Court mandated recovery of loan arrears from retirement benefits per cooperative law, affirming financial obligations of the employee.

EASWARAN S., J.

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W.P.(C) No.33010 of 2025 -------------------------------------

Dated this the 3rd day of September, 2025 JUDGMENT This writ petition is filed seeking the following reliefs:

A) To issue a writ of mandamus or any other appropriate writ, order or direction to the 2^nd respondent to consider Ext.P6 requisition and to take necessary action on the same as contemplated under Section 37 (2) of Kerala Co- operative Societies Act, 1969 and Article 89(3) of the Kerala Financial Code, Volume 1 for recovery of the loan arrears of the 4^th respondent from his DCRG and other retirement benefits;

B) To issue a writ of mandamus or any other appropriate writ, order or direction to the 2^nd respondent not to disburse the DCRG and other retirement benefits to the 4^th respondent without recovering the loan arrears due from the 4^th respondent to the petitioner society.

C) To pass such other writ order or direction that this Hon’ble Court may deem fit and proper in the facts and circumstances of the case;

2. The petitioner herein is an Employees’ Credit Society registered under the Kerala Co-operative Societies Act , 1969. It is stated that the 4^th respondent had availed a loan of Rs.3,00,000/-

(Rupees Three Lakhs only) from the petitioner society, and at the time of availing the loan, he was working as a Driver, Municipal Office Adoor, Pathanamthitta. At the time when the 4^th respondent availed the loan, the 3^rd respondent was the salary disbursing officer, and the 4^th respondent had also agreed that the dues can be recovered from his salary and pensionary benefits. When the 4^th respondent failed to remit the loan instalments, proceedings for recovery were taken by the petitioner society. It is stated that the 4^th respondent retired from service as a Driver on 31.03.2024 from Pallickal Panchayat, the 2^nd respondent is his disbursing officer for disbursing the DCRG and pensionary benefits, and the petitioner has submitted Ext.P6 request before the 2^nd respondent for recovery of the amounts. Thus, it is submitted that necessary directions be issued to the 2^nd respondent to take necessary action on Ext.P6 for the recovery of the amount due to the petitioner society from the DCRG and other retirement benefits of the 4^th respondent within a reasonable time.

3. Heard Sri. Shehroon Patel A.K., the learned counsel appearing for the petitioner, and Smt. Haritha V.A., the learned Government Pleader appearing for the respondents 1 to 3. In the nature of the order that this Court proposes to pass, notice to the party respondent is dispensed with.

4. On consideration of the rival submissions raised across the Bar, this Court is of the considered view that the writ petition can be disposed of directing the 2^nd respondent to take action on Ext.P6, in accordance with law, and forward the eligible amounts if any due to the petitioner society within a period of one month from the date of receipt of a copy of this judgment. Till Ext.P6 is considered, the 2^nd respondent is directed not to disburse the DCRG and other retirement benefits to the 4^th respondent if not already disbursed.

Sd/-