(1.) Petitioner - Society challenges the order dated 31.08.2006 in C.T.A.No. 11 of 2005 on the file of the 4th respondent - A.P. Cooperative Tribunal at Warangal, which set aside the surcharge order dated 19.04.2005.
(2.) Heard learned counsel for the petitioner as well as learned Government Pleader for Cooperation.
(3.) Proceedings were initiated in terms of Section 60 of the Telangana Cooperative Societies Act, 1964 (for short, 'the Act') against the 1st respondent - Secretary based on the report emerged pursuant to the inspection conducted under Section 52 of the Act and an order dated 23.11.1999 was passed by the 2nd respondent for Rs.80,654.55 ps. with interest at 18% per annum. The said surcharge proceedings were challenged in CTA No. 95 of 2000 before the Co-operative Tribunal at Hyderabad, on the sole ground that without examining the witnesses independently and without conducting enquiry as required under Section 60 of the Act, no surcharge proceedings could be issued. The said Appeal was allowed by order dated 23.11.1999 and the matter was remanded to the petitioner for conducting enquiry afresh. On remand once again, the impugned order was made in C.T.A.No. 11 of 2005, without examining the President and Secretary against whom surcharge proceedings were issued. The Tribunal in para 12 of the said order recorded as under: