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HIGH COURT OF JUDICATURE AT ALLAHABAD
SAURABH SHYAM SHAMSHERY
Ashok Kumar Singh – Appellant
Versus
State of U.P. – Respondent
JUDGMENT :
SAURABH SHYAM SHAMSHERY, J.
1. Petitioner was Deputy General Manager (Collection) at District Cooperative Bank, Fatehpur. In the year 2011 an inspection was conducted at Kishunpur Branch and Khakhreru Branch of said Bank under the provisions of Section 66 of U.P. Cooperative Societies Act, 1965 (hereinafter referred to as “Act, 1965”) and a report was submitted where in Financial Years 2006-07, 2007-08, 2008-09 and 2009-10 at Kishunpur Branch and in Financial Years 2005-06, 2006-07, 2007-08, 2008-09 and 2009-10 at Khakhreru Branch various financial irregularities were came into light and embezzlement was running to the tune of Rs. 1757.58 lacs and Rs. 3007.43 lacs respectively. By a detail inquiry Cashier and Branch Manager of said Branches were found guilty and since petitioner and other Officers at Headquarter were also found guilty of omission of work, they were also held responsible. Relevant part of inquiry reports dated 03.09.2014 (in Writ-C No. 23458 of 2017) and 30.09.2014 (in Writ-C No. 23460 of 2017) submitted under Section 68(1) of Act, 1965 are reproduced hereinafter:
2. In aforesaid circumstances, the proceedings were initiated under Section 68 of Act, 1965 and
The court upheld the finding of willful negligence against the petitioner under the U.P. Cooperative Societies Act, yet remitted the surcharge quantum for reconsideration due to lack of justification....
Surcharge proceedings under Section 68(2) of the KCS Act require specific findings on individual liability and compliance with statutory requirements. Liability cannot be fixed on deceased persons wi....
Point of law: it is clear that, to pass surcharge order under Section 87 of the Act, appellants should have done an actionable wrong either by commission or omission in a deliberate and reprehensible....
The judgment emphasizes the importance of adhering to procedural requirements, respecting the scope of show cause notices, and considering previous findings in subsequent proceedings.
Liability under Section 68(1) of the Kerala Co-operative Societies Act must be fixed individually, not jointly, ensuring compliance with statutory provisions.
The Joint Registrar must provide all relevant materials to the affected person before proceeding with surcharge under Section 68(2) to uphold principles of natural justice.
Granting prosecution sanction requires careful consideration of evidence, not merely formal compliance; relevant findings from prior inquiries can substantively justify the decision.
Procedure for conduct of inquiry and inspection - A person can be proceeded against and vested with liability only if an objective assessment of evidence and materials available on record leads to ir....
Section 68 of the Kerala Co-operative Societies Act allows imposing surcharges on management members for mismanagement, without requiring proof of willfulness, based on statutory obligations.
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