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Madras High Court· 21 August 2026

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?

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

An order directing an inquiry under Section 81 does not provide a cause of action for instituting legal proceedings.

No. An order directing an inquiry under Section 81 does not provide a cause of action for instituting legal proceedings. It is an order passed by the competent authority to conduct an inquiry, which is an internal departmental action; a cause of action arises only if further action is initiated after the inquiry and the submission of the final report. (¶12, 13)

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 12In the present case, the respondent herein filed a writ of mandamus seeking a direction to furnish a copy of the order dated 28.04.2026, which directed an inquiry under Section 81 of the Act. Such an order cannot be construed as a valid cause of action for initiating writ proceedings. It is an order passed by the competent authority to conduct an inquiry under Section 81 of the Act, which is an internal departmental action which per se does not provide a cause of action for instituting legal proceedings.
Paragraph 13A cause of action will arise only if further actions are initiated against the writ petitioner following the inquiry and the submission of the final report, but not otherwise. Even after an inquiry is conducted, there is a possibility that further actions against the employees or other persons may be dropped. Therefore, it is premature to approach the Court to seek particulars or reports relating to the conduct of an inquiry under Section 81 of the Act. The statutory report is meant solely for administrative consideration. Only in the event that further action is initiated based on Section 81 inquiry report, can an aggrieved person approach the competent authority.
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
Are disciplinary proceedings, a criminal case and surcharge proceedings arising from an inquiry report independent and distinct?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