IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN TUESDAY, THE 24TH MARCH 2009 / 3RD CHAITHRA 1931 WP(C).No. 34273 of 2007(E) -------------------------- PETITIONER(S): --------------- K.HARIHARA SUBRAMANIAN, AGED 55, S/O. T.KRISHNAN, ASSISTANT GR-II - GENERAL REGIONAL OFFICE, FOOD CORPORATION OF INDIA, THIRUVANANTHAPURAM. BY ADV. SRI.THIRUMALA P.K.MANI RESPONDENT(S): --------------- 1. P.SUNIL, WATCHMAN, DISTRICT OFFICE, FOOD CORPORATION OF INDIA, KOLLAM, NOW RESIDING AT PUTHENPARAYIL HOUSE, PUTHIYARA P.O., CALICUT. 2. FOOD CORPORATION OF INDIA, REP. BY GENERAL MANAGER, KESAVADASAPURAM, THIRUVANANTHAPURAM. 3. AREA MANAGER, FOOD CORPORATION OF INDIA, DISTRICT OFFICE, KOLLAM. 4. THE FOOD CORPORATION OF INDIA, EMPLOYEES CREDIT CO-OPERATIVE SOCIETY LIMITED. T.NO.378, VALIYATHURA, THIRUVANANTHAPURAM. ADV. SRI.P.JACOB VARGHESE, SC, FCI FOR R2 TO 4 SRI.C.MURALIKRISHNAN (PAYYANUR) FOR R1 SRI.P.SANTHOSH (PODUVAL) FOR R1 SRI.J.HARIKUMAR FOR R4 SRI.HARIKUMAR.S. FOR R4 SMT.S.KARTHIKA FOR R2 & R3 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 24/03/2009, ALONG WITH WP(C) 3657/2008 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: THOTTATHIL B RADHAKRISHNAN, J ........................................... WP(C).Nos. 34273/2007, 3657/2008 & 5299 OF 2009 ............................................ DATED THIS THE 24TH DAY OF MARCH, 2009 JUDGMENT Sri P.Sunil, the first respondent in all these matters, availed different loans from different branches of Food Corporation of India(in short FCI), Employees Co-operative Society. He thereafter retired from service of FCI. The loans were supported by surety agreements by the petitioners in these writ petitions. 2. In the wake of imminent retirement of Sri. P.Sunil, the petitioners had moved this court for different directions so that they, the sureties could reduce their liability. In fact, even Sri.P.Sunil had executed Ext.P3 in WP(C) 5299 of 2009 agreeing that his retiral benefits could be paid off to the society. 3. When WP(C) 34273 of 2007, the earlier among this bunch came up for consideration, an interim order was issued, initially, interdicting release of retiral benefits of Sri.P.Sunil. Later, he appeared through the counsel. It was then submitted on his behalf that he was not able even to travel to Cochin though the counsel had seen him. Sri.P.Sunil is said to be suffering from psoriasis and requiring immediate admission to the WPC 34273/2007 & CONN, 2 hospital for treatment. This court had then issued order dated 19.12.2007 in WP(C) 34273 of 2007, modifying the earlier interim order and permitting release of Rs.60,000/- to Sri.P.Sunil in view of his immeidte requirement to go for medical aid. The remaining amounts were to be regulated and the same be credited to the creditor society. FCI promptly acted on such order and as stated in paragraph 7 of the affidavit sworn to on its behalf, on 26.6.2008 in WP(C) 3657 of 2008, had given credit by paying Rs.60,000/- to Sri.P.Sunil and Rs.68,544/- to the society. By obeying the interim order, to its hilt, FCI did not retain for itself an amount of Rs.6718/-, which according to FCI was due to that establishment from Sri.P.Sunil. 4. In the aforesaid situation, FCI would be legitimately entitled to deduct an amount of Rs.6718/- due to it from Sri.P.Sunil and any accruals therein, from the CPF dues that may be payable to Sri.P.Sunil. However, any release of amounts from the PF to Sri.P.Sunil could be done only on his application and that amount cannot be passed off without the concurrence of Sri.P.Sunil to the creditor society. Ext.P3 in WP(C) 5299 of 2009 contains an agreement by Sri.P.Sunil authorising the District WPC 34273/2007 & CONN, 3 Manager, FCI to deduct amounts due to the society from all amounts that may be due to Sri.P.Sunil including gratuity and PF. But that is essentially an agreement for the purpose of Section 37 of KCS Act. Even if I am prepared to read it as a consent of the employer since Sri.P.Sunil authorising the FCI to deduct from PF, it cannot override any express inhibition against FCI under the CPF Rules from making deductions. Under normal circumstances, PF amounts are also insulated from attachments. For the aforesaid reasons, these writ petitions are ordered directing that any recovery against the petitioners herein on account of amounts payable under the loans availed by Sri.P.Sunil, the first respondent in these matters, would be enforced after giving due credit to whatever amount FCI has paid to the creditor society as recorded above. This judgment also does not preclude the creditor society from taking recourse to arbitration or other modes of recovery even from Sri.P.Sunil. These writ petitions are ordered accordingly. THOTTATHIL B RADHAKRISHNAN, JUDGE lgk/25/3