Kuttan Pillai Vs. State of Kerala - Court Judgment

Excerpt:
- state financial corporation act, 1951[c.a. no. 63/1951. sections 29 & 31: [k.s. radhakrishnan, thottathil b. radhakrishnan & m.n. krishnan, jj] recovery of loan amount held, once industrial concern commits default in repayment of the loan or advance made by the financial corporation and under a liability, the right of the corporation to invoke section 29 of the act accrues and it is open to the corporation to realise the entire loan advanced to the industrial concern not only from the properties of the industrial concern but also from the properties pledged or mortgaged b y the sureties for the loan advanced by the corporation. section 29 is a complete code by itself. liability of principal-debtor and surety is always joint and co-extensive. [n. narasimhaiah v karnataka state financial corporation, air 2004 kar 46 dissented from].orderk.a. abdul gafoor, j.1. petitioner retired from service while working as last grade servant on 1.1.2000. retiral benefits have been sanctioned to him as per exts. p1 and p2 orders. in spite of the same, no gratuity has been disbursed to him, petitioner submits.it is submitted by the learned government pleader that the petitioner had agreed for recovery of an amount of rs. 35,738/- as per annexure-i. therefore, the petitioner can get only the balance amount, if any, towards gratuity. in reply thereto, petitioner contends that as per the provisions contained in s. 60 of the code of civil procedure, agreement for reduction of any amount from the gratuity is void and therefore, annexure a1 cannot be acted upon.3. gratuity is payable to the petitioner on the basis of rules contained in r.3, part iii of the kerala service rules. r.3, part iii of the kerala service rules. r.3 thereof makes it clear that the amount due from retired employees towards government companies can be deducted from the gratuity if they consent for it and only the balance amount need be paid to the incumbent. when this provision contained in the rules give right for payment of gratuity after deducting the amount due to the government companies, after having agreed or consented in that line, the petitioner cannot now turn round and say that annexure i is void. it is based on that statutory provisions contained in r. 3 part iii of the k.s.r., amount due from the petitioner to the government company namely, the kerala financial corporation, is sought to be recovered. therefore, petitioner will be entitled to get only the balance, if any left, after deducting the amount made mention of by himself in annexure a1.4. there is no reason on the part of the respondents in delaying the balance amount if any, beyond 31.12.2000. the delay in paying the balance amount beyond 31.12.2000, on expiry of a reasonable time after submission of annexure i, is not justified. therefore, the respondents shall be liable to pay interest on the balance amount with effect from 1.12.2000 until the date of payment. payment shall be effected, with interest payable at 6% at any rate, within a period of three months from the date of receipt of a copy of this judgment.5. the original petition is disposed of as above.

Judgment:
ORDER

K.A. Abdul Gafoor, J.

1. Petitioner retired from service while working as Last Grade Servant on 1.1.2000. Retiral benefits have been sanctioned to him as per Exts. P1 and P2 orders. In spite of the same, no gratuity has been disbursed to him, petitioner submits.

It is submitted by the learned Government Pleader that the petitioner had agreed for recovery of an amount of Rs. 35,738/- as per Annexure-I. Therefore, the petitioner can get only the balance amount, if any, towards gratuity. In reply thereto, petitioner contends that as per the provisions contained in S. 60 of the Code of Civil Procedure, agreement for reduction of any amount from the gratuity is void and therefore, Annexure A1 cannot be acted upon.

3. Gratuity is payable to the petitioner on the basis of Rules contained in R.3, Part III of the Kerala Service Rules. R.3, Part III of the Kerala Service Rules. R.3 thereof makes it clear that the amount due from retired employees towards Government Companies can be deducted from the Gratuity if they consent for it and only the balance amount need be paid to the incumbent. When this provision contained in the rules give right for payment of gratuity after deducting the amount due to the Government companies, after having agreed or consented in that line, the petitioner cannot now turn round and say that Annexure I is void. It is based on that statutory provisions contained in R. 3 Part III of the K.S.R., amount due from the petitioner to the Government Company namely, the Kerala Financial Corporation, is sought to be recovered. Therefore, petitioner will be entitled to get only the balance, if any left, after deducting the amount made mention of by himself in Annexure A1.

4. There is no reason on the part of the respondents in delaying the balance amount if any, beyond 31.12.2000. The delay in paying the balance amount beyond 31.12.2000, on expiry of a reasonable time after submission of Annexure I, is not justified. Therefore, the respondents shall be liable to pay interest on the balance amount with effect from 1.12.2000 until the date of payment. Payment shall be effected, with interest payable at 6% at any rate, within a period of three months from the date of receipt of a copy of this judgment.

5. The Original Petition is disposed of as above.