Valerian Paul v. Registrar of Co-operative Societies & Narumu Manushi Co-operative Society Ltd. Misc. Civ. App. 1-A-69; 3/9/69; Platt J.

Valerian Paul v. Registrar of Co-operative Societies & Narumu Manushi Co-operative Society Ltd. Misc. Civ. App. 1-A-69; 3/9/69; Platt J.

The first respondent, the Registrar of Co-operative Societies, surcharged the appellant under section 71(2) of the Co-operative Societies Act No. 27 of 1968, as a result of an inquiry into the activities of the N.M. Co-operative Society, the second respondent. Through the inquiry, the 1^st respondent was satisfied that the appellant was partly responsible for negligence and misconduct which resulted in a heavy loss. The appellant appealed against the surcharge, and joined he society as a second respondent in addition to the registrar.

            Held: (1) “The salient feature of such an appeal seems to me to be that he appellant is challenging the order of surcharge made by the Registrar. The latter does not act by or with the consent of the Society. It is his discretion whether, as a result of the inquiry having been held under section 68 of the Act or the inspection held under section 69 of the Act, any officer or a member of a Society should be surcharged. The appeal principally challenges the manner in which the surcharged was made or the quantum. The argument then concerns the difference of opinion directly arising between the Registrar and the person surcharged. No doubt the Society may in one sense be the beneficiary of the order and it is the Society’s affairs which have been inquired into or inspected; but the power of surcharge is an over-riding power given to the Registrar for the purpose of controlling the proper management of the affairs of a co-operative society”. “The Narumu Manushi Co-operative Society should not have been joined as second respondent to this appeal.”