Authority: Madras High Court, Madurai Bench

Order Date: 08 July 2026

Case Overview

  • Petitioner: R. Senthilkumar, former Sub Staff (appointed 1998) and later Assistant Manager at Madurai District Central Cooperative Bank Ltd.
  • Respondents: 1) Joint Registrar/Managing Director, Madurai District Central Cooperative Bank Ltd; 2) Deputy Registrar, Office of the Deputy Registrar of Cooperative Societies, Madurai Circle.
  • The petitioner faced surcharge proceedings under Section 81 and Section 87 of the Tamil Nadu Co‑operative Societies Act, resulting in order S.C.No.4 of 2023 directing payment of Rs 20,78,895.
  • He appealed the surcharge order in C.M.A. (CS) No.21 of 2023 before the Principal District Judge, Madurai/Co‑operative Appellate Tribunal; the appeal remains pending.
  • Concurrent departmental action imposed a one‑year stoppage of increment.
  • On 21 July 2025, the second respondent issued recovery proceedings under Rule 122 of the Tamil Nadu Co‑operative Societies Rules, 1988, seeking recovery of the surcharge amount.
  • The writ petition (W.P(MD)No.19048 of 2026) sought a writ of certiorari and mandamus to quash the recovery order and to direct reimbursement with interest, arguing that recovery was premature while the surcharge order was under appeal.

Court Reasoning

  • The Court noted that although the surcharge order is under challenge, the petitioner has not obtained any interim stay of that order.
  • Under Indian law, mere pendency of a statutory appeal does not automatically stay the operation of the order appealed against; an interim stay must be expressly granted.
  • In the absence of such a stay, the recovery proceedings issued under Rule 122 are deemed lawful.
  • The Court found no infirmity in the impugned recovery proceedings warranting interference under Article 226 of the Constitution of India.

Final Outcome

  • The writ petition is dismissed.
  • No costs are awarded.
  • The connected miscellaneous petition is closed, leaving the recovery order of Rs 20,78,895 enforceable.

Topics: Cooperative Banking, Court Order