Ramachandran Nair, J.

1. This writ appeal is filed by the State challenging the judgment of the learned single Judge vacating surcharge orders issued under Section 68(2) of the Kerala Co-operative Societies Act, 1969, hereinafter referred to as the "Act", against respondents 1 to 4 and the consequent orders issued by the Joint Registrar as violative of Rule 66(5) of the Cooperative Societies Rules, hereinafter referred to as the "Rules".

2. We have heard learned Government Pleader for the appellants and Adv.Sri.George Poonthottam for respondents 1 to 4.

3. An inspection was ordered by the Registrar into the affairs of the sixth respondent society consequent upon the report furnished by the Reserve Bank of India pointing out financial irregularities in the affairs of the society. In the report prepared by the Inspector of Co- operative Societies, respondents 1 to 4 were indicted for causing loss to the society. Based on the findings, the Registrar initiated proceedings under Section 68(1) against respondents 1 to 4 and after giving notice and serving copy of the enquiry report, Ext.P8 order was issued under Section 68(2) of the Act. Subsequent to the surcharge orders, r