1. This revision petition has been directed against the order dated 2.9.2004 passed by Joint Registrar (Special) Co-Operative Societies, Jammu by virtue of which he has decided that Secretary Rehmat Ali, Respondent shall deposit Rs. 50, 000/- as first installment against the principle amount within two weeks time and balance amount may be deposited Rs 50,000/- per year @ Rs. 4000/- per month in installment. 2. Petitioner Bank has challenged the impugned on the ground that order is without jurisdiction, that court below have committed a grave illegality of law in passing the order impugned, that order styled as compromised but infact it is not a comprise in legal sense and no statements have been recorded of the parties by court below with this regard, that while conducting surcharge proceedings the authority below has no other option than to conduct a inquiry and amount has to be recovered along with interest. 3. Heard both the counsels at length and perused the record of the court below. 4. Counsel for the petitioner reiterated all the grounds taken in the memo of revision petition whereas the respondents have supported the order impugned. 5. Record file reveals that a petitioner herein initiated surcharge proceeding under section 62 of Co-Operative Society Act 1960 (old act) against the respondent. In the petition it has been stated that Respondent Rehmat Ali, Secretary, Kupper Pargalta Society, Block Bari Barhamna after affecting the recovery from Members did not deposit the amount. That as per District Manager Jammu, respondent has retained amount of Rs. 7,59,361.28 illegally. It further appears from the record that parties were summoned and respondent was asked about his misdeed and he stated that he has deposited Rs. 80, 000/-. In this way Rs. 6,79,361/- was outstanding against the respondent. The court below after conducting proceeding, passed the impugned order which has been challenged by the Bank. Court below held as under:- that, secretary Rehmat Ali will deposit 50,000/-as first installment against the principal amount with in two weeks time and balance amount may deposit Rs 50,000/-annually of Rs. 4000/-per month. As the secretary could not recover the amount from 15 deceased person against cash credit so, future interest is waived off. Meanwhile applicant will enquire from the members Society regarding the non payable of amount by the deceased person from their kins. 4000/-per month. As the secretary could not recover the amount from 15 deceased person against cash credit so, future interest is waived off. Meanwhile applicant will enquire from the members Society regarding the non payable of amount by the deceased person from their kins. It is further ordered that if Secretary fails to pay the balance amount, the applicant is entitled to recover lump sum amount under Cooperative Society Act, 1989. 6. Section 62 of old act of 1960 deals with surcharge proceeding. It reads as under:- Cooperative Societies Act Section 62: Surcharge (1) If in the course of an audit, enquiry, inspection or the winding up of an cooperative society, it is found that any person, who is or was entrusted with the organization or management of such society, or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, the rules or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or willful negligence or misappropriated or fraudulently retained any money or other property belonging to such society, the Registrar may, of his own motion or on the application of the committee, liquidator or any creditor, inquire himself or direct any person authorized by him, by an order in writing in this behalf, to inquire into the conduct of such person (2) Where an inquiry is made under sub-section(1), the Registrar may, after giving the person concerned an opportunity of being heard, make an order requiring him to repay or restore the money or pay contribution and costs or compensation to such extent, as the Registrar may consider just and equitable. 7. Bare perusal of this section, it is evident that Registrar may of his own motion or on application made by any creditor or liquidator or Committee shall conduct inquiry if it is found that any person who was entrusted with management of Society or against any person who has been any officer or any official of the Society has caused any deficiency in the assets of the Society or misappropriated or fraudulently retained any money belonging to Society. Further after inquiry the Registrar, after giving opportunity of being heard, shall make an order requiring other person to pay or restore the money and costs or compensation as Registrar may consider just and equitable. 8. Further after inquiry the Registrar, after giving opportunity of being heard, shall make an order requiring other person to pay or restore the money and costs or compensation as Registrar may consider just and equitable. 8. After perusal of impugned order, I have come to conclusion that, the final order of the Registrar is not according to provision of surcharge proceeding on the ground that, he has directed the respondent to pay Rs. 4000/- per month as installment which at all is not genuine and proper, because there is huge outstanding against the respondent. Further no cost or compensation or interest has been imposed, which is also against the spirit of provision of Co-Operative Society Act. Money lying with the Co-Operative Society or Bank or Financial Institution is money of members and of public. Respondent has embezzled the money of a society, if such type of persons are spared without any stringent action, then definitely money of society will be looted. Respondent, being a Secretary of Society has retained and misappropriated a huge money and has caused a great loss to the Society. 9. In view of above this revision petition is accepted. Order of court below is set aside and the case is remanded back to the court below to pass fresh order after taking into the consideration the very purpose of Co-Operative Society Act. File of court below is sent back along with this order, where parties shall appear on 12.12 2011.