KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION VAZHUTHACAUD, THIRUVANANTHAPURAM.

APPEAL NO.779/2011

                             JUDGMENT DATED: 08.03.2012

PRESENT:

JUSTICE SHRI. K.R. UDAYABHANU              :  PRESIDENT

The Secretary,

Kerala Road Transport Corporation

Employees, Co-operative Soceity Ltd.             : APPELLANT

No.698, Thrissur.

(By Adv:Sri.P.Rajmohan)

          Vs.

M.K.Vijayan,

S/o Kochakkan, Mangalath House,                    : RESPONDENT

Avinissery P,O, Thrissur.

(By Adv:Sri.P.R.Sajeesh)

                                            JUDGMENT

JUSTICE SHRI.K.R. UDAYABHANU : PRESIDENT

Appellants are the opposite parties in CC.927/08 in the file of CDRF, Thrissur.  The demand notice issued by the opposite parties stands cancelled.

2.      It is the case of the complainant that he had availed loan of Rs.50,000/- from the opposite parties/Employees Co-operative Society on 3.7.2001 and that the same is to be repaid in 40 monthly instalments and that the repayment was completed before 6 months of his retirement.  He retired on 30.1.2005.  He has been issued with notice dated:24.9.2008 to pay Rs.37,000/- towards the loan amount of Rs.38,000/- was recovered from his gratuity and remitted to the loan account.  It is also mentioned that Rs.5000/- has been collected as share value at the time of availing the loan.   The same also has been credited to the loan account.  It is contended that the opposite parties are not entitled to collect any amount or interest after his retirement.

3.      The opposite parties have filed version that there is still a balance of Rs.37,064/- in the loan account.  The ATO did not recover the loan amount as there was no sufficient amount in the salary to recover the loan amount.

4.      The evidence adduced consisted of the testimony of PW1, Exts.P1 and P2 and Ets.R1 to R3.

5.      The Forum has found that there is delay in seeking recovery by the opposite parties and in not initiating steps against the sureties.  As noted by the Forum as per Ext.R1 application for loan the amount is to be repaid in 43 monthly instalments. The loan was availed in July 2001.  The notice has been issued on 24.9.2008.  The person retired admittedly on 30.1.2005.  The opposite party is the KSRTC Employees Co-operative Society, Thrissur unit.  We find that just because there is delay in seeking recovery the complainant cannot avoid payment of the loan dues.  It is not proper to place the blame on the officials of the KSRTC as the complainant was well aware of the existence of the loan. Further more the KSRTC has not been impleaded.  In the circumstances we find that the order of the Forum cannot be sustained.  The same is set aside and the appeal is allowed.

The office will forward the LCR along with a copy of this order to the Forum.

JUSTICE K.R. UDAYABHANU:  PRESIDENT

VL.