High Court of KeralaSingle JudgeWrit petition disposed of with directions for a...

K. Velukkuty and M. Christudas v. Kerala State Road Transport Corporation and Others

Case / Petition Number:WP(C).No. 3487 of 2010 (I)

Case Details & Bench

Court
High Court of Kerala
Hon'ble Judges
  • C. K. Abdul Rehim
Judgment Date
2013-10-22
Court Decision / Holding
The writ petition is disposed of with directions. The court acknowledges that the balance due and the amounts already deducted require an adjudication, which KSRTC must conduct in response to a request from the petitioners, ideally within two months. The DCRG and other retiral benefits must be paid after such adjudication, and without further delay. The court also notes the existence of the arbitration award regarding the 4th respondent Society’s claims, and that the petitioners should have the opportunity to present their case in adjudication before any final settlement or remittance occurs.
Final Disposition
Writ petition disposed of with directions for adjudication of the balance due within two months; DCRG and retiral benefits to be paid after adjudication.

Parties to the Case

Appellants / Petitioners

  • K. Velukutty
  • M. Christudas

Respondents

  • The Kerala State Road Transport Corporation represented by its Managing Director
  • The Financial Adviser & Chief Accounts Officer, KSRTC
  • The Assistant Transport Officer, KSRTC Poovar
  • The Secretary, Kerala State Transport Workers' Co-Operative Society Ltd.
  • The Special Sale Officer, Kerala State Transport Workers' Co-Operative Society Ltd.

Legal Representation & Advocates

Counsels for Petitioners

  • • Sri. Anandarajan N.

Counsels for Respondents

  • • Sri. Babu Joseph Kuruvathazha
  • • Sri. V. V. Nandagopal Nambiar
  • • Sri. N. Unnikrishnan

Case Synopsis & Summary

The petition concerns two KSRTC employees who had taken loans from the 4th respondent cooperative society, with the 2nd petitioner standing as a surety. The core grievance is KSRTC’s failure to remit salary deductions to the 4th respondent in a timely manner, resulting in an asserted balance due. The petition seeks adjudication of the amounts already deducted and remitted, repayment of any excess deduction, and a declaration that the petitioners are not liable to pay interest on delayed remittance by KSRTC. A parallel challenge is mounted against notices attaching the 1st petitioner’s death-cum-retirement gratuity (DCRG). The court notes that the dispute over the amounts due to the 4th respondent has been the subject of arbitration and an award, rendering that portion non-justiciable in this writ petition. However, the DCRG issue is addressed by considering section 37(1) of the Kerala Co-operative Societies Act, which generally excludes DCRG from “salary.” The petitioners had signed consent letters (Exts.R4(e), R4(f)) indicating agreement that, in case of default, amounts could be recovered from retiral benefits. The court held that, while DCRG is typically not subject to attachment, recovery from such benefits is possible with employee consent and subject to adjudication. The writ petition is disposed of with directions for adjudication within two months and payment of DCRG after adjudication.

Provisions of Law Cited

Section 37(1) of the Kerala Co-operative Societies ActRule 3, Part III of the Kerala Co-operative Societies Rules (KSR)

Submissions & Arguments

Contentions of Appellants / Petitioners

The petitioners submit that DCRG cannot be attached under section 37(1) of the Kerala Co-operative Societies Act and that the amount of DCRG should not be deducted or attached given the law’s protection. They contend that the amounts deducted from salary and remitted to the 4th respondent Society have not been properly accounted for, seeking adjudication of the balance due and repayment of any excess deduction. They also seek a declaration that they are not liable for interest on delayed remittance by KSRTC for which they argue the delay was KSRTC’s fault. They rely on Exts.R4(e) and R4(f), consent/guarantee documents indicating recovery may be from retiral benefits in case of default, and contend that the controversy should be resolved by adjudication rather than a writ petition.

Contentions of Respondents

The respondents emphasize that the underlying dispute regarding the amounts due to the 4th respondent Society has already been settled via arbitration, and the resulting award is final; thus, the liability cannot be fully re-litigated in a writ petition. They point to the consent/guarantee instruments indicating that recovery from pension/retirement benefits is permissible to the extent of default. They argue that any recovery from DCRG is contingent upon employee consent and the arbitration award’s terms, and that the petition should be limited to the writ petition’s scope rather than challenging the final award. They also note that adjudication of the balance and DCRG must follow proper processes, not in the writ petition, and that the petition should direct the authorities to proceed with adjudication and compliance with the award."},

Cited Precedents (2)

Case NameCitationTreatmentExplanation
Surendran v. Mavelikara Primary Co- op. Agrl. & R.D.Bank Ltd.2005 (4) KLT 619PositiveThe court follows this decision to hold that the expression ‘salary’ under section 37 does not include DCRG; recovery from DCRG is permissible only if the employee consents, consistent with the cited case.
Manni v. Divisional Forest Officer2008 (4) KLT 955PositiveUsed to support the proposition that DCRG is generally not salary and should not be attached except where consent exists, aligning with the court’s reasoning.

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Extracted Judgment Text

Exact text extracted from official judgment records.

## **IN THE HIGH COURT OF KERALA AT ERNAKULAM** ## **PRESENT:** **THE HONOURABLE MR.JUSTICE C.K.ABDUL REHIM** **TUESDAY, THE 22ND DAY OF OCTOBER 2013/30TH ASWINA, 1935** **WP(C).No. 3487 of 2010 (I) ---------------------------** **PETITIONERS:** - **-----------** ## **1. K. VELUKKUTY,** - **S/O. KUTTAN, THENGUVILA VEEDU, VANDANOOR, RUSSELPURAM, BALARAMAPURAM, THIRUVANANTHAPURAM DISTRICT.** ## **2. M. CHRISTUDAS,** **MECHANIC, K.S.R.T.C. POOVAR DEPOT, NOW RESIDING AT UDAYANTHACHANVILA VEEDU, AMBIKONAM, AYIRA P.O, PARASSALA, THIRUVANANTHAPURAM DISTRICT.** **BY ADV. SRI.ANANDARAJAN.N** ## **RESPONDENTS:** - **------------** **1. THE KERALA STATE ROAD TRANSPORT CORPORATION REPRESENTED BY ITS MANAGING DIRECTOR, TRANSPORT BHAVAN, FORT P.O. THIRUVANANTHAPURAM.** ## **2. THE FINANCIAL ADVISER &** **CHIEF ACCOUNTS OFFICER, K.S.R.T.C., TRANSPORT BHAVAN, FORT P.O, THIRUVANANTHAPURAM-23.** **3. THE ASSISTATNT TRANSPORT OFFICER, K.S.R.T.C. POOVAR.** ## **4. THE SECRETARY,** - **KERALA STATE TRANSPORT WORKERS' CO-OPERATIVE SOCIETY LTD.NO.T 133, THAMPANOOR, THIRUVANANTHAPURAM.** ## **5. THE SPECIAL SALE OFFICER,** - **KERALA STATE TRANSPORT WORKERS' CO-OPERATIVE SOCIETY LTD.NO. T 133, THAMPANOOR, THIRUVANANTHAPURAM.** **R4 & 5 BY ADV. SRI.N.UNNIKRISHNAN,SC KSTW CO.OP SOCIETY R1 TO R3. BY ADV. SRI.V.V.NANDAGOPAL NAMBIAR,SC, KSRTC R1-3 BY ADV. SRI.BABU JOSEPH KURUVATHAZHA,SC,KSRTC** **THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 22-10-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:** **WP(C).No. 3487 of 2010 (I)** ## **APPENDIX** ## **PETITIONER'S EXHIBITS:** **EXT.P1: COPY OF THE CERTIFICATE DATED 9.12.2009 OF THE 3RD RESPONDENT INDICATING THE RECOVERY MADE FROM THE SALARY OF THE 1ST PETITIONER IN LOAN NO.31489** **EXT.P2: COPY OF RECEIPT DATED 1.6.2001 ISSUED BY THE 4TH RESPONDENT SOCIETY SHOWING THE DETAILS OF DEDUCTION MADE FROM THE LOAN AMOUNT OF RS.60,000/- SANCTIONED IN LOAN NO.41045** ## **EXT.P3: COPY OF LOAN LEDGER ISSUED BY THE 4TH RESPONDENT SOCIETY.** **EXT.P4: COPY OF CERTIFICATE DATED 23.3.2009 ISSUED BY THE 3RD RESPONDENT INDICATING THE RECOVERY MADE FROM THE SALARY OF THE 1ST PETITIONER IN LOAN NO.41045.** **EXT.P5(A): COPY OF THE PETITION DATED 28.2.2009 FILED BY THE 4TH RESPONDENT SOCIETY BEFORE THE 5TH RESPONDENT.** **EXT.P5(B): COPY OF SUMMONS DATED 2.3.2009 ISSUED BY THE 5TH RESPONDENT TO THE PETITIONERS.** **EXT.P6: COPY OF THE ORDER DATED 2.3.2009 OF THE 5TH RESPONDENT.** **EXT.P7: COPY OF THE LETTER NO.PA21/008116/05 DATED 9.4.2009** **EXT.P8: COPY OF THE PAY SLIPS OF THE 2ND PETITIONER SHOWING THE RECOVERY OF RS.2000/- EACH MADE FROM HIS SALARY FROM SEPTEMBER 2009 ONWARDS FOR REMITTANCE TO THE 4TH RESPONDENT SOCIETY.** **EXT.P9: COPY OF THE REQUEST DATED 28.3.2009 FILED BEFORE THE 4TH RESPONDENT BY THE 1ST PETITIONER.** **EXT.P10: COPY OF THE JUDGMENT DATED 5.1.2009 IN W.P(C) NO.35153/2008 OF THE HON'BLE HIGH COURT OF KERALA.** ## **RESPONDENTS' EXHIBITS:** **EXT.R4(A): COPY OF STATEMENT OF DETAILS OF LOAN NO.BAL-31489 AVAILED BY THE PETITIONER.** **EXT.R4(B): COPY OF STATEMENT OF DETAILS OF LOAN NO.BAL-41045(REVISED) AVAILED BY THE PETITIONER.** **EXT.R4(C): COPY OF CERTIFICATE OF SALARY DATED 2.2.2001 ISSUED TO THE FIRST PETITIONER.** **EXT.R4(D): COPY OF SURETY BOND EXECUTED BY PETITIONERS AND ANOTHER SURETY DATED 1.6.2001** **EXT.R4(E): COPY OF CONSENT LETTERS DATED 1.6.2001 GIVEN BY LOANEE, FIRST PETITIONER.** **EXT.R4(F): COPY OF CONSENT LETTER DATED 1.6.2001 GIVEN BY THE 2ND PETITIONER.** //True Copy// **ab** **P.S TO JUDGE** ## C.K.ABDUL REHIM,J. ------------------------------WP(C).NO. 3487 of 2010 --------------------------------Dated this the 22nd day of October, 2013 ## JUDGMENT The 1[st] petitioner, while in service of the 1[st] respondent Corporation, availed loans from the 4[th] respondent Society. The 2[nd] petitioner stood as surety for the loan transaction. Contention of the petitioners is that, eventhough regular deductions were made from the salary of the 1[st] petitioner, respondents 1 to 3 have failed in remitting the amounts deducted to the 4[th] respondent Society at the appropriate time. It is disputed that the amount now demanded as balance is not true and correct. The 1[st] petitioner is also challenging Ext.P6 notice through which the 5[th] respondent has taken steps to attach the death-cum-retirement gratuity payable to him. Other reliefs sought for in this writ petition is against the recovery proposed from salary of the 2[nd] petitioner, pursuant to Ext.P5(a) and P5(b) notices issued. Inter alia, petitioners seek direction for settlement of the account and for repayment of excess amount if any deducted. The petitioners also seek for a declaration that WP(C).3487/2010 2 they are not liable for payment of interest accrued due to delay caused on the part of the KSRTC in remitting the amounts already deducted to the 4[th] respondent Society. 2. It is evident that the disputes pertaining to amounts due to the 4[th] respondent Society was subject matter of an Arbitration case. Presumably, the demand now raised for recovery is the amount settled through Award passed by the Arbitrator. As such the liability cannot be disputed in this writ petition, since such Award has become final. However, one of the main grievance is with respect to withholding of payment of DCRG. According to the petitioners, the amount due as DCRG is not liable to be attached in view of provisions contained in section 37(1) of the Kerala Co-operative Societies Act. Meeting the above contention, respondents 4 and 5 have produced Exts.R4 (d) to R4(f) documents, which are 'Agreement of Guarantee' and consents issued by the petitionerss while availing the loan in question. Exts. R4(e) and Ext.R4(f) indicate that the petitioners have conceded that amount if any defaulted can be recovered from amounts due to them from the 1[st] respondent Corporation towards pension, gratuity and other amounts. Therefore it is WP(C).3487/2010 3 clear that there was agreement to the extent of conceding recovery from DCRG. The issue now stands covered through the decision of this court in **Surendran Vs. Mavelikara Primary Co- op. Agrl. & R.D.Bank Ltd. (2005 (4) KLT 619)** as well as in **Manni vs. Divisional Forest Officer (2008 (4) KLT 955).** It is held that the expression 'salary' contained in section 37 of the Co-operative Societies Act, does not include DCRG and generally the amount due to the Co-operative Society cannot be recovered from the DCRG. But referring to Ruling (1) of Rule 3 of part III of KSR it is held that if the employee sanction to such recovery, it is possible. Since there is an agreement recorded in Ext.R4(e) to Ext.R4(f) documents, contention that the amount is not recoverable from the DCRG cannot be sustained 3. With respect to the disputes raised by the petitioners regarding quantification of the amounts already deducted as well as the non remittance of deducted amounts to the 4[th] respondent Society, this court is of the considered opinion that an adjudication is not possible in this proceedings filed under Article 226 . It is left open to the petitioners to approach the 1[st] respondent with appropriate request to consider the matter and WP(C).3487/2010 4 to conduct an adjudication with respect to the actual balance due. The petitioners will be at liberty to show the extent of deductions already effected. If any such request is received by the 1[st] respondent along with a copy of this judgment, the competent officer shall look into the matter and shall conduct an adjudication with respect to the balance amount due after affording opportunity to the petitioners as well as to the 4[th] respondent. 4. Needless to observe that DCRG as well as other retiral benefits if any due to the petitioners shall be paid after effecting the adjudication, without any further delay. The adjudication as directed shall be done at the earliest possible, at any rate within a period of two months from the date of receipt of any such request. The writ petition is disposed of with the above directions. pmn/ ## C.K.ABDUL REHIM, JUDGE WP(C).3487/2010 5 WP(C).3487/2010 6