THE HON'BLE SRI JUSTICE C.V.NAGARJUNA REDDY W.P.No.29838 of 2010 Date : 31-3-2011 Between : Polamraju Raghava and another .. Petitioner and The Registrar of Co-operative Societies & Commissioner for Co-operation, Hyderabad and others .. Respondents Counsel for petitioners : Smt.Bobba Vijaya Lakshmi Counsel for respondent Nos.1, 3 & 4 : G.P. for Co-operation Counsel for respondent Nos.2, 5 & 6 : None The Court made the following : ORDER: This Writ Petition is filed for a mandamus to set-aside order in Rc.No.13922/2010/PC-I/GNT, dated 10-11-2010 passed by respondent No.1 whereby the term of the Managing Committee of respondent No.5-society with respondent No.6 as its President has been extended for a period of six months. Despite service of notice on respondent No.6, he has not entered appearance. No counter affidavit is filed by the other respondents. However, the learned Government Pleader for Co-operation, on the basis of the written instructions received by him, made his submissions. Petitioner No.1 is a member of respondent No.5- society. Petitioner No.2 is a member of Fresh Growers Co- operative Marketing Society Limited, which is affiliated to respondent No.2-Bank. Respondent No.6 is the President of respondent No.5-society and also a Director of respondent No.2-Bank. The petitioners averred that respondent No.6 borrowed a personal loan of Rs.20,000/- on 28-9-2006 from respondent No.5; that on 17-9-2010 he repaid Rs.27,200/- to respondent No.2 towards the said loan borrowed from respondent No.5; that though respondent No.6 ought to have settled the loan account with respondent No.5, obviously on realizing that he has incurred disqualification, has hurried himself into repaying the loan amount to respondent No.2, but the loan account with respondent No.5 has not been closed; that respondent No.6 failed to convene General Body meetings from 1-10-2009 to 30-9-2010 and thereby he incurred disqualification under Section 32(1-A) of the A.P. Co-operative Societies Act, 1964 (for short “the Act”) to continue as the President of respondent No.-5-society and also as Director of respondent No.2-Bank and that petitioner No.2 made representations dated 9-10-2010 and 21-10-2010 to respondent No.1 on the disqualification of respondent No.6 under Section 21-A(1)(b) of the Act r/w. Rule 24(1)(b) of the Rules made thereunder. The grievance of the petitioners is that despite these representations having been made, respondent No.1 failed to take any action against respondent No.6. The learned Government Pleader for Co-operation submitted that on receipt of the representations from petitioner No.2, respondent No.3 ordered an enquiry under Section 51 of the Act into the affairs of the society with specific reference to the alleged default of respondent No.6 and that the enquiry is pending. In my opinion, if the allegations made by the petitioners are true, respondent No.6 would incur disqualification for being continued as the President of respondent No.5-society and the Director of respondent No.2-Bank, in view of the specific provisions of Section 21- A(1)(b) r/w. Rule 24(1)(b) and also Section 32(1-A) of the Act, for the alleged default in repayment of the loan amount and also for his alleged failure to convene the General Body meetings for a period of one year. Mere ordering of enquiry into the affairs of the society would not satisfy the requirements of law. It is incumbent upon respondent Nos.1 and 3 to initiate appropriate action under the above mentioned provisions against respondent No.6 and after giving notice and an opportunity of being heard to him, if it is found that the allegations raised by the petitioners are correct, he shall be disqualified. For the above mentioned reasons, the Writ Petition is disposed of with the direction to respondent No.1 to take appropriate steps to hold an enquiry into the allegations made by the petitioners against respondent No.6 and take appropriate action in the light of the observations made hereinabove, within a period of one month from the date of receipt of a copy of this order. As a sequel to disposal of the Writ Petition, WPMP No.38020/2010 is disposed of as infructuous. __________________________ C.V. NAGARJUNA REDDY.,J Date : 31-3-2011 AM