THE HON'BLE SRI JUSTICE N.V. RAMANA WRIT PETITION Nos.25809 and 25684 of 2002 and 1294, 2611 & 2055 of 2003 COMMON ORDER: As all these five writ petitions are inter-connected, they are heard together and are being disposed of by this common order. W.P. No. 25809 of 2002 and W.P. Nos. 1294 and 2611 of 2003 are filed praying to quash the common order dated 21.10.2000 passed by the A.P. Cooperative Tribunal, Vijayawada (hereinafter referred to as ‘the Tribunal’) in O.A. Nos. 192, 196 and 197 of 1998 respectively and consequently to set aside the surcharge proceedings issued in Rc. No.1341/96-C(7), dated 10.10.1998, while W.P. Nos. 25684 of 2002 and 2055 of 2003 are filed praying to quash the orders dated 21.10.2000 passed by the Tribunal in O.A. Nos. 194 and 195 of 1998 and consequently to set aside the surcharge proceedings issued in Rc.Nos.1341/96-C(4) and 1341/96-C(3), dated 20.04.1998 respectively. The Divisional Co-operative Officer, Peddapuram, who was appointed as Enquiry Officer, to conduct an enquiry into the affairs of Primary Agricultural Cooperative Society, Gopalapatnam (hereinafter referred to as ‘the society’), under the provisions of Section 51 of the A.P. Co-operative Societies Act, 1964 (for short ‘the Act’) having conducted the enquiry, filed his report on 29.07.1997, pointing out that the petitioner herein, who was the then President of second respondent-Primary Agricultural Cooperative Society, Gopalapatnam, was responsible for causing loss to the assets of the society. Based on the findings arrived at by the Enquiry Officer in his report, the first respondent-Deputy Registrar of Co-operative Societies, issued notices dated 20.04.1998 under Section 60(1) of the Act, to the petitioner herein and other delinquents against whom allegations of misappropriation were made. The first respondent, after receiving the written statements from the petitioner and others, and after recording the depositions of the witnesses, issued three surcharge proceedings dated 10.10.1998, fixing the liability against the petitioner for Rs.5,795/-, Rs.10,200/- and Rs.21,615/- respectively, and two surcharge proceedings dated 20.04.1998 for Rs.49,563/- and Rs.52,424/- respectively. Challenging the said surcharge proceedings, the petitioner herein filed the above O.As. The Tribunal, after considering the entire material available on record, held that the enquiry report coupled with the statement of the parties and the explanations given by them to the Deputy Registrar, clinchingly established that the petitioner herein was given sufficient opportunity by the Enquiry Officer as well as by the Deputy Registrar and that he had conducted elaborate enquiry, by verifying the material and examining the witnesses as contemplated under Section 60 of the Act, before passing the surcharge proceedings. Since all the tenets and principles of natural justice were followed, the Tribunal held that the petitioner, cannot complain that principles of natural justice were violated, and accordingly dismissed the O.As. The learned counsel for the petitioner submitted that as the Enquiry Officer did not conduct the enquiry properly and no opportunity whatsoever was given by the Deputy Registrar to put forth his case, the Tribunal ought to have set aside the surcharge proceedings, and it committed a grave error in confirming the same. He further submitted that after passing of the impugned orders by the Tribunal, the society filed execution proceedings and recovered the entire amount from the loanees, and as such, the petitioner is not liable to pay any amount. On the other hand, the learned Government Pleader for Co- operation submitted that the petitioner was given ample opportunity by the Enquiry Officer during the course of enquiry as well as by the Deputy Registrar, before passing the surcharge orders, and considering this, the Tribunal was justified in not interfering with the surcharge proceedings by reason of the impugned orders, and no interference is called for herewith. Thus, he prayed for dismissal of the writ petition. Heard the learned counsel for the petitioner and the learned Government Pleader for Co-operation for the respondents. As can be seen from the impugned orders, an enquiry with regard to the report made by the auditors about the financial dealings of the society, was conducted under Section 51 of the Act. The Enquiry Officer, having conducted the enquiry, submitted his report. Based on the enquiry report, the first respondent, initiated surcharge proceedings, and after considering the entire material available on record, including the materials placed by the petitioner, came to the conclusion that the petitioner herein in collusion with the Secretary indulged in illegal activity and accordingly fixed the liability against the petitioner, under the surcharge proceedings. The Tribunal, having analysed and re-appreciated the evidence in each case indpendently, held that the material available on record clinchingly proved the direct involvement of the petitioner in creating fictitious loan account to non- members and also in mismanaging the loan transactions. There are as many as five surcharge proceedings were passed against the petitioner, which is a clear indication of misappropriation. Though the petitioner contends that since the petitioner society recovered the amounts from the loanees, and therefore, the petitioner need not pay the surcharge amount, I am unable to agree with such a contention, because the recovery of the loan amounts from the loanees and the surcharge proceedings initiated against the petitioner are different. At any rate, in the initiation of surcharge proceedings and in the passing of the impugned by the Tribunal, neither principles of natural justice are violated nor fundamental rights of the petitioner are infringed, and no interference is called for therewith by this Court, particularly when they are based on proper appreciation of the evidence on record. The Writ Petitions are devoid of merit, and they are accordingly dismissed. There shall be no order as to costs. N.V.RAMANA, J Dated: 05.08.2010 Va/ksr