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Allahabad High Court · body

2002 DIGILAW 690 (ALL)

Municipal Board, Chandpur v. Union of India

2002-05-14

R.B.MISRA, SUDHIR NARAIN

body2002
JUDGMENT Sudhir Narain, J.—The Municipal Board, Chandpur, district Bijnor, the petitioner (hereinafter referred to as the ‘Board’) has sought a writ of mandamus commanding the Director General, Postal Services, respondent No. 2 and the Post Master, Post Office, Bijnor to encash all the National Savings Certificates in the custody of the respondent No. 3 with all the benefits accrued thereon after maturity. 2. Briefly, stated the facts are that on 26.7.1976, the Board through its President purchased fifty ‘7- Years’ National Savings Certificates of Vth Issue from the Post Office, Chandpur, district Bijnor. Each certificate was of the value of rupees one thousand and was to be matured after 7 years. The details of these certificates are as follows : Date of Purchase of Certi-ficates Date of maturity Number of National Saving Certifi-cates Amount of Certificates Interest on maturity Total amount after maturity (1) (2) (3) (4) (5) (6) 26.7.1976 26.7.1983 50094401 to 094447 & 094362 to 094364 50,000 49,000 90,000 3. The Board had purchased these certificates from the provident fund amount of its employees. The date of maturity of these certificates was 26.7.1983. The Board submitted all these certificates to the Post Master, Post Office, Chandpur along with a letter dated 26.7.1983 with the request to encash those certificates. The Post Master, respondent No. 3 on 8.8.1983 returned the aforesaid letter to the Board. The Board, thereafter, wrote a letter to the Superintendent of Post Office, Bijnor on 21.9.1983 requesting him for encashment of the National Savings Certificates. The Superintendent of Post Office, Bijnor informed the Board on 26.11.1983 that the purchase of the aforesaid 50 National Savings Certificates of the value of Rs. 50,000 by the Board was irregular on which only a simple interest as applicable in the Savings Bank Account rate could be given. The petitioner, thereafter, sent a letter to the Director General, Postal Services, respondent No. 2 requesting to get the certificates encashed but met with no result. 4. There are two questions, firstly, whether the President of the Board was entitled to purchase the National Savings Certificates (Vth issue) and secondly, even if the purchase of the certificates was irregular, whether the respondents can deny the Boad to pay the amount as stipulated under the Certificates. 5. 4. There are two questions, firstly, whether the President of the Board was entitled to purchase the National Savings Certificates (Vth issue) and secondly, even if the purchase of the certificates was irregular, whether the respondents can deny the Boad to pay the amount as stipulated under the Certificates. 5. The contention of the learned counsel for the respondents is that if the National Savings Certificates are purchased by a person who is not duly authorised, the purchaser shall not be entitled to receive the amount as specified in the National Savings Certificates. He has placed reliance upon Rule 6A of National Savings Certificates (Vth Issue) Rules, 1973 (in short the ‘Rules’) which reads as under : “6A. 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 the certificates. TABLE Person or body who can purchase On behalf of (I) (II) (i) an adult A minor. (ii) a co-operative society, a co-operative bank or a scheduled bank. Its members, clients, employees or contractors whose moneys are held as deposit or otherwise with such society or bank. (iii) 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 Sate Government in this behalf, in his Official Capacity, or the Reserve Bank of India. Persons whose moneys are held as deposit or otherwise with such officer or the Reserve Bank. 6. It is submitted that the National Savings Certificates can be purchased by such person who has been specified in column II of the said Table. Persons whose moneys are held as deposit or otherwise with such officer or the Reserve Bank. 6. It is submitted that the National Savings Certificates can be purchased by such person who has been specified in column II of the said Table. Clause (iii) of column I of the said Table provides that 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 can purchase the Certificates on behalf of the persons whose moneys are held as deposit or such officer otherwise with such officer or the Reserve Bank. 7. A local authority can purchase these certificates. The President of the Board is not debarred to purchase the National Savings Certificates on behalf of the Board. The view of the respondents that it can be purchased only by an Executive Officer of the Board is untenable. Clause 6A of the Rules nowhere provides that the Executive Officer of the Board is the only authority who can purchase the National Savings Certificates. 8. Even assuming that there was some irregularity in depositing the amount through a proper person, the respondents cannot turn to say that as the deposit originally was irregular, the amount as specified in the National Savings Certificates on maturity shall not be paid to the Board who has invested the amount in purchasing the certificates. They have to pay the amount on the terms and conditions as mentioned in the National Savings Certificates. 9. It may further be noted that if there was any irregularity in depositing the amount through a proper person, the respondents should have, immediately within a reasonable time, refunded the amount but they did not send any letter to the petitioner informing that as the deposit is not through the proper person, they are refunding the amount. It is after the date of maturity, the respondents took an objection. 10. It is after the date of maturity, the respondents took an objection. 10. In view of the above, the writ petition is allowed and the respondents are directed to make the payment of the amount of the aforesaid National Savings Certificates within a month from the date of production of a certified copy of this order after calculating the total amount as on the date of the maturity i.e., 26.7.1983 and further 8% interest on such amount from 26.7.1983 with yearly rest till the date of payment to the petitioner.