(1) The Controlling Authority may after considering the recommendation of the [ Director] or of any head of a Department under the proviso to sub-section (3) of Section 10, as the case may be, and after taking the explanation of the person concerned, or making such further inquiry, as he may consider necessary, disallow any item which appears to him to be contrary to law and surcharge the same on the person making or authorising the making of, the illegal payment and may charge against any person responsible therefor the amount of any deficiency, waste or loss caused by the gross negligence or misconduct of that person or any sum received which ought to have been but is not brought into account by that person and shall, in, every such case, certify the amount due from such person:
Provided that no order of surcharge or charge shall be made under this Act in respect of any item included in, or which ought to have been included in, but was omitted from any accounts for any period prior to 1 st April, 1955.
(2) The controlling Authority shall state in writing the reasons for its decision in respect of every surcharge or charge and shall send by registered post a copy thereof to the person against whom it is made.
(3) If a person to whom a copy of the decision of the Controlling Authority is sent under sub-section (2) refuses to take delivery thereof, he shall be deemed to have duly received it on the day on which it was refused by him.