WA/3408/2023 of State of Tamil Nadu Vs B.Maximus on 28 August 2026

Judgment

(Judgment of the Court was delivered by S.M.Subramaniam J.) The present writ appeal has been instituted by the State challenging the writ order dated 12.04.2022 passed in W.P.No.34197 of 2016.

2. The respondent filed writ petition challenging the charge memo dated 09.10.1997 issued by the Deputy Registrar of Cooperative Societies (Housing) under Rule 17B of the Tamil Nadu Civil Services (Discipline and Appeal) Rules. The respondent was holding the post of Senior Inspector of Cooperative Societies and deputed as Special Officer in the Cooperative Society. Three fold actions were initiated against the respondent. A criminal case was registered through Commercial Crime Investigation Wing, departmental disciplinary proceedings were initiated under Rule 17B of the Discipline and Appeal Rules and simultaneously Surcharge proceedings under Section 87 of the Tamil Nadu Cooperative Societies Act were initiated to recover the financial loss occurred to the Society. The writ Court set aside the charge memo as well as surcharge proceedings/

3. Pertintently, the procedures to be followed in a departmental proceedings and surcharge proceedings under the Tamil Nadu Cooperative Societies Act are distinct and different. Therefore, entertaining a writ petition challenging both proceedings by itself is not in consonance with the provisions of law. In a Surcharge proceedings, separate trial will be conducted by the competent authority by following the procedures as contemplated under the Tamil Nadu Cooperative Societies Act. In respect of the departmental proceedings, the disciplinary authority has to conduct domestic enquiry by following the procedures as contemplated under the Tamil Nadu Civil Services (Discipline and Appeal) Rules. However, the Writ Court has quashed both the proceedings, which in the opinion of this Court is not in accordance with law.

4. However, it is brought to the notice of this Court that the respondent died on 20.01.2025 during the pendency of the litigation. Though the Department has concluded the enquiry proceedings, final order has not been passed. Thus, the departmental proceedings initiated under the Tamil Nadu Civil Services (Discipline and Appeal) Rules got abated. In respect of

Surcharge Proceedings under Section 87 of the Tamil Nadu Cooperative Societies Act is concerned, the competent authorities are empowered to recover the financial loss from the legal heirs of the deceased employee by following the procedures as contemplated under the Tamil Nadu Cooperative Societies Act and the Rules independently. Since the present Surcharge proceedings quashed by the Writ Court Court is only against the respondent, the competent authority are at liberty to proceed against the legal heirs of the deceased employee for recovering the financial loss by following the procedures as contemplated under the Tamil Nadu Cooperative Societies Act. In respect of the disciplinary proceedings, no further actions are required. All further proceedings, if necessary, may be taken under the Tamil Nadu Cooperative Societies Act only to recover the financial loss occurred to the Society.

5. With the above clarifications, the writ appeal stands disposed of. No costs. Consequently, connected miscellaneous petition is closed. (S.M.S.,J.) (K.G.R.,J.) 28-08-2026 Index: Yes Speaking order Neutral Citation: Yes KST

To

1. The Secretary to Government, Cooperation Department, Secretariat, Chennai-9.

2. Registrar Of Cooperative Societies Chennai-10.

3. Joint Registrar Of Co-operative Societies Kancheepuram.

4. Joint Registrar Of Cooperative Societies Tiruvallur.

5. Deputy Registrar Of Co-operative Societies Kancheepuram.

6. Deputy Registrar Of Co-operative Societies (housing) Chengalpat, kanchipuram District.

S.M.SUBRAMANIAM J. AND KRISHNASWAMY GOVINDARAJAN J. KST WA No. 3408 of 2023 AND CMP NO. 27938 OF 2023 28-08-2026