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2026 Supreme(Online)(Ker) 10178

IN THE HIGH COURT OF KERALA AT ERNAKULAM
GOPINATH P., J
THE THODUPUZHA TALUK AIDED SCHOOL TEACHERS CO-OPERATIVE SOCIETY LTD NO. I. 145 – Appellant
Versus
STATE OF KERALA – Respondent
WP(C) NO. 32263 OF 2025



Advocates:
For the Appellants/Petitioners: SHRI.P.C.SASIDHARAN
For the Respondents: SRI.GIGIMON ISSAC, SRI.V.K SUNIL

The court permits recovery of dues from retirement benefits for loans availed, subject to certain conditions.

Headnote:The issue raised in this writ petition is covered by the decision of this Court in the judgment of Idukki District Police Co-operative Society Ltd. v. State of Kerala. The petitioner-Society can recover amounts due from the Death-cum-Retirement Gratuity payable on the retirement of employees who availed loans from the petitioner-Society, contingent on prior agreements permitting such recovery. The court framed the question of the validity of such recovery and found in favor of the petitioner provided conditions are met. The writ petition is ordered accordingly.

JUDGMENT

The issue raised in this writ petition is covered by the decision of this Court in the judgment of Idukki District Police Co-operative Society Ltd. v. State of Kerala , 2026 KHC OnLine 96 .

Accordingly, the petitioner-Society can recover the amounts due from the Death-cum-Retirement Gratuity payable on the retirement of employees who have availed loans from the petitioner-Society, provided that the employees had entered into an agreement at the time of sanction of the loan permitting such recovery and that the loan was sanctioned prior to 01.02.2025. The writ petition is ordered accordingly.

Sd/-

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