The Additional Registrar/Managing Director v. A.S.Poonkuzhali

JUDGMENT (Judgment of the Court was delivered by S.M.Subramaniam J.) Kanchipuram Central Co-operative Bank is the appellant before this Court. 1st respondent filed a writ petition challenging the order of suspension dated 04.03.2025 and to conduct a fresh enquiry and also to de-freeze the savings account of the petitioner in Saving Accounts No.203007835 in Avadi bazar Branch, Kanchipuram Central Co-operative Bank and Savings Account No.222149993.

¶21st respondent was employed as Manager, and she was placed under suspension by order dated 04.03.2025, on the ground that she has involved in certain serious financial irregularities and misappropriation of funds of the Central Co-operative bank.

¶3Ms.G.Thilagavathi, learned Senior Counsel appearing on behalf of the appellant bank would mainly contend that 1st respondent has committed an act of corruption, misappropriation of the funds of the bank, and kept the said money in her SB account in Central Co-operative Bank and in the locker which stands in her name. Ascertaining these facts, a charge memo was issued. A Three Member Fact Finding Committee has given a report and based on that, the SB account of the 1st respondent was freezed.

¶4The Writ Court though declined to interfere with the order of Page3 of 5 suspension, issued a direction granting liberty to the 1st respondent to operate the bank locker maintained by her in the appellant bank.

¶5Learned Senior Counsel would further submit that in the event of allowing the 1st respondent to operate the accounts and locker, the bank may not be in a position to recover the ill-gotten money as well as the money involved in the alleged misappropriation of the funds of the bank. Therefore, all such decisions are to be taken only after disposal of the disciplinary proceedings and the surcharge proceedings. Based on the enquiry, a report was submitted and a surcharge proceedings under Section 87 of the Tamil Nadu Co-operative Society Act was initiated. It is further contended that the authorities are empowered to attach the property during the pendency of the surcharge proceedings under the provisions of the Act. The surcharge proceedings are initiated based on the Surcharge report dated 17.03.2026.

¶6Learned Senior Counsel would submit that all further action will be initiated to attach the property by invoking the powers conferred under the Co-operative Society Act. Therefore, allowing the 1st respondent to operate the bank locker at this juncture would cause prejudice to the departmental proceedings as well as the surcharge proceedings which all are pending.

¶7In view of the facts and circumstances, the writ order allowing the 1st respondent to operate the bank locker maintained by her in the appellant bank Page4 of 5 at Thiruvallur Branch is set aside, and in respect of the directions to the appellant to expedite the disciplinary proceedings, the same stands confirmed. All further actions to conclude the departmental disciplinary proceedings and surcharge proceedings shall be taken by the competent authority as expeditiously as possible.

¶8With these directions, the writ appeal is disposed of. No costs. Consequently, the connected miscellaneous petitions, if any, are closed. (S.M.S.,J.) (N.S.,J.) 30-06-2026 Index: Yes/No Speaking/Non-speaking order GD To

¶1The Registrar Co-Operative Societies, No.170, Periyar High Road, Chennai-600 010 WAoNo.o977oofo2026 S.M.SUBRAMANIAM,eJ. AND N.SENTHILKUMAR,eJ. GD WAeNo.e977eofe2026 30-06-2026 Page5oofo5

Page1 of 5 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 30-06-2026 CORAM THE HON'BLE MR JUSTICE S. M. SUBRAMANIAM AND THE HON'BLE MR.JUSTICE N.SENTHILKUMAR The Additional Registrar/managing Director Kancheepuram Central Co-Operative Bank, No.15, Sheikpet North Street, Kanchipuram-631 501 ..Appellant(s) Vs 1. A.S.Poonkuzhali 2. The Registrar Co-Operative Societies, No.170, Periyar E.Ve.Ra, High Road, Chennai-600 010 ..Respondent(s) Writ Appeal filed under Clause 15 of the Letters Patent issuing writ of certiorari mandamus to set aside the Common Order dated 26.02.2026 made in WP.No. 14078 of 2025. For Appellant(s): Ms.G.Thilagavathi, Senior Counsel fo Mr.Gopinath Radhakrishnan For Respondent(s): Mr.B.Sandeep Harish for Mr.L.Jaivenkatesh for caveator R1 Page2 of 5