E. PADMANABHAN, J.

1. This Writ Appeal has been preferred against the order of the Learned Single Judge dated 31.3.1994.

2. Heard Mr. B.M. Swami, learned counsel for Mr. R.P. Kapilan, appearing for the petitioner, and Mrs. M.G. Kalaiselvi, Special Government Pleader appearing for the respondents.

3. The first respondent herein issued a notice under Section 87 of the Cooperative Societies Act, 1983 calling upon the appellant to show cause as to why the order of surcharge for a sum of Rs. 38,332/- with 13% interest should not be passed against the appellant, while enumerating that the petitioner has caused loss to the assets of the second respondent-society. The appellant submitted his objections in detail and contended that he is not liable to be surcharged. The appellant further contended that he has not acted in any manner prejudicial to the interest of the society, much less, willfully, deliberately or intentionally, that he had acted as per the resolution passed by the society as well as the bye laws and that on the very face of the show cause notice surcharge proceedings is not maintainable, nor surcharge could be levied. The appellant had also set out his defense in