Rule allowing co-op registrars to suspend elected prez upheld

A divisional bench comprising Justice TS Sivagnanam and Justice Sathi Kumar Sukumara Kurup dismissed a petition by Perambur-based Cooperative Building Society president Krishnamoorthy seeking directions to the TN government to scrap the amendment. The petitioner claimed that the amendment in TN Cooperative Societies Act 1983, allowing registrars to suspend the elected presidents and vice-presidents should be scrapped.

Government Pleader P Muthukumar who appeared for the TN Cooperative Societies Department said the amendment was made only for the wellness of the cooperative societies to prevent misappropriation and breach of trust by their elected heads. After hearing the submissions, the bench ruled that the amendment was passed to protect the cooperative societies.

“If there is prima facie misappropriation or breach of trust or gross mismanagement of the affairs of the registered society, action can be taken by the registrar as per the amended rules,” the judges observed, dismissing the writ plea.