ravivakill (ADVOCATE) 08 June 2015
Mr. A got loan from Co-operative Bank & give two guarantors of staff where all the three persons are serving . "A" service is terminated by management now bank insist on Guarantors to Pay "A" instrument can bank freeze "A" Provident Fund ? Please guide me & How court order or having correspondance with P.F. commissioner? Please let me know the remedy for guarantors
Kumar Doab (FIN) 08 June 2015
If the PF is thru EPFO then It can't be atatched.
Usually banks have thier own PF Trust and PF rules.In such case it might be possible to adjust from Employer's contribution to PF.
You may find another thread as useful/relevant;
https://www.lawyersclubindia.com/forum/P-f-gratuity-90740.asp#.VXXAXlJ-hkg
SAINATH DEVALLA (LEGAL CONSULTANT) 09 June 2015
The Provident Fund cannot be attached for any reason whatsoever. In case the PF is held in a private trust, the employer cannot refuse to pay the PF, although there may be an outstanding loan taken from the company. PF cannot be adjusted towards any amounts, which an employee may be liable to pay the employer at the time of retirement/ termination of service on account of any advance or loan that has been taken.
ravivakill (ADVOCATE) 11 June 2015
Than What is the Remedy for guarantors
SAINATH DEVALLA (LEGAL CONSULTANT) 12 June 2015
What is the meaning of the word"guarantors"
ravivakill (ADVOCATE) 13 June 2015
I know meaning of guarantors but my question is what is remedy for them as loan taker person is solvant he is not insolvant
Kumar Doab (FIN) 13 June 2015
They should inform (in writing under proepr acknowledgment) the bank/BM of whereabouts and assets of borrower and ask the bank to recover from borrower.
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