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Section 87 (1)

1. Proviso to Section 87 of Tamil Nadu Co-operative Societies Act, 1983, not


mandatory. 2012(2) CLT 112. Mr.K.B.Basha, J. TN Co-operative Marketing
Federation Ltd. V. D.Lakshmikanthan @ Thamizharasi.

2. Petitioner alone could not be fastened with any liability or any lapse allegedly
committed by Secretary-Legal representatives of Secretary who has been
jointly held are not brought on record-Initiation of action against petitioner
alone is not legally permissible. (S.Kumarasamy v. Deputy Registrar of
Co.op.Societies). Mr.S.Palanivelu, J. 2013 (2) MLJ 271.

3. Whether surcharge proceeding can be initiated against Manager and other
employees of store for shortage of goodsHeld, for issuing surcharge
proceedings, there should be definite finding that loss was caused due to
wilful negligence of concerned employeeNowhere in typed set of papers, it
is stated that it was due to Respondents wilful negligence, loss was caused
Manager cannot simply be fastened with liability for shortage caused by
employees under him. (Dy. Registrar of Co-operatives Vs. R.Krishnamoorthy).
Mr.D.Hariparanthaman,J.2013 (4) MLJ 352.

4. Section 87 is a special provision whereas Section 90 is a general provision
To initiate a proceedings under Section 87 what should be done, stated. To
initiate a proceeding under S.90, no audit report or enquiry report or
investigation or inspection of books or winding up of society is needed.
Contention that allegations of misappropriation, causing loss due to
negligence would not fall within a dispute touching the business of the
Society, Scope of IT includes any transaction which has got some link or
nexus with the regular business of society. Dispute falls within Section 90
No enquiry, audit, etc. under Sections 80 to 83 prior to the initiation of
proceedings under Section 90Dispute raised under Section90 is
maintainable in law. (Elias, P. Vs. The Special Officer, Nagercoil).
Mr. S.Nagamuthu, J. 2013 (3) LW.851.

5. Negligence by petitioners whether would attract surcharge proceedings
under Section 87(1). Mere negligence is not enough unless it is also wilful
Orders set aside.(Govindasamy, K. Vs. Ms.A.Rajamani & othrs).
Mr.K.Ravichandrabaabu, J. 2013(4) LW.249.