IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) FRIDAY, THE TWENTY NINETH DAY OF FEBRUARY TWO THOUSAND AND EIGHT PRESENT THE HON'BLE DR JUSTICE G.YETHIRAJULU WRIT PETITION NO : 22690 of 2004 Between: G.Satyanarayana, S/o.Kanakaiah, R/o.K.P.Palem, Mogalthuru Mandal, West Godavari District. ..... PETITIONER AND 1 The Deputy Registrar of Cooperative Societies/ Divisional Cooperative officer, Bhimavaram, West Godavari District. 2 Vadlavanipalem Primary Agricultural Cooperative Credit society Ltd., rep.by its Chairperson/person-in-charge, W.G.Dist. 3 Andhra Pradesh Cooperative Tribunal, Vijayawada, rep.by its Registrar. 4 G.Venkateswara Rao, S/o.Narasdimha Rao, Vadlavani Palem, W.G.Dist. 5 A.V.S.S.Sekhar Babu, Clerk, V.P.A.C.C.Society, Vadlavani Palem, W.G.District. .....RESPONDENT(S) 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 an order or direction or writ more particularly one in the nature of writ of Mandamus declaring the action of the 3rd respondent in fixing the liability on the petitioner who is not a party before it, and without any notice, as illegal, arbitrary, void and opposed to principles of natural justice and to set aside the orders passed in O.A.Nos.91/03 & 84 of 2003 on the file of the A.P.Co-operative Tribunal Vijayawada in so far it relates to fixing liability on the petitioner who is not a party before it and also to set aside all the consequential orders of the Deputy Registrar od Co-op societies, Bhimavaram vide proceedings Rc.No.184/2002/ B/D(S-I), dated 30-08-04 as the same are also illegal and pass such other order or orders Counsel for the Petitioner:MR.SUBRAHMANYAM KURELLA Counsel for the Respondent No.: GP FOR COOPERATION The Court made the following : HON’BLE Dr. JUSTICE G. YETHIRAJULU WRIT PETITION NO. 22690 of 2004 ORDER: This is a writ petition filed by the petitioner seeking to declare the action of the third respondent in fixing the liability on the petitioner in O.A.Nos.91 & 84 of 2003, as illegal and arbitrary and consequently to set aside the orders of first respondent dated 30.8.2004. The petitioner is the Ex-President of the Vadlavanipalem Primary Agricultural Cooperative Credit Society Ltd., the second respondent herein. An enquiry under Section 52 of the A.P. Cooperative Societies Act, 1964 was conducted against the petitioner and in the said enquiry the arbitrator found that the clerk and the Secretary of the second respondent-Society were responsible for appropriation of the amounts. Against the said findings, they preferred an appeal before the Cooperative Tribunal, third respondent herein and the third respondent while dismissing the appeal preferred by those persons, made an observation, which reads thus: “Therefore, the lower authority is directed to initiate action against the said G.Satyanarayana and the then President of the Society u/s.60 of the A.P.C.S. Act, 1964 on receipt of the orders from this Tribunal and to complete the said proceedings within 3 months.” In pursuant to that order, the first respondent issued proceedings against the petitioner under Section 60 (1) of the Act, which is being impugned under this writ petition. The impugned proceedings issued by the first respondent discloses that a show cause notice was issued to the petitioner asking him to explain as to why an amount of Rs.2.5 lakhs shall not be recovered from him jointly and severally along with the clerk and the Secretary of the second respondent-Society. When the enquiry under Section 52 of the Act was not made against the petitioner, the first respondent cannot directly issue the proceedings under Section 60(1) of the Act by way of surcharge proceedings in the light of the direction of the third respondent. If the first respondent is inclined, he may, first of all, initiate enquiry against the petitioner under Section 52 of the Act, conduct the enquiry after giving opportunity to the petitioner and if the enquiry discloses that a case is made out against the petitioner, then subsequent steps have to be taken under Section 60 of the Act. Therefore, the impugned proceedings issued by the first respondent is illegal and I am inclined to set aside the same. In the result, the Writ Petition is allowed and the proceedings dated 30.08.2004 issued by the first respondent under Section 60 (1) of the Act is set aside. The first respondent is directed to go through the order of the Cooperative Tribunal and if any incriminating material is found against the petitioner, then they may initiate the proceedings against him under Section 52 of the Act and pass appropriate orders after giving opportunity to the petitioner in the enquiry and then initiate the proceedings under Section 60 of the Act and pass appropriate orders in accordance with law. No costs. _________________ Dr. G. YETHIRAJULU.J 29th FEBRUARY, 2008 Tsr. To 1 The Deputy Registrar of Cooperative Societies/ Divisional Cooperative officer, Bhimavaram, West Godavari District. 2 The Chairperson/person-in-charge, Vadlavanipalem Primary Agricultural Cooperative Credit society Ltd., W.G.Dist. 3 The Registrar, Andhra Pradesh Cooperative Tribunal, Vijayawada. 4. Two C.C.s to G.P. for Municipal Admn. & Urban Development, High Court buildings, (OUT) 5. Two C.D. copies.