(1) Notwithstanding anything contained in any law for the time being in force, a member of a society may execute an agreement in favour of such society providing that his employer shall be competent to deduct from the salary or 32 wages payable to him by the employer, such amount, as may be specified in the agreement and to pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.
(2) On the execution of such agreement, it shall not be necessary to have the debt or claim adjudged by any authority, and the employer shall, if so required by the society, by a requisition in writing and so long as the society does not intimate that the whole of such debt or demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society, as if it were a part of the salary, or wages payable on the day as required under the Payment of Wages Act, 1936 (No.4 of 1936).
(3) If after the receipt of a requisition, made under sub-section (2), the employer at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the members concerned or makes default in remitting the amount deducted to the society, the society shall be entitled to recover any such amount from the employer as an arrear of land revenue and the amount so due from the employer shall rank in priority in respect of the liability of the employer equal to that of the wages in arrears.
(4) The provisions of this section shall also apply to all such agreements of the nature referred to in sub-section (1) as were in force on the date of the commencement of this Act.
(5) Nothing contained in this section shall apply to persons employed in railways, mines and oil-fields.
(6) For the purposes of this section, Drawing and Disbursing Officer shall be deemed to be an employer in respect of a Government servant.