IMPORTANT POINT
Retirement benefits are generally exempt from attachment, but the specific nature of the attached amounts must be determined based on factual evidence, and alternative statutory remedies must be exhausted before seeking relief through a writ petition.

JUDGMENT :

(P.G. Ajithkumar, J.) :

The judgment dated 22.11.2022 in W.P.(C) No.32957 of 2022 is under challenge. Ext.P4 order of attachment was sought to be quashed. The further relief claimed was a direction to disburse Rs.6,69,450/-, which was held under attachment as per Ext.P4. The learned Single Judge allowed the writ petition. Respondents No. 1 and 2 in the writ petition assail the said judgment in this appeal filed under Section 5(i) of the Kerala High Court Act, 1958.

2. Heard the learned counsel for the appellants, the learned counsel for the 1st respondent and the learned Senior Government Pleader.

3. The 1st respondent retired as the Manager, Yendayar branch of the 1st appellant-Bank on 30.04.2022. His pensionary benefits were withheld by the 1st appellant stating that a huge amount was to be realised from him on account of his dereliction of duty. Hence, he filed W.P.(C) No.15990 of 2021 challenging that order, which was Ext.P6 therein. That writ petition was allowed ordering as follows:

“Ext.P6 issued by the 2nd respondent in so far as it imposes preconditions therein for payment and disbursement of terminal benefits of gratuity, welfare fund benefits and leave encashment benefits shall stand quashed. The petitioner shall be entitled to arrears of salary consequent to pay revision effected from 01.04.2017 as per G.O. (MS)No.5/2021/Co-op. dated 09.02.2021. The amounts due to the petitioner shall be disbursed within a period of three months from today. The right of the 1st respondent to initiate proceedings against the petitioner under the provisions of the Co-operative Societies Act and in accordance with law and to recover loss/damages will stand reserved.”

4. In compliance to the said judgment the retiral benefits due to the 1st respondent were credited to his account. Later, the 1st appellant approached the 3rd respondent-Joint Registrar (General), Kottayam seeking an order of attachment before judgment. The Joint Registrar in exercise of his powers under Section 78 of the Kerala Cooperative Societies Act, 1969 (KCS Act) ordered to attach Rs.6,69,450/-from the amount of the retiral benefits of the 1st respondent. Ext.P4 is the said order.

5. The contentions of the 1st respondent in the writ petition were two-fold. Firstly, that the retirement benefits, which comprises gratuity, provident fund, welfare fund benefits, leave encashment benefits etc. was not liable for attachment and secondly, that the remedy of the 1st appellant was not to attach the retiral benefits, but to resort to the provisions under the Co-operative Societies act for realisation of the amount, if any is due. The contentions were accepted by the learned Single Judge and allowed the writ petition.

6. The learned counsel for the appellants would submit that the Registrar, as the case may be, the Joint Registrar of the Co-operative Societies, is empowered under Section 78 of the KCS Act to order attachment before judgment and the remedy for the person concerned is to challenge such an order by filing objection before that authority. It is also submitted that sufficient appellate and revisional resources are provided under the statute itself and therefore a writ petition in the matter is not maintainable. It is further submitted that the benefits were already disbursed and the money in the account of the 1st respondent was attached wherefore also the writ petition has to fail.

7. The learned counsel for the 1st respondent besides supporting the impugned judgment, refuted the contention that the retiral benefits at the hands of the employee also is amenable to attachment. It is also submitted that no sufficient ground for ordering an attachment has been made out. The learned counsel for the 1st respondent avails assistance to his contentions from the decisions in Govt. Servants Co-op.Society Ltd. v. Sukumaran Nair [1986 KLT 1354], Radhey Shyam Gupta v. Punjab National Bank and another [(2009) 1 SCC 376] and Mohanan Nair v. Omallur Service Co-operativ