MTC letter to debit EMIs from employees’ salary a/c stayed

CHENNAI: The Madras High Court passed an interim stay of an MTC (Metropolitan Transport Corporation) letter asking a cooperative society to directly debit from employees’ accounts the EMIs on their loans.

Justice Abdul Quddhose passed the interim injunction on hearing the petition filed by Askar Ali, secretary to the MTC Employees’ Provident Fund and Credit Cooperative Society.

As per the petitioner, the society and the MTC had entered into an agreement by which the MTC should debit the loan EMI directly from the salaries of the employees. “However, the MTC acted against the agreement by failing to do so. It also wrote a letter to us to debit the EMIs directly from the employees’ accounts. MTC asked us not to expect the corporation to obtain and pay the EMI from the employees from November,” the petitioner argued.

Recording the submissions, the judge passed an interim stay on the letter sent by the corporation on grounds that it is against the agreement. The matter has been adjourned for four weeks.