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Judgment
K.L. Manjunath, J.—The appellant was respondent No. 4 in Writ Petition No. 9764/2007. The aforesaid Writ Petition was filed by the respondent-4 in this appeal.
According to the Writ Petitioner, it is a Cooperative Society registered under the provisions of the Karnataka Cooperative Societies Act (hereinafter referred to as the Society). The appellant herein has borrowed a sum of Rs. 5,000/- as loan on 25.11.1994 and he also stood. as surety for one K.R. Ramachandraiah who had also borrowed, a loan of Rs. 5,000/- on 21.10.1994 and that the appellant herein had executed an agreement in favour of the Society giving liberty for it to recover at the rate of Rs. 1,000/- per month out of his salary through his employer. The Society raised a dispute u/s 70 of the Karnataka Cooperative Societies Act against the appellant herein for recovery of the loan amount and an award has been passed. Thereafter an order of attachment is also obtained by the Society. Thereafter the society requested the employer of the appellant herein to deduct an amount Rs. 1,000/- per month from out of the salary of the appellant invoking the provision of Section 34 of the K.C.S. Act, 1959. Since the employer of the appellant did not deduct the amount as requested by the Society inspite of an order of attachment, the aforesaid Writ Petition was filed requesting the Court to issue a writ of mandamus directing the respondent-2 and 3 herein to deduct the amount from out of the salary of the appellant in terms of Section 34 of the KCS Act. The appellant herein did not file any objections to the Writ Petition. The Writ Petition was heard on merits. The learned Single Judge after considering the provisions of Section 34 of the K.C.S. Act, 1959 and relying upon Annexure-B which is an authorisation issued by the appellant to the society to recover out of his salary as required u/s 34(1) and (2) of the K.C.S. Act, allowed the Writ Petition. Being aggrieved by the same, the present appeal is filed.
According to Mr. Prakash Shetty, the learned Single Judge has committed an error in not considering the effect of obtaining an award u/s 70 of the K.C.S. Act raised by the society. According to him, when an award is passed, Section 34 cannot be pressed into service by the creditor of the appellant. He further submits that there was no privity of contract between the employer of the appellant and the society. Therefore, he requests the Court to set aside the order passed by the learned Single Judge.
After hearing the appellant''s Counsel, we are of the opinion that there are no substance in the arguments advanced by the learned Counsel for the appellant for the following reasons:
The appellant has not filed any objection denying the execution of Annexure-B by him in favour of the society. From Annexure-B, it is clear to us that the appellant herein has given a consent in favour of the Society to recover a sum of Rs. 1,000/- per month out of his salary in accordance with Section 34 (1) and (2) of the K.C.S. Act. Annexure-B is addressed to the employer- Bharathi Credit Cooperative Society Limited. From this, it is clear that the appellant voluntarily has given consent for the 4th respondent to recover a sum of Rs. 1,000/- per month out of his salary u/s 34 (1) and (2) of the K.C.S. Act authorising the Society to request his employer to deduct the amount and send it to the 4th respondent. When the appellant has not disputed this document, now it is not open for him to contend that the society cannot invoke Section 34 (1) and (2) of the K.C.S. Act. The only grievance of him is that when society has obtained an award u/s 70 of the K.C.S. Act, such award has to be executed in accordance with other provision of the K.C.S. Act and Section 34 (1) and (2) cannot be pressed into service. Section 34 of the K.C.S. Act reads as hereunder:
Deduction from salary to meet society''s claim in certain cases;
(1) Notwithstanding anything contained in any law for the time being in force, a member of a co-operative society may execute an agreement in favour of the society providing that his employer shall be competent to deduct from the salary or wages payable to him by the employer; such amount as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.
(2) On the execution of such an agreement the employer shall, if so required by the cooperative society by requisition in writing and so long as such debt or demand or any part of it remains unpaid, make the deduction in accordance with the agreement and pay the amount so deducted to the society within fourteen days from the date of the deduction.
From the reading of the above provision it is clear to us, there is no prohibition for a creditor to invoke Section 34 (1) and (2), even though an award is obtained by him against the Debtor. Filing of a dispute u/s 70, is to obtain an award by raising a dispute within the stipulated time and thereafter also it is open for a creditor to invoke Section 34 and request the employer of the Debtor to deduct the amount as agreed upon out of his salary and therefore Section 34 can be pressed into service by a creditor either before raising a dispute and also after raising a dispute. By mere reading of Section 34 (1) and (2) of the K.C.S. Act, that there is no prohibition for a creditor to invoke Section 34 (1) and (2) of the Act after obtaining an award. Therefore as long as the loan advanced by a creditor is not recovered and if such consent is given by a Debtor u/s 34, the same can be made use by the creditor at any time.
In the circumstances, there are no merits in this appeal and we do not see any reasons to interfere with the well considered order of the learned Single Judge.
Accordingly, the appeal is dismissed.