IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE THOTTATHIL B.RADHAKRISHNAN THURSDAY, THE 10TH DECEMBER 2009 / 19TH AGRAHAYANA 1931 WP(C).No. 26735 of 2009(J) ---------------------------------- PETITIONER(S): --------------------- 1. S.MURALEEDHARAN NAIR, SUPERINTENDENT , K.S.R.T.C. CHIEF OFFICE, TRANSPORT BHAVAN, THIRUVANANTHAPURAM-23. RESIDING AT SARASWATHY VILASAM, MANIKANTESWARAM.PO VATTIYOORKAVU, THIRUVANANTHAPURAM. 2. O.RAJESWARI AMMA, SUPERINTENDENT K.S.R.T.C. THIRUVANANTHAPURAM CITY OFFICE, THIRUVANANTHAPURM-23, RESIDING AT REVATHY SREEKRISHNAPURAM, CHEMPAZHANTHI MURI, THIRUVANANTHAPURAM. BY ADV. SRI.ANANDARAJAN.N SRI.C.V.MILTON RESPONDENT(S): ----------------------- 1. THE KERALA STATE ROAD TRANSPORT CORPORATION REP. BY ITS MANAGING DIRECTOR, TRANSPORT BHAVAN, FORT.P.O., THIRUVANANTHAPURAM-23 2. THE FINANCIAL ADVISOR AND CHIEF ACCOUNTS OFFICER, K.S.R.T.C., TRANSPORT BHAVAN FORT.P.O. THIRUVANANTHAPURAM-23. 3. THE PERSONNEL OFFICER(PENSION) K.S.R.T.C., TRANSPORT BHAVAN, FORT.P.O., THIRUVANANTHAPURAM-23. 4. THE DISTRICT TRANSPORT OFFICER, K.S.R.T.C., THIRUVANANTHAPURAM CITY, THIRUVANANTHAPURAM-23. 5. BABU K. SURESH, SUPERINTDENT, KSRTC, KOTTARAKKARA (RETIRED ON 30-11-2008) RESIDING AT SINDURY, THEKKEVILA.P.O., KOLLAM. WP(C) NO. 26735/2009 6. THE SECRETARY, KERALA STATE TRANSPORT WORKERS CO-OPERATIVE SOCIETY LTD. NO.T.133 THAMPANOOR, THIRUVANANTHAPURAM. 7. THE ARBITRATOR FOR KERALA STATE TRANSPORT WORKERS CO-OPERATIVE SOCIETY LTD.NO.T.133, OFFICE OF THE ASST. REGISTRAR OF CO-OPERATIVE SOCIETIES (GENERAL), THIRUVANANTHAPURAM. *8. BRANCH MANAGER, STATE BANK OF INDIA, KOLLAM BRANCH. *ADDL. R8 IS IMPLEADED AS PER ORDER DATED 24/09/2009 IN WP(C) ADV. SRI.N.UNNIKRISHNAN,SC KSTW CO.OP SOCIETY(R6 & 7) SHRI.JOHNSON P.JOHN, SC, KSRTC(R1-R4) SRI.P.V.SURENDRANATH FOR R8 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 10/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C) NO. 26735/2009 J APPENDIX PETITIONER'S EXHIBITS : EXT.P1. COPY OF THE SUMMONS DT. 25/08/2009 WITH APPLICATION ISSUED TO THE P1. EXT.P2. COPY OF THE SUMMONS DT. 25/08/2009 WITH APPLICATION ISSUED TO THE P2. EXT.P3. COPY OF THE NOTICE DT. 26/2/2009 TO THE R5. EXT.P4. COPY OF THE JUDGMENT DT. 11/08/09 IN WPC 22253/2009 FILED BY THE R5. EXT.P5. COPY OF THE PROCEEDINGS NO. PA 4/039/320/2008 DT. 09/09/09. RESPONDENTS' EXHIBITS : EXT.R6A. COPY OF THE REGD. NOTICE NO. 7775/08-09 ON 29/11/2008. EXT.R6B. COPY OF THE A/D CARD DT. 10/12/2008. EXT.R6C. COPY OF THE LETTER DT. 10/09/09 BY R6. EXT.R6D. COPY OF THE STATEMENT IN RESPECT OF LOAN NO. BAL. 40993 AVAILED BY SRI. BABU K. SURESH (R5). / TRUE COPY / PS TO JUDGE. Tga THOTTATHIL B. RADHAKRISHNAN, J. = = = = = = = = = = = = = = = = = = = = = = = = W.P.(C).No.26735 of 2009-J = = = = = = = = = = = = = = = = = = = = = = = = Dated this the 10th day of December, 2009. JUDGMENT 1.The petitioners are employees of KSRTC. The fifth respondent, while working with KSRTC, had availed a loan from the sixth respondent. The petitioners were sureties for that loan. The claims against the petitioners are referable to the demands made by the sixth respondent society and the additional eighth respondent bank. 2.The learned counsel for the additional eighth respondent submits that there are no outstandings remained in the bank account in relation to the fifth respondent and that the transaction is settled. WPC26735/09 -: 2 :- 3.In so far as the sixth respondent is concerned, the controverted counter affidavit of the sixth respondent reads as follows: “The petitioners are sureties of 5th respondent who had availed a loan No.BAL-40993 dted.17/5/01 of Rs.1,00,000/- (Rupees one lakh) with 17% interest repayable in 50 monthly instalments @ Rs.2,685/- per month. Since he had defaulted, the loan schedule was revised for 50 monthly instalments @ Rs.3210/- starting from 30/7/2003 to 30/9/2006. Only 30 instalments were received up to 31/5/08. Hence, a registered notice dtd.29/11/08 was sent to 5th respondent, loanee as well as sureties, writ petitioners herein. It was received by him as per the Acknowledgement Card dtd.10/12/2008.” It is further stated as follows: “A notice was also served upon A.T.O.,KSRTC, Kottarakara on WPC26735/09 -: 3 :- 25/2/2009 for recovering the amount from DCRG of 5th respondent, as agreed by the 5th respondent as per his consent, agreement and other documents executed. Some clarifications were also issued by the Society but no recoveries were made. Therefore, action under Rule 69 of K.C.S.Act was initiated against 5th respondent which ended in Award No.1125/009. Execution Proceedings were also initiated by letter dated 10/9/09 by 6th respondent with a copy to the Managing Director, KSRTC, Thiruvananthapuram as well as ATO, KSRTC, Kottarakkara.” Paragraph 3 of the counter affidavit states as follows: “In the meanwhile, the 5th respondent approached this Hon'ble Court for out of turn payment of DCRG and CVP and it resulted in Exhibit-P4 Judgment dtd.11/8/09 in W.P.(C)No.22253/09 directing the KSRTC to pay the DCRG and CVP due to the 5th respondent out of turn from 10% earmarked for such WPC26735/09 -: 4 :- purpose within a period of 45 days and to issue pay order to the S.B.I. which will settle the accounts and return excess. As per Ext.P3, due amount as on 26/2/2009 with State Bank of India was Rs.3,62,991/- as per the directions of this Hon'ble Court after adjusting due amount payable to SBI, excess amount if any should be returned to the petitioner. It is humbly submitted that total amount after waiving penal interest from the Award amount of Rs.1,28,538 comes to Rs.1,25,775/-.” Accordingly, respondents 6 and 7 contend as follows: “It is humbly submitted that the loanee is liable to pay the amount of Rs.1,25,775/- by deduction from his DCRG and other retirement benefits including any benefits being received by him from KSRTC. If he fails, recoveries have to be made from the sureties, as per their bonds executed along with consent letters.” WPC26735/09 -: 5 :- Ultimately, they further plead as follows: “Now, the A.T.O., KSRTC, Kottarakkara has furnished a Treasury Cheque No.0191500 dtd.23/9/2009 for Rs.1,19,503/-(One lakh Nineteen Thousand Five Hundred Three) on 29/9/2009, leaving a balance of Rs.6,272/- to be paid to Society. The 5th respondent is liable to pay it and this can be adjusted from his share amount of Rs.5,000/- and thrift amount of Rs.1,566/- (Rs.6,566/-) and loan A/C.No.BAL-40993 can be closed. Necessary directions may kindly be issued.” 4.There is no challenge to the aforesaid position pointed out by respondents 6 and 7 by any of the parties. Accordingly, this writ petition is ordered directing that the amount to be paid by the 5th respondent shall be adjusted from his share amount of Rs.5,000/- and thrift amount of WPC26735/09 -: 6 :- Rs.1,566/- and the loan account would stand closed. THOTTATHIL B.RADHAKRISHNAN, JUDGE. Sha/2212