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IN THE HIGH COURT OF KERALA AT ERNAKULAM
N.NAGARESH
N.B. Suresh Kumar, S/o K. Bhaskarakurup – Appellant
Versus
Kerala State Financial Corporation (KSFE) – Respondent
| Table of Content |
|---|
| 1. recovery proceedings against dcrg are challenged. (Para 3 , 4) |
| 2. recovery from dcrg is impermissible under the payment of gratuity act. (Para 5 , 6 , 7) |
| 3. previous judgments affirm gratuity protection. (Para 8 , 9 , 10 , 11 , 12) |
| 4. writ petition disposed of with directions. (Para 13) |
JUDGMENT :
N.NAGARESH, J.
The petitioner is before this Court aggrieved by the recovery proceedings targetted against the Death cum Retirement Gratuity (DCRG) due to him, in violation of specific statutory provisions and binding precedents.
2. The petitioner is working as Programme Co-ordinator of the State Resource Centre, Thiruvananthapuram. He stood as one of the guarantors for the Chitty No.35/16-18 prized by Mr. Mohanachandran Nair, the principal borrower, in the year 2017. The 4th and 6th respondents were the other guarantors to the prized Chitty. The petitioner states that he was forced to give an agreement for recovery from salary and terminal benefits.
3. The principal borrower defaulted in repayment of the prized Chitty. The principal borrower passed away on 08.11.2019. The legal heirs did not come forward to clear the dues. The KSFE and the Special Deputy Tahsildar (RR) initiat
Gratuity cannot be attached for recovery of debts as per statutory provisions, emphasizing the unenforceability of agreements contrary to the Payment of Gratuity Act.
Point of law: If employee claims DCRG under the KSR, the amount of gratuity will be determined under Rule 68 of Part III of the KSR, subject to the maximum prescribed thereunder.
Even consent given to creditor organisation like K.S.F.E. or Bank unconditionally agreeing for recovery from his retirement benefits will be sufficient compliance of Ruling 1 of R. 3 Part III K.S.R.,....
Consent to recover dues from retirement benefits cannot override statutory protections against such recovery under public policy.
Gratuity payable to a deceased employee is attachable as part of the estate, provided it was not received by the employee before death, distinguishing it from cases of received gratuity.
Gratuity under the Payment of Gratuity Act cannot be withheld without established disciplinary proceedings or quantifiable losses, as per statutory provisions protecting gratuity from attachment.
Amended regulations on deductions from retirement gratuity do not apply retroactively to loans granted before their enactment, preserving previously established employee consents.
Gratuity under the Payment of Gratuity Act cannot be withheld on the basis of dues unless misconduct is established prior to retirement.
The court mandated the implementation of a Recovery Certificate under the Payment of Gratuity Act within a specified timeframe.
Written consent is essential for the recovery of debts from a Government employee's D.C.R.G.
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