JAGDISH PRASAD BATHAM Vs. UNION OF INDIA

JUDGEMENT

(1.) PETITIONER has filed this petition challenging the order, Annexure P-1 dated 14.5.2001 passed by the respondent No. 4 recovering a sum of Rs. 41,131/- from the provident fund account of the petitioner. It is the case of the petitioner that he was working in the respondent-Bank as a Class IV employee and after retirement on 31.3.2001, he was entitled to receive a sum of Rs. 2,57,970/- towards the provident fund dues. However, on the ground that the petitioner stood surety and guarantor to a loan advanced to a third party and the said third party is not repaying the loan amount, the aforesaid amount of Rs. 41,131/- was recovered in addition to Rs. 1,42,905/- recoverable towards personal loan obtained by the petitioner.

(2.) THE grievance of the petitioner is that a sum of Rs. 41,131/- could not be recovered from the provident fund dues of the petitioner. It is the case of the petitioner that without hearing him and without giving him any opportunity to show cause and in a arbitrary manner attaching the aforesaid amount from the Bank account of the petitioner is unsustainable. It is submitted by him that no amount from the provident fund dues of an employee can be recovered by such attachment. Learned counsel appearing for the Bank refuted the aforesaid and it is stated by him that the entire provident fund amount payable to the petitioner amounting to Rs. 2,57,970/- was credited in the account of the petitioner lying with the Bank and after crediting the said amount, the dues adjusted on various heads and while adjusting the same, an amount of Rs. 41,131/- was to be recovered from the petitioner as he stood surety and guarantor on account of non-payment of the amount by the loanee.

(3.) HOWEVER , it is reported that from the sum of Rs. 41,131/- an amount of Rs. 19,738/- has been recovered from the defaulter, adjustment has been made and paid to the petitioner. It is further reported that only a sum of Rs. 21,393/- is to be paid to the petitioner. Accordingly, the respondent-Bank is directed to credit a sum of Rs. 21,393/- in the account of the petitioner and are free to make any recovery of the amount due from the petitioner only after following the process known to law for the purpose of recovery of amount from a defaulter of guarantor. Petition stands allowed and disposed of with the aforesaid without any order as to cost. Certified copy as per rules.