THE HON’BLE SRI JUSTICE R.SUBHASH REDDY WRIT PETITION No.25842 of 2006 ORDER: In this writ petition, petitioners have questioned report, dated 20.04.2006, prepared by the second respondent - Inquiry Officer, Yenugupalli Primary Agricultural Cooperative Society, and Special Deputy Registrar/OSD o/o The District Cooperative Central Bank, Kakinada, East Godavari District, pursuant to the inquiry ordered under Section 51 of the Andhra Pradesh Cooperative Societies Act, 1964 (for short ‘the Act’). First petitioner is the wife and second and third petitioners are the sons of late Sri T.Venkata Swamy Naidu, who was a Director of Yenugupalli Primary Agricultural Cooperative Society, East Godavari District. On the ground that there is misappropriation of funds in Yenugupalli Primary Agricultural Cooperative Society, East Godavari, the first respondent - Commissioner for Cooperation and Registrar of Cooperative Societies, Kakinada, East Godavari District, has ordered inquiry under Section 51 of the Act by appointing the second respondent as an inquiry officer. The second respondent conducted inquiry and submitted report, dated 20.04.2006, to the first respondent. It is the grievance of the petitioners that the said inquiry report was prepared without any notice to them and certain findings are recorded against late Sri T.Venkata Swamy Naidu, who died on 01.07.2004 i.e. much before inquiry is conducted under Section 51 of the Act. It is the case of the petitioners that the inquiry officer has ordered to recover the amounts misappropriated from all the members of the Managing Committee i.e. President and Directors by fixing joint responsibility. Such a finding could not have been recorded against late Sri T.Venkata Swamy Naidu, as no opportunity was given to him during his lifetime, by conducting any inquiry. The second respondent has filed counter-affidavit. In the said counter-affidavit, while denying various allegations made by the petitioner, it is stated that Sri T.Venkata Swamy Naidu, who is the husband of the first petitioner and father of the second and third petitioners, was elected as Director of Yenugupalli Primary Agricultural Cooperative Society in 1995 and continued up to 2000. It is further stated that subsequently, as the elections could not be conducted, the elected committee was nominated as person-in-charge committee till 25.01.2003. It is also stated that late Sri Venkata Swamy Naidu was not examined and he was also not given any notice and all other directors have given statements, which were recorded. It is categorically stated that by inadvertence, his name was mentioned in the inquiry report. Under the scheme of the Act, inquiry is contemplated under Section 51 of the Act with regard to constitution, working and financial condition of a society. Although it is stated in the inquiry report that all the previous directors are responsible and misappropriated amount has to be recovered from them, the fact remains that no orders are passed fixing individual liability by any consequential proceedings initiated under Section 60 of the Act. As much as it is not in dispute that Sri T.Venkata Swamy Naidu, who is the husband of the first petitioner and the father of the second and third petitioners, died much before initiation of inquiry under Section 51 of the Act, and as it is stated in the counter-affidavit that late Sri T.Venkata Swamy Naidu was not given notice in the inquiry proceedings and his name was inadvertently mentioned in the inquiry report, it can be said that the findings recorded in the inquiry report are not binding on the petitioners and unless any independent inquiry is conducted, no orders can be passed fastening liability on them. For the aforesaid reasons, this writ petition is disposed of by declaring that the findings recorded in the inquiry report dated 20-04-2006 against late Sri T.Venkata Swamy Naidu are not binding on the petitioners. However, it is left open to the respondents to take such steps which are required to be taken under law by issuing necessary notice to the petitioners. __________________ R.SUBHASH REDDY, J 17th FEBRUARY, 2011. Kvni/MRR