Right of lien on salaried individuals salary account

vijay (Querist) 08 January 2015 This query is : Resolved
when the client defaults in a personal loan can the registered money lender approach the employees HR department for settlement of such loans clerance what is the right procedure to get the HR department involved for recovery of such defaulted loans.
Your reply will be highly appreciated.

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B K Raghavendra Rao (Expert) 08 January 2015
Borrowing a loan from a money lender is an financial affair / transaction between those two parties. HR department of a company is in no way linked to that. Even if it is established in a court of law that the defaulter is legally liable to repay the borrowed amount to the money lender, the company is not duty bound to pay that some out of his salary. The only remedy is to get the salary attached (either before judgement or after judgement) to compel the employer to settle the loan amount to the money lender.

ajay sethi (Expert) 09 January 2015
agree with Mr rao

Rajendra K Goyal (Expert) 09 January 2015
Employer can not be approached directly, court orders for attachment of salary be obtained.

P. Venu (Expert) 10 January 2015
The guiding principle is very simple: the covenants of a contract could be enforced only through a decree from a competent court. The parties to a contract have only mutual rights; no powers over the other.

vijay (Querist) 10 January 2015
Thanks for all of ur replies, Thank u for taking out time and answering to my queries, appreciate all of your suggestions.

T. Kalaiselvan, Advocate (Expert) 13 January 2015
You can enforce the same through a court judgement in an EP proceeding on the basis of decree in your favor in the money recovery suit.

Dr J C Vashista (Expert) 15 January 2015
Very well advised by experts, I fully agree, no room left to add.

Guest (Expert) 15 January 2015
HR of any organisation cannot be deemed to be a guarantor or medium of recovery for any private transaction between the money lender and the employee of the organisation. The HR can act only on decree of attachment of employee's salary, if granted by the competent court of law.

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