GUJARAT HIGH COURT
KUNDAN SINGH, J
SHOBHNA DAMODAR ERANDE – Appellant
Versus
STATE OF GUJARAT – Respondent
SPECIAL CIVIL APPLICATION No 8884 of 1991
| Table of Content |
|---|
| 1. petitioner's request for retiral benefits and loan recovery. (Para 1 , 2) |
| 2. legal arguments regarding the attachment of pension and gratuity. (Para 3 , 4) |
| 3. discussion on the liability of the surety and recoverability from deceased borrower's estate. (Para 5 , 6) |
| 4. conclusion on government's rights and obligations in pension recovery. (Para 7 , 8) |
JUDGEMENT
This petition has been filed for a direction to the respondents to issue "No due certificate" and start paying provisional pension to the petitioner so that the petitioner may get retiral benefits.
2.One Smt. Pushpalata Yashwantrao Chinchore took loan of Rs.30,750/- for the purchase of ready-made house. The petitioner executed a surety bond for the obligation to the extent that the borrower shall duly and regularly pay or cause to be paid to the Government, the amount of the said loan with interest thereon by instalments at the rate and in the manner set out in the said agreement/mortgage. When the said loan of Rs.30,750/- and interest shall be duly paid, then this bond would be void otherwise the same shall remain in full force and valid, but so nevertheless that borrower shall die or become insolvent or at any time ceases to be in service of the Government or commit the breach of any condition or provisions contained in the said agreement/mortgage, whole or so much of the principal sum of the said loan with interest thereon as shall have been remained unpaid shall immediately become due and payable to the Government and recoverable from the surety together with all further interest at the same rate as arrears of land revenue in one instalment by virtue of this Bond. The obligation undertaken by the surety shall not be discharged or in any way affected by an extension of time or any other indulgence granted by the Government to the said Borrower and that for the purpose of its enforcement the liability undertaken by the Surety hereunder shall be construed as joint and several liability alongwith the liability of the Borrower under the said Agreement Mortgage.
Lateron the borrower died and the amount of loan could not be recovered. The petitioner being a Government servant, retired int he year 1990. The retiral benefits including gratuity and pension etc.
have been withheld by the respondents and "No due certificate" has not been issued to the petitioner.
Hence, the petitioner has filed the present petition.
3.The learned counsel for the petitioner submitted that gratuity and reitral benefits such as pension and gratuity cannot be attached by the Government under section 60(1)(G) of Civil Procedure Code , wherein it is mentioned that stipends and gratuities allowed to pensioners of the Government (or of a local authority or of any other employer) or payable out of any service family pension fund notified in the Official Gazette by (the Central Government or the State Government) in this behalf, and political pensions shall not be liable to attachment or sale.
4.I have carefully considered this contention of the learned counsel for the petitioner.
However, I do not find any substance in this contention inasmuch as the provisions of section 60 of Civil Procedure Code are applicable to the attachment and sale in execution of a decree. In the present case, there is no question of execution of any decree. Hence, this provision of section 60 of Civil Procedure Code is not applicable in the present case. Moreover, the loan amount was given by the Government and the amount of retiral benefits are also being paid by the Government and the Government is entitled for adjusting the amount which is due under any obligation. Under the terms of the surety bond, the petitioner is liable to pay the entire amount.
5.The learned counsel for the petitioner further argued that the amount of the
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