1. Challenging the Surcharge Order passed under S. 60(1) of the A. P. Co - operative Societies Act, 1964, in proceedings Re. No. 4277/86 - D dated 10-7-1991 by the Second Respondent this Writ Petition is filed. Before initiation of proceedings under S. 60(1) of the Act, inspection was conducted by the officer concerned under S. 52 of the Act. The Inspection report pointed out that the petitioner was to be surcharged. Basing on the same, proceedings were initiated under S. 60(1) of the Act. Show cause notice dated 24-4-1991 was issued to the petitioner to show cause why surcharge order should not be passed for realisation of Rs. 41,164/- as opined by the Inspecting Officer. The petitioner filed a reply dated 6-5-1991 denying his liability to pay the same. Strictly speaking, he disputed all the allegations levelled against him in the show cause notice issued for surcharging him. In such cases, as a necessary corollary, an enquiry ought to have preceded the surcharge order. The principal point in the instant case is whether any enquiry took place before the passing of surcharge order and if any such enquiry conducted, whether it conforms to the rules of fair - play. The only considera