(1.) This petition is directed against the order of the District Assistant Registrar, Co-operative Societies, Banda, dated December 30, 1974 and the order of the U. P. Co-operative Societies Tribunal, dated June 24, 1975.
(2.) The Attara Sahkari Kraya Vikraya Sahkari Samiti Ltd. Banda is a Co-operative Society registered under the provisions of the U. P. Co-operative Societies Act, 1965. The society owns a Rice Mill and it undertakes the processing of paddy belonging to its members and acts as the agent for the produce on their behalf. For the year 1974-75 the Society entered into an agreement with the Firm M/s. Lakhan Singh Narbada Prasad for the processing of the paddy. The agreement was executed on February 15, 1974. The committee of management bad passed a resolution for the purpose earlier of December 28, 1973. In the carrying out of the agreement there was certain loss incurred by the Society. A notice was issued to the petitioners which was followed by an order of the District Assistant Registrar, Co-operative Societies, Banda, dated December 30, 1974 whereby they express the view that the loss incurred was to the tune of Rs. 8923.0s and the petitioners were directed to pay the same as surcharge. The matter was taken in appeal to the Tribunal which recorded the finding dated June 24, 1975, to the effect that the amount of loss incurred was Rs. 5166.52 instead. Aggrieved against the surcharge thus imposed, the petitioners filed this petition.
(3.) Learned counsel for the petitioners raised twofold arguments in the main :