1 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 19.10.2011 CORAM: THE HONOURABLE MR.JUSTICE K.CHANDRU Writ Petition (MD)No.1966 of 2011 C.Velayudham ... Petitioner Vs. 1.The Special Officer, The Kanyakumari District Commercial Taxes, Department and Registration Department, Employees Co-operative Thrift and Credit Society Ltd., No.K.N.102, Thulasinga Nilayam, Dennison Road, Nagercoil-1. 2.The Secretary, The Kanyakumari District Commercial Taxes, Department and Registration Department, Employees Co-operative Thrift and Credit Society Ltd., No.K.N.102, Thulasinga Nilayam, Dennison Road, Nagercoil-1. 3.The Joint Commissioner, (Commercial Taxes), C.T.Buildings, Dr.Balasundaram Road, Coimbatore-18. 4.The Deputy Commissioner, (Commercial Taxes) Kongu Nagar, 4th Street, Tiruppur-7. 5.The Commercial Tax Officer, Commercial Tax Office, Special Circle No.2, Tiruppur. 6.The District Judge, Kanyakumari District at Nagercoil. ... Respondents Prayer: Writ Petition is filed under Article 226 of the Constitution of India praying for the issuance of a Writ of Certiorari, calling for the records pertaining to the impugned order passed by the 6th respondent in C.M.A(CS)No.26 of 2010, dated 22.12.2010 and quash the same. For Petitioner : Mr.R.Subramanian For Respondents 1&2 : Mr.R.Russel Raj For Respondents 4 & 6 : Mr.Govindan, Spl G.P https://hcservices.ecourts.gov.in/hcservices/ 2 ORDER The petitioner was serving as Assistant Commercial Tax Officer and also a member in Kanyakumari District Commercial Taxes Department and Registration Department Employees Co-operative Thrift and Credit Society Limited. He borrowed certain amount as loan from the society and when the amount was not repaid, a dispute was initiated by the society against the petitioner before the Deputy Registrar in A.R.C.No.1618/2003-2004. After notice to the petitioner, an award was passed against the petitioner. Initially, the petitioner borrowed a sum of Rs.1 lakh on 03.11.2011 and executed necessary documents agreeing to pay the loan in 60 instalments along with interest at the rate of 17.5 % per annum. The arbitrator passed a decree against the petitioner. Thereafter, when the amount sought to be recovered, the petitioner preferred an appeal under Section 152 before the Co-operative Tribunal namely, the District Judge, Kanyakumari District. 2.The said appeal was taken on file as C.M.S.(CS).26/2010. In the grounds of appeal filed by the petitioner before the Tribunal, it was stated that he was not served with a copy of the award in spite of his request and because of his sickness, he could not move before the Arbitrator. It is also stated that he remitted a total amount of Rs.36,400/-. Out of the decretal amount of Rs.1,32,009/- he has paid the abovesaid amount. He also sent a letter to the then Special Officer seeking for a one time settlement and also to issue a no loan amount due certificate as he was to retire from service on 31.05.2010. His request for one time settlement was not considered and thereafter, exorbitant interest of 17.5% to 20.5% was charged. In the absence of the society giving a no objection certificate, he is unable to get full terminal benefits. 3.The Tribunal after notice to the society by order dated 22.12.2010 dismissed the appeal. However, the Tribunal observed that if any amount already paid by him that will be taken note of by the Society. It is against the said order of the Tribunal, the petitioner is before this Court. 4.When the matter came up on 22.02.2011, learned counsel for the petitioner states that the petitioner is willing to pay the entire amount and the dispute is only with reference to the payment of interest. Believing the words of the learned counsel, this Court granted an order of interim stay. Subsequently, by a further order, dated 17.03.2011, the interim stay was extended till 01.04.2011. 5.On notice from this Court, the first respondent Co-operative society has filed a counter affidavit, dated 30.03.2011 together with the typed set containing documents in support of the averments made in the counter affidavit. In fact in one of the letters addressed to the Joint Commissioner, Commercial Taxes Department, it was pointed out that several time, the petitioner has been advised to refund the amount which is as on the date of the letter namely on 20.04.2010 stands to the tune of Rs.2,36,842/- and there was no question of waiving either principal or the interest amount and each year, the society is audited by the auditors https://hcservices.ecourts.gov.in/hcservices/ 3 and the interest has been fixed on the basis of the circular in operation and also decree has been passed as early as in the year 2004 and even after 7 years after the decree, the petitioner was lodging this is only with a view to get all his terminal benefits without satisfying the loan towards the society. 6.In the counter affidavit filed by the society, it was stated that the society is itself borrowing loan from the Central Bank at the rate of 15% interest and further advance loan to its members and hence they have margin the money at 17.5% for lending loan to the members will become get frustrated and hence, the claim for loan waiving can never be accepted. 7.The contention raised by the petitioner in the writ petition was that the interest rate was exorbitant and the copy of the loan agreement was not given to him. The present notice was issued and the petitioner was about to be retired. It is not clear as to how such grounds are material to the impugned judgment passed by the Co-operative Tribunal confirming the arbitral award passed by the Deputy Registrar. Even before this Court at the time of admission, the petitioner has stated that there is no dispute regarding the principal amount and the dispute is only with reference to the interest. As the society is clearly explained that the amounts are borrowed by the society itself at the rate of 15%, if the petitioner is given any concession that will only erode the society's capacity to borrow further loan and the petitioner cannot borrow loan at the instance of the society. 8.Considering that the co-operative society originally run by the elected members, the petitioner cannot make unreasonable demand over the society. Being an Assistant Commercial Tax Officer, in the Commercial Tax Department, is well aware of the loan transaction and he must have known even at the time of signing the loan application as to the rate of interest. 9.As rightly pointed out by the respondents, he is some how lodging in paying the amount for the last 7 years, if he is permitted to retire by giving no objection certificate, he could not return the money. Such attitude of the petitioner cannot be accepted. Hence, there is no infirmity or illegality in the order passed by the Tribunal. Hence, the writ petition stands dismissed. No costs. Consequently, connected miscellaneous petition is closed. Sd/- Assistant Registrar (CO) /True Copy/ Sub Assistant Registrar To 1.The Joint Commissioner, (Commercial Taxes), C.T.Buildings, Dr.Balasundaram Road, Coimbatore-18. https://hcservices.ecourts.gov.in/hcservices/ 4 2.The Deputy Commissioner, (Commercial Taxes) Kongu Nagar, 4th Street, Tiruppur-7. 3.The Commercial Tax Officer, Commercial Tax Office, Special Circle No.2, Tiruppur. 4.The District Judge, Kanyakumari District at Nagercoil. 5.The Special Officer, The Kanyakumari District Commercial Taxes, Department and Registration Department, Employees Co-operative Thrift and Credit Society Ltd., No.K.N.102, Thulasinga Nilayam, Dennison Road, Nagercoil-1. 6.The Secretary, The Kanyakumari District Commercial Taxes, Department and Registration Department, Employees Co-operative Thrift and Credit Society Ltd., No.K.N.102, Thulasinga Nilayam, Dennison Road, Nagercoil-1. +1cc to Mr.R.Subramanian, Advocate, SR.No.36376 sms GH : 03.11.2011 : 4p/8c Writ Petition (MD)No.1966 of 2011 19.10.2011 https://hcservices.ecourts.gov.in/hcservices/