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2025 Supreme(Online)(Ker) 68607

IN THE HIGH COURT OF KERALA AT ERNAKULAM
K. Babu, J
ERNAKULAM DISTRICT CO-OPERATIVE EMPLOYEES' HOUSING CO-OPERATIVE SOCIETY LTD.NO. E. 933 – Appellant
Versus
THE JOINT REGISTRAR (GENERAL), OFFICE OF THE CO-OPERATIVE JOINT REGISTRAR – Respondent
Writ Petition | Article 226



Advocates:
For the Appellants/Petitioners: Not specified
For the Respondents: Not specified

A cooperative society can enforce salary deductions for loan recoveries based on documented agreements and non-response from parties.

Headnote:(A) Co-operative Societies Act - Section 37 - Writ of Mandamus - Writ petition filed seeking direction for deduction of dues from the salary and terminal benefits of cooperative society employees - The petitioner proved the amount due through agreed deduction arrangements. (Paras 2, 4, 6)

(B) The court adjudged that when there is clear documentation of dues owed by an employee along with supportive agreements for deduction, the deductions can be enforced via the appropriate registrars involved in cooperative management. (Paras 5, 6)

Facts of the case:
The petitioner provided a financial loan to a respondent who defaulted repayment, totaling Rs.12,00,000. The court acknowledged non-response from the opposing parties, allowing the petitioner’s request based on established agreements for salary deduction.

Findings of Court:
Respondent No.2 must deduct the specified amounts from respondent No.4 and remit these amounts to the petitioner’s account.

Issues: The primary issue concerns the enforcement of employee salary deductions to recover cooperative loan dues.

Ratio Decidendi: The court affirmed that clear agreements and written consent from the debtor enable legal enforcement of salary deductions to recover debts.

Result: Writ Petition is disposed of in favor of the petitioner.

Table of Content
1. petitioner claims loan recovery from salaries. (Para 2 , 3)
2. petitioner presented undisputed repayment agreement. (Para 4 , 5)
3. court orders salary deductions to fulfill repayment. (Para 6)

JUDGMENT

The prayers in this Writ Petition filed under Article 226 of the Constitution of India are as follows:-

“(i) Issue a writ of mandamus or appropriate order or direction directing the 1st respondent to direct the 2nd respondent to deduct a substantial amount from the salary of the respondents 4 and 5 and direct the 3" respondent to deduct requisite amount from the salary of the 6th respondent and further direct the respondents 2 and 3 to remit the deducted amount to the account of the petitioner by virtue of Section 37 of the Co-operative Societies Act .

(ii) Issue a writ of mandamus or appropriate order or direction directing the 2nd respondent to deduct or recover a substantial amount from the salary of the respondents 4 and 5 and direct the 3rd respondent to recover the amount form the 6th respondent till clear o the due amount and direct the respondents 2 and 3 to remit the deducted amount to the account of the petitioner in view of Exhibit P1 to P7.

(iii) Issue a writ of mandamus or appropriate order or direction directing the 2nd respondent to deduct the balance due amount from the terminal benefits of the 4th respondent.

(iv) To dispense with filing of the translation of the vernacular documents.

(v) Grant such other orders as this Hon’ble Court may deem fit proper considering the facts and circumstances of the case and iv) Grant the costs of this writ Petition. ”

2. The petitioner extended a financial loan to respondent No.4. He committed default in repaying the amount due to the petitioner. It is submitted that a sum of Rs.12,00,000/- (Rupees Twelve Lakhs only) is due to the petitioner from respondent No.4.

3. Notice was served on the party respondents. They did not turn up.

4. The learned counsel for the petitioner, relying on Exts. P9 and P10, submitted that respondent No.4 has agreed to deduct a sum of Rs.25,000/- (Rupees Twenty-Five Thousand only) from his monthly salary, and that the balance amount due to the petitioner shall be realised from his retirement benefits.

5. The assertions in the Writ Petition and the submissions are not refuted.

6. Having regard to the statements in Ext.P9 and the communication in Ext.P10 from respondent No.2, respondent No.2 shall deduct the salary and pensionary benefits of respondent No.4, as mentioned in Ext.P10, and remit the same to the petitioner's account.

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