The underlying legal aspects in these cases are edificed on the pith and tenor of Section 68 of the Kerala Co-operative Societies Act (hereinafter referred ‘the KCS Act’ for short), as per which proceedings for imposition of surcharge against persons in charge and management of Co-operative Societies and on its concerned officers and employees are stipulated.

2. Since the issues in these cases revolve around the manner in which Section 68 of the KCS Act operates, I deem it appropriate to extract it under;

“[68. Surcharge:-(1) If in the course of an audit, inquiry, inspection or the winding up of a society, it is found that any person, who is or was entrusted with the organization or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to the Act and the rules or the bye-laws, or has caused any loss or damage in the Assets of the society by breach of trust or willful negligence or mismanagement or has misappropriated or fraudulently retained any money or other property belonging to such society or has destroyed or caused the destruction of the records, the Registrar may, of his own motion or on t