Madras High Court

Madras HC: Property Seizure Validated in Cooperative Society Theft Case

Updated
Feb 8, 2026 11:32 AM
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Quick Summary:
In a recent court case, B. Chennamoorthy challenged the seizure of his property by the Deputy Registrar of Cooperative Societies in Krishnagiri. The court, led by Judge V. Lakshminarayanan, agreed with the seizure, following the rules and dismissing the complaint.

The Case Begins

On January 22, 2026, Judge V. Lakshminarayanan gave a decision on the case involving B. Chennamoorthy. He argued against the seizure of his property in Krishnagiri, which was ordered by the Deputy Registrar of Cooperative Societies on May 14, 2024, and finalized on May 23, 2024.

Property Purchase and Allegations

Chennamoorthy bought the property from S. Kavitha, whose husband, Rajendran, was accused of stealing money from the cooperative society. The property purchase was recorded on September 8, 2023.

Legal Proceedings

The cooperative society accused Rajendran of stealing money and started actions under the Tamil Nadu Cooperative Societies Act. The Deputy Registrar ordered the property seizure fearing it might be sold off.

"The security required by this order had not been provided," noted the court.

Petitioner’s Arguments

Chennamoorthy's lawyer, Mr. S. Sathiaseelan, argued that: - The actions were too late to be valid. - The property belonged to someone not part of the cooperative, making the seizure invalid. - The actions were unfair and didn't follow basic justice principles.

Court’s Decision

Judge Lakshminarayanan found that: - Chennamoorthy was not an outsider since he was involved in the proceedings. - The seizure was valid under Section 167 of the TNCS Act. - The petitioner was given a chance to provide security but did not do so.

"An opportunity was given to the petitioner to appear before the Deputy Registrar on 22.05.2024 and provide security."

Summary of Verdict

The court dismissed the complaint, allowing Chennamoorthy to provide security and ask for the release of the seizure if he wanted to. The judgment emphasized following the rules and the importance of acting on time.