P O MADHAVAN NAMBIAR Vs. SYNDICATE BANK

JUDGEMENT

(1.) In this revision by the 2nd judgment debtor, the main question that arises for consideration is as to whether the Provident Fund amount received by him on his retirement and deposited in a bank is liable to be attached in execution of a decree or not. Whether the debt is covered by the Agricultural and Rural Debt Relief Scheme, 1990 promulgated by the Government of India is the other question to be decided. Both these questions were found against the revision petitioner by the execution court.

(2.) The revision petitioner 2nd judgment debtor was a surety in respect of a debt and the plaintiff, a nationalised bank, obtained a decree against the principal debtor and the revision petitioner. He was employed as a clerk in the Education Department of the Kerala State and he retired on 31-1-1982. On 3-2-1988 he obtained the Provident Fund amount to his credit and deposited major portion of the amount in the Canara Bank, Payyannur in fixed deposit and a small amount in the S.B. account. In execution of the decree the decree holder-bank tried to attach the amount from out of this deposit in the Canara Bank towards the decree-debt. The revision petitioner raised the contention that the same being Provident Fund amount is exempted from attachment under S.60(1)(k) of the Code of Civil Procedure. S.60(1)(k) is to the following effect:

(3.) After hearing counsel for both sides, lam inclined to agree with the lower court that the amount is liable to be attached. H is no doubt true that S.60(1)(k) exempts Provident Fund amount from being attached in execution of a decree, but that exemption will be available only till it continues to be Provident Fund amount in the hands of the trustees and not after it is received by the employee who is entitled to the same. The identical question was considered by their Lordships of the Supreme Court in Union of India v. J.C. Fund & Finance ( AIR 1976 SC 1163 ) and considering S.60 C.P.C. and S.3 and 4 of the Provident Funds Act, in Para.11 their Lordships observed as follows: