MANISH MATHUR,J - (1.) Heard Shri R.S. Pandey, learned Senior counsel appearing on behalf of petitioners assisted by Shri Malkhan Singh and the learned State counsel appearing on behalf of opposite parties.
(2.) Under challenge are orders dated 28.10.2013 passed by the Cooperative Tribunal in appeal and order dated 04.7.2013 passed by the Assistant Registrar Co-operative Societies under Section 68 of U.P. Co-operative Societies Act, 1965 imposing surcharge upon petitioners for having caused loss to the society concerned.
(3.) As per averments made in writ petition, at the relevant time petitioner no.1 was the elected Chairman of the Faizabad Bank Employees Co-operative Societies Limited, Faizabad (hereinafter referred to as society) while petitioner no.2 was Secretary thereof. It has been stated that while administrator was running affairs of the society, recovery certificates were issued against 47 members of the society in which recovery charges were also included. Subsequently, some of the debtors had filed petitions before this Court against recovery proceedings in which this Court had directed them to file arbitrations in terms of Section 70 of the Act, 1965. Subsequently, arbitrations were allowed holding that recovery charges could not have been imposed upon creditors. One such order dated 03.8.2013 has been brought on record by means of affidavit dated 13.01.2019.;