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IN THE HIGH COURT OF KERALA AT ERNAKULAM
N. NAGARESH
Renjith K.K. S/o Rajan – Appellant
Versus
Cheruvannur Service Co-Operative Bank Ltd. – Respondent
JUDGMENT :
N. NAGARESH, J.
1. Petitioners both in these writ petitions have approached this Court seeking to direct the respondents not to proceed with recovery from their salary towards repayment of loans availed from the 1st respondent-Bank.
2. The petitioner in W.P.(C) No.17914/2025 submits that his mother availed a loan from the 1st respondent-Cheruvannoor Service Co-operative Bank Limited on 17.03.2018 creating an equitable mortgage. The petitioner was made a co-obligant. In fact, the petitioner's mother had provided valuable property as security.
3. When loan account fell into arrears, the sale officer issued Ext.P6 auction notice intending to proceed against the mortgaged property. However, the petitioner was served with Ext.P7 auction notice directing the petitioner to remit Rs. 6,05,691/- failing which coercive steps were to be taken. Thereafter, the Secretary of the Bank issued Ext.P8 proceedings on 16.04.2025 to the Headmistress of the School where the petitioner is engaged as a Teacher. Ext.P8 seeks to deduct amounts from the petitioner's salary every month.
4. The petitioner states that there is substantial security provided by the borrower. The petitioner himself had repai
A party's voluntary consent to salary deductions for loan recovery cannot be later contested under Section 60 of the Code of Civil Procedure.
The bank's right to attach a guarantor's salary account is limited by statutory provisions, emphasizing the need to respect fundamental rights while enforcing liens under the Indian Contract Act.
The court reaffirmed that the liability of a guarantor is equivalent to that of the principal debtor, thus allowing actions against the guarantor without first proceeding against the debtor.
Recovery of amounts under motor vehicle awards can be executed through salary attachment under the Revenue Recovery Act, subject to CPC limitations.
The court underscores the necessity of adhering to procedural laws regarding execution orders and salary attachment, emphasizing the importance of properly considering pending applications.
The bank holds a valid lien over the salary account to secure repayment of loans, and the statutory protections under Section 60 CPC do not apply to non-attachment actions by the bank.
The executing court must adhere to prescribed statutory procedures in recovery actions, especially in avoiding double recovery from judgment debtors.
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