LCI Learning
Master the Art of Contract Drafting & Corporate Legal Work with Adv Navodit Mehra. Register Now!

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Promisory note

(Querist) 04 December 2014 This query is : Resolved 
sir, kindly advise in the following matter. one of our staff X died of sickness and our office is preparing his final payments like gratuity etc and pension. One person A filed a case in the court against the widow of X and children stating that X took a loan of 5 lakhs from him through promisory note and also requested court to stop the payments by mentioning our DDO name and address. Court sent a notice asking us to give the payment details of X pending in our office and we gave the details through our dept lawyer.Hearing yet to start. Court never asked us to stop the processing of payments.
Our staff says that we should not process the payments of X till we get an outcome and we should not pay any payments to the widow of X who is in very need.

kindly advise us whether we can proceed to pay or not.
Anirudh (Expert) 04 December 2014
When the Court has not asked your office to stop the payment, why should you stop it. Take the approval from competent higher officers and make payment to the widow/legal heirs.

For the private loan, you cannot stop the dues of the deceased, especially when no dues are pending towards the Government or any other department.
Advocate M.Bhadra (Expert) 04 December 2014
If there is no attachemt of final account before judgement so your office can proceed for final payment,

please read sec.60(g)CPC and Sec.11 Pension Act

Sec.60--- CPC Property liable to attachment and sale in execution of decree.- (1) The following property is liable to attachment and sale in execution of a decree, namely, lands, houses or other buildings, goods, money, bank notes cheques, bills of exchange, hundis, promissory notes, Government securities, bonds or other securities for money, debts, shares in a corporation and, save as hereinafter mentioned, all other saleable property, movable or immovable, belonging to the judgment debtor, or over which, or the profits of which, he has a disposing power which he may exercise for his own benefit, whether the same be held in the name of the judgment debtor or by another person in trust for him or on his behalf:


Provided that the following particulars shall not be liable to such attachment or sale, namely:—

(a) the necessary wearing apparel, cooking vessels, beds and bedding of the judgment debtor, his wife and children, and such personal ornaments as, in accordance with religious usage, cannot be parted with by any woman;

(b) tools of artisans, and, where the judgment debtor is an agriculturist, his implements of husbandry and such cattle and seed grain as may in the opinion of the court, be necessary to enable him to earn his livelihood as such, and such portion of agricultural produce or of any class of agricultural produce as may have been declared to be free from liability under the provisions of the next following section;


(c) houses and other buildings (with the materials and the sites thereof and the land immediately appurtenant thereto and necessary for their enjoyment) belonging to an agriculturist or a labourer or a domestic servant and occupied by him;

(d) books of account;

(e) a mere right to sue for damages;

(f) any right of personal service;

***(g) stipends and gratuities allowed to pensioners of the Government or of a local authority or of any other employer, or payable out of any service family pension fund notified in the Official Gazette by the Central Government or the State Government in this behalf, and political pension;

(h) the wages of labourers and domestic servants, whether payable in money or in kind;

(i) salary to the extent of the first one thousand rupees and two-thirds of the remainder in execution of any decree other than a decree for maintenance:

Section 11 in The Pensions' Act, 1871

*** Exemption of pension from attachment.- No pension granted or continued by Government on political considerations, or on account of past services or present infirmities or as a compassionate allowance, and no money due or to become due on account of any such pension or allowance, shall be liable to seizure, attachment or sequestration by process of any Court at the instance of a creditor, for any demand against the pensioner, or in satisfaction of a decree or order of any such Court. 5 This section applies 4 also to pensions granted or continued", after the separation of Burma from India, by the Government of Burma.]



Sailesh Kumar Shah (Expert) 04 December 2014
you should proceed as advised by learned expert shri anirudh.
ajay sethi (Expert) 04 December 2014
agree with Mr Anirudh . you should make payment of gratuity and other dues to deceased employee family
R.K Nanda (Expert) 04 December 2014
no more to add.
P. Venu (Expert) 05 December 2014
The court, even if it decrees the suit, can only attach payments, if any, due to X and not the pension and other benefits payable to the widow.
ravi (Querist) 05 December 2014
thank you all Sirs for your quick and kind advice. We are processing the payments today.
malipeddi jaggarao (Expert) 05 December 2014
You should help the deceased employee's family and settle all the payment before the creditor gets an attachment before judgement.
Rajendra K Goyal (Expert) 05 December 2014
Agree with the expert Anirudh.
Guest (Expert) 05 December 2014
Though the Humanitarian is Good Once you had been informed that a Case is Pending and Payment Dues Pending details had been Disclosed to Court you have to waite for the OutCome in Court.The widow is left with no option but to get clearance from said court.Your Legal Staff had advised you Correctly.
Anirudh (Expert) 05 December 2014
Dear Ravi,
The widow and the children of the deceased will bless all of you for the correct decision taken by your organization.
P. Venu (Expert) 05 December 2014
Yes, I agree. It would amount to harassment of the hapless widow and the fatherless children if the payment of death benefits are denied to them no valid reason. Law and procedures are aids in discharging responsibility by those holding responsible positions.
Guest (Expert) 05 December 2014
The Blessings Clubbed with Additional Gift of Contempt of Court would be your Choice.
P. Venu (Expert) 05 December 2014
The provisions of Contempt of Court Act are meant to uphold the majesty of Law!
malipeddi jaggarao (Expert) 05 December 2014
@NJSR - When there is no order where is the question of contempt of court? What is the basis of your stand?
Guest (Expert) 05 December 2014
The Court had informed you there is a Case Pending and had taken the details of Payment Lying with you .Your Legal Staff had Promptly advised you not to release payment .
malipeddi jaggarao (Expert) 05 December 2014
Before receiving clear direction from the Court, the matter has to be dealt with, without any assumptions and presumptions.
Guest (Expert) 05 December 2014
This is my Reply only to Author and the Persons having their Own Doubts could Post it as Query.When ever I address any one I would Never Miss Mr/Shri/Miss/Mrs and naturally I do expect same from them.Any how here I Prefer to Ignore Mr.M.Jaggarao.
Guest (Expert) 05 December 2014
The Court had specifically asked you what the amount Lying Obviously Hold On and Waite for Orders Or Seek Permission to Release Payment as rightly advised by Your Legal Staffs.
malipeddi jaggarao (Expert) 05 December 2014
I regret the error of addressing my colleague expert without any prefix like Mr. The error crept as I used the initials and I sincerely regret for it.
ravi (Querist) 05 December 2014
dear sirs, my contention is that office doesn't have concern on private or personal loans/matters handled by the staff. Office comes into the picture only when the staff informs or seeks permission for any outside transactions. In this case the staff did not inform about the loan nor our DDO endorsed his loan. Moreover, we are in belief that the court did not ask us to stop the process. As the saying goes " one is innocent till he proved of guilty". And, our office should not be dragged in to court for the staff's personal matters. So I'm agreeing with others to proceed for payment. Any comments please..
Guest (Expert) 05 December 2014
Seek the Permission Or Consent of your own Legal Officers/staff to Proceed.
P. Venu (Expert) 05 December 2014
Your proposed action is the right decision and is commendable. I had faced many such situations during my service with the Government as a DDO and controlling officer. Opinion given by your staff is incorrect in principle and in law.
Guest (Expert) 05 December 2014
If at all there were Nothing or No Problem the Word FACED doesn't arise.
P. Venu (Expert) 05 December 2014
The problem is those office staff who give careless suggestions and opinions without taking the pains to look into the real issues. Such suggestions are helpful only in evading responsibility, not in discharging them.
Guest (Expert) 06 December 2014
Evading or Discharging What Is Legal to be adopted.
T. Kalaiselvan, Advocate Online (Expert) 09 December 2014
In general, if it is known that there is a litigation pending and details of the amount due to the deceased has been sought for by a court of law, the management of the said company or organisation has to observe extra care and caution while disbursing the amount to the beneficiary(s), because it is a terminal benefit that is to be disbursed and cannot be recovered in the event of an order by the court subsequently. I agree with expert Mr. NJS Rajkumar's views about the lis pendence in this regard.
There is no sentimental feeling or sympathy while carrying out official duty as a person held responsible for the purpose. Decide.
ravi (Querist) 09 December 2014
@Mr. T.Kalaiselvan; Sir, I want to clear that case is filed by an individual against the widow of the deceased staff and the office is not a party. Court only asked about pending amount from office.

In this scenario, repayment of the loan (no body knows whether the deceased taken or not) is the responsibility of the family not the office.

Also, as informed earlier, office is not responsible for personal matters.

So even if office clears the payment to the widow, we are not doing anything wrong.
P. Venu (Expert) 09 December 2014
The payment death benefits are governed by Law or Rules which have the force of Law. It is the right of the legal heirs of the deceased to receive these benefits and there is strict liability on the authorities responsible for the sanction and disbursement of these benefits to adopt a "judicial approach" i.e, without arbitrariness, capriciousness, and whimsicalness being not perverse, or irrational and in accordance with the principles of natural justice. In other words, they have no authority to withhold the benefits unless there is a judicial order restraining the payment or attaching the benefits - an impossibility since none of these benefits are attachable. Hence it would be perverse and unreasonable action if the benefits due to deceased family is withheld or delayed just because the Court has sought some details!
malipeddi jaggarao (Expert) 10 December 2014
I stand on my advice and fully endorse the views of expert Shri P.Venu in this regard. Mere seeking information from Court does not warrant to defer payment of terminal benefits anticipating court orders against such payment.
Guest (Expert) 10 December 2014
Well Advised
Anirudh (Expert) 10 December 2014
WHAT A SOMERSAULT BY THIS FELLOW.
EARLIER HE WAS ADVISING AGAINST MAKING PAYMENT. NOW HE IS ADVISING OTHERWISE.

HE DOES NOT HAVE A STAND OF HIS OWN.

This fellow cannot even be a last person one can consult for any advice.

This fellow is good for nothing. Many a times he gives advices which are not supported by law.

TAKE THIS FELLOWS FALSITY IN HIS PROFILE. THIS FELLOW ATTACHES MORE IMPORTANCE TO THE PROFILE, WHILE HE IS FILLING UP TOTAL FALSE HOOD IN HIS PROFILE.

please visit the following link:

http://www.lawyersclubindia.com/lawyers_search/N-J-S-Rajkumar-alias-narasimha-254519.asp#.VIcRwmeHPFx

where he claims that he is practising from 2001, while as already indicated by me, he was enrolled only in the year 2012!!! CAN ANYBODY PRACTICE BEFORE ENROLMENT? IF ONE DOES SUCH A PRACTICE IS HE NOT FIT TO BE CALLED A "FRAUD"?

N.J.S.Rajkumar alias narasimha's Details
Listed Under
Business Law
Civil Law
Criminal Law
Practicing Since
2001
Specialization
SEBI and SEBI RELATED CASES
Court
Others
Address
54,PARASURAMA EASWARAN KOIL WEST MADA STREET,AYANAVARAM,CHENNAI 600023
Other Details
rajkumar_wins@rediffmail.com 9444036927

Therefore, before taking advice, the querist should be too careful

T. Kalaiselvan, Advocate Online (Expert) 10 December 2014
I stand in my opinion because the administrative staff being obliged by their responsibilities and duties are to abide by the certain standard to not to act in haste when it was brought to the knowledge about a litigation going on the issue. Let the author decide his course of action ignoring my opinion, there is nothing wrong, after all it is his subject.


You need to be the querist or approved LAWyersclub expert to take part in this query .


Click here to login now



Similar Resolved Queries :