IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 21ST MAY 2009 / 31ST VAISAKHA 1931 WP(C).No. 1434 of 2007(U) ------------------------- PETITIONER(S): --------------- 1. M.BALAN, S/O. ARIPPAN, MACHINIST (RTD.), KSRTC REGIONAL WORKSHOP, KOZHIKODE, PALLIYARAKANDI HOUSE, KOOTHALI P.O., PERAMBRA, KOZHIKODE. 2. K.SIVADASAN, ASSISTANT DEPUTY ENGINEER (RTD.), REGIONAL WORKSHOP, KOZHIKODE SHADE, KOZHITHAR VAYAL, WEST HILL P.O., KOZHIKODE. BY ADV. SRI.P.P.SOMAN NAIR RESPONDENT(S): --------------- 1. KERALA STATE ROAD TRANSPORT CORPN. CHIEF OFFICE, TRANSPORT BHAVAN, FORT P.O., THIRUVANANTHAPURAM-23, REPRESENTED BY ITS MANAGING DIRECTOR. 2. THE FINANCIAL ADVISOR & CHIEF ACCOUNTS OFFICER, KERALA STATE ROAD TRANSPORT CORPN. CHIEF OFFICE, TRANSPORT BHAVAN, FORT P.O., THIRUVANANTHAPURAM-23. 3. DEPUTY CHIEF ACCOUNTS OFFICER(ACCOUNTS), KERALA STATE ROAD TRANSPORT CORPORATION CHIEF OFFICE, TRANSPORT BHAVAN, FORT P.O., THIRUVANANTHAPURAM-23. 4. THE WORKS MANAGER, KERALA STATE ROAD TRANSPORT CORPORATION, REGIONAL WORKSHOP, KOZHIKODE. 5. THE SECRETARY, KERALA STATE TRANSPORT WORKERS CO-OPERATIVE SOCIETY LTD.NO.T.133, THIRUVANANTHAPURAM. ADV. SRI.K.PRABHAKARAN, SC, K.S.R.T.C. FOR R1TO4 SRI.N.UNNIKRISHNAN,SC KSTW CO.OP SOCIETY FOR R5 THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 21/05/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WPC1434/07. APPENDIX PETITIONER(S)' EXHIBITS P1. COPY OF THE FREE PASS. P2. COPY OF THE FREE PASS. P3. COPY OF THE CERTIFICATE ISSUED BY R4 TO P1. P4. -DO- P2. P5. COPY OF THE LETTER DTD.12.12.05 BY R4. P6. COPY OF THE LETTER DTD.24.8.06 BY R5 TO P2. P7. COPY OF THE ORDER IN PL CASE NO.815/06 FILED BY P1. P8. COPY OF THE ORDER IN PL CASE NO.814/06 FILED BY P2. RESPONDENT(S)' EXHIBITS: R1A. COPY OF THE STATEMENT OF DEDUCTIONS REGARDING 1ST PETITIONER. B. -DO- 2ND PETITIONER. R5A. COPY OF THE STATEMENT OF RECOVERY POSITION OF THE PETITIONERS. Sdk+ ///True copy/// P.A. to Judge S.SIRI JAGAN, J. ================== W.P(C).No.1434 of 2007 ================== Dated this the 21st day of May, 2009 J U D G M E N T The petitioners are retired employees of the Kerala State Road Transport Corporation, who retired from service on 31.8.2003 and 30.6.2006 respectively. While they were in service, they availed of loans from the 5th respondent society. They entered into agreements with the society and the KSRTC to the effect that the KSRTC would deduct the monthly instalments of repayments of loan from the salaries of the petitioners every month and pay the same to the society. Accordingly, every month instalment amounts of repayment of loans were being deducted from the salaries of the petitioners and, according to the petitioners, entire loan amounts with interest were deducted from the salaries of the petitioners. However, in spite of that, by Exts.P5 and P6, the petitioners have been directed to pay additional amounts towards settlement of the loan amounts which are under challenge before me. According to the petitioners, since the entire amounts with interest have been deducted from the salaries of the petitioners every month, they are not bound to pay any further amount towards settlement of the loan amounts. 2. A counter affidavit has been filed by respondents 1 to 4 to the effect that, as is revealed by Exts.R1(a) and R1(b), amounts w.p.c.1434/07 2 deducted from the salaries of the petitioners were paid to the society and therefore, the KSRTC is not in any way liable in the matter. 3. A counter affidavit has been filed by the 5th respondent- society also, in which it is stated thus: “2. It is humbly submitted that the 1st petitioner, Shri M.Balan, had availed a loan No.35375 and the second petitioner had availed Loan No.39291 of Rs.33,000/- and Rs.60,000/- on 26.3.1998 and 15.5.200 respectively undertaking to repay it in 35 and 50 monthly instalments respectively through salary deductions. The loan ought to have been completely paid on 26.2.2001 and 15.7.2004 respectively. There is a delay of 28 and 11 months in the payment made by the KSRTC. It appears that KSRTC had deducted the amounts on the request of the society regularly and promptly but retained it without paying to the Society in time. According to Section 37 of the Kerala Co-Op: Societies Act, the recovered amounts should be remitted to the Society within seven days of such recovery. By retaining the amounts, the KSRTC had gained undue advantage at the cost of the writ petitioners and the Society. It amounts to criminal offence and temporary misappropriation of money. The impugned omission and commission of KSRTC has fastened liability on the writ petitioner [sic] with Rs.21,273/- (Rs.8283 and 12990). Since the delay is attributable to KSRTC, the KSRTC may kindly be directed to pay Rs.21,273/- (Rs.8283 + 12990/-) lie against the petitioners due to delay in remitting the amounts. A Statement of Recovery Position of the writ petitioners in W.P.(C).No. 1434/2007 is produced herewith and marked as Exhibit R5(A). As soon as the amounts are received, the account will be closed and share amounts released.” 4. I have heard parties. 5. As is clear from the counter affidavit of the 5th respondent the additional demands now made as per Exts.P5 & P6 are towards interest for delayed payment of installment amounts. From Exts.R1(a) and R1(b), it is clear that although instalments were deducted from the salaries of the petitioners every month, evidently there was delay in remittance of the amounts to the 5th respondent society. That being so, if interest has accrued on account of the delay on the part of the w.p.c.1434/07 3 KSRTC to pay amounts deducted from the salaries of the petitioners, to the 5th respondent society, the KSRTC alone would be responsible for the same and the petitioners cannot be made liable for the same. It is declared so. Accordingly, I dispose of this writ petition with a direction to respondents 1 to 4 to pay to the 5th respondent the amounts now demanded by the 5th respondent towards interest for delayed payment of the instalment amounts as per Exts.P5 and P6. The same shall be paid within one month from the date of receipt of a certified copy of this judgment. I further make it clear that amounts so paid by the KSRTC shall be recovered from the persons responsible for the delay in remittance of the amounts by the KSRTC to the 5th respondent-society. Sd/- sdk+ S.SIRI JAGAN, JUDGE ///True copy/// P.A. to Judge w.p.c.1434/07 4 w.p.c.1434/07 5