The Management, Nadumedu Milk Producers Co-operative… — Writ and Judicial Review | Madras HC (2026)

The Management, Nadumedu Milk Producers Co-operative… — Writ and Judicial Review | Madras HC (2026)

What the court decided

AI extract

Outcome

Civil Revision Petition disposed of with the clarification that impleading is only a first step; petitioner given opportunity to raise all grounds before the execution Court, which shall consider all such objections; connected C.M.P.No.2641 of 2026 closed; no costs.

Issue for consideration

Whether the Principal Labour Court's order impleading the Co-Operative Sub Registrar (liquidator) in the execution proceedings (R.E.A.No.1 of 2024 in R.E.P.No.210 of 2015) ought to be set aside, having regard to the Division Bench position that the liquidator pays only per the rules of disbursement on a claim petition and, if no amount is available, cannot be subjected to arrest proceedings.

Court's answer

Impleading the liquidator is only a first step; unless the liquidator is impleaded, the execution Court will not know whether the society is liquidated and, if so, whether any amount is available in his hands so as to realise the decree.

Ratio / Principle

Mere impleading does not put the liquidator in the shoes of the person to be arrested; it remains open to the liquidator to file a counter in the execution petition stating the financial position, to take the stand that the decree holder should file a claim petition before him, and to bring the Division Bench judgment to the notice of the execution Court.

Detailed headnote1 paragraphs

Execution – impleading of liquidator – wound-up co-operative society – award not complied with, execution prayer for arrest – liquidator appointed on 25.08.2022 impleaded by order dated 10.06.2025 in R.E.A.No.1 of 2024 in R.E.P.No.210 of 2015, Principal Labour Court, Salem – Management and Co-Operative Sub Registrar (liquidator) filed CRP under Section 227, Constitution of India – relying on Division Bench ruling in T.Balakrishnan v. Depositors Insurance Creditors (W.P.(MD) No.3751 of 2008 etc.), petitioner contended liquidator pays only per rules of disbursement on claim petitions and cannot be arrested if no funds exist – Court (D. Bharatha Chakravarthy, J.) found no quarrel with that proposition, but held impleading is only a first step: without it the execution Court cannot know whether the society is liquidated and whether funds lie with the liquidator for realisation of the decree – mere impleading does not put the liquidator in the shoes of the person to be arrested – liquidator free to file a counter on financial position, contend the decree holder must file a claim petition before him, and place the Division Bench judgment before the execution Court, whose objections the execution Court shall consider – CRP disposed of accordingly; connected CMP closed; no costs.

CRP No. 477 of 2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS

DATED: 05-02-2026

CORAM

THE HON'BLE MR.JUSTICE D.BHARATHA CHAKRAVARTHY

CRP No. 477 of 2026 and C.M.P.No.2641 of 2026

The Management, Nadumedu Milk Producer’s Co-operative Society, Nadumedu, Kamakkapalayam, Attur, Salem District.

The Co-Operative Sub Registrar (Legal/Official Liquidator), Sub-Registrar (Dairy) Office, Salem.

..Petitioners

Vs

P.Anbazhagan

..Respondent

Prayer: Civil Revision Petition filed under Section 227 of Constitution of India praying to set aside the order dated 10.06.2025 passed in R.E.A.No.1 of 2024 in R.E.P.No.210 of 2015 on the file of the Principal Labour Court, Salem.

For Petitioners: Mr.R. Balaramesh

ORDER

The Civil Revision Petition is filed challenging the order dated

10.06.2025 passed in R.E.A. No.1 of 2024 in R.E.P. No. 210 of 2015 on the file of the Principal Labour Court, Salem.

Page1 of 4

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

CRP No. 477 of 2026

It can be seen that the execution petition is filed since the award is not complied with. The prayer in the execution petition is for arrest. It seems that it was reported before the trial Court that the society has been wound up and a liquidator was appointed on 25.08.2022 and therefore the liquidator is a proper party and accordingly the decree holder has filed the above interlocutory application in which the impleading as prayed for was ordered. Aggrieved by the same, the present Civil Revision Petition is filed.

The learned counsel appearing for the petitioner would submit that as per the law laid down by the Hon’ble Division Bench of this Court in T.Balakrishnan and others versus The Depositors Insurance Creditors (W.P. (MD) No.3751 of 2008 etc.) , the liquidator will pay only as per the rules of disbursement as and when a claim petition is made and if no amount is available, the liquidator cannot be subjected to arrest proceedings.

There can be no quarrel over the said proposition. However, in this case, it is only a first step of impleading the liquidator. Unless the liquidator is impleaded, the execution Court will not be in a position to know whether the society is liquidated and if so, whether any amount is available in the hands of the liquidator so as to realise the decree and to grant such relief to the decree holder. Therefore, it will be very much open to the liquidator to file a counter in the execution petition stating the financial position and to take a stand that the

Page2 of 4

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

CRP No. 477 of 2026

decree holder should only file a claim petition before the liquidator and if no money is available, the same can also be straight away put on record and the Hon’ble Division Bench judgment can also be duly brought to the notice of the execution Court. The mere impleading itself would not amount to the liquidator being put in the shoes of the person to be arrested.

With that clarification and giving opportunity to the petitioner to raise all grounds before the execution Court and with the further observation that the execution Court shall consider all such objections, the Civil Revision Petition is disposed of. Consequently, connected Civil Miscellaneous Petition is also closed. No costs.

05-02-2026

Neutral Citation: Yes/No

NSL

To The Principal Labour Court, Salem.

__________ Page3 of 4

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

CRP No. 477 of 2026

D.BHARATHA CHAKRAVARTHY, J.

NSL

CRP No. 477 of 2026

05-02-2026

__________ Page4 of 4

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