(1) THIS appeal by special leave is directed against the judgment and order of the High court of Madras allowing writ petitions filed under Article 227 of the Constitution of India by the present Respondents 1-14.

(2) THE appellant is a cooperative society registered under the provisions of the Tamil Nadu Cooperative Societies Act, 1961. Respondents 1-14 were for the year 1974-75 members of its Board of Management. An enquiry under Section 65 of the said Act into the affairs of the appellant-society was ordered by the Deputy Registrar of Cooperative Societies on 26/9/1976 in relation to sales and purchases of Cholam and Ragi. The inquiry report revealed that there had been a loss in the business of Cholam and Ragi during the said year in the sum of Rs. 1,31,990.33; that the amount of Rs6661 had been paid in excess of the prevailing market rate of Ragi; and that a loss in the sum of Rs. 8638.35 had occurred due to reduction in retail prices. Accordingly, surcharge proceedings were initiated by the Registrar of Cooperative Societies against Respondents 1-14 under the provisions of Article 71 of the said Act, which makes members in management of a Cooperative Society l