SANJAY KISHAN KAUL, J.

The appellant was employed as a Chief Accountant with the Ambur Co-operative Sugar Mills/first respondent from November 1992 to March 1997. The controversy to be examined in the present appeal commences from an enquiry under Section 81 of the Tamil Nadu Co-operative Societies Act, 1983 (hereinafter referred to as 'the said Act') ordered by the Commissioner for Sugar on 10.04.2000 for the loss caused to the Mill in respect of the period from July 1993 to December 1995. At the relevant point of time, the enquiry was not only against the appellant, but also against the third respondent, who was the Selection Grade Assistant and the fourth respondent, who was working as an Accountant in the Mill.

2. In the aforesaid proceedings, there was allegation of fabrication of documents relating to remittances made to different institutions and the three incumbents were held for having acted negligently to cause loss to the Mill. The remittances which were made from the salary of the employees was deducted in excess of their actual dues and after remitting the actuals to the concerned credit account, the excess was diverted to the personal account of the Selection