AIR 1993 ANDHRA PRADESH 6 ::(1992) 2 LS 72 ::(1993) 1 BankCLR 1 ::(1992) 3 Andh LT 50

Andhra Pradesh High Court

Hon'ble Judge(s): B. Subhashan Reddy , J

Andhra Pradesh Co-operative Societies Act (7 of 1964) , S.60, S.51, S.121— Proceedings for realisation of monetary loss due to dereliction of duty - No independent enquiry apart from administrative enquiry under S.51, initiated - Proceedings liable to be quashed for violation of statutory provisions under S. 60 as well as principles of natural justice. Constitution of India , Art.14— Where it was alleged that due to the acts of dereliction of duty on the part of the delinquent manager, the co-operative society suffered monetary loss and the surcharge @page-AP7 proceedings under S. 60 of the A. P. Cooperative Societies Act were started for realisation of the said loss from the delinquent, the proceedings were liable to be quashed because apart from the enquiry conducted under S. 51 of the Act, no independent enquiry was conducted. under S. 60 so as to make the delinquent liable. The enquiry under S. 51 of the Act is only an administrative enquiry for the satisfaction of the Registrar as to whether under S. 60 surcharge proceedings have to be initiated or not, Once the proceedings under S. 60 of the Act are initiated, the enquiry thereof should be akin to Civil Court enquiry as the Civil Court's jurisdiction is barred expressly in view of S. 121 of the Act. As no independent enquiry has been conducted to pass a decr....