1998 (6) TMI 565

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.... and R-4; Sri G. Krishna Murthy, Advocate for R-3; R-2- served. ORDER The 1^st petitioner was the President of the 3^rd respondent-society during the year 1989-90. The order petitioner are directors. As per the direction of the 3^rd respondent-society the Government of Karnataka appointed a senior the Government of Karnataka appointed as senior auditor to audit the accounts of the society. T....

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....cond Audit report at Annexure-D dated 16.05.1991 also fixed the liability of each of the petitioners individually. This audit report is now challenged in this writ petition. 2. The main contention of the learned counsel for the petitioners is that the First Audit Report which was approved by the general body and which is more less in the same of the Second Audit Report is binding on the respond....

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....spondent-society was also of the opinion that the first audit report which innovated the petitioners would be the correct basis for proceeding against the petitioners in accordance with law. 4. Apart from this, the Registrar has also initiated proceedings against the petitioners under Section 64 of the Act on the basis of an independent enquiry relying on both the audit reports. 5. The learn....

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..... 6. The learned counsel for the petitioners also submits that he is prepared to face the music on the basis of the first audit report and it is alo submitted y the learned counsel for the society that proceeding are also initiated under Section 64 and 68 of the Karnataka Co-operative Societies Act. In that view of the matter, the second audit report dated 16.05.19914 is liable to be quashed....