( 1. ) THE petitioner, the erstwhile President of the third respondent Society, has filed this writ petition, challenging the surcharge proceedings initiated against him and directing payment of Rs.15,832.09/- alleging the same to be the loss caused to the Society.

( 2. ) THE facts or the case lie in a narrow campus: When the petitioner was President of the third respondent Society, a resolution was passed by the Board appointing one Mr. P. Raghupathy, who was the Secretary of the society authorising him to deal with the affairs relating to the Bank and to take charge of all cash transactions of the third respondent Society. During September 1982, it came to the notice of the petitioner that the Secretary was not accounting the receipts properly and therefore, he was placed under suspension and by letter dated 7.10.1982, he was made liable, to pay a sum of Rs.28,561.98/-. However, the Secretary had (sic) absconded after about two months he submitted a letter, admitting his liability and agreeing to return the money to the Society. When these matters came to the notice of the officials, namely the Inspecting Officers of the Society deputed by the Department, they directed the petitioner by letter dated 29.9.1982, to take action against the Secretary. Once again, the secretary gave another letter on 14.10.1982, admitting his liability. This petitioner also lodged a police complaint against the Secretary on 3.11.1982.

( 3. ) IT is further stated that the Secretary while absconding, locked the office room of the Society and took away the keys and only on 4.6.1983, the wife of the said secretary handed over the keys to the Society and promptly the police were informed and in their presence, the room was opened and all documents were seized by the Police and an inventory was prepared on 11.8.1984. In the meantime, the Deputy Registrar of Co-operative Society issued a notice to the petitioner under Section 71 of the Tamil Nadu Co-operative Societies Act, 1961, (1961 Act) calling upon the petitioner as well as the other employees of the society as to why action should not be taken for the loss of Rs.29,591.95, caused to the Society. Such show cause notice was not only to the petitioner and the Secretary but also the Salesmen of the Society. The petitioner submitted his explanation on 20.9.1984.

( 4. ) THEREUPON, the Deputy Registrar by order dated 5.11.1985, fixed responsibility on the petitioner by directing the petitioner to pay a sum of Rs.15,832.09 ps. In the meantime, criminal cases were also filed against the then Secretary, Salesman as well as the petitioner in C.C.No. 124 of 1985 to 130 of 1985 and C.C. No. 143 of 1986 to 149 of 1986 and C.C. No. 410 of 1986. The Secretary was convicted in the criminal case and the petitioner who was arrayed as an accused in C.C. No. 144,143 of 1986,146 of 1986 and 147 of 1986 and 410 of 1986 was acquitted by the Judicial Magistrate Court, Ponneri. The petitioner being aggrieved by the order passed under Section 71 of the 1961 Act, preferred an appeal before the Tribunal for Co-operative cases, the second respondent herein in Appeal No. 15 of 1998. The Tribunal by its judgment and decree dated 16.6.1999 confirmed the order passed by the Deputy Registrar, challenging the same, this writ petition has been filed.

( 5. ) MR. R. Thiyagarajan, learned senior counsel appearing for the petitioner submitted that the Deputy Registrar as well as the Tribunal failed to take note of the resolution passed by the Society on 13.2.1981 by which, three resolutions were passed, namely, the petitioner who was a Secretary was designated as a General Manager with monthly remuneration of Rs.300/-, the Secretary was empowered to deal with all financial transactions, banking transactions of the Society. After the petitioner came to know that the Secretary was not functioning properly, he was placed under suspension and action was initiated against him and the Secretary admitted his liability in writing by submi