Section 70 in Sikkim Co-Operative Societies Act, 1978
70. Surcharge.
(1)Where in the course of an audit, enquiry, inspection, or winding up of the society, it is found that any person who is or was entrusted with the organisation or management of such society or who is or has at any time been an officer or an employee of the society; has made any payment contrary to this Act, the rules or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or will fully default or negligence or has misappropriated or fraudulently retained, any money or other property belonging to such society, the Registrar may, of his own motion or on the application of the committee, liquidator or any creditor, enquire himself or cause an enquiry to be made by any person authorised by him, by an order in writing in this behalf.(2)Where an enquiry is made under sub-section (1), the Registrar or the person authorised by him may, after giving the person concerned an opportunity of being heard, make an order, requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to pay contribution and costs or compensation to such extent, as the Registrar or the person authorised by Him may consider just and proper.
