I was appointed as an officer in a public sector bank. Bank harassed me and I went on leave. Thereafter they passed the orders of Voluntary Vacation of Service. My appeal was also rejected. They have recovered pf, gratuity for the setting of staff car loan, staff housing loan. The housing loan is still not fully clear. Now they have approached the commercial court for recovery of the remaining staff housing loan. The property is yet not registered.

Can they recover staff loans after termination?

From India, Lucknow
Dear Amit,

Loans and advances for certain specified purposes on long term basis are sanctioned by employers to employees subject to certain conditions such as their take-home salary, length of remaining service, collateral insurance coverage etc. Once the loan agreement is signed and sanctioned, an additional contractual relationship of debtor and creditor is created and continues till the loan amount and interest thereof are fully realised by the employer.

When the employment suddenly comes to an end and the pending loan amount stands unpaid, the employer, as creditor can take legal action for recovery.

From India, Salem
Dear Amit,

Your query will surprise the members of this forum. Notwithstanding the gentility that the previous senior member of this forum Mr Umakanthan has shown, I would like to ask a few questions or state the following:

You say that you had been working as an officer in the PSB. However, your query hardly justifies the stature of a bank officer. The presentation of your query is also poor. There is no sufficient background information. Since the transitory sentences are missing, one sentence does not have a connection with the next.

Your post ends with a question, "Can they recover staff loans after termination?" The question ill behoves the designation you had held. Bank officers are expected to know the rules of the recovery of the loan better than anyone else. Yet you have raised this question on a public forum!

Well, gentleman, your short post casts light on your personality. It is important for us to value ourselves. "Valuing oneself" means making our posture compatible with our stature. The depth of a person lies in the questions he/she asks.

It goes without saying that the public posts are bound to come under public scrutiny. Therefore, take this as development feedback.


Dinesh Divekar

From India, Bangalore

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