IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE T.R.RAMACHANDRAN NAIR MONDAY, THE 12TH JULY 2010 / 21ST ASHADHA 1932 WP(C).No. 27658 of 2009(B) ---------------------------------------- PETITIONER(S): ------------------------- P.A.ABDUL KHADER, TYRE RETREADER, REGIONAL WORKSHOP, KERALA STATE ROAD TRANSPORT CORPORATION,ALUVA. BY ADV. SRI.P.P.SOMAN NAIR RESPONDENT(S): --------------------------- 1. THE KERALA STATE ROAD TRANSPORT CORPORATION, REPRESENTED BY ITS MANAGING DIRECTOR, TRANSPORT BHAVAN, FORT, THIRUVANANTHAPURAM. 2. THE FINANCIAL ADVISOR & CHIEF ACCOUNTS OFFICER, KERALA STATE ROAD TRANSPORT CORPORATION, TRANSPORT BHAVAN, FORT P.O., THIRUVANANTHAPURAM. 3. THE WORKS MANAGER, KERALA STATE ROAD TRANSPORT CORPORATION, REGIONAL WORKSHOP, ALUVA. * 4. A.SHAMZUDEEN, TYRE RETREADER, K.S.R.T.C., CENTRAL WORKSHOP, PAPPANAMCODE, THIRUVANANTHAPURAM. - (D E L E T E D) (*THE NAME OF THE 4TH RESPONDENT IS DELETED FROM THE PARTY ARRAY AS PER ORDER DTD. 24/06/2010 IN I.A.NO.8476/10). 5. THE ALUVA STATE TRANSPORT STAFF CO-OP. SOCIETY LTD. NO.T-158, K.S.R.T.C. BUS STATION, ALUVA, REP. BY ITS SECRETARY. R1 TO R3 BY ADV.SRI.V.V.NANDAGOPAL NAMBIAR,SC, KSRTC R5 BY ADV. SRI.C.V.MILTON THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 12/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.27658/2009 B APPENDIX PETITIONER'S EXHIBITS: P1: COPY OF CERTIFICATE DTD. 14/07/08 ISSUED BY KSRTC TO THE 4TH RESPONDENT. P2: COPY OF THE CERTIFICATE DTD. 16/05/08 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER. P3: COPY OF THE CERTIFICATE DTD. 9/06/08 ISSUED BY THE 5TH RESPONDENT TO THE PETITIONER. P4: COPY OF THE LETTER DTD. 12/06/09 ISSUED BY THE 5TH RESPONDENT TO THE PETITIONER. P5: COPY OF THE JUDGMENT DTD. 26/03/08 IN WPC.NO.9427/08 OF THE HON'BLE HIGH COURT. P6: COPY OF THE REPRESENTATION SUBMITTED TO THE 1ST RESPONDENT. RESPONDENT'S EXHIBITS: R5(A): COPY OF THE APPLICATION FOR THE LOAN DTD. 23/09/1998 SIGNED BY THE APPLICANT ALONG WITH THE SURETIES. R5(B): COPY OF THE AGREEMENT DTD. 29/10/1998 EXECUTED BY THE APPLICANT ALONG WITH THE SURETIES. R5(C): COPY OF THE LETTER NO.R/426/06-07 DTD. 7/02/2007 SENT TO THE 3RD RESPONDENT. /TRUE COPY/ P.A.TO JUDGE Kss T.R.RAMACHANDRAN NAIR, J. -------------------------------------- W.P.(C) No.27658 OF 2009 -------------------------------------- Dated this the 12th day of July, 2010 J U D G M E N T ~~~~~~~~~~~ The petitioner was a surety to a transaction, wherein the 4th respondent was the principal debtor. The 4th respondent availed a loan from the 5th respondent Co-operative Society. 2. Going by the agreements executed by the parties, the instalments had to be recovered from the salary payable. It appears that the amount recovered from the salary of the 4th respondent was not remitted in time by the Corporation to the 5th respondent. Ultimately, it resulted in charging penal interest and consequent recovery from the petitioner. 3. An amount of Rs.16,665/- was recovered from the salary of the petitioner towards the belated payment of amount. Seeking for a return of the amount, the petitioner had approached the Corporation as per Ext.P6 representation and failing to get any relief in the matter, this Writ Petition has been filed. W.P.(C) No.27658/2009 2 4. Heard the learned counsel for the 5th respondent and the learned Standing Counsel for the Corporation. Going by the counter affidavit filed by the 5th respondent, out of the total amount of Rs.16,665/-, an amount of Rs.2,256/- has been refunded to the petitioner and the account has been closed. It is further averred therein that the 3rd respondent, eventhough recovered the loan instalments from the 4th respondent, retained it without payment to the Society in violation of Section 37 of the Co-operative Societies Act, 1969. 5. From Ext.P4, it is evident that there is a delay in remitting the recovered amount to the 5th respondent Society by the Corporation. In that view of the matter, the petitioner cannot be saddled with the liability, as the default is only on the part of the Corporation. 6. Therefore, as rightly pointed out by the learned counsel for the petitioner, the petitioner cannot be saddled with any liability for payment of interest to the 5th respondent. In that view of the matter, the Writ Petition is allowed. There will be a W.P.(C) No.27658/2009 3 direction to the 1st respondent to release an amount of Rs.14,409/- to the petitioner, within a period of one month from the date of receipt of a copy of this judgment. (T.R.RAMACHANDRAN NAIR, JUDGE) ps