APHC010108352026 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) MONDAY,THE NINTH DAY OF MARCH TWO THOUSAND AND TWENTY SIX PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 6077 OF 2026 Between: 1. CHUNDI BHASKAR RAO, S/o Satyanarayana. Aged about 62 years R/o Door no. 16-11-758 Haranadhapuram 1st Street, SPSR Nellore District. Pin- 524003 Andhra Pradesh ...Petitioner AND 1. The State of Andhra Pradesh, Rep.by its Secretary, Department of Social Welfare Block No.3, A. P. Secretariat, Velagapudi, Guntur District-522238., A.P. 2. The ViceChairman FAC and Managing Director, Andhra Pradesh Scheduled Castes Cooperative Finance Corporation (APSCCFC LTD), 4th Floor, SPs Riverview Building, Beside Manipal Hospital, Tadepalli-522501, Guntur District, A.P. 3. The District Collector and Chairman, District Scheduled Castes Service Cooperative Society Ltd, Nellore SPSR Nellore District Collectorate, Achari Street, VRC Center, NELLORE-524001, A.P. 4. The Registrar of Cooperative Societies, Government of Andhra Pradesh, D.No.2, Skylark Towers, 16-83, I.P.D.Colony, 11th Line, Shyamala Nagar, Guntur-522006, Guntur District, A.P. 5. The Divisional Coop Officer, Nellore, Cooperative Department Nellore District, Old Court Building, Collectorate Compound, Nellore- 524003. SRSP Nellore District ...Respondents 2 Petition under Article 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue an appropriate Writ, Order or Direction more particularly one in the nature of Writ of Mandamus and to Set aside the Inquiry ordered by Respondent-3 (District Collector) under Sec.51 of the Andhra Pradesh Cooperative Societies Act, 1964 vide Pro.Rc.No.903/2024/C2, Dt.24.7.2024 and the consequential Proceedings .Rc.No.903/2024/DCO/C-2, Dt.13.5.2025 of Review/Findings based on the said Inquiry as Respondent-3 is not the appointed person under Sec.3(1) of ARCS Act for the purposes of the Act, 1964 as arbitrary, illegal and not in consonance with Sec.3(1) and (2) of the ARCS Act, 1964(a) (b) Also set aside the Proceedings Rc.No.903/2024/C2, Dt.22.07.2025 of Respondent-3 authorizing Respondent-5 for conduct of Inquiry under Sec.60(1) of the ARCS Act,1964(Surcharge inquiry) as being the consequential actions that followed the Inquiry under Sec.51 of the said Act, 1964 and the Notice issued by the Divisional Cooperative Officer, Nellore, Dt.08.09.2025 as contrary to Secs.3(1) and (2), 51, 52(2), 54 Secs.31-A (10), (13), (14), (15) and (16) and of the APCSAct,1964 as the said actions are contrary to law And ( c) Suspend all actions contemplated including Show-Cause Notices, Summons and Notices issued by Respondents 2,3 and 5 to the petitioners and directions issued by Respondent-2 to Respondent-3 (dated.07.10.2 025 and 17.12.2025) for initiating disciplinary action based on the Inquiry under Secs.51, and Surcharge Inquiry under Sec.60(1) of the ARCS Act, 1964 against petitioners as these actions of Respondents 2,3 and 5 are contrary to Secs.3(1) and (2), 51, 52(2), 54, 60(1) and 30(1), 31-A (10), (13), (14), (15) and (16) of the ARCS Act, 1964 and declare the actions of Respondents 2,3 and 5 as arbitrary, illegal and not in accordance with law and pass IA NO: 1 OF 2026 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to suspend all actions contemplated including Show-Cause Notices, Summons and Notices issued by Respondents 2,3 & 5 to the petitioners and directions issued by Respondent-2 to Respondent-3 (dated.07.10.2025 & 17.12.2025) for initiating disciplinary action based on the Inquiry under Secs.51, and Surcharge Inquiry under Sec.60(1) of the ARCS Act, 1964 against petitioners these actions of Respondents 2,3 & 5 are contrary to Secs.3(1) & (2), 51, 52(2), 54, 60(1) and 30(1), 31-A (10), (13), (14), (15) & (16) of the ARCS Act, 1964 and declare the actions of 3 Respondents 2,3 and 5 as arbitrary, illegal and not in accordance with law and pass Counsel for the Petitioner: KALLEMU VIJAYA RAJU Counsel for the Respondents: GP FOR SOCIAL WELFARE The Court made the following order: 4 THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 6077/2026 O R DE R: 1. The Writ Petition is filed questioning the enquiry ordered by the Respondent No.3 under Section 51 of the Andhra Pradesh Cooperative Societies Act, 1964 (for short ‘the Act, 1964’), vide Pro.R.C.No.903/2024/C2, dated 24.07.2024 and consequential Proceedings dated 13.05.2025 as illegal and arbitrary and for consequential reliefs. 2. The facts leading to filing of the present Writ Petition are as follows: The Petitioner was issued a Surcharge Notice dated 24.01.2026, wherein it is stated that on 24.07.2024, the Respondent No.3 had ordered a statutory enquiry under Section 51 of the A.P. Cooperative Societies Act, 1964, ( for short ‘the Act, 1964’) into the affairs of the Respondent No.2 Society. An enquiry report was submitted by the Divisional Cooperative Officer, Kavali/Respondent No.5 on 27.12.2024. As per the enquiry report, certain persons who were entrusted with the management and affairs of the Society were held responsible for causing deficiency in the assets of the Society and that the said amount is liable to be recovered from the individuals concerned. The Petitioner is one among the persons held responsible 5 for the loss caused to the assets of the Society. Questioning the same, the present Writ Petition is filed. 3. Learned counsel for the Petitioner submits that the District Collector has no authority to initiate an enquiry under Section 51 of the Act and that the consequential action cannot be sustained. It was further contended that the enquiry report was not placed before the Managing Committee and the General Body for its consideration as required under Section 30(2)(iv) and 31-A of the Act . 4. Learned Assistant Government Pleader, on instructions, submits that the Authority/Deputy Registrar of Cooperative Societies, Nellore, which issued the notice to the Petitioner, was not added as a party to the present Writ Petition, and that the objections raised in this Writ Petition can be urged before the said Authority for consideration and there need not be duplication of consideration of the objections in different forums. 5. Heard the respective counsel. 6. The principal objection of the learned counsel for the Petitioner is with regard to the initiation of an enquiry under Section 51 of the Act, 1964 at the instance of Respondent No.3 and the consequential actions. The objections raised by the learned counsel for the Petitioner are open to the Petitioner to be urged before the Deputy Registrar of 6 Cooperative Societies, Nellore. Further, the objections raised are also open to be urged in further appeal before the Cooperative Tribunal under Section 76 of the Act. 7. Therefore, without going into the merits of the claim and the grounds urged by the Petitioner, the Writ Petition is disposed of leaving it open to the Petitioner to raise objections with regard to the authority of the District Collector to order an enquiry under Section 51 of the Act and the consequential actions before the Deputy Registrar of Cooperative Societies, Nellore. Upon such objections being raised, the Deputy Registrar of Cooperative Societies, Nellore shall examine the same and pass appropriate orders thereon. There shall be no order as to costs. As a sequel, the miscellaneous petitions, if any, pending in this Petition shall stand closed. _______________________ JUSTICE NYAPATHY VIJAY Date: 09.03.2026 eha 7 THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 6077/2026 Dated: 09.03.2026 eha