Kerala High Court
Shibu.K vs The Kerala State Road Transport ... on 18 November, 2024
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE ZIYAD RAHMAN A.A.
Monday, the 18th day of November 2024 / 27th Karthika, 1946
WP(C) NO. 5397 OF 2024 (Y)
PETITIONER:
SHIBU.K AGED 53 YEARS S/O. R.V.KUMARAN, INSPECTOR, KERALA STATE ROAD
TRANSPORT CORPORATION, THRISSUR DEPOT (RESIDING AT RAMANCHIRANGARA
HOUSE TEMPLE CANAL ROAD, EAST KADUNGALLUR U.C.COLLEGE.P.O, PIN -
683192)
RESPONDENTS:
1. THE KERALA STATE ROAD TRANSPORT CORPORATION, REP. BY ITS MANAGING
DIRECTOR, TRANSPORT BHAVAN, EAST FORT, THIRUVANANTHAPURAM, PIN -
683102
2. THE MANAGING DIRECTOR, KERALA STATE ROAD TRANSPORT CORPORATION,
TRANSPORT BHAVAN, EAST FORT, THIRUVANANTHAPURAM, PIN - 695023
3. THE EXECUTIVE DIRECTOR (ADMINISTRATION), KERALA STATE ROAD TRANSPORT
CORPORATION, TRANSPORT BHAVAN, EAST FORT, THIRUVANANTHAPURAM, PIN -
695023
4. THE FINANCIAL & CHIEF ACCOUNTS OFFICER, KERALA STATE ROAD TRANSPORT
CORPORATION, TRANSPORT BHAVAN, THIRUVANANTHAPURAM, PIN - 695023
5. THE DISTRICT OFFICER FOR THRISSUR AT DISTRICT TRANSPORT OFFICERS
OFFICE, KERALA STATE ROAD TRANSPORT CORPORATION, THRISSUR DEPOT, PIN
- 680001
6. THE ASSISTANT TRANSPORT OFFICER, KERALA STATE ROAD TRANSPORT
CORPORATION, THRISSUR DEPOT, PIN - 680001
7. THE SECRETARY, KERALA STATE TRANSPORT WORKERS' CO-OPERATIVE SOCIETY
LTD. NO.T.133, THAMPANOOR, THIRUVANANTHAPURAM, PIN - 695001
8. THE SECRETARY, ALUVA STATE TRANSPORT STAFF CO-OPERATIVE SOCIETY LTD.
NO.E158, MARKET ROAD, ALUVA, PIN - 683101
9. THE ARBITRATOR/SPECIAL SALE OFFICER OF KERALA STATE TRANSPORT
WORKERS CO-OPERATIVE SOCIETY LTD. NO.T.133, THAMPANOOR,
THIRUVANANTHAPURAM, PIN - 695001
Writ petition (civil) praying inter alia that in the circumstances
stated in the affidavit filed along with the WP(C) the High Court be
pleased to direct the 2nd respondent to stop further recovery of loan dues
from the petitioner's salary until the recovered loan dues are remitted to
the concerned societies without further delay, pending disposal of the
above Writ Petition (Civil).
This petition again coming on for orders upon perusing the petition
and the affidavit filed in support of WP(C) and this court's judgment
dated 06.09.2024 and order dated 01.11.2024 and upon hearing the arguments
of M/S.K.P.JUSTINE (KARIPAT) & A.JOSEPH GEORGE (AZHIKKAKATH), Advocates
for the petitioner, SRI.DEEPU THANKAN, STANDING COUNSEL for R1 to R6,
SRI.N.UNNIKRISHNAN, Advocate for R7, SRI.C.V.MILTON, Advocate for R8, the
court passed the following:
ZIYAD RAHMAN A.A., J.
=================================
W.P.(C) Nos. 31214, 3121, 38515 of 2023 and
3273, 5397, 22397,23513, 24206, 27204, 28563,
29779, 30247, 30249, 30271 & 30866 of 2024
=================================
Dated this the 18th day of November, 2024
ORDER
In all these cases, the issues raised are pertaining to the
recoveries effected from the salaries of the petitioners, who are
employees of the K.S.R.T.C., towards repayment of the loans taken
by the employees from the Employees Co-Operative Societies.
However, due to the financial stringency, the K.S.R.T.C. did not pay
the amounts to the societies regularly, which resulted in the accrual
of penal interest and other additional charges on the respective
loan accounts of the petitioners, thereby resulting in an increase in
the amounts recoverable from the petitioners from the month to
month. Consequently, most of the petitioners are paying amounts at
the rates higher than the actual E.M.I payable by them as per the
terms and conditions of the agreement, if the repayment were as
per the payment schedule.
2. Today, when the matter came up for consideration, the
learned Standing Counsel for the K.S.R.T.C pointed out that, on
14.11.2024, an interim order was passed by a learned Single Judge
of this Court in R.P.No.862/2023 in WP(C) No.19552/2022
wherein certain directions were issued to the K.S.R.T.C. to
approach the Government for financial assistance and Government
was further directed to consider such request, and thereby to
provide financial assistance to the K.S.R.T.C as a one-time
measure, similar to the one earlier adopted, to settle the liability
towards KTDFC. The matter is now posted after two months for the
report of the Government with regard to the action taken in respect
of the same.
3. Thus, it was pointed out by the learned Standing
Counsel of the KSRTC that, a decision in this regard can be taken
on the basis of the outcome of the implementation of the aforesaid
interim order.
4. Besides, the learned Standing Counsel for the KSRTC
also brought to the attention of this Court to the minutes of the
meeting convened on 14.11.2024 between the KSRTC and the
officials of the societies, to whom the amounts are to be paid.
Certain decisions are taken on the said meeting and the same is
also under process.
5. On behalf of the petitioners, while seeking stay of
further recoveries for their accounts by the KSRTC, a submission
was made by specifically referring to Rule 52(7) of the Kerala
Co-operative Societies Rules, which reads as follows:
"52(7): Any amount realized by a society from
a member by deduction shall be given credit by
the society to the account of such member with
effect from the date on which the amount was
deducted by the employer or the officer
disbursing the salary or wages irrespective of
the date on which the amount was actually
received by such society. On the appropriation
of the amount in the account of the society,
the particulars of credit for the amount
realized shall forthwith be furnished to the
member by the society."
6. It was pointed out that, in this case, there is no dispute
that the recoveries are being effected from the salaries of the
petitioners/employees, but the amounts are not paid by the KSRTC
to the respective societies. As per the statutory stipulation
contained in Sub Rule 7 of Rule 52 of the Kerala Co-operative
Societies Rules, as far as the petitioners are concerned, they are
entitled to get the credit of the amounts recovered from their
respective salaries, the moment when the recoveries are effected
from their salaries and the date on which the actual disbursement
was made by the KSRTC to the respective societies, is completely
irrelevant. Therefore, as far as the petitioners are concerned, on
whose salaries the recoveries are effected, they cannot be mulcted
with any penal charges for non payment of the amounts by virtue of
the operation of Sub Rule (7) of Rule 52 of the Kerala Co-operative
Societies Rules.
7. Moreover, it is also pointed out by the learned
counsels appearing for the petitioners that as the monthly
recoveries are being effected from the salaries of the petitioners at
higher rates, by including the penal charges and other amounts, in
respect of most of the accounts, amounts were collected from them
are infact in excess of the amounts actually recoverable from the
petitioners, had the payments were correctly made by the KSRTC
as per the payment schedule. Therefore, it was pointed out that
since no additional liability could be accrued upon the petitioners on
account of the operation of Sub Rule (7) of Rule 52 of the Kerala
Co-operative Societies Rules, the liability in most of the cases is
already satisfied from the point of view of the petitioners. If at all
any further amounts are receivable by the societies, on account of
the delayed payment by the KSRTC, that can only be payable by
the KSRTC.
8. On carefully going through the statutory provisions as
referred to above and the admitted facts relating to the recovery
and non-payment of the amounts by the KSRTC, I am of the view
that, the said contentions are legally sustainable. Therefore, as it is
reported that even now recoveries are being effected from the
monthly salary of the petitioners in higher amounts and in some
cases, such recoveries are in excess than the actual amount
payable by them, some interim orders are necessary in this case, in
order to prevent the petitioners being penalized further.
9. During the course of the hearing today, a suggestion
came up as to a direction to the societies and KSRTC to determine
the actual amounts due in the loan amounts of the petitioners to
ascertain whether excess amounts were collected, by excluding the
penal interest and other penalties. The said exercise can be done
only by the societies in consultation with the KSRTC and in case
the amounts collected are found to be in excess, the respective
petitioners are to be absolved from the liability by permitting the
respective societies to recover amounts by way of penal charges
from the KSRTC.
10. While this suggestion was being considered, a
submission was made on behalf of the KSRTC by the learned
Standing Counsel that as of now KSRTC is even finding it difficult to
meet the expenses for salary and now the attempt of the KSRTC is
to raise funds for meeting the monthly net salaries of the
employees, without taking into account the deductions from their
salaries, including the amounts to be recovered towards the loan
accounts. Thus, it was pointed out that the suggestion as referred
to above will adversely affect their capacity to manage the payment
of monthly salaries. This is because, any order of stay against
recovery from the salaries of the employees would burden the
KSRTC, requiring them to find out additional funds for the payment
of the salaries alone, as in the event of stay of recoveries, the
KSRTC would be under obligation to pay the salaries along with the
amounts ought to be recovered every month, towards the
repayment of the loans payable to the Societies.
11. However, after considering all the relevant aspects,
I am of the view that, even though the submission made by the
learned Standing Counsel, may be a case of practical difficulties for
the KSRTC, that cannot be a reason to deny the reliefs sought by
the petitioners herein. Under no circumstances, the practical
difficulty highlighted by the KSRTC can be treated as something
which can deprive the employees of their right to get their due
salary. Therefore, I am not inclined to accept a submission made on
behalf of the KSRTC for the time being.
In such circumstances, there shall be an interim order
directing the Employee's Societies to whom the amounts are to be
paid, to recalculate the amounts due in each and every loan
accounts of the petitioners and to determine the amounts which are
actually payable by the respective petitioners towards repayment,
had the payments were effected strictly as per the payment
schedule. For that purpose, societies shall be at liberty to consult
with the KSRTC and KSRTC shall extend their co-operation for
reckoning amounts as referred to above. It is further directed that,
the said exercise shall be completed by the society and the KSRTC
within a period of one month from the date of receipt of copy of this
order. Statements shall be submitted before this court by the
respective societies highlighting the details of the said payments
before this Court on such determination. In the meanwhile, further
recoveries from the salaries of the petitioners shall be kept in
abeyance for a period of one month. In the light of this order, the
petitioners shall be entitled to get salaries equivalent to the amount
without deduction of any amount towards their respective loan
acounts. It is clarified that, these directions are in respect of the
recoveries towards dues payable to the societies who are the
respondents in these writ petitions. Further modification, if any, in
this order can be considered on the next posting date, after
analyzing the developments in this matter.
Post on 11.12.2024.
Sd/-
ZIYAD RAHMAN A.A
JUDGE
pkk
18-11-2024 /True Copy/ Assistant Registrar
