ORAL ORDER

1. The petitioners are questioning the order dated 17.09.2024 passed by respondent No.2 under Section 69 (2) of the Karnataka Co-operative Societies Act, 1959 (hereinafter referred to as "Act" for short) in surcharge proceedings No.2/2024.

2. Heard Sri. R. S. Ravi, learned Senior Counsel for the petitioners and Sri. Purnchandra M. learned counsel for Smt. Sarada B. N., learned counsel for respondent No.3.

3. Respondent No.3-Society initiated proceedings under section 69(1) of the Act against the petitioners and employees and sought to recover the amount of Rs.59,05,605/- along with interest on the ground that the employees of respondent No.3-Society during that term as employees have misused an amount of Rs.94,38,648/-, out of which Rs.63,66,203/- is recovered and an amount of Rs.59,05,605/- is yet due from the employees.

4. It is the case of respondent No.3-Society that the petitioners and respondent Nos.7 to 13 in WP No.35908/2024, respondent Nos.7 to 14 in WP No.31823/2024 and respondent Nos.7 to 11 in WP No.35947/2024 have executed fidelity bond in favour of respondent No.3-Society at the time of recruitment of respondent Nos.4 to 6 as the employees to respondent No.3-