Kerala High Court
Renjith K.K vs Cheruvannur Service Co-Operative Bank ... on 19 August, 2025
Author: N.Nagaresh
Bench: N.Nagaresh
2025:KER:61574
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 19TH DAY OF AUGUST 2025 / 28TH SRAVANA, 1947
WP(C) NO. 17914 OF 2025
PETITIONER:
RENJITH K.K.,
AGED 38 YEARS,
S/O.RAJAN,
RESIDING AT KARAYATTUKUNNUMMAL, CHERUVANNUR,
KOZHIKODE DISTRICT, PIN - 673655
BY ADVS.
SRI.B.KRISHNA MANI
SMT.N.V.SANDHYA
SMT.DHANUJA M.S
SHRI.VANCHEESWARA IYER V.
RESPONDENTS:
1 CHERUVANNUR SERVICE CO-OPERATIVE BANK,
LTD.NO.F1866,
CHERUVANNUR P.O., MEPPAYYUR,
KOZHIKODE DISTRICT,
REPRESENTED BY THE SECRETARY, PIN - 673524
2 THE SECRETARY,
CHERUVANNUR SERVICE CO-OPERATIVE BANK
LTD.NO.F1866, CHERUVANNUR P.O., MEPPAYYUR,
KOZHIKODE DISTRICT., PIN - 673524
3 THE SPECIAL ARBITRATOR,
PAYYOLI SERVICE CO-OPERATIVE BANK GROUP,
OFFICE OF THE ASSISTANT REGISTRAR GENERAL,
KOYILANDY, KOZHIKODE, PIN - 673305
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W.P.(C) Nos.17914 & 17995 of 2025
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4 THE SPECIAL SALE OFFICER,
PAYYOLI SERVICE CO-OPERATIVE BANK GROUP,
OFFICE OF THE ASSISTANT REGISTRAR GENERAL,
KOYILANDY, KOZHIKODE, PIN - 673305
5 THE HEADMISTRESS,
AIDED SENIOR BASIC SCHOOL,
MANGALOOR,
PALAKKAD DISTRICT, PIN - 678001
BY ADVS.
SRI.K.P.SUDHEER
SMT.BHAVANA J. MENON
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 08.07.2025, ALONG WITH WP(C).17995/2025, THE
COURT ON 19.08.2025 DELIVERED THE FOLLOWING:
2025:KER:61574
W.P.(C) Nos.17914 & 17995 of 2025
:3:
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR.JUSTICE N.NAGARESH
TUESDAY, THE 19TH DAY OF AUGUST 2025 / 28TH SRAVANA, 1947
WP(C) NO. 17995 OF 2025
PETITIONER:
RENJITH K.K.,
AGED 38 YEARS,
S/O.RAJAN,
RESIDING AT KARAYATTUKUNNUMMAL, CHERUVANNUR,
KOZHIKODE DISTRICT, PIN - 673655
BY ADVS.
SRI.B.KRISHNA MANI
SMT.N.V.SANDHYA
SMT.DHANUJA M.S
SHRI.VANCHEESWARA IYER V.
RESPONDENTS:
1 THE MANAGING DIRECTOR,
THE KERALA STATE FINANCIAL ENTERPRISES LTD.,
REGISTERED OFFICE,
BHADRATHA P.B.NO.510 MUSEUM ROAD,
THRISSUR DISTRICT, PIN - 680020
2 THE BRANCH MANAGER,
THE KERALA STATE FINANCIAL ENTERPRISES,
KODUVAYOOR BRANCH, KODUVAYOOR,
PALAKKAD DISTRICT, PIN - 678501
3 RATHEESH N.,
RESIDING AT SUMATHI NIVAS,
MALAYAKODU, KODUVAYOOR,
PALAKKAD DISTRICT, PIN - 678501
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W.P.(C) Nos.17914 & 17995 of 2025
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4 VASUDEVAN K.V.,
RESIDING AT ELAMANNAMVARYAM,
MANJALOOR, THENKURISSI,
PALAKKAD DISTRICT, PIN - 678671
5 THE HEADMISTRESS,
AIDED SENIOR BASIC SCHOOL,
MANGALOOR,
PALAKKAD DISTRICT, PIN - 678001
BY ADV.
SMT.BINDU MOHAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 08.07.2025, ALONG WITH WP(C).17914/2025, THE
COURT ON 19.08.2025 DELIVERED THE FOLLOWING:
2025:KER:61574
W.P.(C) Nos.17914 & 17995 of 2025
:5:
N. NAGARESH, J.
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W.P.(C) Nos.17914 and 17995 of 2025
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Dated this the 19th day of August, 2025
JUDGMENT
~~~~~~~~~
Petitioners both in these writ petitions have
approached this Court seeking to direct the respondents not
to proceed with recovery from their salary towards repayment
of loans availed from the 1st respondent-Bank.
2. The petitioner in W.P.(C) No.17914/2025
submits that his mother availed a loan from the 1st
respondent-Cheruvannoor Service Co-operative Bank Limited
on 17.03.2018 creating an equitable mortgage. The petitioner
was made a co-obligant. In fact, the petitioner's mother had
provided valuable property as security.
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3. When loan account fell into arrears, the sale
officer issued Ext.P6 auction notice intending to proceed
against the mortgaged property. However, the petitioner was
served with Ext.P7 auction notice directing the petitioner to
remit ₹6,05,691/- failing which coercive steps were to be
taken. Thereafter, the Secretary of the Bank issued Ext.P8
proceedings on 16.04.2025 to the Headmistress of the School
where the petitioner is engaged as a Teacher. Ext.P8 seeks
to deduct amounts from the petitioner's salary every month.
4. The petitioner states that there is substantial
security provided by the borrower. The petitioner himself had
repaid substantial amounts towards the loan account.
Therefore, Ext.P8 proceedings is illegal and unjust. The
petitioner has to spend huge for the treatment of his wife.
Various amounts remitted by the petitioner have not been
given credit. The amount due is not duly quantified. The
KSFE has also initiated proceedings to recover amounts from
the petitioner's salary in respect of a chitty where the
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W.P.(C) Nos.17914 & 17995 of 2025
petitioner is a guarantor. The salary is sought to be
recovered in violation of Section 60 of the Code of Civil
Procedure. Exts.P1 and P6 to P8 are therefore liable to be
quashed.
5. The petitioner in W.P.(C) No.17995 of 2025
is also employed as a Teacher in an Aided School. The
petitioner stood as a surety to the 3rd respondent for a chitty
transaction. Now, proceedings have been issued to deduct
₹10,000/- per month from the petitioner's salary. The said
proceedings have been issued without giving an opportunity
of hearing to the petitioner and are in violation of Section 60
of the Code of Civil Procedure, contends the petitioner. The
petitioner's monthly net salary is ₹34,634/- and he is already
facing another salary deduction in connection with a loan
availed by his mother from Cheruvannur Service Co-operative
Bank. The wife of the petitioner is also undergoing
continuous medical treatment.
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6. The 2nd respondent, Branch Manager of
KSFE, in W.P.(C) No.17995 of 2025 filed counter affidavit.
The petitioner in the writ petition is a Teacher in an Aided
School and he had given an undertaking/agreement
permitting recovery from his monthly salary in case of default
in repayment. The petitioner has expressly agreed,
consented and also has permitted the KSFE to recover
default amount from salary. As per Section 128 of the
Contract Act, the liability of the surety is co-extensive with that
of the principal debtor, unless it is otherwise provided by the
contract. The petitioner had an option not to stand as surety.
But, the petitioner came forward to sign guarantee agreement
offering to recover money from his salary in case of default.
The writ petition is liable to be dismissed.
7. I have heard the learned counsel for the
petitioner and the respective learned Standing Counsel
appearing for respondents 1 and 2, in both the writ petitions.
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8. In both the writ petitions, the petitioners have
stood as guarantors to the principal debtors who availed
financial advance from the financial institutions. When the
institutions sought recovery of amounts due to them
proposing to auction the mortgaged property and also seeking
to recover amounts from the salary of the petitioners, the
petitioners have filed these writ petitions. The prime ground
put forth by the petitioners in these writ petitions is that
recovery from their salary violates Section 60 of the Code of
Civil Procedure. There are other recoveries also from their
salaries and the excessive recovery from their salary would
offend Section 60 of the Code of Civil Procedure. Section 60
CPC deals with the property liable to attachment and sale in
execution of a decree. Section 60 reads as follows:
"60. Property liable to attachment and sale in
execution of decree -
(1) The following property is liable to
attachment and sale in execution of a decree,
namely, lands, houses or other buildings, goods,
money, bank notes, cheques, bills of exchange,
hundis, promissory notes, Government securities,
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bonds or other securities for money, debts, shares in
a corporation and, save as hereinafter mentioned, all
other saleable property, movable or immovable,
belonging to the judgment-debtor, or over which, or
the profits of which, he has a disposing power which
he may exercise for his own benefit, whether the
same be held in the name of the judgment-debtor or
by another person in trust for him or on his behalf:
Provided that the following properties shall
not be liable to such attachment or sale, namely:-
(a) the necessary wearing-apparel,
cooking vessels, beds and bedding of the judgment-
debtor, his wife and children, and such personal
ornaments as, in accordance with religious usage,
cannot be parted with by any woman;
(b) tools of artisans, and, where the
judgment-debtor is an agriculturist, his implements of
husbandry and such cattle and seed-grain as may,
in the opinion of the Court, be necessary to enable
him to earn his livelihood as such, and such portion
of agricultural produce or of any class of agricultural
produce as may have been declared to be free from
liability under the provisions of the next following
section;
(c) houses and other buildings (with the
materials and the sites thereof and the land
immediately appurtenant thereto and necessary for
their enjoyment) belonging to [an agriculturist or a
labourer or a domestic servant] and occupied by
him;
(d) books of account;
(e) a mere right to sue for damages;
(f) any right of personal service;
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(g) stipends and gratuities allowed to
pensioners of the Government [or of a local authority
or of any other employer], or payable out of any
service family pension fund notified in the Official
Gazette by [the Central Government or the State
Government] in this behalf, and political pension;
(h) the wages of labourers and domestic
servants, whether payable in money or in kind.
(i) salary to the extent of [the first [one
thousand rupees]] and two-thirds of the remainder]
[in execution of any decree other than a decree for
maintenance]:
Provided that where any part of such
portion of the salary as is liable to attachment has
been under attachment, whether continuously or
intermittently, for a total period of twenty-four
months, such portion shall be exempt from
attachment until the expiry of a further period of
twelve months, and, where such attachment has
been made in execution of one and the same
decree, shall, after the attachment has continued for
a total period of twenty-four months, be finally
exempt from attachment in execution of that decree;
(ia) one-third of the salary in execution of
any decree for maintenance;
(j) the pay and allowances of persons to
whom the Air Force Act, 1950 (45 of 1950), or the
Army Act, 1950 (46 of 1950), or the Navy Act, 1957
(62 of 1957), applies;]
(k) all compulsory deposits and other sums
in or derived from any fund to which the Provident
Funds Act, [1925 (19 of 1925)], for the time being
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applies in so far as they are declared by the said Act
not to be liable to attachment;
(ka) all deposits and other sums in or
derived from any fund to which the Public Provident
Fund Act, 1968 (23 of 1968), for the time being
applies, in so far as they are declared by the said
Act as not to be liable to attachment;
(kb) all moneys payable under a policy of
insurance on the life of the judgment-debtor;
(kc) the interest of lessee of a residential
building to which the provisions of law for the time
being in force relating to control of rents and
accommodation apply;
(l) any allowance forming part of the
emoluments of any [servant of the Government] or
of any servant of a railway company or local
authority which the [appropriate Government] may
by notification in the Official Gazette declare to be
exempt from attachment, and any subsistence grant
for allowance made to [any such servant] while
under suspension;
(m) an expectancy of succession by
survivorship or other merely contingent or possible
right or interest;
(n) a right to future maintenance;
(o) any allowance declared by [any Indian
law] to be exempt from liability to attachment or sale
in execution of a decree; and
(p) where the judgment-debtor is a person
liable for the payment of land-revenue; any movable
property which, under any law for the time being
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W.P.(C) Nos.17914 & 17995 of 2025
applicable to him, is exempt from sale for the
recovery of an arrear of such revenue.
Explanation I - The moneys payable in
relation to the matters mentioned in clauses (g), (h),
(i) (ia), (j), (l) and (o) are exempt from attachment or
sale, whether before or after they are actually
payable, and, in the case of salary, the attachable
portion thereof is liable to attachment, whether
before or after it is actually payable.
Explanation II - In clauses (i) and (ia)]
"salary" means the total monthly emoluments,
excluding any allowance declared exempt from
attachment under the provisions of clause (l),
derived by a person from his employment whether
on duty or on leave.
Explanation [III] - In clause (l) "appropriate
Government" means--
(i) as respect any [person] in the service of
the Central Government, or any servant of [a
Railway Administration] or of a cantonment authority
or of the port authority of a major port, the Central
Government;
(ii) [***]
(iii) as respects any other servant of the
Government or a servant of any other [***] local
authority, the State Government.
Explanation IV - For the purposes of this
proviso, "wages" includes bonus, and "labourer"
includes a skilled, unskilled or semi-skilled labourer.
Explanation V - For the purposes of this
proviso, the expression "agriculturist" means a
person who cultivates land personally and who
depends for his livelihood mainly on the income from
agricultural land, whether as owner, tenant, partner,
or agricultural labourer.
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W.P.(C) Nos.17914 & 17995 of 2025
Explanation VI - For the purposes of
Explanation V, an agriculturist shall be deemed to
cultivate land personally, if he cultivates land -
(a) by his own labour, or
(b) by the labour of any member of his
family, or
(c) by servants or labourers on wages
payable in cash or in kind (not being as a share of
the produce), or both.
(1A) Notwithstanding anything contained in
any other law for the time being in force, an
agreement by which a person agrees to waive the
benefit of any exemption under this section shall be
void.
(2) Nothing in this section shall be deemed
[***] to exempt houses and other buildings (with the
materials and the sites thereof and the lands
immediately appurtenant thereto and necessary for
their enjoyment) from attachment or sale in
execution of decrees for rent of any such house,
building, site or land, [***]."
9. Section 60(1)(i) provides that salary to the
extent of the first one thousand rupees and two third of the
reminder alone can be attached in execution of any decree
other than a decree for maintenance. It is to be noted that
Section 60 will come into play only when the attachment and
sale is in execution of a decree.
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W.P.(C) Nos.17914 & 17995 of 2025
10. In the case of the petitioners, the recovery is
sought pursuant to specific agreement/undertaking given by
the petitioners that defaulted amounts can be recovered from
their salary. When the petitioners have voluntarily given such
undertaking and executed agreements with the financial
institutions, the petitioners cannot make excuse under Section
80 CPC.
11. The further argument of the petitioner in
W.P.(C) No.17914/2025 is that the financial institutions need
to sell in auction only that extent of property which is sufficient
to wipe off the liability of the financial institution. The
petitioners have not given any details of the valuation of the
property mortgaged in order to conclude that only a portion of
the property need be sold to wipe of the livability. It is also
not discernible as to whether the property is of such a nature
that a portion of the property can be divided and sold. In the
circumstances, this Court is not inclined to accept the said
argument either.
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W.P.(C) Nos.17914 & 17995 of 2025
The writ petitions are therefore without any
merit and are hence dismissed.
Sd/-
N. NAGARESH, JUDGE
aks/14.08.2025
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W.P.(C) Nos.17914 & 17995 of 2025
APPENDIX OF WP(C) 17914/2025
PETITIONER'S EXHIBITS:
Exhibit P1 A TRUE COPY OF THE AWARD DATED
26/7/2024 ISSUED BY THE SPECIAL
ARBITRATOR IN A.R.C.NO. 2605/2023.
Exhibit P2 A TRUE COPY OF THE RECEIPT DATED
5/2/2024
Exhibit P3 A TRUE COPY OF THE RECEIPT DATED
3/4/2025
Exhibit P4 A TRUE COPY OF THE RECEIPT DATED
3/4/2025
Exhibit P5 A TRUE COPY OF THE SALARY SLIP OF THE
PETITIONER IN RESPECT OF MARCH 2025.
Exhibit P6 A TRUE COPY OF THE AUCTION NOTICE
DATED 20/03/2025 ISSUED BY THE SALE
OFFICER.
Exhibit P7 A TRUE COPY OF THE EMERGENCY AUCTION
NOTICE DATED 11/04/2025 ISSUED BY THE
SPECIAL SALE OFFICER IN E.P.
NO.90/2025.
Exhibit P8 A TRUE COPY OF THE PROCEEDING DATED
16/04/2025 ISSUED BY THE SECRETARY,
CHERUVANNUR SERVICE CO-OPERATIVE BANK
LTD. TO THE HEADMISTRESS OF THE
SCHOOL, MANNALUR, PALAKKAD.
Exhibit P9 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 8/5/2024.
Exhibit P10 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 27/3/2024
Exhibit P11 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 7/2/2024.
Exhibit P12 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
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W.P.(C) Nos.17914 & 17995 of 2025
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 15/11/2023.
Exhibit P13 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 27/12/2023.
Exhibit P14 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 26/4/2023.
Exhibit P15 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 5/7/2023
Exhibit P16 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 23/8/2023.
Exhibit P17 A TRUE COPY OF THE PRESCRIPTION SHEET
DATED 7/9/2024 ISSUED BY THE MALABAR
MEDICAL COLLEGE AND RESEARCH CENTRE,
KOZHIKODE.
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W.P.(C) Nos.17914 & 17995 of 2025
APPENDIX OF WP(C) 17995/2025
PETITIONER'S EXHIBITS:
Exhibit P1 A TRUE COPY OF THE PROCEEDING DATED
18/3/2025 ISSUED BY THE BRANCH
MANAGER, KODVAYOOR BRANCH, PALAKKAD
DISTRICT, KERALA STATE FINANCIAL
ENTERPRISES LTD.
Exhibit P2 A TRUE COPY OF THE PAY SLIP OF THE
PETITIONER IN RESPECT OF MARCH 2025.
Exhibit P3 A TRUE COPY OF THE RECEIPT DATED
21/3/2025
Exhibit-P4 A TRUE COPY OF THE RECEIPT DATED
23/4/2025
Exhibit P5 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 8/5/2024.
Exhibit P6 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 27/3/2024
Exhibit P7 TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 7/2/2024.
Exhibit P8 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 15/11/2023.
Exhibit P9 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 27/12/2023.
Exhibit P10 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 26/4/2023.
Exhibit P11 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
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W.P.(C) Nos.17914 & 17995 of 2025
AND RESEARCH CENTRE DATED 5/7/2023
Exhibit P12 A TRUE COPY OF THE TREATMENT METED OUT
THE PETITIONER'S WIFE ISSUED BY THE
E.M.S. MEMORIAL CO-OPERATIVE HOSPITAL
AND RESEARCH CENTRE DATED 23/8/2023.
Exhibit P13 A TRUE COPY OF THE PRESCRIPTION SHEET
DATED 7/9/2024 ISSUED BY THE MALABAR
MEDICAL COLLEGE AND RESEARCH CENTRE,
KOZHIKODE.
RESPONDENTS' EXHIBITS:
Exhibit R2( A) A TRUE COPY OF THE APPLICATION FOR
BEING A SURETY/GUARANTOR OF THE 3RD
RESPONDENT DATED 31-5-2022
Exhibit R2( B) Exhibit R2( B) : A TRUE COPY OF THE
AGREEMENT FOR RECOVERY FROM SALARY
WITH THE 2ND RESPONDENT DATED 31-5-
2022 SIGNED BY THE PETITIONER
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W.P.(C) Nos.17914 & 17995 of 2025
