A member, Director or Chairperson of the Co-operative
Society may and the Registrar shall file a copy of the report
of the Auditor or the Special Auditor or the Inquiry Officer,
before the Tribunal with an application for necessary action
against the person on account of whose conduct the Co-operative Society has, incurred loss. The Tribunal may on
the basis of such report disallow every item of expenditure
incurred contrary to law and order recovery of the same
from the person incurring or authorising the incurring of
such expenditure, or held responsible in the said report for
any deficiency, loss or unprofitable outlay occasioned by
his, negligence or misconduct or of any such amount which
ought to have been accounted but is not brought into
account by that person and shall, in every such case,
specify the amount liable to be paid by such person to the
Co-operative Society.
Explanation: It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss to contend that notwithstanding his negligence or misconduct the deficiency or loss would not have occurred, but for the negligence or misconduct of some other person.
(2) The Tribunal shall state in writing the reasons for its decision in respect of every disallowance, surcharge and a copy of such decision shall be served on the person against whom it is made in the manner laid down for the service of summons in the Code of Civil Procedure, 1908:
Provided that the Tribunal shall not pass any order of recovery under this section unless the person against whom any such order is passed has had an opportunity of making a representation, either by himself or through the Counsel.
(3) Any person aggrieved by an order passed under this section may, within sixty days after the date of service on him to the order by the Tribunal, file an appeal against such order in the High Court.
(4) Where an appeal is filed in the High Court under sub-section (3), the persons, who filed the application before the Tribunal or as the case may be, the Registrar shall be the sole respondent thereto, and the applicant shall not make any other person a party to the proceedings.
(5) Every order passed by the Tribunal or an order passed by the High Court shall be executed in the same manner as a, decree of a Civil Court under the Code of Civil Procedure, 1908.
Explanation: It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss to contend that notwithstanding his negligence or misconduct the deficiency or loss would not have occurred, but for the negligence or misconduct of some other person.
(2) The Tribunal shall state in writing the reasons for its decision in respect of every disallowance, surcharge and a copy of such decision shall be served on the person against whom it is made in the manner laid down for the service of summons in the Code of Civil Procedure, 1908:
Provided that the Tribunal shall not pass any order of recovery under this section unless the person against whom any such order is passed has had an opportunity of making a representation, either by himself or through the Counsel.
(3) Any person aggrieved by an order passed under this section may, within sixty days after the date of service on him to the order by the Tribunal, file an appeal against such order in the High Court.
(4) Where an appeal is filed in the High Court under sub-section (3), the persons, who filed the application before the Tribunal or as the case may be, the Registrar shall be the sole respondent thereto, and the applicant shall not make any other person a party to the proceedings.
(5) Every order passed by the Tribunal or an order passed by the High Court shall be executed in the same manner as a, decree of a Civil Court under the Code of Civil Procedure, 1908.