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Sub No.14:- Writing Off Bad Debts of the society from the year 1989 to year 2012 which are
found irrecoverable.
Roc.No.EB01/58/TTDECS/2023

The TTD Employees Cooperative Credit Society was established in the year 1939.
Only regular TTD employees are eligible to become members of the society. One of the
main objectives of the society is to provide loans to its members as per Loaning Policy
provision in the byelaws of the society registered in accordance with the provisions of A.P
Cooperative Societies Act, 1964.

Since inception of our society, loans are being issued to the members from time to
time subject to availability of funds. While most of the members repay the loan with
interest in regular installments, some members do not repay the loan amount due to
financial problems, huge debts over and above income, and other reasons. The society
takes necessary steps for recovering the loan dues from such members and Surety and
recovers the loan amounts with chargeable interest and penal interest. Though the
society sends loan installment demand notices to respective institutions (work places) of
members, loan amounts could not be recovered in certain cases like absconded from
duty, death cases, removal / dismissal / resignation cases, etc., as salary of such
members could not be claimed.

The society is maintaining such list of bad debtors and taking possible steps to
recover the dues. However, in most of the cases, the members / legal heirs / nominees
approach the society at a later date and clear the entire dues in a lumpsum so as to obtain
No Dues Certificate from the society in order to get the retirement / death benefits settled.
Even after such efforts, some of the loans are still unrecovered for decades together.
Further to mention that surety system for loans did not exist for some years till 2012. As
such, the possibility of insisting the surety for repayment could not be materialized.

While so, following is the rule position pertaining to writing off bad debts
considered irrecoverable.

Bad Debt is a type of account receivable for the society that has become
uncollectible from the member due to the member’s inability to pay the amount of money
taken on credit from the society. The Debt which cannot be recovered, and also which
cannot be collected from a Debtor is the Bad Debt. Usually, any organization or society
which could not recover such bad debts writes them off by keeping sufficient reserves
exclusively for bad debts.

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