The court reaffirmed the authority of cooperative societies to recover loans from defaults through salary deductions and retirement benefits under relevant statutory provisions.

J U D G M E N T

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The petitioner, a KSRTC employee, is aggrieved by the recoveries from different authorities through the KSRTC. The 4th respondent Co-operative Society has filed a counter affidavit with Ext.R4(A) statement. The uncontroverted version therein is as follows:

“The petitioner, Shri.Thoma A, having membership No.14730, had availed a loan No.BAL-42417 of Rs.70,000/- on 11.12.2002 with repayment condition on 49 instalments ending on 11.1.2007. The repayment of the loan instalments were in arrears for months together. The loan outstanding balance as on 8.2.2007 comes to Rs.83919/- after remittance of deduction of Rs.27536/- including the recovery in 11/06 and in 12/06 for Rs.3109/- and Rs.4178/- respectively. The petitioner is having only 21 months service left. At the time of retirement of the petitioner, he may not be get the retiral benefit immediately as it may take at least 2-3 years. Hence, it is necessary to direct the petitioner to clear outstanding pending against his loan with the respondent Society directly or direct the first respondent to recover the same from retirement benefits including the P.F., S.W.F and other amounts on the basis of undertaking in agreement, Surety bond, consent letter etc., executed by the petitionr as well as the sureties and to remit it to this respondent within a reasonable time.

It is therefore, humbly submitted that so far as the liability existing against the petitioner on account of loan availed from 4th respondent, the petitioner has no firm pleadings in the writ petition. He admits the failure on his part to remit the amount. Pleadings are highly vague also. It is incorrect that he had availed a loan of Rs.80,000/- from the 4th respondent. It was Rs.70,000/- as stated above. There is no materials or documents produced by the writ petitioner to stop the recovery towards loan No.BAL 42417 availed on 11.12.2002 by the writ petitioner from 4th respondent. Therefore, neither the interim relief nor the prayers for restraining the 4th respondent as well as KSRTC from recovering the loan amount due to the 4th respondent from his salary is justified. He may remit the balance amount of Rs.83,919/- as on 8.2.2007. Hence, it is prayed that the KSRTC may be directed to deduct Rs.4000/- regularly from his monthly salary for 21 months and deduct the remaining amount from his P.F./D.C.R.G. payment whichever is earlier and to remit the recovered amounts within seven days of such recovery.”

2. In the light of the aforesaid, the KSRTC has to workout the question of recovery from the salary due to the petitioner in so far as it relates to payment to the 4th respondent Society.

3. In as far as, KSFE loans are concerned, the petitioner's contention is that the KSRTC has not transmitted to KSFE the entire amounts recovered from the petitioner and the principal debtors. 4. The 1st respondent will therefore ensure that it transmits to respondents 2 to 4 any amount that has already been deducted from the petitioner or the principal debtors of KSFE and which has been retained by the KSRTC without transmission. This shall be done within a period of one month from the date of production of a copy of this judgment. The KSRTC will continue to make deductions and also effect deductions in terms of agreements under Section 37 of the Kerala Co-operative Societies Act from the retiral benefits, if there is an agreement to that effect. Such amount shall also be given due credit to the aforesaid creditors and the retiral benefits of the petitioner, if any, that may be due upon his demitting service will be dealt with in terms of the aforesaid directions.

The Writ Petition is ordered accordingly.

THOTTATHIL B. RADHAKRISHNAN, Judge ps