Chapter V- Privileges of a co-operative society, Section 44

Deduction from salary to meet co-operative society’s claim in certain cases.

(1) Any member has the right to sign an agreement which states that his employer has the power to deduct from his salary or wages, the amount payable to the society as debt or for any other purpose.

(2) The employer is bound to make the deduction under the Payment of Wages Act, 1936 (4 of 1936), unless he states in writing that he has already made such a deduction or if the society intimates with him that the member has paid the amount he owed.

(3) The employer is bound act upon the order of the society directing him to deduct that specific amount from the wages of his employee.

(4) If, after receiving such an order from the society, the employer fails to make the deduction towards the payment owed by his employee to the society, the society is
entitled to recover that amount from the employer. The employer shall rank in priority for the amount recovery for the society.

(5) Nothing contained in this section shall apply to establishment under a railway administration operating any railway as defined in clause (20) of article 366 of the Constitution.