The additional authority must consider existing debts in deciding recovery from gratuity before disbursal.

JUDGMENT

Petitioner has approached this Court being aggrieved by the fact that despite an agreement executed by the 3^rd respondent under Section 37 of the Kerala Co-operative Societies Act , 1969, permitting recovery of amounts due on the loan availed by the 3^rd respondent from the petitioner Society, such amounts are not being recovered and paid to the petitioner-Society.

2. When this matter is taken up for consideration today, it is the submission of the learned counsel appearing for the petitioner that the 3^rd respondent is due to retire on 30.04.2026 and in the light of the law laid down by this Court in the judgment in Idukki District Police Co-operative Society Ltd V. State of Kerala ; 2026 KHC OnLine 96, the amounts due to the petitioner can be recovered from any DCRG payable to the 3^rd respondent.

3. Heard the learned Government Pleader also. Learned Government Pleader submits that the 3^rd respondent is only having a take-home salary of Rs.5,230/-. It is submitted, on instructions, that there are at least six other loans availed by the 3^rd respondent. It is submitted that the question as to whether the amount due to the petitioner can be recovered from the DCRG payable to the 3^rd respondent, on her retirement, can be considered by the Drawing and Disbursing officer, who is presently the additional 4^th respondent, also taking note of the judgment of this Court in Idukki District Police Co-operative Society Ltd (supra) .

4. Despite service of notice, there is no appearance for the 3^rd respondent.

Having heard the learned counsel appearing for the petitioner and the learned Government Pleader appearing for respondent Nos.1, 2 and the additional 4^th respondent, the writ petition will stand disposed of, directing the additional 4^th respondent to consider whether the amount payable to the petitioner by the 3^rd respondent can be recovered from the DCRG payable to the 3^rd respondent. While considering whether the amount due to the petitioner can be recovered from the DCRG payable to the 3^rd respondent, the additional 4^th respondent shall take into consideration the judgment of this Court in Idukki District Police Co-operative Society Ltd (supra) and also as to whether there are any other loans availed by the 3^rd respondent and the priority under which the amounts of gratuity have to be adjusted, taking into consideration claims on account of any other loan availed by the 3^rd respondent. While considering the matter, the additional 4^th respondent shall also issue notice to the 3^rd respondent and afford to her an opportunity of hearing. It is further directed that any amount due to the 3^rd respondent as DCRG shall not be disbursed to her until a decision is taken in the manner, as directed above, by the additional 4^th respondent.

Writ petition is ordered accordingly.