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2005 Supreme(Ker) 575

Judges : K.A.ABDUL GAFOOR,K.HEMA
P.S.Surendran - Appellant
Versus
Secretary, Mavelikkara Primary Co-Operative Agricultural and Rural Development Bank Ltd.& Others - Respondent
Case No : WA.No.1654 of 2003 (A)
Decided On : 09/09/2005
Advocates Appeared :
For the Appellant : P. Ravindran, Advocate. For the Respondents: R1, K.R. Chandrasekharan Nair, Advocate, R2 & R3, Vaheeda Babu, Government Pleader.

Headnote:

Kerala Co operative Societies Act 1969 - Section 37 - Can an amount due to a Co-operative Society from its member be recovered from the Death-cum-Retirement Gratuity under S.37 of the Co-operative Societies Act, 1969 - Can such dues be recovered from DCRG under R.3 Part III, Kerala Service Rules - What does the term "salary" mean in this context - Held, Consent of employee is an essential factor to effect any recovery from DCRG and such consent shall be in writing also - In the absence of any such consent in writing, no recovery can be effected from DCRG which is payable to the employee - Order impugned in this appeal is liable to be set aside - Court do so - Ext.P8 and Ext. P9, to the extent to which those direct withholding of DCRG in respect of appellant's dues to first respondent-society are unsustainable and those are hereby quashed - Appeal Allowed.

Judgment :-

Hema, J.

Can an amount due to a Co-operative Society from its member be recovered from the Death-cum-Retirement Gratuity (DCRG, for short), under Section 37 of the Co-operative Societies Act, 1967 ('the Act' for short)? Can such dues be recovered from DCRG under Rule 3 Part III, Kerala Service Rules (KSR, for short)? What does the term "salary" mean in this context? These are the three main questions which are to be considered in this appeal.

2. Brief facts are as follows: Appellant retired from government service on 30.6.2000 as Sub Registrar. But, DCRG was not paid even after expiry of two years of retirement and hence, he filed O.P.No.22258 of 2002 before this court. Accordingly, this Court directed for fixation of liability and payment of DCRG within three months from the date of receipt of copy of the judgment. Thereafter, 2nd respondent-District Registrar issued Ext.P8 letter dated 26.2.2003 to Sub Treasury Officer to withhold an amount of Rs.76,000/- from appellant's DCRG, that being the dues from appellant towards first respondent-Society. Ext.P9, Liability Certificate was also issued by second respondent on the same day, certifying that appellant's liabilities (which includes the dues to the society referred above) are to be recovered from his DCRG. Hence the present writ petition was filed seeking a writ of certiorari to quash Exts.P8 and P9 and also for a direction to respondents to disburse DCRG and retirement benefits due to the appellant, as fixed in Ext.P5 which is the Gratuity Payment Order issued from the Account General's Office, with 10% interest. The writ petition was dismissed as per the impugned order and hence this appeal.

3. Learned counsel appearing for the appellant strenuously contended that even if the alleged liability of appellant is admitted, recovery of such dues cannot be effected from DCRG, either under the provisions of Co-operative Societies Act or under Rule 3 Part III, KSR, since it will be against the express provisions contained therein. Neither the Act, the Rules nor KSR permits any such recovery to be made from DCRG. As per section 37 of the Act, recovery of the dues to a society from its member can be made only from "salary" and not from DCRG.

4. To appreciate merits of the above arguments, reading of Section 37 of the Act as well as Rule 52 of the Rules will be apt. Section 37 of the Act can be extracted as hereunder:

"Section 37. Deduction from salary to meet society's claim in certain cases.-(1) Notwithstanding anything contained in any law for the time being in force, a member of a society, may execute an agreement in favour of the society providing that his employer or the officer disbursing his salary or wages shall be competent to deduct from the salary or wages payable to him by the employer, such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the Society.

(2) On the execution of such an agreement, the employer or the officer disbursing the salary or wages of any such member as is referred to in sub-section (1) shall, if so required by the society by requisition in writing and so the society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement and pay the amounts so deducted to the society within seven days from the date of the deduction."

5. Before dealing with the scope of the provision extracted above, a skeletal reference to some more factual details will be relevant. As per the averments in the counter statement filed by first respondent-society, we find that the very foundation of the society's claim against appellant rests on a document executed by appellant in favour of the society. The copy of the said document is Ext.R1(b). It is revealed from Ext.R1(b) that appellant stood as surety to a loan availed of by one Anil Kumar from the first respondent-Society. Bu


























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