As per case facts, a writ petitioner challenged an attachment order on her property, claiming it was self-acquired prior to her husband's alleged misappropriation as a co-operative society president. The ...
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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
RESERVED ON : 17 / 08 / 2026
DELIVERED ON : 08 / 09 / 2026
CORAM:
THE HON'BLE MR. JUSTICE C.V.KARTHIKEYAN
AND
THE HON'BLE MR. JUSTICE R.SAKTHIVEL
W.A. (MD) No.2793 of 2025
and
C.M.P. (MD) No.15674 of 2025
1. The Registrar of Co-operative Societies (Housing)
Office of the Registrar of Cooperative Societies
No. 493, Tamil Nadu Housing Board,
Anna Salai, Nandanam,
Chennai. Now residing at No.48
Ritherdon Road, Vepery,
Chennai 07.
2. The Deputy Registrar of Co operative Societies (Housing)
Office of the Deputy Registrar of Co-operative Societies,
Madurai Region, Baskar Complex
Chinna Chokkikulam,
Madurai
3. The Sub-Registrar of Co-operative Societies (Housing)
Office of the Sub-Registrar of Co-operative Societies,
Madurai.
…Appellants /
Respondents 1 to 3
Versus
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1. M Rajalakshmi
W/o.Mohan
10 / 46, Alagar Nagar
5
th
Cross Street,
K.Pudur, Madurai. ... 1
st
Respondent /
Writ Petitioner
2. The Sub Registrar
Registration Department,
Thallkulam Sub Registrar,
Thallakulam,
Madurai. … 2
nd
Respondent /
4
th
Respondent
PRAYER in W. A. (MD) No.2793 of 2025: Writ Appeal filed under
Clause 15 of the Letters Patent, praying to set aside the Order dated
January 28, 2025 passed in W.P. (MD) No.29571 of 2024 on the file of
this Court.
PRAYER in C.M.P. (MD) No.15674 of 2025: Civil Miscellaneous
Petition filed praying to stay the operation of the Order dated January 28,
2025, passed in W.P. (MD) No.29571 of 2024, pending disposal of the
Writ Appeal and pass such further or other orders as the Hon'ble Court
deems fit.
For Appellants:Mr. S.I.Muthiah
Additional Government Pleader
For Respondent
No.1
:Mr.A.Joseph Jerry
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J U D G M E NT
R.SAKTHIVEL, J.
This Writ Appeal is filed at the instance of the respondents in W.P.
(MD) No.29571 of 2024, challenging the Order dated January 28, 2025
passed by a learned Single Judge of this Court therein. The prayer in the
Writ Petition is for a Writ of Certiorarified Mandamus seeking to quash
the 'Attachment Order in Na.Ka.No.1560/2018/VA, dated October 31,
2018 passed under Section 167 of the Tamil Nadu Co-operative
Societies Act, 1983', which shall hereinafter be referred to as the
'Impugned Attachment Order'.
2. For the sake of clarity and convenience, the first respondent
herein who had filed the aforesaid Writ Petition will be addressed as the
writ petitioner, while the appellants herein will be continued to be
addressed as appellants.
3. The case of the writ petitioner in the Writ Petition is that she
purchased a house site in Survey No.197-1, situate at Nallamani Nagar,
K. Pudur, Thallakulam Taluk, Madurai District, vide Sale Deed dated
April 09, 2008 bearing Document No.1597 of 2008. The said property
was her self-acquired property, purchased using the Sreedhanam given
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by her parents at the time of her marriage. Apart from the said
Sreedhanam, she was also engaged in the money-lending and finance
business, from which she earned a substantial income. The said property
absolutely belonged to the writ petitioner.
3.1. Her further case in the Writ Petition is that her husband, namely
C.Mohan, served as the President of the third respondent's Society. A
surcharge proceedings was initiated against him. Pursuant to the same,
the property belonging to the writ petitioner, along with two other
properties, were attached by the Impugned Attachment Order. The writ
petitioner came to know about Impugned Attachment Order only
recently, when she attempted to sell the property. Accordingly, she prayed
that the writ petition be allowed.
4. The learned Single Judge after hearing both sides, concluded
that the property in question was purchased by the writ petitioner on
April 09, 2008 much prior to initiation of surcharge proceedings under
Section 87 of 'the Tamil Nadu Co-operative Societies Act, 1983' ['1983
Act']. On the date of Impugned Attachment Order, the property in
question stood in the name of the writ petitioner. Hence, the Impugned
Attachment Order is liable to be set aside. Accordingly, the learned
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Single Judge allowed the Writ Petition and set aside the Impugned
Attachment Order. Feeling aggrieved, the Respondent Nos.1 to 3 therein,
have preferred this Writ Appeal.
5. Mr.S.I.Muthiah, learned Additional Government Pleader
appearing for the appellants would submit that the first respondent's
husband - C.Mohan, during his tenure as the President of third
respondent's Society namely Madurai Co-operative Building Society, had
misappropriated money to the tune of Rs.42,863/-. Further, he had caused
loss to the tune of Rs.45,98,621/- to the Society. The property in question
had been purchased in the name of his wife / writ petitioner by utilizing
the misappropriated funds. The writ petitioner has no wherewithal to
purchase property. Moreover, the writ petitioner's husband has made a
value addition to the said property by building a superstructure thereon.
Only on these grounds, Impugned Attachment Order was passed qua the
property in question.
5.1. Further, he would attack the maintainability of the Writ Petition
on the point that the writ petitioner has an efficacious and alternate
remedy under the 1983 Act and 'the Tamil Nadu Co-operative Societies
Rules, 1988' ['1988 Rules']. His submission would be that, if in case if
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the writ petitioner feels aggrieved by the Impugned Attachment Order,
she ought to file a petition under Rule 135 of the 1988 Rules. The learned
Single Judge without considering the alternate remedy available to the
writ petitioner, as well as the fact that a huge amount was
misappropriated by the writ petitioner's husband, allowed the Writ
Petition. Accordingly, he would pray to allow the writ appeal and set
aside the order passed by the learned Single Judge.
6. On the other hand, Mr.A.Joseph Jerry, learned Counsel
appearing for the first respondent / writ petitioner would argue that, the
writ petitioner purchased the Plot Nos.40 & 40A in Survey No.197-1
situated at Nallamani Nagar, K.Pudur, Thallakulam Taluk, Madurai
District as vacant lands, by selling her gold jewels as well as using her
personal earnings. Hence, the said property is her personal property.
Further, the alleged misappropriation took place in the year 2013-2018,
whereas the writ petitioner purchased the property in 2008, much before
the alleged misappropriation. Therefore, the same cannot be attached in
the surcharge proceedings against her husband. Without considering the
said fact, the Impugned Attachment Order was passed, that too without
any notice to the writ petitioner in violation of the principles of natural
justice. The learned Single Judge after considering the entire facts and
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circumstances rightly allowed the Writ Petition and quashed the
Impugned Attachment Order. There is no irregularity or illegality in the
Order passed by the learned Single Judge. Accordingly, he would pray to
dismiss the Writ Appeal.
7. This Court has considered both sides' submissions and perused
the materials available on record.
8. It is stated by the writ petitioner that the property in question
viz., Plot Nos.40 & 40A in Survey No.197-1 situated at Nallamani Nagar,
K.Pudur, Thallakulam Taluk, Madurai District, was purchased by her
vide Sale Deed dated April 9, 2008 for a sale consideration of Rs.
5,13,414/- from one Velu Konar. She has annexed a copy of her Sale
Deed as well as Encumbrance Certificates in respect of the property in
question. The writ petitioner had purchased the property in the year 2008
as vacant land.
9. This Court has carefully perused the description of the property
contained in the Impugned Attachment Order, whereby the appellants had
attached three properties. The first property is a house property situate in
Survey No.198/3 said to be purchased by the writ petitioner's husband -
C.Mohan vide Sale Deed dated August 01, 2008, whereafter he executed
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a Lease Deed in favour of Sivasankar on April 27, 2018, and later the
Lease Deed was cancelled on January 13, 2020. In the interregnum, the
said property was attached on November 10, 2018 by the appellants. To
be noted, after attachment, the writ petitioner obtained Gift Settlement
Deed from her husband. Be that as it may, the said property in Survey
No.198/3 is not the subject matter in the present Writ proceedings.
10. The second property attached vide the Impugned Attachment
Order is in Survey No.196/2. It is stated that the said property was
purchased by the writ petitioner's husband vide Sale Deed dated June 21,
2001 from one Subburam and later sold to P.Shanthi by him, vide Sale
Deed dated January 24, 2007. The aforesaid property in Survey No.
196/2 is also not a subject property in the present Writ proceedings.
11. The third property attached vide Impugned Attachment Order is
the property currently in question. Bare reading of the description of
property thereof would show that it is a vacant land. So, it has been
purchased as a vacant land and remained so. Hence, the contention of the
appellants before this Court that the writ petitioner's husband has
improve the property in question by putting up a superstructure thereon
and therefore, the attachment is justifiable and valid, appears to have
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been an improved version and probably an afterthought.
12. The property in question was purchased by the writ petitioner
and not her husband. The writ petitioner claims that she purchased the
same using her self-income and by selling gold ornaments. Admittedly,
the misappropriation allegedly took place during the period between
2013 and 2018. Whereas, the property has been purchased by the writ
petitioner much before, in the year 2008. It was purchased as a vacant
land and as it could be seen from the description of property in the
Impugned Attachment Order, it has remained as a vacant land. In these
circumstances, this Court fails to see any nexus between the
misappropriation allegedly done by the writ petitioner's husband and the
purchase of the property in question by the writ petitioner much before
the alleged misappropriation. Moreover, the Impugned Attachment Order
has been issued without any notice to the writ petitioner and she is not a
party to the proceedings under Section 167 of the 1983 Act. The said
provision reads thus:
"CHAPTER XIX
MISCELLANEOUS
167. Furnishing of security and attachment of
property.-
(1) Where the Registrar is satisfied on
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the application of a registered society in
respect of a reference made to him under sub-
section (1) of section 90 or on the application
of a liquidator appointed under section 138 in
respect of the proceedings of such liquidator
for determining the contribution to be made by
a person to the assets of the society under
clause (b) of sub-section (2) of section 139 or
on the application of the board or liquidator or
any creditor to the society or otherwise in
respect of any inquiry ordered into the conduct
of any person under section 87 that any party
to the reference or the person, as the case may
be, is about to dispose of or remove from the
local limits of the jurisdiction of the Registrar,
the whole or any part of his property with
intent to defeat or delay the execution of any
decision that may be passed on the reference
or of any order that may be passed against him
by the liquidator or the Registrar, as the case
may be, the Registrar may, by order, direct the
party or the person, to furnish security in such
sum and within such time as may be specified
in such order and to produce and place at the
disposal of the Registrar when required, the
said property or such part thereof as may be
sufficient for the execution of any decision or
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order aforesaid.
(2) The Registrar may also in the order
made under sub-section (1), or by a separate
order, direct the conditional attachment of the
said property, or such part thereof and such
attachment shall have the same effect as if it
had been made by a competent Civil Court:
Provided that no order for conditional
attachment shall be made under this sub-
section unless the Registrar, for the reasons to
be recorded in writing, is satisfied that the
whole or any part of the property will be
disposed of or removed with intent to defeat or
delay the execution of any decision or order of
the liquidator or the Registrar, as the case may
be."
[Emphasis supplied by this Court]
12.1. As it could be seen from the proviso to sub-clause 2 of the said
Section 167, the Registrar is bound to record reasons for his satisfaction
that the whole or part of the property will be disposed of with an intent of
defeating or delaying the proceedings, in writing. This provision is pari-
materia to the concept of attachment before Judgment under Order
XXXVIII Rule 5 of the Code of Civil Procedure, 1908 [C.P.C.]. It is
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settled law that, unless it is proved that the property belongs to the
defendant, attachment cannot be made under Order XXXVIII Rule 5 of
C.P.C. In the present case, the Registrar appears to have attached the writ
petitioner's property without any material or evidence connecting it to the
alleged misappropriation or alleged misappropriator. As stated above,
there is a lack of nexus. There is no reason whatsoever assigned in this
regard or for his satisfaction qua the criteria specified in the proviso to
Section 167 (2) of the 1983 Act. Hence, the Impugned Attachment Order
does not qualify as a reasoned Order. For not being a reasoned Order and
for no notice to the writ petitioner, the Impugned Attachment Order is in
violation of the principles of natural justice.
12.2. Further, at this point, it is appropriate to refer to Rule 140 of
the 1988 Rules, which reads thus:
"140. Mode of making attachment before
judgement.
(1) Attachment of property under section
167 shall be made in the manner provided in
the foregoing rules of this chapter.
(2) Where a claim is preferred to
property attached under sub-rule (1) such
claim shall be investigated in the manner and
by the authority specified in the foregoing rules
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of this chapter.
(3) …
(4) Attachment made under sub-rule (1)
shall not affect the rights existing prior to the
attachment of persons not parties to the
proceedings in connection with which the
attachment was made, nor bar any person
holding a decree against the person whose
property is attached from applying for the sale
of property under attachment in execution of
such decree.
(5) …"
[Emphasis supplied by this Court]
12.3. A bare reading of sub-rule 4 of the afore-extracted Rule 140
would show that attachment shall not affect the rights of a person over
the property, where such rights exist prior to the attachment, which
means attachment of someone's else's property without any nexus would
not bind that person. At the cost of repetition, this Court reiterates that
there is no material connecting the property in question to the alleged
misappropriation or alleged misappropriator.
12.4. Therefore, this Court is of the view that the appellants without
any material or evidence, in a casual manner, have ordered for attachment
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of the writ petitioner's property vide the Impugned Attachment Order,
that too without following the principles of nature justice.
13. It is true that the writ petitioner has an alternative remedy
under Rule 140 read with Rule 135, of the 1988 Rules. The alternate
remedy rule is susceptible to certain limited exceptions, one among
which is violation of principles of natural justice [See Paragraph Nos.7 to
9 of the Judgment dated July 31, 2026 of this Court made in The
Inspector General of Registration -vs- V. Murugan in W.A. (MD) No.
3096 of 2025 bearing neutral citation 2026/MHC/3179]. As stated supra,
the Impugned Attachment Order inter-alia in respect of the writ
petitioner's property was issued without any notice to the writ petitioner
and hence, there is violation of principles of natural justice in this case.
Since the appellants failed to follow the principles of natural justice, this
Court is of the view that the Writ Petition is maintainable even in the
presence of an alternate and efficacious remedy.
14. The learned Single Judge after considering the entire facts and
circumstances rightly allowed the Writ Petition and quashed the
Impugned Attachment Order qua Plot Nos.40 and 40A situate in Survey
No.197-1 at Nallamanai Nagar, Thallakulam, Madurai District. This
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Court does not find any illegality or irregularity in the Order of the
learned Single Judge. Therefore, the Writ Appeal is liable to be dismissed
as devoid of merits.
15. Resultantly, this Writ Appeal is dismissed as devoid of merits.
The Impugned Attachment Order, namely Attachment Order dated
October 31, 2018 in Na.Ka.No.1560/2018/VA, stands raised qua the
property in Survey No.197/1 alone, as ordered by the learned Single
Judge. It is hereby clarified that no view is expressed by this Court on the
Impugned Attachment Order qua the other two properties. In view of the
facts and circumstances of this case, there shall be no order as to costs.
Consequently, connected Civil Miscellaneous Petition is closed.
(C.V.K.,J.) (R.S.V,J)
08 / 09 / 2026
Index : Yes
Speaking Order : Yes
Neutral Citation : Yes
gvn
To:
The Sub Registrar,
Registration Department,
Thallkulam Sub Registrar,
Thallakulam,
Madurai.
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C.V.KARTHIKEYAN, J.
AND
R.SAKTHIVEL, J.
gvn
JUDGMENT MADE IN
W.A. (MD) No.2793 of 2025
08 / 09 / 2026
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