Section 69 in Karnataka Co-Operative Societies Act, 1959
69. [ Surcharge. [Substituted by Act 19 of 1976 w.e.f. 20.01.1976.]
(1)If in the course of an audit, inquiry, inspection or the winding up of a Co-operative society, it is found that the Committee of Management of such society or the President, Vice-President, the Chairman, Vice-Chairman or any other member of the Committee of Management [including Government nominees and ex-officio members] or any person who is or was entrusted with the organization or management of such co-operative society or who is or has at any time been an officer or an employee of a co-operative society has made any payment contrary to the Act, the rules or the bye-laws or has caused any deficiency in the assets of the co-operative society by breach of trust or [***] [Omitted by Act 71 of 1976 w.e.f. 03.11.1976.] negligence or has misappropriated or fraudulently retained any money or other property belonging to such Co-operative society, the Registrar may, of his own motion or on an application of the Committee, Liquidator or any creditor, frame charges against such person or persons and after giving such person and in the case of a deceased person, to his representative who inherits his estate, an opportunity of making representation, make an order requiring him to pay or restore the money or property or any part thereof with interest at such rate as he may determine or to contribute such sum to the assets of the co-operative society by way of compensation to such extent as he may consider just and equitable.(2)This section shall apply, notwithstanding that the act is one for which the person concerned may be criminally liable.](3)[ The order made by the Registrar under sub-section (1) may also provide for recovery of cost of surcharge proceeding from the person against whom the order is made at such rate and in such manner as may be prescribed.] [Inserted by Act 25 of 1998 w.e.f. 27.10.1998.]
