ordered enquiry under Section 51 of the Act into its functioning through his order dated 01.08.2008. The petitioner challenges the order dated 01.08.2008 passed by the ﬁrst respondent on the ground that it lacks clarity and a n omnibus enquiry is ordered contrary to Rule 47 of the Andhra Pradesh Co-operative Societies Rules, 1964 (“the Rules” for brevity). Heard Sri A.Ramalingeswara Rao, learned counsel for the petitioner and the learned Government Pleader for Co- operation. Section 51 of the Act empowers the Registrar of Co- operative Societies to order enquiry into the functioning of a Society, either on his own accord or on request made by 1/5th of the total membership or 1/3rd of the Managing Committee of the Society. In the instant case, the enquiry is ordered by the first respondent on his own accord. To that extent, there does not exist any illegality. To ensure objectivity in such enquiries, the Government framed Rules as to the manner in which the enquiry must be conducted. Rule 47 of the Rules mandates, inter alia, that the terms of reference of enquiry under Section 51 of the Act must be indicated. There is an underlying object behind this. Instead of undertaking a roving enquiry, the authority concerned has to concentrate on a speciﬁed aspect, so that the persons facing enquiry should also be in a position to offer their explanation. Though the basis for initiating the enquiry under Section 51 of the Act against the Society is indicated in the impugned proceedings, the terms of reference are not mentioned. In Cheranellur Co-operative Society v. Deputy Registrar[1], the Kerala High Court took the view that failure to indicate the terms of reference of an enquiry, under similar provision would lead to illegality. Hence, the Writ Petition is disposed of directing that the ﬁrst respondent shall indicate the terms of reference through separate set of proceedings within two {2} weeks from the date of receipt of a copy of this order and the enquiry shall proceed only on that basis. Till such terms are settled, further steps in pursuance of the impugned order shall stand stayed. _____________________ (L.NARASIMHA REDDY, J) 6th November 2008 RRB [1] AIR 1977 Kerala 76