Power of the Registrar to order recovery of losses

(1) A member, director, chairman of the society, or any officer authorised by the Registrar may, file a copy of the report of the auditor or the special auditor or the inquiry officer, before the Registrar with an application for necessary action against the person on account of whose conduct the society has incurred loss. The Registrar may, on the basis of such report, disallow every item of expenditure incurred contrary to law and order recovery of the same from the person incurring or authorising the incurring of such expenditure, or held responsible in the said report for any deficiency, loss or unprofitable outlay occasioned by his negligence or misconduct of any such amount which ought to have been accounted but is not brought into account by that person and shall, in every such case, specify the amount liable to be paid by such person to the society. Explanation:— It shall not be open to any person whose negligence or misconduct has caused or contributed to any such deficiency or loss, to contend that notwithstanding his negligence or misconduct, the deficiency or loss would not have occurred, but for the negligence or misconduct of some other person. (2) The Registrar or the person authorized by him shall state in writing the reasons for its decision in respect of every dis-allowance or surcharge and a copy of such decision shall be served on the person against whom it is made in the manner laid down for the service of summons in the Code of Civil Procedure, 1908 (V of 1908): Provided that the Registrar shall not pass any order of recovery under this section unless the person against whom any such order is passed had an opportunity of making a representation either by himself or through a Counsel. (3) Any person aggrieved by an order passed under this section may, within sixty days after the date of service on him of the order by the Registrar, file an appeal against such order in the Co-operative tribunal. (4) Where an appeal is filed in the Co-operative Tribunal under sub-section (3), the persons who filed the application before the Registrar or his representative shall be the sole respondent thereto, and the applicant shall not make any other person a party to the proceedings. (5) Every order passed by the Registrar or order passed by the Co-operative Tribunal shall be executed in the same manner as a decree of a Civil Court under the Code of Civil Procedure, 1908 (V of 1908). (6) Where a person is held liable by the Registrar for misappropriation, fraud, breach of trust, cheating or any other act involving moral turpitude, resulting in a loss to the society, he shall be punishable under the relevant provisions of the Indian Penal Code, 1860 (45 of 1860).