Allowed

S Chandrasekhar v. The State of Andhra Pradesh

Andhra Pradesh HC22 Sept 2022WP/21400/2022

Case brief

AI extract

What is this about?

This common order disposed of two writ petitions challenging the grant of criminal sanction of prosecution against Molleru Primary Agricultural Cooperative Society members. The court allowed the petitions, setting aside the second respondent's sanction order and the third respondent's proceedings, directing the authorities to give a proper opportunity to the petitioners.

What did the court decide?

The writ petitions are allowed. The proceedings in Rc.No.901/2019-D(1) and Rc.No.386/2022 C (Coop) are set aside. Respondents are at liberty to proceed after giving an opportunity to the petitioners.

S Chandrasekhar Vs The State of Andhra Pradesh — Cooperative Societies | Andhra Pradesh HC (2022)

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HONOURABLE SMT. JUSTICE V. SUJATHA

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WRIT PETITION Nos.21400 of 2021 and 31320 of 2022

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COMMON ORDER :

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The issue involved in both these Writ Petitions is one and the same, hence both the Writ Petitions are disposed of by this common order.

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W.P.No.21400 of 2021:

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The writ petition is filed under Article 226 of the Constitution of India seeking the following relief:

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“...to issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of Mandamus declaring the action of the 4^th respondent in concluding the enquiry under Section 51 of the Andhra Pradesh Cooperative Societies Act, 1964 without giving proper opportunity or by giving the statement of charges levelled and further action of the respondent No.3 in directly issuing Rc.No.901/2019-D(1) dated 09.08.2021 contrary to the provisions of the Andhra Pradesh Cooperative Societies Act, 1964 particularly to Section 51, without following the directions of the 2^nd respondent vide Rc.No.3011/2019-A, dated 25.6.2021, as illegal, arbitrary and contrary to the bye-laws of the 5^th respondent, contrary to the principles of natural justice, violative of Fundamental Rights guaranteed under Article 14 of the Constitution of India and contrary to the provisions and procedure contemplated under the Andhra Pradesh Cooperative Societies Act, 1964 and Rules made therein.....”

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W.P.No.31320 of 2022:

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The writ petition is filed under Article 226 of the Constitution of India seeking the following relief:

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“...to issue an appropriate Writ, Order or direction more particularly one in the nature of Writ of Mandamus declaring the proceedings issued by the 2^nd respondent in Rc.No.386/2022 C (Coop), dated 18.8.2022 thereby according sanction of prosecution to initiate Criminal Action against the petitioners without concluding the Section 60(1) proceedings of A.P. Cooperative Societies Act, 1964 (herein after referred as the Act) without considering the stay order dated 29.9.2021 in I.A.No.1 of 2021 in W.P.No.21400 of 2021 of this Hon’ble Court, as illegal, arbitrary and without any authority of law, contrary to the procedure contemplated under the Act, contrary to the principles of natural justice, violative of Fundamental Rights guaranteed under Article 14 of the Constitution of India and contrary to provisions and procedure contemplated under the A.P. Cooperative Societies Act, 1964 and Rules made therein and consequently to set aside the same as arbitrary, null and void...”

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Brief facts of the cases are that the Molleru Primary Agricultural Cooperative Society, Molleru Village,

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Gangavaram Mandal, Alluri Sitharama Raju District was formed in the year 1964 with registration No.C-400/1964. The Society periodically conducts election as per the Rules in force. Presently the Society is grossing with a turnover of Rs.15 crores. Though the Society was in profits, due to the merger of other society namely M/s.Vellipudi PACS in the year 2005, the society is presently running under losses. Though the 1^st respondent announced rehabilitation packages for the losses, while merging loss making society, till date no proper relief is given to the society. The society is surviving by investing its funds in various schemes and

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benefits received like under Debt Waiver Scheme given by the Central Government and State Government. The society operation area is in Agency area, which is a remote area surrounded by Hills and forest, as such the income level of the members/farmers is also very less. As the elections to society were not conducted and the last extension so granted through G.O.Ms.No.10 dated 30.01.2019 is to expire by 28.07.2019 and thereafter the Three (3) Men-Non-Official person-in-charge Committee (PIC) under Chairperson of Sri Talari Tirupathi Rao was ordered and charge was taken from 31.07.2019.

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Upon complaints of the rival groups and politically motivated complaints, the authorities initiated Inquiry under Section 51 of the A.P. Cooperative Societies Act, 1964 vide R.C.No.3011/2019-A, dated 22.10.2019. Thereupon the inquiry under Section 51 of the Act was commenced by the Inquiry Officer. In such conditions President and some committee members filed W.P.No.17217 of 2019 before this Court, after notice and counter being filed the same was dismissed by order date 22.01.2020 on the ground that the functional autonomy granted under Section 115-D of the Act

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does not preclude an enquiry of this nature. Thereafter, the pandemic of Covid-19 started in the mid weeks of the March, 2020 and things took all different ways and all are also stayed back at their houses and could not prefer appeal.

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The Inquiry Officer issued notice dated 02.09.2020 calling upon the President to be present, in respect to allegations mentioned in the notice i.e., financial irregularities, misappropriation of funds, issuing benami loans and misuse of crop insurance funds etc., and similar notices are issued to the rest of the committee members. The Inquiry Officer questioned each of the members without

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giving the Statement of charges that are levelled against them, and not specifying whose members account is lacking the clarity. No documents are provided against the allegations levelled, informing they would be called again for further inquiry. The District Cooperative Officer, East Godavari District issued Notice in Rc.No.901/2019-D(I) dated 09.8.2021 under Section 60(1) of the Act by showing four (4) items as fraud totalling to Rs.3,16,64,042/-. Inquiry Officer has submitted the report based on depositions. The District Cooperative Officer issued review proceedings directing the

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Deputy Registrar/Divisional Cooperative Officer, Pedapuram to initiate proceedings under Section 60 of the Act along with other direction to initiate Civil, Criminal and institutional actions. As per the Section 51 of the Act, the matter shall be placed before the General Body of the Cooperative Society, which was not done.

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The District Collector, Alluri Sitharama Raju Disrict-2^nd respondent vide Rc.No.386/2022 C (Coop), dated 18.8.2022 has accorded sanction of prosecution to initiate Criminal action against President and Committee members without concluding the Section 60 (1) proceedings of A.P. Cooperative Societies Act, 1964 and without considering the stay orders dated 29.09.2021 in I.A.No.1 of 2021 in W.P.No.21400 of 2021 passed by this Court. Hence, the writ petitions.

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When the matter came up for admission on 29.09.2021, this Court passed the following interim order in W.P.No.21400 of 2021:

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“Having regard to the case set out by the petitioners in the main writ petition, there shall be interim stay of all further proceedings in Rc.No.901/2019-D(1) dated 09.08.2021 of the 3^rd respondent, until further orders.”

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While ordering notice before admission on 26.09.2022, this Court passed the following interim order in W.P.No.31320 of 2022.

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“… In view of the orders of this Court dated 29.09.2021, in I.A.No.1 of 2021 in W.P.No.21400 of 2021, there shall be an interim direction as prayed for till further orders.”

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The respondents filed counter stated that the Molleru Primary Agricultural Cooperative Society Limited was formed under the Andhra Pradesh Cooperative Societies Act, in the year 1964 and the said Society was formed for the benefit of Tribal farmers doing agriculture activities. The petitioners were appointed by the Government as Managing Committee Members up to 30.7.2019 and thereafter the society was managed by non official Person-in-Charge Committee appointed by the Government.

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It is further stated in the counter that on the proposals received from the Divisional Cooperative Officer, Peddapuram, Earst-while East Godavari District, the then District Cooperative Officer, Kakinada, under the power vested with him, vide G.O.Ms.No.34 Food & Agril. (Coop.IV) department dated 16.01.1989 and G.O.Ms.No.19 Agril. &

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Coop. (Coop.IV) Department, dated 01.02.1995 has ordered for the Statutory Inquiry under the Statutory provisions of Section 51 of the Andhra Pradesh Cooperative Societies Act, 1964 and upon conducting inquiry, inquiry report was submitted on 27.5.2021 and it was reported that huge funds of the society for Rs.3,16,64,042/involved in misappropriation and it was collective responsibility as against the managing committee members, who are the petitioners.

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It is further stated in the counter that the District Cooperative Officer, Kakinada has examined the said Statutory inquiry report under Section 51 of the Act into the affair of the Molleru Primary Agricultural Cooperative Society Limited and issued directions to the Divisional Cooperative Officer, Peddapuram to pursue Civil, Criminal and institutional action and also directed the Person-in-Charge to place the Statutory inquiry report along with review vide Rc.No.3011/2019-A, dated 25.6.2021 before the General Body and the same was placed before the General Body conducted on 25.11.2021 vide Resolution No.1 for discussion of the contents of the report.

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It is further stated in the counter that the Deputy Registrar of Cooperative Societies, Peddapuram issued Surcharge notice vide Rc.No.901/2019-D(1), dated 09.8.2021 under the Statutory Provisions of Section 60(1) of the Act and an opportunity had given to the petitioners for submitting his explanation, if any. Upon Surcharge notice under Section 60(1) of the Act, the petitioners filed W.P.No.21400 of 2021, whereas this Court granted interim stay of Rc.No.901/2019D(1), dated 09.8.2021.

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It is further stated in the counter that as per the recommendations made by the Statutory Inquiry Officer and also the directions issued by the then District Cooperative Officer, East Godavari District, the Collector & District Magistrate, Alluri Sitharama Raju District, Paderu vide Rc.No.386/2022-C (Coop) dated 18.8.2022, criminal action was initiated against the petitioners and a complaint was lodged by the District Cooperative Officer, Alluri Sitharamaraju District at Station House Officer, Gangavaram Police Station, Gangavaram Mandal. Aggrieved by the order dated 18.08.2022, the petitioners approached this Court.

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Heard learned counsel for the petitioners and the learned Government Pleader for Cooperation appearing for the respondents.

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On perusal of the Review Proceedings vide Rc.No.3011/2019-A, dated 25.6.2021 issued by the District Cooperative Officer, East Godavari, the Managing Committee of the Molleru Primary Agricultural Cooperative Society was directed to place the Inquiry report together with the findings therein, before the General Body or Special General Body convened for this purpose, within a period of one month of the communication of Inquiry report, in term of the provisions of under Section 51 of the Act. But, it appears that without waiting for placing the same before the General Body Meeting, the petitioners filed this writ petition. However, after filing the writ petition, the Inquiry report was placed before the General Body of the said Society on 25.11.2021.

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Learned Government Pleader for Cooperation has stated that in view of the same, the petitioners have an opportunity of submitting their explanation, if any, as per Section 51 of the Act.

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Considering the above submissions and in view of the interim orders passed by this Court in both the writ petitions, the Writ Petitions are allowed by setting aside the proceedings in Rc.No.901/2019-D(1), dated 09.08.2021 issued by the 3^rd respondent-Deputy Registrar/Divisional Co-operative Officer, Peddapuram in W.P.No.21400 of 2021 and Rc.No386/2022 C (Coop), dated 18.08.2022 issued by the 2^nd respondentDistrict Collector, Alluri Siharama Raju District, Paderu in W.P.No.31320 of 2022. However, the respondents are at liberty to proceed further, in accordance with law, by duly giving an opportunity to the petitioners. There shall be no order as to costs.

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As a sequel thereto, miscellaneous petitions, if any, shall stand closed.

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_______________ V. SUJATHA, J

Date: 02.01.2024

KGR

HONOURABLE SMT. JUSTICE V. SUJATHA

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WRIT PETITION Nos.21400 of 2021 and 31320 of 2022

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Date: 02.01.2024

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KGR

S Chandrasekhar v. The State of Andhra Pradesh

Case brief

What is this about?

What did the court decide?

S Chandrasekhar v. The State of Andhra Pradesh

Case brief

What is this about?

What did the court decide?

What the court decided

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