1. This writ petition is filed by the petitioner society seeking to quash Ext.P3 audit certificate issued by the 2nd respondent and Ext.P5 order passed by the 2nd respondent dated 20.04.2017 in accordance with the direction issued by this Court in the judgment in W.P.(C) No.4830 of 2017, dated 14.02.2017. Shorn off unnecessary details, material facts for the disposal of the writ petition are as follows:

2. Petitioner is a Class-I (Special Grade) Service Cooperative Society established in the year 1995. For the last several years, the society is running on profit. In all audit reports up to 2015-16, the auditors approved the functioning of the society, however, the audit for the year 2015-16 was conducted by the 3rd respondent without verifying the relevant documents in an arbitrary manner, violating the mandatory procedures stipulated in Sec.64 of the Kerala Co-operative Societies Act, 1969, [for short, 'the Act, 1969'], which, according to the petitioner, was done with a view to somehow or other find fault with the functioning of the society, totally ignoring the written explanation submitted by the petitioner with documentary evidence to establish the hollowness of the defect pointed out by the 3rd respondent, Ext.P3 audit certificate, and memorandum prepared by the 3rd respondent.

3. It is further submitted that, since Ext.P3 audit certificate was prepared by the 3rd respondent with a malicious motive to somehow or other tarnish the well established reputation of the society, invoking the power under Sec.64(12) (a) of the Co-operative Societies Act, the managing committee requested the 2nd respondent to get its account audited by another officer, so as to rectify the defect in Ext.P3 audit memorandum. Since no decision was taken by the 2nd respondent, petitioner approached this Court by filing W.P.(C) No.4830 of 2016, and this Court as per judgment dated 14.02.2017, directed the 2nd respondent to take a decision in that application within one month. The review petition filed by the 3rd respondent against the judgment was disposed of by this Court, by directing the 2nd respondent to provide an opportunity of hearing to the 3rd respondent also. In compliance with the said direction, 2nd respondent has passed Ext.P5 order dated 20.04.2017, affirming the audit report submitted by the 3rd respondent. It is thus seeking to quash Exts.P3 and P5, this writ petition is filed.

4. Second respondent has filed a detailed counter affidavit refuting the allegations and contentions raised in the writ petition. Among other contentions, it is stated that, as per Sec.63(4) of Act, 1969, it is the duty of the managing committee to get its accounts audited at least once in every year, and the accounts of every society shall be audited within six months of the close of the financial year to which such accounts relate. The petitioner's Bank accounts for the year 2015-16 is audited by the 3rd respondent. While conducting the audit, the auditor has found some grave irregularities and misappropriations in the functioning of the bank, committed by the managing committee. Irregularities are the gold loan ornament auction, causing loss to the bank, non-payment of VAT to Government, conducting Chitty transaction without the sanction of the department, non-payment of GDCS fees to Government, irregularities in appointment of Peons, excess payment of deposit interest etc. etc.

5. As a part of the statutory audit, the auditor has issued Ext.P1 notice to the members of the managing committee and sought to rectify the above defects. However, without rectifying the defects, petitioner submitted Ext.P2 explanation to the auditor. Since the defects were not rectified by the bank, the auditor was constrained to include those defects in Ext.P3 audit certificate as per the norms of the statutory audit. In fact, the auditor has audited the accounts of the bank as per the provisions of the Kerala Co-operative Societies Act and Rules, audit manual and various di