An amendment to Rule 3 of Part III of the Kerala Service Rules requiring additional employee consent for DCRG deduction does not invalidate recovery agreements executed under Section 37 of the Kerala Co-operative Societies Act, 1969, prior to the amendment's effective date.

JUDGMENT The petitioner has approached this Court being aggrieved by the fact that despite there being a valid agreement executed by respondents 3, 4 and 5 under Section 37 of the Kerala Co-operative Societies Act, 1969 (in short ‘the 1969 Act’), recoveries towards the loan availed by the 3^rd respondent on the strength of the surety of respondents 4 and 5 are not being recovered from respondents 3, 4 and

5 despite request.

2. Despite service of notice, there is no appearance for respondents 3, 4 and 5.

3. The learned counsel appearing for the petitioner submits that 3^rd respondent has already retired from service. However, due to the interim order dated 10.04.2025, the DCRG of the 3^rd respondent has not been disbursed. It is submitted that this Court in Idukki District Police Co-operative Society Ltd. v. State of Kerala; 2026 KHC OnLine 96, has taken the view that the amendment to the note below Rule 3 of Part III of the Kerala Service Rules (in short ‘KSR’) , which requires a further consent being obtained from the employee concerned to effect recovery from DCRG may not apply to the benefit of the 3^rd respondent as the agreement under Section 37 of the 1969 Act was executed prior to the date on which the note below Rule 3 of Part III of the KSR was amended.

4. Heard the learned Government Pleader also.

5. Having heard the learned counsel for the petitioner and the learned Government Pleader and taking into consideration the submissions made as above and having perused the judgment of this Court in Idukki District Police Co-operative Society Ltd. (supra) , I am of the view that the learned counsel for the petitioner is right in contending that the amendment to the note below Rule 3 of Part III of the KSR will not be a bar to the recovery of any amount due to the petitioner from the DCRG of the 3^rd respondent as that amendment can obviously apply only to agreements under Section 37 of the 1969 Act, which have been executed after the date of the amendment.

Therefore, this writ petition will stand disposed of directing the official respondents to ensure that the amount due to the petitioner on account of the loan availed by the 3^rd respondent is recovered from the DCRG of the 3^rd respondent and paid to the petitioner. If there are any further liabilities remaining to be paid to the petitioner on account of the loan availed by the 3^rd respondent, it will be open to the petitioner to initiate proceedings under Section 37 of the 1969 Act and recover such amount from the sureties namely respondents 4 and 5.

The writ petition is disposed of accordingly.