Dismissed¶41

P.Latha v. the Principal Secretary to Government

Madras HC15 Sept 2025WP/34529/2025

Case brief

AI extract

What is this about?

Madras High Court, single judge (V. Lakshminarayanan, J.), decision dated 15.09.2025; W.P.No.34529 of 2025 / WMP No.38687 of 2025 dismissed. Keywords: pre-arbitration notice; demand notice; co-operative thrift and credit society; recovery from legal heirs of deceased member; loan of Rs.3,00,000/-; claim of Rs.9,48,365/- and earlier Rs.9,64,570/-; limitation plea to be raised before Arbitrator; Section 90 Tamil Nadu Co-operative Societies Act; no Certiorari/Mandamus against Section 90 proceedings; Article 226; Villupuram; salary recovery restrained sought; no cases cited.

What did the court decide?

The impugned communication is only a demand notice calling upon the legal heirs of the debtor to pay, and the Society is always entitled to issue such a notice in order to avoid wasteful litigation. ¶40

P.Latha Vs the Principal Secretary to Government — Writ and Judicial Review | Madras HC (2025)

What the court decided

AI extract

Outcome

Dismissed

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Issue for consideration

Whether the demand/pre-arbitration notice issued by the fourth respondent Society claiming Rs.9,48,365/- towards the loan of the petitioner's deceased husband is liable to be quashed, given the petitioner's plea that recovery is barred by limitation. +1 more

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Court's answer

The impugned communication is only a demand notice calling upon the legal heirs of the debtor to pay, and the Society is always entitled to issue such a notice in order to avoid wasteful litigation.

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Ratio / Principle

When the fourth respondent initiates arbitration under Section 90 of the Tamil Nadu Co-operative Societies Act, it is for the petitioner to raise all defences open to her, including limitation, before the Arbitrator and seek dismissal there.

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Key takeaways

There cannot be a Mandamus or Certiorari restraining the Society from proceeding further under Section 90 of the Tamil Nadu Co-operative Societies Act.ratio¶40

Detailed headnote1 paragraphs

Writ Petition under Article 226 (Certiorarified Mandamus) by P. Latha, legal heir of deceased Society member Murugan, challenging the demand notice (A.No.10032 dated 20.06.2025) issued by the fourth respondent, Villupuram Educational District School Education Employees Co.Op. Thrift & Credit Society Ltd., claiming Rs.9,48,365/- towards her late husband's loan of Rs.3,00,000/- (net Rs.2,70,000/- received), and seeking restraint on salary recovery; an earlier notice of 22.06.2023 had demanded Rs.9,64,570/-. HELD (V. Lakshminarayanan, J.): the impugned communication is only a demand notice on the legal heirs, which the Society is entitled to issue to avoid wasteful litigation; when arbitration under Section 90 of the Tamil Nadu Co-operative Societies Act is initiated, all defences including limitation lie before the Arbitrator; there cannot be a Mandamus or Certiorari restraining the Society from proceeding under Section 90. Writ Petition dismissed with no order as to costs; connected W.M.P. No.38687 of 2025 closed.

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W.P.No.34529 of 2025

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IN THE HIGH COURT OF JUDICATURE AT MADRAS

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DATED: 15.09.2025

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CORAM:

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THE HONOURABLE MR.JUSTICE V. LAKSHMINARAYANAN

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Writ Petition No.34529 of 2025 and WMP No.38687 of 2025

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P. Latha ... Petitioner

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Vs.

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The Principal Secretary to Government Department of Co-operative Society, Fort St. George, Chennai 600 009.

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The Registrar,

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Office of the Registrar of Co-operative Society, NV Natarajan Maligai, No.170, Periyar E.V.R. High Road, Kilpauk, Chennai 600 010.

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The Joint Registrar, Office of the Joint Registrar of Co-operative Society, Villupuram Region,

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Master Plan Complex District Collectorate Campus, Villupuram 605 602.

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F.V.107, Villupuram Educational District School Education Employees Co.Op. Thrift & Credit Society Ltd., Rep. By its Secretary, No.366, Sudhakar Nagar Main Road, CRP Complex, Villupuram 605 602.

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1/6

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https://www.mhc.tn.gov.in/judis

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W.P.No.34529 of 2025

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The Chief Educational Officer, Villupuram, Villupuram District 605 602.

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... Respondents

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Prayer : Writ Petition filed under Article 226 of the Constitution of India praying for, to issue a Writ of Certiorarified Mandamus, calling for the records relating to the order made in vide, A.No.10032 dated 20.06.2025 issued by the fourth respondent and to quash the same and subsequentl direct the fourth respondent not to initiate recovery proceedings for the above said loan from the petitionr's salary.

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For Petitioner : Mr.N.Vijayakumar

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For Respondents : Dr.S.Suriya Additional Government Pleader,

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for RR 1 to 3 & 5

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Mr.P.Vijayadevi, for R4

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ORDER

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I heard Mr.N.Vijayakumar, learned counsel for the petitioner,

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Dr.S.Suriya, learned Additional Government Pleader for the respondents 1

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to 3 and 5 and Ms.P.Vijayadevi, learned counsel for the fourth respondent.

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https://www.mhc.tn.gov.in/judis

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W.P.No.34529 of 2025

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The petitioner challenges the pre-arbitration notice that has been issued by the fourth respondent.

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The petitioner’s husband, one, Murugan had availed loan to the tune of Rs,3,00,000/- from the fourth respondent. He was a member of the fourth respondent Society. After deduction of the deposit amout of R.30,000/-, he received a sum of Rs.2,70,000/-. He passed away on 01.03.2009.

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The petitioner claims that a notice was issued to her calling upon to pay a sum of Rs.9,64,570/- on 22.06.2023. Instead of proceeding further by initiating the Arbitration proceedings, she has been visited with the impugned order for an amount of Rs.9,48,365/-. She pleads that the fourth respondent cannot initiate arbitration proceedings, since the recovery of amount that had been received by her husband is barred by time.

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All these issues can be addressed before the Arbitrator, when

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3/6

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https://www.mhc.tn.gov.in/judis

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W.P.No.34529 of 2025

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proceedings under Section 90 of the Tamil Nadu Co-Operative Societies Act are initiated. This is only a demand notice calling upon the legal heirs of the debtor to pay the amount. The Society is always entitled to issue a notice in order to avoid any wasteful litigation. When a notice of arbitration under Section 90 of the Tamil Nadu Co-operative Societies Act, is initiated by the fourth respondent, it is for the petitioner to raise all the defences open to her including that of limitation and get the same dismissed. There cannot be a Mandamus or Certiorari restraining the Society from proceeding further under Section 90 of the Tamil Nadu Co-Operative Societies Act.

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The Writ Petition is dismissed. There shall be no order as to costs.

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Consequently, the connected miscellaneous petition is closed.

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15.09.2025

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jv Internet : Yes Index : Yes/No Neutral Citation : Yes/No Speaking order/Non Speaking order

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https://www.mhc.tn.gov.in/judis

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W.P.No.34529 of 2025

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The Principal Secretary to Government Department of Co-operative Society, Fort St. George, Chennai 600 009.

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The Registrar, Office of the Registrar of Co-operative Society, NV Natarajan Maligai, No.170, Periyar E.V.R. High Road, Kilpauk, Chennai 600 010.

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The Joint Registrar, Office of the Joint Registrar of Co-operative Society, Villupuram Region, Master Plan Complex District Collectorate Campus, Villupuram 605 602.

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F.V.107, Villupuram Educational District School Education Employees Co.Op. Thrift & Credit Society Ltd., Rep. By its Secretary, No.366, Sudhakar Nagar Main Road, CRP Complex, Villupuram 605 602.

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