IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN WEDNESDAY, THE 12TH MARCH 2008 / 22ND PHALGUNA 1929 WP(C).No. 36101 of 2007(W) -------------------------- PETITIONERS: ------------ 1. SANTHOSH, PULIMOOTTIL, THAMALAKKAL SOUTH P.O., KATTIL MARKET, HARIPPAD. 2. SANTHAPPAN, THETTIMOOTTIL, THAMALACKAL NORTH, KATTIL MARKET, HARIPPAD. BY ADV. SRI.VINCENT JOSEPH SRI.NIDHI BALACHANDRAN SRI.V.BOBAN RESPONDENTS: ------------- 1. STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT, DEPARTMENT OF CO-OPERATION, SECRETARIAT, THIRUVANANTHAPURAM. 2. SECRETARY TO GOVERNMENT, DEPARTMENT OF INDUSTRIES, SECRETARIAT, THIRUVANANTHAPURAM. 3. THE PROJECT OFFICER(COIR), KAYAMKULAM. 4. THAMALACKAL SOUTH CVCS LTD, NO.460, REPRESENTED BY ITS SECRETARY. R1 BY GOVERNMENT PLEADER, SMT.ANU SIVARAMAN BY ADV. SRI.V.G.ARUN SRI.T.R.HARIKUMAR, SC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 12/03/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C) NO.36101/07. APPENDIX PETITIONER'S EXHIBITS: EXT. P1: COPY OF THE ORDER NO.B/278/02 DATED 19/3/05 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER. EXT. P2: COPY OF THE REVISION FILED BY THE PETITIONER BEFORE THE 2ND RESPONDENT ON 16/8/05. EXT. P3: COPY OF THE G.O.(RT) NO.1070/07 ID DATED 13/8/07 ISSUED BY THE 2ND RESPONDENT. /TRUE COPY/ P.S. TO JUDGE JP THOTTATHIL B. RADHAKRISHNAN, J. = = = = = = = = = = = = = = = = = = = = = = = = WP(C).No.36101 of 2007-W = = = = = = = = = = = = = = = = = = = = = = = = Dated this the 12th day of March, 2008. JUDGMENT 1.Learned Senior Government Pleader takes notice for the first respondent. Service complete. 2.The petitioners faced proceedings for surcharge. Ext.P1 order was issued against them on 19-3- 2005. On 16-8-2005, they filed a revision petition against that decision. On 13-8-2007, the Government issued Ext.P3 order rejecting the revision stating that no merits is found in the contentions of the petitioners that Ext.P1 order is not as per the provisions of the relevant Act WP(C)36101/2007 -: 2 :- and Rules. It is also stated that the Government have considered all the relevant aspects of the case and the petitioners were heard personally. 3.The only issue on the basis of which this writ petition is filed is that Ext.P3 is a cryptic order and the same is, hence, bad. 4.Section 68 of the Kerala Co-operative Societies Act, 1969 authorizes surcharge. If the categories of persons stated therein have made any payment contrary to the Act and the rules or the bye-laws, or have caused any loss or damage in the assets of the society by breach of trust or wilful negligence or mismanagement or have misappropriated or fraudulently retained any money or other property belonging to such society or have destroyed or caused the destruction of the records, the power to surcharge can be exercised only after conducting an inquiry after giving the person concerned an opportunity of being heard. The resultant order may be one requiring the WP(C)36101/2007 -: 3 :- person surcharged to repay or restore the money or other property with interest, or to pay contribution and costs or compensation to such extent as the Registrar may consider just and equitable. The quality of the consequences that can follow out of such a procedure, obviously, requires the revisional authority under Section 87 to consider the case and state reasons for its conclusions. The statement of reasons in that regard has necessarily to be by considering the specific grounds raised challenging the order of surcharge. A perusal of Ext.P2 would show that specific grounds, which are of different nature, have been raised. Under such circumstances, it was improper that the said revision was rejected without stating specific reasons of rejection. Hence, Ext.P3 requires to be set aside paving way for re-consideration of Ext.P2. 5.In the result, Ext.P3 is quashed and it is directed that Ext.P2 will be take up, considered and disposed of in accordance with law within an WP(C)36101/2007 -: 4 :- outer limit of six months. The writ petition is allowed as above. THOTTATHIL B. RADHAKRISHNAN, JUDGE. Sha/