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2004 Supreme(Guj) 418
Gujarat High Court
Judgename :D.N.Patel
DEVANG CO OPERATIVE HOUSING SOCEITY LTD. - Appellant
Versus
SUB POST MA0ster - Respondent
S.C.A.2877 of 2003
Decided On : 07/14/2004
Headnote:
Constitution of India, Article 226 - Co-operative Societies Act, 1961 - Petition under Article of the Constitution of India the petitioner society has challenged the action on the part of the respondent authorities in not returning the maturity amount of which the petitioner had purchased - According to the petitioner even on the date of maturity - Respondents have not returned the maturity amount which includes principal amount - Petitioner is a registered co-operative society registered under Co-operative Societies Act - Had purchased of the face value from the respondent On the date of maturity - Petitioner society approached the respondent - It is submitted by the learned counsel for the petitioner that the respondent authorities have pointed out the fact that the petitioner society was not entitled to purchase amount of interest was not paid to the petitioner - It is also submitted by the learned counsel for the petitioner that the respondents have already retained and utilised the money of the petitioner for a period of - Monies of the petitioner have been retained and used by the respondent authorities interest thereon ought to be paid to the petitioner by the respondents - At the time of issuance no such irregularity or illegality was ever pointed out by the respondent no. - Even during the period respondent authority has never intimated to the petitioner as to the irregularity in purchase of the - Respondents should be directed to return the principal amount along with interest thereon - Held, Petitioner society cannot hold or acquire and it is not a legal and it is not entitled to benefit of interest as per nor it is entitled to get the benefit of simple interest at the rate prevailing under Post Office Savings Account rules - Petitioner is not entitled to get the benefit under the main part of Rule nor under the proviso thereof - A similar question had arisen in special Civil Application wherein national Savings Certificates were purchased by the petitioner who was an association of persons in which case this Court vide judgment dated has held that the said petitioner was not entitled to interest of National Savings Certificates and Rule is analogous to Rule 13 of KVP Rules - Present petition is also of similar nature - Central Government has maintained consistency in both, NSC (VI Issue) Rules and KVP Rules, 1988 and in none of the cases, if the petitioner is not entitled to hold the certificates, then the said petitioner shall also not be entitled to earn the interest thereupon Petitioner has also placed reliance on the judgment dated delivered by this Court in Special Civil Application which pertains to the irregularity committed in opening of PPF account - It is submitted by him that though there was some irregularity in opening the PPF account the petitioner in that petition was allowed to earn interest - Said judgment was also confirmed in Letters Patent Appeal and therefore similarly situated is the case of the petitioner and therefore the benefit of interest may be extended - Argument holds any water KVP Rules are explicitly clear - There is hardly any scope of taking any deviation or departure from clear unambiguous and unequivocal provisions of KVP Rules - In my opinion what is prohibited by Rules cannot be permitted by this Court - Petitioner is not entitled to earn interest upon the principal amount for which are purchased - Nonetheless the petitioner is entitled to get back the principal amount - It is submitted by the learned counsel for the petitioner that vide order dated Court has directed the respondents to deposit a sum of this court and accordingly amount has been deposited in this Court - petition is dismissed.
( 1 ) BY way of this petition under Article 226 of the Constitution of India, the petitioner society has challenged the action on the part of the respondent authorities in not returning the maturity amount of Rs. 60,000/- of Kisan Vikas Patra which the petitioner had purchased on 6th March, 1997. According to the petitioner, even on the date of maturity, i. e. 6th september, 2002, the respondents have not returned the maturity amount of Rs. 60,000/- which includes principal amount of Rs. 30,000/- and interest amount of RS. 30,000/ -.
( 2 ) THE learned counsel appearing on behalf of the petitioner mainly contended that the petitioner is a registered co-operative society registered under gujarat Co-operative Societies Act, 1961. had purchased kisan Vikas Patra of the face value of Rs. 30,000/- from the respondent no. 1 on 6th March, 1997. On the date of maturity, the petitioner society approached the respondent no. 1. It is submitted by the learned counsel for the petitioner that the respondent authorities have pointed out the fact that the petitioner society was not entitled to purchase Kisan Vikas Patra under Kisan Vikas patra Rules, 1988. (hereinafter referred to as KVP rules ). Therefore, the amount of interest was not paid to the petitioner. It is also submitted by the learned counsel for the petitioner that the respondents have already retained and utilised the money of the petitioner for a period of 5. 1/2 years. These monies of the petitioner have been retained and used by the respondent authorities, therefore, the interest thereon ought to be paid to the petitioner by the respondents. At the time of issuance of Kisan Vikas Patra, no such irregularity or illegality was ever pointed out by the respondent no. 1. Even during the period of 5. 1/2 years, the respondent authority has never intimated to the petitioner as to the irregularity in purchase of the said Kisan Vikas Patra and therefore, the respondents should be directed to return the principal amount alongwith interest thereon.
( 3 ) THE learned Additional Central Government counsel appearing for the respondents submitted that only the persons or bodies mentioned in Rule 6 of KVP Rules can purchase Kisan Vikas Patras. It is also submitted by her that if Kisan Vikas Patra is purchased or acquired in contravention of the above Rules, then as per Rule 13 of the KVP Rules, the interest shall not be paid by the respondent authorities. Rules 6 and 13 of KVP Rules read as under:"6. Type of certificates and issue thereof:- (1) The certificate shall be of the following types, namely :- (a) Single Holder Type Certificates; (b) Joint "a" type Certificates; and (c) Joint "b" Type Certificates (2) (a) A Single Holder Type Certificate may be issued to : (i) An adult for himself or on behalf of a minor or to a minor (ii) a trust. (Rule amended vide MOF (DEA) Notification no. GSR 119 (E) dated 8. 3. 1995 effective from 1. 4. 1995) (b) A joint "a" Type Certificate may be issued jointly to two adults payable to both holders jointly or to the survivor. (c) A joint "b" Type Certificate may be issued jointly to two adults payable to either of the holders or to the survivors. "13. Excess or irregular holdings: (1) Any certificate purchased or acquired in excess or the limits prescribed in these rules or in the old rules or in contravention of these rules shall be encashed by the holder as soon as fact of the holding being in excess of the limit or in contravention of these rules is discovered and no interest shall be paid on either the excess holding or any holding in contravention of these rules. Provided that the holding shall not be considered in excess of the limit prescribed in these rules or in the old rules, if it is due to any of the following reasons, namely : (a) inheritance; (b) award by the Government for meritorious services; (c) survivorship in the case of joint holdings; (d) statutory devolution, and (e) nomination- provided further that where the Central gov
