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Madras High Court· 21 August 2026

Are disciplinary proceedings, a criminal case and surcharge proceedings arising from an inquiry report independent and distinct?

The Administrator v. V. Ganesan
WA.2533/2026 · 2026:MHC:3558 · WA No. 2533 of 2026
Coram: Justice S.M.Subramaniam · Justice Krishnaswamy Govindarajan
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Answer

Disciplinary proceedings, a criminal case and surcharge proceedings arising from an inquiry report are independent and distinct.

Yes. Disciplinary proceedings, a criminal case and surcharge proceedings arising from an inquiry report are independent and distinct. All three may be initiated simultaneously, the procedures contemplated for each being distinct and different, and Courts are not expected to stall any one of them on the pendency of another. (¶6, 7, 8)

Headnote

Tamil Nadu Co-operative Societies Act, 1983 — ss.81, 87, 152 — Statutory inquiry — Surcharge proceedings — Alternative remedy — Maintainability of a writ petition — Tamil Nadu Co-operative Societies Act, 1983 — s.81 — Order directing an inquiry — No cause of action — Held: An order directing a statutory inquiry is an internal departmental action and provides no cause of action; a writ seeking a copy of it is premature and not maintainable. (¶12, 13) Tamil Nadu Co-operative Societies Act, 1983 — s.81 — Three-fold consequential actions — Independent and simultaneous — Held further: Disciplinary proceedings, a criminal case and surcharge proceedings founded on an inquiry report are distinct, and no one of them is stalled by the pendency of another. (¶7, 8) Tamil Nadu Co-operative Societies Act, 1983 — ss.87, 152 — Efficacious alternative remedy — Article 227 only thereafter — Held further: A writ petition does not lie against an order under s.87, the remedy being an appeal to the Special Tribunal. Writ order set aside and appeal allowed. (¶10, 17)

Headnote

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In the Court's own words
Paragraph 6Upon submission of the statutory inquiry report under Section 81 of the Act, the competent authority is empowered to initiate action against the employees, directors of the society and other persons connected with its affairs. Three-fold actions are permissible under the Act based on the report submitted under Section 81. They are: a. Departmental disciplinary proceedings may be initiated. b. A criminal case can be registered before the Commercial Crime Investigation Wing (CCIW) c. Surcharge proceedings may be initiated under Section 87 of the Act to recover any financial loss caused to the society.
Paragraph 7All the three-fold actions may be initiated simultaneously, as the procedures contemplated for each are distinct and different. There is no bar to conduct all these proceedings independently and simultaneously and the actions do not depend on one other.
Paragraph 8Departmental proceedings are initiated based on the discipline, appeal and conduct rules applicable to the society’s employees. A criminal case can be registered under the provisions of criminal law wherever a statutory offence under the law has been committed. Surcharge proceedings can be initiated if financial loss is caused to a co-operative society. Since these three-fold actions are independent and distinct, Courts are not expected to stall in any one of the proceedings based on the pendency of another.
Acts & Sections
s.81 Tamil Nadu Co-operative Societies Act, 1983s.87 Tamil Nadu Co-operative Societies Act, 1983s.152 Tamil Nadu Co-operative Societies Act, 1983Art.227 Constitution of India

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Also decided in this judgment
Does an order directing an inquiry under Section 81 of the Tamil Nadu Co-operative Societies Act provide a cause of action for instituting legal proceedings?Is a writ petition maintainable against an order under Section 87 of the Tamil Nadu Co-operative Societies Act where an appeal lies to the Special Tribunal?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections