According to the petitioner, the first petitioner was working as Secretary Incharge and subsequently, retired from service. The second petitioner is working as Secretary Incharge, Chinna Salem Primary Agricultural Co-op. Credit Society, Chinna Salem, Villupuram District. When they were working in the said society during the period 2001-2002, they sanctioned fees payable to the counsels appeared before the High Court and paid the same to the counsels who were engaged by the Society.
2 The respondent ordered enquiry U/s. 81 of the Tamil Nadu Co-op. Societies Act with regard to misappropriation of funds of the society including the payment of fees paid to the counsels appearing for the cases filed against the societies and to the domestic enquiry officer. The petitioners have submitted detailed explanation to the enquiry officer. After enquiry, the enquiry officer submitted his report to the respondent. On receipt of the said report, the respondent issued show cause notice to those employees including the petitioners against whom charges levelled in the report submitted by the enquiry officer.
3 Pursuant to the explanation submitted by the petitioner, the respondent passed the impugned order, dated 24.7.2009 under Section 87 of the Tamilnadu Cooperative Societies Act. In the aforesaid proceedings, it was held that the petitioner caused a loss to the tune of Rs.37,925/- in respect of payment of fees paid to the counsels appearing for the Society. Challenging the aforesaid order, the petitioner has filed the present writ petition before this court.
4 The learned counsel for the petitioner would submit that the impugned order has been passed by the respondent after a lapse of 7 years without furnishing the copy of the enquiry report and further, it is submitted that the petitioner being the Secretary of the 2nd respondent Society, during the relevant period, has paid fees to the counsel and Senior counsel who appeared before this Court on behalf of the society. According to the learned counsel for the petitioner, the petitioner has been unnecessarily implicated in the Surcharge proceedings, as he was acted only in the interest of the Society. In the Surcharge proceedings, no allegation of misappropriation of funds of the Society from the payment of fees to the counsel who appeared before this Court for Society. Thus, the Surcharge proceedings passed against the petitioner is perverse and illegal. Hence, the impugned Surcharge proceedings is liable to the quashed in so far as the petitioner is concerned.
5 The learned Additional Advocate General submitted that on verification of record would reveals that the aforesaid amount drawn for the payment of counsel fees has been paid to the concerned counsels and also for engagement of Senior Advocates to defend the case before this court on behalf of the Society and also amount paid to the enquiry officer who conducted domestic enquiry under the Act. The learned Additional Advocate General fairly conceded before this Court that the impugned surcharge proceedings passed under Section 87 of the Tamilnadu Cooperative Societies Act against the petitioner alone is liable to be quashed.
6 In view of the facts and circumstances of the case and in view of the submissions made by the learned Additional Advocate General, the impugned order is quashed in so far as the petitioners are concerned. The facts of the present case would clearly shows that the Secretary of the Society is facing departmental proceedings as well as the Surcharge proceedings under the Tamilnadu Cooperative Societies Act for the payment of fees to the counsels who appeared before this Court for the Societies. According to the counsel, if the norms for payment of fees is fixed by the department, the employees would not face the departmental enquiry as well as Surcharge proceedings.
7 It is brought to the notice of this Court that there is no uniformity in the fees paid to the counsels who appeared before this Court on behalf of the Society. It is also brought to the notice of this court that some of the societies were not in a position to pay salary to the employees of the society due to paucity of funds and paid fees to their counsel without getting prior permission from the authorities. Therefore, in the interest of Society and also in the interest of the employees of the Societies, it is right time the department has to constitute a Committee to frame guidelines/norms for the payment of fees to the counsels uniformly. Once norms has been fixed for the payment of fees to the counsels, the employees of the Society will not face departmental proceedings as well as Surcharge proceedings at the hands of the higher authorities.
8 Therefore, in the interest of Societies as well as in the interest of employees, this Court feels that it is necessary to constitute a committee for framing guidelines/norms for payment of Counsel fees payable to the counsel for the concerned society. Hence, this court is inclined to constitute a Committee with the following members for framing guidelines/norms for payment of counsel fees payable by the Cooperative Societies and the Cooperative Banks.
1 Thiru S.T.S. Moorthy, Additional Advocate General, High Court, Madras 2 The Registrar of Tamilnadu Cooperative Societies, Chennai 3 The Registrar of Tamilnadu Cooperative Housing Societies, Chennai and 4 The Director of Handlooms & Textiles, Chennai.
5 The Registrar of Cooperative Milk Societies, Chennai The Committee shall frame guidelines/norms for the payment of counsel fees payable by the Cooperative Societies and the Cooperative Banks on or before 7.9.2017.
9 This Court, suo motu impleaded Chinna Salem Primary Agricultural Co-op. Credit Society, Chinna Salem, Villupuram District, as second respondent in the D.KRISHNAKUMAR, J.
vaan writ petition. Registry is directed to amend the cause title in the writ petition. The Society impleaded as the second respondent in the writ petition is directed to refund the recovered amount under the impugned order to the petitioners within a period of four weeks from the date of receipt of a copy of this order.
10 Accordingly, the writ petition is disposed of. No costs. Consequently, connected miscellaneous petition is closed.
11 For reporting compliance, post this matter before me on 7.9.2017 26.7.2017 Note: Registry is directed to amend the cause title in the writ petition as per the order passed hereinabove Speaking/Non Speaking order Index: Yes/No Internet:Yes/No Note: Issue order copy on 8.8.2017 vaan
1. The Deputy Registrar of Cooperative Societies, Tirukoilur Circle, Tirukoilur, Villupuram District.
2. The Chinna Salem Primary Agricultural Co-op. Credit Society, Chinna Salem, Villupuram District.
W.P.No.20276 of 2009 and M.P.No.2 of 2009 26.7.2017