Special appeal dismissed. The Court held that interest on a loan is recoverable from the borrower under the contract, regardless of the employer's failure to deduct installments. The employer's fault does not shift contractual liability to it.
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Court No. - 21
Case :- SPECIAL APPEAL DEFECTIVE No. - 549 of 2018
Appellant :- Sanjay Respondent :- State Of U.P. And 5 Ors Counsel for Appellant :- Rajesh Kumar Pandey Counsel for Respondent :- C.S.C.,Shiv Nath Singh
Hon'ble Govind Mathur,J. Hon'ble Chandra Dhari Singh,J.
This appeal is barred by limitation from 7 days. Ignoring the same we have considered the merits of the case.
Heard learned counsel for the appellant petitioner and Sri Vivek Kumar Sharma, Advocate holding brief of Sri Shiv Nath Singh, Advocate for respondent no. 6.
This appeal is before us to examine the correctness of the order dated 17.7.2018 passed by the learned single Bench in Writ-A No. 12774 of 2018.
In brief factual matrix of the case is that certain amount was advanced to the appellant petitioner, a class IV employee, by a cooperative society namely U.P. Rajya Chikitsa, Swasthya Evam Parivar Kalyan Vetan Bhogi Karmchari Sahkari Samiti Ltd. Agra. The equal monthly installment against amount advanced was to be deduced from salary of the appellant petitioner by the respondent employer. For the reasons not known the employer did not deduct the equal monthly installment for a period about two years. Subsequent thereto on noticing the default an order was passed by the authority competent to recover the due amount with enhanced equal monthly installment. While rescheduling the same a decision was also taken to charge interest from the appellant petitioner against the amount accumulated due to default. Being aggrieved by the same, the appellant petitioner preferred a petition for writ that came to be disposed of under the order impugned dated 17.7.2018. Learned single Bench while disposing of the petition for writ reduced the equal monthly installment from a sum of Rs. 10,000/- to Rs. 5,000/- but observed that the society shall be entitled to charge interest from the appellant petitioner for the entire amount, as per terms of the contract.
In appeal the argument advanced by learned counsel appearing on behalf of the appellant petitioner is that no interest could have been ordered to be recovered from the appellant petitioner in view of the fact that the default was committed by the
employer.
We do not find any merit in the argument advanced. Essentially, the contract executed to have loan was between the appellant petitioner and the cooperative society. So far as the employer is concerned that was only a facilitating agency to deduct the equal monthly installments. The liability to pay the equal monthly installment was essentially on the borrower and not of a facilitating agency. The lending agency, as such, as per terms of the contract, is having a right to have interest on the amount due from borrower. The liability fastened by learned single Bench, for the reasons given above, is in accordance with the terms of the contract and that does not suffers from any error that may warrant interference in Appellate Jurisdiction.
Appeal, hence, is dismissed. While parting with the case, we feel it appropriate to observe that if the appellant petitioner is having any grievance with the facilitating agency i.e. his employer with regard to loss caused to him due to default in payment of equal monthly installment, he may avail appropriate remedy for redressal of that.
Order Date :- 28.8.2018 Shekhar
[Chandra Dhari Singh, J.] [Govind Mathur, J.]
2 issues framed by the court
Whether interest can be charged on a loan exhausted to an employee when the employer's facility caused delay in monthly deductions.
Whether the liability to pay loan installments and interest falls on the borrower or the facilitating employer agency.
Sanjay
State Of U.P.
Govind Mathur
Chandra Dhari Singh
As recorded by the court registry
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