While
allowing a Writ Petition filed by Mrs. A. Muthuiruvakkal of Nagercoil in
Kanyakumari district the Madras High Court Madurai Bench of Justice K.
Ravichandrabaabu held that a Savings Bank Account maintained primarily for the
purpose of depositing monthly pension amount could not be attached by a bank
just because the account holder had defaulted repayment of a loan availed from
them.
The petitioner had
challenged an order passed by the State Bank of India on August 13 preventing
her from operating the pension account for recovering the outstanding loan
amount. The counsel for the petitioner Mr.P.Thirumahilmaran submitted that the
bank had deducted about Rs.14,681 from the petitioner’s pension account after
preventing her from operating the account. It was argued on behalf of the
petitioner that putting an S.B. account on hold by passing such an order was
impermissible in law as pension amount cannot be attached or recovered for the
purpose of recovery of any outstanding amount payable by the petitioner. In
support of such contention, the petitioner relied on a decision of the Supreme
Court reported in Radhey Shyam
Gupta Vs. Punjab National Bank
and another wherein the Apex Court had criticized the Rajasthan High Court for
ordering attachment of even Fixed Deposits without giving attention to the fact
that the loan defaulter in that case had actually converted his pension and
gratuity amount into fixed deposits.
The bank on its
part submitted that as there is outstanding dues to the tune of Rs.
2,18,09,971/- and that they were left with no other option except to pass the
impugned order.
After hearing the
rival submissions the court concurred with arguments of the counsel for the
petitioner and observed that “if there is any outstanding due payable by the
petitioner, it is for the respondent bank to work out its remedy in the manner
known to and permissible by law before the appropriate forum. Without doing so,
resorting to attach the pension amount by way of passing the impugned order is
impermissible.” The judge set aside the bank’s order and directed it to permit
the petitioner to operate the account without any hindrance.