Case Note & Summary
The contempt appeal was filed by Z.Khalidha Banu, Deputy Registrar of Co-operative Societies, Erode Circle, against an order dated 06.12.2024 in Cont.P.No.2922 of 2024. The writ court had directed the Deputy Registrar to pass final orders on surcharge proceedings under Section 87 of the Tamil Nadu Co-operative Societies Act, 1983 within six weeks. The Deputy Registrar could not comply due to the pendency of Writ Appeal No.1676 of 2024 filed by the respondent. The respondent then filed a contempt petition, and the learned Single Judge imposed a cost of Rs.25,000 on the Deputy Registrar and directed refund of the surcharge amount of Rs.1,82,000. The Division Bench held that the Deputy Registrar's inability to comply was not wilful, as the writ appeal was pending and surcharge proceedings require a quasi-judicial inquiry akin to a civil suit. The court set aside the contempt order, noting that contempt proceedings cannot be used to enforce compliance when a substantive appeal is pending. The appeal was allowed, and the contempt petition was closed.
Headnote
A) Contempt of Court - Wilful Disobedience - Pendency of Appeal - The contempt order imposing costs and refund was set aside as the Deputy Registrar's inability to comply was due to the pendency of a writ appeal and the quasi-judicial nature of surcharge proceedings, not wilful disobedience - Held that contempt proceedings cannot be used to enforce compliance when a substantive appeal is pending (Paras 2-4, 7-8).
B) Co-operative Law - Surcharge Proceedings - Section 87 of Tamil Nadu Co-operative Societies Act, 1983 - Surcharge proceedings are quasi-judicial and must be conducted akin to a civil suit with proper inquiry and opportunity of hearing - The Deputy Registrar cannot be compelled to pass orders without following due process (Paras 5-6).
C) Contempt of Court - Costs and Refund - Proportionality - The order directing refund of surcharge amount and payment of costs was disproportionate and beyond the scope of contempt jurisdiction - Held that contempt court cannot direct refund of amounts collected under statutory proceedings (Paras 7-8).
Issue of Consideration
Whether the contempt order imposing costs and directing refund of surcharge amount was justified when the Deputy Registrar was unable to comply due to pendency of a writ appeal and the nature of surcharge proceedings.
Final Decision
The contempt appeal is allowed. The order dated 06.12.2024 passed in Cont.P.No.2922 of 2024 is set aside. The contempt petition is closed. Consequently, CMP.29158 of 2024 is closed.
Law Points
- Contempt proceedings cannot be used to enforce compliance when a substantive appeal is pending
- Wilful disobedience requires deliberate and intentional violation
- Surcharge proceedings under Section 87 of TNCS Act are quasi-judicial and require proper inquiry
- Costs and refund orders in contempt must be proportionate and based on wilful default
Case Details
2025 LawText (MAD) (01) 450
Cont.A.No.10 of 2024 and CMP.29158 of 2024
S.M.SUBRAMANIAM, M.JOTHIRAMAN
Mr.M.S.Palaniswamy, Mr.C.Prakasam
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Contempt appeal against order imposing costs and directing refund in contempt proceedings for alleged wilful disobedience of writ court order.
Remedy Sought
Appellant sought to set aside the contempt order and purge herself from contempt proceedings.
Filing Reason
Appellant was unable to comply with writ court direction to complete surcharge proceedings within six weeks due to pendency of writ appeal and quasi-judicial nature of proceedings.
Previous Decisions
Writ court in W.P.No.30477 of 2018 directed Deputy Registrar to pass final orders on surcharge proceedings within six weeks. Contempt petition No.2922 of 2024 resulted in order dated 06.12.2024 imposing costs and directing refund.
Issues
Whether the contempt order was justified when the Deputy Registrar's inability to comply was due to pendency of a writ appeal and the quasi-judicial nature of surcharge proceedings.
Whether the contempt court could direct refund of surcharge amount and impose costs without establishing wilful disobedience.
Submissions/Arguments
Appellant argued that she could not complete surcharge proceedings within six weeks due to pendency of Writ Appeal No.1676 of 2024 and the quasi-judicial nature of proceedings requiring proper inquiry.
Respondent contended that the Deputy Registrar wilfully disobeyed the writ court order and sought enforcement through contempt.
Ratio Decidendi
Contempt proceedings cannot be used to enforce compliance when a substantive appeal is pending against the original order. Wilful disobedience requires deliberate and intentional violation, which was absent as the Deputy Registrar was unable to comply due to the pendency of the writ appeal and the quasi-judicial nature of surcharge proceedings. The contempt court exceeded its jurisdiction by directing refund of the surcharge amount and imposing costs without establishing wilful default.
Judgment Excerpts
The contempt appeal on hand has been instituted to assail the order dated 06.12.2024 passed in Cont.P.No.2922 of 2024 in W.P.No.30477 of 2018.
Admittedly, the Deputy Registrar was not in a position to complete the surcharge proceedings within a period of six weeks as directed by the writ Court. Meanwhile, Writ Appeal No.1676 of 2024 has been instituted by the respondent and the same is pending now.
Surcharge proceedings are to be conducted akin to that of Civil Suit under the Code of Civil Procedure.
Procedural History
Writ petition W.P.No.30477 of 2018 was disposed on 21.07.2023 directing Deputy Registrar to pass final orders on surcharge proceedings within six weeks. Respondent filed Writ Appeal No.1676 of 2024 against the writ order, which is pending. During pendency, respondent filed Cont.P.No.2922 of 2024, which was allowed on 06.12.2024 imposing costs and directing refund. Appellant filed Cont.A.No.10 of 2024 against that order.
Acts & Sections
- Contempt of Courts Act, 1971: Section 19
- Tamil Nadu Co-operative Societies Act, 1983: Section 87, Section 81, Section 82, Section 152
