Cooperative bank and attachment of employees salary
Reetu Dwivedi
(Querist) 13 September 2011
This query is : Resolved
Dear Experts,
Please suggest are we legally supposed to follow the instructions given by the Recovery officer of a Cooperative Bank to attach the salary of our employee even if he is a guarantor for a loan. What are the consequences for a company if it does not follow his order?
Regards,
Surya
Shastri J.K.
(Expert) 13 September 2011
salary can not be attach.
ajay sethi
(Expert) 13 September 2011
Section 80 specifically provides for attachment of salary and debts of the defaulters. It is specifically provided in Section 80 of the Revenue Recovery Act that:
"The salaries or allowances and debts due to a defaulter may be attached and realised for the recovery from him of any arrear of public revenue due on land in the manner and to the extent provided for attachment and realisation of debts and salaries in the Code of Civil Procedure, 1908 (Central Act5 of 1908)".
Section 60(1)(i) provides very strict limitations for attachment of salary such as period for which continuous attachment can be claimed and the extent of attachment whereunder the first Rs. 1000 and two-third of the balance are impugned from attachment. Therefore the ceiling provided in Section 60(1)(i) for attachment of salary and period prescribed thereon are part of public policy and is to protect employees who happen to be debtors. The statutory minimum left to the employee is for survival after attachment failing which he will not be able to even continue in employment
ajay sethi
(Expert) 13 September 2011
please go through the judgement of kerala high court in case of Bhargavan Pillai vs Special Dy. Tahsildar on 23 June, 2003
Equivalent citations: I (2004) BC 324, 2003 (3) KLT 753
it provides that salary can be attached subject to provisions of section 60(1)of CPC read with section 80 of Revenue recovery Act
Reetu Dwivedi
(Querist) 13 September 2011
Ajay Sir,
What i want to know is suppose if a company refuses to comply with the orders of the recovery officer What will be the consequences for a company.I am aware that salary can be attached . Also I want to know that if recovery officer can attach the whole salary and prevailing sec 601(i) of CPC.
ajay sethi
(Expert) 13 September 2011
a company is bound to comply with orders of rceovery officer . if compnay refuses to do so it will be contempt of court.
not the whole salary sufficent should be left to enable the debtor to survive
