W.P.(C) 8812/2021 $~5 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 8812/2021 and CM APPL. 27452/2021 BHAJANPURA COOPERATIVE THRIFT AND CREDIT SOCIETY LTD. .....Petitioner Through: Mr. Rajeshwer Kumar Gupta, Mr. Pranav Gupta & Ms. Anisha Yadav, Advocates. (M) 9873576770 versus UNION OF INDIA & ORS. .....Respondents Through: Mr. Jivesh Kumar Tiwari (CGSC), with Ms. Nandini Aggarwal, and Ms. Samiksha, Advocates for R1 (M) 9990166622 Ms. Aditi Gupta and Ms. Lavanya Bhardwaj, Advocates for DTC (M) 9811046710 Mr. Dhruv Rohatgi, Panel Counsel (Civil), GNCTD with Mr. Dhruv Kumar and Mrs Chandrika Sachdev, Advocates for R3 and R4. (M) 9891558131 CORAM: JUSTICE PRATHIBA M. SINGH JUSTICE VIKAS MAHAJAN O R D E R % 20.07.2026 1. This hearing has been done through hybrid mode. 2. The present petition has been filed by the Petitioner- Bhajanpura Co- op. Urban Thrift & Credit Society Ltd. (hereinafter, ‘Society’) under Article 226 of the Constitution of India, inter alia, assailing the Circular bearing No. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/07/2026 at 12:54:27 W.P.(C) 8812/2021 Adm1/Loan Recovery/2021/310 dated 9th March, 2021 issued by the Delhi Transport Corporation (hereinafter, ‘DTC’). 3. Vide the impugned circular, the DTC has issued directions to the following effect: “Time and again queries are raised by Depot/Units regarding recovery of amount from DTC's employee/ex- employees who are unable to repay the loan taken from Societies/Banks, for which notices are being received in DTC. The matter has been examined by the Administration Department and legal opinion has also been sought on the matter according to which the following directions are hereby issued: 1. The Corporation cannot recover any money form the Gratuity/PF//Pension of a retired/deceased employee on the basis of recovery notice issued by the Registrar Cooperative Society/Court. As a matter of fact, no attachment order can be issued to attach Gratuity/Family Pension/PF/Pension of DTC employee. 2. The workman who has retired no recovery by any court can be made from his Gratuity and Provident Fund, and inform the Assistant Collector about the legal position of the Gratuity and Provident Fund As a matter of fact, Corporation should not act as a recovery agent for Cooperative Societies. In case of any attachment order received from the Court the matter should be immediately brought to the notice of the Court that, why attachment of Gratuity/PF/pension cannot be made. 3. Under section-60 (g) of Civil Procedure Code, 1906 Gratuity and Pension cannot be attached in execution of a decree. Under sub-section-60(i) the salary can be attached only to a limited extent. Under section-60 (k)(a) the Provident Fund is also not attachable. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/07/2026 at 12:54:27 W.P.(C) 8812/2021 4. Section-13 of the Payment of Gratuity Act, 1972 protects the gratuity from any attachment in execution of any decree or order of any Civil/revenue or Criminal Court. 5. Section-10 of the Employees Provident Fund and Miscellaneous Provisions Act, 1952, Provident Fund, Family Pension cannot be attached under any decree or order of any court. 6. In the payment of Bonus ACT, 1965, there is no provision in the Act which debars attachment/recovery from the same. Leave salary and unpaid dues will be covered from attachment to an extent indicated in section-60(1)(1a). 7. Rule-71 to 73 of CCS (Pension) Rules indicates what all can be recovered as Government due from the individual when he retires from service. Dues of Municipalities and Co-operatives Societies are not treated as Government dues. The Govt. of India's decision (1) under Rules-73 clearly holds that no dues of a Co-operative Society can be recovered from death-cum-retirement gratuity. Family pension is like any other pension and recoveries of dues whether Government or non government are not permissible from it without obtaining the consent of the Petitioner. Only in case official gives a declaration to his/her disbursing officer for recovery of outstanding dues of the Co-operative Societies from the Death Cum Retirement Gratuity payable to him/her under the Rules, the same may be deducted in cash from the DCRG of the official and remitted to the Society. 8. There is no bar for the Corporation to recover the outstanding loan amount of the Corporation form the Gratuity or unpaid dues of the retired employees. however, even otherwise if the retired employee or legal heirs of the deceased employees give in writing to recover the amount from Provident Fund. Family Pension/Pension etc. the same is recoverable. CCS This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/07/2026 at 12:54:27 W.P.(C) 8812/2021 (Pension) Rule 71 to 73 allows Government recoveries from the fund of the employee. All DMs/Unit Officers are requested to take necessary action accordingly. This issues with the approval of the Competent Authority.” 4. Mr. Rajeshwar Gupta, ld. Counsel for the Petitioner Society submits that whenever there is an award passed under the Delhi Co-operative Societies Act, 2003, the same is liable to be executed under Sections 105 and 111 of the Delhi Co-operative Societies Act, 2003. Ld. Counsel for the Petitioner Society further submits that the amount can be recovered as arrears of land revenue and this would mean that even pension, gratuity, PF etc. of a retired employee can also be attached. Mr. Gupta, ld. Counsel asserts that once the loan documents are signed either as a borrower or as a surety with a specific undertaking, the Society is entitled to recover in any manner as permissible in law. Ld. Counsel points out that the impugned circular is contrary to these provisions. 5. The DTC, however, objects to this and submits that the said amounts cannot be treated as salary or wages in terms of Section 52 of the Delhi Co- operative Societies Act, 2003 and therefore, the same cannot be attached. 6. Mr. Jivesh Kumar Tiwari, ld. CGSC appearing on behalf of the Ministry of Commerce and Industry has also placed his written submissions on record stating that even in the CCS (Pension) Rules, 1972, dues of a co- operative society cannot be recovered from death-cum-retirement gratuity pension, PF or other retirement benefits of a government servant. In the said written submissions, it is stated as under: “4. That the expression 'Government dues' includes This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/07/2026 at 12:54:27 W.P.(C) 8812/2021 dues pertaining to Government accommodation, a balance of house building or conveyance or any other advance, overpayment of pay and allowance or leave salary and arrears of income tax deductable at source under Income Tax Act, 1961. 5. That in CCS(Pension) Rules, there is no provision to recover Cooperative Societies dues from Death-cum- retirement Gratuity, pension and other retirement benefits of the Government servant. 6. That it is further submitted that Shri Raj Kumar, a retired SSA, has settled his dues as per the Society’s Receipt No. R0008007 dated 04.08.2021 and No. R0008260 dated 07/08/2021 (copy of receipts are already annexed as Annexure R 1-1 in the counter affidavit by R-1). 7. That further, the Petitioner-Society itself has issued a ‘No Dues Certificate’ dated 06.09.2021, which is signed by Shri L.K. Sharma, Vice President of the Bhajanpura Society (copy of receipts are already annexed as Annexure R 1-2 in the counter affidavit by R-1). 8. That further, he has also cleared his l/4th share of Rs.1,50,000/- (Rupees One Lakh Fifty Thousand Only) as surety in Case No. 2 against the outstanding amount of Shri Dilip Kumar. This payment was made via Central Bank of India’s Draft No. 285747 dated 24/09/2021, in favour of the Recovery Officer, Co- Operative Societies, Government of NCT of Delhi.” 7. The Court has heard the matter. In this case, the issue remains academic in as much as the dues in respect of the three persons has already been cleared, either by the borrower or by the surety. The challenge to the impugned circular would therefore no longer lie as the cause of action itself does not exist as on date. 8. Under these circumstances, since the dues of the Society have already This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/07/2026 at 12:54:27 W.P.(C) 8812/2021 been settled, the writ petition is disposed of leaving the question of law open. Pending applications, if any, are disposed of. 9. No further orders are called for in this matter. PRATHIBA M. SINGH, J. VIKAS MAHAJAN, J. JULY 20, 2026/jg/Ck This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 22/07/2026 at 12:54:27