Judgment S.B.Sanyal, J. 1. The trustees of the Employees Provident Fund of the Hindustan Fertilizer Corporation Ltd., a Government Company, have moved this Court for quashing the letters/orders dated 27.10.1986, 11.11.1986 and 15.4.1988 (Annexures 3, 6 and 15 respectively) by which the respondents-Sub-Post Master of Barauni Urvaraknagar and the Superintendent of Post Offices, Begusarai, have asked the petitioner that they should convert National Savings Certificates (VI-Issue) to National Savings Certificates (II-Issue) since as per the Government direction the petitioner is not entitled to invest provident fund money constituting employers and employees contribution in the purchase of National Saving Certificate (VI-Issue) bearing a much higher interest. The petitioner has also prayed for a direction on the respondents to encash all the investments made between the period 1981-82 and 1985-86 on their maturity along with interest payable under National Saving Certificate (VI-Issue). It is further prayed that if there be any delay caused in encashing their certificates after their maturity on demand a further direction be given to pay further interest on the total sum payable to the petitioner. 2. The petitioner is a trust constituted under the Employees Provident Fund Act, 1952 to fulfil the obligations arising out of the said Act for the employees of Hindustan Fertilizer Corporation. The petitioner invested large sums of money, arising out of the deposit, in National Saving Certificate (VI-Issue) carrying twelve per cent interest per annum, with maturity period of six years from the date of investment. The petitioner on their investment obtained several lots of these certificates from the Post Office. 3. On 27.10.1986 respondent No. 4, Sub-Post Master, wrote to the petitioner-vide Annexure-3-to convert the National Saving Certificates (VI-Issue) to National Saving Certificates (II-Issue) carrying 6.5. per cent per annum on the basis of a recent guidelines of the Government dated 14.6.1986. They assailed the said letter, but the Postal authorities continued to assert their contention. On 15.11.1987 the petitioner demanded payment of four matured National Saving Certificates (VI-Issue) on their maturity along with interest payable; but respondent No. 4 refused to make payment and asked the petitioner to await orders from the Directorate. On 15.4.1988-vide Annexure-5 the respondent-Superintendent of Post Offices asked the petitioner to convert the National Saving Certificates (VI-Issue) to National Saving Certificates (II-Issue), failing which the National Saving Certificates (II-Issue)f would be discharged without payment of any interest. On 15.4.1988-vide Annexure-5 the respondent-Superintendent of Post Offices asked the petitioner to convert the National Saving Certificates (VI-Issue) to National Saving Certificates (II-Issue), failing which the National Saving Certificates (II-Issue)f would be discharged without payment of any interest. The petitioner had also requested the respondents to reinvest the proceeds of these National Saving Certificates (VI-Issue) in the time deposit scheme ; but on respondents not paying heed to it, the petitioner was constrained to file the instant writ petition. 4. Learned Counsel for the petitioner submits that the Board of Trustee under the Employees Provided Fund Act, 1952 (hereinafter referred to as the Act) is a body corporate and is a legal entity, same as in the case of Companies under the Companies Act. The petitioner in order to benefit the employees, decided to invest the deposits, time to time made to them, in the National Saving Certificates (VI-Issue) bearing a rate of interest almost twelve per cent which is payable on its maturity along with the principal. The same was issued without any murmur, but suddenly when some of the Certificates were on the point of maturity and/or matured, a different stance was taken by the respondents-postal authorities asking the petitioner to convert them to National Saving Certificates (II-Issue) which carry much lower interest. According to the learned Counsel, the action of the respondents is not only detrimental to the interest of the employees but also arbitrary and illegal. 5. Learned Counsel for the respondent-Union of India, on the other hand, submitted that the issue of the Certificates was irregular, because no Corporation is entitled to purchase those Certificates which were only meant for individuals and, therefore, the petitioner is not entitled to any benefit. He further contended that merely because the postal authorities had issued the National Saving Certificates (VI Issue), there is no estoppel against the statute and in support of his argument he relied upon a single Bench decision of this Court in C.W.J.C. Nos. 470 and 2273 of 1984, rendered on 15th April, 1985 Ram Mohan Roy Seminary and Ors. V/s. Union of India and Ors. 6. In order to make certain provisions of saving, an Act known as the Government Savings Certificates Act, 1959 (46 of 1959) was promulgated on 18th September, 1959, which came into force on 1st August, 1960. 470 and 2273 of 1984, rendered on 15th April, 1985 Ram Mohan Roy Seminary and Ors. V/s. Union of India and Ors. 6. In order to make certain provisions of saving, an Act known as the Government Savings Certificates Act, 1959 (46 of 1959) was promulgated on 18th September, 1959, which came into force on 1st August, 1960. The Government floated a series of certificates such as 10-Year National Savings Certificates (I-Issue), 7-Year National Savings Certificates (II-Issue), 6-Year National Savings Certificates (VI-Issue) and so on and so forth. Under Sec. 12 of the Act certain rules were also prescribed for the different Issues. One of such rules is known as National Savings Certificates (VI-Issue) Rules, 1981, which appears at page 257 of Part I of Post Office Small Savings Schemes Tenth Edition Appendix-7 to the said Compendium shows that National Saving Certificate (Il-Issue) bears 6.5 per cent compound interest free from Income Tax, the maturity period 7 years, whereas National Saving Certificate (Vl-Issue) bears 12% interest (compounded half yearly) with 6 years period of maturity and interest free of income tax upto Rs. 7,000 a year along with other specified investments. In the Appendix 7, however, there is a mention that II Issue can be purchased by individuals and Institutions, whereas VI issue can only be purchased by individuals only. 7. Now coming to the rules framed under Sec. 12 of the Government Savings Certificate Act, 1959, Rule 4 of VI-Issue Rule 1981 deals with the types of certificates, namely, Single Holder Type Certificate, Joint A type Certificate, Joint B type Certificates and the Certificates may be purchased for any amount. Rule 6 envisages procedure for purchase of Certificate. It states that any person desiring to purchase a certificate shall present at a post office an application in Form I, paragraph No. (c) of Form I reads as follows: Department of Posts General Form of Application for the purchase of National Savings Certificates (VI-Issue) (a) ** ** ** (b) ** ** ** (c)In the name of...(members, etc.) through...society or company etc. For a co-operative society, co-operative bank or a scheduled bank, on behalf of its members, clients, employees or contractors, whose monies are held as deposit or otherwise with such society or bank; for a Gazetted Government Officer, an Officer of a Government company or of a corporation or of a local authority, or an officer of a corporate body like a marketing committee established under a State Act and authorised by the State Government in this behalf, in his official capacity, or the Reserve Bank of India. Rule 7 provides for purchase of certificates on behalf of others. Since the case turns on the interpretition of Rule 7, the said rule is extracted below along with the clarification. 7. Purchase of Certificates on behalf of others,--A. person or body specified in column 1 of the Table below may purchase certificate (s) on behalf of persons specified against his or its name in the corresponding entry in column II of the said Table. Provided that the persons specified in the said Column II are eligible under these rules to purchase certificates. Person or body who can purchase on behalf of ______________________________________________________________________________ I II ______________________________________________________________________________ (i) ** (ii) ** (iii) a Gazetted Government officer, an Persons whose moneys officer of a Government company are held as deposit or or of a corporation or of local otherwise with such authority, or an officer of a officer or the Reserve Corporate body like a marketing Bank. committee established under a State Act and authorised by the State Government in this behalf, in his official capacity, or the Re- serve Bank of India. ______________________________________________________________________________Clarification:- -A question has been raised whether the Government Trust Fund Money can be invested in the National Savings Certificates (VI and VII-Issue). In this connection Minstry of Finance (DEA) has clarified that under the rules governing the National Savings Certificate (VI and VII-Issue), only individuals are permitted to invest in these certificates carrying interest @ 12 per cent per annum. It has been the policy of the Government to restrict the sale of high yielding National Savings Certificates to individuals only. The charitable and other trusts are entitled to certain concessions under the Income Tax Act, 1961 and it is not considered desirable to allow such institutions to invest in high yielding National Savings Certificates. It has been the policy of the Government to restrict the sale of high yielding National Savings Certificates to individuals only. The charitable and other trusts are entitled to certain concessions under the Income Tax Act, 1961 and it is not considered desirable to allow such institutions to invest in high yielding National Savings Certificates. Moreover, this may also affect the deposit mobilisation programmes and other fianancial institutions such as Nationalised Banks, etc. which Government would like to avoid. In view of the above the Government of India cannot allow the investment of Trust Fund Money in the National Savings Certificates (VI and VII Issue). Ministry of Finance (DEA) letter No. 2981/NS/81, dated 7.8.1981. 8 From a conjoint reading of Rule 7 and paragraph (c) of Form I for purchase of National Savings Certificate (VI-Issue), it is clear that the said National Savings Certificate (VI-Issue) can be purchased by an officer of a Government company or of a Corporation or of a local authority or an officer of a corporate body like a marketing committee established under a State Act on behalf of persons whose moneys are held as deposit or otherwise with such officer or the Reserve Bank. The Board of Trustee constituted under Sec. 5-A of the Employees Provident Funds Act have to be treated as a body corporate as required under Sec. 5-C of the said Act. It says that: Every Board of Trustees constituted under Sec. 5-A or Sec. 5-B shall be a body corporate under the nama specified in the notification constituting it, having perpetual succession and a common seal and shall by the said name sue and be sued. Body corporate has been defined under Sec. 2(7) of the Companies Act to include company. A Company, as we all know, has a separate legal entity or persona called Corporation which is a legal person just as much as an individual. That being the legal position, I see no reason why the petitioner could not have invested in National Savings Certificate (VI-Issue) as per the Act and Rules, referred to above. 9. The Form of the application for purchase of National Savings Certificate (VI-Issue), extracted above, envisages that the purchase could be made for a co-operative society or co-operative bank or a scheduled bank on behalf of its members...employees...whose monies are held as deposit or otherwise. 9. The Form of the application for purchase of National Savings Certificate (VI-Issue), extracted above, envisages that the purchase could be made for a co-operative society or co-operative bank or a scheduled bank on behalf of its members...employees...whose monies are held as deposit or otherwise. Further, paragraph No. (iii) of Rule 7 illustrates that the corporate body could be a marketing committee under a State Act and is authorised by Government to hold the money as deposit deposit on behalf of persons. The trustee of the provident fund is a corporate body which hold the monies of its members as deposit by way of provident fund. It seems certain clarification has been issued by the Ministry of Finance (DEA) stating that under the rules governing National Savings Certificates (VI and VII-Issue) only individuals are permitted to invest in these certificates carrying interest at the rate of 12 per cent and it has been the policy of the Government to restrict the sale of high yielding National Savings Certificate to individual only and it is not considered desirable to allow charitable and other trusts to invest in high yielding National Savings Certificate, It is because of this clarification by the Ministry of Finance in their letter No. 2981/NS/81, dated 7.8.1981 that the respondents were insisting that the petitioner should convert the Certificates into National Savings Certificate (II-Issue) bearing a low interest. 10. In my opinion, the rule and the Form appended to the rule are unambiguous and need no clarification and/or interpretation as sought to be done by the issuance of the letter dated 7.8.1981. The Circular of the Ministry of Finance cannot override the express rules made under the Government Savings Certificates Act, 1959. The clarification and Appendix 7 of the Compendium relied upon by the learned Counsel for the respondents run counter to the National Savings Certificate (VI-Issue) Rules which is statutory and cannot, therefore, override it. It is now well settled that Circulars can supplement where there are no rules, but they cannot supplant and/or amend the rules. In that view of the matter, I hold that the petitioner which is a Corporation within the meaning of Employees Provident Fund Act was wholly justified to invest the deposits with them held on behalf of the employees in National Savings Certificate (VI-Issue). In that view of the matter, I hold that the petitioner which is a Corporation within the meaning of Employees Provident Fund Act was wholly justified to invest the deposits with them held on behalf of the employees in National Savings Certificate (VI-Issue). Further, Public Provident Fund or for that matter Employee Provident Fund bears 12 per cent compound interest free of income tax. Therefore, to deprive the employees of the said rate of interest which is also borne by VI-Issue National Saving Certificate does not subserve the cause of justice. 11. The case of Ram Mohan Roy Seminary and others (supra) relied upon by the learned Counsel for the respondents relates to National Saving Certificate (V-Issue). The said Issue was covered by another Rule, namely, National Savings Certificate (V-Issue) Rules, 1973. The V-Issue Rules also contains a similar provision in Rule 6-A. There has been no consideration of Rule 6-A or the provision of. Form I, which was the form for purchase of the certificates. In that view of the matter, the decision rendered in Ram Mohan Roy Seminary and others (supra) cannot be deemed to be a good law and is hereby overruled for its failure to notice the most relevant provision in this regard. 12. It appears that the Postal Department has also realised their mistake, inasmuch as on 15.7.1989 a communication has been sent under the signature of the Sub-Post Master to the Executive Officer of the trustees that he can encash the National Savings Certificate (VI-Issue) issued during the financial year 1981-82 and 1982-83 at Barauni Nagar Post Office, but the matter regarding certificates to mature in. future, they are under consideration of the Ministry of Finance. 13. Be that as it may, in view of the legal position, the petitioner is entitled to the relief claimed. The respondents are directed to encash all the National Savings Certificate (VI-Issue) as and when they mature and pay the principal sum along with interest on its maturity. If any delay in payment on demand of the matured sum is made the petitioner shall be entitled to 12 per cent per annum interest on the entire sum receivable by the petitioner for the period of delay. U.P. Singh, J.I agree.