ORDER:-As both the above cases arise out of the same proceedings and involve identical issues, they arc dealt with together.

2. An enquiry into the constitution, working and financing ondition of the Tenkasi Co-operative Urban Bank Limited, hereinafter referred to as the bank, was ordered under section 65 of the Madras Co-operative Societies Act, 1961. by the Deputy Registrar, Tirunelveli in his proceedings, dated 22nd November, 1965. A preliminary report of the enquiry officer was submitted on !9th July, 1966 and it showed that there had been misappropriation of the bank’s funds. As a follow-up of the said report the Deputy Registrar issued surcharge notices, dated 6th August, 1966, under section 71 of the Act to one M. Chockalingam Pillai the ex-President, and N.T. Pannayar, the ex-Vice-President, and 8 others who were ex-directors of the bank. A surcharge notice was also issued to one R. Ulaganathan, ex-clerk of the bank who was alleged to have misappropriated the funds of the bank. At that stage the bank was superseded and a Special Officer was appointed under section 72 of the Act by an order of the Joint Registrar, dated 10th September, 1966 In answer to the above surcharge no

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