Madras High Court Allows Writ Appeal in Co-operative Society Dispute — Inquiry Order Not Subject to Writ Jurisdiction. The court found that a writ petition seeking a copy of an inquiry order under Section 81 of the Tamil Nadu Co-operative Societies Act, 1983, is not maintainable as it does not constitute a valid cause of action.

High Court: Madras High Court Bench: Principal In Favour of Accused
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Case Note & Summary

The case involved an intra-court appeal filed by the Venbavur Primary Agricultural Co-operative Credit Society against a writ order dated 25.06.2026. The respondent, a former Secretary of the society, sought a direction to furnish a copy of an inquiry order issued under Section 81 of the Tamil Nadu Co-operative Societies Act, 1983. The inquiry was initiated due to pending disciplinary and surcharge proceedings against him, as his terminal benefits had not been settled. The court examined the provisions of the Act, particularly Sections 81 and 87, which govern inquiries and surcharge proceedings, respectively. It noted that the inquiry under Section 81 is a statutory process aimed at assessing the administration and financial condition of the society, and that the results could lead to various actions, including disciplinary proceedings and surcharge actions. The court emphasized that these actions are independent and can proceed simultaneously. It concluded that the writ petition was not maintainable as the inquiry order was an internal action and did not provide a cause of action for legal proceedings. The court set aside the impugned writ order and allowed the appeal, closing the connected civil miscellaneous petition.

Headnote

A) Co-operative Societies Law - Writ Jurisdiction - Maintainability of Writ Petition - Tamil Nadu Co-operative Societies Act, 1983, Sections 81, 87, 152 - The court held that a writ petition seeking a copy of an inquiry order under Section 81 of the Act is not maintainable as it does not constitute a valid cause of action for legal proceedings. The inquiry is an internal departmental action and does not provide grounds for initiating writ proceedings (Paras 12-14).

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Issue of Consideration

Whether a writ petition can be maintained to seek a copy of an inquiry order under the Tamil Nadu Co-operative Societies Act, 1983.

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Final Decision

The court set aside the writ order passed in WP.No.23397 of 2026 and allowed the writ appeal, stating that the inquiry order does not constitute a valid cause of action for legal proceedings.

Law Points

  • Writ jurisdiction
  • statutory inquiry
  • disciplinary proceedings
  • subsistence allowance
  • Tamil Nadu Co-operative Societies Act
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Case Details

2026 LawText (MAD) (08) 229

WA No. 2533 of 2026

2026-08-21

S.M.Subramaniam, Krishnaswamy Govindarajan

2026:MHC:3558

Ms.R.Reshma, Mr.K.Vasanthanayagan, Mr.C.Prakasam, Mr.K.Rajesh

Venbavur Primary Agricultural Co-operative Credit Society

V.Ganesan, The Joint Registrar of Co-operative Societies, The Deputy Registrar of Co-operative Societies

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Nature of Litigation

Intra-court appeal challenging a writ order regarding an inquiry under the Tamil Nadu Co-operative Societies Act.

Remedy Sought

The appellant sought to set aside the writ order and allow the appeal.

Filing Reason

The respondent sought a copy of the inquiry order under Section 81 of the Act.

Previous Decisions

The writ petition was filed and an order was passed on 25.06.2026.

Issues

Maintainability of writ petition seeking inquiry order Scope of statutory inquiry under the Tamil Nadu Co-operative Societies Act

Submissions/Arguments

The appellant argued that the inquiry order does not provide a cause of action for a writ petition. The respondent contended that the inquiry order should be disclosed.

Ratio Decidendi

A writ petition is not maintainable against an inquiry order under Section 81 of the Tamil Nadu Co-operative Societies Act as it does not provide a valid cause of action.

Judgment Excerpts

The inquiry is an internal departmental action which per se does not provide a cause of action for instituting legal proceedings. The statutory inquiry may cover multiple aspects, including irregularities, illegalities, misappropriation of funds, frauds, corrupt practices and mismanagement.

Procedural History

The writ petition was filed seeking a direction against the co-operative society to furnish a copy of the inquiry order, leading to the present intra-court appeal.

Acts & Sections

  • Tamil Nadu Co-operative Societies Act: 81, 87, 152
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