HONOURABLE SRI JUSTICE L. NARASIMHA REDDY WRIT PETITION No.755 OF 2004 ORDER: Petitioners are the employees of P.A.C.S., Tettangi, Gurla Mandal, Vizianagaram District. The Sub-Divisional Cooperative Officer, Vizianagaram issued show cause notice dated 01-11-2003 to the petitioners and certain others in exercise of power under Section 60(1) of the Andhra Pradesh Cooperative Societies Act 7 of 1964 (for short ‘the Act’) initiating surcharge proceedings. Taking the same into account, the President of the Society issued proceedings dated 05-12- 2003 directing recovery of a sum of Rs.1,10,008/- from the salaries of the petitioners. The said proceedings are challenged in this writ petition. 2. Heard the learned counsel for the petitioners and the learned Government Pleader for Cooperation. 3. The impugned proceedings are issued based upon the show cause notice dated 01-11-2003 issued by the Sub-Divisional Cooperative Officer, Vizianagaram, in exercise of power under Section 60(1) of the Act. It is only when a surcharge order under Section 60 of the Act is passed, that an employee or a member of the Society can be held responsible to pay the amount determined against him. Further, the aggrieved parties would have the right of appeal. There does not exist any justification for the 4th respondent in issuing the impugned proceedings, solely based upon a show cause notice. 4. Hence, the Writ Petition is allowed and the order dated 05-12-2003 of the 4th respondent is set aside. It is, however, left open to the 4th respondent to take necessary steps, depending on the outcome of the surcharge proceedings initiated by the Sub-Divisional Cooperative Officer. There shall be no order as to costs. ____________________ L. NARASIMHA REDDY, J October 21, 2010. KTL