Delhi HC questions deduction of over 80% of salary in lieu of recovery of loan taken from department

Delhi High Court: A Division Bench comprising of Hima Kohli and Pratibha Rani, JJ., listed a writ petition before it for next hearing on 14.03.2018. The petitioner was recruited in the SSB on the post of GD/Ct on 01.02.2006 and while on employ had undergone a surgery for a kidney transplant on 18.03.2015. The present petition was for the issuance of a writ of mandamus for release of a sum of Rs. 11,21,716 which was incurred by him on his surgery and to treat a previous loan of Rs. 6 lakhs extended to him from the SSB, Central Welfare Fund as an amount sanctioned for medical expenses incurred.

The petitioner claimed that from July, 2017 onwards, the respondents had started to deduct Rs. 30,000 from his salary every month in an arbitrary manner. The counsel for the respondents argued that the loan which was given to the petitioner had it’s first installment of Rs. 10,000 due in February, 2015. Further, the counsel argued that the petitioner deposited five installments totaling a sum of Rs. 40,000 between 06.07.2016 to 08.06.2017 before abruptly stopping the installments. Upon a notice being served, the petitioner requested via reply dated 03.08.2017, that monthly installments be deducted from his salary and he be given six months’ time to pay the entire amount and it was under this request that deductions were effected.

The Court asked the respondents to produce rules which permit the respondents to make such hefty deductions for recovery of loan. The Addl. DG, SSB was also directed to file an affidavit explaining the circumstances and rule position which empower the respondents to deduct over 80% of the petitioner’s salary on his defaulting in paying back the loan amount. The said affidavit was directed to be filed within four weeks with a copy to the learned counsel for petitioner. The Court noted that the respondents had not deducted any amount from the petitioner’s salary for the month of January, 2018, further directing the respondents to not deduct any amount till the next date of hearing. [Manish Kumar v. Union of India,  2018 SCC OnLine Del 7218, decided on 06.02.2018]

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