IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE C.T.RAVIKUMAR FRIDAY, THE 24TH DAY OF JUNE 2011/3RD ASHADAH 1933 WP(C).No. 29659 of 2005 (E) --------------------------- PETITIONER(S): ------------- 1. K.PREMANATHAN, CONDUCTOR, (SPECIAL GRADE) KSRTC. KOZHIKODE. 2. M.SUBRAMANIAN, MECHANIC, KSRTC, KOZHIKODE. 3. GEORGE JOSEPH, CONDUCTOR, KSRTC, THAMARASSERY. 4. K.KUTTIALI, STATION MASTER, KSRTC., THOTTIPALAM. 5. T.K.PURUSHOTHAMAN, CONDUCTOR, KSRTC, KOZHIKODE. 6. N.V.NANU, CONDUCTOR, KSRTC, THAMARASSERY. 7. T.P.MOIDEENKOYA, CONDUCTOR,(RTD. ON 31/7/2002), KSRTC., KOZHIKODE. 8. K.BABY, SWEEPER, KSRTC, KOZHIKODE. 9. T.VELAYUDHAN, MECHANIC (RTD ON 31/8/2002), R/W, KSRTC. KOZHIKODE. 10. CLARENCE D'CRUZ,ASSISTANT DEPOT ENGINEER (RTD), KSRTC. THAMARASSERY. 11. K.C.JOSEPH, DRIVER, KSRTC., ALUVA. 12. K.G.ALEXANDER, GARAGE MAZDOOR(RTD ON 30/4/2004), KSRTC. CHENGANNUR. 13. K.SAHADEVAN, ELECTRICIAN (RTD. 29/2/2004) KSRTC, R/W, KOZHIKODE. 14. A.M.VELAYUDHAN, CONDUCTOR, KSRTC., KALPATTA. BY ADV. SRI.K.P.RAJEEVAN VK WP(C).No. 29659 of 2005 (E) --------------------------- RESPONDENT(S): -------------- 1. KERALA STATE ROAD TRANSPORT CORPORATION, REPRESENTED BY ITS MANAGING DIRECTOR TRANSPORT BHAVAN, FORT, THIRUVANANTHAPURAM. 2. DISTRICT TRANSPORT OFFICER, KSRTC., KOZHIKODE. 3. ASSISTANT TRANSPORT OFFICER, KSRTC., THAMARASSERY. 4. ASSISTANT TRANSPORT OFFICER, KSRTC, THOTTILPALAM. 5. DISTRICT TRANSPORT OFFICER, KSRTC, ALUVA. 6. DISTRICT TRANSPORT OFFICER, KSRTC, CHENGANNUR. 7. ASSISTANT TRANSPORT OFFICER, KSRTC, KALPATTA. 8. KERALA STATE TRANSPORT WORKERS' CO-OPERATIVE SOCIETY LTD.T.133, REPRESENTED BY ITS SECRETARY, THAMPANOOR, THIRUVANANTHAPURAM. R1 TO R7 BY ADV. SRI.V.V.NANDAGOPAL NAMBIAR R8 BY ADV. SRI.N.UNNIKRISHNAN,SC KSTW CO.OP SOCIETY BY SRI.SAJEEVKUMAR K.GOPAL, SC, KSRTC THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 24-06-2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: VK WP(C).No. 29659 of 2005 (E) --------------------------- APPENDIX --------- PETITIONER'S EXHIBITS --------------------- EXT.P1. COPY OF RECOVERY STATEMENT ISSUED TO THE 1ST PETITIONER, DTD. NIL. EXT.P1(A). COPY OF RECOVERY STATEMENT ISSUED TO THE 2ND PETITIONER, DTD. 2.4.05. EXT.P1(B). COPY OF RECOVERY STATEMENT ISSUED TO THE 3RD PETITIONER, DTD. 12.6.05. EXT.P1(C). COPY OF RECOVERY STATEMENT ISSUED TO THE 4TH PETITIONER, DTD. 30.4.05. EXT.P1(D). COPY OF RECOVERY STATEMENT ISSUED TO THE 5TH PETITIONER, DTD. 11.4.05. EXT.P1(E). COPY OF RECOVERY STATEMENT ISSUED TO THE 6TH PETITIONER, DTD. 16.5.05. EXT.P1(F). COPY OF RECOVERY STATEMENT ISSUED TO THE 7TH PETITIONER, DTD. 28.4.05. EXT.P1(G). COPY OF RECOVERY STATEMENT ISSUED TO THE 8TH PETITIONER, DTD. 8.4.05. EXT.P1(H). COPY OF RECOVERY STATEMENT ISSUED TO THE 9TH PETITIONER, DTD. 4.4.05. EXT.P1(I). COPY OF RECOVERY STATEMENT ISSUED TO THE 10TH PETITIONER, DTD. 5.5.05. EXT.P1(J). COPY OF RECOVERY STATEMENT ISSUED TO THE 11TH PETITIONER, DTD. 17.9.05. EXT.P2. COPY OF LETTER DATED 26.4.05 ISSUED BY THE 8TH RESPONDENT. EXT.P2(A). COPY OF LETTER DATED 2.2.05 ISSUED BY THE 8TH RESPONDENT. EXT.P2(B). COPY OF LETTER DATED 25.2.05 ISSUED BY THE 8TH RESPONDENT. EXT.P2(C). COPY OF LETTER DATED 16.3.05 ISSUED BY THE 8TH RESPONDENT. VK WP(C).No. 29659 of 2005 (E) --------------------------- EXT.P2(D). COPY OF LETTER DATED 28.3.05 ISSUED BY THE 8TH RESPONDENT. EXT.P2(E). COPY OF LETTER DATED 18.2.05 ISSUED BY THE 8TH RESPONDENT. EXT.P2(F). COPY OF LETTER DATED 17.2.05 ISSUED BY THE 8TH RESPONDENT. EXT.P2(G). COPY OF LETTER DATED 15.7.05 ISSUED BY THE 8TH RESPONDENT. EXT.P2(H). COPY OF LETTER DATED 16.4.05 ISSUED BY THE 8TH RESPONDENT. EXT.P2(I). COPY OF LETTER DATED 20.9.05 ISSUED BY THE 8TH RESPONDENT. EXT.P2(J). COPY OF LETTER DATED 22.2.05 ISSUED BY THE 8TH RESPONDENT. EXT.P3. COPY OF JUDGMENT DATED 13.9.04 IN WPC NO.24749/2004. RESPONDENT'S EXHBITS : ---------------------- EXT.R8(A). COPY OF JUDGMENT DTD. 21.10.2005 IN WPC. 29659/05 EXT.R8(B). COPY OF LETTER NO.1057/05-06 DTD. 19.12.2005. / TRUE COPY / P.A. TO JUDGE VK C.T. RAVIKUMAR, J - - - - - - - - - - - - -- - - - - - - - - - - - - - - - W.P.(C)No. 29659 OF 2005 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 24th day of June, 2011 J U D G M E N T Pensioners/employees from the Kerala State Road Transport Corporation (for short 'Corporation') filed this writ petition mainly with a prayer to issue a writ of mandamus commanding the respondents not to effect any recovery from their salary/pensionary benefits for the purpose of remittance with the 8th respondent. The petitioners approached this Court with the aforesaid prayer based on the undisputed fact that in terms of the agreement executed by them while availing loan from the 8th respondent, the concerned Unit officer recovered the amount towards the monthly instalments promptly from their salary but, failed to effect a proper remittance in terms of Section 37 of the Kerala Cooperative Societies Act. Going by the said section on recovery from the salary based on such a request from the Society the amount recovered should have been remitted within seven days. It is a fact that in this case, despite the lapse of years since the recovery the respondent Corporation is retaining the amount W.P.C.29659/2005 2 recovered without effecting proper remittance of the same with the 8th respondent. On account of serious lapse on the part of the concerned officials under the Corporation the loan amounts stands in the name of the petitioners are still remaining unclosed. 2. A counter affidavit has been filed on behalf of the Corporation. It is also to be noted that earlier this Court as per judgment dated 21.10.2005 disposed of this writ petition at the admission stage itself after hearing the learned counsel for the petitioners and the learned Standing counsel for the respondent Corporation. No notice was issued to the 8th respondent. As per the said judgment it was declared that the liability to pay interest to the 8th respondent society on account of the delay in the Society receiving the amounts which were actually deducted from the salary/pensionary benefits of the petitioners would be that of the Corporation and not that of the petitioners. Based on the said declaration a direction was given to the respondents not to effect any further recovery towards the amount due to the 8th respondent from the salary/pensionary benefits of the petitioners. A further W.P.C.29659/2005 3 direction was also given to the first respondent Corporation to remit the amount actually recovered from the salary/pensionary benefits of the petitioners to the 8th respondent forthwith, if any such recovered amount was retained by the Corporation without being remitted to the 8th respondent Society. Subsequently, the 8th respondent filed a review petition by filing R.P No.146/06. Taking note of the contentions in that R.P, it was allowed and the judgment was recalled and posted for fresh hearing. That is how the matter came up for hearing before me. 3.Subsequent to the judgment dated 21.10.2005, the 12th petitioner deposited the amount due from him and subsequently, the loan account stood in the name of the 12th petitioner was closed. In other words, as on today, there is no liability for the 12th petitioner towards the 8th respondent. As regards the others the grievance is that despite making prompt recovery from their salary and also from their pensionary benefits the Corporation retained the said amount without effecting prompt remittance of the said amount with the 8th W.P.C.29659/2005 4 respondent, society. Going by Section 37 of the Kerala Cooperative Societies Act, the amount deducted in satisfaction of any other debt or any other demand should have been remitted with the 8th respondent society within 7 days from the date of recovery. In this context, it is to be noted that despite such serious allegations levelled in this writ petition no counter affidavit has been filed on behalf of the Corporation. Therefore the contention of the petitioners that the monthly instalments towards the loan availed from the 8th respondent were promptly recovered from their salary/pensionary benefits and retained by the Corporation without remitting the recovered amount with the 8th respondent can only be taken as correct and, as admitted. If that be so, the Corporation should be saddled with the liability to pay the interest for its lapse or flaw, that could not be condoned, in effecting prompt remittance especially in terms of provisions under section 37 of the Co-operative Societies Act. That ultimately constrained the 8th respondent to charge penal interest on the loanees, the petitioners. In the said circumstances as rightly contended by the petitioners, there is absolutely no justification for making them liable for W.P.C.29659/2005 5 the said lapse on the part of the Corporation. In the counter affidavit filed by the 8th respondent the amount outstanding towards the loan accounts pertaining to the petitioners have been specifically given in Paragraph 5 of the counter affidavit. It reads thus: Sl. No. Name Loan No. Balance amount(RS.) Extra remittance 1 K.Premanathan 35555 NIL Rs.3000/- 2 M.Subramaniyan 38879 14451 - 3 George Joseph 38051 9824 - 4 Kuttialy 34852 22190 - 5 T.K. Purushothaman 35029 4416 Rs.4860/- 6 N.V. Nanu 35381 16962 7 T.P Moideen Koya 36687 21440 8 K. Baby 34527 8708 Rs.620/- 9 T.Velayudhan 34112 23931 10 Clarance D'Cruz 33971 10529 11 K.C Joseph 39593 15466 13 K.Sahadevan 37870 NIL Rs.27597/- 14 A.M. Velayudhan 34725 17817 Total Rs.165734/- ========= Rs.36077/- ========= W.P.C.29659/2005 6 Sl. No. Name Loan No. Balance amount(RS.) Extra remittance 12 K.G. Alexander 38657 Rs.NIL closed It is evident from the same that the loan account in respect of the 12th petitioner was closed. However, the loan account in respect of petitioners 1 to 14 except 12th petitioner could be closed only if an amount of Rs.1,65,734/- is remitted. In paragraph 7 thereunder it is further stated by the 8th respondent that the Corporation had also effected recovery in excess from the petitioners 1,5,8 and 13 and on account of the said situation, they are entitled to get refund of a total amount of Rs. 36077/-. It reads hereunder:- Sl.No Name amount (Rs.) 1 K.Premanathan (1st petitioner) 3,000/- 2 T.K. Purushothaman 5th petitioner) 4,800/- 3 K. Baby (8th Petitioner) 620/- 4 K. Sahadevan (13th Petitioner) 27,597/- Total = Rs.36,077/- ======= In other words, going by the statement, the Corporation is W.P.C.29659/2005 7 liable to pay Rs.1,65,734/- to the 8th respondent so as to enable them to close the loan accounts that stand in the name of the petitioners 1 to 14 except 12th petitioner. They are also liable to refund the amount of Rs.3,000/-, 4,800/-, 620/- and 27,597/- respectively to petitioners 1, 5,8 and 13. As already noticed hereinbefore, the specific contention of the petitioners that the amount due towards the 8th respondent were promptly recovered either from their salary or from their pensionary benefits by the Corporation but failed in promptly remitting the recovered amount by the Corporation with the 8th respondent. The said allegation was not refuted by the Corporation by filing counter affidavit. Therefore, it is only to be taken as admitted. In view of the said position obtained in this case, this writ petition is disposed of as hereunder:- The first respondent Corporation shall remit the amount already recovered from the salary/pensionary benefits of the petitioners with the loan accounts that stand in the name of the petitioners with the 8th respondent society, within a period of three weeks from the date of receipt of copy of this judgment. In case, on account of failure on the part of the officials of the W.P.C.29659/2005 8 first respondent in remitting the recovered amount with the 8th respondent society within the time stipulated under section 37 of the Kerala Co-operative Societies Act and if any interest is accrued on account of such lapse, the liability to pay interest on that count will be that of the first respondent Corporation. In other words, the Corporation shall remit an amount of Rs.1,65,734/- with the 8th respondent within the time stipulated and shall also refund the amount recovered excess from the petitioners 1,5,8 and 13 within a period of one month from the date of receipt of copy of this judgment. It will be open to the corporation to recover the loss caused on account of payment of interest towards the 8th respondent based on this judgment from the person or persons responsible for this, in accordance with law. (C.T. RAVIKUMAR, JUDGE) jma W.P.C.29659/2005 9 C.T. RAVIKUMAR, J. JUDGMENT September, 2010 W.P.C.29659/2005 10