IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN FRIDAY, THE 1ST JULY 2011 / 10TH ASHADHA 1933 WP(C).No. 8190 of 2007(Y) ------------------------- PETITIONER(S): --------------- A.R.NAGAR SERVICE CO-OPERATIVE BANK LTD. A.R.NAGAR, MALAPPURAM DISTRICT, REP.BY ITS SECRETARY, V.K.HARIKUMAR. BY ADV. SRI.BABU S. NAIR RESPONDENT(S): --------------- 1. THE ASSISTANT EDUCATIONAL OFFICER, KOTTAKKAL, MALAPPURAM DISTRICT. 2. THE HEADMASTER, A.U.P.SCHOOL, MANNAZHI, KOTTAKKAL, MALAPPURAM DISTRICT. 3. SURESH KUMAR V., S/O.KUNHIRAMA KURUP, P.E.TEACHER A.U.P.SCHOOL, MANNAZHI, KOTTAKKAL, MALAPPURAM DISTRICT. BY GOVERNMENT PLEADER SRI.P.M.MANOJ THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 01/07/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P(C)No.8190/2007 APPENDIX PETITIONER'S EXHIBITS: EXT.P1. TRUE COPY OF THE REQUISITION SUBMITTED BY THE PETITIONER TO THE SECOND RESPONDENT DATED 1.11.2002 EXT.P2. TRUE COPY OF THE REGISTERED LAWYER NOTICE DATED 1.10.2004 ISSUED TO THE SECOND RESPONDENT. EXT.P3. TRUE COPY OF THE PAY CERTIFICATE AND AGREEMENT FOR RECOVERY FROM PAY ISSUED BY THE SECOND RESPONDENT DATED 23.3.2001. / TRUE COPY / P.S.TO JUDGE P.N.RAVINDRAN, J. ----------------------------------------- W.P(C).No.8190 of 2007 ----------------------------------------- Dated this the 1st July, 2011 JUDGMENT This writ petition is filed by a co-operative society for an order directing the second respondent to deduct the monthly repayment instalments from the salary of the third respondent for the purpose of repaying the loan availed by the third respondent and to pay the same to the petitioner society. The writ petition is filed contending that the third respondent, who is a government servant, had availed loan from the petitioner society after executing an agreement in terms of section 37 of the Kerala Co- operative Societies Act whereby he had agreed that in the event of default the amount due from him may be recovered from his salary and the Controlling Officer had also countersigned the agreement and agreed to recover the amount payable to the loan account from the salary of the second respondent. A Division Bench of this Court has in Chengamanad Service Co-operative Bank Ltd. v. Mohanan, 2009(3) KLT 623, held that co-operative institutions cannot invoke the jurisdiction of this Court under W.P(C) NO. 8190/2007 -:2:- Article 226 of the Constitution of India for the purpose of compelling the Controlling Officers to recover repayment instalments from the salary of persons who have availed loans from co-operative societies and that their remedy, if any, is to institute arbitration proceedings or to proceed against the Controlling Officers with the permission of the Registrar of Co- operative Societies under sections 94(5) and 95 of the Kerala Co- operative Societies Act. In the light of the authoritative pronouncements of this Court in Chengamanad Service Co-operative Bank Ltd. v. Mohanan, (supra), the relief prayed for by the petitioner cannot be granted. The writ petition fails and is dismissed without prejudice to the right of the petitioner to resort to arbitration proceedings to recover the amount due from the third respondent or to proceed against the Controlling Officer with the permission of the Registrar of Co-operative Societies under sections 94(5) and 95 of the Kerala Co-operative Societies Act. P.N.RAVINDRAN, Judge. ahg. P.N.RAVINDRAN, J. --------------------------- W.P(C).No.8190 of 2007 ---------------------------- JUDGMENT 1st July, 2011