The withholding of PF loans by an employer based on financial hardship is arbitrary and violates employee rights under Article 300 A.

JUDGMENT

Dated this the 2^nd day of February, 2026 The petitioners state that they are employees of the Kerala State Road Transport Corporation (KSRTC) attached to various Depots. They applied for loans from their PF credit accounts.

2. The petitioners alleged that even after lapse of long time, PF loans have not been sanctioned and disbursed to the petitioners. They have applied for PF loan to meet emergent needs. Failure of the respondents to pay the PF loan is highly arbitrary and unsustainable. It offends Article 300 A of the Constitution of India , contends the counsel for the petitioners.

3. Standing Counsel entered appearance and resisted the writ petition. The Standing Counsel submitted that the KSRTC is facing certain financial difficulties and the PF loan application submitted by the petitioners would be considered in due course of time and amounts will be paid to the petitioners soon as per their eligibility.

4. I have heard the learned counsel for the petitioners and the learned Standing Counsel representing the respondents.

5. The petitioners are employees of the KSRTC. The PF amount to their credit are amounts deposited by the petitioners themselves. Alleging financial difficulties, it would be inappropriate for the KSRTC to withhold the said amount, which are sought by way of loan.

In the facts of the case, the writ petition is disposed of directing the respondents to disburse the PF loan applied for by the petitioners to the extent they are found eligible, within a period of three months.

Sd/-