Point of Law: Clause (c) of Section 8(1) of 2nd schedule to Act excludes from jurisdiction of Lok Ayukta, cases of contracts having commercial relations.

JUDGMENT :

[Murali Purushothaman, J.]

1. Since common issues arise for consideration in these writ petitions, they are disposed of by this common judgment. For the sake of convenience, unless otherwise specifically indicated, the status of the parties and the exhibits referred to hereinbelow shall be as obtaining in W.P.(C) No.1948/2021.

2. The Regional Cancer Centre Employees Co-operative Society (hereinafter referred to as ’Society’), a Society registered under the Kerala Co-operative Societies Act, 1969, has filed the writ petitions challenging Ext.P5 common order passed by the Kerala Lok Ayukta (‘Lok Ayukta’ for short) in Complaint Nos.1060/16B and 1062/16C preferred by the 1st respondent in the above writ petitions respectively (hereinafter referred to as ‘complainants’).

3. The short facts necessary for the disposal of the writ petitions are as follows :

The complainants were Class-IV employees working as Cleaners in the Regional Cancer Centre (RCC), Thiruvananthapuram. They received a letter dated 25.10.2014 from the Society informing that they had stood as sureties to Smt. Ambika Devi, the 2nd respondent, another Class-IV employee of the RCC (hereinafter referred to as ‘loanee’) for a loan of Rs.3,00,000/-availed by her on 12.03.2012 from the Society and the loanee committed default in repayment of the loan and an amount of Rs. 1,40,472/-remains to be paid by the loanee. The complainants were therefore informed that if they failed to remit the said dues to the Society, monthly recovery will be effected from their salary starting from November, 2014. The complainants immediately got in touch with the Society and made a request to show the alleged agreement stated to have been executed by them before the Society in connection with the said loan transaction. Later, they were served with another notice dated 13.01.2015 indicating that a sum of Rs.1,43,483/-remains to be paid out of the loan transaction and that a sum of Rs.2,000/-each will be recovered from their monthly salary starting from January, 2015 till the closure of the loan account. The complainants submitted a representation and also caused to issue lawyer's notice to the Secretary of the Society stating that they are not liable to make any remittance towards the loan availed by Smt. Ambika Devi and not to make further recovery from their salary. However, the Society informed them that the recovery at the rate of Rs.2,000/-each from their salary will be continued till the entire dues payable by the loanee under the loan transaction are recovered. The complainants, therefore, approached the Lok Ayukta contending that there is clear mal-administration on the part of the Society as well as their employer and they are being subjected to misery and hardships and prayed to issue necessary direction to the Society to realise the dues to the Society from the principal debtor and to recommend to drop further proceedings against the complainants.

4. The Society filed a version before the Lok Ayukta wherein it was contended that the complainants had stood as sureties for a loan of Rs.3,00,000/-availed by the loanee which was disbursed to her on 12.03.2012. It was further stated that the 3rd respondent, the Accounts Officer of RCC, had been effecting recovery from the monthly salary of the loanee as requested by the Society till her superannuation on 31.10.2014. According to the Society, a sum of Rs.1,64,697/-was due to it as on 23rd October, 2014. Complainants were accordingly informed about the outstanding dues in the loan account and monthly recovery was being effected from the complainants from January, 2015 and an amount of Rs.42,000/-had already been recovered. It is stated that the balance amount payable towards the loan account as on 12.01.2017 is Rs.85,862/-.

5. The loanee filed a version before the Lok Ayukta admitting that she had taken a loan of Rs.3,00,000/-in March, 2011 and since she was sent out of employment prematurely on 31.10.2014, the amounts could not